What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 269 added, 158 removed, 632 unchanged (40% of the section changed)

6 unchanged sentences

Cash and cash equivalents $ 5,451 $ 4,267

Accounts receivable, less allowances of $ 11,042 at March 31, 2026 and $ 11,970 at December 31, 2025

Accounts receivable, less allowances of $ 10,538 at June 30, 2026 and $ 11,970 at December 31, 2025

120,879 161,861

11 unchanged sentences

Current maturity of term loan $ — $ 5,022

Current maturity of revolving credit facility 37,906 —

Accounts payable 48,740 45,844

Accrued expenses 71,164 64,294

Income taxes payable 4,395 —

Current portion of operating lease liabilities 14,300 16,143

11 unchanged sentences

Common stock, $ 0.01 par value, shares authorized:

50,000,000 at March 31, 2026 and December 31, 2025;

50,000,000 at June 30, 2026 and December 31, 2025;

shares issued and outstanding:

22,855,008 at March 31, 2026 and 22,654,207 at December 31, 2025

22,988,836 at June 30, 2026 and 22,654,207 at December 31, 2025

Paid-in capital 285,571 283,449

10 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Net sales $ 141,569 $ 131,862 $ 285,077 $ 271,947

3 unchanged sentences

Selling, general and administrative expenses 39,539 37,495 76,325 68,963

Goodwill impairment — 33,237 — 33,237

Restructuring expenses 1,980 — 4,010 —

(Loss) income from operations

Income (loss) from operations

31,625 ( 37,207 ) 29,395 ( 36,108 )

1 unchanged sentence

Mark to market gain (loss) on interest rate derivatives

Loss before income taxes

210 ( 220 ) 504 ( 747 )

Income tax benefit

Income (loss) before income taxes

27,713 ( 42,481 ) 21,265 ( 46,824 )

BASIC LOSS PER COMMON SHARE

Income tax (provision) benefit

( 8,104 ) 2,782 ( 6,428 ) 2,924

DILUTED LOSS PER COMMON SHARE

NET INCOME (LOSS)

$ 19,609 $ ( 39,699 ) $ 14,837 $ ( 43,900 )

BASIC INCOME (LOSS) PER COMMON SHARE

$ 0.89 $ ( 1.83 ) $ 0.68 $ ( 2.03 )

DILUTED INCOME (LOSS) PER COMMON SHARE

$ 0.87 $ ( 1.83 ) $ 0.66 $ ( 2.03 )

See accompanying notes to unaudited condensed consolidated financial statements.

LIFETIME BRANDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Other comprehensive income, net of taxes:

Net income (loss)

$ 19,609 $ ( 39,699 ) $ 14,837 $ ( 43,900 )

Other comprehensive income (loss), net of taxes:

Net change in translation adjustment 133 195 198 612

1 unchanged sentence

Effect of retirement benefit obligations 6 4 12 8

Other comprehensive income, net of taxes

Comprehensive loss

Other comprehensive income (loss), net of taxes

115 ( 262 ) 254 30

Comprehensive income (loss)

$ 19,724 $ ( 39,961 ) $ 15,091 $ ( 43,870 )

See accompanying notes to unaudited condensed consolidated financial statements.

19 unchanged sentences

22,855 $ 229 $ 284,305 $ ( 69,132 ) $ ( 17,906 ) $ 197,496

— — — 19,609 — 19,609

Other comprehensive income, net of taxes

— — — — 115 115

Net issuance of restricted shares granted to employees and directors 85 1 ( 1 ) — — —

Stock compensation expense — — 973 — — 973

Net exercise of stock options 49 — 294 — — 294

Dividends (1)

— — — ( 1,010 ) — ( 1,010 )

BALANCE AT JUNE 30, 2026

22,989 $ 230 $ 285,571 $ ( 50,533 ) $ ( 17,791 ) $ 217,477

Common stock Paid-in

15 unchanged sentences

22,414 $ 224 $ 281,211 $ ( 37,736 ) $ ( 18,023 ) $ 225,676

(1) Cash dividends declared per share of common stock were $ 0.0425 and $ 0.0425 in the three months ended March 31, 2026 and 2025, respectively.

— — — ( 39,699 ) — ( 39,699 )

Other comprehensive loss, net of taxes

— — — — ( 262 ) ( 262 )

Net issuance of restricted shares granted to employees and directors 243 3 ( 3 ) — — —

Stock compensation expense — — 1,044 — — 1,044

Dividends (1)

— — — ( 991 ) — ( 991 )

BALANCE AT JUNE 30, 2025

22,657 $ 227 $ 282,252 $ ( 78,426 ) $ ( 18,285 ) $ 185,768

(1) Cash dividends declared per share of common stock were $ 0.085 and $ 0.085 in the six months ended June 30, 2026 and 2025, respectively.

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Three Months Ended

Six Months Ended

OPERATING ACTIVITIES

Net income (loss)

$ 14,837 $ ( 43,900 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization 10,644 11,135

Goodwill impairment — 33,237

Non-cash restructuring charges 296 —

Amortization of financing costs 1,330 1,390

23 unchanged sentences

Payments of tax withholding for stock based compensation ( 183 ) ( 416 )

Proceeds from the exercise of stock options 294 —

Cash dividends paid ( 1,990 ) ( 1,933 )

8 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

NOTE 1 — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES

14 unchanged sentences

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

The Company’s business and working capital needs are seasonal, with a majority of sales occurring in the third and fourth quarters.

3 unchanged sentences

however it is reasonably possible that actual conditions could differ from expectations, which could materially affect the Company’s results of operations and financial position.

Changes in laws and regulations

On February 20, 2026, the U.S.

Supreme Court held that the U.S.

administration’s imposition of tariffs pursuant to the International Emergency Economic Powers Act (“IEEPA”) was unlawful.

Customs and Border Protection ("CBP") has launched Phase One and Phase Two of the IEEPA refunds claims process.

During the three months ended June 30, 2026, the Company concluded that $ 40.1 million of tariff refunds were probable of being recovered and recognized the refund as a reduction to cost of goods sold of $ 40.1 million in the condensed consolidated financial statements.

Awarded interest related to tariff refunds is recognized in the period in which it is realized.

As of June 30, 2026, the Company received $ 3.5 million and recorded $ 36.6 million of outstanding IEEPA tariff receivables within prepaid and other current assets in the condensed consolidated balance sheet.

Subsequent to the balance sheet date, the Company received an additional $ 32.9 million in tariff refunds.

Revenue recognition

1 unchanged sentence

Wholesale sales and retail sales are primarily recognized at the point in time when the customer obtains control of the products, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products.

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

The Company offers various sales incentives and promotional programs to its customers in the normal course of business.

4 unchanged sentences

Cost of sales consist primarily of costs associated with the production and procurement of product, inbound freight costs, purchasing costs, handling costs, duties and tariffs, royalties, and other product procurement related charges.

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

Distribution expenses

10 unchanged sentences

The sale of accounts receivable, under the Receivables Purchase Agreement with HSBC, is excluded from the Company’s unaudited condensed consolidated balance sheets at the time of sale and the related sale expense is included in selling, general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations.

The Company did not sell receivables to HSBC during the three months ended March 31, 2026 and March 31, 2025.

At March 31, 2026, $ 16.3 million of accounts receivable were available for sale to HSBC, net of applicable charges.

The Company did not sell receivables to HSBC during the three and six months ended June 30, 2026 and June 30, 2025.

At June 30, 2026, $ 16.8 million of accounts receivable were available for sale to HSBC, net of applicable charges.

Inventory consists principally of finished goods sourced from third-party suppliers.

12 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

Fair value of financial instruments

6 unchanged sentences

Goodwill, intangible assets and long-lived assets

The Company had no recorded goodwill as of March 31, 2026 and December 31, 2025.

The Company had no recorded goodwill as of June 30, 2026 and December 31, 2025.

Long-lived assets, including intangible assets deemed to have finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

17 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

For certain equipment leases, the Company applies a portfolio approach to effectively account for its ROU assets and lease liabilities.

6 unchanged sentences

In these circumstances, the fair value of the termination benefits is recognized ratably over the required service period, beginning on the communication date.

The Company recorded restructuring expenses for the three months ended March 31, 2026 related to the following activities:

The Company recorded restructuring expenses for the three and six months ended June 30, 2026 related to the following activities:

Three Months Ended

June 30, Six Months Ended

(in thousands)

Distribution facility relocation

Sterling flatware manufacturing operations

$ 1,179 $ 2,380

Manufacturing operations 790 1,443

segment 1,969 3,823

5 unchanged sentences

As a result of the relocation the Company will exit the Robbinsville Facility.

During the three months ended March 31, 2026, the Company incurred $ 1.2 million related to employee severance expenses.

The Company expects to complete the exit of the Robbinsville Facility by the third quarter of 2026 and expects additional exit costs of approximately $ 1.8 million related to employee severance and $ 3.0 million for other related costs in the second and third quarter of 2026.

Sterling Flatware Manufacturing Operations

During the three and six months ended June 30, 2026, the Company incurred $ 1.2 million and $ 2.4 million, respectively, related to employee severance expenses.

The Company expects to complete the exit of the Robbinsville Facility by the fourth quarter of 2026 and expects additional exit costs of approximately $ 0.6 million related to employee severance and $ 2.7 million for other related costs.

Manufacturing Operations - Sterling Flatware & Mexico Operations

In March 2026, the Company approved a plan to close its manufacturing operations of its sterling flatware products.

During the three months ended March 31, 2026, the Company incurred $ 0.1 million of employee severance expenses and $ 0.6 million of other costs which consisted of an inventory provision on remaining raw materials inventory.

The Company expects to complete the closure of this operation by the end of the second quarter of 2026 and expects additional costs to be less than $ 0.1 million related to employee severance.

During the three months ended June 30, 2026, the Company incurred less than $ 0.1 million of employee severance expenses.

During the six months ended June 30, 2026, the Company incurred $ 0.1 million of employee severance expenses and $ 0.6 million of other costs which consisted of an inventory provision on remaining raw materials inventory.

The Company has completed the actions under this closure.

In June 2026, the Company approved a plan to close its manufacturing operations in Mexico.

During the three and six months ended June 30, 2026, the Company incurred $ 0.3 million of employee severance expenses and $ 0.4 million of other costs which consisted of an inventory provision on remaining raw materials inventory and write-off of fixed assets that will be disposed.

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

Project Concord

1 unchanged sentence

The reorganization is related to Project Concord and primarily affects the structure of the International segment's merchandising and sales workforce.

During the three months ended March 31, 2026, the Company incurred $ 0.2 million of employee severance expenses.

The Company expects that restructuring activities related to this project to be

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

completed by the end of the second quarter of 2026 and expects to incur additional costs of $ 0.2 million related to employee severance.

As of March 31, 2026, accrued restructuring liability was $ 1.5 million, which included $ 1.2 million related to distribution facility relocation expenses, $ 0.1 million related to sterling silver manufacturing operations expenses, and $ 0.2 million related to Project concord.

During the three and six months ended June 30, 2026, the Company incurred less than $ 0.1 million and $ 0.2 million, respectively, of employee severance expenses.

As of June 30, 2026, the Company expects that restructuring activities related to this project to be completed by the end of the fourth quarter of 2026 and expects to incur additional costs of $ 0.3 million related to employee severance.

As of June 30, 2026, accrued restructuring liability was $ 1.8 million, which was related to distribution facility relocation expenses.

The accrued restructuring is expected to be paid by the end of 2026.

14 unchanged sentences

Sales arrangements with delivery terms that are not FOB Shipping Point are not recognized upon shipment and the transfer of control for revenue recognition is evaluated based on the associated shipping terms and customer obligations.

Shipping and handling fees that are billed to customers in sales transactions are included in net sales and amounted to $ 0.7 million for the three months ended March 31, 2026 and $ 0.7 million for the three months ended March 31, 2025.

Shipping and handling fees that are billed to customers in sales transactions are included in net sales and amounted to $ 0.6 million and $ 1.3 million, respectively, for the three and six months ended June 30, 2026 and $ 0.8 million and $ 1.4 million, respectively, for the three and six months ended June 30, 2025.

Net sales exclude taxes that are collected from customers and remitted to the taxing authorities.

6 unchanged sentences

The Company incurs certain direct incremental costs to obtain contracts with customers, such as sales-related co mmissions, where the recognition period for the related revenue is less than one year.

These costs are expensed as incurred and recorded within selling, general and administrative expenses in the unaudited condensed consolidated statements of operations.

Incidental items that are immaterial in the context of the contract are expensed as incurred.

These costs are expensed as incurred and recorded

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

The following tables present the Company’s net sales disaggregated by segment, product category and geographic region for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended

June 30, 2026

within selling, general and administrative expenses in the unaudited condensed consolidated statements of operations.

Incidental items that are immaterial in the context of the contract are expensed as incurred.

The following tables present the Company’s net sales disaggregated by segment, product category and geographic region for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Kitchenware $ 85,401 $ 82,549 $ 163,848 $ 162,070

10 unchanged sentences

The Company has operating leases for corporate offices, distribution facilities, a manufacturing plant, and certain vehicles.

The components of lease expense for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

The components of lease expense for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):

Three Months Ended

Six Months Ended

2026 2025 2026 2025

Operating lease expenses (1) :

3 unchanged sentences

(1) Expenses are recorded within distribution expenses and selling, general and administrative expenses on the unaudited condensed consolidated statement of operations.

Supplemental cash flow information for lease related liabilities and assets for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

Three Months Ended

Supplemental cash flow information for lease related liabilities and assets for the six months ended June 30, 2026 and 2025 were as follows (in thousands):

Six Months Ended

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows for operating leases $ 10,724 $ 9,710

Three Months Ended

Right-of-use assets obtained in exchange for lease obligations:

Operating leases $ 152 $ —

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

The aggregate future lease payments for operating leases as of March 31, 2026 were as follows (in thousands):

2026 (excluding the three months ended March 31, 2026)

June 30, 2026

Six Months Ended

Right-of-use assets obtained in exchange for lease obligations:

Operating leases $ 54,626 $ 754

During the six months ended June 30, 2026, the right-of-use assets obtained include the right-of-use asset for the Hagerstown Facility lease, which commenced on April 30, 2026.

The lease included a tenant improvement allowance of $ 5.1 million.

The aggregate future lease payments for operating leases as of June 30, 2026 were as follows (in thousands):

2026 (excluding the six months ended June 30, 2026)

Thereafter 97,382

3 unchanged sentences

Average lease terms and discount rates were as follows:

March 31, 2026

June 30, 2026

Operating leases:

1 unchanged sentence

Weighted-average discount rate 9.0 %

On January 23, 2025, the Company entered into a lease agreement for a new distribution center in Hagerstown, Maryland

(“Hagerstown Facility”).

The lease term commenced on April 30, 2026, following the satisfaction of all commencement conditions.

The term of the lease is 180 months following the commencement date.

Base rent for the first year of the lease is $ 7.3 million, escalating by 3 % annually.

A portion of the base rent will be abated for the first 36 months of the lease term at the applicable annual base rent for a total base rent abatement of $ 7.2 million.

The lease agreement also includes a total tenant improvement allowance of approximately $ 5.1 million.

NOTE 4 — INTANGIBLE ASSETS

Intangible assets consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

Intangible assets consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):

June 30, 2026 December 31, 2025

Gross Accumulated

8 unchanged sentences

Total $ 269,473 $ ( 145,184 ) $ 124,289 $ 269,517 $ ( 136,595 ) $ 132,922

(1) The net value at March 31, 2026 and December 31, 2025 reflect a reduction of $ 113.0 million impairment charges within U.S.

(1) The net value at June 30, 2026 and December 31, 2025 reflect a reduction of $ 113.0 million impairment charges within U.S.

segment and $ 11.9 million impairment charges within International segment.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

Goodwill impairment test

In the second quarter of 2025, the Company observed a sustained decline in the market valuation of the Company ’ s common stock.

Additionally, the Company ’ s near term forecasts for the U.S.

reporting unit were revised downward due to changes in retailer and consumer buying patterns, which were impacted by the recent changes in the U.S.

tariff policies.

Based on these factors the Company concluded that impairment indicators for the U.S.

reporting unit were present as of June 30, 2025.

The Company performed an interim impairment test of the goodwill in the U.S.

reporting unit as of June 30, 2025 by comparing its fair value with its carrying value.

The analysis was performed by using a discounted cash flow and market multiple method.

Accordingly, this fair value measurement is classified as Level 3 since it is based primarily on unobservable inputs.

Based upon the analysis per formed, the Company’s U.S.

reporting unit goodwill was fully impaired and a $ 33.2 million non-cash goodwill impairment charge was recognized.

The goodwill impairment charge was the result of the decline in the Company’s near term forecasts that were revised downward due to the changes in retailer and consumer buying patterns and an increase to the company-specific risk premium, which is an input to the cost of capital assumption, to address the potential risks in the long-term forecast.

NOTE 5 — DEBT

5 unchanged sentences

2 to amend the Loan Agreement, dated as of March 2, 2018, among the Company, as Borrower, the other loan parties from time to time party thereto, the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (as amended, the “Term Loan” and together with the ABL Agreement, the “Debt Agreements”).

The Term Loan has a principal amount of $ 150.0 million, and matures on August 26, 2027.

The Term Loan had an initial principal amount of $ 150.0 million, and matures on August 26, 2027.

The Term Loan requires the Company to make quarterly payments of principal each equal to 1.25 % of the aggregate principal amount of the Term Loan, which commenced on March 31, 2024, with the remaining balance payable on the maturity date.

6 unchanged sentences

The Incremental Term Facilities may not exceed the sum of (i) $ 50.0 million plus (ii) an unlimited amount so long as, in the case of (ii) only, the Company’s secured net leverage ratio, as defined in and computed on a pro forma basis pursuant to the Term Loan, after giving effect to such increase, is no greater than 3.25 to 1.00, subject to certain limitations and for the period defined pursuant to the Term Loan but not to mature earlier than the maturity date of the then existing term loans.

As of March 31, 2026 and December 31, 2025, the total availability under the ABL Agreement were as follows (in thousands):

March 31, 2026

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

As of June 30, 2026 and December 31, 2025, the total availability under the ABL Agreement were as follows (in thousands):

June 30, 2026

December 31, 2025

1 unchanged sentence

Outstanding borrowings under the ABL Agreement (1)

( 37,906 ) ( 54,105 )

Standby letters of credit ( 13,766 ) ( 11,564 )

Total availability under the ABL Agreement $ 128,264 $ 119,919

(1) At June 30, 2026, the outstanding principal under the ABL Agreement is classified as current in the condensed consolidated balance sheet as the springing maturity of the ABL Agreement falls due in the next 12 months.

Availability under the ABL Agreement is limited to the lesser of the $ 200.0 million commitment thereunder and the borrowing base and therefore depends on the valuation of certain current assets comprising the borrowing base.

3 unchanged sentences

The Company’s borrowing capacity may be further limited by the Term Loan financial covenant of 5.00 to 1.00 maximum Total Net Leverage Ratio.

As of March 31, 2026, the availability under the ABL Agreement, as limited by the Term Loan financial covenant, was $ 80.0 million.

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

As of June 30, 2026, the availability under the ABL Agreement was $ 128.3 million.

The current and non-current portions of the Company’s Term Loan included in the condensed consolidated balance sheets were as follows (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Current portion of Term Loan:

6 unchanged sentences

Total Non-current portion of Term Loan $ 110,332 $ 125,927

As of March 31, 2026 the Company estimates that no excess cash flow payment will be due for 2026.

During the three months ended June 30, 2026, the Company made a voluntary prepayment under the Term Loan of $ 20.0 million.

The prepayment was applied to reduce the outstanding principal and satisfied remaining quarterly payments due under the loan.

Subsequent to June 30, 2026, the Company made a second voluntary prepayment of $ 20.0 million.

As of June 30, 2026, the Company estimates that no Excess Cash Flow payment will be due for 2026.

For the year ended December 31, 2025, there was no Excess Cash Flow payment due for 2025.

5 unchanged sentences

subsidiary guarantors, subject to certain exceptions.

Such security interests consist of (1) a first-priority lien, subject to certain permitted liens, with respect to certain assets of the Company and certain of its subsidiaries (the “ABL Collateral”) pledged as collateral in favor of lenders under the ABL Agreement and a second-priority lien in the ABL Collateral in favor of the lenders under the Term Loan and (2) a first-priority lien, subject to certain permitted liens, with respect to certain assets of the Company and certain of its subsidiaries (the “Term Loan Collateral”) pledged as collateral in favor of lenders under the Term Loan and a second-priority lien in the Term Loan Collateral in favor of the lenders under the ABL Agreement.

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

second-priority lien in the ABL Collateral in favor of the lenders under the Term Loan and (2) a first-priority lien, subject to certain permitted liens, with respect to certain assets of the Company and certain of its subsidiaries (the “Term Loan Collateral”) pledged as collateral in favor of lenders under the Term Loan and a second-priority lien in the Term Loan Collateral in favor of the lenders under the ABL Agreement.

Borrowings under the revolving credit facility bear interest, at the Company’s option, at one of the following rates:

3 unchanged sentences

In addition, the Company pays a commitment fee of 0.20 % to 0.25 % per annum based on the average daily unused portion of the aggregate commitment under the ABL Agreement.

The interest rate on outstanding borrowings under the ABL Agreement at March 31, 2026 was between 3.33 % and 7.13 %.

The Company paid a commitment fee of 0.25 % on the unused portion of the ABL Agreement during the three months ended March 31, 2026.

The interest rate on outstanding borrowings under the ABL Agreement at June 30, 2026 was between 5.10 % and 7.13 %.

The Company paid a commitment fee of 0.25 % on the unused portion of the ABL Agreement during the six months ended June 30, 2026.

The Term Loan bears interest, at the Company’s option, at one of the following rates:

(i) alternate base rate, defined, for any day, as the greater of (x) the prime rate, (y) a federal funds and overnight bank funding based rate plus 0.5 % or (z) one-month Adjusted Term SOFR, but not less than 1.0 %, plus 1.0 %, plus a margin of 4.5 % or (ii) Adjusted Term SOFR (Term SOFR plus the Term SOFR Adjustment) for the applicable interest period, but not less than 1.0 %, plus a margin of 5.5 %.

The interest rate on outstanding borrowings under the Term Loan at March 31, 2026 was 9.29 %.

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

The interest rate on outstanding borrowings under the Term Loan at June 30, 2026 was 9.27 %.

The Debt Agreements provide for customary restrictions and events of default.

2 unchanged sentences

Further, the ABL Agreement provides that during any period (a) commencing on the last day of the most recently ended four consecutive fiscal quarters on or prior to the date availability under the ABL Agreement is less than the greater of $ 20.0 million and 10 % of the aggregate commitment under the ABL Agreement at any time and (b) ending on the day after such availability has exceeded the greater of $ 20.0 million and 10 % of the aggregate commitment under the ABL Agreement for 45 consecutive days, the Company is required to maintain a minimum fixed charge coverage ratio of 1.10 to 1.00 as of the last day of any period of four consecutive fiscal quarters.

The Company was in compliance with the covenants of the Debt Agreements at March 31, 2026.

The Company was in compliance with the covenants of the Debt Agreements at June 30, 2026.

The Company expects that it will continue to borrow, subject to availability, and repay funds under the ABL Agreement based on working capital and other corporate needs.

7 unchanged sentences

These master netting arrangements permit the Company to net amounts due from the Company to counterparty with amounts due to the Company from the same counterparty.

Although all of the Company’s recognized derivative assets and liabilities are subject to enforceable master netting arrangements, the Company has elected to present these assets and liabilities on a gross basis.

Although all of the Company’s

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

recognized derivative assets and liabilities are subject to enforceable master netting arrangements, the Company has elected to present these assets and liabilities on a gross basis.

The Company does not anticipate non-performance by any of its counterparties.

4 unchanged sentences

These non-designated interest rate swaps serve as cash flow hedges of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings.

The Company’s total outstanding notional value of interest rate swaps was $ 50.0 million at March 31, 2026.

The Company’s total outstanding notional value of interest rate swaps was $ 50.0 million at June 30, 2026.

Foreign Exchange Contracts

2 unchanged sentences

The Company purchases foreign currency forward contracts with terms of less than 18 months.

The aggregate gross notional value of foreign exchange contracts at March 31, 2026 was zero .

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

Derivatives not designated as hedging instruments Balance Sheet Location March 31, 2026 December 31, 2025

The aggregate gross notional value of foreign exchange contracts at June 30, 2026 was zero .

Derivatives not designated as hedging instruments Balance Sheet Location June 30, 2026 December 31, 2025

Interest rate swaps Other assets

2 unchanged sentences

The fair values of the foreign exchange contracts were based on Level 2 observable inputs using quoted market prices for similar assets in an active market.

The amounts of gains and losses, realized and unrealized, related to the Company’s derivative financial instruments designated as hedging instruments are recognized in other comprehensive income, net of taxes, as follows (in thousands):

Three Months Ended

June 30, Six Months Ended

Derivatives designated as hedging instruments 2026 2025 2026 2025

Foreign exchange contracts $ ( 24 ) $ ( 461 ) $ 44 $ ( 590 )

Realized gains and losses on foreign exchange contracts that are reported in other comprehensive income are reclassified into cost of sales as the underlying inventory purchased is sold.

During the three months ended March 31, 2026 and 2025, the Company reclassified approximately $ 0.1 million of cash flow hedges in accumulated other comprehensive losses to earnings, related to foreign exchange contracts recognized in cost of sales.

At March 31, 2026, the estimated amount of existing net losses expected to be reclassified into earnings within the next 12 months was less than $ 0.1 million.

Realized gains and losses on foreign exchange contracts that are reported in other comprehensive income (loss) are reclassified into cost of sales as the underlying inventory purchased is sold.

During the three and six months ended June 30, 2026, the Company reclassified less than $ 0.1 million of cash flow hedges in accumulated other comprehensive losses to earnings, related to foreign exchange contracts recognized in cost of sales.

During the three and six months ended June 30, 2025, the Company reclassified $ 0.02 million and $ 0.1 million, respectively, of cash flow hedges in accumulated other comprehensive losses to earnings, related to foreign exchange contracts recognized in cost of sales.

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

Interest and mark to market gain (loss) related to the Company’s derivative financial instruments not designated as hedging instruments that were recognized in earnings are as follows (in thousands):

Three Months Ended

June 30, Six Months Ended

Derivatives not designated as hedging instruments Location of gain (loss) 2026 2025 2026 2025

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

NOTE 7 — STOCK COMPENSATION

As of March 31, 2026, there were 543,284 shares available for the grant of awards under the Company’s Amended and Restated 2000 Long Term Incentive Plan (“Plan”), assuming maximum performance of performance-based awards.

On June 18, 2026, the stockholders of the Company approved an amendment and restatement of the Company's Amended and Restated 2000 Long Term Incentive Plan (the "Plan").

The amendment and restatement of the Plan revised the terms and conditions of the Plan to, among other things, increase the shares available for grant under the Plan by 1,000,000 shares.

As of June 30, 2026, there were 1,468,979 shares available for the grant of awards under the Plan, assuming maximum performance of performance-based awards.

Option Awards

A summary of the Company’s stock option activity and related information for the three months ended March 31, 2026 is as follows:

A summary of the Company’s stock option activity and related information for the six months ended June 30, 2026 is as follows:

Options Weighted-

4 unchanged sentences

827,000 $ 11.07

Options outstanding, March 31, 2026 (1)

Exercises ( 49,375 ) 5.96

Expirations ( 8,500 ) 15.69

Options outstanding, June 30, 2026 (1)

769,125 11.35 3.4 $ 194

Options exercisable, March 31, 2026

Options exercisable, June 30, 2026

687,000 $ 11.86 2.8 $ 50

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(1) Includes a non-plan stock option award of 15,000 stock options granted in 2024.

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had all option holders exercised their exercisable, in-the-money stock options on March 31, 2026.

The intrinsic value is calculated for each in-the-money stock option as the difference between the closing price of the Company’s common stock on March 31, 2026 and the exercise price.

The intrinsic value is calculated for each in-the-money stock option as the difference between the closing price of the Company’s common stock on June 30, 2026 and the exercise price.

Restricted Stock

A summary of the Company’s restricted stock activity and related information for the three months ended March 31, 2026 is as follows:

A summary of the Company’s restricted stock activity and related information for the six months ended June 30, 2026 is as follows:

Shares Weighted-

4 unchanged sentences

Vested ( 486,977 ) 5.74

Non-vested restricted shares, March 31, 2026

( 2,627 ) 7.11

Non-vested restricted shares, June 30, 2026

743,132 $ 5.50

Total unrecognized compensation expense remaining (in thousands) $ 3,628

Weighted-average years expected to be recognized over 1.6

The total fair value of restricted stock that vested during the three months ended March 31, 2026 was $ 0.7 million.

The total fair value of restricted stock that vested during the six months ended June 30, 2026 was $ 2.9 million.

Performance shares

Each performance award represents the right to receive up to 150 % of the target number of shares of common stock.

The number of shares of common stock earned will be determined at the end of the performance period, based on the attainment of specified performance goals at the time of grant, as determined by the Compensation Committee of the Company’s board of directors (the “Board of Directors”).

The shares are subject to the terms and conditions of the Company’s Plan.

The number of shares of common stock earned will be determined at the end of the performance period, based on the attainment of

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

A summary of the Company’s performance-based award activity and related information for the three months ended March 31, 2026 is as follows:

June 30, 2026

specified performance goals at the time of grant, as determined by the Compensation Committee of the Company’s board of directors (the “Board of Directors”).

The shares are subject to the terms and conditions of the Company’s Plan.

A summary of the Company’s performance-based award activity and related information for the six months ended June 30, 2026 is as follows:

average grant

4 unchanged sentences

( 187,280 ) 5.92

Non-vested performance-based awards, March 31, 2026

Non-vested performance-based awards, June 30, 2026

803,248 $ 5.70

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Three Months Ended

Six Months Ended

Stock Compensation Expense Components 2026 2025 2026 2025

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Total Stock Compensation Expense $ 949 $ 1,044 $ 1,992 $ 2,106

NOTE 8 — LOSS PER COMMON SHARE

Basic loss per common share has been computed by dividing net loss by the weighted-average number of shares of the Company’s common stock outstanding during the relevant period.

Diluted loss per common share adjusts net loss and basic loss per common share for the effect of all potentially dilutive shares of the Company’s common stock.

NOTE 8 — INCOME (LOSS) PER COMMON SHARE

Basic income (loss) per common share has been computed by dividing net income (loss) by the weighted-average number of shares of the Company’s common stock outstanding during the relevant period.

Diluted income (loss) per common share adjusts net income (loss) and basic income (loss) per common share for the effect of all potentially dilutive shares of the Company’s common stock.

Anti-dilutive securities are not included in the computation of diluted earnings per share under the treasury stock method.

The calculations of basic and diluted loss per common share for the three months ended March 31, 2026 and 2025 are as follows:

The calculations of basic and diluted income (loss) per common share for the three and six months ended June 30, 2026 and 2025 are as follows:

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

(in thousands, except per share amounts)

Net loss – Basic and Diluted

Net income (loss) – Basic and Diluted

$ 19,609 $ ( 39,699 ) $ 14,837 $ ( 43,900 )

3 unchanged sentences

Weighted-average shares outstanding – Diluted 22,612 21,686 22,325 21,639

Basic loss per common share

Basic income (loss) per common share

$ 0.89 $ ( 1.83 ) $ 0.68 $ ( 2.03 )

Diluted loss per common share

Diluted income (loss) per common share

$ 0.87 $ ( 1.83 ) $ 0.66 $ ( 2.03 )

Antidilutive Securities (1)

826 1,583 1,054 1,500

(1) Stock options and other stock awards that have been excluded from the denominator as their inclusion would have been anti-dilutive.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

NOTE 9— INCOME TAXES

Income tax benefit of $ 1.7 million and $ 0.1 million for the three months ended March 31, 2026 and 2025, respectively, represent taxes on both U.S.

Income tax provision of $ 8.1 million and $ 6.4 million for the three and six months ended June 30, 2026, respectively, represent taxes on both U.S.

and foreign earnings at a combined effective income tax rate of 29.2 % and 30.2 %, respectively.

The effective tax rate for the three months ended March 31, 2026 differs from the federal statutory income tax rate of 21.0% primarily due to state and local tax expense, the impact of non-deductible expenses, and foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance, partially offset by a benefit for federal credits.

The effective tax rate for the three months ended March 31, 2025 differs from the federal statutory income tax rate of 21.0% primarily due to foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance.

The effective tax rate for the three months ended June 30, 2026 differs from the federal statutory income tax rate of 21.0% primarily due to the impact of non-deductible expenses.

The effective tax rate for the six months ended June 30, 2026 differs from the federal statutory income tax rate of 21.0% primarily due to foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance.

Income tax benefit of $ 2.8 million and $ 2.9 million for the three and six months ended June 30, 2025, respectively, represent taxes on both U.S.

and foreign earnings at a combined effective income tax benefit rate of 6.5 % and 6.2 %, respectively.

The effective tax rate for the three and six months ended June 30, 2025 differs from the federal statutory income tax rate of 21.0% primarily due to a partial valuation allowance on U.S.

deferred tax assets that are not more likely than not to be realized as a result of the goodwill impairment in the second quarter.

The Company has identified the following jurisdictions as “major” tax jurisdictions:

1 unchanged sentence

The Company evaluates its tax positions on a quarterly basis and revises its estimates accordingly.

There were no material changes to the Company’s uncertain tax positions, interest, or penalties during the three-month periods ended March 31, 2026 and March 31, 2025.

There were no material changes to the Company’s uncertain tax positions, interest, or penalties during the three-month periods ended June 30, 2026 and June 30, 2025.

The One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025 with various provisions impacting the Company, none of which are material to the 2026 financial statements.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

NOTE 10 – BUSINESS SEGMENTS

6 unchanged sentences

The Company has segmented its operations to reflect the manner in which the CODM reviews and evaluates the results of its operations.

The CODM allocates operating and capital resources and evaluates the performance of the Company’s segments based on segment net sales, segment gross margin, and segment (loss) income from operations.

The CODM allocates operating and capital resources and evaluates the performance of the Company’s segments based on segment net sales, segment gross margin, and segment income (loss) from operations.

Such measures give recognition to specifically identifiable operating costs.

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Segment Performance Measures:

7 unchanged sentences

Total gross margin $ 93,239 $ 50,839 $ 147,408 $ 101,476

(Loss) income from operations

Income (loss) from operations

$ 37,935 $ ( 29,620 ) $ 43,113 $ ( 27,722 )

International ( 1,206 ) ( 3,328 ) ( 3,703 ) ( 6,280 )

Unallocated corporate (expenses) income (1)

Unallocated corporate expenses (1)

( 5,104 ) ( 4,259 ) ( 10,015 ) ( 2,106 )

(Loss) income from operations

Income (loss) from operations

$ 31,625 $ ( 37,207 ) $ 29,395 $ ( 36,108 )

(1) Unallocated corporate income for the three months ended March 31, 2025 included a net legal settlement gain of $ 6.4 million.

(1) Unallocated corporate expense for the six months ended June 30, 2025 included a net legal settlement gain of $ 6.4 million.

Details see NOTE 11 — CONTINGENCIES.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Supplemental information for significant segment expenses:

15 unchanged sentences

International 3,274 3,654 6,940 7,400

Unallocated corporate expenses (income) 4,911 ( 2,153 )

Unallocated corporate expenses 5,104 4,259 10,015 2,106

Total selling, general and administrative expenses $ 39,539 $ 37,495 $ 76,325 $ 68,963

Goodwill impairment:

$ — $ 33,237 $ — $ 33,237

Restructuring expenses:

$ 1,969 $ — $ 3,823 $ —

International 11 — 187 —

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

(in thousands)

9 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

2026 December 31,

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

NOTE 11 — CONTINGENCIES

3 unchanged sentences

In March 2008, the U.S.

Environmental Protection Agency (the “EPA”) announced that the San Germán Ground Water Contamination site in Puerto Rico (the “Site”) had been added to the Superfund National Priorities List due to organic compounds present in the local drinking water supply.

Environmental Protection Agency (the “EPA”) announced that the San Germán Ground Water Contamination site in Puerto Rico (the “Site”) had been added to the Superfund National Priorities List due to volatile organic compounds (“VOCs”) present in the local drinking water supply.

In May 2008, WSPR received from the EPA a Notice of Potential Liability and Request for Information pursuant to 42 U.S.C.

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In order to protect the health of its employees and continue its business operations, WSPR has implemented corrective action measures to respond to vapor intrusion, such as sealing the floors of the building and conducting periodic air monitoring to address potential exposure.

On August 13, 2015, the EPA released its remedial investigation and feasibility study (“RI/FS”) for the Site.

On December 11, 2015, the EPA issued the Record of Decision (“ROD”) for an initial operable unit (“OU-1”), electing to implement its preferred remedy which consists of soil vapor extraction and dual-phase extraction/in-situ treatment.

This selected remedy includes soil vapor extraction (“SVE”) to address soil (vadose zone) source areas at the Site, impermeable cover as necessary for the implementation of SVE, dual phase extraction in the shallow saprolite zone, and in-situ treatment as needed to address residual sources.

On December 11, 2015, the EPA issued the Record of Decision (“ROD”) for an initial operable unit (“OU-1”), electing to implement its preferred remedy, which consists of soil vapor extraction (“SVE”) and dual-phase extraction/in-situ treatment.

This selected remedy includes SVE to address soil (vadose zone) source areas at the Site, impermeable cover as necessary for the implementation of SVE, dual phase extraction in the shallow saprolite zone, and in-situ treatment as needed to address residual sources.

The EPA’s total net present worth estimated cost for its selected remedy is $ 7.3 million.

In February 2017, the EPA indicated that it planned to expand its field investigation for the RI/FS to a second operable unit (“OU-2”) to determine the nature and extent of the groundwater damage at and from the Site and to determine the nature of the remedial action needed to address the damage.

In February 2017, the EPA indicated that it planned to expand its investigation to a second operable unit (“OU-2”) to determine the nature and extent of the groundwater damage at and from the Site and to determine the nature of the remedial action needed to address the damage.

The EPA requested access to the property occupied by WSPR to install monitoring wells and to undertake groundwater sampling as part of this expanded investigation.

WSPR consented to the EPA’s access request, provided that the EPA received PRIDCO’s consent as the property owner.

The EPA has also issued notices of potential liability to a number of other entities affiliated with the Site, which used the organic compounds of concern.

The EPA has also issued notices of potential liability to a number of other entities that historically used VOCs at the site.

In December 2018, the Company, WSPR, and other identified potentially responsible parties affiliated with the Site entered into tolling agreements with the U.S.

government to extend the statute of limitations for potential claims for the recovery of response costs for the initial operable unit under Section 107 of CERCLA.

The tolling agreements have been extended multiple times and currently expire in November 2025.

In October 2025, the U.S.

government requested that the parties extend the tolling agreement until November 10, 2026.

WSPR agreed to the extension.

The tolling agreements have been extended multiple times and currently expires on November 10, 2026.

The tolling agreements do not constitute in any way an admission or acknowledgment of any fact, conclusion of law, or liability by the parties to the agreements.

9 unchanged sentences

Government simultaneously lodged the Decree for public comment.

No comments were received during the public

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

comment period.

No comments were received during the public comment period.

On September 6, 2023, at the conclusion of the public comment period, the U.S.

Government filed a Motion to Enter the Decree, and the court entered the Decree on December 14, 2023, thereby effectuating the Decree.

On January 10, 2024, the EPA issued a notice to proceed with the OU-1 remedial work.

On January 10,

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

2024, the EPA issued a notice to proceed with the OU-1 remedial work.

The Company thereafter commenced remedial work on OU-1 in accordance with the Decree.

3 unchanged sentences

In the event of one or more adverse determinations related to this matter, it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material.

As of March 31, 2026, the remaining probable and reasonably estimable liability related to the above remedial design and remedial action for OU-1 is $ 5.3 million.

As of June 30, 2026, the remaining probable and reasonably estimable liability related to the above remedial design and remedial action for OU-1 is $ 5.2 million.

Legal Settlement Gain

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

NOTE 12 — OTHER

Cash dividends

Dividends declared in the three months ended March 31, 2026 were as follows:

Dividends declared in the six months ended June 30, 2026 were as follows:

Dividend per share Date declared Date of record Payment date

$ 0.0425 3/9/2026 5/1/2026 5/15/2026

During the three months ended March 31, 2026, the Company paid dividends of $ 1.0 million.

This included payments made on February 13, 2026 of $ 0.9 million to stockholders of record on January 30, 2026 and payments of $ 0.1 million for dividends payable upon the vesting of restricted shares.

In the three months ended March 31, 2026, the Company reduced retained earnings for the accrual of $ 1.0 million relating to the dividend payable on May 15, 2026.

$ 0.0425 6/18/2026 7/31/2026 8/14/2026

During the six months ended June 30, 2026, the Company paid dividends of $ 2.0 million.

This included payments made on February 13, 2026 and May 15, 2026 of $ 0.9 million and $ 0.9 million to stockholders of record on January 30, 2026 and May 1, 2026, and payments of $ 0.2 million for dividends payable upon the vesting of restricted shares.

In the three months ended June 30, 2026, the Company reduced retained earnings for the accrual of $ 1.0 million relating to the dividend payable on August 14, 2026.

On August 4, 2026, the Board declared a quarterly dividend of $ 0.0425 per share of common stock payable on November 13, 2026 to stockholders of record on October 30, 2026.

Stock repurchase program

1 unchanged sentence

The repurchase authorization permits the Company to effect repurchases from time to time through open market purchases and privately negotiated transactions.

No shares were repurchased during the three months ended March 31, 2026.

As of March 31, 2026, the remaining dollar amount available for repurchases under the Board of Directors’ authorized plan was $ 11.1 million.

No shares were repurchased during the six months ended June 30, 2026.

As of June 30, 2026, the remaining dollar amount available for repurchases under the Board of Directors’ authorized plan was $ 11.1 million.

Supplemental cash flow information

Three Months Ended

Six Months Ended

(in thousands)

2 unchanged sentences

Cash paid for taxes, net of refunds 455 2,980

Non-cash investing activities:

Leasehold improvements funded by tenant improvement allowances 5,138 —

Prepaid expenses and other current assets

2026 December 31,

(in thousands)

Tariff receivables $ 36,567 $ —

Other prepaid expenses and current assets 12,475 12,147

$ 49,042 $ 12,147

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

Components of accumulated other comprehensive loss, net

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

(in thousands)

3 unchanged sentences

Balance at end of period $ ( 17,500 ) $ ( 17,772 ) $ ( 17,500 ) $ ( 17,772 )

Accumulated deferred gains on cash flow hedges:

Accumulated deferred gains (losses) on cash flow hedges:

Balance at beginning of period $ 24 $ 118 $ ( 44 ) $ 247

Change in unrealized gains (losses)

— ( 483 ) — ( 675 )

Amounts reclassified from accumulated other comprehensive loss:

Settlement of cash flow hedge (1)

( 24 ) 22 44 85

Net change in cash flow hedges, net of taxes of $ 0 , $ 0 , $ 0 , $ 0

( 24 ) ( 461 ) 44 ( 590 )

Balance at end of period $ — $ ( 343 ) $ — $ ( 343 )

9 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements