JOHNSON OUTDOORS INC 10-Q

Item 1. Financial Statements CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Six Months Ended (thousands, except per share data) April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025 Net sales $ 194,480 $ 168,349 $ 335,415 $ 275,998 Cost of sales 118,992 109,483 208,317 184,949 Gross profit 75,488 58,866 127,098 91,049 Operating expenses: Marketing and selling 43,267 34,644 76,771 65,028 Administrative management, finance and information systems 13,305 11,235 26,461 25,711 Research and development 8,567 8,086 16,429 15,648 Total operating expenses 65,139 53,965 119,661 106,387 Operating income (loss) 10,349 4,901 7,437 ( 15,338 ) Interest income ( 632 ) ( 625 ) ( 1,952 ) ( 1,658 ) Interest expense 48 68 105 115 Other expense (income), net 726 1,300 332 974 Income (loss) before income taxes 10,207 4,158 8,952 ( 14,769 ) Income tax expense (benefit) 798 1,854 2,843 ( 1,783 ) Net income (loss) $ 9,409 $ 2,304 $ 6,109 $ ( 12,986 ) Weighted average common shares - Basic: Class A 9,091 9,049 9,083 9,044 Class B 1,206 1,208 1,206 1,208 Participating securities 86 15 81 20 Weighted average common shares - Dilutive 10,383 10,272 10,370 10,272 Net income (loss) per common share - Basic: Class A $ 0.91 $ 0.22 $ 0.58 $ ( 1.26 ) Class B $ 0.83 $ 0.22 $ 0.58 $ ( 1.26 ) Net income (loss) per common share - Diluted: Class A $ 0.89 $ 0.22 $ 0.58 $ ( 1.26 ) Class B $ 0.89 $ 0.22 $ 0.58 $ ( 1.26 ) The accompanying notes are an integral part of the condensed consolidated financial statements. - 1 - Index JOHNSON OUTDOORS INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) Three Months Ended Six Months Ended (thousands) April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025 Net income (loss) $ 9,409 $ 2,304 $ 6,109 $ ( 12,986 ) Other comprehensive income (loss): Foreign currency translation ( 1,584 ) 1,133 ( 489 ) ( 3,782 ) Unrealized (loss) gain on available-for-sale securities, net of tax — ( 4 ) — ( 5 ) Change in pension plans, net of tax 8 7 16 16 Total other comprehensive income (loss) ( 1,576 ) 1,136 ( 473 ) ( 3,771 ) Total comprehensive income (loss) $ 7,833 $ 3,440 $ 5,636 $ ( 16,757 ) The accompanying notes are an integral part of the condensed consolidated financial statements. - 2 - Index JOHNSON OUTDOORS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (thousands, except share data) April 3, 2026 October 3, 2025 March 28, 2025 ASSETS Current assets: Cash and cash equivalents $ 107,876 $ 176,399 $ 89,636 Short term investments — — 4,315 Accounts receivable, net 126,852 50,454 116,776 Inventories 186,900 170,726 180,057 Other current assets 6,100 11,209 16,295 Total current assets 427,728 408,788 407,079 Property, plant and equipment, net of accumulated depreciation of $ 217,366 , $ 210,262 and $ 198,416 , respectively 94,823 93,744 94,956 Right of use assets 43,846 46,570 46,978 Deferred income taxes 1,518 3,074 27,252 Goodwill 10,638 10,456 9,890 Other intangible assets, net 9,229 9,529 9,682 Deferred compensation plan assets 28,992 30,681 27,396 Other assets 1,499 1,261 1,241 Total assets $ 618,273 $ 604,103 $ 624,474 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 52,332 $ 40,085 $ 44,323 Current lease liability 8,478 8,260 8,130 Accrued liabilities: Salaries, wages and benefits 20,880 20,649 14,282 Accrued warranty 15,142 12,149 12,066 Income taxes payable 681 1,757 1,287 Accrued discounts and returns 8,915 7,063 9,521 Accrued customer programs 4,161 4,373 4,563 Other 12,192 10,304 10,661 Total current liabilities 122,781 104,640 104,833 Non-current lease liability 37,507 40,424 40,695 Deferred income taxes 2,057 2,061 1,838 Retirement benefits 1,703 1,706 1,600 Deferred compensation liability 28,993 30,681 27,425 Other liabilities 6,347 6,172 6,981 Total liabilities 199,388 185,684 183,372 Shareholders’ equity: Common stock: Class A shares issued and outstanding: 9,268,482 , 9,166,621 and 9,158,300 , respectively 465 460 460 Class B shares issued and outstanding: 1,206,210 , 1,206,210 and 1,207,760 , respectively 61 61 61 Capital in excess of par value 93,616 91,867 91,599 Retained earnings 321,039 321,768 349,872 Accumulated other comprehensive income 6,815 7,289 2,193 Treasury stock at cost, shares of Class A common stock: 50,327 , 48,259 and 49,001 , respectively ( 3,111 ) ( 3,026 ) ( 3,083 ) Total shareholders’ equity 418,885 418,419 441,102 Total liabilities and shareholders’ equity $ 618,273 $ 604,103 $ 624,474 The accompanying notes are an integral part of the condensed consolidated financial statements. - 3 - Index JOHNSON OUTDOORS INC. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited) Six Months Ended April 3, 2026 (thousands except for shares) Shares Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock BALANCE AT OCTOBER 3, 2025 10,372,831 $ 521 $ 91,867 $ 321,768 $ 7,289 $ ( 3,026 ) Net loss — — — ( 3,300 ) — — Dividends declared — — — ( 3,399 ) — — Award of non-vested shares 82,172 4 ( 4 ) — — — Stock-based compensation — — 806 — — — Currency translation adjustment — — — — 1,095 — Change in pension plans, net of tax of $ 3 — — — — 8 — Purchase of treasury stock at cost ( 1,949 ) — — — — ( 80 ) BALANCE AT JANUARY 2, 2026 10,453,054 $ 525 $ 92,669 $ 315,069 $ 8,392 $ ( 3,106 ) Net income — — — 9,409 — — Dividends declared — — — ( 3,439 ) — — Award of non-vested shares 21,757 1 ( 1 ) — — — Stock-based compensation — — 948 — — — Currency translation adjustment — — — — ( 1,584 ) — Change in pension plans, net of tax of $ 2 — — — — 7 — Purchase of treasury stock at cost ( 119 ) — — — — ( 5 ) BALANCE AT APRIL 3, 2026 10,474,692 $ 526 $ 93,616 $ 321,039 $ 6,815 $ ( 3,111 ) - 4 - Index JOHNSON OUTDOORS INC. Six Months Ended March 28, 2025 (thousands except for shares) Shares Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income Treasury Stock BALANCE AT SEPTEMBER 27, 2024 10,301,738 $ 517 $ 90,146 $ 369,592 $ 5,964 $ ( 2,795 ) Net loss — — — ( 15,290 ) — — Dividends declared — — — ( 3,362 ) — — Award of non-vested shares 32,121 1 ( 1 ) — — — Stock-based compensation — — 507 — — — Currency translation adjustment — — — — ( 4,915 ) — Unrealized loss on available-for-sale securities, net of tax — — — — ( 1 ) — Change in pension plans, net of tax of $ 3 — — — — 9 — Non-vested stock forfeitures ( 3,690 ) — 200 — — ( 200 ) Purchase of treasury stock at cost ( 2,657 ) — — — — ( 88 ) BALANCE AT DECEMBER 27, 2024 10,327,512 $ 518 $ 90,852 $ 350,940 $ 1,057 $ ( 3,083 ) Net income — — — 2,304 — — Dividends declared — — — ( 3,372 ) — — Award of non-vested shares 38,548 3 ( 3 ) — — Stock-based compensation — — 750 — — — Currency translation adjustment — — — — 1,133 — Unrealized loss on available-for-sales securities, net of tax — — — — ( 4 ) — Change in pension plans, net of tax of $ 3 — — — — 7 — BALANCE AT MARCH 28, 2025 10,366,060 $ 521 $ 91,599 $ 349,872 $ 2,193 $ ( 3,083 ) The accompanying notes are an integral part of the condensed consolidated financial statements. - 5 - Index JOHNSON OUTDOORS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Six Months Ended (thousands) April 3, 2026 March 28, 2025 CASH USED FOR OPERATING ACTIVITIES Net income (loss) $ 6,109 $ ( 12,986 ) Adjustments to reconcile net income (loss) to net cash used for operating activities: Depreciation 9,783 9,765 Amortization of intangible assets 314 276 Amortization of deferred financing costs 34 23 Stock based compensation 1,754 1,257 Loss on disposal of productive assets 113 81 Deferred income taxes 1,563 ( 3,652 ) Change in operating assets and liabilities: Accounts receivable, net ( 76,483 ) ( 76,242 ) Inventories, net ( 16,320 ) 30,768 Accounts payable and accrued liabilities 17,509 12,417 Other current assets 5,108 ( 69 ) Other non-current assets ( 275 ) — Other long-term liabilities 234 ( 990 ) Other, net ( 143 ) 786 ( 50,700 ) ( 38,566 ) CASH USED FOR INVESTING ACTIVITIES Payments for purchase of businesses — ( 12,197 ) Proceeds from maturity of short-term investments — 11,826 Proceeds from sale of productive assets 21 — Capital expenditures ( 10,496 ) ( 7,378 ) ( 10,475 ) ( 7,749 ) CASH USED FOR FINANCING ACTIVITIES Debt issuance costs paid — ( 55 ) Dividends paid ( 6,812 ) ( 6,736 ) Purchases of treasury stock ( 85 ) ( 88 ) ( 6,897 ) ( 6,879 ) Effect of foreign currency rate changes on cash ( 451 ) ( 2,668 ) Decrease in cash and cash equivalents ( 68,523 ) ( 55,862 ) CASH AND CASH EQUIVALENTS Beginning of period 176,399 145,498 End of period $ 107,876 $ 89,636 Supplemental Disclosure: Cash paid for taxes $ 1,224 $ 1,583 Accrued dividends 27 ( 2 ) Cash paid for interest 39 88 Non-cash treasury stock activity — 200 The accompanying notes are an integral part of the condensed consolidated financial statements. - 6 - Index JOHNSON OUTDOORS INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1 BASIS OF PRESENTATION The condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Johnson Outdoors Inc. and subsidiaries (collectively, the “Company”) as of April 3, 2026 and March 28, 2025, and their results of operations for the three and six month periods then ended and cash flows for the six month periods then ended. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in 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. All monetary amounts, other than share and per share amounts, are stated in thousands. 2 ACCOUNTS RECEIVABLE Accounts receivable are stated net of allowances for credit losses of $ 1,234 , $ 1,232 and $ 692 as of April 3, 2026, October 3, 2025 and March 28, 2025, respectively. The determination of the allowance for credit losses is based on a combination of factors. In circumstances where specific collection concerns about a receivable exist, a reserve is established to value the affected account receivable at an amount the Company believes will be collected. For all other customers, the Company recognizes allowances for credit losses based on historical experience of bad debts as a percent of accounts receivable outstanding for each business segment. Uncollectible accounts are written off against the allowance for credit losses after collection efforts have been exhausted. The Company typically does not require collateral on its accounts receivable. 3 EARNINGS PER SHARE (“EPS”) Net income or loss per share of Class A common stock and Class B common stock is computed using the two-class method. Grants of restricted stock which receive non-forfeitable dividends are classified as participating securities and are required to be included as part of the basic weighted average share calculation under the two-class method. Holders of Class A common stock are entitled to cash dividends equal to 110 % of all dividends declared and paid on each share of Class B common stock. The Company grants shares of unvested restricted stock in the form of Class A shares, which carry the same distribution rights as the Class A common stock described above. As such, the undistributed earnings for each period are allocated to each class of common stock based on the proportionate share of the amount of cash dividends that each such class is entitled to receive. Basic EPS Basic net income or loss per share is computed by dividing net income or loss allocated to Class A common stock and Class B common stock by the weighted-average number of shares of Class A common stock and Class B common stock outstanding, respectively. In periods with cumulative year to date net income and undistributed income, the undistributed income for each period is allocated to each class of common stock based on the proportionate share of the amount of cash dividends that each such class is entitled to receive. In periods where there is a cumulative year to date net loss or no undistributed income because distributions through dividends exceed net income, Class B shares are treated as anti-dilutive and, therefore, net losses are allocated equally on a per share basis among all participating securities. For the three month period ended April 3, 2026, basic income per share for the class A and Class B shares has been presented using the two class method and reflects the allocation of undistributed income described above. For the six month period ended April 3, 2026 and the three and six month periods ended March 28, 2025, basic net income (loss) per share for Class A and Class B shares was the same because there were no cumulative undistributed earnings. Diluted EPS Diluted net income per share is computed by dividing allocated net income by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options, restricted stock units (“stock units” or “units”) and non-vested restricted stock. Anti-dilutive stock options, units and non-vested stock are excluded from the - 7 - Index JOHNSON OUTDOORS INC. calculation of diluted EPS. The computation of diluted net income per share of Class A common stock assumes that Class B common stock is converted into Class A common stock. Therefore, diluted net income per share is the same for both Class A and Class B common shares. In periods where the Company reports a net loss or no undistributed income because distributions through dividends exceed net income, the effect of anti-dilutive stock options and units is excluded and diluted loss per share is equal to basic loss per share for both classes of stock. For the three month period ended April 3, 2026, diluted net income per share reflects the effect of dilutive stock units and assumes the conversion of Class B common stock into Class A common stock. For the six month period ended April 3, 2026 and the three and six month periods ended March 28, 2025, the effect of non-vested restricted stock units is excluded from the diluted income (loss) per share calculation as their inclusion would have been anti-dilutive. Shares of non-vested stock that could potentially dilute earnings per share in the future which were not included in the fully diluted computation because they would have been anti-dilutive totaled 164,187 and 69,486 for the three months ended April 3, 2026 and March 28, 2025, respectively, and 152,639 and 64,525 for the six months ended April 3, 2026 and March 28, 2025, respectively. Stock units that could potentially dilute earnings per share in the future and which were not included in the fully diluted computation because they would have been anti-dilutive were 58,192 and 105,840 for the three months ended April 3, 2026 and March 28, 2025, respectively, and 61,749 and 101,625 for the six months ended April 3, 2026 and March 28, 2025, respectively. Dividends per share Dividends per share for the three and six month periods ended April 3, 2026 and March 28, 2025 were as follows: Three Months Ended Six months ended April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025 Dividends declared per common share: Class A $ 0.33 $ 0.33 $ 0.66 $ 0.66 Class B $ 0.30 $ 0.30 $ 0.60 $ 0.60 4 STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS The Company’s current stock ownership plans allow for issuance of stock options to acquire shares of Class A common stock by key executives and non-employee directors. Current plans also allow for issuance of shares of restricted stock, restricted stock units or stock appreciation rights in lieu of stock options. Under the Company’s 2023 Non-Employee Director Stock Ownership Plan and the 2020 Long-Term Incentive Plan (the only plans where shares currently remain available for future equity incentive awards) there were a total of 652,329 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at April 3, 2026. Share awards previously made under the Company's 2012 Non-Employee Director Stock Ownership Plan, which no longer allow for additional share grants, also remain outstanding. Non-vested Stock All shares of non-vested restricted stock awarded by the Company have been granted in the form of shares of Class A common stock at their fair market value on the date of grant and vest within one year from the date of grant for stock granted to directors and within a period ranging from one to four years from the date of grant for stock granted to officers and employees, based on the terms of the agreement with such officer or employee. The fair value at date of grant is based on the number of shares granted and the average of the Company’s high and low Class A common stock price on the date of grant or, if the Company’s Class A shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock price on the last preceding date on which the Company’s Class A shares traded. - 8 - Index JOHNSON OUTDOORS INC. A summary of non-vested stock activity for the six months ended April 3, 2026 related to the Company’s stock ownership plans is as follows: Shares Weighted Average Grant Price Non-vested stock at October 3, 2025 92,894 $ 40.56 Non-vested stock grants 102,881 43.26 Restricted stock vested ( 39,223 ) 36.27 Non-vested stock at April 3, 2026 156,552 43.41 Non-vested stock grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of shares by tendering a portion of the vested shares back to the Company. Shares tendered back to the Company were 2,068 and 1,609 during the six month periods ended April 3, 2026 and March 28, 2025, respectively. Stock compensation expense, net of forfeitures, related to non-vested stock was $ 777 and $ 462 for the three month periods ended April 3, 2026 and March 28, 2025, respectively, and $ 1,421 and $ 816 for the six month periods ended April 3, 2026 and March 28, 2025, respectively. Unrecognized compensation cost related to non-vested stock as of April 3, 2026 was $ 4,676 , which amount will be amortized to expense through December 2028 or adjusted for changes in future estimated or actual forfeitures. The fair value of restricted stock vested during the six month periods ended April 3, 2026 and March 28, 2025 was $ 276 and $ 690 , respectively. Restricted Stock Units All restricted stock units (RSUs) awarded by the Company have been granted in the form of units payable in shares of Class A common stock upon vesting. The units are valued at the fair market value of a share of Class A common stock on the date of grant and vest within one year from the date of grant for RSUs granted to directors, and subject to satisfaction of applicable performance and/or continued service criteria, three years from the date of grant for RSUs granted to employees. The fair value at the date of grant is based on the number of units granted and the average of the Company’s high and low Class A common stock trading price on the date of grant or, if the Company’s Class A shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock trading price on the last preceding date on which the Company’s Class A shares traded. A summary of RSU activity for the six months ended April 3, 2026 follows: Number of RSUs Weighted Average Grant Price RSUs at October 3, 2025 121,253 $ 44.76 RSUs granted 28,899 40.92 RSUs vested and canceled due to performance targets not being met ( 31,250 ) 56.54 RSUs at April 3, 2026 118,902 40.73 The Company recognized expense related to RSUs of $ 171 and $ 160 for the three month periods ended April 3, 2026 and March 28, 2025, respectively, and $ 333 and $ 276 for the six month periods ended April 3, 2026 and March 28, 2025, respectively. Unrecognized compensation cost related to non-vested RSUs as of April 3, 2026 was $ 1,592 , which amount will be amortized to expense through September 2028 or adjusted for changes in future estimated or actual forfeitures. RSU grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of units and issuance of unrestricted shares of Class A common stock by tendering a portion of such unrestricted shares back to the Company. Shares tendered back to the Company for this purpose were 0 during both of the six month periods ended April 3, 2026 and March 28, 2025. The fair value of restricted stock units recognized as a tax deduction during the six month periods ended April 3, 2026 and March 28, 2025 was $ 0 and $ 0 , respectively. - 9 - Index JOHNSON OUTDOORS INC. Compensation expense related to units earned by employees (as opposed to grants to outside directors) is based upon the attainment of certain pre-determined financial performance goals for the Company. For awards made in fiscal 2026, those goals are based on fiscal 2026 net sales and pre-tax income as a percentage of sales, weighted equally. The awards cover a one-year performance period but have a time based vesting requirement of three years . Awards are only paid if at least 70 % of the target levels are met, and maximum payouts are made if 120 % or more of target levels are achieved. The payouts for achievement at the threshold levels of performance are equal to 25 % of the target award amount. The payouts for achievement at maximum levels of performance are equal to 200 % of the target award amount for units granted in fiscal 2026. For the units granted prior to fiscal 2026, the financial goals are related to cumulative net sales and cumulative pre-tax income, weighted equally, and are measured over a three-year performance period. Awards are only paid if at least 80 % of the target levels are met, and maximum payouts are made if 120 % or more of target levels are achieved. The payouts for achievement at the threshold levels of performance are equal to 50 % of the target award amount. The payouts for achievement at maximum levels of performance are equal to 150 % of the target award amount for units awarded prior to fiscal 2025 and payouts for achievement at maximum levels of performance are equal to 200 % of the target award amount for units awarded in fiscal 2025. To the extent earned, awards are issued in shares of Company Class A common stock after the end of the vesting period. Employees’ Stock Purchase Plan The Company’s shareholders previously adopted the Johnson Outdoors Inc. 2009 Employees’ Stock Purchase Plan, which was most recently amended on March 2, 2017, but was terminated effective as of May 9, 2025. Prior to termination, this plan provided for the issuance of shares of Class A common stock at a purchase price of not less than 85 % of the fair market value of such shares on the date of grant or on the date of purchase, whichever is lower. During the three and six month periods ended April 3, 2026, the Company issued 0 shares of Class A common stock and recognized $ 0 of income in connection with the Employees' Stock Purchase Plan. During the three month period ended March 28, 2025, the Company issued 0 shares of Class A common stock and recognized $ 128 of expense in connection with this plan. During the six month period ended March 28, 2025, the Company issued 0 shares of Class A common stock and recognized $ 165 of expense in connection with this plan. 5 LEASES The Company leases certain facilities and machinery and equipment under long-term, non-cancelable operating leases. The Company determines if an arrangement is a lease at inception. As of April 3, 2026, the Company had approximately 150 leases, with remaining terms ranging from less than one year to 14 years. Some of the leases contain variable payment terms, such as payments based on fluctuations in the Consumer Price Index (CPI). Some leases also contain options to extend or terminate the lease. To the extent the Company is reasonably certain to exercise these options, they have been considered in the calculation of the right-of-use ("ROU") assets and lease liabilities. Under current lease agreements, there are no residual value guarantees or restrictive lease covenants. In calculating the ROU assets and lease liabilities, several assumptions and judgments were made by the Company, including whether a contract is or contains a lease under the applicable definition, and the determination of the discount rate, which is assumed to be the incremental borrowing rate. The incremental borrowing rate is derived from information available to the Company at the lease commencement date based on lease length and location. The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended April 3, 2026 and March 28, 2025 were as follows: - 10 - Index JOHNSON OUTDOORS INC. Three months ended Six months ended April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025 Lease Cost Operating lease costs $ 2,683 $ 2,647 $ 5,342 $ 5,271 Short-term lease costs 544 561 1,117 1,128 Variable lease costs 58 50 116 99 Total lease cost $ 3,285 $ 3,258 $ 6,575 $ 6,498 Included in the amounts in the table above were rent expense to related parties of $ 314 and $ 627 for the three and six months ended April 3, 2026, respectively, and $ 313 and $ 627 for the three and six months ended March 28, 2025, respectively. As of April 3, 2026, the Company did not have any finance leases or sublease agreements. Additionally, the Company does not have any leases in which it is the lessor. While the Company extended or renewed various existing leases during the quarter, there were no significant new leases entered into during the quarter ended April 3, 2026. As of April 3, 2026, the Company did not have any significant operating lease commitments that have not yet commenced. Supplemental balance sheet, cash flow, and other information related to operating leases was as follows: Six months ended April 3, 2026 March 28, 2025 Operating leases: Operating lease ROU assets $ 43,846 $ 46,978 Current operating lease liabilities 8,478 8,130 Non-current operating lease liabilities 37,507 40,695 Total operating lease liabilities $ 45,985 $ 48,825 Weighted average remaining lease term (in years) 9.88 10.59 Weighted average discount rate 3.38 % 3.4 % Cash paid for amounts included in the measurement of lease liabilities $ 5,210 $ 5,028 ROU assets obtained in exchange for lease liabilities $ 1,897 $ 4,032 Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at April 3, 2026 were as follows: - 11 - Index JOHNSON OUTDOORS INC. Year Related parties included in total Total Remainder of 2026 $ 677 $ 5,247 2027 226 8,980 2028 — 5,743 2029 — 4,120 2030 — 3,799 Thereafter — 26,539 Total undiscounted lease payments 903 54,428 Less: Imputed interest ( 5 ) ( 8,443 ) Total net lease liability $ 898 $ 45,985 6 INCOME TAXES For the three and six months ended April 3, 2026 and March 28, 2025, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows: Three Months Ended Six Months Ended (thousands, except tax rate data) April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025 Income (Loss) before income taxes $ 10,207 $ 4,158 $ 8,952 $ ( 14,769 ) Income tax expense (benefit) 798 1,854 2,843 ( 1,783 ) Effective income tax rate 7.8 % 44.6 % 31.8 % 12.1 % The change in the Company’s effective tax rate for the three and six months ended April 3, 2026 compared to the three and six months ended March 28, 2025 was primarily due to an adjustment related to its U.S. valuation allowance on deferred tax assets. Additionally, the change was further driven by the geographic mix of profits or losses from a tax perspective in the current year. The Company's effective tax rate is impacted by valuation allowances in domestic and certain foreign tax jurisdictions and, as a result, changes in the geographic source of Company profits or losses between periods can, in certain instances, have varying impacts on the Company's effective tax rate during a particular period. The Company maintains valuation allowances when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In determining whether a valuation allowance is required, the Company considers such factors as prior earnings history, expected future earnings, carry-back and carry-forward periods, and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset. Due to recent operating losses in the U.S., the Company has evaluated the realizability of U.S. net deferred tax assets. The Company determined during fiscal year 2025 that it was more likely than not that certain deferred tax assets will not be realized and a valuation allowance was reported against the net deferred tax assets for the U.S. The impact of the Company’s operations in jurisdictions where a valuation allowance is assessed is removed from the overall effective tax rate methodology and recorded directly based on year to date results for the year for which no tax expense or benefit can be recognized. The significant tax jurisdictions that have a valuation allowance for the periods ended April 3, 2026 and March 28, 2025 were: April 3, 2026 March 28, 2025 Indonesia Indonesia Switzerland Switzerland United States - 12 - Index JOHNSON OUTDOORS INC. The Company regularly assesses the adequacy of its provisions for income tax contingencies in accordance with the applicable authoritative guidance on accounting for income taxes. As a result, the Company may adjust the reserves for unrecognized tax benefits due to the impact of changes in its assumptions or as a result of new facts and developments, such as changes to interpretations of relevant tax law, assessments from taxing authorities, settlements with taxing authorities and lapses of statutes of limitation. In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized benefits as a component of income tax expense. 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. We do not expect the Act to have a material impact. 7 INVENTORIES The Company values inventory at the lower of cost (determined using the first-in first-out method) or net realizable value. Inventories at the end of the respective periods consisted of the following: April 3, 2026 October 3, 2025 March 28, 2025 Raw materials $ 91,747 $ 90,993 $ 96,172 Finished goods 95,153 79,733 83,885 $ 186,900 $ 170,726 $ 180,057 8 GOODWILL The changes in goodwill during the six months ended April 3, 2026 and March 28, 2025 were as follows: April 3, 2026 March 28, 2025 Balance at beginning of period $ 10,456 $ — Acquisitions — 10,231 Amount attributable to movements in foreign currency rates 182 ( 341 ) Balance at end of period $ 10,638 $ 9,890 The goodwill at April 3, 2026 relates to the acquisition of Endless Summer Technologies Proprietary, Ltd. in the Company's Diving segment. See Note 18 below for additional information on this acquisition. The Company evaluates the carrying value of goodwill for a reporting unit on an annual basis or more frequently when events and circumstances warrant such an evaluation. In conducting this analysis, the Company uses the income approach to compare the reporting unit's carrying value to its indicated fair value. Fair value is determined primarily by using a discounted cash flow methodology that requires considerable management judgment and long-term assumptions and is considered a Level 3 (unobservable) fair value determination in the fair value hierarchy (see Note 12) below. 9 WARRANTIES The Company provides warranties on certain of its products as they are sold. The following table summarizes the Company’s warranty activity for the six months ended April 3, 2026 and March 28, 2025. - 13 - Index JOHNSON OUTDOORS INC. April 3, 2026 March 28, 2025 Balance at beginning of period $ 12,149 $ 10,211 Expense accruals for warranties issued during the period 7,094 5,793 Less current period warranty claims paid ( 4,101 ) ( 3,938 ) Balance at end of period $ 15,142 $ 12,066 10 CONTINGENCIES The Company is subject to various legal actions and proceedings in the normal course of business, including those related to commercial disputes, product liability, intellectual property and regulatory matters. The Company is insured against loss for certain of these matters. Although litigation is subject to many uncertainties and the ultimate exposure with respect to these matters cannot be ascertained, management does not believe the final outcome of any pending litigation will have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company. 11 INDEBTEDNESS The Company had no debt outstanding at April 3, 2026, October 3, 2025, or March 28, 2025. Revolver The Company and certain of its subsidiaries entered into an unsecured credit facility with PNC Bank National Association and Associated Bank, N.A. ("the Lending Group"). This credit facility consisted of a $ 75 million Revolving Credit Facility among the Company, certain of the Company’s subsidiaries, PNC Bank National Association, as lender and as administrative agent, and the other lender named therein (as amended, the “Credit Agreement” or “Revolver”). The Revolver provides for borrowing of up to an aggregate principal amount not to exceed $ 75,000 with a $ 50,000 accordion feature that gave the Company the option to request an increase of the maximum financing availability (i.e., an aggregate borrowing amount of $ 125,000 ) subject to the conditions of the Credit Agreement and subject to the approval of the lenders. On July 15, 2021, the Company entered into a First Amendment to this credit facility that extended its expiration date from November 15, 2022, to July 15, 2026. On January 29, 2025, the Company entered into a Second Amendment to this credit facility that reduced the Revolver to $ 50,000 (but maintained the accordion feature) and modified the terms of the Credit Agreement. Effective as of December 9, 2025, the Company and certain of its subsidiaries entered into a Second Amended and Restated Credit Agreement which amends and restates the Company’s Amended and Restated Credit Agreement dated as of November 15, 2017, as previously amended effective July 15, 2021 and January 29, 2025, among the Company, certain of the Company’s subsidiaries named therein, PNC Bank, National Association, as lender and as administrative agent, PNC Capital Markets LLC, as sole lead arranger and bookrunner, and the other lender named therein. The material provisions of the new Credit Agreement are as follows: • The new Credit Agreement provides for borrowings of up to an aggregate principal amount not to exceed $ 50 million through December 9, 2029 (i.e., the maturity date), including letter of credit and swingline borrowing sublimits of $ 10 million each; • Borrowings under the new Credit Agreement are secured generally by substantially all of the personal property of the Company and the subsidiary borrowers. The new credit facility requires springing borrowing base certificate requirements if the availability under the facility is less than $ 25 million; • The new Credit Agreement provides the Company with the option to request additional increases in the revolving credit facility for an additional aggregate amount of $ 50 million (i.e., an aggregate borrowing amount of $ 100 million) subject to the conditions of the Credit Agreement and subject to the approval of the Lenders; • Interest is payable under the new Credit Agreement, at the Company’s option, based upon an overnight bank rate, SOFR or the prime rate plus an applicable margin and it resets the interest rate calculation at the Company’s option on an either one, three or six month basis by instituting an applicable margin based on the Company’s net leverage ratio (net of up to $ 25 million in unrestricted cash and cash equivalents on hand) for the trailing twelve month period. The applicable SOFR margin ranges from 1.25 percent to 2.00 percent; - 14 - Index JOHNSON OUTDOORS INC. • The new Credit Agreement requires the Company to maintain a net leverage ratio of less than 3 :00 to 1.00 and an interest coverage ratio of not less than 3.50 : 1.00, each tested on a quarterly basis; and • The new Credit Agreement restricts the Company’s ability to incur additional debt and engage in certain asset or stock acquisitions or dispositions and includes maximum leverage ratio and minimum interest coverage ratio covenants. The interest rates on the Revolver at April 3, 2026 and March 28, 2025 were approximately 4.8 % and 5.4 %, respectively. Other Borrowings The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of April 3, 2026 or March 28, 2025. The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $ 51 and $ 67 as of April 3, 2026 and March 28, 2025, respectively. 12 FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy has been established based on three levels of inputs, of which the first two are considered observable and the last unobservable. • Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets or liabilities. • Level 2 - Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. • Level 3 - Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances. The carrying amounts of accounts receivable, accounts payable and accrued expenses approximated their fair values at April 3, 2026, October 3, 2025 and March 28, 2025 due to the short term maturities of these instruments. See Note 13 for discussion of fair value of cash and cash equivalents. When indicators of impairment are present, the Company may be required to value certain long-lived assets such as property, plant, and equipment, and other intangibles at their fair value. Valuation Techniques Rabbi Trust Assets Rabbi trust assets are classified as trading securities and are comprised of marketable debt and equity securities that are marked to fair value based on unadjusted quoted prices in active markets. The rabbi trust assets are used to fund amounts the Company owes to certain officers and other employees under the Company’s non-qualified deferred compensation plan. These assets are reported as "Deferred compensation plan assets" in the accompanying Condensed Consolidated Balance Sheets, and the mark to market adjustments on the assets are recorded in “Other income, net” in the accompanying Condensed Consolidated Statements of Operations. The offsetting deferred compensation liability is also reported at fair value as "Deferred compensation liability" in the accompanying Condensed Consolidated Balance Sheets. Changes in the liability are recorded in "Administrative management, finance and information systems" expense in the accompanying Condensed Consolidated Statements of Operations. Marketable Securities Marketable securities are classified as available-for-sale, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable. The following table summarizes the Company’s financial assets measured at fair value as of April 3, 2026: - 15 - Index JOHNSON OUTDOORS INC. Level 1 Level 2 Level 3 Total Assets: Rabbi trust assets $ 28,991 $ — $ — $ 28,991 Marketable securities — — — — Total $ 28,991 $ — $ — $ 28,991 The following table summarizes the Company’s financial assets measured at fair value as of October 3, 2025: Level 1 Level 2 Level 3 Total Assets: Rabbi trust assets $ 30,681 $ — $ — $ 30,681 Marketable securities — — — — Total $ 30,681 $ — $ — $ 30,681 The following table summarizes the Company’s financial assets measured at fair value as of March 28, 2025: Level 1 Level 2 Level 3 Total Assets: Rabbi trust assets $ 27,396 $ — $ — $ 27,396 Marketable securities — 4,315 — 4,315 Total $ 27,396 $ 4,315 $ — $ 31,711 The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and six month periods ended April 3, 2026 and March 28, 2025 was: Three Months Ended Six months ended Location of income recognized in Statement of Operations April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025 Rabbi trust assets Other income (expense), net $ ( 901 ) $ ( 1,277 ) $ ( 1,703 ) $ ( 2,765 ) There were no assets or liabilities measured at fair value on a non-recurring basis in periods subsequent to their initial recognition for either of the six month periods ended April 3, 2026 or March 28, 2025. 13 CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES The Company considers all short-term investments in interest bearing accounts and all securities and other instruments with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost which approximates market value. The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at estimated fair value, with unrealized gains and losses, net of tax, reported as a separate component of accumulated other comprehensive income in the Condensed Consolidated Statements of Shareholders' Equity. Cost for marketable securities is determined using the specific identification method. A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the period presented is shown in the following table. All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable. - 16 - Index JOHNSON OUTDOORS INC. There were no marketable securities held as of April 3, 2026 or October 3, 2025. The following table summarizes the Company’s marketable securities measured at fair value as of March 28, 2025: Amortized Cost Fair Value Gross unrealized gains Gross unrealized losses Fixed rate Canadian Government Bonds 4,298 4,315 17 — Total $ 4,298 $ 4,315 $ 17 $ — There were no purchases or sales of available-for-sale securities during the six month periods ended April 3, 2026 or March 28, 2025, respectively. Proceeds from the maturities of available-for-sale securities were $ 0 and $ 11,826 for the six month period ended April 3, 2026 and March 28, 2025, respectively. No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods. At March 28, 2025, contractual maturities were all within one year from the period end and therefore were classified as Short term investments on the accompanying Condensed Consolidated Balance Sheets. 14 NEW ACCOUNTING PRONOUNCEMENTS Recently adopted accounting pronouncements In November 2023, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 is intended to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses. The amendments in this ASU do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments to this standard apply to all public entities that are required to report segment information in accordance with Topic 280, Segment Reporting and are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this guidance for the year ending October 3, 2025 and subsequent interim periods. The adoption of this standard did not impact the Company’s results of operations or financial position. See Note 16 Segments of Business for the new disclosures required by the standard. Recently issued accounting pronouncements In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses: Measurement of Credit Losses for Accounts Receivable and Contract Assets (Topic 326). The update permits entities to elect a practical expedient for estimating expected credit losses on current trade receivables and current contract assets by assuming that conditions existing at the balance sheet date will remain unchanged over the life of those assets. The updated standard is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact of the amendment to this standard on its consolidated financial statements. In November 2024, the FASB, issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. ASU 2024-03 is intended to improve disclosures about a public business entity's expenses and provide more detailed information to investors about the types of expenses in commonly presented expense captions. In January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) Clarifying the Effective Date , which is intended to clarify the effective date of ASU No. 2024-03. As clarified in ASU 2025-01, the new guidance is effective for annual reporting periods beginning after December 15, 2026 with early adoption permitted. While we anticipate that the adoption of this standard will require additional disclosures, the Company is currently assessing the impact of the amendment to this standard on its consolidated financial statements. In December 2023, the FASB, issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this ASU are effective for the Company in fiscal 2026 on a prospective basis, with early adoption permitted. The Company is currently evaluating the impacts of ASU 2023-09 on its income tax disclosures. Adoption is expected to result in expanded qualitative and quantitative disclosures in the Company’s annual financial statements, - 17 - Index JOHNSON OUTDOORS INC. including increased disaggregation within the effective tax rate reconciliation and additional detail related to income taxes paid by jurisdiction. The Company does not expect the adoption of ASU 2023-09 to have a material impact on its consolidated financial position, results of operations, or cash flows. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU covers a variety of codification topics, and the effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all entities within the scope of the affected Codification subtopics, if, by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the associated amendment will be removed from the Codification and will not become effective for any entities. The Company will monitor the removal of various requirements from the current regulations to determine when to adopt the related amendments, but it does not anticipate that the adoption of the new guidance will have a material impact on the Company’s consolidated financial statements and related disclosures. 15 REVENUES Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The amount of consideration received can vary, primarily because of customer incentive or rebate arrangements. The Company estimates variable consideration based on the expected value of total consideration to which customers are likely to be entitled based on historical experience and projected market expectations. Included in the estimate is an assessment as to whether any variable consideration is constrained. Revenue estimates are adjusted at the earlier of a change in the expected value of consideration or when the consideration becomes fixed. For all contracts with customers, the Company has not adjusted the promised amount of consideration for the effects of a significant financing component as the period between the transfer of the promised goods and the customer's payment is expected to be one year or less . Sales are made on normal and customary short-term credit terms, generally ranging from 30 to 90 days, or upon delivery of point of sale transactions. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. The Company enters into contractual arrangements with customers in the form of individual customer orders which specify the goods, quantity, pricing, and associated order terms. The Company does not have contracts which are satisfied over time. Due to the nature of these contracts, no significant judgment exists in relation to the identification of the customer contract, satisfaction of the performance obligation, or transaction price. The Company expenses incremental costs of obtaining a contract due to the short-term nature of the contracts. Estimated costs of returns, allowances and discounts, based on historic experience, are accrued as a reduction to sales when revenue is recognized. The Company provides customers the right to return eligible products under certain circumstances. At April 3, 2026, the right to returns asset was $ 1,447 and the accrued returns liability was $ 3,782 . At March 28, 2025, the right to returns asset was $ 1,615 and the accrued returns liability was $ 4,283 . The Company also offers assurance-type warranties relating to its products sold to end customers that continue to be accounted for under ASC 460 Guarantees. The Company accounts for shipping and handling activities as a fulfillment activity, consistent with the timing of revenue recognition; that is, when a customer takes control of the transferred goods. In the event that a customer were to take control of a product upon or after shipment, the Company has made an accounting policy election to treat such shipping and handling activities as a fulfillment cost. Shipping and handling fees billed to customers are included in "Net Sales," and shipping and handling costs are recognized within "Marketing and selling expenses" in the same period the related revenue is recognized. The Company has a wide variety of seasonal, outdoor recreation products used primarily for fishing from a boat, diving, paddling, hiking and camping, that are sold to a variety of customers in multiple end markets. The revenue recognition policies are similar among all the various products sold by the Company. See Note 16 for required disclosures of disaggregated revenue. 16 SEGMENTS OF BUSINESS - 18 - Index JOHNSON OUTDOORS INC. The Company conducts its worldwide operations through separate business segments , each of which represents major product lines. Operations are conducted in the United States and various foreign countries, primarily in Europe, Canada and the Pacific Basin. The Company’s Chief Executive Officer, who has been identified as the chief operating decision maker, "CODM," primarily uses operating profit as the measure of profit or loss to assess segment performance and allocate resources. Operating profit represents net sales less cost of goods sold and operating expenses. Net Sales are directly attributed to each segment. Segment operating expenses include operating expenses directly attributable to the segment, as well as certain shared corporate administration and other costs which are allocated to the segments in a reasonable manner considering the specific facts and circumstances of the expenses being allocated. The CODM evaluates segment profitability based on operating profit (loss) because it provides key insights to operational leverage and other key operational metrics for each segment. Additionally, segment operating profit (loss) is used in the annual budgeting and forecasting process, and budget-to-actual and forecast-to-actual variances are considered when determining how resources should be allocated to each segment. Net sales and operating profit include both sales to customers, as reported in the Company’s accompanying Condensed Consolidated Statements of Operations, and interunit transfers, which are priced to recover cost plus an appropriate profit margin. Total assets represent assets that are used in the Company’s operations in each business segment at the end of the periods presented. A summary of the Company’s operations by business segment is presented below: - 19 - Index JOHNSON OUTDOORS INC. Three Months Ended April 3, 2026 Fishing Camping & Watercraft Recreation Diving Other/Corporate Total Unaffiliated customers $ 158,586 $ 18,039 $ 17,315 $ 540 $ 194,480 Interunit transfers 439 14 — ( 453 ) — Net Sales 159,025 18,053 17,315 87 194,480 Cost of goods sold 101,578 10,295 7,152 ( 33 ) 118,992 Gross profit 57,447 7,758 10,163 120 75,488 Marketing and selling expense 29,430 5,149 6,231 2,457 43,267 Administrative management, finance and information systems expense 2,865 1,113 2,895 6,432 13,305 Goodwill impairment — — — — — Research and development expense 6,447 708 1,273 139 8,567 Operating profit (loss) $ 18,705 $ 788 $ ( 236 ) $ ( 8,908 ) $ 10,349 Depreciation and Amortization Expense $ 3,727 $ 403 $ 331 $ 537 $ 4,998 Capital Expenditures $ ( 4,751 ) $ ( 207 ) $ ( 43 ) $ ( 1,202 ) $ ( 6,203 ) Total assets (end of period) $ 354,372 $ 72,581 $ 93,782 $ 97,538 $ 618,273 Three Months Ended March 28, 2025 Fishing Camping & Watercraft Recreation Diving Other/Corporate Total Unaffiliated customers $ 134,462 $ 17,826 $ 15,814 $ 247 $ 168,349 Interunit transfers 429 26 6 ( 461 ) — Net Sales 134,891 17,852 15,820 ( 214 ) 168,349 Cost of goods sold 93,196 10,051 6,524 ( 288 ) 109,483 Gross profit 41,695 7,801 9,296 74 58,866 Marketing and selling expense 22,993 4,771 4,710 2,170 34,644 Administrative management, finance and information systems expense 3,036 1,149 3,745 3,305 11,235 Goodwill impairment — — — — — Research and development expense 6,197 635 1,254 — 8,086 Operating profit (loss) $ 9,469 $ 1,246 $ ( 413 ) $ ( 5,401 ) $ 4,901 Depreciation and Amortization Expense 3,292 421 237 853 4,803 Capital Expenditures ( 2,629 ) ( 233 ) ( 221 ) ( 211 ) ( 3,294 ) Total assets (end of period) $ 359,016 $ 73,171 $ 90,137 $ 102,150 $ 624,474 - 20 - Index JOHNSON OUTDOORS INC. Six Months Ended April 3, 2026 Fishing Camping & Watercraft Recreation Diving Other/Corporate Total Unaffiliated customers $ 270,732 $ 28,624 $ 35,289 $ 770 $ 335,415 Interunit transfers 663 30 — ( 693 ) — Net Sales 271,395 28,654 35,289 77 335,415 Cost of goods sold 175,977 16,623 15,816 ( 99 ) 208,317 Gross profit 95,418 12,031 19,473 176 127,098 Marketing and selling expense 51,224 8,963 12,113 4,471 76,771 Administrative management, finance and information systems expense 5,565 2,093 5,381 13,422 26,461 Goodwill impairment — — — — — Research and development expense 12,404 1,305 2,551 169 16,429 Operating profit (loss) $ 26,225 $ ( 330 ) $ ( 572 ) $ ( 17,886 ) $ 7,437 Depreciation and Amortization Expense $ 7,490 $ 808 $ 629 $ 1,170 $ 10,097 Capital Expenditures $ ( 8,490 ) $ ( 502 ) $ ( 89 ) $ ( 1,415 ) $ ( 10,496 ) Total assets (end of period) $ 354,372 $ 72,581 $ 93,782 $ 97,538 $ 618,273 Six Months Ended March 28, 2025 Fishing Camping & Watercraft Recreation Diving Other/Corporate Total Unaffiliated customers $ 216,895 $ 27,269 $ 31,494 $ 340 $ 275,998 Interunit transfers 468 34 10 ( 512 ) — Net Sales 217,363 27,303 31,504 ( 172 ) 275,998 Cost of goods sold 157,068 14,986 13,175 ( 280 ) 184,949 Gross profit 60,295 12,317 18,329 108 91,049 Marketing and selling expense 41,514 8,331 9,427 5,756 65,028 Administrative management, finance and information systems expense 5,595 2,160 7,779 10,177 25,711 Goodwill impairment — — — — — Research and development expense 11,978 1,226 2,444 — 15,648 Operating profit (loss) $ 1,208 $ 600 $ ( 1,321 ) $ ( 15,825 ) $ ( 15,338 ) Depreciation and Amortization Expense 7,063 849 482 1,647 10,041 Capital Expenditures ( 6,275 ) ( 243 ) ( 543 ) ( 317 ) ( 7,378 ) Total assets (end of period) $ 359,016 $ 73,171 $ 90,137 $ 102,150 $ 624,474 Other Segment Information During the three and six month periods ended April 3, 2026, one customer of the Company's Fishing and Camping & Watercraft Recreation segments accounted for more than 10% of the Company's consolidated revenues, which amounted to sales of approximately $ 49,314 and $ 79,679 , respectively. During the three and six month periods ended March 28, 2025, two customers of the Company's Fishing and Camping & Watercraft Recreation segments each accounted for more than 10% of the Company's consolidated revenues, which amounted to sales of approximately $ 63,291 and $ 87,549 , respectively. 17 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the six months ended April 3, 2026 were as follows: - 21 - Index JOHNSON OUTDOORS INC. Foreign Currency Translation Adjustment Unrealized gain (loss) on available-for sale securities Unamortized Loss on Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at October 3, 2025 $ 7,356 $ — $ ( 67 ) $ 7,289 Other comprehensive loss before reclassifications 1,095 — — 1,095 Amounts reclassified from accumulated other comprehensive income — — 11 11 Tax effects — — ( 3 ) ( 3 ) Balance at January 2, 2026 $ 8,451 $ — $ ( 59 ) $ 8,392 Other comprehensive income before reclassifications ( 1,584 ) — — ( 1,584 ) Amounts reclassified from accumulated other comprehensive income — — 9 9 Tax effects — — ( 2 ) ( 2 ) Balance at April 3, 2026 $ 6,867 $ — $ ( 52 ) $ 6,815 The changes in AOCI by component, net of tax, for the six months ended March 28, 2025 were as follows: Foreign Currency Translation Adjustment Unrealized gain (loss) on available-for sale securities Unamortized Loss on Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at September 27, 2024 $ 6,056 $ 17 $ ( 109 ) $ 5,964 Other comprehensive loss before reclassifications ( 4,915 ) ( 1 ) — ( 4,916 ) Amounts reclassified from accumulated other comprehensive income — 11 11 Tax effects — — ( 2 ) ( 2 ) Balance at December 27, 2024 $ 1,141 $ 16 $ ( 100 ) $ 1,057 Other comprehensive loss before reclassifications 1,133 ( 4 ) — 1,129 Amounts reclassified from accumulated other comprehensive income — — 10 10 Tax effects — — ( 3 ) ( 3 ) Balance at March 29, 2025 $ 2,274 $ 12 $ ( 93 ) $ 2,193 The reclassifications out of AOCI for the three and six months ended April 3, 2026 and March 28, 2025 were as follows: Three Months Ended Six Months Ended April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025 Statement of Operations Presentation Unamortized loss on defined benefit pension plans: Amortization of loss $ 10 $ 10 $ 21 $ 21 Other income and expense Tax effects ( 2 ) ( 3 ) ( 5 ) ( 5 ) Income tax expense Total reclassifications for the period $ 8 $ 7 $ 16 $ 16 18 ACQUISITIONS On October 25, 2024, the Company acquired all the outstanding common stock of Endless Summer Technologies Proprietary, Ltd ("EST") and related patents and other assets used in EST's business and operations in a purchase transaction with EST's sole shareholder (the "Seller"). EST, based in Durban, South Africa, has been a long term - 22 - Index JOHNSON OUTDOORS INC. supplier of products to the Company and it specializes in the design, development and manufacturing of scuba equipment through unique application of existing, new and emerging technologies. The EST acquisition is included in the Company's Diving segment, and is expected to provide new innovative products, unlock synergies and enhance operating efficiencies for the Diving segment. The approximately $ 12,197 acquisition cost was funded with existing cash. Approximately $ 1,650 of the purchase price was paid into segregated escrow accounts which were set aside to fund (1) any potential downward purchase price adjustment tied to cash, debt and net working capital levels as of the closing or (2) potential indemnity claims that may be made by the Company against the Seller in connection with the inaccuracy of certain representations and warranties made by the Seller or related to the breach or nonperformance of certain other actions, agreements or conditions related to the acquisition, for a period of 24 months from the acquisition date. The Company cannot estimate the probability or likelihood of bringing such an indemnity claim against the Seller or any related costs at this time. The remaining escrow balance, if any, net of any indemnity claim then pending, will be released to the Seller once the 24 month period has lapsed. The Company finalized the purchase accounting during the fourth quarter of fiscal 2025, and there were no material adjustments made during the measurement period. The following table summarizes the fair values of the assets acquired and liabilities assumed, and the resulting goodwill acquired at the date of acquisition: Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 245 Inventories 2,261 Other current assets 72 Property, plant and equipment 502 Identifiable intangible assets 1,439 Deferred tax asset 237 Less, accounts payable and accruals ( 1,044 ) Less, other current liabilities ( 636 ) Less, long term liabilities ( 1,110 ) Total identifiable net assets 1,966 Goodwill 10,231 Net assets acquired $ 12,197 Pro forma financial information has not been presented because such amounts are not material to the unaudited condensed consolidated financial statements. Total transaction costs incurred for the acquisition were approximately $ 635 , of which approximately $ 110 was recognized during the six months ended March 28, 2025, and the remainder was recognized in fiscal 2024. The costs are included in Administrative management, finance and information systems expenses in the accompanying Condensed Consolidated Statements of Operations.