What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-02-06 compared with 2025-08-01 · 72 added, 114 removed, 88 unchanged (68% of the section changed)

1 unchanged sentence

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) includes comments and analysis relating to the results of operations and financial condition of Johnson Outdoors Inc.

and its subsidiaries (collectively, the “Company”) as of and for the three and nine month periods ended June 27, 2025 and June 28, 2024.

and its subsidiaries (collectively, the “Company”) as of and for the three month periods ended January 2, 2026 and December 27, 2024.

All monetary amounts, other than share and per share amounts, are stated in thousands.

This discussion should be read in conjunction with the Condensed Consolidated Financial Statements and related notes that immediately precede this section, as well as the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2024 which was filed with the Securities and Exchange Commission on December 11, 2024.

This discussion should be read in conjunction with the Condensed Consolidated Financial Statements and related notes that immediately precede this section, as well as the Company’s Annual Report on Form 10-K for the fiscal year ended October 3, 2025 which was filed with the Securities and Exchange Commission on December 12, 2025.

Forward Looking Statements

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Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results or outcomes to differ materially from those currently anticipated.

Factors that could affect actual results or outcomes include the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K for the fiscal year ended September 27, 2024 which was filed with the Securities and Exchange Commission on December 11, 2024 and the following:

Factors that could affect actual results or outcomes include the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K for the fiscal year ended October 3, 2025 which was filed with the Securities and Exchange Commission on December 12, 2025 and the following:

changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets;

uncertainties stemming from political instability (and its impact on the economies in jurisdictions where the Company has operations);

uncertainties stemming from changes in U.S.

uncertainties stemming from political instability or changes in government policy and actions (and its impact on the economies in jurisdictions where the Company has operations);

uncertainties

JOHNSON OUTDOORS INC.

stemming from changes in U.S.

trade policies, tariffs, and the reaction of other countries to such changes;

the global outbreaks of disease, such as the COVID-19 pandemic which has affected, and may continue to affect, market and economic conditions, along with wide-ranging impacts on employees, customers and various aspects of our operations;

the global outbreaks of disease which may affect market and economic conditions and may have wide-ranging impacts on employees, customers and various aspects of our operations;

the Company’s success in implementing its strategic plan, including its targeted sales growth platforms, innovation focus and its increasing digital presence;

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We have registered the following trademarks, among others, which may be used in this report:

Minn Kota®, Cannon®, Humminbird®, Jetboil®, Old Town®, Ocean Kayak®, Carlisle®, and SCUBAPRO®.

JOHNSON OUTDOORS INC.

Minn Kota®, Cannon®, Humminbird®, Jetboil®, Old Town®, Carlisle®, and SCUBAPRO®.

The Company is a leading global manufacturer and marketer of branded seasonal outdoor recreation products used primarily for fishing, diving, paddling and camping.

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Johnson-Leipold, the Company’s Chairman and Chief Executive Officer, members of her family and related entities.

Recent Developments

As disclosed in Part I, Item 1A:

Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended September 27, 2024, the Company’s business is subject to risks related to, among other factors, tariffs put in the place by the United States or other countries, including ongoing negotiations on tariffs by the United States with foreign nations and trading partners.

During the nine months ended June 27, 2025, the United States government has announced additional tariffs on goods imported into the U.S.

from numerous countries.

These tariffs may result in an increase costs to the Company, which may ultimately negatively impact demand for our products and/or reduce the Company's overall profitability.

The Company continues to analyze the potential impacts of the tariffs and actions that can be taken to mitigate their effects, including, among other options, adjusting our supply chain strategy, evaluating potential operational changes to improve efficiencies, and considering potential adjustments to our pricing strategy.

As disclosed in Part I, Item 1A:

Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended September 27, 2024, the Company is subject to risks related to changes in tax laws or rulings.

On July 4, 2025, the One Big Beautiful Bill (OBBB) Act, which includes a broad range of tax reform provisions, was signed into law in the United States.

The Company is currently assessing the potential impact of the OBBB Act on our estimated annual effective tax rate.

Net sales of $180,655 for the third quarter of fiscal 2025 increased $8,183, or 5%, from the same period in the prior year.

The increase between quarterly periods was mainly driven by innovation and new product success across several of the Company's product categories.

Net sales of $140,935 for the first quarter of fiscal 2026 increased $33,286, or 31%, from the same period in the prior year.

The increase between quarterly periods was mainly driven by new product innovation and market stabilization between periods.

Gross margin increased to 36.6% compared to 29.9% in the prior year quarter.

In addition to the gross margin improvement, lower operating expenses also contributed to a $7,836 improvement in operating profit in the current year quarter versus the prior year quarter.

As of December 27, 2024, and as referenced in “Note 16 – Segments of Business” of the notes to the accompanying Condensed Consolidated Financial Statements, the Company has combined the previously reported "Camping" and "Watercraft Recreation" segments into one segment, referred to as "Camping & Watercraft Recreation."

During the first quarter of fiscal 2025, the Company's Diving segment completed an acquisition of a scuba equipment manufacturer for $12,197, which is expected to provide new innovative products, unlock synergies and enhance operating efficiencies for this segment.

See “Note 18 – Acquisitions” of the notes to the accompanying Condensed Consolidated Financial Statements for additional information.

Taking into account the seasonal nature of the Company's business, as described below, the increase in net sales and the significant increase in margin contributed to a $17,327 improvement in operating loss in the current year quarter versus the prior year quarter.

The Company’s business is seasonal in nature.

The third fiscal quarter traditionally falls within the Company’s primary selling season for its warm-weather outdoor recreation products.

The first fiscal quarter traditionally falls prior to the Company’s primary selling season for its warm-weather outdoor recreation products.

The table below sets forth a historical view of the Company’s seasonality during the last three fiscal years.

JOHNSON OUTDOORS INC.

2025 2024 2023

Quarter Ended Net

Sales Operating

Sales Operating (Profit)

Sales Operating

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Sales Operating

Profit (Loss)

December 18 % 125 % 23 % — % 27 % 47 %

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Results of Operations

JOHNSON OUTDOORS INC.

The Company’s net sales and operating profit (loss) by business segment for the periods shown below were as follows:

Three Months Ended Nine Months Ended

June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024

Three Months Ended

January 2, 2026 December 27, 2024

Fishing $ 112,370 $ 82,472

Camping & Watercraft Recreation

18,908 21,997 46,211 52,971

Diving 17,974 15,684

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See “Note 16 – Segments of Business” of the notes to the accompanying Condensed Consolidated Financial Statements for the definition of segment net sales and operating profit.

Net Sales - Third Fiscal Quarter

Consolidated net sales for the three months ended June 27, 2025 were $180,655, an increase of $8,183, or 5%, compared to $172,472 for the three months ended June 28, 2024.

Foreign currency translation had a negligible impact on current year third quarter net sales compared to the prior year's third quarter net sales.

Net sales for the three months ended June 27, 2025 for the Fishing business were $140,679, an increase of $10,142, or 8%, from $130,537 during the third fiscal quarter of the prior year.

The increase in sales in this segment between quarters was mainly due sales generated by the introduction of new products.

Net sales for the Camping & Watercraft Recreation business were $18,908 for the third quarter of the current fiscal year, a decrease of $3,089, or 14%, from the prior year net sales during the same period of $21,997.

As previously announced, the Company exited the Eureka!

brand in this segment and completed all sales of Eureka!

inventory in the first fiscal quarter of 2025.

There were no Eureka!

sales in the current year third quarter, compared to approximately $3,573 of Eureka!

sales in the prior year third quarter.

Excluding the impact of Eureka!

sales in the prior year third quarter, sales in this segment increased slightly over the prior year third quarter due to success of new Jetboil products introduced into the market by the Company.

Net sales for Diving for the third quarter of fiscal 2025 were $21,201, which increased $1,340, or 7%, compared to net sales of $19,861 for the three months ended June 28, 2024.

The sales increase over the prior year third quarter was primarily driven by modest improvements in market conditions across certain regions, which led to slightly higher demand in those regions.

Additionally, foreign currency translation had a favorable impact of approximately 2% on sales in this segment versus the prior year third quarter.

Net Sales - Year-To-Date

Consolidated net sales for the nine months ended June 27, 2025 were $456,653, a decrease of $30,319, or 6%, compared to $486,972 for the nine months ended June 28, 2024.

Foreign currency translation had a negligible impact on net sales of the current year to date period compared to the prior year to date period.

Net sales for the nine months ended June 27, 2025 for the Fishing business were $358,042, a decrease of $21,595, or 6%, from $379,637 during the prior year to date period.

The growth in sales of new products in the third quarter noted above, was not enough to offset declines in overall sales in this segment in the first two fiscal quarters of 2025 driven in large part by ongoing challenging market conditions.

JOHNSON OUTDOORS INC.

Net sales for the Camping & Watercraft Recreation business were $46,211 for the nine months ended June 27, 2025, a decrease of $6,760, or 13%, from the prior year net sales during the same period of $52,971.

As discussed above, the decrease over the prior year to date period is mainly attributable to $7,577 of Eureka!

sales in the prior year to date period that were not repeated in the current fiscal year due to the exit of the brand.

Diving net sales for the nine months ended June 27, 2025 were $52,705, which declined $1,558, or 3%, compared to net sales of $54,263 for the nine months ended June 28, 2024, due to continued soft market demand for our Diving segment products across most geographic regions during the first two fiscal quarters of 2025.

Foreign currency translation had a favorable impact of less than 1% on sales in this segment versus the prior year to date period.

Net Sales - First Fiscal Quarter

Consolidated net sales for the three months ended January 2, 2026 were $140,935, an increase of $33,286, or 31%, compared to $107,649 for the three months ended December 27, 2024.

Foreign currency translation had a negligible impact on current year first quarter consolidated net sales compared to the prior year's first quarter net sales.

Net sales for the three months ended January 2, 2026 for the Fishing business were $112,370, an increase of $29,898, or 36%, from $82,472 during the first fiscal quarter of the prior year.

The increase in sales in this segment between quarters was mainly due to improved trade inventory levels and sales generated by the launch of new products.

Net sales for the Camping & Watercraft Recreation business were $10,601 for the first quarter of the current fiscal year, an increase of $1,150, or 12%, from the prior year net sales during the same period of $9,451.

Growth in e-commerce channels overcame the unfavorable impact of a continuing weak end market for watercraft recreation.

Net sales for Diving for the first quarter of fiscal 2026 were $17,974, which increased $2,290, or 15%, compared to net sales of $15,684 for the three months ended December 27, 2024.

The sales increase over the prior year first quarter was primarily driven by the success of new products, particularly in the U.S.

Additionally, foreign currency translation had a favorable impact of approximately 4% on sales in this segment versus the prior year first quarter.

Cost of Sales

Cost of sales for the three months ended June 27, 2025 of $112,728 increased $2,078 compared to $110,650 for the three months ended June 28, 2024, due primarily to the increase in sales volumes over the prior year quarter.

Cost of sales for the nine months ended June 27, 2025 of $297,677 decreased $13,188 compared to $310,865 for the nine months ended June 28, 2024, mainly due to the decrease in sales volumes between year-to-date periods, partially offset by a shift in mix to higher cost products between year-to-date periods.

JOHNSON OUTDOORS INC.

Cost of sales for the three months ended January 2, 2026 of $89,325 increased $13,859 compared to $75,466 for the three months ended December 27, 2024, due primarily to the increase in sales volumes over the prior year quarter as well as higher costs from tariffs on purchased raw materials and components.

Higher material costs were offset in part by lower labor costs driven by efficiencies from cost cutting initiatives.

Gross Profit Margin

For the three months ended June 27, 2025, gross profit as a percentage of net sales increased to 37.6% compared to 35.8% in the three month period ended June 28, 2024, mainly as a result of improved overhead absorption driven by higher sales volumes between periods.

For the nine months ended June 27, 2025, gross profit as a percentage of net sales was 34.8% compared to 36.2% in the nine month period ended June 28, 2024.

The decrease in gross profit percentage over the prior year-to-date period was primarily due to promotional pricing on end-of-life products and a shift in mix to higher cost products between year-to-date periods.

For the three months ended January 2, 2026, gross profit as a percentage of net sales increased to 36.6% compared to 29.9% in the three month period ended December 27, 2024, mainly as a result of improved overhead absorption driven by higher sales volumes between periods as well as a favorable mix of products sold.

Pricing actions taken by the Company helped to offset the impact of incremental tariffs in the current year quarter.

Operating Expenses

Operating expenses were $60,597 for the three months ended June 27, 2025, compared to $62,328 for the three months ended June 28, 2024, for a decrease of $1,731 between quarters.

The main drivers of the decrease were lower commission rates, reduced promotional expenses, and lower professional services expenses, partially offset by a $2,012 increase in expense related to the Company's deferred compensation plan between quarters.

The deferred compensation expense is entirely offset in Other Income, as discussed below.

Operating expenses were $166,984 for the nine months ended June 27, 2025, compared to $176,820 for the nine months ended June 28, 2024, for a decrease of $9,836 between year-to-date periods.

Decreased sales volume-driven expenses and a $3,948 decrease in expense related to the Company's deferred compensation plan contributed to the variance versus the prior year-to-date period.

The decrease in deferred compensation expense is entirely offset in Other Income, as discussed below.

Operating expenses were $54,522 for the three months ended January 2, 2026, compared to $52,422 for the three months ended December 27, 2024.

The main drivers of the $2,100 increase between quarters were higher sales-volume related costs offset in part by lower warranty expenses.

Operating Profit/Loss

Operating profit on a consolidated basis for the three month period ended June 27, 2025 was $7,330, compared to operating loss of $506 in the third quarter of the prior fiscal year.

As discussed above, the increase in operating profit between quarters was driven by an increase in sales, gross margin improvements and a reduction in operating expenses between periods.

Operating loss on a consolidated basis for the nine month period ended June 27, 2025 was $8,008, compared to an operating loss of $713 in the prior year to date period.

As discussed above, the increase in operating loss between periods was driven primarily by lower sales volumes, promotional pricing and a shift in product mix toward lower margin products between year-to-date periods.

Interest expense was $49 and $37 for the three months ended June 27, 2025 and June 28, 2024, respectively, and $164 and $115 for the nine months ended June 27, 2025 and June 28, 2024, respectively.

Interest income was $927 and $1,123 for the three months ended June 27, 2025 and June 28, 2024, respectively, and $2,585 and $3,178 for the nine months ended June 27, 2025 and June 28, 2024, respectively.

JOHNSON OUTDOORS INC.

Operating loss on a consolidated basis for the three month period ended January 2, 2026 was $2,912, compared to operating loss of $20,239 in the first quarter of the prior fiscal year.

As discussed above, the improvement in operating loss between quarters was driven primarily by an increase in sales and gross margin improvements between periods.

Interest expense was $57 and $47 for the three months ended January 2, 2026 and December 27, 2024, respectively.

Interest income was $1,320 and $1,033 for the three months ended January 2, 2026 and December 27, 2024, respectively.

Other Expense (Income), net

Other income was $2,292 for the three months ended June 27, 2025 compared to $327 in the prior year period.

The main driver of the $1,965 increase over the prior year quarter was a $2,012 increase in net investment gains and earnings on the assets related to the Company’s non-qualified deferred compensation plan in the current year quarter over the prior year quarter, entirely offset in operating expenses as noted above.

For the three months ended June 27, 2025, foreign currency exchange losses were $456 compared to $28 for the three months ended June 28, 2024.

For the nine months ended June 27, 2025, other income was $1,318, compared to $7,468 in the nine months ended June 28, 2024.

The $6,150 decrease between year-to-date periods was mostly attributable to a $3,948 decrease in net investment gains and earnings on the assets related to the Company’s non-qualified deferred compensation plan in the current year to date period over the prior year to date period, entirely offset as a reduction to operating expense as noted above.

Additionally, the prior year to date period included a gain on the sale of a building of approximately $1,900.

For the nine months ended June 27, 2025, foreign currency exchange losses were $274 compared to $173 for the nine months ended June 28, 2024.

Other income was $394 for the three months ended January 2, 2026 compared to $326 in the prior year period.

For the three months ended January 2, 2026, foreign currency exchange losses were $69 compared to foreign currency exchange gains of $203 for the three months ended December 27, 2024.

Income Tax Expense

The Company’s provision for income taxes is based upon estimated annual effective tax rates in the tax jurisdictions in which the Company operates.

The effective tax rates for the three and nine month periods ended June 27, 2025 were an expense of 26.3% and a benefit of 22.8%, respectively, compared to a benefit of 78.8% and an expense of 21.2% in the corresponding periods of the prior year.

The Company recorded income tax expense of $2,045 in the three month period ended January 2, 2026 which equated to an effective tax rate of (162.9)% which was impacted by an adjustment related to its U.S.

valuation allowance on deferred tax assets.

The Company recorded a benefit of $3,637 in the corresponding period of the prior year which equated to an effective tax rate of 19.2%.

Net Income/Loss

Net income for the three months ended June 27, 2025 was $7,742, or $0.75 per diluted common class A and B share, compared to $1,622, or $0.16 per diluted common class A and B share, for the third quarter of the prior fiscal year.

Net loss for the nine months ended June 27, 2025 was $5,244, or $0.52 per diluted common class A and B share, compared to net income of $7,733, or $0.75 per diluted common class A and B share, for the third quarter of the prior fiscal year.

Net loss for the three months ended January 2, 2026 was $3,300, or $0.33 per diluted common class A and B share, compared to $15,290, or $1.49 per diluted common class A and B share, for the first quarter of the prior fiscal year.

Liquidity and Financial Condition

Cash and cash equivalents and short term investments totaled $161,022 as of June 27, 2025, compared to $148,369 as of June 28, 2024.

The Company’s debt to total capitalization ratio was 0% as of June 27, 2025 and June 28, 2024.

The Company’s total debt balance was $0 as of each of June 27, 2025 and June 28, 2024.

See “Note 11 – Indebtedness” in the notes to the Company’s accompanying condensed consolidated financial statements for further discussion.

Accounts receivable, net of allowance for credit losses, were $81,993 as of June 27, 2025, an increase of $2,400 compared to $79,593 as of June 28, 2024.

Cash and cash equivalents and short term investments totaled $130,731 as of January 2, 2026, compared to $101,617 as of December 27, 2024.

The Company’s debt to total capitalization ratio was 0% as of January 2, 2026 and December 27, 2024.

The Company’s total debt balance was $0 as of each of January 2, 2026 and December 27, 2024.

See “Note 11 – Indebtedness” in the notes to the Company’s accompanying condensed consolidated financial statements for further discussion of our credit facilities.

Accounts receivable, net of allowance for credit losses, were $85,108 as of January 2, 2026, an increase of $16,811 compared to $68,297 as of December 27, 2024.

The increase is consistent with the increased sales volumes over the prior year quarter.

Inventories were $163,732 as of June 27, 2025, a decrease of $59,428, compared to $223,160 as of June 28, 2024.

The decrease is consistent with the Company's ongoing efforts to reduce inventory balances.

Accounts payable were $43,478 at June 27, 2025 compared to $43,153 as of June 28, 2024.

Inventories were $183,940 as of January 2, 2026, a decrease of $17,666, compared to $201,606 as of December 27, 2024.

JOHNSON OUTDOORS INC.

decrease is consistent with the Company's ongoing efforts to reduce inventory balances.

Accounts payable were $48,135 at January 2, 2026 compared to $33,491 as of December 27, 2024.

The Company’s cash flows from operating, investing and financing activities, as presented in the Company’s accompanying Condensed Consolidated Statements of Cash Flows, are summarized in the following table:

Nine months ended

(thousands) June 27,

2025 June 28,

Three months ended

(thousands) January 2,

2026 December 27,

Cash provided by (used for):

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Effect of foreign currency rate changes on cash 519 (3,369)

Increase in cash and cash equivalents $ 13,193 $ 14,969

JOHNSON OUTDOORS INC.

Decrease in cash and cash equivalents $ (45,668) $ (50,228)

Operating Activities

Cash provided by operations totaled $32,810 for the nine months ended June 27, 2025 compared to $21,899 during the corresponding period of the prior fiscal year.

The increase in cash provided by operations over the prior year nine month period was due primarily to cash provided by working capital reductions between quarters, partially offset by lower income on decreased sales volumes between year-to-date periods.

Depreciation and amortization charges were $15,299 for the nine month period ended June 27, 2025 compared to $14,799 for the corresponding period of the prior year.

Cash used for operations totaled $38,415 for the three months ended January 2, 2026 compared to $36,909 during the corresponding period of the prior fiscal year.

The increase in cash used for operations over the prior year three month period was due primarily to working capital changes between quarters.

Depreciation and amortization charges were $5,099 for the three month period ended January 2, 2026 compared to $4,803 for the corresponding period of the prior year.

Investing Activities

Cash used for investing activities totaled $10,002 for the nine months ended June 27, 2025 compared to cash provided by investing activities of $3,225 for the corresponding period of the prior fiscal year.

Current year cash used for investing activities reflects $12,197 paid to acquire a business, partially offset by the maturity of investments of $14,021.

The prior year period included proceeds from maturity of investments of $19,650, as well as proceeds from the sale of a building of $2,244.

Capital expenditures were $11,826 in the nine months ended June 27, 2025, compared to $16,449 in the prior year to date period which included investments in expansion of Fishing facilities to accommodate additional production.

Cash used for investing activities totaled $4,293 for the three months ended January 2, 2026 compared to $6,500 for the corresponding period of the prior fiscal year.

The prior year period reflects $12,180 paid to acquire a business, partially offset by proceeds from maturity of investments of $9,764.

Capital expenditures were $4,293 in the three months ended January 2, 2026, compared to $4,084 in the prior year to date period.

Any additional capital expenditures in fiscal 2026 are expected to be funded by working capital.

Financing Activities

Cash used for financing activities totaled $10,142 for the nine months ended June 27, 2025 compared to $10,136 for the nine month period ended June 28, 2024 and, for both periods, represents the payment of dividends and purchase of treasury stock.

The Company had no debt during either nine month period ended June 27, 2025 and June 28, 2024.

Cash used for financing activities totaled $3,479 for the three months ended January 2, 2026 compared to $3,450 for the three month period ended December 27, 2024 and represents the payment of dividends and purchase of treasury stock for both periods.

The Company had no debt during either three month period ended January 2, 2026 and December 27, 2024.

See Note 11 "Indebtedness" to the accompanying Condensed Consolidated Financial Statements for additional information on our credit facilities.

As of June 27, 2025 the Company held approximately $66,152 of cash, cash equivalents and short-term investments in bank accounts in foreign taxing jurisdictions.

As of January 2, 2026 the Company held approximately $66,152 of cash, cash equivalents and short-term investments in bank accounts in foreign taxing jurisdictions.

Contractual Obligations and Off Balance Sheet Arrangements

The Company has contractual obligations and commitments to make future payments including under operating leases and open purchase orders.

There have been no changes outside of the ordinary course of business in the specified contractual obligations during the quarter ended June 27, 2025.

There have been no changes outside of the ordinary course of business in the specified contractual obligations during the quarter ended January 2, 2026.

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers compensation insurance.

Letters of credit outstanding were approximately $67 and $67 as of June 27, 2025 and June 28, 2024, respectively.

Letters of credit outstanding were approximately $67 and $67 as of January 2, 2026 and December 27, 2024, respectively.

The Company has no other off-balance sheet arrangements.

Critical Accounting Policies and Estimates

The Company’s critical accounting policies and estimates are identified in the Company’s Annual Report on Form 10-K for the fiscal year ending September 27, 2024 in Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading “Critical Accounting Estimates”, which was filed with the Securities and Exchange Commission on December 11, 2024.

There were no significant changes to the Company’s critical accounting policies and estimates during the nine months ended June 27, 2025.

JOHNSON OUTDOORS INC.

The Company’s critical accounting policies and estimates are identified in the Company’s Annual Report on Form 10-K for the fiscal year ending October 3, 2025 in Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading “Critical Accounting Estimates”, which was filed with the Securities and Exchange Commission on December 12, 2025.

There were no significant changes to the Company’s critical accounting policies and estimates during the three months ended January 2, 2026.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis