BALCHEM CORP 10-K

Item 8. Financial Statements and Supplementary Data Index to Financial Statements and Supplementary Data: Page Numbers Report of Independent Registered Public Accounting Firm (PCAOB ID: 49 ) 28 Consolidated Balance Sheets as of December 31, 20 2 5 and 20 2 4 30 Consolidated Statements of Earnings for the years ended December 31, 20 2 5 , 20 2 4 and 20 2 3 31 Consolidated Statements of Comprehensive Income for the years ended December 31, 20 2 5 , 20 2 4 and 20 2 3 32 Consolidated Statements of Stockholders’ Equity for the years ended December 31, 20 2 5 , 20 2 4 and 20 2 3 33 Consolidated Statements of Cash Flows for the years ended December 31, 20 2 5 , 20 2 4 and 20 2 3 34 Notes to Consolidated Financial Statements 35 Schedule II - Valuation and Qualifying Accounts for the years ended December 31, 20 2 5 , 20 2 4 and 20 2 3 65 27 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Balchem Corporation Opinions on the Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of Balchem Corporation and subsidiaries (the Company) as of December 31, 2025 and 2024, and the related consolidated statements of earnings, comprehensive income, stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and schedule (collectively, the financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of 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 accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Basis for Opinions The Company's management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's financial statements and an opinion on the Company's internal control over financial reporting 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 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 audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements 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. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control Over Financial Reporting A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 28 Table of Contents Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that were 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 a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates. Valuation of Reporting Units for Goodwill Impairment Testing As described in Notes 1 and 5 to the financial statements, the Company’s goodwill balance was $816 million as of December 31, 2025. The Company performed an annual goodwill impairment test as of October 1, 2025, using a quantitative evaluation for each of its reporting units. The Company determines the fair value of its reporting units using the income approach, based on a discounted cash flow valuation model. To test for goodwill impairment, the Company compares the fair value of each reporting unit to its carrying value. When determining the fair value of each reporting unit, management makes significant estimates and assumptions related to a number of factors such as revenue growth rates, operating margins, estimated terminal values and future economic and market conditions. Given the significant estimates and assumptions management makes to determine the fair value of the reporting units, we identified management’s assumptions related to the projected revenue growth rates and operating margin rates utilized in the valuation of the reporting units within the Company’s goodwill impairment tests as a critical audit matter. Auditing the reasonableness of management’s estimates and assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists. Our audit procedures related to revenue growth and operating margin rates utilized in the valuation of the Company’s reporting units included the following, among others: • We obtained an understanding of the relevant controls related to the valuation of the Company’s reporting units and tested such controls for design and operating effectiveness, including management review controls over significant assumptions. • We evaluated the reasonableness of management’s forecasts of revenue growth rates and projected operating margin rates by comparing to (1) the historical results and (2) internal communications to management and the Board of Directors, as well as considering whether these assumptions were consistent with evidence obtained in other areas of the audit. • We evaluated the reasonableness of management’s forecasts of revenue growth rates and projected gross margin rates by considering the consistency with external market and industry data. • With the assistance of our fair value specialists, we tested the mathematical accuracy of the fair value calculations. /s/ RSM US LLP We have served as the Company's auditor since 2004. New York, New York February 20, 2026 29 Table of Contents BALCHEM CORPORATION Consolidated Balance Sheets December 31, 2025 and 2024 (Dollars in thousands, except share and per share data) 2025 2024 Current assets: Cash and cash equivalents $ 74,570 $ 49,515 Accounts receivable, net of allowance for credit losses of $ 862 and $ 909 at December 31, 2025 and 2024, respectively 143,596 119,662 Inventories, net 131,449 130,802 Prepaid expenses 9,778 8,054 Other current assets 6,221 5,737 Total current assets 365,614 313,770 Property, plant and equipment, net 306,648 282,154 Goodwill 816,375 780,030 Customer relationships and lists 132,994 132,484 Other intangible assets with finite lives, net 30,295 32,566 Right of use assets - operating leases 14,672 15,320 Right of use assets - finance lease 1,520 1,730 Other non-current assets 18,134 17,317 Total assets $ 1,686,252 $ 1,575,371 Liabilities and Stockholders’ Equity Current liabilities: Trade accounts payable $ 60,425 $ 54,745 Accrued expenses 49,288 43,750 Accrued compensation and other benefits 27,896 22,886 Dividends payable 31,044 28,510 Income tax payable 3,912 4,466 Operating lease liabilities - current 3,614 3,134 Finance lease liabilities - current 205 194 Total current liabilities 176,384 157,685 Revolving loan 164,000 190,000 Deferred income taxes 54,143 43,722 Operating lease liabilities - non-current 11,324 12,967 Finance lease liabilities - non-current 1,544 1,749 Other long-term obligations 21,444 19,335 Total liabilities 428,839 425,458 Commitments and contingencies (Note 15) Stockholders’ equity: Preferred stock, $ 25 par value. Authorized 2,000,000 shares; no ne issued and outstanding — — Common stock, $ .0667 par value. Authorized 120,000,000 shares; 32,058,121 shares issued and outstanding at December 31, 2025 and 32,527,244 shares issued and outstanding at December 31, 2024, respectively 2,139 2,170 Additional paid-in capital 92,331 173,997 Retained earnings 1,121,396 997,493 Accumulated other comprehensive income (loss) 41,547 ( 23,747 ) Total stockholders’ equity 1,257,413 1,149,913 Total liabilities and stockholders’ equity $ 1,686,252 $ 1,575,371 See accompanying notes to consolidated financial statements. 30 Table of Contents BALCHEM CORPORATION Consolidated Statements of Earnings Years Ended December 31, 2025, 2024 and 2023 (In thousands, except per share data) 2025 2024 2023 Net sales $ 1,037,161 $ 953,684 $ 922,439 Cost of sales 666,528 617,478 620,383 Gross margin 370,633 336,206 302,056 Operating expenses: Selling expenses 75,374 68,916 74,397 Research and development expenses 18,510 16,793 15,049 General and administrative expenses 67,423 67,588 53,417 161,307 153,297 142,863 Earnings from operations 209,326 182,909 159,193 Other expenses: Interest expense, net 10,219 16,528 22,613 Other expense (income), net 77 ( 72 ) ( 681 ) 10,296 16,456 21,932 Earnings before income tax expense 199,030 166,453 137,261 Income tax expense 44,185 37,978 28,718 Net earnings $ 154,845 $ 128,475 $ 108,543 Basic net earnings per common share $ 4.80 $ 3.97 $ 3.38 Diluted net earnings per common share $ 4.75 $ 3.93 $ 3.35 See accompanying notes to consolidated financial statements. 31 Table of Contents BALCHEM CORPORATION Consolidated Statements of Comprehensive Income Years Ended December 31, 2025, 2024 and 2023 (In thousands) 2025 2024 2023 Net earnings $ 154,845 $ 128,475 $ 108,543 Other comprehensive income (loss), net of tax: Net foreign currency translation adjustment 65,535 ( 32,590 ) 16,809 Unrealized loss on cash flow hedge, net of taxes of $ 341 at December 31, 2023 — — ( 1,065 ) Net change in postretirement benefit plan, net of taxes of $ 83 , $ 44 , and $ 39 at December 31, 2025, 2024 and 2023, respectively ( 241 ) 152 101 Other comprehensive income (loss), net of tax 65,294 ( 32,438 ) 15,845 Comprehensive income $ 220,139 $ 96,037 $ 124,388 See accompanying notes to consolidated financial statements. 32 Table of Contents BALCHEM CORPORATION Consolidated Statements of Stockholders’ Equity Years Ended December 31, 2025, 2024 and 2023 (Dollars in thousands, except share and per share data) Total Stockholders' Equity Retained Earnings Accumulated Other Comprehensive (Loss) Income Common Stock Additional Paid-in Capital Shares Amount Balance - December 31, 2022 $ 938,284 $ 814,487 $ ( 7,154 ) 32,152,787 $ 2,145 $ 128,806 Net earnings 108,543 108,543 — — — — Other comprehensive income 15,845 — 15,845 — — — Dividends ($ .79 per share) ( 25,542 ) ( 25,542 ) — — — — Repurchases of common stock, including excise tax ( 4,514 ) — — ( 32,558 ) ( 2 ) ( 4,512 ) Shares and options issued under stock plans 21,368 — — 134,499 9 21,359 Balance - December 31, 2023 1,053,984 897,488 8,691 32,254,728 2,152 145,653 Net earnings 128,475 128,475 — — — — Other comprehensive loss ( 32,438 ) — ( 32,438 ) — — — Dividends ($ .87 per share) ( 28,470 ) ( 28,470 ) — — — — Repurchases of common stock ( 5,682 ) — — ( 38,922 ) ( 3 ) ( 5,679 ) Shares and options issued under stock plans 34,044 — — 311,438 21 34,023 Balance - December 31, 2024 1,149,913 997,493 ( 23,747 ) 32,527,244 2,170 173,997 Net earnings 154,845 154,845 — — — — Other comprehensive income 65,294 — 65,294 — — — Dividends ($ .96 per share) ( 30,942 ) ( 30,942 ) — — — — Repurchases of common stock, including excise tax ( 109,182 ) — — ( 684,927 ) ( 46 ) ( 109,136 ) Shares and options issued under stock plans 27,485 — — 215,804 15 27,470 Balance - December 31, 2025 $ 1,257,413 $ 1,121,396 $ 41,547 32,058,121 $ 2,139 $ 92,331 See accompanying notes to consolidated financial statements. 33 Table of Contents BALCHEM CORPORATION Consolidated Statements of Cash Flows Years Ended December 31, 2025, 2024 and 2023 (In thousands) 2025 2024 2023 Cash flows from operating activities: Net earnings $ 154,845 $ 128,475 $ 108,543 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 45,690 47,973 54,935 Stock compensation expense 18,057 16,675 16,052 Deferred income taxes 6,262 ( 6,779 ) ( 10,814 ) (Recovery of) provision for credit losses ( 97 ) 299 37 Unrealized gain on foreign currency transactions and deferred compensation ( 680 ) ( 100 ) ( 733 ) Asset impairment charge and (gain) loss on disposal of assets ( 58 ) 1,664 7,031 Change in fair value of contingent consideration liability — ( 91 ) ( 11,300 ) Changes in assets and liabilities, net of acquired balances Accounts receivable ( 20,853 ) 5,582 6,969 Inventories 3,635 ( 22,791 ) 10,530 Prepaid expenses and other current assets ( 1,332 ) 225 ( 3,540 ) Accounts payable and accrued expenses 11,292 9,065 3,552 Income taxes ( 1,070 ) ( 583 ) 2,194 Other 865 2,385 305 Net cash provided by operating activities 216,556 181,999 183,761 Cash flows from investing activities: Capital expenditures and intangible assets acquired ( 43,489 ) ( 35,661 ) ( 37,892 ) Cash paid for acquisitions, net of cash acquired ( 323 ) ( 24,164 ) ( 1,252 ) Proceeds from sale of assets 274 359 1,881 Proceeds from settlement of net investment hedge — — 2,740 Investment in affiliates ( 353 ) ( 270 ) ( 290 ) Net cash used in investing activities ( 43,891 ) ( 59,736 ) ( 34,813 ) Cash flows from financing activities: Proceeds from revolving loan 88,000 26,000 18,000 Principal payments on revolving debt ( 114,000 ) ( 145,569 ) ( 149,000 ) Principal payments on finance lease ( 194 ) ( 216 ) ( 222 ) Proceeds from stock options exercised 9,307 17,228 5,242 Dividends paid ( 28,287 ) ( 25,576 ) ( 22,872 ) Repurchases of common stock ( 107,636 ) ( 5,682 ) ( 4,469 ) Net cash used in financing activities ( 152,810 ) ( 133,815 ) ( 153,321 ) Effect of exchange rate changes on cash 5,200 ( 3,380 ) 2,260 Increase (decrease) in cash and cash equivalents 25,055 ( 14,932 ) ( 2,113 ) Cash and cash equivalents beginning of period 49,515 64,447 66,560 Cash and cash equivalents end of period $ 74,570 $ 49,515 $ 64,447 Supplemental Cash Flow Information - see Note 12 See accompanying notes to consolidated financial statements. 34 Table of Contents BALCHEM CORPORATION Notes to Consolidated Financial Statements (All amounts in thousands, except share and per share data) NOTE 1 - BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Description Balchem Corporation (“Balchem” or the “Company”), including, unless the context otherwise requires, its wholly-owned subsidiaries, incorporated in the State of Maryland in 1967, is engaged in the development, manufacture and marketing of specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, agricultural, and performance gases industries. Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform with the current period's presentation. Revenue Recognition Revenue for each of the Company’s business segments is recognized when control of the promised goods is transferred to our customers, in an amount that reflects the consideration we expect to realize in exchange for those goods. The Company reports amounts billed to customers related to shipping and handling as revenue and includes costs incurred for shipping and handling in cost of sales. Amounts received for unshipped merchandise are not recognized as revenue but rather they are recorded as customer deposits and are included in current liabilities. In instances of shipments made on consignment, revenue is recognized when control is transferred to the customer. In accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , revenue-generating contracts are assessed to identify distinct performance obligations, allocating transaction prices to those performance obligations, and criteria for satisfaction of a performance obligation. The standard allows for recognition of revenue only when the Company has satisfied a performance obligation through transferring control of the promised good or service to a customer. Control, in this instance, may mean the ability to prevent other entities from directing the use of, and receiving benefit from, a good or service. The standard indicates that an entity must determine at contract inception whether it will transfer control of a promised good or service over time or satisfy the performance obligation at a point in time through analysis of the following criteria: (i) the entity has a present right to payment, (ii) the customer has legal title, (iii) the customer has physical possession, (iv) the customer has the significant risks and rewards of ownership and (v) the customer has accepted the asset. The Company assesses collectability based primarily on the customer’s payment history and on the creditworthiness of the customer. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash equivalents. The Company has funds in its cash accounts that are with third party financial institutions, primarily in certificates of deposit and money market funds. The Company's balances of cash and cash equivalents in the U.S. and other countries exceed the insurance limits of the Federal Deposit Insurance Corporation (“FDIC”) and other relevant insurance limits in other countries. Accounts Receivable Credit terms are granted in the normal course of business to the Company’s customers and on-going credit evaluations are performed on the Company’s customers. In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which requires that credit losses be reported based on expected losses instead of the incurred loss model. Based on this ASU, customers' credit limits are adjusted based upon their reasonably expected credit worthiness, which is determined through review of their payment history, their current credit information, and any foreseeable future events. Collections and payments from customers are continuously monitored and allowances for credit losses for estimated losses resulting from the inability of the Company’s customers to make required payments are maintained. Estimated losses are based on historical experience, any specific customer collection issues identified, and any reasonably expected future adverse events. If the financial condition of our customers were to deteriorate resulting in an impairment of their ability to make payments, additional allowances and related bad debt expense may be required. Accounts receivable, net of allowance for credit losses as of December 31, 2023 amounted to $ 125,284 . 35 Table of Contents Inventories Inventories are valued at the lower of cost (first in, first out) or net realizable value and have been reduced by an allowance for excess or obsolete inventories. Cost elements include material, labor and manufacturing overhead. Property, Plant and Equipment and Depreciation Property, plant and equipment are stated at cost. Depreciation of plant and equipment is calculated using the straight-line method over the estimated useful lives of the assets as follows: Buildings 15 - 25 years Equipment 2 - 28 years Expenditures for repairs and maintenance are charged to expense. Alterations and major overhauls that extend the lives or increase the capacity of plant assets are capitalized. When assets are retired or otherwise disposed of, the cost of the assets and the related accumulated depreciation are removed from the accounts and any resultant gain or loss is included in earnings from operations. Business Concentrations Financial instruments that subject the Company to credit risk consist primarily of accounts receivable and money market investments. Investments are managed within established guidelines to mitigate risks. Accounts receivable subject the Company to credit risk partially due to the concentration of amounts due from customers. The Company extends credit to its customers based upon an evaluation of the customers’ financial condition and credit histories. In 2025, 2024 and 2023, no customer accounted for more than 10% of total net sales. As of December 31, 2025, one customer accounted for 14 % of the Company's accounts receivable. The Company does not believe this concentration presents a significant credit risk based on the customer’s payment history and financial condition. Other than the one customer mentioned above, no other customer accounted for more than 10% of accounts receivable as of December 31, 2025 and 2024. Post-employment Benefits We provide life insurance, health care benefits, and defined benefit pension plan payments for certain eligible retirees and health care benefits for certain retirees’ eligible survivors. The costs and obligations related to these benefits reflect our assumptions as to health care cost trends and key economic conditions including discount rates, expected rate of return on plan assets, and expected salary increases. The cost of providing plan benefits also depends on demographic assumptions including retirements, mortality, turnover, and plan participation. If actual experience differs from these assumptions, the cost of providing these benefits could increase or decrease. In accordance with ASC 715, “Compensation-Retirement Benefits,” we are required to recognize the overfunded or underfunded status of a defined benefit post retirement plan (other than a multi-employer plan) as an asset or liability in our statement of financial position, and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. Goodwill and Acquired Intangible Assets Goodwill represents the excess of purchase price over the fair value of net assets acquired in accordance with ASC 805, "Business Combinations". Goodwill and intangible assets acquired in a business combination that have indefinite useful lives are not amortized but are instead assessed for impairment annually and more frequently if events and circumstances indicate that the assets might be impaired, in accordance with the provisions of ASC 350, "Intangibles-Goodwill and Other". The Company performed its annual test as of October 1. ASC 350 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment if events and circumstances indicate that the assets might be impaired. In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which addresses changes to the testing for goodwill impairment by eliminating Step 2 of the process. In accordance with this update, a goodwill impairment test will be performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. 36 Table of Contents As of October 1, 2025 and 2024, the Company opted to bypass the qualitative assessment and proceeded directly to performing the quantitative goodwill impairment test. The Company assessed the fair values of its reporting units by utilizing the income approach, based on a discounted cash flow valuation model as the basis for its conclusions. The Company's estimates of future cash flows included significant management assumptions such as revenue growth rates, operating margins, estimated terminal values, and future economic and market conditions. The Company's assessment concluded that the fair values of the reporting units exceeded their carrying amounts, including goodwill. Accordingly, the goodwill of the reporting units was not considered impaired as of October 1, 2025 and 2024. The Company may resume performing the qualitative assessment in subsequent periods. The following intangible assets with finite lives are stated at cost and are amortized either on an accelerated basis or on a straight-line basis over the following estimated useful lives: Amortization Period (in years) Customer relationships and lists 10 - 20 Trademarks and trade names 2 - 17 Developed technology 5 - 12 Regulatory registration costs 5 - 10 Patents and trade secrets 15 - 17 Other 2 - 18 Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset, which is generally based on discounted cash flows. The useful life of an intangible asset is based on our assumptions regarding expected use of the asset; the relationship of the intangible asset to another asset or group of assets; any legal, regulatory or contractual provisions that may limit the useful life of the asset or that enable renewal or extension of the asset’s legal or contractual life without substantial cost; the effects of obsolescence, demand, competition and other economic factors; and the level of maintenance expenditures required to obtain the expected future cash flows from the asset and their related impact on the asset’s useful life. If events or circumstances indicate that the life of an intangible asset has changed, it could result in higher future amortization charges or recognition of an impairment loss. For the year ended December 31, 2025, there were no triggering events which required intangible asset impairment reviews. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the fiscal year in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. In evaluating our ability to recover our deferred tax assets, in full or in part, we consider all available positive and negative evidence, including our past operating results, our forecast of future market growth, forecasted earnings, future taxable income, and prudent and feasible tax planning strategies. The assumptions utilized in determining future taxable income require judgment and are consistent with the plans and estimates we are using to manage the underlying businesses. We recognize uncertain income tax positions taken on income tax returns at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a fifty percent likelihood of being sustained. Our policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of our income tax provision. Use of Estimates Management is required to make certain estimates and assumptions during the preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and net sales and expenses during the reporting period. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Actual results could differ from those estimates. 37 Table of Contents Fair Value of Financial Instruments The Company has a number of financial instruments, none of which are held for trading purposes. The Company estimates that the fair value of all financial instruments at December 31, 2025 and 2024 does not differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying consolidated balance sheets. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessarily required in interpreting market data to develop the estimates of fair value, and, accordingly, the estimates are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The following fair value hierarchy is used to classify assets and liabilities: • Level 1 - Inputs are quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. • Level 2 - Inputs include observable inputs other than quoted prices in active markets. • Level 3 - Inputs are unobservable inputs for which there is little or no market data available. Cost of Sales Cost of sales are primarily comprised of raw materials consumed in the manufacture of product, as well as manufacturing labor, maintenance labor, depreciation expense, and overhead expense necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight costs, outbound freight costs for shipping products to customers, warehousing costs, quality control and obsolescence expense. Selling, General and Administrative Expenses Selling expenses consist primarily of compensation and benefit costs, amortization of customer relationships and lists, trade promotions, advertising, commissions and other marketing costs. General and administrative expenses consist primarily of payroll and benefit costs, occupancy and operating costs of corporate offices, depreciation and amortization expense on non-manufacturing assets, information systems costs and other miscellaneous administrative costs. Research and Development Research and development costs are associated directly with the Company's efforts to develop, design, and enhance its products, services, technologies, or processes. Such costs are expensed as incurred. Net Earnings Per Common Share Basic net earnings per common share is calculated by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted net earnings per common share is calculated in a manner consistent with basic net earnings per common share except that the weighted average number of common shares outstanding also includes the dilutive effect of stock options outstanding, unvested restricted stock, and unvested performance shares (using the treasury stock method). Stock-based Compensation The Company has stock-based employee compensation plans, which are described more fully in Note 2, Stockholders' Equity . The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation-Stock Compensation,” which requires all share-based payments, including grants of stock options, to be recognized in the statement of earnings as an operating expense, based on their fair values. The Company estimates the fair value of each option award on the date of grant using either the Black-Scholes model or the Binomial model, whichever is deemed to be most appropriate. Estimates of and assumptions about forfeiture rates, terms, volatility, interest rates and dividend yields are used to calculate stock-based compensation. A significant change to these estimates could materially affect the Company’s operating results. Impairment of Long-lived Assets Long-lived assets, such as property, plant, and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated 38 Table of Contents future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset, which is generally based on discounted cash flows. Derivative Instruments and Hedging Activities The Company is exposed to market fluctuations in interest rates as well as variability in foreign exchange rates. In May 2019, the Company entered into an interest rate swap with JP Morgan Chase, N.A. (the "Swap Counterparty") and a cross-currency swap with JP Morgan Chase, N.A. (the "Bank Counterparty"). The Company's primary objective for holding derivative financial instruments was to manage interest rate risk and foreign currency risk. The Company does not enter into derivative financial instruments for trading or speculative purposes. The derivative instruments were with the above single counterparty and were subject to a contractual agreement that provided for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract. As such, the derivative instruments were categorized as a master netting arrangement and presented as a net derivative asset or derivative liability on the consolidated balance sheet. The Company settled its derivative instruments on their maturity date of June 27, 2023 and had no other derivatives outstanding as of December 31, 2025 and 2024. On a quarterly basis through their maturity, we assessed the effectiveness of the hedging relationships for the interest rate swap and cross-currency swap by reviewing the critical terms indicated in the applicable agreement. The hedging relationships were determined to be highly effective. As such, the net change in fair values of the interest rate swap, that qualified as a cash flow hedge, was recorded in accumulated other comprehensive income/(loss) and subsequently reclassified into interest expense as interest payments were made on our debt. For the cross-currency swap, the amounts that have not yet been recognized in earnings remain in the cumulative translation adjustment section of accumulated other comprehensive income until the hedged net investment is sold or liquidated in accordance with paragraphs 815-35-35-5A, "Derivatives and Hedging - Net Investment Hedges", and 830-30-40-1 through 40-1A, "Foreign Currency Matters - Derecognition". Refer to Note 19, Derivative Instruments and Hedging Activities , for detailed information about our derivative financial instruments. Recently Issued Accounting Pronouncements In December 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270) - Narrow-Scope Improvements". The ASU clarifies interim disclosure requirements and the applicability of Topic 270 and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The ASU is effective for fiscal years beginning after December 15, 2027, including interim periods within those those fiscal years. Upon adoption, the guidance can be applied prospectively or retrospectively. The Company is currently evaluating the impact of adopting ASU 2025-11 but does not expect the adoption to have a material impact on our consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)." The new guidance is intended to enhance transparency and disclosures by requiring public entities to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis. The ASU is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on the consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures." The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures by requiring disaggregated information about a reporting entity's effective tax rate reconciliation and information on income taxes paid. The amendment is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment in this Update should be applied on a prospective basis, with retrospective application permitted. The Company adopted this accounting guidance on December 31, 2025 on a prospective basis. Refer to Note 9, Income Taxes for the expanded disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures." The ASU expands reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. The ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment's profit or loss in assessing segment performance and deciding how to allocate resources. Additionally, ASU 2023-07 requires all segment profit or loss and assets disclosures to be provided on an annual and interim basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning December 15, 2024. The Company adopted this 39 Table of Contents accounting guidance on December 31, 2024, and applied it retrospectively to all prior periods presented in our consolidated financial statements. Refer to Note 10, Segment Information for the expanded disclosures. NOTE 2 - STOCKHOLDERS’ EQUITY Stock-Based Compensation All share-based payments, including grants of stock options, are recognized in the statements of earnings as operating expenses, based on their fair values. The Company has made an estimate of expected forfeitures, based on its historical experience, and is recognizing compensation cost only for those stock-based compensation awards expected to vest. The Company’s results for the years ended December 31, 2025, 2024 and 2023 reflected the following compensation cost and such compensation cost had the following effects on net earnings: Increase/(Decrease) for the Year Ended December 31, 2025 2024 2023 Cost of sales $ 1,643 $ 1,716 $ 1,900 Operating expenses 16,414 14,960 14,152 Net earnings ( 14,100 ) ( 12,865 ) ( 12,375 ) On December 31, 2025, the Company had one share-based compensation plan under which awards may be granted, which is described below. In June 2017, the Company’s shareholders approved the Balchem Corporation 2017 Omnibus Incentive Plan (“2017 Plan”) for officers, employees and directors of the Company and its subsidiaries. The 2017 Plan replaced the 1999 Stock Plan and amendments and restatements thereto (collectively to be referred to as the “1999 Plan"), which expired in April 2018. No further awards will be made under the 1999 Plan, and the shares that remained available for grant under the 1999 Plan will only be used to settle outstanding awards granted under the 1999 Plan and will not become available under the 2017 Plan. On June 22, 2023, the Company’s shareholders approved an amendment and restatement of the 2017 Plan (the “Amended 2017 Plan”). The Amended 2017 Plan is administered by the Compensation Committee of the Board of Directors of the Company. The Amended 2017 Plan provides as follows: (i) for a termination date of June 22, 2033; (ii) the authorization of 2,400,000 shares for future grants (which represents an increase of 800,000 shares from the amount approved under the 2017 Plan); (iii) for the making of grants of stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock-based awards, as well as for the making of cash performance awards; (iv) except as provided by the Compensation Committee or in an employment agreement as in effect on the effective date of the Amended 2017 Plan, no automatic acceleration of outstanding awards upon the occurrence of a change in control of the Company; (v) certain annual limits on the number of shares and amount of cash that may be granted; (vi) for dividends or dividend equivalents otherwise payable on an unvested award to accrue and be paid only at such time as the vesting conditions applicable to the underlying award have been satisfied; (vii) for incentive compensation recovery if the Company is required to prepare an accounting restatement of its financial statements, in accordance with any compensation recovery policy adopted by the Company, applicable law, government regulations or national securities exchange requirements, or in the discretion of the Compensation Committee in the event of a restatement due to the Company’s material noncompliance with any financial reporting requirements under the securities laws; and (viii) for compliance with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code” or the “Code”). No option will be exercisable for longer than ten years after the date of grant. The shares to be issued upon exercise of the outstanding options have been approved, reserved and are adequate to cover all exercises. As of December 31, 2025, the Amended 2017 Plan had 680,970 shares available for future awards. The fair value of each option award issued under the Company’s stock plans is estimated on the date of grant using either the Black-Scholes model or the Binomial model, whichever is deemed to be most appropriate. For the years ended December 31, 2025, 2024, and 2023, the fair value of each option grant uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of the options is based on the Company’s historical experience of employees’ exercise behavior. Dividend yields are based on the Company’s historical dividend yields. Risk-free interest rates are based on the implied yields currently available on U.S. Treasury zero coupon issues with a remaining term equal to the expected life. 40 Table of Contents Year Ended December 31, Weighted Average Assumptions: 2025 2024 2023 Expected Volatility 26.0 % 28.4 % 28.1 % Expected Term (in years) 5.2 5.0 4.8 Risk-Free Interest Rate 4.5 % 4.1 % 3.9 % Dividend Yield 0.6 % 0.6 % 0.5 % The Company has Restricted Stock Grant Agreements with the Company's non–employee directors and certain employees. Under the Restricted Stock Grant Agreements, certain shares of the Common Stock have been granted, ranging from 70 shares to 54,000 shares, to its non-employee directors and certain employees, subject to time-based vesting requirements. The value of the restricted shares is based on the fair value of the award at the date of grant. The Company also has performance share (“PS”) awards, which provide the recipients the right to receive a certain number of shares of the Common Stock in the future, subject to certain performance hurdles, depending on the date of the grant: (1) an EBITDA performance hurdle, where vesting is dependent upon the Company achieving a certain EBITDA percentage growth over the performance period (typically three years ), (2) a relative total shareholder return (“TSR”) market condition where vesting is dependent upon the Company’s TSR performance over the performance period (typically three years ) relative to a comparator group consisting of the Russell 2000 index constituents, or (3) an EBITDA performance hurdle, where vesting is dependent upon the Company achieving a certain EBITDA percentage growth over the performance period (typically three years) and modified based on the Company's TSR performance over the performance period relative to a comparator group consisting of the Russell 2000 index constituents. Performance Share expense is measured based on the fair value at the date of grant. A Monte-Carlo simulation has been used to estimate the fair value. The assumptions used in the fair value determination were risk free interest rates of 4.3 %, 4.2 %, and 4.2 %; dividend yields of 0.0 %, 0.0 %, and 0.5 %; volatilities of 26 %, 25 %, and 32 %; and initial TSR’s of - 8.8 %, 10.3 %, and 4.2 % in each case for the years ended December 31, 2025, 2024, and 2023, respectively. Expense is based on the estimated number of shares expected to vest, assuming the requisite service period is rendered and the probable outcome of the performance condition is achieved. The estimate is revised if subsequent information indicates that the actual number of shares likely to vest differs from previous estimates. Expense is ultimately adjusted based on the actual achievement of service and performance targets. The Performance Shares will cliff vest 100 % at the end of the third year following the grant in accordance with the performance metrics set forth. Grants may be subject to a mandatory holding period of one year from the vesting date. For PS awards granted in 2024 and 2025, grants are subject to such holding period. Compensation expense for stock options and stock awards is recognized on a straight-line basis over the vesting period, generally three to five years for stock options, three years for employee restricted stock awards, three years for employee performance share awards, and one to three years for non-employee director restricted stock awards. A summary of stock option plan activity for 2025, 2024, and 2023 for all plans is as follows: 2025 2024 2023 # of Shares (000s) Weighted Average Exercise Price # of Shares (000s) Weighted Average Exercise Price # of Shares (000s) Weighted Average Exercise Price Outstanding at beginning of year 962 $ 114.81 1,078 $ 104.38 1,045 $ 99.82 Granted 51 159.18 113 143.43 109 138.09 Exercised ( 107 ) 86.87 ( 221 ) 77.81 ( 64 ) 81.98 Forfeited ( 5 ) 142.00 ( 8 ) 139.64 ( 11 ) 131.79 Cancelled ( 1 ) 139.81 — — ( 1 ) 138.07 Outstanding at end of year 900 $ 120.48 962 $ 114.81 1,078 $ 104.38 Exercisable at end of year 630 $ 109.52 603 $ 99.59 720 $ 88.49 The aggregate intrinsic value for outstanding stock options was $ 29,888 , $ 46,346 and $ 47,889 at December 31, 2025, 2024 and 2023, respectively, with a weighted average remaining contractual term of 5.2 years at December 31, 2025. Exercisable stock 41 Table of Contents options at December 31, 2025 had an aggregate intrinsic value of $ 27,618 with a weighted average remaining contractual term of 4.2 years. Other information pertaining to option activity during the years ended December 31, 2025, 2024 and 2023 is as follows: Years Ended December 31, 2025 2024 2023 Weighted-average fair value of options granted $ 48.86 $ 44.52 $ 40.91 Total intrinsic value of stock options exercised ($000s) $ 7,756 $ 18,631 $ 3,241 Additional information related to stock options outstanding under all plans at December 31, 2025 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Shares Outstanding (000s) Weighted Average Remaining Contractual Term Weighted Average Exercise Price Number Exercisable (000s) Weighted Average Exercise Price $ 60.85 - $ 85.33 159 2.5 $ 79.64 159 $ 79.64 $ 85.40 - $ 120.60 273 3.6 107.34 273 107.34 $ 125.71 - $ 159.18 468 7.1 142.06 198 136.61 900 5.2 $ 120.48 630 $ 109.52 Non-vested restricted stock activity for the years ended December 31, 2025, 2024 and 2023 is summarized below: 2025 2024 2023 Shares (000s) Weighted Average Grant Date Fair Value Shares (000s) Weighted Average Grant Date Fair Value Shares (000s) Weighted Average Grant Date Fair Value Non-vested balance at beginning of year 122 $ 141.62 116 $ 133.06 122 $ 124.42 Granted 69 158.35 51 147.98 40 137.20 Vested ( 39 ) 138.11 ( 39 ) 124.63 ( 42 ) 112.30 Forfeited ( 5 ) 149.08 ( 6 ) 140.70 ( 4 ) 128.06 Non-vested balance at end of year 147 $ 150.15 122 $ 141.62 116 $ 133.06 Non-vested performance share activity for the years ended December 31, 2025, 2024 and 2023 is summarized below: 2025 2024 2023 Shares (000s) Weighted Average Grant Date Fair Value Shares (000s) Weighted Average Grant Date Fair Value Shares (000s) Weighted Average Grant Date Fair Value Non-vested balance at beginning of year 79 $ 150.73 76 $ 135.25 70 $ 127.69 Granted 50 147.96 47 152.28 42 139.66 Vested ( 44 ) 130.29 ( 44 ) 106.57 ( 36 ) 98.84 Forfeited ( 4 ) 152.69 — — — — Non-vested balance at end of year 81 $ 160.14 79 $ 150.73 76 $ 135.25 42 Table of Contents As of December 31, 2025, 2024 and 2023, there was $ 19,889 , $ 20,035 and $ 18,817 , respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. As of December 31, 2025, the unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 1.2 years. Repurchases of Common Stock On December 9, 2025, the Company's Board of Directors approved a new stock repurchase program (the "December 2025 program"), which replaced the previously approved June 1999 program. The December 2025 program authorizes the repurchases of up to and including 4,000,000 shares of the Company's ordinary shares. This new stock repurchase program has no expiration date, does not oblige the Company to acquire any particular amount of the Company's ordinary shares, and may be terminated at any time. As of December 9, 2025, the 1999 program was terminated and all remaining authorized shares ( 5,742 shares) were expired. Since the inception of the December 2025 program, a total of 69,659 shares have been repurchased. The Company intends to acquire shares from time to time at prevailing market prices if and to the extent it deems it is advisable to do so based on its assessment of corporate cash flow, market conditions and other factors. Open market repurchases of common stock could be made pursuant to a share repurchase agreement in compliance with Rule 10b-18 or a trading plan established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, which would permit common stock to be repurchased at a time that the Company might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions. The Company also repurchases (withholds) shares from employees in connection with the tax settlement of vested shares and/or exercised stock options, as applicable, under the Company's omnibus incentive plan. Such repurchases of shares from employees are funded with existing cash on hand. During 2025, 2024, and 2023, the Company purchased 684,927 , 38,922 , and 32,558 shares, respectively, from open market purchases and from employees on a net-settlement basis to provide cash to employees to cover the associated employee payroll taxes. These shares were purchased at an average cost of $ 158.27 , $ 145.99 , and $ 137.29 per share, respectively. The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. The Company records the applicable excise taxes payable related to repurchases of our common stock as an incremental cost of the shares repurchased and a corresponding liability for the excise tax payable in other accrued liabilities on our consolidated balance sheet. The excise tax payable was $ 779 and $ 0 as of December 31, 2025 and 2024, respectively. NOTE 3 - INVENTORIES Inventories, net of reserves at December 31, 2025 and 2024 consisted of the following: 2025 2024 Raw materials $ 41,858 $ 45,319 Work in progress 6,527 4,510 Finished goods 83,064 80,973 Total inventories $ 131,449 $ 130,802 On a regular basis, the Company evaluates its inventory balances for excess quantities and obsolescence by analyzing demand, inventory on hand, sales levels and other information. Based on these evaluations, inventory balances are reserved, if necessary. The reserve for inventory was $ 3,414 and $ 4,207 at December 31, 2025 and 2024, respectively. 43 Table of Contents NOTE 4 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at December 31, 2025 and 2024 are summarized as follows: 2025 2024 Land $ 12,428 $ 11,690 Building 116,395 106,954 Equipment 340,322 315,001 Construction in progress 95,229 77,508 564,374 511,153 Less: Accumulated depreciation 257,726 228,999 Property, plant and equipment, net $ 306,648 $ 282,154 Geographic area data - long-lived assets (excluding intangible assets): 2025 2024 United States $ 216,857 $ 204,397 Foreign Countries 89,791 77,757 Total $ 306,648 $ 282,154 Depreciation expense was $ 28,199 , $ 28,211 and $ 26,373 for the years ended December 31, 2025, 2024 and 2023, respectively. In accordance with Topic 360, the Company reviews long-lived assets for impairment on an annual basis and also whenever events indicate that the carrying amount of the assets may not be fully recoverable. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset, which is generally based on discounted cash flows. Included in "General and administrative expenses" was $ 521 of restructuring-related impairment charges related to an asset that was held for sale for the year ended December 31, 2024. Included in “General and administrative expenses” were restructuring-related impairment and asset disposal charges of $ 7,764 related to building, equipment, and construction in progress mainly in the Human Nutrition and Health and the Animal Nutrition and Health segments for the year ended December 31, 2023. There were no such charges for the year ended December 31, 2025. NOTE 5 - INTANGIBLE ASSETS The Company had goodwill in the amount of $ 816,375 and $ 780,030 as of December 31, 2025 and 2024, respectively, subject to the provisions of ASC 350, “Intangibles-Goodwill and Other.” The increase in goodwill is primarily due to foreign currency translation adjustments. Human Nutrition and Health Animal Nutrition and Health Specialty Products Other and Unallocated Total Goodwill as of December 31, 2023 $ 673,207 $ 24,469 $ 81,175 $ 56 $ 778,907 Goodwill as a result of an acquisition 19,376 — — — 19,376 Impact due to change in foreign exchange rates ( 14,308 ) ( 495 ) ( 3,443 ) ( 7 ) ( 18,253 ) Goodwill as of December 31, 2024 678,275 23,974 77,732 49 780,030 Goodwill as a result of an acquisition 823 — — — 823 Impact due to change in foreign exchange rates 27,417 938 7,167 — 35,522 Goodwill as of December 31, 2025 $ 706,515 $ 24,912 $ 84,899 $ 49 $ 816,375 44 Table of Contents As of December 31, 2025 and 2024, the Company had identifiable intangible assets as follows: 2025 2024 Amortization Period (In years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships and lists 10 - 20 $ 370,763 $ 237,769 $ 354,051 $ 221,567 Trademarks and trade names 2 - 17 52,256 43,655 50,971 41,417 Developed technology 5 - 12 42,385 23,415 40,074 20,362 Other 2 - 18 25,178 22,454 25,154 21,854 Other intangible assets with finite lives $ 119,819 $ 89,524 $ 116,199 $ 83,633 Amortization of identifiable intangible assets was $ 16,993 , $ 19,244 and $ 28,035 for 2025, 2024 and 2023, respectively. Assuming no change in the gross carrying value of identifiable intangible assets, the estimated amortization expense is approximately $ 17,415 in 2026, $ 16,878 in 2027, $ 16,408 in 2028, $ 15,991 in 2029, and $ 15,604 in 2030. At December 31, 2025 and 2024, there were no identifiable intangible assets with indefinite useful lives as defined by ASC 350, “Intangibles-Goodwill and Other.” Identifiable intangible assets are reflected in "Customer relationships and lists, net" and "Other intangible assets with finite lives, net" on the Company’s consolidated balance sheets. There were no changes to the useful lives of intangible assets subject to amortization in 2025 and 2024. The Federal Insecticide, Fungicide and Rodenticide Act, (“FIFRA”), a health and safety statute, requires that certain products within our Specialty Products segment must be registered with the U.S. Environmental Protection Agency (the "EPA") because they are considered pesticides. Costs of such registrations are included in Other in the table above. NOTE 6 – EQUITY-METHOD INVESTMENT In 2013, the Company and Eastman Chemical Company formed a joint venture ( 66.66 % / 33.34 % ownership), St. Gabriel CC Company, LLC, to design, develop, and construct an expansion of the Company’s St. Gabriel aqueous choline chloride plant. The Company contributed the St. Gabriel plant, at cost, and all continued expansion and improvements are funded by the owners. The joint venture became operational as of July 1, 2016. St. Gabriel CC Company, LLC is a Variable Interest Entity ("VIE") because the total equity at risk is not sufficient to permit the joint venture to finance its own activities without additional subordinated financial support. Additionally, voting rights ( 2 votes each) are not proportionate to the owners’ obligation to absorb expected losses or receive the expected residual returns of the joint venture. The Company generally receives up to 2/3 of the production offtake capacity, which (percentage of offtake) may be adjusted from time to time to the extent the owners agree as such, and absorbs operating expenses approximately proportional to the actual percentage of offtake. The joint venture is accounted for under the equity method of accounting since the Company is not the primary beneficiary as the Company does not have the power to direct the activities of the joint venture that most significantly impact its economic performance. The Company recognized a loss of $ 491 , $ 489 , and $ 509 for the years ended December 31, 2025, 2024, and 2023, respectively, relating to its portion of the joint venture’s expenses in other expense. The Company made capital contributions to the investment totaling $ 353 , $ 269 , and $ 290 for the years ended December 31, 2025, 2024, and 2023 respectively. The carrying value of the joint venture at December 31, 2025 and 2024 was $ 3,717 and $ 3,856 , respectively, and is recorded in "Other non-current assets" on the consolidated balance sheets. NOTE 7 – REVOLVING LOAN On July 27, 2022, the Company entered into an Amended and Restated Credit Agreement (the "2022 Credit Agreement") with certain lenders in the form of a senior secured revolving credit facility, due on July 27, 2027. The 2022 Credit Agreement allows for up to $ 550,000 of borrowing. The loans may be used for working capital, letters of credit, and other corporate purposes and may be drawn upon at the Company's discretion. As of December 31, 2025 and 2024, the total balance outstanding on the 2022 Credit Agreement amounted to $ 164,000 and $ 190,000 , respectively. There are no installment payments required on the revolving loans; they may be voluntarily prepaid in whole or in part without premium or penalty, and all outstanding amounts are due on the maturity date. Amounts outstanding under the 2022 Credit Agreement are subject to an interest rate equal to a fluctuating rate as defined by the 2022 Credit Agreement plus an applicable rate. The applicable rate is based upon the Company’s consolidated net leverage ratio, as defined in the 2022 Credit Agreement, and the interest rate was 4.84 % at December 31, 2025. The Company is also required to 45 Table of Contents pay a commitment fee on the unused portion of the revolving loan, which is based on the Company’s consolidated net leverage ratio as defined in the 2022 Credit Agreement and ranges from 0.150 % to 0.225 % ( 0.150 % at December 31, 2025). The unused portion of the revolving loan amounted to $ 386,000 at December 31, 2025. The Company is also required to pay, as applicable, letter of credit fees, administrative agent fees, and other fees to the arrangers and lenders. Costs associated with the issuance of the revolving loans are capitalized and amortized on a straight-line basis over the term of the 2022 Credit Agreement. Capitalized costs net of accumulated amortization totaled $ 455 and $ 743 at December 31, 2025 and 2024, respectively, and are included in "Other non-current assets" on the consolidated balance sheets. Amortization expense pertaining to these costs totaled $ 288 , $ 287 , and $ 287 for the years ended December 31, 2025, 2024, and 2023, respectively, and are included in "Interest expense" in the accompanying consolidated statements of earnings. The 2022 Credit Agreement contains quarterly covenants requiring the consolidated leverage ratio to be less than a certain maximum ratio and the consolidated interest coverage ratio to exceed a certain minimum ratio. At December 31, 2025, the Company was in compliance with these covenants. Indebtedness under the Company’s loan agreements is secured by assets of the Company. NOTE 8 - NET EARNINGS PER COMMON SHARE The following presents a reconciliation of the net earnings and shares used in calculating basic and diluted net earnings per common share: Year Ended December 31, 2025 2024 2023 Net Earnings - Basic and Diluted $ 154,845 $ 128,475 $ 108,543 Share (000s) Weighted Average Common Shares - Basic 32,265 32,332 32,108 Effect of Dilutive Securities – Stock Options, Restricted Stock, and Performance Shares 339 386 340 Weighted Average Common Shares - Diluted 32,604 32,718 32,448 Net Earnings Per Share - Basic $ 4.80 $ 3.97 $ 3.38 Net Earnings Per Share - Diluted $ 4.75 $ 3.93 $ 3.35 The number of anti-dilutive shares were 227,120 , 230,302 , and 354,619 for the years ended December 31, 2025, 2024, and 2023. Anti-dilutive shares could potentially dilute basic earnings per share in future periods and therefore, were not included in diluted earnings per share. NOTE 9 - INCOME TAXES The Company’s effective tax rate for 2025, 2024 and 2023 was 22.2 %, 22.8 % , and 20.9 %, respectively . The decrease from 2024 to 2025 is primarily due to a decrease in certain state and foreign taxes partially offset by lower tax benefits from stock-based compensation. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA"), which includes a broad range of tax provisions, was signed into law in the United States. While the OBBBA did not have material impact on the Company's annual effective tax rate in 2025, the Company will continue to assess its impact for future reporting periods. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance if it believes that such assets may not be recovered, taking into consideration historical operating results, expectations of future earnings, changes in its operations and the expected timing of the reversals of existing temporary differences. 46 Table of Contents The Company considers the undistributed earnings of certain non-U.S. subsidiaries to be indefinitely reinvested outside of the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and the Company's specific plans for reinvestment of those subsidiary earnings. The Company projects that its foreign earnings will be utilized offshore for working capital and future foreign growth. The determination of the unrecognized deferred tax liability on those undistributed earnings is not practicable due to its legal entity structure and the complexity of U.S. and local country tax laws. If the Company decides to change its assertion on its remaining undistributed foreign earnings, it will need to recognize the income tax effects in the period it changes its assertion. Effective for the year ended December 31, 2025, the Company adopted ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", using the prospective transition method. The following table reconciles the difference between the provision for income taxes and the amount computed by applying the Federal statutory rate of 21.0% after the adoption of ASU 2023-09: 2025 Amount Percent Income tax at Federal statutory rate $ 41,796 21.0 % State and local income tax, net of federal (national) income tax effect 3,143 1.6 % Foreign tax effects 1,044 0.5 % Effect of cross-border tax laws: Foreign-derived intangible income (FDII) ( 1,608 ) ( 0.8 ) % Global intangible low-tax income (GILTI) 515 0.3 % Subpart F income 56 — % Tax credits: R&D tax credits ( 1,045 ) ( 0.5 ) % Nontaxable or nondeductible items: Share-based payment awards 960 0.5 % Changes in unrecognized tax benefits ( 265 ) ( 0.1 ) % Other ( 411 ) ( 0.3 ) % Total income tax provision $ 44,185 22.2 % As of December 31, 2025, the majority of state and local taxes were concentrated in California, New Jersey and Utah. The following table reconciles the difference between the provision for income taxes and the amount computed by applying the Federal statutory rate of 21.0% before the adoption of ASU 2023-09: 2024 2023 Income tax at Federal statutory rate $ 34,955 $ 28,825 State income taxes, net of Federal income taxes 2,284 2,513 Change in foreign tax reserves 2,146 — Stock options ( 1,904 ) ( 1,004 ) Foreign-derived intangible income (FDII) ( 1,562 ) ( 1,752 ) Foreign rate differential 1,024 946 Other 1,035 ( 810 ) Total income tax provision $ 37,978 $ 28,718 The following table states earnings before income tax expense between domestic and foreign for the year ended December 31, 2025 after the adoption of ASU 2023-09: 2025 Domestic $ 173,022 Foreign 26,008 Total earnings before income tax expense $ 199,030 47 Table of Contents Income tax expense consists of the following: 2025 2024 2023 Current: Federal $ 29,592 $ 30,208 $ 27,306 Foreign 5,972 10,376 7,634 State 2,507 4,173 4,403 Deferred: Federal 5,555 ( 2,442 ) ( 7,737 ) Foreign 106 ( 3,192 ) ( 2,285 ) State 453 ( 1,145 ) ( 603 ) Total income tax expense $ 44,185 $ 37,978 $ 28,718 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024 were as follows: 2025 2024 Deferred tax assets: Inventories $ 905 $ 2,437 Share-based compensation 5,223 4,476 Lease liabilities 4,033 4,296 Research and development 6,658 12,838 Other 4,510 5,658 Total deferred tax assets 21,329 29,705 Deferred tax liabilities: Amortization $ ( 41,810 ) $ ( 38,532 ) Depreciation ( 26,871 ) ( 26,234 ) Prepaid expenses ( 392 ) ( 306 ) Foreign currency and interest rate swaps ( 646 ) ( 642 ) Right of use assets ( 3,810 ) ( 4,032 ) Other ( 1,921 ) ( 3,656 ) Total deferred tax liabilities ( 75,450 ) ( 73,402 ) Valuation allowance ( 22 ) ( 25 ) Net deferred tax liability $ ( 54,143 ) $ ( 43,722 ) As of December 31, 2025, the Company has state income tax net operating loss (NOL) carryforwards of $ 285 . The state NOL carryforwards will expire between 2026 and 2035. The Company believes that the benefit from the state NOL carryforwards will not be realized, therefore, a valuation allowance has been established in the amount of $ 22 . Provisions of ASC 740-10 clarify whether or not to recognize assets or liabilities for tax positions taken that may be challenged by a tax authority. A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is included in other long-term obligations on the Company’s consolidated balance sheets, is as follows: 2025 2024 2023 Balance at beginning of period $ 6,720 $ 4,650 $ 5,815 Increases for tax positions of prior years 1,179 3,211 1,353 Decreases for tax positions of prior years ( 1,168 ) ( 1,141 ) ( 2,518 ) Balance at end of period $ 6,731 $ 6,720 $ 4,650 All of Balchem's unrecognized tax benefits, if recognized in future periods, would impact the Company's effective tax rate in such future periods. 48 Table of Contents The Company recognizes both interest and penalties as part of the income tax provision. During the years ended December 31, 2025, 2024 and 2023, these amounts decreased by $ 2 , increased by $ 939 , and decreased by $ 322 , respectively. As of December 31, 2025 and 2024, accrued interest and penalties were $ 2,350 and $ 2,352 , respectively. Balchem files income tax returns in the U.S. and in various states and foreign countries. In the major jurisdictions where the Company operates, it is generally no longer subject to income tax examinations by tax authorities for years before 2021. The European Union (“EU”) member states formally adopted the EU’s Pillar Two Directive, which was established by the Organization for Economic Co-operation and Development. Pillar Two generally provides for a 15 percent minimum effective tax rate for the jurisdictions where multinational enterprises operate. While it did not have material impact on the Company's tax provision or effective tax rate in 2025 and the Company does not anticipate that this will have a material impact for future reporting periods, the Company continues to monitor evolving tax legislation in the jurisdictions in which it operates. The following table presents cash paid for income taxes by jurisdiction for the year ended December 31, 2025 in accordance with ASU 2023-09: 2025 Jurisdiction Federal $ 27,255 State and local 2,860 Foreign Belgium 3,444 Norway 2,589 All other jurisdictions 1,601 Total cash paid for income taxes (net of refunds received) $ 37,749 Cash paid for income taxes (net of refunds received) were $ 42,643 and $ 35,725 for the years ended December 31, 2024 and 2023, respectively. NOTE 10 - SEGMENT INFORMATION Balchem Corporation reports three reportable segments: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. The reportable segments are organized based on the end use of the products manufactured and sold. Sales and production of products outside of our reportable segments and other minor business activities are included in "Other and Unallocated." Human Nutrition and Health The Human Nutrition and Health ("HNH") segment provides human grade choline nutrients and mineral amino acid chelated products through this segment for nutrition and health applications. Choline is recognized to play a key role in the development and structural integrity of brain cell membranes in infants, processing dietary fat, reproductive development and neural functions, such as memory and muscle function. The Company's mineral amino acid chelates, specialized mineral salts, and mineral complexes are used as raw materials for inclusion in premier human nutrition products; proprietary technologies have been combined to create an organic molecule in a form the body can readily assimilate. Sales growth for human nutrition applications is reliant on differentiation from lower-cost competitive products through scientific data, intellectual property and customers' appreciation of brand value. Consequently, the Company makes investments in such activities for long-term value differentiation. This segment also manufactures specialty vitamin K2, which plays a crucial role in the human body for bone health, heart health and immunity, and methylsulfonylmethane ("MSM"), which is a widely used nutritional ingredient that helps provide benefits for joint health, sports nutrition, skin and beauty, and healthy aging. This segment also serves the food and beverage industry for beverage, bakery, dairy, confectionary, and savory manufacturers. The Company partners with its customers from ideation through commercialization to bring on-trend beverages, baked goods, confections, dairy and meat products to market. The Company has expertise in trends analysis and product development. With its strong manufacturing capabilities in customized spray dried and emulsified powders, extrusion and agglomeration, blended lipid systems, liquid flavor delivery systems, juice and dairy bases, chocolate systems, ice cream bases and variegates, the Company is a one-stop solutions provider for beverage and dairy product development needs. Additionally, this segment provides microencapsulation solutions to a variety of applications in food, pharmaceutical and nutritional ingredients to enhance performance of nutritional fortification, processing, mixing, and packaging applications and shelf life. Major product applications are baked goods, refrigerated and frozen dough systems, 49 Table of Contents processed meats, seasoning blends, confections, sports and protein bars, dietary plans, and nutritional supplements. The Company also creates cereal systems for ready-to-eat cereals, grain-based snacks, and cereal based ingredients. Animal Nutrition and Health The Animal Nutrition and Health ("ANH") segment provides nutritional products derived from its microencapsulation and chelation technologies in addition to the essential nutrient choline chloride. For ruminant animals, the Company’s microencapsulated products boost health and milk production by delivering nutrient supplements that are biologically available, providing required nutritional levels. The Company’s proprietary chelation technology provides enhanced nutrient absorption for various species of production and companion animals and is marketed for use in animal feed throughout the world. ANH also manufactures and supplies choline chloride, an essential nutrient for monogastric animal health, predominantly to the poultry, pet and swine industries. Choline, which is manufactured and sold in both dry and aqueous forms, plays a vital role in the metabolism of fat. In poultry, choline deficiency can result in reduced growth rates and perosis in young birds, while in swine production choline is a necessary and required component of gestating and lactating sow diets for both liver health and prevention of leg deformity. This segment also manufactures MSM, which is a widely used nutritional ingredient that provides benefits for pet health. Sales of value-added encapsulated products are highly dependent on overall industry economics as well as the Company's ability to leverage the results of university and field research on the animal health and production benefits of our products. Management believes that success in the commodity-oriented choline chloride marketplace is highly dependent on the Company’s ability to maintain its strong reputation for excellent product quality and customer service. The Company continues to drive production efficiencies in order to maintain its competitive-cost position to effectively compete in a competitive global marketplace. Specialty Products The Specialty Products segment ("SP") re-packages and distributes a number of performance gases and chemicals for various uses by its customers, notably ethylene oxide, propylene oxide, and ammonia. Ethylene oxide is sold as a sterilant gas, primarily for use in the health care industry. It is used to sterilize a wide range of medical devices because of its versatility and effectiveness in treating hard or soft surfaces, composites, metals, tubing and different types of plastics without negatively impacting the performance of the device being sterilized. Contract sterilizers and medical device manufacturers are principal customers for this product. Propylene oxide is marketed and sold as a fumigant to aid in the control of insects and microbiological spoilage, to reduce bacterial and mold contamination in certain shelled and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs and prunes, and for various chemical synthesis applications, such as increasing paint durability and manufacturing specialty starches and textile coatings. Ammonia is used primarily as a refrigerant, for heat treatment of metals and various chemical synthesis applications, and is distributed in reusable and recyclable drum and cylinder packaging approved for use in the countries these products are shipped to. The Company’s performance gases and chemicals are distributed worldwide in specially designed, reusable and recyclable drum and cylinder packaging, to assure compliance with safety, quality and environmental standards as outlined by the applicable regulatory agencies in the countries our products are shipped to. The Company’s inventory of these specially built drums and cylinders, along with its five filling facilities, represents a significant capital investment. The Company also sells single use canisters for use in sterilizing reusable devices typically processed in autoclave units in hospitals. The Company’s micronutrient agricultural nutrition business sells chelated minerals primarily to producers of high value crops. The Company has a unique and patented two-step approach to solving mineral deficiency in plants to optimize health, yield and shelf life. First, the Company determines optimal mineral balance for plant health. The Company then has a foliar applied Metalosate ® product range, utilizing patented amino acid chelate technology. Its products quickly and efficiently deliver mineral nutrients. As a result, the farmer/grower gets healthier crops that are more resistant to disease and pests, larger yields and healthier food for the consumer with extended shelf life for produce being shipped long distances. The Company's CODM is the Chief Executive Officer. The CODM receives a profit and loss reporting package which provides segment information including revenue, cost of goods sold, gross margin, total operating expenses, and earnings from operations. The CODM utilizes this monthly profit and loss reporting package to analyze segment performance and appropriately allocate resources. 50 Table of Contents Pursuant to ASU 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures", the significant segment information is summarized as follows: For the Year Ended December 31, 2025 HNH ANH SP Other and Unallocated Total Net sales $ 659,387 $ 230,852 $ 140,976 $ 5,946 $ 1,037,161 Cost of sales 415,102 (1) 180,292 (1) 63,611 (1) 7,523 (1) 666,528 Gross margin 244,285 50,560 77,365 ( 1,577 ) 370,633 Operating expenses 90,379 (2) 31,873 (3) 34,464 (4) 4,591 (5) 161,307 Earnings from operations 153,906 18,687 42,901 ( 6,168 ) 209,326 Other expenses: Interest expense, net 10,219 Other expense 77 10,296 Earnings before income tax expense 199,030 Income tax expense 44,185 Net earnings $ 154,845 (1) Cost of sales are primarily comprised of raw materials consumed in the manufacture of product, as well as manufacturing labor, depreciation expense, and other overhead expense necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight costs, outbound freight costs for shipping products to customers, warehousing costs, quality control and obsolescence expense. (2) Operating expenses within HNH are primarily comprised of compensation-related costs, professional services, including advertising and marketing costs, and amortization expense in connection with certain acquired intangible assets. (3) Operating expenses within ANH are primarily comprised of compensation-related costs and professional services, including advertising and marketing costs. (4) Operating expenses within SP are primarily comprised of compensation-related costs, professional services, and amortization expense in connection with certain acquired intangible assets. (5) Operating expenses within Other and Unallocated are primarily comprised of compensation-related costs and transaction and integration costs. For the Year Ended December 31, 2024 HNH ANH SP Other and Unallocated Total Net sales $ 600,258 $ 214,710 $ 132,749 $ 5,967 $ 953,684 Cost of sales 378,411 (6) 171,409 (6) 59,449 (6) 8,209 (6) 617,478 Gross margin 221,847 43,301 73,300 ( 2,242 ) 336,206 Operating expenses 85,890 (7) 29,288 (8) 33,394 (9) 4,725 (10) 153,297 Earnings from operations 135,957 14,013 39,906 ( 6,967 ) 182,909 Other expenses: Interest expense, net 16,528 Other income ( 72 ) 16,456 Earnings before income tax expense 166,453 Income tax expense 37,978 Net earnings $ 128,475 51 Table of Contents (6) Cost of sales are primarily comprised of raw materials consumed in the manufacture of product, as well as manufacturing labor, depreciation expense, and other overhead expense necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight costs, outbound freight costs for shipping products to customers, warehousing costs, quality control and obsolescence expense. (7 Operating expenses within HNH are primarily comprised of compensation-related costs, professional services, including advertising and marketing costs, and amortization expense in connection with certain acquired intangible assets. (8) Operating expenses within ANH are primarily comprised of compensation-related costs and professional services, including advertising and marketing costs. (9) Operating expenses within SP are primarily comprised of compensation-related costs, professional services, and amortization expense in connection with certain acquired intangible assets. (10) Operating expenses within Other and Unallocated are primarily comprised of transaction and integration costs. For the Year Ended December 31, 2023 HNH ANH SP Other and Unallocated Total Net sales $ 550,751 $ 238,326 $ 125,965 $ 7,397 $ 922,439 Cost of sales 366,539 (11) 183,827 (11) 62,183 (11) 7,834 (11) 620,383 Gross margin 184,212 54,499 63,782 ( 437 ) 302,056 Operating expenses 81,793 (12) 26,923 (13) 29,203 (14) 4,944 (15) 142,863 Earnings from operations 102,419 27,576 34,579 ( 5,381 ) 159,193 Other expenses: Interest expense, net 22,613 Other income ( 681 ) 21,932 Earnings before income tax expense 137,261 Income tax expense 28,718 Net earnings $ 108,543 (11) Cost of sales are primarily comprised of raw materials consumed in the manufacture of product, as well as manufacturing labor, depreciation expense, and other overhead expense necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight costs, outbound freight costs for shipping products to customers, warehousing costs, quality control and obsolescence expense. (12) Operating expenses within HNH are primarily comprised of compensation-related costs, professional services, including advertising and marketing costs, and amortization expense in connection with certain acquired intangible assets. These expenses were partially offset by favorable adjustments to transaction costs. (13) Operating expenses within ANH are primarily comprised of compensation-related costs and professional services, including advertising and marketing costs. These expenses were partially offset by favorable adjustments to transaction costs. (14) Operating expenses within SP are primarily comprised of compensation-related costs, professional services, and amortization expense in connection with certain acquired intangible assets. (15) Operating expenses within Other and Unallocated are primarily comprised of transaction and integration costs, and unallocated amortization expense related to an intangible asset in connection with a company-wide ERP system implementation. Business Segment Assets 2025 2024 HNH $ 1,243,522 $ 1,185,962 ANH 176,608 161,243 SP 172,076 161,283 Other and Unallocated (16) 94,046 66,883 Total $ 1,686,252 $ 1,575,371 52 Table of Contents (16) Other and Unallocated assets consist of certain cash, capitalized loan issuance costs, other assets, investments, and income taxes, which the Company does not allocate to its individual business segments. It also includes assets associated with a few minor businesses which individually do not meet the quantitative thresholds for separate presentation. Depreciation/Amortization 2025 2024 2023 HNH $ 30,119 $ 31,668 $ 38,568 ANH 7,282 8,233 7,876 SP 7,365 7,044 7,278 Other and Unallocated 924 1,028 1,213 Total $ 45,690 $ 47,973 $ 54,935 Capital Expenditures 2025 2024 2023 HNH $ 21,218 $ 17,570 $ 26,415 ANH 16,830 13,201 6,993 SP 4,628 4,050 3,535 Other and Unallocated 517 327 331 Total $ 43,193 $ 35,148 $ 37,274 NOTE 11 - REVENUE Revenue Recognition Revenues are recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration we expect to realize in exchange for those goods. The following table presents revenues disaggregated by revenue source. Sales and usage-based taxes are excluded from revenues: 2025 2024 2023 Product Sales Revenue $ 1,035,272 $ 951,947 $ 919,951 Royalty Revenue 1,889 1,737 2,488 Total Revenue $ 1,037,161 $ 953,684 $ 922,439 The following table presents revenues disaggregated by geography, based on customers' delivery addresses: 2025 2024 2023 United States $ 759,448 $ 723,300 $ 689,601 Foreign Countries 277,713 230,384 232,838 Total $ 1,037,161 $ 953,684 $ 922,439 Product Sales Revenues The Company’s primary operation is the manufacturing and sale of health and nutrition ingredient products, in which the Company receives an order from a customer and fulfills that order. The Company’s product sales are considered point-in-time revenue. 53 Table of Contents Royalty Revenues Royalty revenue consists of agreements with customers to use the Company’s intellectual property in exchange for a sales-based royalty. Royalties are considered over time revenue and are recorded in the Human Nutrition and Health segment. Contract Liabilities The Company records contract liabilities when cash payments are received or due in advance of performance, including amounts which are refundable. The Company’s payment terms vary by the type and location of customers and the products offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, the Company requires payment before the products are delivered to the customer. Practical Expedients and Exemptions The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling and marketing expenses. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for products shipped. NOTE 12 - SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the year for: 2025 2024 2023 Income taxes, net of refunds (see Note 9) $ 37,749 $ 42,643 $ 35,725 Interest $ 10,603 $ 17,697 $ 25,933 Non-cash financing and investing activities: 2025 2024 2023 Dividends payable $ 31,044 $ 28,510 $ 25,717 54 Table of Contents NOTE 13 – ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in accumulated other comprehensive income (loss) were as follows: Years Ended December 31, 2025 2024 2023 Net foreign currency translation adjustment $ 65,535 $ ( 32,590 ) $ 16,809 Net change of cash flow hedge (see Note 19 for further information) Unrealized loss on cash flow hedge — — ( 1,406 ) Tax — — 341 Net of tax — — ( 1,065 ) Net change in postretirement benefit plan (see Note 14 for further information) Prior service (gain) loss arising during the period ( 319 ) 206 132 Amortization of (gain) loss ( 5 ) ( 10 ) 8 Total before tax ( 324 ) 196 140 Tax 83 ( 44 ) ( 39 ) Net of tax ( 241 ) 152 101 Total other comprehensive income (loss) $ 65,294 $ ( 32,438 ) $ 15,845 Included in "Net foreign currency translation adjustment" was a loss of $ 1,455 related to a net investment hedge, net of tax benefits of $ 471 for the year ended December 31, 2023. There were no such gains or losses for the years ended December 31, 2025 and 2024. The Company settled its derivative instruments on their maturity date of June 27, 2023. See Note 19, Derivative Instruments and Hedging Activities . Accumulated other comprehensive income (loss) at December 31, 2025 and 2024 consisted of the following: Foreign currency translation adjustment Postretirement benefit plan Total Balance December 31, 2024 $ ( 24,182 ) $ 435 $ ( 23,747 ) Other comprehensive income (loss) 65,535 ( 241 ) 65,294 Balance December 31, 2025 $ 41,353 $ 194 $ 41,547 NOTE 14 - EMPLOYEE BENEFIT PLANS Defined Contribution Plans The Company sponsors one 401(k) savings plan for eligible employees, which allows participants to make pretax or after tax contributions and the Company matches certain percentages of those contributions. The plan also has a discretionary profit sharing portion and matches 401(k) contributions with shares of the Company’s Common Stock. All amounts contributed to the plan are deposited into a trust fund administered by independent trustees. The Company provided for matching 401(k) savings plan contributions of $ 4,794 , $ 4,644 , and $ 4,381 in 2025, 2024 and 2023, respectively. There were no profit sharing contributions in 2025 and 2024. Profit sharing contributions in 2023 were not material. The Company also sponsors various defined contribution plans for employees working in our foreign operations and matches certain employee contributions. These contributions are deposited into trust funds administered by independent trustees. The Company's contributions to these plans amounted to $ 814 , $ 555 , and $ 600 in 2025, 2024, and 2023, respectively. 55 Table of Contents Postretirement Medical Plans The Company provides postretirement benefits in the form of two unfunded postretirement medical plans; one that is under a collective-bargaining agreement and covers eligible retired employees of the Verona, Missouri facility and a plan for executive officers of the Company who meet eligibility requirements as set forth in the Company's Officer Retiree Program. The Company uses a December 31 measurement date for its postretirement medical plans. In accordance with ASC 715, “Compensation—Retirement Benefits,” the Company is required to recognize the overfunded or underfunded status of a defined benefit post retirement plan (other than a multi-employer plan) as an asset or liability in its statement of financial position, and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. The actuarial recorded liabilities for such unfunded postretirement benefits are as follows: Change in benefit obligation: 2025 2024 Benefit obligation at beginning of year $ 1,522 $ 1,395 Service cost with interest to end of year 115 113 Interest cost 71 55 Participant contributions 19 20 Benefits paid ( 67 ) ( 32 ) Actuarial gain ( 539 ) ( 29 ) Benefit obligation at end of year $ 1,122 $ 1,522 Change in plan assets: 2025 2024 Fair value of plan assets at beginning of year $ — $ — Employer contributions 48 12 Participant contributions 19 20 Benefits paid ( 67 ) ( 32 ) Fair value of plan assets at end of year $ — $ — Amounts recognized in consolidated balance sheet: 2025 2024 Accumulated postretirement benefit obligation $ ( 1,122 ) $ ( 1,522 ) Fair value of plan assets — — Funded status ( 1,122 ) ( 1,522 ) Unrecognized prior service cost — — Unrecognized net (gain) loss ( 10 ) 8 Net amount recognized in consolidated balance sheet (after ASC 715) (included in "Other long-term obligations") $ ( 1,122 ) $ ( 1,522 ) Accrued postretirement benefit cost (included in "Other long-term obligations") N/A N/A Components of net periodic benefit cost: 2025 2024 2023 Service cost with interest to end of year $ 115 $ 113 $ 108 Interest cost 71 55 62 Amortization of (gain) loss ( 9 ) ( 10 ) 8 Total net periodic benefit cost $ 177 $ 158 $ 178 56 Table of Contents Estimated future employer contributions and benefit payments are as follows: Year 2026 $ 36 2027 39 2028 63 2029 80 2030 100 Years 2031-2035 571 Assumptions to determine benefit obligations: 2025 2024 Discount rate 4.80 % 4.85 % Assumptions to determine net cost: 2025 2024 2023 Discount rate 4.85 % 4.15 % 4.40 % Defined Benefit Pension Plans The Company contributes to one multi-employer defined benefit plan under the terms of a collective-bargaining agreement covering its union-represented employees of the Verona, Missouri facility. The risks of participation in this multi-employer plan are different from single-employer plans in the following aspects: (a) assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers, (b) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, and (c) if the Company was to stop participating in its multi-employer plan, the Company would be required to pay that plan an amount based on the underfunded status of the plan, referred to as the withdrawal liability. The Company’s participation in this plan for the annual period ended December 31, 2025 is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employee Identification Number (EIN). The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone or critical and declining zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject. Finally, the period-to-period comparability of the contributions for 2025 and 2024 was affected by a 4.0 % increase in the 2025 contribution rate. There have been no other significant changes that affect the comparability of 2025 and 2024 contributions. The Company does not represent more than 5% of the contributions to this pension fund. Pension Fund EIN/Pension Plan Number Pension Plan Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions of Balchem Corporation Surcharge Imposed Expiration Date of Collective- Bargaining Agreement 2025 2024 2025 2024 2023 Central States, Southeast and Southwest Areas Pension Fund 36-6044243 Critical as of 1/1/25 Critical as of 1/1/24 Implemented $ 1,096 $ 1,073 $ 1,020 No 7/12/2029 The Company provides an unfunded defined benefit pension plan for employees working in Belgium. The plan provides for the payment of a lump sum at retirement or payments in case of death of the covered employees. 57 Table of Contents The actuarial recorded liabilities for such unfunded defined benefit pension plan are as follows: Change in benefit obligation: 2025 2024 Benefit obligation at beginning of year $ 2,134 $ 1,660 Service cost with interest to end of year 215 72 Interest cost 81 54 Benefits paid ( 206 ) ( 42 ) Actuarial loss 389 488 Expenses paid ( 10 ) — Exchange rate changes 278 ( 98 ) Benefit obligation at end of year $ 2,881 $ 2,134 Change in plan assets: 2025 2024 Fair value of plan assets at beginning of year $ 1,521 $ 1,240 Actual return on plan assets 299 216 Employer contributions 209 181 Benefits paid ( 206 ) ( 42 ) Expenses paid ( 10 ) — Exchange rate changes 199 ( 74 ) Fair value of plan assets at end of year $ 2,012 $ 1,521 Amounts recognized in consolidated balance sheet: 2025 2024 Benefit obligation $ ( 2,881 ) $ ( 2,134 ) Fair value of plan assets 2,012 1,521 Funded status ( 869 ) ( 613 ) Unrecognized prior service cost N/A N/A Unrecognized net (gain)/loss N/A N/A Net amount recognized in consolidated balance sheet (after ASC 715) (included in other long-term obligations) $ ( 869 ) $ ( 613 ) Accrued postretirement benefit cost (included in other long-term obligations) N/A N/A Components of net periodic benefit cost: 2025 2024 2023 Service cost with interest to end of year $ 215 $ 72 $ 65 Interest cost 81 54 65 Expected return on plan assets ( 59 ) ( 40 ) ( 42 ) Amortization of net loss 4 — — Total net periodic benefit cost $ 241 $ 86 $ 88 58 Table of Contents Estimated future benefit payments are as follows: Year 2026 $ — 2027 — 2028 — 2029 15 2030 384 Years 2031-2035 2,086 Assumptions to determine benefit obligations: 2025 2024 Discount rate 3.75 % 3.35 % Assumptions to determine net cost: 2025 2024 2023 Discount rate 3.35 % 3.45 % 4.00 % Expected return on assets 3.25 % 3.25 % 3.25 % Deferred Compensation Plan The Company maintains an unfunded, non-qualified deferred compensation plan for the benefit of a select group of management or highly compensated employees. Assets of the plan are held in a rabbi trust, which are subject to additional risk of loss in the event of bankruptcy or insolvency of the Company. The deferred compensation liability was $ 12,806 as of December 31, 2025, of which $ 12,781 was included in "Other long-term obligations" and $ 25 was included in "Accrued compensation and other benefits" on the Company's consolidated balance sheets. The deferred compensation liability was $ 11,470 as of December 31, 2024, of which $ 11,449 was included in "Other long-term obligations" and $ 21 was included in "accrued compensation and other benefits" on the Company’s consolidated balance sheets. The related assets of the irrevocable trust funds (also known as "rabbi trust funds") were $ 12,798 as of December 31, 2025, of which $ 12,773 was included in "Other non-current assets" and $ 25 was included in "Other current assets" on the Company's consolidated balance sheet. The rabbi trust funds were $ 11,465 as of December 31, 2024 and were included in "Other non-current assets" on the Company's consolidated balance sheets. NOTE 15 - COMMITMENTS AND CONTINGENCIES The Company is obligated to make rental payments under non-cancelable operating and finance leases. Aggregate future minimum rental payments required under these leases at December 31, 2025 are disclosed in Note 18, Leases . The Company’s Verona, Missouri facility, while held by a prior owner, Syntex Agribusiness, Inc. (“Syntex”), was designated by the U.S. Environmental Protection Agency (the "EPA") as a Superfund site and placed on the National Priorities List in 1983 because of dioxin contamination on portions of the site. Remediation was conducted by Syntex under the oversight of the EPA and the Missouri Department of Natural Resources. The Company is indemnified by the sellers under its May 2001 asset purchase agreement covering its acquisition of the Verona, Missouri facility for potential liabilities associated with the Superfund site. One of the sellers, in turn, has the benefit of certain contractual indemnification by Syntex in relation to the implementation of the above-described Superfund remedy. In June 2023, in response to a Special Notice Letter received from the EPA in 2022, BCP Ingredients, Inc. ("BCP"), the Company's subsidiary that operates the site, Syntex, EPA, and the State of Missouri entered into an Administrative Settlement Agreement and Order on Consent (“ASAOC”) for a focused remedial investigation/feasibility study ("RI/FS") under which (a) BCP will conduct a source investigation of potential source(s) of releases of 1,4-dioxane and chlorobenzene at a portion of the site and (b) BCP and Syntex will complete a RI/FS to determine a potential remedy, if any is required. Activities under the ASAOC are underway and are expected to continue for some period of time. Separately, in June 2022, the EPA conducted an inspection of BCP’s Verona, Missouri facility (“2022 EPA Inspection”) which was followed by BCP entering into an Administrative Order for Compliance on Consent (“AOC”) with the EPA in relation to its risk management program at the Verona facility. Further, in January 2023, BCP entered into an Amended AOC with the EPA whereby the parties agreed to the extension of certain timelines. BCP timely completed all requirements under the Amended AOC. In November 2023, BCP received a notice from the Environment and Natural Resources Division of the U.S Department of 59 Table of Contents Justice (“DOJ”) primarily related to the 2022 EPA Inspection, which extended the opportunity to discuss alleged violations of Sections 112(r)(7) of the Clean Air Act and regulations in 40 C.F.R. Part 68, commonly known as the Risk Management Plan Rule (“RMP Rule”). BCP participated in such discussions during 2024, and in December 2024, BCP reached a settlement with the EPA and DOJ to resolve these alleged violations. Pursuant to the settlement, which was entered into on January 31, 2025, BCP agreed to: (a) pay a $ 300 civil penalty; (b) invest in a new scrubber system; and (c) spend $ 350 to implement projects benefiting the surrounding community, such as emergency equipment for the local fire department and two vehicles to be used as mobile health clinics. The amount associated with this settlement was consistent with the amount previously accrued as a loss contingency. BCP has completed most of its obligations under this settlement and will continue to take steps to timely complete any remaining items. In addition to the above, from time to time, the Company is a party to various legal proceedings, litigation, claims and assessments. While it is not possible to predict the ultimate disposition of each of these matters, management believes that the ultimate outcome of such matters will not have a material effect on the Company's consolidated financial position, results of operations, liquidity or cash flows. NOTE 16 – FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and the estimated fair values of the Company's financial instruments as defined by ASC 820, "Fair Value Measurement" at December 31, 2025 and 2024 are as follows: Carrying Amount Fair Value Measurements Level 1 Level 2 Level 3 December 31, 2025 Assets: Money market funds (1) $ 1,464 $ 1,464 $ — $ — Rabbi trust funds - current (2) 25 25 — — Rabbi trust funds - non-current (2) 12,773 12,773 — — December 31, 2024 Assets: Money market funds (1) $ 1,040 $ 1,040 $ — $ — Rabbi trust funds - non-current (2) 11,465 11,465 — — (1) Money market funds are categorized as cash equivalents. (2) Rabbi trust funds - current and Rabbi trust funds - non-current are included in "Other current assets" and "Other non-current assets" on the consolidated balance sheets, respectively. The Company's financial instruments also include accounts receivable, accounts payable, and accrued liabilities, which are carried at cost and approximate fair value due to the short-term maturity of these instruments. The carrying value of debt approximates fair value based upon prices of identical or similar instruments in the marketplace, which are considered Level 2 inputs. In addition, non-current assets includes rabbi trust funds related to the Company's deferred compensation plan. The money market and rabbi trust funds are valued using level 1 inputs, as defined by ASC 820, "Fair Value Measurement." NOTE 17 – RELATED PARTY TRANSACTIONS The Company provides services under a contractual agreement to St. Gabriel CC Company, LLC. These services include accounting, information technology, quality control, and purchasing services, as well as operation of the St. Gabriel CC Company, LLC plant. The Company also sells raw materials to St. Gabriel CC Company, LLC. These raw materials are used in the production of finished goods that are, in turn, sold by Saint Gabriel CC Company, LLC to the Company for resale to unrelated parties. As such, the sale of these raw materials to St. Gabriel CC Company, LLC in this scenario lacks economic substance and therefore the Company does not include them in net sales within the consolidated statements of earnings. Payments for the services the Company provided amounted to $ 4,640 , $ 4,425 , and $ 4,363 , respectively, for the years ended December 31, 2025, 2024, and 2023. The raw materials purchased and subsequently sold amounted to $ 39,480 , $ 29,795 , and $ 34,219 , respectively, for the years ended December 31, 2025, 2024, and 2023. These services and raw materials are primarily recorded in cost of goods sold, net of the finished goods received from St. Gabriel CC Company, LLC of $ 32,820 , $ 22,940 , and 60 Table of Contents $ 28,099 , respectively, for the years ended December 31, 2025, 2024, and 2023. At December 31, 2025 and 2024, the Company had receivables of $ 4,225 and $ 3,893 , respectively, recorded in accounts receivable from St. Gabriel CC Company, LLC for services rendered and raw materials sold. At December 31, 2025 and 2024, the Company had payables of $ 3,369 and $ 2,831 , respectively, recorded in accounts payable for finished goods received from St. Gabriel CC Company, LLC. In addition, the Company had payables in the amount of $ 296 , related to non-contractual monies owed to St. Gabriel CC Company, LLC, recorded in accounts payable as of both December 31, 2025 and 2024. NOTE 18 – LEASES The Company has both real estate leases and equipment leases. The main types of equipment leases include forklifts, trailers, printers and copiers, railcars, and trucks. Leases are categorized as both operating leases and finance leases. The Company elected the practical expedient to combine lease and non-lease components and recognizes the combined amount on the consolidated balance sheet. Management determined that since the Company has a centralized treasury function, the parent company would either fund or guarantee a subsidiary's loan for borrowing over a similar term. As such, the Company's management determined it is appropriate to utilize a corporate based borrowing rate for all locations. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. The Company reviews the discount rates quarterly. Based on the Company's risk rating, the Company applied the following discount rates for new leases entered into during 2025: (1) 1 - 2 years, 5.45 % - 5.62 % (2) 3 - 4 years, 6.04 % - 6.21 % (3) 5 - 9 years, 6.38 % - 6.55 % and (4) 10 + years, 7.10 % - 7.27 %. Right of use assets and lease liabilities at December 31, 2025 and 2024 are summarized as follows: Right of use assets 2025 2024 Operating leases $ 14,672 $ 15,320 Finance lease 1,520 1,730 Total $ 16,192 $ 17,050 Lease liabilities - current 2025 2024 Operating leases $ 3,614 $ 3,134 Finance lease 205 194 Total $ 3,819 $ 3,328 Lease liabilities - non-current 2025 2024 Operating leases $ 11,324 $ 12,967 Finance lease 1,544 1,749 Total $ 12,868 $ 14,716 61 Table of Contents For the years ended December 31, 2025, 2024, and 2023, the Company's total lease costs were as follows, which included both amounts recognized in profits or losses during the period and amounts capitalized on the balance sheet, and the cash flows arising from lease transactions: Year ended December 31, 2025 2024 2023 Lease Cost Operating lease cost $ 5,444 $ 5,456 $ 5,307 Finance Lease cost Amortization of ROU asset 210 232 242 Interest on lease liabilities 94 105 115 Total finance lease 304 337 357 Total lease cost $ 5,748 $ 5,793 $ 5,664 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 5,497 $ 5,454 $ 4,757 Operating cash flows from finance leases 94 105 115 Financing cash flows from finance leases 194 216 222 $ 5,785 $ 5,775 $ 5,094 ROU assets obtained in exchange for new operating lease liabilities, net of ROU asset disposals $ 3,358 $ 1,669 $ 6,365 Weighted-average remaining lease term - operating leases 5.91 years 9.03 years 9.33 years Weighted-average remaining lease term - finance leases 7.35 years 8.37 years 9.07 years Weighted-average discount rate - operating leases 6.7 % 7.6 % 7.4 % Weighted-average discount rate - finance leases 5.1 % 5.1 % 5.0 % Rent expense charged to operations under operating lease agreements for 2025, 2024, and 2023 aggregated approximately $ 5,444 , $ 5,456 , and $ 5,307 , respectively. Aggregate future minimum rental payments required under non-cancelable operating and finance leases at December 31, 2025 are as follows: Year 2026 $ 4,769 2027 3,734 2028 2,965 2029 2,497 2030 2,041 Thereafter 4,344 Total undiscounted lease payments 20,350 Less: Present value adjustment ( 3,663 ) Present value of lease liabilities $ 16,687 62 Table of Contents NOTE 19 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES On May 28, 2019, the Company entered into a pay-fixed ( 2.05 %), receive-floating interest rate swap with a notional amount of $ 108,569 and a maturity date of June 27, 2023, which was designated as cash flow hedge. The net interest income related to the interest rate swap contract was $ 1,518 for the year ended December 31, 2023. There was no such income or expense during the years ended December 31, 2025 and 2024 as the interest rate swap was settled on its maturity date of June 27, 2023. The net interest income and expense were recorded in the consolidated statements of earnings under "Interest expense, net." On May 28, 2019, the Company also entered into a pay-fixed ( 0.00 %), receive-fixed ( 2.05 %) cross-currency swap to manage foreign exchange risk related to the Company's net investment in Chemogas, which was designated as net investment hedge. The derivative had a notional amount of $ 108,569 , an effective date of May 28, 2019, and a maturity date of June 27, 2023. The interest income related to the cross-currency swap contract was $ 1,119 for the year ended December 31, 2023. There was no such income or expense during the years ended December 31, 2025 and 2024 as the cross-currency swap was settled on its maturity date of June 27, 2023. The interest income was recorded in the consolidated statements of earnings under "Interest expense, net." The Company settled its derivative instruments on their maturity date of June 27, 2023 and had no other derivatives outstanding as of December 31, 2025. The proceeds from the settlement of the cross-currency swap in the amount of $ 2,740 were classified as investing activities in the Consolidated Statements of Cash Flows for the year ended December 31, 2023. There were no gains and losses on hedging instruments recognized in accumulated other comprehensive income (loss) for the years ended December 31, 2025 and 2024 as the derivative instruments settled on their maturity date of June 27, 2023. Gains and losses on our hedging instruments for the years ended December 31, 2023 were recognized in accumulated other comprehensive income (loss) and categorized as follows: Location within Statements of Comprehensive Income 2023 Cash flow hedge (interest rate swap), net of tax Unrealized loss on cash flow hedge, net $ ( 1,065 ) Net investment hedge (cross-currency swap), net of tax Net foreign currency translation adjustment ( 1,455 ) $ ( 2,520 ) 63 Table of Contents NOTE 20 - QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (In thousands, except per share data) 2025 2024 First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 250,519 $ 255,467 $ 267,558 $ 263,617 $ 239,659 $ 234,081 $ 239,940 $ 240,004 Gross margin 88,168 93,113 95,453 93,899 81,514 82,994 85,361 86,337 Earnings before income taxes 47,940 49,011 52,044 50,035 36,850 41,226 43,893 44,484 Net earnings 37,053 38,278 40,289 39,225 28,986 32,069 33,837 33,583 Basic net earnings per common share $ 1.14 $ 1.18 $ 1.25 $ 1.23 $ 0.90 $ 0.99 $ 1.05 $ 1.05 Diluted net earnings per common share $ 1.13 $ 1.17 $ 1.24 $ 1.21 $ 0.89 $ 0.98 $ 1.03 $ 1.03 64 Table of Contents BALCHEM CORPORATION Valuation and Qualifying Accounts Years Ended December 31, 2025, 2024 and 2023 (In thousands) Allowance for Credit Losses Inventory Reserve Balance - December 31, 2022 $ 1,226 $ 2,640 Additions charged to costs and expenses 37 2,450 Adjustments/deductions (a) ( 355 ) ( 2,627 ) Balance - December 31, 2023 908 2,463 Additions charged to costs and expenses 299 4,123 Adjustments/deductions (a) ( 298 ) ( 2,379 ) Balance - December 31, 2024 909 4,207 (Recovery of)/Additions to costs and expenses ( 97 ) 3,414 Adjustments/deductions (a) 50 ( 4,207 ) Balance - December 31, 2025 $ 862 $ 3,414 (a) Represents write-offs and other adjustments 65 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.