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Item 2. Management’s Discussion and Analysis

2025-10-30 compared with 2025-07-31 · 74 added, 73 removed, 130 unchanged (53% of the section changed)

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Important factors that could cause actual events to vary from our predictions include those discussed below under the heading “Risk Factors.” We assume no obligation to update our forward-looking statements to reflect new information or developments.

We urge readers to review carefully the risk factors described in the other documents that we file with the Securities and Exchange Commission ("SEC").

We urge readers to review carefully the risk factors described in the other documents that we file with the SEC.

You can read these documents at www.sec.gov.

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Critical Accounting Policies and Estimates

Our critical accounting policies involving the more significant estimates and judgments used in the preparation of our financial statements as of June 28, 2025 remain unchanged from December 28, 2024.

Our critical accounting policies involving the more significant estimates and judgments used in the preparation of our financial statements as of September 27, 2025 remain unchanged from December 28, 2024.

Please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 28, 2024, filed with the SEC on February 20, 2025 for details on these critical accounting policies.

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There are no recent accounting standards that impact the unaudited condensed consolidated financial statements.

Results of Operations—For the Fiscal Quarter and Fiscal Year-to-Date Period Ended June 28, 2025, Compared to the Fiscal Quarter and Fiscal Year-to-Date Period Ended June 29, 2024

Results of Operations—For the Fiscal Quarter and Fiscal Year-to-Date Period Ended September 27, 2025, Compared to the Fiscal Quarter and Fiscal Year-to-Date Period Ended September 28, 2024

The following table provides operating information as a percentage of revenues for the periods indicated:

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Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Revenues 100.0 % 100.0 % 100.0 % 100.0 %

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Net income 6.2 % 6.8 % 7.5 % 6.2 %

Fiscal Quarter Ended June 28, 2025, Compared to the Fiscal Quarter Ended June 29, 2024

Rev enues increased by $15.5 million, or 9.0%, to $186.9 million for the second quarter of fiscal 2025 from $171.4 million for the second quarter of fiscal 2024.

Utilization increased to 76% for the second quarter of fiscal 2025 from 74% for the second quarter of fiscal 2024, while consultant headcount decreased to 937 at the end of the second quarter of fiscal 2025 from 968 at the end of the second quarter of fiscal 2024.

Fiscal Quarter Ended September 27, 2025, Compared to the Fiscal Quarter Ended September 28, 2024

Rev enues increased by $18.2 million, or 10.8%, to $185.9 million for the third quarter of fiscal 2025 from $167.7 million for the third quarter of fiscal 2024.

Utilization increased to 77% for the third quarter of fiscal 2025 from 76% for the third quarter of fiscal 2024, while consultant headcount decreased to 968 at the end of the third quarter of fiscal 2025 from 978 at the end of the third quarter of fiscal 2024.

Overall, revenues outside of the U.S.

represented approxim ately 19% of net revenues for each of the second quarters of fiscal 2025 and fiscal 2024.

Revenues derived from fixed-price projects decreased to 16% of net revenues for the second quarter of fiscal 2025 compared to 17% of net revenues for the second quarter of fiscal 2024.

represented approximately 21% and 19% of net revenues for each of the third quarters of fiscal 2025 and fiscal 2024, respectively.

Revenues derived from fixed-price projects decreased to 17% of net revenues for the third quarter of fiscal 2025 compared to 18% of net revenues for the third quarter of fiscal 2024.

The percentage of revenue derived from fixed-price projects depends largely on the proportion of our revenues derived from our management consulting business, which typically has a higher concentration of fixed-price service contracts.

Costs of Services (exclusive of depreciation and amortization).

Costs of services (exclusive of depreciation and amortization) increased by $3.2 million, or 2.6%, to $128.5 million for the second quarter of fiscal 2025 from $125.3 million for the second quarter of fiscal 2024.

T he increase in costs of services was due to an increase in employee and incentive compensation of $3.7 million , an increase in client reimbursable expenses of $3.3 million, and an increase in external consultants indirect project expenses of $0.4 million, partially offset by a decrease in forgivable loan amortization of $4.2 million .

As a percentage of revenues, costs of services (exclusive of depreciation and amortization) decreased to 68.8% for the second quarter of fiscal 2025 from 73.1% for the second quarter of fiscal 2024.

Selling, General and Administrative Expenses.

Selli ng, general and administrative expenses increased by $3.1 million, or 9.7%, to $35.1 million for the second quarter of fiscal 2025 from $32.0 million for the second quart er of fiscal 2024.

Within this category of expenses, there was a $0.9 million increase in lega l and professional service fees, a $0.8 million increase in c ommissions to non-employee experts, a $0.6 million increase in rent expense, a $0.4 million increase in tra vel and entertainment, and a $0.6 million increase in miscellaneous and other fees, par tially offset by a $0.2 million decrease in employee and incentive compensation for the second quarter of fiscal 2025 as compared to the second quarter of fiscal 2024.

As a percentage of revenues, selling, general and administrative expenses increased to 18.8% for the second quarter of fiscal 2025 from 18.7% for the second quarter of fiscal 2024.

Commissions to our non-employee experts increased to 2.4% of revenues for the second quarter of fiscal 2025 compared to 2.2% of revenues for the second quarter of fiscal 2024.

Prov ision for Income Taxes.

The in come tax provision was $5.0 million and the effective tax rate ("ETR") was 29.2% for the second quarter of fiscal 2025 compared to $3.1 million and 32.0% for the second quarter of fiscal 2024.

The ETR for the second quarter of fiscal 2025 was lower than the second quarter of fiscal 2024 primarily due to the impact of state tax law changes effective for the 2025 tax year as well as a less significant ETR true-up adjustment in the current period compared to the second quarter of fiscal 2024 The impact of these items were partially offset by a tax reserve recognized in the estimated annual effective tax rate of fiscal 2025.

The ETR for the first quarter of fiscal 2025 and 2024 were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the FDII deduction.

Net income increased to $12.1 million for the second quarter of fiscal 2025 from $6.5 million for the second quarter of fiscal 2024.

The net income per diluted share was $1.79 per share for the second quarter of fiscal 2025, compared to $0.94 of net income per diluted share for the second quarter of fiscal 2024.

Weighted average diluted shares outstanding decreased by approximately 158,000 shares to approximately 6,753,000 shares for the second quarter of fiscal 2025 from approximately 6,911,000 shares for the second quarter of fiscal 2024.

The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since June 29, 2024, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units since June 29, 2024.

Fiscal Year-to-Date Period Ended June 28, 2025, Compared to the Fiscal Year-to-Date Period Ended June 29, 2024

Revenues increased by $25.5 million, or 7.4%, to $368.7 million for the fiscal year-to-date period ended June 28, 2025 from $343.2 million for the fiscal year-to-date period ended June 29, 2024.

Utilization increased to 76% for the fiscal year-to-date period ended June 28, 2025 from 74% for the fiscal year-to-date period ended June 29, 2024, while consultant headcount decreased from 968 at the end of the second quarter of fiscal 2024 to 937 at the end of the second quarter of fiscal 2025.

Costs of services (exclusive of depreciation and amortization) increased by $16.3 million, or 14.1%, to $131.5 million for the third quarter of fiscal 2025 from $115.2 million for the third quarter of fiscal 2024.

The increase in costs of services was due to an increase in employee and incentive compensation of $11.8 million, an increase in forgivable loan amortization of $2.3 million, and an increase in client reimbursable indirect project expenses of $2.2 million.

As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 70.7% for the third quarter of fiscal 2025 from 68.7% for the third quarter of fiscal 2024.

Selling, General and Ad ministrative Expenses.

Selling, general and administrative expenses increased by $2.4 million, or 7.7%, to $33.7 million for the third quarter of fiscal 2025 from $31.3 million for the third quarter of fiscal 2024.

Within this category of expenses, there was a $1.2 million increase in legal and professional service fees, a $0.7 million increase in employee and incentive compensation, a $0.6 million increase in travel and entertainment, a $0.3 million increase in rent expense, a $0.2 million increase in miscellaneous and other fees, partially offset by a $0.6 million decrease in commissions to non-employee experts for the third quarter of fiscal 2025 as compared to the third quarter of fiscal 2024.

As a percentage of revenues, selling, general and administrative expenses decreased to 18.1% for the third quarter of fiscal 2025 from 18.6% for the third quarter of fiscal 2024.

Commissions to our non-employee experts decreased to 1.8% of revenues for the third quarter of fiscal 2025 compared to 2.4% of revenues for the third quarter of fiscal 2024.

Provision for Income Taxes.

The income tax provision was $4.8 million and the ETR was 29.3% for the third quarter of fiscal 2025 compared to $4.6 million and 28.7% for the third quarter of fiscal 2024.

The ETR for the third quarter of fiscal 2025 was higher than the third quarter of fiscal 2024 primarily due to a decreased benefit related to share-based compensation, a remeasurement of deferred tax assets related to changes in current-year state apportionment, and an increase to a prior year tax reserve.

The increase was partially offset by the impact of state tax law changes effective for fiscal 2025.

The ETR for the third quarter of fiscal 2025 and 2024 were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the Foreign-Derived Intangible Income (“FDII”) deduction.

Net income remained relatively unchanged at $11.5 million for the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024.

The net income per diluted share was $1.73 per share for the third quarter of fiscal 2025, compared to $1.67 of net income per diluted share for the third quarter of fiscal 2024.

Weighted average diluted shares outstanding decreased by approximately 222,000 shares to approximately 6,621,000 shares for the third quarter of fiscal 2025 from approximately 6,843,000 shares for the third quarter of fiscal 2024.

The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since September 28, 2024, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units since September 28, 2024.

Fiscal Year-to-Date Period Ended September 27, 2025, Compared to the Fiscal Year-to-Date Period Ended September 28, 2024

Revenues increased by $43.6 million, or 8.5%, to $554.6 million for the fiscal year-to-date period ended September 27, 2025 from $511.0 million for the fiscal year-to-date period ended September 28, 2024.

Utilization increased to 76% for the fiscal year-to-date period ended September 27, 2025 from 75% for the fiscal year-to-date period ended September 28, 2024, while consultant headcount decreased from 978 at the end of the third quarter of fiscal 2024 to 968 at the end of the third quarter of fiscal 2025.

Overall, revenues outside of the U.S.

represented approximately 18% of net revenues for the fiscal year-to-date periods ended June 28, 2025 and June 29, 2024.

Revenues derived from fixed-price projects decreased to 16% of net revenues for the

fiscal year-to-date periods ended June 28, 2025 compared to 17% of net revenues for the second quarter of fiscal 2024.

represented approximately 19% and 18% of net revenues for the fiscal year-to-date periods ended September 27, 2025 and September 28, 2024, respectively.

Revenues derived from fixed-price projects decreased to 16% of net revenues for the fiscal year-to-date periods ended September 27, 2025 compared to 18% of net revenues for the third quarter of fiscal 2024.

Costs of Services (exclusive of depreciation and amortization).

Costs of services (exclusive of depreciation and amortization) increased by $4.7 million, or 1.9%, to $248.9 million for the fiscal year-to-date period ended June 28, 2025 from $244.2 million for the fiscal year-to-date period ended June 29, 2024.

The increase in costs of services was due to an increase of $10.5 million in employee compensation and fringe benefit costs, an increase of $2.7 million in client reimbursable expenses, and an increase of $0.7 million in external consultants indirect project expenses, partially offset by a decrease in forgivable loan amortization of $9.2 million.

As a percentage of revenues, costs of services (exclusive of depreciation and amortization) decreased to 67.5% for the fiscal year-to-date period ended June 28, 2025 from 71.1% for the fiscal year-to-date period ended June 29, 2024.

Costs of services (exclusive of depreciation and amortization) increased by $21.0 million, or 5.8%, to $380.4 million for the fiscal year-to-date period ended September 27, 2025 from $359.4 million for the fiscal year-to-date period ended September 28, 2024.

The increase in costs of services was due to an increase of $22.5 million in employee compensation and fringe benefit costs, an increase of $5.4 million in client reimbursable indirect project expenses, partially offset by a decrease in forgivable loan amortization of $6.9 million.

As a percentage of revenues, costs of services (exclusive of depreciation and amortization) decreased to 68.6% for the fiscal year-to-date period ended September 27, 2025 from 70.3% for the fiscal year-to-date period ended September 28, 2024.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses increased by $5.1 million, or 8.2%, to $67.6 million for the fiscal year-to-date period ended June 28, 2025 from $62.5 million for the fiscal year-to-date period ended June 29, 2024.

Within this category of expenses, there was a $1.8 million increase in lega l and professional service fees, $0.9 million increase in rent expense, a $0.8 million increase in commissions to our non-employee experts, $0.6 million increase in employee compensation and fringe benefit costs, a $0.6 million increase in travel and entertainment expense, and a $0.4 million increase in miscellaneous and other fees for the fiscal year-to-date period ended June 28, 2025 as compared to the fiscal year-to-date period ended June 29, 2024.

As a percentage of revenues, selling, general and administrative expenses increased to 18.3% for the fiscal year-to-date period ended June 28, 2025 from 18.2% for the fiscal year-to-date period ended June 29, 2024.

Commissions to our non-employee experts increased to 2.3% of revenues for the fiscal year-to-date period ended June 28, 2025 compared to 2.2% of revenues for the fiscal year-to-date period ended June 29, 2024.

Selling, general and administrative expenses increased by $7.5 million, or 8.0%, to $101.3 million for the fiscal year-to-date period ended September 27, 2025 from $93.8 million for the fiscal year-to-date period ended September 28, 2024.

Within this category of expenses, there was a $2.8 million increase in legal and professional service fees, $1.4 million increase in rent expense, $1.2 million increase in employee compensation and fringe benefit costs, a $1.3 million increase in travel and entertainment expense, and a $0.8 million increase in miscellaneous and other fees for the fiscal year-to-date period ended September 27, 2025 as compared to the fiscal year-to-date period ended September 28, 2024.

As a percentage of revenues, selling, general and administrative expenses decreased to 18.3% for the fiscal year-to-date period ended September 27, 2025 from 18.4% for the fiscal year-to-date period ended September 28, 2024.

Commissions to our non-employee experts decreased to 2.1% of revenues for the fiscal year-to-date period ended September 27, 2025 compared to 2.3% of revenues for the fiscal year-to-date period ended September 28, 2024.

Provision for Income Taxes.

The income tax provision was $11.6 million and the ETR was 27.9% for the fiscal year-to-date period ended June 28, 2025, compared to $8.4 million and 29.3% for the fiscal year-to-date period ended June 29, 2024.

The ETR for the fiscal year-to-date period ended June 28, 2025 was lower than the fiscal year-to-date period ended June 29, 2024 primarily due to the impact of state tax law changes effective for the 2025 tax year and an increased benefit related to share-based compensation and the FDII deduction.

The impact of these items were partially offset by a tax reserve recognized in the estimated annual effective tax rate of fiscal 2025.

The ETR for the fiscal year-to-date periods ended June 28, 2025 and June 29, 2024 were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the FDII deduction.

Net income increased by $9.9 million to $30.1 million for the fiscal year-to-date period ended June 28, 2025 from $20.2 million for the fiscal year-to-date period ended June 29, 2024.

The diluted net income per share was $4.42 for the fiscal year-to-date period ended June 28, 2025, compared to diluted net income per share of $2.90 for the fiscal year-to-date period ended June 29, 2024.

Weighted average diluted shares outstanding decreased by approximately 154,000 to approximately 6,807,000 shares for the fiscal year-to-date period ended June 28, 2025 from approximately 6,961,000 shares for the fiscal year-to-date period ended June 29, 2024.

The income tax provision was $16.4 million and the ETR was 28.3% for the fiscal year-to-date period ended September 27, 2025, compared to $13.0 million and 29.1% for the fiscal year-to-date period ended September 28, 2024.

The ETR for the fiscal year-to-date period ended September 27, 2025 was lower than the fiscal year-to-date period ended September 28, 2024 primarily due to the impact of state tax law changes effective for fiscal 2025, partially offset by the remeasurement of deferred tax assets and an increase to a prior year tax reserve, both noted above.

The ETR for the current and prior fiscal year-to-date periods were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the FDII deduction.

Net income increased by $9.9 million to $41.6 million for the fiscal year-to-date period ended September 27, 2025 from $31.7 million for the fiscal year-to-date period ended September 28, 2024.

The diluted net income per share was $6.16 for the fiscal year-to-date period ended September 27, 2025, compared to diluted net income per share of $4.57 for the fiscal year-to-date period ended September 28, 2024.

Weighted average diluted shares outstanding decreased by approximately 177,000 shares to approximately 6,745,000 shares for the fiscal year-to-date period ended September 27, 2025 from approximately 6,922,000 shares for the fiscal year-to-date period ended September 28, 2024.

Liquidity and Capital Resources

Fiscal Year-to-Date Period Ended June 28, 2025

Fiscal Year-to-Date Period Ended September 27, 2025

We believe that our current cash, cash equivalents, cash generated from operations, and amounts available under our revolving credit facility will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months.

As of June 28, 2025, we had $19.4 million of cash and cash equivalents and $126.5 million of borrowing capacity under our revolving credit facility.

During the fiscal year-to-date period ended June 28, 2025, cash and cash equivalents decreased by $7.3 million.

As of September 27, 2025, we had $22.5 million of cash and cash equivalents and $101.1 million of borrowing capacity under our revolving credit facility.

During the fiscal year-to-date period ended September 27, 2025, cash and cash equivalents decreased by $4.2 million.

We completed the period with cash and cash equivalents of $22.5 million.

The principal drivers of the decrease of cash and cash equivalents were the payment of a significant portion of our fiscal 2024 performance bonuses in the first quarter of fiscal 2025, forgivable loan advances, repurchase of shares, and the payment of dividends, offset by net borrowings of $95.0 million.

At June 28, 2025, $5.2 million of our cash and cash equivalents was held within the U.S.

At September 27, 2025, $2.5 million of our cash and cash equivalents was held within the U.S.

We have sufficient sources of liquidity in the U.S., including cash flow from operations and availability on our revolving credit facility to fund U.S.

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Sources and Uses of Cash.

During the fiscal year-to-date period ended June 28, 2025, net cash used in operating activities was $74.1 million.

Net income was $30.1 million for the fiscal year-to-date period ended June 28, 2025.

Uses of cash for operating activities included a decrease in accounts payable, accrued expenses, and other liabilities of $80.2 million, primarily due to the payment of a significant portion of our fiscal 2024 performance bonuses, an increase in forgivable loans for the period of $26.3 million which was primarily driven by $40.3 million of forgivable loan issuances, net of repayments, offset by $14.0 million of forgivable loan amortization, an increase of $16.5 million in unbilled receivables, a $9.4 million decrease in lease liabilities, and a $0.7 million increase in prepaid expenses and other current assets, and other assets.

Partially offsetting these uses of cash was an increase of $6.0 million in incentive cash awards payable and a decrease of $5.2 million in accounts receivable.

Non-cash items included right-of-use amortization of $7.7 million, depreciation and amortization expense of $6.9 million, and share-based compensation expenses of $2.4 million.

During the fiscal year-to-date period ended June 28, 2025, net cash used in investing activities was $2.2 million, which consisted of capital expenditures, primarily related to computer equipment.

During the fiscal year-to-date period ended June 28, 2025, net cash provided by financin g activities was $67.2 million, primarily as a result of net borrowings under the revolving credit facility of $120.0 million.

Offsetting this increase in cash provided by financing activities were repurchases of common stock of $43.2 million, payment of cash dividends and dividend equivalents of $6.8 million , and tax withholding payments reimbursed by restricted shares on vesting o f $2.8 million.

During the fiscal year-to-date period ended September 27, 2025, net cash used in operating activities was $37.6 million.

Net income was $41.6 million for the fiscal year-to-date period ended September 27, 2025.

Uses of cash for operating activities included an increase in forgivable loans for the period of $45.8 million which was primarily driven by $68.4 million of forgivable loan issuances, net of repayments, offset by $22.6 million of forgivable loan amortization, a decrease in accounts payable, accrued expenses, and other liabilities of $35.6 million, primarily due to the payment of a significant portion of our fiscal 2024 performance bonuses, an increase of $32.8 million in unbilled receivables, and a $14.2 million decrease in lease liabilities.

Partially offsetting these uses of cash was a decrease of $12.6 million in accounts receivable, an increase of $8.9 million in incentive cash awards payable, and a $1.6 million decrease in prepaid expenses, other current assets, and other assets.

Non-cash items included right-of-use amortization of $11.6 million, depreciation and amortization expense of $10.4 million, and share-based compensation expenses of $3.9 million, and unrealized foreign currency remeasurement losses, net of $0.3 million.

During the fiscal year-to-date period ended September 27, 2025, net cash used in investing activities was $2.8 million, which consisted of capital expenditures, primarily related to computer equipment.

During the fiscal year-to-date period ended September 27, 2025, net cash provided by financing activities was $34.9 million, primarily as a result of net borrowings under the revolving credit facility of $95.0 million.

Offsetting this increase in cash provided by financing activities were repurchases of common stock of $47.1 million, payment of cash dividends and dividend equivalents of $10.1 million, and tax withholding payments reimbursed by restricted shares on vesting of $2.9 million.

Lease Commitments

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Certain of our operating leases have terms that impose asset retirement obligations due to office modifications or the periodic redecoration of the premises, which are included in deferred compensation and other non-current liabilities on our condensed consolidated balance sheets and are recorded at a value based on their estimated discounted cash flows.

At June 28, 2025, we expect to incur asset retirement obligation or redecoration obligation costs over the next twelve months of $0.2 million.

At September 27, 2025, we expect to incur asset retirement obligation or redecoration obligation costs over the next twelve months of $0.2 million.

The remainder of our asset retirement obligations and redecoration obligations are approximately $3.0 million and are expected to be paid between fiscal year 2026 and fiscal year 2035 when the underlying leases terminate or when the respective lease agreement requires redecoration.

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Any indebtedness outstanding under the revolving credit facility may become immediately due upon the occurrence of stated events of default, including our failure to pay principal, interest or fees, or upon the breach of any covenant.

As of June 28, 2025, we were in compliance with the covenants of the Credit Agreement.

There was $120.0 million in borrowings outstanding under the revolving credit facility as of June 28, 2025 and no borrowings outstanding as of December 28, 2024.

As of June 28, 2025, the amount available under the revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $3.5 million.

As of September 27, 2025, we were in compliance with the covenants of the Credit Agreement.

There was $95.0 million in borrowings outstanding under the revolving credit facility as of September 27, 2025 and no borrowings outstanding as of December 28, 2024.

As of September 27, 2025, the amount available under the revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $3.9 million.

Forgivable Loans

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Our Amended and Restated 2006 Equity Incentive Plan, as amended (the "2006 Equity Plan"), authorizes the grant of a variety of incentive and performance equity awards to our directors, employees and non-employee experts, including stock options, shares of restricted stock, restricted stock units, and other equity awards.

Our long-term incentive program, or "LTIP," is used as a framework for equity grants made under our 2006 Equity Plan to our senior corporate leaders, practice leaders, and key revenue generators.

Our long-term incentive program, (the “LTIP”) is used as a framework for equity grants made under our 2006 Equity Plan to our senior corporate leaders, practice leaders, and key revenue generators.

The equity awards granted under the LTIP include stock options, time-vesting restricted stock units, and performance-vesting restricted stock units.

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We may repurchase shares under this program in open market purchases (including through any Rule 10b5-1 plan adopted by us) or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations.

During the fiscal quarter and the fiscal year-to-date period ended June 28, 2025, we repurchased and retired 230,673 shares under our share repurchase program at an average price per share of $187.06.

During the fiscal quarter and fiscal year-to-date period ended June 29, 2024, we repurchased and retired 140,497 and 206,379 shares, respectively, under our share repurchase program at an average price per share of $171.58 and $161.59, respectively.

We had approximately $14.9 million available for future repurchases under our share repurchase program as of June 28, 2025.

During the fiscal quarter and the fiscal year-to-date period ended September 27, 2025, we repurchased and retired 21,532 and 252,205, respectively, under our share repurchase program at an average price per share of $185.74 and $186.95, respectively.

During the fiscal quarter ended September 28, 2024, we did not repurchase any shares under our share repurchase program.

For the fiscal year-to-date period ended September 28, 2024, we repurchased and retired 206,379 shares under our share repurchase program at an average price per share $161.59.

We had approximately $10.9 million available for future repurchases under our share repurchase program as of September 27, 2025.

We plan to finance future repurchases with available cash, cash from future operations, and borrowings available under our revolving credit facility.

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Although we anticipate paying regular quarterly dividends on our common stock for the foreseeable future, the declaration, timing and amounts of any such dividends remain subject to the discretion of our Board of Directors.

During the fiscal quarter and fiscal year-to-date period ended June 28, 2025, we paid dividends and dividend equivale nts of $3.4 million and $6.9 million, respectively.

During the fiscal quarter and fiscal year-to-date period ended June 29, 2024, we paid dividends and dividend equivalents of $2.9 million and $6.0 million, respectively.

During the fiscal quarter and fiscal year-to-date period ended September 27, 2025, we paid dividends and dividend equivale nts of $3.2 million and $10.1 million, respectively.

During the fiscal quarter and fiscal year-to-date period ended September 28, 2024, we paid dividends and dividend equivalents of $2.9 million and $8.9 million, respectively.

Impact of Inflation

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Many of the other above activities are discretionary in nature.

For example, capital expenditures can be deferred, acquisitions can be forgone, and share repurchase programs and regular dividends can be suspended.

As such, our operating model provides flexibility with respect to the deployment of cash flow from

For example, capital expenditures can be deferred, acquisitions can be forgone, and share repurchases and regular dividends can be

As such, our operating model provides flexibility with respect to the deployment of cash flow from operations.

Given this flexibility, we believe that our cash flows from operations, supplemented by cash on hand and borrowings under our revolving credit facility (as necessary), will provide adequate cash to fund our long-term cash needs from normal operations for at least the next twelve months.

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Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes in our exposure to market risk during the fiscal quarter ended June 28, 2025.

There have been no material changes in our exposure to market risk during the fiscal quarter ended September 27, 2025.

For information regarding our exposure to certain market risks, see Part II, Item 7A, "Quantitative and Qualitative Disclosures about Market Risk” of our 2024 Form 10-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis