What changed in this filing

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Item 1. Financial Statements

2026-05-05 compared with 2025-11-05 · 197 added, 235 removed, 525 unchanged (45% of the section changed)

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year ended December 31, 2025 , included in our annual report filed on Form 10-K.

results of operations for the nine months ended September 30, 2025 , are not necessarily indicative of the results to be expected

results of operations for the three months ended March 31, 2026 , are not necessarily indicative of the results to be expected

for the entire fiscal year.

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AND SUBSIDIARIES

BALANCE SHEETS

thousands except share and per share data)

September 30, 2025

CONSOLIDATED BALANCE SHEETS

(In thousands except share and per share data)

March 31, 2026

December 31, 2025

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Lease liabilities, less current portion

Deferred tax liabilities

Interparfums, Inc.

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authorized 1,000,000 shares;

stock, $ .001 par;

Common stock, $ .001 par;

authorized 100,000,000 shares;

outstanding 32,064,728 and 32,110,170 shares at September 30, 2025 and December 31, 2024 , respectively

outstanding 32,025,781 and 32,067,285 shares at March 31, 2026 and December 31, 2025 , respectively

Additional paid-in capital

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Accumulated other comprehensive loss

Treasury stock, at cost, 8,960,587 and 9,981,665 shares at September 30, 2025 and December 31, 2024 , respectively

Treasury stock, at cost, 9,078,844 and 9,032,840 shares at March 31, 2026 and December 31, 2025 , respectively

Total Interparfums, Inc.

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Total liabilities and equity

notes to consolidated financial statements.

See notes to consolidated financial statements.

INTERPARFUMS, INC.

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Three Months Ended

Nine Months Ended

September 30,

Cost of sales

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Loss on foreign currency

Interest and investment (income) loss

Other (income) loss

Interest and investment income

Nonoperating Income (Expense)

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Three Months Ended

Nine Months Ended

September 30,

Comprehensive income:

Other comprehensive income:

Net derivative instrument (loss) gain, net of tax

Net derivative instrument gain, net of tax

Transfer from OCI into earnings

Pension benefits, net of tax

Translation adjustments, net of tax

Foreign currency translation adjustments

Comprehensive income

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Other comprehensive income:

Net derivative instrument (loss) gain, net of tax

Net derivative instrument gain, net of tax

Pension benefits, net of tax

Translation adjustments, net of tax

Foreign currency translation adjustments

Comprehensive income attributable to the noncontrolling interests

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Three Months Ended

Nine Months Ended

September 30,

Common stock, beginning and end of period

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Share-based compensation

Purchase/Transfer of subsidiary shares

Additional paid-in capital, end of period

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Accumulated other comprehensive loss, beginning of period

Foreign currency translation adjustment, net of tax

Foreign currency translation adjustment

Transfer from other comprehensive income into earnings

Pension benefits, net of tax

Net derivative instrument gain (loss), net of tax

Net derivative instrument gain, net of tax

Accumulated other comprehensive loss, end of period

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Noncontrolling interest, beginning of period

Foreign currency translation adjustment, net of tax

Foreign currency translation adjustment

Pension benefits, net of tax

Net derivative instrument gain (loss), net of tax

Net derivative instrument gain, net of tax

Share-based compensation

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(In thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

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Income taxes, net

Net cash provided by operating activities

Net cash provided by (used in) operating activities

Cash flows from investing activities:

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Proceeds from loans payable, bank

Proceeds of issuance of long-term debt

Repayment of long-term debt

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Recent Agreements:

In January 2026, we entered into a 20 -year license agreement for Nautica brand fragrances and fragrance related products, a subsidiary of the Authentic Brands Group.

Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.

Interparfums will assume full global responsibility for Nautica fragrances effective January 1, 2030.

David Beckham

In January 2026, we entered into a 20 -year license agreement for David Beckham brand fragrances and fragrance related products, a subsidiary of the Authentic Brands Group.

This license will become effective on April 1, 2028.

Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.

In 2018 , GUESS?, Inc.

and the Company signed an exclusive worldwide license agreement for the creation, the manufacturing and the distribution of fragrances under the GUESS brand until December 31, 2033 .

In December 2025, the license agreement was renewed for an additional 15 years, extending the license through December 31, 2048 .

In July 2025, we announced that our 72 % owned French subsidiary, Interparfums SA, signed an exclusive license agreement with Longchamp, a Parisian Maison, through December 31, 2036 .

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Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.

In March 2025, we announced that our 72 % owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe.

Amorepacific Europe will continue to operate the Goutal brand under an existing license agreement that expires on December 31, 2025 , when Interparfums SA will begin commercial use of the fragrance brand.

In March 2025, we announced that our 72 % owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Goutal Paris held by Amorepacific Europe.

In January 2026, Interparfums SA began commercial use of the fragrance brand.

In 2015 , Coach and Interparfums SA signed an exclusive worldwide license agreement for the creation, the manufacturing and the distribution of fragrances under the Coach brand until June 30, 2026.

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The goal of the updated Fierce distribution agreement is to drive, over time, more consistency between the products that are carried in the Abercrombie & Fitch stores and unaffiliated retailers.

In December 2024, we announced that our 72 % owned French subsidiary, Interparfums SA, signed for all Off-White® brand names and registered trademarks for Class 3 fragrance and cosmetic products, subject to an existing license that expires on December 31, 2025, when Interparfums SA will begin commercial use of the fragrance brand.

Van Cleef & Arpels

In 2006 , Van Cleef & Arpels and Interparfums SA signed a 12 -year worldwide license agreement to manufacture and distribute perfumes and related products under the Van Cleef & Arpels brand name, which was subsequently extended for a further six years until December 31, 2024.

In December 2024, the license agreement was renewed for an additional 9 -year term, through December 31, 2033.

Roberto Cavalli

In July 2023, we closed a transaction agreement with Roberto Cavalli, whereby an exclusive and worldwide license was granted for the production and distribution of Roberto Cavalli brand perfumes and fragrance related products.

Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.

The license became effective in July 2023 and will last for 6.5 years.

We began shipping Roberto Cavalli perfumes and fragrance related products in February 2024.

INTERPARFUMS, INC.

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Notes to Consolidated Financial Statements

In December 2022, we closed a transaction agreement with Lacoste, whereby an exclusive and worldwide license was granted for the production and distribution of Lacoste brand perfumes and cosmetics.

Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.

The license became effective in January 2024 and will last for 15 years .

We began shipping Lacoste fragrances in January 2024.

The Dunhill fragrance license expired on September 30, 2023 and was not renewed.

The Company had a twelve -month sell-off period during which it maintained the right to sell-off remaining Dunhill fragrance inventory, which is customary in the fragrance industry.

As of September 30, 2024, all finished goods and components have been sold and we no longer carry any inventory related to Dunhill.

Rochas Fashion

As a result of operational challenges faced by the Rochas Fashion business, we took a $ 2.4 million impairment charge on our Rochas fashion trademark in the first quarter of 2021 and a $ 6.8 million impairment charge in the fourth quarter of 2022 after management reviewed and agreed with an independent expert's conclusion that the fair value of the trademark was $ 11.2 million.

In 2023 , the Rochas team underwent a strategic shift to take over their own brand operations, exiting contracts with manufacturers and distributors to make this new structure operational beginning in 2024 .

In the fourth quarter of 2024 , we again took a $ 4.0 million impairment charge on the Rochas fashion trademark after management reviewed and agreed with an independent expert's conclusion that the fair value of the trademark was $ 7.2 million.

There have been no triggering events through the first three quarters of 2025 that would require management to perform an impairment analysis.

As a result of operational challenges faced by the Rochas Fashion business, we have taken impairment charges on our Rochas fashion trademark, and in the fourth quarter of 2024 , management reviewed and agreed with an independent expert's conclusion that the fair value of the trademark was $ 7.2 million.

There have been no triggering events in the first quarter of 2026 and 2025 that would require management to perform an impairment analysis.

Accounting Pronouncements:

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We are currently evaluating the impact of adopting this ASU on our disclosures.

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes

Improvements to Income Tax Disclosures.

The ASU includes

amendments requiring enhanced income tax disclosures, primarily related to

standardization and disaggregation of rate reconciliation categories and income

taxes paid by jurisdiction.

The guidance is effective for annual periods

beginning after December 15, 2024.

Early adoption is permitted and shall be

applied on a prospective basis with the option to apply retrospectively.

currently evaluating the impact of adopting this ASU on our disclosures.

In November 2025, the FASB issued ASU 2025‑09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements.

The guidance makes targeted amendments to the hedge accounting model to better align the accounting with an entity’s risk management activities and to clarify the application of certain hedge accounting requirements.

The amendments are effective for the Company for fiscal years beginning after December 15, 2026, including interim periods, with early adoption permitted.

The Company is currently evaluating the impact of adopting this guidance on its hedge accounting policies and disclosures;

however, the Company does not expect adoption to have a material impact on its consolidated financial position, results of operations, or cash flows.

There are no other recent accounting pronouncements issued but not yet

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(In thousands)

September 30, 2025

March 31, 2026

December 31, 2025

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The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.

Fair Value Measurements at September 30, 2025

Fair Value Measurements at March 31, 2026

Quoted Prices in

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Interest rate swaps

Foreign currency forward exchange contracts not accounted for using hedge accounting

Foreign currency forward exchange contracts accounted for using hedge accounting

Total Liabilities

Fair Value Measurements at December 31, 2025

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Foreign currency forward exchange contracts accounted for using hedge accounting

Total Liabilities

INTERPARFUMS, INC.

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and losses in derivatives designated as hedges are accumulated in other comprehensive income and gains and losses in derivatives

not designated as hedges are included in loss (gain) on foreign currency in the accompanying consolidated statements of income.

Such gains and losses were immaterial for the three and nine months ended September 30, 2025 and 2024 , respectively.

not designated as hedges are included in loss on foreign currency in the accompanying consolidated statements of income.

Such gains and losses were immaterial for the three months ended March 31, 2026 and 2025 , respectively.

derivative instruments are reported as either assets or liabilities on the consolidated balance sheet measured at fair value.

The fair value of interest rate swaps includes a liability position, which is included in long-term debt on the accompanying consolidated balance sheet, and an asset position, which is included in other assets on the accompanying balance sheet.

The fair value of foreign currency forward exchange contracts at September 30, 2025 , resulted in a net asset and is included in other current assets on the accompanying consolidated balance sheet.

At September 30, 2025 , the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $ 60 million which all have maturities of less than one year .

The fair value of foreign currency forward exchange contracts at March 31, 2026 , resulted in a net liability and is included in accrued expenses on the accompanying consolidated balance sheet.

At March 31, 2026 , the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $ 38.0 million, all of which have maturities of less than one year .

INTERPARFUMS, INC.

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the present value of lease payments.

of September 30, 2025 , the weighted average remaining lease term was 3.6 years and the weighted average discount rate used to determine

of March 31, 2026 , the weighted average remaining lease term was 3.3 years and the weighted average discount rate used to determine

the operating lease liability was 3.2 %.

Rental expense related to operating leases was $ 1.8 million and $ 5.1 million for the three and nine months ended September 30, 2025 , respectively, as compared to $ 1.6 million and $ 4.9 million for the corresponding periods of the prior year .

Rental expense related to operating leases was $ 1.7 million and $ 1.6 million for the three months ended March 31, 2026 and 2025 , respectively .

Operating lease payments included in operating cash flows totaled $ 1.7

million and $ 4.4 million for the nine months ended September 30, 2025 and 2024 , respectively, and noncash additions to operating lease assets totaled $ 0.2 millio n and $ 1.2 million for the nine months ended September 30, 2025 and 2024 , respectively.

million and $ 1.9 million for the March 31, 2026 and 2025 , respectively, and noncash additions to operating lease assets totaled $ 0.4 millio n and $ 0.03 million for the March 31, 2026 and 2025 , respectively.

Share-Based Payments:

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The plans, all of which have been approved by shareholder vote, provide for the granting of both nonqualified and incentive options.

Options granted under the plans typically have a six -year term and vest over a four to five -year period.

The fair value of shares vested during the nine months ended September 30, 2025 and 2024 aggregated $ 0.02 million and $ 0.04 million , respectively.

Options granted under the plans typically have a six -year term and vest over a five -year period.

The fair value of shares vested during the March 31, 2026 and 2025 aggregated $ 0.0 million and $ 0.02 million , respectively.

Compensation cost, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period for the entire award.

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It is generally our policy to issue new shares upon exercise of stock options.

The following table sets forth information with respect to nonvested options for the nine months ended September 30, 2025 :

The following table sets forth information with respect to nonvested options for the March 31, 2026 :

Number of Shares

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Nonvested options vested or forfeited

Nonvested options at September 30, 2025

Nonvested options at March 31, 2026

INTERPARFUMS, INC.

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Notes to Consolidated Financial Statements

Share-based payment expense decreased income before income taxes by $ 0.37 million and $ 1.31 million for the three and nine months ended September 30, 2025 respectively, as compared to decreases of $ 0.60 million and $ 1.77 million for the three and nine months ended September 30, 2024 respectively, and decreased income attributable to Interparfums, Inc.

by $ 0.26 million and $ 0.87 million for the three and nine months ended September 30, 2025 respectively, as compared to $ 0.4 million and $ 1.17 million for the corresponding periods of the prior year .

The following table summarizes stock option information as of September 30, 2025 :

Share-based payment expense decreased income before income taxes by $ 0.42 million and $ 0.56 million for the three months ended March 31, 2026 and 2025 , respectively, and decreased income attributable to Interparfums, Inc.

by $ 0.29 million and $ 0.36 million for the three months ended March 31, 2026 and 2025 respectively, for the corresponding periods of the prior year .

The following table summarizes stock option information as of March 31, 2026 :

Weighted Average

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Options exercised

Outstanding at September 30, 2025

Outstanding at March 31, 2026

Options exercisable

Options available for future grants

As of September 30, 2025 , the weighted average remaining contractual life of options outstanding is 2.8 years ( 1.0 years for options exercisable);

As of March 31, 2026 , the weighted average remaining contractual life of options outstanding is 3.3 years ( 2.4 years for options exercisable);

the aggregate intrinsic value of options outstanding and options exercisable is $ 0.3 million and $ 0.0 million , respectively;

and unrecognized compensation cost related to stock options outstanding aggregated $ 3.1 million.

Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the nine months ended September 30, 2025 and 2024 were as follows:

Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the March 31, 2026 and 2025 were as follows:

(In thousands)

September 30, 2025

September 30, 2024

March 31, 2026

March 31, 2025

Cash proceeds from stock options exercised

Intrinsic value of stock options exercised

There were no options granted during the nine months ended September 30, 2025 and September 30, 2024 .

There were no options granted during the March 31, 2026 and March 31, 2025 .

Expected volatility is estimated based on the historic volatility of the Company’s common stock.

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In order to avoid dilution of the Company’s ownership of Interparfums SA, all shares distributed pursuant to this plan were pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA.

As of September 30, 2025 the Company acquired 106,046 shares at an aggregate cost of $ 4.5 million .

As of March 31, 2026 the Company acquired 106,046 shares at an aggregate cost of $ 4.5 million .

In December 2025, Interparfums SA, approved a new performance-based free share plan to grant an aggregate of 137,900 shares to all Interparfums SA employees and corporate officers who are employed as of the final vesting date of March 1, 2029, subject to certain corporate performance conditions.

The fair value of the grant was determined based on the quoted stock price of Interparfums SA shares as reported by the Euronext on the date of the grant, adjusted for expected dividends over the vesting period and for performance conditions.

Based on the expected retention rate and probability of achieving performance conditions, the total estimated expense for the plan is approximately $ 2.3 million (€ 2 million), recognized on a straight-line basis over the 3.25 year vesting period.

In order to avoid dilution of the Company’s ownership of Interparfums SA, all shares to be distributed pursuant to this plan will be pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA.

During the 3 months ended March 31, 2026 and as of March 31, 2026, the Company acquired 56,264 shares at an aggregate cost of $ 1.5 million.

All share purchases and issuances have been classified as equity transactions on the accompanying balance sheet.

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Three months ended

Nine Months Ended

(In thousands)

September 30,

Net income attributable to Interparfums, Inc.

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common shareholders:

Not included in the above computations are the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.09 million shares of common stock for the three and nine months ended September 30, 2025 and 0.05 million shares of common stock for the three and nine months ended September 30, 2024 .

Not included in the above computations are the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.18 million shares of common stock for the three months ended March 31, 2026 and 0.04 million shares of common stock for the three months ended March 31, 2025 .

INTERPARFUMS, INC.

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Information on the Company’s operations by segments is as follows:

Three Months Ended September 30, 2025

Nine Months Ended September 30, 2025

United States

based operations

Three Months Ended March 31, 2026

United States

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Financial Statements

Three Months Ended September 30, 2024

Nine Months Ended September 30, 2024

United States

based operations

Three Months Ended March 31, 2025

United States

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Other segment disclosures:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Net income attributable to Interparfums, Inc.:

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(a) Total long-lived assets include property, equipment and leasehold improvements, trademarks, licenses, and other intangible assets, and right-of-use assets.

September 30,

Total Assets:

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Certain prestige fragrance products are produced and marketed by our European based operations through our 72 % owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company as 28 % of Interparfums SA shares trade on the Euronext.

We produce and distribute fragrance products through our European based operations primarily under license agreements with brand owners, and European based fragrance product sales represented approximately 70 % and 67 % of net sales for the nine months ended September 30, 2025 and 2024 , respectively.

We have built a portfolio of prestige brands, which include Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Moncler, Montblanc, Rochas, Solférino and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world.

We produce and distribute fragrance products through our European based operations primarily under license agreements with brand owners, and European based fragrance product sales represented approximately 72 % of net sales for the three months ended March 31, 2026 and 2025 .

We have built a portfolio of prestige brands, which include Boucheron, Coach, Goutal, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Longchamp, Moncler, Montblanc, Off-White, Rochas, Solférino and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world.

Through our United States based operations, we also produce and distribute fragrance and fragrance related products.

United States based operations represented 30 % and 33 % of net sales for the nine months ended September 30, 2025 and 2024 , respectively.

United States based operations represented 28 % of net sales for the three months ended March 31, 2026 and 2025 .

These fragrance products are sold primarily pursuant to license or other agreements with the owners of the Abercrombie & Fitch, Anna Sui, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta and Roberto Cavalli brands.

Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses.

With respect to the Company’s largest brands, we license the Jimmy Choo, Coach , Montblanc , GUESS, Lacoste, Donna Karan/DKNY, and Ferragamo brand names.

As a percentage of net sales for the nine months ended September 30, 2025 and 2024, product sales for the Company’s largest brands represented 78 % and 75 %, respectively, with a split by brand as follows:

Nine Months Ended

September 30,

With respect to the Company’s largest brands, we license the Coach, Jimmy Choo, Montblanc , GUESS, Lacoste, Donna Karan/DKNY, and Ferragamo brand names.

As a percentage of net sales for the three months ended March 31, 2026 and 2025 , product sales for the Company’s largest brands represented 81 % and 76 %, respectively, with a split by brand as follows:

Three Months Ended

Donna Karan/DKNY

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AND SUBSIDIARIES

For the three months ended March 31, 2026, Macy's, our top retail customer, accounted for approximately 12% of net sales.

No one customer represented 10 % or more of net sales for the three months ended March 31, 2025.

Quarterly sales fluctuations are influenced by the timing of new product launches as well as the third and fourth quarter holiday season.

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Recent Important Events

Please see our discussion of Recent Important Events, which is incorporated by reference to Note 2 to the Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 .

Discussion of Critical Accounting Policies

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Results of Operations

Three and Nine Months Ended September 30, 2025 as Compared to the Three and Nine Months Ended September 30, 2024

Three Months Ended March 31, 2026 as Compared to the Three Months Ended March 31, 2025

Three Months Ended

Nine Months Ended

September 30,

(in millions)

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*n/a = not applicable

Net sales for the three months ended September 30, 2025 increased 1 % from the three months ended September 30, 2024 .

The average dollar/euro exchange rate for the current third quarter was 1.17 compared to 1.10 in the third quarter of 2024 , resulting in a positive foreign exchange impact on net sales of 2.2% in the three months ended September 30, 2025 as compared to the prior year period.

Net sales for the nine months ended September 30, 2025 also increased 1 % as compared to the nine months ended September 30, 2024 .

The average dollar/euro exchange rate for the nine months ended September 30, 2025 was 1.12 compared to 1.09 for the nine months ended September 30 2024, resulting in a positive foreign exchange impact on nets sales of 1.1% as compared to the prior year period.

The discontinuation of the Dunhill license decreased net sales for the nine months ended September 30, 2025 1% compared to the prior year period and a moderate impact in the current quarter compared to the prior year period.

Overall organic growth on a year to date basis is 1.2% compared to the prior year period as consumers are being more selective and retailers are taking a cautious approach to inventory.

For European based operations, sales in the three months ended September 30, 2025 increased 5%, compared to the corresponding period of the prior year, driven by Jimmy Choo, Lacoste and Coach, which grew by 16%, 8% and 6%, respectively.

These increases were driven by continued strong performance in these brands' established lines.

Sales of Montblanc were down 2% in the third quarter, despite the recent release of the Montblanc Explorer Extreme , resulting in a 6% decline for the nine months ended September 30, 2025 , as compared to the prior year period.

We have further enhanced the brand with the launch of Montblanc Signature Elixir and believe it will gain traction through the balance of the year and into 2026.

For United States based operations, sales in the three months ended September 30, 2025 decreased 6% compared to the corresponding period of the prior year as a result of the discontinuation of the Dunhill license.

With the phase-out of Dunhill fragrances completed in August of 2024, we expect minimal impact on a quarter-over-quarter comparison going forward.

GUESS fragrance sales declined moderately by 3% in the three months ended September 30, 2025 , compared to the corresponding period of the prior year, due to a high base in the prior period third quarter and the phasing of innovation.

The brand continues to perform well, and we believe the brand is poised for sales growth in the final quarter of the year.

Donna Karan /DKNY fragrance sales declined 14% in the three months ended September 30, 2025 , compared to the corresponding period of the prior year, due to robust growth levels achieved last year.

Based on planned shipments through year end and the brand's popularity during the holiday season, particularly in the Americas, we believe the brand will grow in the final quarter of the year.

Roberto Cavalli fragrance sales continue to benefit from increased focus, investment and innovation, growing 44% and 33% in the three and nine months ended September 30, 2025 , respectively, compared to the corresponding periods in the prior year.

The brand continues to benefit from strong innovation, including the blockbuster launch of Roberto Cavalli Serpentine and a new duo, Just Cavalli Give Me Magic .

MCM sales rose by 6% in the third quarter of 2025 compared to the third quarter of 2024 with the continued success from the launch of the MCM Collection .

For the nine months ended September 30, 2025 , United States based operations sales decreased 10% on a reported basis and 6% on an organic basis, compared to the corresponding period of the prior year.

While the 2025 third quarter saw only a slight overall increase, we are encouraged by our agility and pricing actions that are underway and expect to see the full impact of our efforts throughout the remainder of 2025 and through 2026.

We continue to focus on our long-term strategy, innovative product development, and high service levels for our global retail and distribution partners.

While the pace of growth in the fragrance market is starting to slow down, the power of our diverse brand portfolio, in combination with our agile operating model, should help us gain market share.

Net sales for the three months ended March 31, 2026 increased 2 % from the three months ended March 31, 2025 .

The average dollar/euro exchange rate for the current first quarter was 1.17 compared to 1.05 in the first quarter of 2025 , resulting in a positive foreign exchange impact on net sales of 4.6% in the three months ended March 31, 2026 as compared to the prior year period.

For European based operations, sales in the three months ended March 31, 2026 increased 2%, compared to the corresponding period of the prior year, which included a 5.5% positive foreign exchange impact.

Coach fragrance sales grew 30%, in the first quarter of 2026, following an 11% increase in the prior year period.

This growth was driven by strong sell-in following the launches of new extensions within the Coach Women and Coach Men franchises, Coach Cherry and Coach Platinum , as well as sustained strong demand across most existing lines.

Montblanc fragrance sales rose 14% in the first quarter of 2026, driven by the launch of Legend Elixir , the continued success of Explorer Extreme , and a lower sales base in last year's first quarter.

We plan to launch a new extension for the Explorer Extreme line in the second half of the year to sustain the brand.

While Jimmy Choo fragrance sales continue to grow in the United States, supported by the ongoing success of the I Want Choo franchise and the first quarter launch of Jimmy Choo Man Parfum , overall brand net sales declined 4% in the first quarter of 2026.

This reflected a moderate downturn in certain European and Asian markets.

Fragrance sales of Lacoste declined 12% in the first quarter of 2026 against a high base in the prior year period in which sales grew 30% behind a very successful innovation program as well as challenging market conditions primarily in Eastern Europe.

We remain confident in the brand's medium and long-term potential, given recent and upcoming extensions in 2026 and planned blockbuster launches in 2027 and 2028.

For United States based operations, sales in the three months ended March 31, 2026 increased 2% compared to the corresponding period of the prior year, which included a 2.5% positive foreign exchange impact.

GUESS fragrance sales rose 11% in the first quarter of 2026 supported by successful launches of new extension within the Iconic and Seductive pillars, Iconic Sublime , the newest men's fragrance that extends the franchise's strong momentum, and Seductive Desire , a bold new dual-gender fragrance duo.

Following a successful first two years in our portfolio, Roberto Cavalli continued to generate robust results,

achieving 32% sales growth during the first quarter of 2026.

Growth was fueled by the latest innovation released during

the quarter, including the Just Cavalli Wild Heart extension dual-gender duo, Wild Pink & Wild Blue , and Verde Assoluto ,

the newest fragrance within the Uomo pillar.

Donna Karan/DKNY net sales declined by a modest 3% in the first quarter of 2026 off a strong sales base in the first quarter of 2025;

however, sales

of Be Delicious Core rebounded by 16% in the first quarter of 2026, compared to the prior year period, reflecting renewed

consumer demand and strengthening momentum for the franchise.

We expect sales to improve as the year progresses,

driven by support for the new DKNY three-scent collection, Be Delicious Latte , and the new fragrance for the Donna Karan

Cashmere Collection , Cashmere & Rose Absolu .

While the 2026 first quarter experienced a slight decline in organic sales, net sales grew overall, and we remain cautiously optimistic about the remainder of 2026.

Looking ahead to 2027, we continue to be optimistic by the enhanced offerings within our current portfolio of brands, the introduction of new fragrances from recently acquired brands and licenses, and the selective pursuit of incremental brand opportunities.

While the pace of growth in the market is starting to normalize closer to historical levels following massive growth seen over the past few years, the power of our diverse brand portfolio, in combination with our agile operating model, should help us gain market share.

INTERPARFUMS, INC.

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Net Sales to Customers by Region

Nine Months Ended

Three Months Ended

(In millions)

September 30,

North America

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Middle East and Africa

In the nine months ended September 30, 2025 , net sales in our largest market, North America, rose 4% as compared to the prior year period, followed by an increase in Western Europe of 3%.

Our sales in Asia/Pacific decreased by 9% driven by distribution disruptions in South Korea and India in the current year.

Our net sales in Eastern Europe were also robust, up 6% in the nine months ended September 30, 2025 as compared to the prior year period when we faced temporary sourcing constraints.

Central and South America net sales increased 12%.

Middle East and Africa net sales declined 16% primarily related to a disproportionate impact from the exit of the Dunhill license due to its significant presence.

Excluding the impact of Dunhill, Middle East and Africa net sales declined 7% due to the impacts of the conflicts in the region and a reduction in the number of doors in many markets that are now more focused on higher-end luxury fragrances.

In the three months ended March 31, 2026 , net sales in our largest market, North America, rose 7% as compared to the prior year period behind continued market growth, the launch of several extensions, in particular for Coach, as well as successful marketing and advertising investments, while sales in Western Europe remained flat behind slow consumer demand.

Our sales in Asia/Pacific decreased by 7% driven by distribution changes we implemented in 2025 in South Korea and India, and softer consumer demand in Australia/New Zealand, which were partially compensated by strong growth in China.

Central and South America net sales increased 23 % due to the success of women's and men's Coach franchises and the strength of the Montblanc Legend line.

Our net sales in Eastern Europe decreased 12% in the three months ended March 31, 2026 as compared to the prior year period driven by operational difficulties in certain countries, which disproportionately impacted Lanvin and Lacoste.

Middle East and Africa net sales also declined 12% primarily due to recent intensification of the conflicts in those regions.

Gross Profit Margin

Three Months Ended

Nine Months Ended

(in millions)

September 30,

European based operations

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Gross profit margin as a percentage of net sales

The Company’s gross profit margin as a percentage of net sales was 63.5 % and 64.4 % for the three and nine months ended September 30, 2025 as compared to 63.9 % and 63.6 % for the corresponding periods of the prior year.

The Company continued to benefit from favorable segment, brand, and channel mix, in the nine months ended September 30, 2025 as compared to the prior year period.

However, during the three months ended September 30, 2025 as compared to the prior year period, these favorable tailwinds as well as additional pricing actions that were taken at the back end of the quarter were not sufficient to offset the impacts of higher tariffs on our US imports, which represented $6 million.

For European based operations, gross profit margin as a percentage of net sales was 66.0 % and 66.6 % for the three and nine months ended September 30, 2025 , respectively, as compared to 66.2 % and 66.3 % for the corresponding period of the prior year.

European based operations were negatively impacted by tariffs during the three months ended September 30, 2025 as compared to the prior year period, offset by pricing increases in the United States and brand and channel mix.

During the nine months ended September 30, 2025, favorable channel mix resulted in the increase in gross profit as percentage of sales compared to the prior year period.

The Company’s gross profit margin as a percentage of net sales was 65.1 % for the three months ended March 31, 2026 as compared to 63.7 % for the corresponding period of the prior year.

The increase was the result of favorable segment, brand and channel mix as well as lower than expected destruction costs.

These were partially offset by tariffs which represented an expense of $6 million in the three months ended March 31, 2026 as compared to the prior year period.

For European based operations, gross profit margin as a percentage of net sales was 67.4 % for the three months ended March 31, 2026 , respectively, as compared to 65.5 % for the corresponding period of the prior year.

The increase was the result of favorable brand and channel mix as well as lower than expected destruction costs.

These were partially offset by tariffs which represented an expense of $4 million in the three months ended March 31, 2026 as compared to the prior year period.

INTERPARFUMS, INC.

AND SUBSIDIARIES

For United States based operations, gross profit margin as a percentage of net sales was at 58.1 % and 59.0 % for the three and nine months ended September 30, 2025 respectively, as compared to 59.2 % and 58.2 % for the corresponding periods of the prior year.

United States based operations saw a moderate decline due to the negative impact of tariffs as well as brand and channel mix in the three months ended September 30, 2025.

The increase in the nine months ended September 30, 2025 was mainly driven by the discontinuation of Dunhill products, which were sold at lower margins in 2024 as is customary during sell-off periods.

For United States based operations, gross profit margin as a percentage of net sales remained flat at 58.9 % for the three months ended March 31, 2026 respectively, as compared to 58.7 % for the corresponding period of the prior year.

Favorable brand and channel mix as well as lower than expected destruction costs were offset by tariffs which represented an expense of $2 million in the three months ended March 31, 2026 as compared to the prior year period.

Generally, we do not bill customers for shipping and handling costs, which are included in selling, general and administrative expenses in the consolidated statements of income.

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Three Months Ended

Nine Months Ended

(In millions)

September 30,

European based operations

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Selling, general and administrative expenses as a percentage of net sales

The Company’s selling, general and administrative expenses as a percentage of net sales were 38.2% and 42.4 % for the three and nine months ended September 30, 2025 as compared to 38.9 % and 41.8 % for the three and nine months ended September 30, 2024 .

The decrease in the quarter was driven by the phasing of promotional and advertising activities.

The increase in the first three quarters of the year was largely driven by increased overall spending on promotional and advertising activities and increased employee related costs, as well as negative foreign exchange impacts.

For European based operations, selling, general and administrative expenses increased 1.5% and 4.9% for the three and nine months ended September 30, 2025 , respectively a s compared to the corresponding periods of the prior year, and represented 37.2 % and 41.1% of net sales for the three and nine months ended September 30, 2025 , as compared to 38.3 % and 41.5 % for the three and nine months ended September 30, 2024 .

A significant portion of our expense in European based operations are denominated in euros, resulting in costs as reported in USD.

The decrease in selling, general and administrative expenses as a percentage of net sales in the third quarter and first nine months of the year was driven by the expiration of the 2022 free-share plan and distribution of shares in France in the second quarter resulting in the decrease in stock compensation amortization.

For United States based operations, selling, general and administrative expenses decreased 4.4% and 2.3% for the three and nine months ended September 30, 2025 as compared to the corresponding periods of the prior year, and represented 39.7% and 44.4% of net sales for the three and nine months ended September 30, 2025 , as compared to 39.0 % and 41.1 % for the three and nine months ended September 30, 2024 .

The increase in selling, general and administrative expenses as a percentage of net sales was largely driven by lower sales in 2025 with the discontinuation of Dunhill in 2024.

Promotion and advertising included in selling, general and administrative expenses aggregated $65.5 million and $185.9 million for the three and nine months ended September 30, 2025 , respectively, as compared to $ 66.8 million and $ 181.5 million for the corresponding periods of the prior year and represented 15.3 % and 16.9 % of net sales for the three and nine months ended September 30, 2025 , respectively, as compared to 15.7 % and 16.6 % for the corresponding periods of the prior year.

The Company’s selling, general and administrative expenses as a percentage of net sales were 43.6% for the three months ended March 31, 2026 as compared to 41.6 % for the three months ended March 31, 2025 .

The increase in selling, general and administrative expenses as a percentage of net sales in the quarter resulted from royalty costs growing ahead of sales driven by unfavorable brand mix as well higher logistics costs related to supply chain transitions and channel mix.

For European based operations, selling, general and administrative expenses increased 8.8% for the three months ended March 31, 2026 , respectively a s compared to the corresponding period of the prior year, and represented 41.4 % of net sales for the three months ended March 31, 2026 , as compared to 38.7 % for the three months ended March 31, 2025 .

The increase in expenses was largely driven by increases in employee related costs as we are building up our Korean subsidiary and higher logistics costs related to increased warehouse fees.

Royalty costs also grew ahead of sales driven by unfavorable brand mix.

For United States based operations, selling, general and administrative expenses increased 2.5% for the three months ended March 31, 2026 as compared to the corresponding period of the prior year, in line with sales increases, and represented 47.9% of net sales for the three months ended March 31, 2026 , as compared to 47.6 % for the three months ended March 31, 2025 .

Promotion and advertising included in selling, general and administrative expenses aggregated $51.6 million for the three months ended March 31, 2026 , respectively, as compared to $ 51.5 million for the corresponding period of the prior year and represented 15.0 % of net sales for the three months ended March 31, 2026 , respectively, as compared to 15.2 % for the corresponding period of the prior year.

Promotion and advertising are integral parts of our industry, and we continue to invest heavily to support new pr oduct launches and to build brand awareness.

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AND SUBSIDIARIES

Royalty expense included in selling, general and administrative expenses aggregated $34.7 million and $90.5 million for the three and nine months ended September 30, 2025 , respectively, as compared to $ 34.0 million and $ 88.2 million for the corresponding periods of the prior year.

Royalty expense represented 8.1 % and 8.2% of net sales for both the three and nine months ended September 30, 2025 as compared to 8.0 % and 8.1 % of net sales for the corresponding periods of the prior year.

Royalty expense included in selling, general and administrative expenses aggregated $31.9 million for the three months ended March 31, 2026 , respectively, as compared to $ 28.1 million for the corresponding period of the prior year.

Royalty expense represented 9.3 % of net sales for the three months ended March 31, 2026 as compared to 8.3 % of net sales for the corresponding periods of the prior year.

This increase was primarily driven by unfavorable brand mix.

Income from Operations

As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 25.3 % and 22.0 % for the three and nine months ended September 30, 2025 , respectively, as compared to 25.0 % and 21.9 % for the corresponding period of the prior year.

As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 21.5 % for the three months ended March 31, 2026 , respectively, as compared to 22.2 % for the corresponding period of the prior year.

Other Income and Expense

Overall, other income and expense for the nine months ended September 30, 2025 , was a loss of $7.7 million as compared to a loss of $7.1 million in the corresponding prior year period.

One of the main drivers is the impact of our gains and losses on foreign currency where we recognized a loss of $4.6 million in the first nine months of 2025 compared to $3.1 million in the first nine months of 2024 .

Another driver of this change is the impact of our gains and losses on marketable securities where we recorded a loss of $2.5 million in the first nine months of 2025 and a loss of $0.8 million in the first nine months of 2024 .

Changes in interest expense and interest income were favorable year-over-year with net interest expense of $1.8 million during the nine months ended September 30, 2025 as compared to a net interest expense of $2.9 million in the prior year period.

Overall, other income and expense for the three months ended March 31, 2026 , was a gain of $1.1 million as compared to a loss of $ 1.7 million in the corresponding prior year period.

T he main drivers of the change are discussed in more detail below.

These include the positive impact of the change in foreign currency where we recognized a loss of only $0.1 million in the first three months of 2026 compared to a loss of $ 0.8 million in the first three months of 2025 .

Additionally, we had a gain on interest income related to cash and cash equivalents and short-term investments of $1.7 million and a reduction in interest expense on borrowings of $0.1 million.

Interest expense is primarily related to the financing of brand and licensing acquisitions, as well as our headquarters in Paris.

Long-term debt including current maturities aggregated $196.9 million and $ 157.3 million as of September 30, 2025 and December 31, 2024 , respectively.

Interest expense was $5.1 million in the nine months ended September 30, 2025 compared to $5.3 million in the prior year period.

Long-term debt including current maturities aggregated $157.3 million and $ 176.0 million as of March 31, 2026 and December 31, 2025 , respectively.

Interest expense was $1.4 million in the three months ended March 31, 2026 compared to $ 1.5 million in the prior year period.

We enter into foreign currency forward exchange contracts to manage exposure related to receivables from unaffiliated third parties denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency.

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Gains and losses in derivatives designated as hedges are accumulated in other comprehensive income and gains and losses in derivatives not designated as hedges are included in (gain) loss on foreign currency on the accompanying consolidated income statements.

Such gains and losses were immaterial in the three and nine months ended September 30, 2025 and 2024 .

Such gains and losses were immaterial in the three months ended March 31, 2026 and 2025 .

Interest and investment income represents interest earned on cash and cash equivalents and short-term investments and realized and unrealized gains and losses on marketable equity securities.

Interest income was $4.4 million in the nine months ended September 30, 2025 compared to $2.7 million in the prior year period.

Our consolidated effective tax rate was 23.5% and 23.7 % for the nine months ended September 30, 2025 and 2024 , respectively.

The effective tax rate for European based operations was 24.4% and 25.0 % for the nine months ended September 30, 2025 and 2024 , respectively.

The decrease in taxes resulted from a $3 million favorable outcome to our mutual agreement procedure between the French and United States tax authorities in which we were able to reclaim the tax assessment paid in France in 2023.

The gain was offset by a $1 million one-time tax assessment included in the tax expense as a result of a tax audit conducted for the 2022 and 2023 tax years.

The effective tax rate for United States based operations was 20.0% for the nine months ended September 30, 2025 , as compared to 19.8 % for the corresponding period of the prior year.

Our effective tax rate for United States based operations differs from the 21 % statutory rate in the United States as it is a blended rate across multiple jurisdictions, and takes into account benefits received from the exercise of stock options as well as deductions we are allowed for a portion of our foreign derived intangible income, slightly offset by state and local taxes.

Interest income was $1.6 million in the three months ended March 31, 2026 compared to $1.3 million in the prior year period.

Additionally, we recognized gains on marketable equity securities of $0.7 million in the three months ended March 31, 2026 compared a loss of $0.7 million in the three months ended March 31, 2025.

Our consolidated effective tax rate was 24.6% and 24.5 % for the three months ended March 31, 2026 and 2025 , respectively.

The effective tax rate for European based operations remained flat at 25.4% for the three months ended March 31, 2026 as compared to 25.5% for the three months ended 2025 .

The effective tax rate for United States based operations was 19.7% for the three months ended March 31, 2026 , as compared to 18.1 % for the corresponding period of the prior year.

Our effective tax rate for United States based operations differs from the 21 % statutory rate in the United States as it is a blended rate across multiple jurisdictions, and takes into account benefits received from the exercise of stock options as well as deductions we are allowed for a portion of our foreign-derived deduction-eligible income, slightly offset by state and local taxes.

Other than as discussed above, we did not experience any significant changes in tax rates, and none were expected in jurisdictions where we operate.

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Three Months Ended

Nine Months Ended

(In thousands)

September 30,

Net income attributable to European based operations

3 unchanged sentences

Net income attributable to Interparfums, Inc.

was $ 65.8 million and $ 140.3 million for the three and nine months ended September 30, 2025 , respectively, as compared to $ 62.3 million and $ 140.1 million for the corresponding period of the prior year.

Net income attributable to European based operations was $ 63.7 million and $ 144.6 million for the three and nine months ended September 30, 2025 , as compared to $ 54.4 million and $ 132.6 million for the corresponding periods of the prior year, while net income attributable to United States based operations was $ 20.8 million and $ 39.0 million the three and nine months ended September 30, 2025 , as compared to $ 24.3 million and $ 49.0 million the corresponding periods of the prior year.

The significant fluctuations in net income for both European based operations and United States based operations are directly related to the previous discussions pertaining to changes in sales, gross margin, and selling, general and administrative expenses.

was $ 43.4 million for the three months ended March 31, 2026 , respectively, as compared to $ 42.5 million for the corresponding period of the prior year.

Net income attributable to European based operations was $ 49.9 million for the three months ended March 31, 2026 , as compared to $ 48.1 million for the corresponding period of the prior year, while net income attributable to United States based operations was $ 8.4 million for the three months ended March 31, 2026 , as compared to $ 8.7 million the corresponding period of the prior year.

The fluctuations in net income for both European based operations and United States based operations are directly related to the previous discussions pertaining to changes in sales, gross margin, and selling, general and administrative expenses.

The noncontrolling interest arises from our 72 % owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company, as 28 % of Interparfums SA shares trade on the Euronext.

Net income attributable to the noncontrolling interest is directly related to the profitability of our European based operations and aggregated 28 % of European based operations net income for both the nine months ended September 30, 2025 and 2024 .

Net profit margins attributable to Interparfums, Inc.

for the nine months ended September 30, 2025 and 2024 aggregated 12.7% and 12.8 %, respectively.

for the three months ended March 31, 2026 and 2025 aggregated 12.6% and 12.5 %, respectively.

Liquidity and Capital Resources

Our conservative financial tradition has enabled us to amass significant cash balances.

As of September 30, 2025 , we had $187.9 million in cash, cash equivalents and short-term investments, the majority of which are held in euros by our European based operations and is readily convertible into U.S.

As of March 31, 2026 , we had $237.1 million in cash, cash equivalents and short-term investments, the majority of which are held in euros by our European based operations and is readily convertible into U.S.

We have not experienced any liquidity issues to date, and do not expect any liquidity issues relating to such cash and cash equivalents and short-term investments.

As of September 30, 2025 , working capital aggregated $688.0 million.

As of March 31, 2026 , working capital aggregated $692 million.

Approximately 79% of the Company’s total assets are held by European based operations, and approximately $285 million of trademarks, licenses and other intangible assets are also held by European based operations.

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Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2025 , without consideration for potential renewal periods and do not reflect the fact that our distributors share our advertising obligations.

The Company hopes to continue to benefit from its strong financial position to potentially acquire one or more brands, either on a proprietary basis or as a licensee.

In July 2025, our 72% owned French subsidiary, Interparfums SA, signed an exclusive fragrance license agreement with Longchamp running through December 31, 2036.

Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.

The first launch is expected in 2027.

In June 2025, our 72 % owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe, which is operating the Goutal brand under an existing license agreement that expires on December 31, 2025 , when Interparfums SA will begin commercial use of the fragrance brand.

Additionally, in June 2025, we renewed the Coach license agreement for an additional five -year term, extending the license through June 30, 2031.

The Company hopes to continue to benefit from

its strong financial position to potentially acquire one or more brands, either

on a proprietary basis or as a licensee.

In January 2026, we entered into

long-term global licensing agreements for the creation, development and

distribution of fragrances and fragrance related products under the David

Beckham and Nautica brands, effective April 1, 2028 and January 1, 2030,

respectively.

In July 2025, our 72% owned French subsidiary,

Interparfums SA, signed an exclusive fragrance license agreement with

Longchamp running through December 31, 2036.

rights under these licenses are subject to certain minimum advertising

expenditures and royalty payments as are customary in our industry.

launch under our Longchamp license is expected in 2027.

In June 2025, our 72% owned French

subsidiary, Interparfums SA, acquired all intellectual property

rights relating to Maison Goutal held by Amorepacific Europe,

which is operating the Goutal brand under an existing license

agreement that expired on December 31, 2025,

when Interparfums SA began commercial use of the fragrance

Additionally, in June 2025, we renewed the Coach license

agreement for an additional five-year term, extending the license through

June 30, 2031.

INTERPARFUMS, INC.

AND SUBSIDIARIES

In December 2024, our 72 % owned French subsidiary, Interparfums SA, obtained all Off-White brand names and registered trademarks for Class 3 fragrance and cosmetics products, subject to an existing license that expires on December 31, 2025 , when Interparfums SA will begin commercial use of the fragrance brands.

Furthermore, in December 2024, we renewed the Van Cleef & Arpels license agreement for an additional nine -year term, beginning January 1, 2025.

In July 2023, we entered into a global licensing agreement for the creation, development and distribution of fragrances and fragrance related products under the Roberto Cavalli brand.

Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.

This license took effect in July 2023, and we began shipping products in February 2024.

In December 2022, we entered into a long-term global licensing agreement for the creation, development and distribution of fragrances and fragrance related products under the Lacoste brand.

Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.

This license took effect, and products began shipping in January 2024.

Cash provided by operating activities aggregated $68.4 million for the nine months ended September 30, 2025 compared to $ 49.7 million for the nine months ended September 30, 2024 .

For the nine months ended September 30, 2025 , working capital items used $133.9 million in cash from operating activities, as compared to $ 147.0 million in the 2024 period.

Cash provided by operating activities aggregated $0.1 million for the three months ended March 31, 2026 compared to cash used in operating activity of $7.4 million for the three months ended March 31, 2025 .

For the three months ended March 31, 2026 , working capital items used $67.3 million in cash from operating activities, as compared to $70.0 million in the 2025 period.

F rom a cash flow perspective, accounts receivables are up 6% from year end 2025 .

The balance is reasonable based on third quarter 2025 sales levels and seasonality of the business.

The balance is reasonable based on first quarter 2026 sales levels and seasonality of the business.

Days' sales outstanding increased to 78 days, up from 74 days in the corresponding period of the prior year, driven by changes in our channel mix.

Despite the increase, we are still seeing strong collection activity and do not anticipate any issues with collections of accounts receivable.

From a cash flow perspective, inventory levels as of September 30, 2025 decreased 5% from year end 2024 as we continue to drive inventory efficiencies.

We are doing this by increasing conversion of raw materials into finished goods, resulting in finished goods making up 68% of our inventory levels at September 30, 2025 as compared to 63 % at September 30, 2024 .

Cash flows provided by investing activities in 2025 are comprised of the net effect of purchases and sales of short-term investments.

From a cash flow perspective, inventory levels as of March 31, 2026 increased 7% from year end 2025 .

Despite the increase, we continue to drive inventory efficiencies and work to increase conversion of raw materials into finished goods, resulting in finished goods making up 64% of our inventory levels at March 31, 2026 as compared to 63 % at March 31, 2025 .

Despite foreign exchange headwinds, our inventories are down significantly year over year with $370 million at March 31, 2026 compared to $396 million at March 31, 2025, translating to a reduction of 17 days inventory on hand.

Cash flows used in investing activities in 2026 are comprised of the net effect of purchases and sales of short-term investments.

These investments consist of certificates of deposit with maturities greater than six months, marketable equity securities and other contracts.

At September 30, 2025 , approximately $2.3 million of certificates of deposit contain penalties where we would forfeit a portion of the interest earned in the event of early withdrawal.

These proceeds were offset by the payment for capital expenditures during the year.

In the first quarter of 2026, our strong cash flow position has enabled us to increase our short-term investments by $23 million compared to the year ended December 31, 2025.

In March 2025, the Company paid approximately $19.7 million for the purchase of the Goutal trademark.

Additionally, during the second and third quarters the Company purchased approximately $18.2 million of additional property in Paris attached to its French headquarters.

Our business is not capital intensive as we do not own any manufacturing facilities.

On a full year basis, we typically spend approximately $ 5 million on tools and molds, depending on our new product development calendar.

On a full year basis, spend on tools and molds fluctuates depending on our new product development and is typically not material.

Capital expenditures also include amounts for office fixtures, computer equipment, and industrial equipment needed at our distribution centers.

Cash flows used in financing activities in 2025 reflect issuances and repayments of debt to institutional lenders and payment of dividends to stockholders.

Our short-term financing requirements are expected to be met by available cash on hand at September 30, 2025 , and by short-term credit lines provided by domestic and foreign banks.

The principal credit facilities for 2025 consist of $70.0 million unsecured revolving lines of credit provided by a consortium of domestic commercial banks and approximately $9.4 million (€8 million) in credit lines provided by a consortium of international financial institutions.

There was $9.4 million of short-term borrowings outstanding pursuant to these facilities as of September 30, 2025 and $9.0 million outstanding as of September 30, 2024 .

In February 2024, the Board of Directors authorized an annual dividend of $ 3.00 per share.

In February 2025, the Board of Directors further increased the annual dividend to $ 3.20 per share.

The next quarterly cash dividend of $ 0.80 per share is payable on December 31, 2025, to shareholders of record on December 15, 2025.

Cash flows used in financing activities in 2026 predominately reflect repayments of debt and payments of dividends to stockholders.

Our short-term financing requirements are expected to be met by available cash on hand at March 31, 2026 , and by short-term credit lines provided by domestic and foreign banks.

The principal credit facilities for 2026 consist of $45 million in unsecured revolving lines of credit provided by a consortium of domestic commercial banks and approximately $9.2 million (€ 8 million) in credit lines provided by a consortium of international financial institutions.

There was $4.6 million of short-term borrowings outstanding pursuant to these facilities as of March 31, 2026 and $ 7.6 million outstanding as of March 31, 2025 .

In February 2025, our Board of Directors authorized an annual dividend to $3.20 per share, and in 2026 our Board of Directors maintained the annual dividend at $3.20 per share.

The next quarterly cash dividend of $ 0.8 0 per share is payable on June 30, 2026 to shareholders of record on June 15, 2026.

We believe that funds provided by or used in operations can be supplemented by our present cash position and available credit facilities, so that they will provide us with sufficient resources to meet all present and reasonably foreseeable future operating needs.

Inflation rates in the United States and foreign countries in which we operate did not have a significant impact on operating results for the nine months ended September 30, 2025 ;

however, we have already started to see the impacts of tariffs on our cost structure and have adjusted our pricing accordingly, as such, we anticipate potential inflationary impacts in the last quarter of 2025 and beyond as our suppliers potentially adjust their pricing as well.

Inflation rates in the United States and foreign countries in which we operate did not have a significant impact on operating results for the three months ended March 31, 2026 ;

however, we have already started to see the impacts of tariffs on our cost structure and had adjusted our pricing accordingly in 2025.

We continue to monitor for potential inflationary impacts as our suppliers potentially adjust their pricing as well.

INTERPARFUMS, INC.

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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 1. Financial Statements