Crane NXT, Co. 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains information about Crane NXT, Co., some of which includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical information or statements about our current con dition. Investors can identify forward-looking statements by the use of terms such as “believes,” “contemplates,” “expects,” “may,” “could,” “should,” “would,” or “anticipates,” other similar phrases, or the negatives of these terms. References herein to “Crane NXT,” “we,” “us” and “our” refer to Crane NXT, Co. and its subsidiaries, including when Crane NXT, Co. was named “Crane Holdings, Co.” unless the context implies otherwise. References herein to “Holdings” refer to Crane Holdings, Co. and its subsidiaries prior to the consummation of the Separation unless the context implies otherwise. On April 3, 2023, Holdings was separated (the “Separation”) into two independent, publicly-traded companies, Crane NXT, Co. and Crane Company (“SpinCo”) through a pro-rata distribution (the “Distribution”) of all the issued and outstanding common stock of SpinCo to the stockholders of Holdings. References to "core sales” exclude currency effects and, where applicable, the first-year impacts of acquisitions and divestitures. Amounts in the following discussion are presented in millions, except employee, share and per share data, or unless otherwise stated. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in identifying underlying growth trends in our business and facilitate comparison of our sales performance, for example, with prior and future periods that are complementary to GAAP metrics. We have based the forward-looking statements relating to our operations on our current expectations, estimates and projections about us and the markets we serve. We caution investors that these statements are not guarantees of future performance and involve risks and uncertainties. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. There are a number of other factors that could cause actual results or outcomes to differ materially from those expressed or implied in the forward-looking statements. Such factors also include, among others: the impact of tariffs and other trade measures; changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations; demand for its products, which is variable and subject to factors beyond its control; risks associated with conducting a substantial portion of its business outside the U.S.; information systems and technology networks failures, breaches in data security, theft of personally identifiable and other information, and non-compliance with its contractual or other legal obligations regarding such information; being unable to identify or complete acquisitions, or to successfully integrate the businesses the Company acquires; fluctuation in the prices of, or disruption in its ability to source, components and raw materials, and delays in the distribution of its products; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow its business as planned; being unable to successfully develop and introduce new products, which would limit its ability to grow and maintain its competitive position; governmental regulations and failure to comply with those regulations; the ability to protect its intellectual property; risks from litigation, claims and investigations, including those related to product liability and warranties, and employee, commercial, intellectual property and environmental matters; risks related to its ability to improve productivity, reduce costs and align manufacturing capacity with customer demand; significant competition in the Company's markets; additional tax expenses or exposures; adverse impacts from intangible asset impairment charges; inadequate or ineffective internal controls; and risks related to the Separation, including not obtaining the intended tax treatment of the Separation transaction, failure of Crane Company to perform under the various transaction agreements and actual or potential conflicts of interest with Crane Company; and other risks noted in reports that we file with the Securities and Exchange Commiss ion, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and subsequent reports and other documents filed with the Se curities and Exchange Commission. We do not undertake any obligation to update or revise any forward-looking statements to reflect any future events or circumstances. 27 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Recent Transactions Credit Facilities In the nine months ended September 30, 2025, we drew down $384.5 million and repaid $413.5 million on our Revolving Facility to fund working capital requirements. We also drew down £300.0 million, or $400.4 million, on the Term Loan to fund the DLR acquisition and repaid $40.9 million. On September 15, 2025, we entered into a commitment for a senior secured 364-day Bridge Facility of $602 million and a Backstop Facility of $831 million. The Backstop Facility was in place until October 7, 2025 when the amendment to the Credit Agreement was ratified. The Bridge Facility is available to fund the Antares Vision acquisition and related transactions until permanent financing is secured. Antares Vision Acquisition On September 12, 2025, Crane NXT entered into definitive agreements to acquire Antares Vision, a publicly traded Italian joint stock company listed on the Italian stock exchange, through a phased transaction. The total enterprise value of Antares Vision, inclusive of equity and net debt, is approximately €445 million. The first phase of the transaction is expected to close in the fourth quarter of 2025 with the final phase of the transaction anticipated in the first half of 2026, subject to customary closing conditions and regulatory approvals. Antares Vision is a global provider of inspection and detection systems that ensure product safety and quality control, as well as track and trace software solutions that help prevent counterfeiting and provides visibility of products throughout the supply chain. The acquisition advances our strategy and expands the Company’s portfolio in growing end markets, including Life Sciences and Food and Beverage. DLR Acquisition On May 1, 2025, we acquired De La Rue Authentication Solutions (“DLR”) for a base purchase price of £300 million . We utilized our Term Loan to fund the acquisition. DLR is a leading global provider of digital and physical security and authentication technologies to governments and brands, and expands our portfolio of authentication solutions. DLR was combined with OpSec as “Crane Authentication” within the Security and Authentication Technologies segment upon close. Restructuring In the second and third quarter of 2025 we initiated restructuring actions as follows: • We recorded $8.5 million of restructuring expense in the SAT segment, predominantly related to severance charges, associated with the integration of the DLR and OpSec businesses. We expect to substantially complete the restructuring program in 2025, with total costs expected to be in the range of $10 million to $15 million. • We recorded $2.3 million of restructuring expense in the CPI segment, predominantly related to severance charges. We will continue to evaluate and align CPI’s cost structure with existing economic conditions which could result in additional actions. Trade Policies and Regulations We continue to monitor developments in global trade policies and tariff regulations. As of November 5, 2025, we expect to mitigate the majority of tariffs on operating profit with pricing and productivity initiatives. The related macroeconomic uncertainty is also affecting demand, primarily in our CPI vending business, which is driving lower sales volumes. See Item 1A, “Risk Factors” for more details. Basis of Presentation See Note 1, “Organization and Basis of Presentation” for more details on financial statement presentation basis. 28 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results from Operations – Three Month Periods Ended September 30, The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and related notes. All comparisons below refer to the third quarter 2025 versus the third quarter 2024 , unless otherwise specified. Three Months Ended September 30, Favorable/(Unfavorable) Change (in millions) 2025 2024 $ % Net sales $ 445.1 $ 403.5 $ 41.6 10.3 % Cost of sales $ 252.5 $ 232.2 $ (20.3) (8.7) % as a percentage of sales 56.7 % 57.5 % Selling, general and administrative $ 107.2 $ 96.3 $ (10.9) (11.3) % as a percentage of sales 24.1 % 23.9 % Restructuring charges 3.5 — (3.5) NM Operating profit $ 81.9 $ 75.0 $ 6.9 9.2 % Operating margin 18.4 % 18.6 % Other income (expense): Interest income 0.3 0.4 (0.1) (25.0) % Interest expense (16.2) (13.4) (2.8) (20.9) % Miscellaneous income (expense), net 0.6 1.3 (0.7) NM Total other expense, net (15.3) (11.7) (3.6) (30.8) % Income before income taxes 66.6 63.3 3.3 5.2 % Provision for income taxes 15.7 16.2 0.5 3.1 % Net income before allocation to noncontrolling interest 50.9 47.1 3.8 8.1 % Less: Noncontrolling interest in subsidiaries’ earnings 0.4 — 0.4 NM Net income attributable to common shareholders $ 50.5 $ 47.1 $ 3.4 7.2 % Sales increased by $41.6 million, or 10.3%, to $445.1 million in 2025. The change in sales included: • sales benefit from the DLR acquisition of $28.3 million, or 7.0%, • favorable foreign currency translation of $7.6 million, or 1.9% driven primarily by the strengthening of the euro, British pound, Swedish krona and Japanese yen against the U.S. dollar, and • core sales increase of $5.7 million, or 1.4%, driven primarily by our SAT segment, partially offset by lower volumes in CPI. Cost of sales increased by $20.3 million, or 8.7%, to $252.5 million in 2025. The increase was driven primarily by the impact of acquisitions in SAT, higher material and other manufacturing costs, and unfavorable foreign currency translation, partially offset by productivity gains and the impact of lower volumes in CPI. Selling, general and administrative expenses increased by $10.9 million, or 11.3%, to $107.2 million in 2025. The increase was driven primarily by the impact of acquisitions in SAT and unfavorable foreign currency translation. Operating profit increased by $6.9 million, or 9.2%, to $81.9 million in 2025. The increase was driven primarily by favorable pricing and productivity gains across both segments, partially offset by the impact of lower volumes in CPI and the dilutive impact of acquisitions. Restructuring charges were largely offset by cost-saving actions. Our effective tax rate for the three months ended September 30, 2025 was lower than the prior year’s comparable period primarily due to the mix of non-U.S. earnings. 29 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Segment Results of Operations - Three Month Periods Ended September 30, Crane Payment Innovations Three Months Ended September 30, Favorable/(Unfavorable) Change (in millions) 2025 2024 $ % Net sales by product line: Payment Acceptance and Dispensing Products $ 181.3 $ 190.9 $ (9.6) (5.0) % Services 35.0 34.0 1.0 2.9 % Total net sales $ 216.3 $ 224.9 $ (8.6) (3.8) % Cost of sales $ 109.2 $ 113.6 $ 4.4 3.9 % as a percentage of sales 50.5 % 50.5 % Selling, general and administrative $ 45.3 $ 46.7 $ 1.4 3.0 % as a percentage of sales 20.9 % 20.8 % Restructuring charges $ 1.1 $ — $ (1.1) NM Operating profit $ 60.7 $ 64.6 $ (3.9) (6.0) % Operating margin 28.1 % 28.7 % Sales decreased by $8.6 million, or 3.8%, to $216.3 million in 2025, driven by lower core sales of $10.1 million, or 4.5%, partially offset by favorable foreign currency translation of $1.5 million, or 0.7%. • Sales of Payment Acceptance and Dispensing Products decreased by $9.6 million, or 5.0%, to $181.3 million in 2025. The decrease was driven by a core sales decline of $11.1 million, or 5.8%, as favorable pricing was more than offset by anticipated lower volumes primarily in vending, partially offset by favorable foreign currency translation of $1.5 million, or 0.8%, reflecting the strengthening of the British pound and Japanese yen against the U.S. dollar. • Service revenue increased by $1.0 million, or 2.9%, to $35.0 million in 2025, driven by favorable pricing. Cost of sales decreased by $4.4 million, or 3.9%, to $109.2 million in 2025, driven by the impact of lower sales volumes. Selling, general and administrative expense decreased by $1.4 million, or 3.0%, to $45.3 million in 2025, driven by cost saving actions. Operating profit decreased by $3.9 million, or 6.0%, to $60.7 million in 2025. The decrease reflected the impact of lower volumes of $9.5 million, or 14.7%, and unfavorable mix of $2.6 million, or 4.0%, partially offset by favorable pricing, net of inflation of $4.1 million, or 6.4%, and productivity gains and net cost saving actions of $4.0 million, or 6.2%. 30 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Security and Authentication Technologies Three Months Ended September 30, Favorable/(Unfavorable) Change (in millions) 2025 2024 $ % Net sales by product line: Banknotes and Security Products $ 168.2 $ 145.4 $ 22.8 15.7 % Authentication Products and Solutions 60.6 33.2 27.4 NM Total net sales $ 228.8 $ 178.6 $ 50.2 28.1 % Cost of sales $ 143.3 $ 118.6 $ (24.7) (20.8) % as a percentage of sales 62.6 % 66.4 % Selling, general and administrative $ 43.8 $ 30.7 $ (13.1) (42.7) % as a percentage of sales 19.1 % 17.2 % Restructuring charges $ 2.4 $ — $ (2.4) NM Operating profit $ 39.3 $ 29.3 $ 10.0 34.1 % Operating margin 17.2 % 16.4 % Sales increased by $50.2 million, or 28.1%, to $228.8 million in 2025, driven by the sales benefit from the DLR acquisition of $28.3 million, or 15.8%, core sales growth of $15.8 million, or 8.8%, and favorable foreign currency translation of $6.1 million or 3.4%. • Banknote and security product sales increased by $22.8 million, or 15.7%, to $168.2 million in 2025. The increase was driven by core sales growth of $16.9 million, or 11.6%, primarily due to higher volumes in U.S. and international markets. Included in the sales increase was favorable foreign currency translation of $5.9 million, or 4.1%, reflecting the strengthening of the euro and Swedish krona against the U.S. dollar. • Authentication products and solutions sales increased by $27.4 million to $60.6 million in 2025, driven by the sales benefit from the DLR acquisition. Cost of sales increased by $24.7 million, or 20.8%, to $143.3 million in 2025, due to the impact of the DLR acquisition of $16.2 million, or 13.7%, acquisition related amortization and fair value step-up of $7.1 million, or 6.0%, and unfavorable foreign currency translation of $4.8 million, or 4.0%. Selling, general and administrative expense increased by $13.1 million, or 42.7%, to $43.8 million in 2025, due to the impact of the DLR acquisition and higher administrative expenses. Operating profit increased by $10.0 million, or 34.1%, to $39.3 million in 2025, reflecting the impact of higher volumes of $5.8 million, or 19.9%, favorable mix of $4.6 million, or 15.7%, and productivity gains of $4.3 million, or 14.8%, partially offset by dilutive impact of the DLR acquisition of $3.1 million, or 10.5%, predominantly due to acquisition related amortization and fair value step-up. 31 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results from Operations – Nine Month Periods Ended September 30, The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and related notes. All comparisons below refer to the first nine months of 2025 versus the first nine months of 2024, unless otherwise specified. Nine Months Ended September 30, Favorable/(Unfavorable) Change (in millions) 2025 2024 $ % Net sales $ 1,179.8 $ 1,087.7 $ 92.1 8.5 % Cost of sales $ 678.2 $ 603.1 $ (75.1) (12.5) % as a percentage of sales 57.5 % 55.4 % Selling, general and administrative $ 323.7 $ 283.9 $ (39.8) (14.0) % as a percentage of sales 27.4 % 26.1 % Restructuring charges $ 10.8 $ 2.7 $ (8.1) NM Operating profit $ 167.1 $ 198.0 $ (30.9) (15.6) % Operating margin 14.2 % 18.2 % Other income (expense): Interest income 0.7 1.4 (0.7) (50.0) % Interest expense (44.1) (35.7) (8.4) (23.5) % Miscellaneous income, net 3.8 1.7 2.1 NM Total other expense, net (39.6) (32.6) (7.0) (21.5) % Income before income taxes 127.5 165.4 (37.9) (22.9) % Provision for income taxes 29.9 38.9 9.0 23.1 % Net income before allocation to noncontrolling interest 97.6 126.5 (28.9) (22.8) % Less: Noncontrolling interest in subsidiaries’ earnings 0.5 — 0.5 NM Net income attributable to common shareholders $ 97.1 $ 126.5 $ (29.4) (23.2) % Sales increased by $92.1 million, or 8.5%, to $1,179.8 million in 2025. The change in sales included: • sales benefit from the DLR and OpSec acquisitions of $89.4 million, or 8.2%, • core sales decline of $10.2 million, or 0.9%, driven by lower volumes in CPI, and • favorable foreign currency translation of $12.9 million, or 1.2%, driven by the strengthening of the euro and British pound against the U.S. dollar. Cost of sales increased by $75.1 million, or 12.5%, to $678.2 million in 2025. The increase was driven by the impact of the DLR acquisition in SAT, under absorption of manufacturing overhead in the Currency business, unfavorable mix in CPI and unfavorable foreign currency translation, partially offset by the impact of lower volumes in CPI and productivity gains across both segments. Selling, general and administrative expenses increased by $39.8 million, or 14.0%, to $323.7 million in 2025. The increase was driven by the impact of the DLR acquisition in SAT. Operating profit decreased by $30.9 million, or 15.6%, to $167.1 million in 2025. The decrease was driven by the impact of lower volumes in CPI, the dilutive impact of the DLR acquisition in SAT, under absorption of manufacturing overhead, higher transaction related expenses and unfavorable mix in CPI, partially offset by productivity gains across both segments. Our effective tax rate for the nine months ended September 30, 2025 was higher than the prior year’s comparable period primarily due to the mix of non-U.S earnings. 32 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Segment Results of Operations - Nine Month Periods Ended September 30, Crane Payment Innovations Nine Months Ended September 30, Favorable/(Unfavorable) Change (in millions) 2025 2024 $ % Net sales by product line: Payment Acceptance and Dispensing Products $ 528.3 $ 557.9 $ (29.6) (5.3) % Services 102.3 100.4 1.9 1.9 % Total net sales $ 630.6 $ 658.3 $ (27.7) (4.2) % Cost of sales $ 324.7 $ 333.0 $ 8.3 2.5 % as a percentage of sales 51.5 % 50.6 % Selling, general and administrative $ 144.2 $ 143.9 $ (0.3) (0.2) % as a percentage of sales 22.9 % 21.9 % Restructuring charges $ 2.3 $ 2.7 $ 0.4 14.8 % Operating profit $ 159.4 $ 178.7 $ (19.3) (10.8) % Operating margin 25.3 % 27.1 % Sales decreased by $27.7 million, or 4.2%, to $630.6 million in 2025, driven by lower core sales of $31.1 million, or 4.7%, partially offset by favorable foreign currency translation of $3.4 million, or 0.5%. • Sales of Payment Acceptance and Dispensing Products decreased $29.6 million, or 5.3%, to $528.3 million in 2025. The decrease reflected lower core sales of $33.0 million, or 5.9%, as favorable pricing was more than offset by anticipated lower volumes primarily in gaming and vending, partially offset by favorable foreign currency translation of $3.4 million, or 0.6%, reflecting the strengthening of the British pound and Japanese yen against the U.S. dollar. • Service revenue increased by $1.9 million, or 1.9%, to $102.3 million in 2025, driven by favorable pricing. Cost of sales decreased by $8.3 million, or 2.5%, to $324.7 million in 2025, driven by the impact of lower sales volumes and productivity gains, partially offset by unfavorable mix, higher material and other manufacturing costs and unfavorable foreign currency translation. Selling, general and administrative expense increased by $0.3 million, or 0.2%, to $144.2 million in 2025, driven by higher administrative costs largely offset by cost-saving actions. Operating profit decreased by $19.3 million, or 10.8%, to $159.4 million in 2025. The decrease reflected the impact of lower volumes of $25.4 million, or 14.2%, unfavorable mix of $12.9 million, or 7.2%, partially offset by productivity gains of $8.5 million, or 4.7%, and the impact of cost saving actions of $7.7 million, or 4.3%. 33 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Security and Authentication Technologies Nine Months Ended September 30, Favorable/(Unfavorable) Change (in millions) 2025 2024 $ % Net sales by product line: Banknotes and Security Products $ 405.1 $ 372.9 $ 32.2 8.6 % Authentication Products and Solutions 144.1 56.5 87.6 NM Net sales $ 549.2 $ 429.4 $ 119.8 27.9 % Cost of sales $ 353.5 $ 270.1 $ (83.4) (30.9) % as a percentage of sales 64.4 % 62.9 % Selling, general and administrative $ 127.5 $ 85.8 $ (41.7) (48.6) % as a percentage of sales 23.2 % 20.0 % Restructuring charges $ 8.5 $ — $ (8.5) NM Operating profit $ 59.7 $ 73.5 $ (13.8) (18.8) % Operating margin 10.9 % 17.1 % Sales increased by $119.8 million, or 27.9%, to $549.2 million in 2025, reflecting the sales benefit from the OpSec and DLR acquisitions of $89.4 million, or 20.8%, higher core sales of $20.9 million, or 4.9%, and favorable foreign currency translation of $9.5 million, or 2.2%. • Banknote and security product sales increased by $32.2 million, or 8.6%, to $405.1 million in 2025, reflecting higher core sales in both U.S. and international markets, and favorable foreign currency translation, reflecting the strengthening of the euro and Swedish krona against the U.S. dollar. • Authentication products and solutions sales increased by $87.6 million to $144.1 million in 2025, driven by the sales benefit from acquisitions. Cost of sales increased by $83.4 million, or 30.9%, to $353.5 million in 2025, due to the impact of the OpSec and DLR acquisitions of $55.8 million, or 20.6%, acquisition related amortization and fair value step-up, under absorption of manufacturing overhead related to the planned equipment shutdown in the first quarter of 2025, unfavorable foreign currency translation, partially offset by productivity gains and the impact of higher volumes. Selling, general and administrative expense increased by $41.7 million, or 48.6%, to $127.5 million in 2025, due to the impact of acquisitions. Operating profit decreased by $13.8 million, or 18.8%, to $59.7 million in 2025, reflecting the dilutive impact of the OpSec and DLR acquisitions due to acquisition related amortization and fair value step-up of $16.4 million, or 22.4%, higher manufacturing costs primarily due to the under absorption of manufacturing overhead, net of favorable pricing of $12.2 million, or 16.6%, restructuring charges of $8.5 million, or 11.6%, partially offset by productivity gains of $12.5 million, or 17.0%, the impact of higher volumes of $5.0 million, or 6.8% and favorable mix of $4.5 million, or 6.1%. 34 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources Nine Months Ended September 30, (in millions) 2025 2024 Net cash provided by (used for): Operating activities $ 135.7 $ 133.0 Investing activities (422.7) (304.4) Financing activities 293.3 115.8 Effect of exchange rates on cash, cash equivalents and restricted cash 15.1 2.4 Increase (decrease) in cash, cash equivalents and restricted cash $ 21.4 $ (53.2) Our operating philosophy is to deploy cash provided from operating activities, when appropriate, to provide value to stockholders by reinvesting in existing businesses, by making acquisitions that will strengthen and complement our portfolio; by divesting businesses that are no longer strategic or aligned with our portfolio and where such divestitures can generate capacity for strategic investments and initiatives that further optimize our portfolio; by paying dividends and repaying prepayable debt. At any given time, and from time to time, we may be evaluating one or more of these opportunities, although we cannot assure you if or when we will consummate any such transactions. Our current cash balance, together with cash we expect to generate from future operations along with borrowings available under the Credit Agreement, is expected to be sufficient to finance our short- and long-term capital requirements. In the nine months ended September 30, 2025, we drew down $384.5 million and repaid $413.5 million on our Revolving Facility to support working capital needs. We also drew down £300.0 million, or $400.4 million, on the Term Loan to fund the DLR acquisition and repaid $40.9 million. Operating Activities Cash provided by operating activities was $135.7 million in the first nine months of 2025, compared with $133.0 million in the comparable period last year. The increase in cash provided by operating activities was primarily driven by lower working capital requirements. Investing Activities Cash used for investing activities primarily consists of cash used for capital expenditures and acquisitions. Capital expenditures are made primarily for increasing capacity, replacing equipment, supporting new product development, and improving information systems. Cash used for investing activities was $422.7 million in the first nine months of 2025, compared with $304.4 million in the comparable period last year. The increase in cash used for investing activities was primarily driven by the payment for the acquisition of DLR. Financing Activities Cash provided by financing activities consists primarily of dividend payments to shareholders, repayments of indebtedness, and proceeds from our credit facilities. Cash provided by financing activities was $293.3 million during the first nine months of 2025, compared with $115.8 million in the comparable period last year. The increase was primarily driven by higher net proceeds from the Term Loan used to fund the acquisition of DLR, partially offset by net payments on the Revolving Facility in the first nine month of 2025 compared to net proceeds from Revolving Facility during the same period in 2024. Recent Accounting Pronouncements Information regarding new accounting pronouncements is included in Note 1 to our Unaudited Condensed Consolidated Financial Statements. 35 Item 3. Quantitative and Qualitative Disclosures About Market Risk There have been no material changes in the information called for by this item since the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2024.