What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-07-31 compared with 2025-08-05 · 105 added, 88 removed, 312 unchanged (38% of the section changed)

Our financial statements include the consolidated accounts of National Rural Utilities Cooperative Finance Corporation (“CFC”) and National Cooperative Services Corporation (“NCSC”).

Our principal operations are currently organized for management reporting purposes into two business segments, which are based on the accounts of the CFC and NCSC entities included in our consolidated financial statements and are discussed below.

On December 1, 2023, Rural Telephone Finance Cooperative (“RTFC”), which was consolidated into our financial statements in prior periods, completed the sale of its business to NCSC (hereon referred to as the “RTFC sale transaction”) and was subsequently dissolved.

Our principal operations are currently organized for management reporting purposes into two business segments, which are based on the accounts of each of the legal entities included in our consolidated financial statements:

CFC and NCSC, which are discussed below.

The business affairs of CFC and NCSC are governed by separate boards of directors for each entity.

4 unchanged sentences

All references to members within this document include members, associates and affiliates of CFC and its consolidated entities, except where indicated otherwise.

CFC is a member-owned, nonprofit finance cooperative association incorporated under the laws of the District of Columbia in April 1969.

CFC’s principal purpose is to provide its members and associates with financing to supplement the loan

programs of the Rural Utilities Service (“RUS”) of the United States Department of Agriculture (“USDA”).

CFC extends loans to its rural electric members for construction, acquisitions, system and facility repairs and maintenance, enhancements and ongoing operations to support the goal of electric distribution and generation and transmission (“power supply”) systems providing reliable, affordable power to the customers they serve.

CFC is a member-owned, finance cooperative association incorporated under the laws of the District of Columbia in April 1969.

CFC’s principal purpose is to provide its members and associates with financing to supplement the loan programs of the Rural Utilities Service (“RUS”) of the United States Department of Agriculture (“USDA”).

CFC extends loans to its rural electric members for construction, acquisitions, system and facility repairs and maintenance, enhancements and

ongoing operations to support the goal of electric distribution and generation and transmission (“power supply”) systems providing reliable, affordable power to the customers they serve.

CFC also provides its members and associates with credit enhancements in the form of letters of credit and guarantees of debt obligations.

As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities.

CFC is exempt from federal income taxes under Section 501(c)(4) of the Internal Revenue Code.

CFC is exempt from federal income taxes under Section 501(c)(4) of the Internal Revenue Code and is a nonprofit cooperative association in the District of Columbia.

As a member-owned cooperative, CFC’s objective is not to maximize profit, but rather to offer members cost-based financial products and services.

5 unchanged sentences

As a Section 501(c)(4) tax-exempt, member-owned cooperative, CFC cannot issue equity securities.

NCSC is a taxable cooperative incorporated in 1981 in the District of Columbia as a member-owned cooperative association.

The principal purpose of NCSC is to provide financing to its members and associates, which consist of two classes:

NCSC, doing business as Utility Capital Solutions, is a taxable cooperative incorporated in 1981 in the District of Columbia as a member-owned cooperative association.

The principal purpose of NCSC is to provide financial services for the benefit of its members and associates, which consist of two classes:

NCSC electric and NCSC telecommunications.

6 unchanged sentences

NCSC is headquartered with CFC in Dulles, Virginia.

Cooperative Securities LLC (“Cooperative Securities”) is a limited liability company organized and incorporated in 2021 in Delaware and a wholly owned subsidiary of NCSC.

Cooperative Securities is a broker-dealer registered with the U.S.

Securities and Exchange Commission (“SEC”), and is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.

Cooperative Securities provides institutional debt placement services, which may include advising, arranging and structuring private debt financing transactions, for NCSC’s members, and for-profit and not-for-profit entities that are owned, operated or controlled by, or provide a significant benefit to, certain rural utility providers.

CFC was established by and for the rural electric cooperative network to provide financing solutions to electric cooperatives.

1 unchanged sentence

Focus on Electric Lending

As a member-owned, nonprofit finance cooperative association, our primary objective is to provide our members with the credit products they need to fund their operations.

As a member-owned finance cooperative association, our primary objective is to provide our members with the credit products they need to fund their operations.

As such, we primarily focus on lending to electric systems and securing access to capital through diverse funding sources that allow us to offer cost based credit products to our members.

5 unchanged sentences

We continue to issue debt securities, such as secured collateral trust bonds, unsecured medium-term notes, subordinated deferrable interest notes and dealer commercial paper, in the capital markets.

We also have access to funds through bank revolving line of credit arrangements, government-

guaranteed programs such as funding from the Federal Financing Bank that is guaranteed by RUS through the Guaranteed Underwriter Program of the USDA (the “Guaranteed Underwriter Program”), as well as a note purchase agreement with the Federal Agricultural Mortgage Corporation (“Farmer Mac”).

We also have access to funds through bank revolving line of credit arrangements, government-guaranteed programs such as funding from the Federal Financing Bank that is guaranteed by RUS through the Guaranteed Underwriter Program of the USDA (the “Guaranteed Underwriter Program”), as well as a revolving note purchase agreement with the Federal Agricultural Mortgage Corporation (“Farmer Mac”).

We provide additional information on our funding sources in “Item 7.

22 unchanged sentences

Class E membership includes organizations that are Class A, B and C members of CFC, or eligible for such membership, and are approved for membership by the NCSC Board of Directors.

Class E associates may include members of CFC, entities eligible to be members of CFC and for-profit and not-for-profit entities owned, controlled or operated by, or provide significant benefit to, Class A, B and C members of CFC.

Class T membership includes cooperative corporations, not-for-profit corporations, private corporations, public corporations, utility districts and other public bodies that are approved by the NCSC Board of Directors and are actively borrowing or are eligible to borrow from RUS’s traditional infrastructure loan program.

Class E associates may include members of CFC, entities eligible to be members of CFC and for-profit and not-for-profit entities that are owned, controlled or operated by, or provide significant benefit to, Class A, B and C members of CFC.

Class T membership includes cooperative corporations, not-for-profit corporations, private corporations, public corporations, utility districts and other public bodies that are approved by the

NCSC Board of Directors and are actively borrowing or are eligible to borrow from RUS’s traditional infrastructure loan program.

These companies must be engaged directly or indirectly in furnishing telephone services as the licensed incumbent carrier.

8 unchanged sentences

LOAN AND GUARANTEE PROGRAMS

CFC lends to its members and associates and also provides credit enhancements in the form of letters of credit and guarantees of debt obligations.

NCSC also lends and provides credit enhancements to its members and associates.

For information on the membership of CFC and NCSC, see “Item 1.

Business—Members.”

CFC and NCSC loan commitments generally contain provisions that restrict borrower advances or trigger an event of default if there is any material adverse change in the business or condition, financial or otherwise, of the borrower.

21 unchanged sentences

Line of credit loans are typically revolving facilities.

Certain line of credit loans require

the borrower to pay off the principal balance for at least five consecutive business days at least once during each 12-month period.

Certain line of credit loans may require the borrower to pay off the principal balance for at least five consecutive business days at least once during each 12-month period.

Line of credit loans are generally unsecured and may be conditional or unconditional facilities.

8 unchanged sentences

NCSC Electric Loan Programs

NCSC makes loans to electric cooperatives and their subsidiaries that provide non-electric services in the energy and telecommunication industries as well as to entities that provide substantial benefit to CFC members, including eligible solar energy providers and investor-owned utilities.

NCSC makes loans to electric cooperatives and their subsidiaries that provide non-electric services in the energy and telecommunication industries as well as to entities that provide substantial benefit to CFC members, including independent energy and transmission providers and investor-owned utilities.

Loans to NCSC associates may require a guarantee of repayment to NCSC from the CFC member cooperative with which it is affiliated.

3 unchanged sentences

NCSC also provides revolving line of credit loans to assist electric borrowers with liquidity and cash management on terms similar to those provided by CFC as described herein.

NCSC offers both its electric and telecommunications members and associates equipment financing for leased assets, such as vehicles, with flexible payment terms and the option to purchase the equipment for a Terminal Rental Adjustment Clause (“TRAC”) value at the end of the lease term.

CFC unconditionally guarantees full indemnification for any losses of NCSC in financing leased assets to its members pursuant to a guarantee agreement with NCSC.

CFC unconditionally guarantees full payment to NCSC for amounts equal to any losses in financing leased assets to its members pursuant to a guarantee agreement with NCSC.

Project Finance

2 unchanged sentences

Generally, the construction and permanent financing is documented under a single financing agreement that includes a construction and term loan and a tax equity/credit bridge loan.

The construction and term loan is secured by the project’s assets and/or the developer’s interest in the project.

The construction and term loan is secured by the project’s

assets and/or the developer’s interest in the project.

Any tax equity bridge loans are repaid with tax equity investment funds.

1 unchanged sentence

Private Placements

NCSC’s wholly owned subsidiary, Cooperative Securities LLC (“Cooperative Securities”), is a broker-dealer registered with the U.S.

Securities and Exchange Commission (“SEC”).

Cooperative Securities is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.

Cooperative Securities offers institutional debt

placement services, which may include advising, arranging and structuring private debt financing transactions, to rural electric cooperatives, including NCSC’s electric members and associates.

Cooperative Securities, NCSC’s wholly owned subsidiary, offers institutional debt placement services to rural electric cooperatives, including NCSC’s electric members and associates.

These services may include advising, arranging and structuring private debt financing transacti o ns.

Cooperative Securities received an approval to provide services related to debt financing transactions conducted pursuant to Rule 144A of the Securities Act from the Financial Industry Regulatory Authority (“FINRA”) in May 2026.

NCSC Telecommunications (“Telecom”) Loan Programs

20 unchanged sentences

Long-term loans made by CFC typically are senior secured on parity with other secured lenders (primarily RUS), if any, by all assets and revenue of the borrower, subject to standard liens typical in utility mortgages such as those related to taxes, worker’s compensation awards, mechanics’ and similar liens, rights-of-way and governmental rights.

We are able to obtain liens on parity with liens for the benefit of RUS because RUS’ form of mortgage expressly provides for other lenders such as CFC to have a parity lien position if the borrower satisfies certain conditions or obtains a written lien accommodation from RUS.

We are able to obtain

liens on parity with liens for the benefit of RUS because RUS’ form of mortgage expressly provides for other lenders such as CFC to have a parity lien position if the borrower satisfies certain conditions or obtains a written lien accommodation from RUS.

When we make loans to borrowers that have existing loans from RUS, we generally require those borrowers to either obtain such a lien accommodation or satisfy the conditions necessary for our loan to be secured on parity under the mortgage with the loan from RUS.

39 unchanged sentences

Other permitted investments include highly rated obligations, such as commercial paper, certain obligations of foreign governments, municipal securities, asset-backed securities, mortgage-backed securities and certain corporate bonds.

In addition, we may invest in overnight or term repurchase agreements.

Investments are denominated in U.S.

5 unchanged sentences

electric utility industry, a sub-sector of the energy sector.

According to a report published in June 2025 by the National Rural Electric Cooperative Association (“NRECA”), electric cooperatives serve as power providers for approximately 42 million people, including over 22 million businesses, homes, schools and farms across 48 states.

According to a report published in April 2026 by the National Rural Electric Cooperative Association (“NRECA”), electric cooperatives serve as power providers for approximately 42 million people, including over 23 million businesses, homes, schools and farms across 48 states.

Electric cooperatives provide power to approximate ly 56% of the nation’s land mass.

Based on the latest annual data reported by the U.S.

Energy Information Administration, a statistical and analytical agency within the U.S.

Department of Energy, the electric utility industry had revenue of approximately $491 billion in 2023.

CFC was established by electric utility cooperatives to serve as a supplemental financing source to RUS loan programs and to mitigate uncertainty related to government funding.

17 unchanged sentences

Our electric distribution and power supply members are subject to regulation by various federal, regional, state and local authorities with respect to the environmental effects of their operations.

At the federal level, the U.S.

Environmental Protection Agency (“EPA”) from time to time proposes rulemakings that could force the electric utility industry to incur capital costs to comply with potential new regulations and possibly retire coal-fired generating capacity.

Since there are only 11 states in which some or all electric cooperatives are subject to state regulatory oversight of their rates and tariffs, in most cases any associated costs of compliance can be passed on to cooperative consumers without additional regulatory approval.

On April 25, 2024, the EPA announced carbon pollution standards for coal and gas-fired power plants.

The rules set carbon dioxide limits for new gas-fired combustion turbines and carbon dioxide emission guidelines for existing coal, oil and gas-fired steam generating units.

On June 11, 2025, the EPA issued a proposed rule that will eliminate existing limits on greenhouse gas emissions from coal and gas-fired power plants promulgated under Section 111 of the Clean Air Act.

The proposed rule, which is in a comment period, will face scrutiny from legal advocates and environmental organizations.

Facilitation of Rural Broadband Expansion by Electric Cooperatives

Many electric cooperatives are making investments in fiber to support core electric plant communications.

Some of these electric cooperatives are leveraging these fiber assets to offer broadband services, either directly or through partnering with local telecommunication companies and others.

Over 30 electric cooperatives were awarded approximately $250 million in federal funding through the Connect America Fund Phase II auction (“CAF II”) process by the Federal Communications Commission (“FCC”) that was held in 2018.

The awarded funds are being distributed over a 10-year period.

More than 190 electric cooperatives, many of which are already offering or building out projects, were awarded approximately $1.6 billion though the FCC’s Rural Development Opportunity Fund (“RDOF”) in 2021.

Those funds also will be distributed over a 10-year period.

As federal and state governments increase funding opportunities for electric cooperatives in order to offer broadband services, we will continue to increase our credit support, which may include loans and/or letters of credit, to borrowers who participate in CAF II, RDOF and other programs designed to increase broadband services in rural areas.

Our aggregate loans outstanding to CFC electric distribution cooperative members relating to broadband projects, which we started tracking in October 2017, was approxi mately $3,441 million and $3,103 million as of May 31, 2025 and 2024, respectively.

Electric Cooperative Industry Trends and Developments

Emerging developments and trends in the electric cooperative sector continue to present opportunities and challenges for our electric cooperative members and influence the demand for capital and credit products we provide.

These trends include (i) changing federal regulatory and financing landscape;

(ii) increased electricity demand, large-load development and capital investments;

(iii) supply chain and equipment constraints;

and (iv) grid reliability and resiliency.

Changing Federal Regulatory and Financing Landscape

Recent federal actions have, on balance, been supportive of the baseload generation resources our members rely on.

The One Big Beautiful Bill Act, enacted in July 2025, phased out or terminated several clean energy tax credits established under the 2022 Inflation Reduction Act, particularly for wind and solar, while largely preserving incentives for battery storage, clean fuels and carbon capture.

The Department of Energy has tailored several loan programs to bolster coal, natural gas and nuclear generation, and the current administration has announced significant funding initiatives intended to keep existing coal generation assets in service to support electric reliability needs.

In addition, recent federal policy actions have reflected a broader emphasis on domestic energy production, electric reliability, and energy infrastructure development.

On February 12, 2026, the U.S.

Environmental Protection Agency repealed existing limits on greenhouse gas emissions from coal and gas-fired power plants promulgated under Section 111 of the Clean Air Act.

This action may reduce compliance requirements for certain generating facilities, affect generation resource planning and retirement decisions, and influence the economics of existing and future generation assets.

Cooperative leaders have also engaged with the current administration through initiatives such as the Energy Dominance Council, which may provide additional opportunities for cooperative priorities to be considered in future policy discussions.

Efforts to enact comprehensive permitting reform have continued, although a comprehensive legislative package has not been enacted and permitting timelines for major transmission projects remain largely unchanged.

The current administration and Congress have also continued to evaluate potential reforms to the Federal Emergency Management Agency (“FEMA”), including proposals to restructure the agency, streamline disaster assistance programs and accelerate the delivery of federal aid.

Electric cooperatives rely on FEMA reimbursement programs to recover a large portion of the costs incurred to restore and strengthen infrastructure following severe weather events.

While broader reforms remain under consideration, cooperatives continue to receive FEMA reimbursements for eligible restoration and infrastructure hardening expenditures.

Federal financing programs, including traditional RUS electric loan programs and the Empowering Rural America (“New ERA”) and Powering Affordable Clean Energy (“PACE”) programs, continue to represent a significant source of capital for electric cooperatives.

While many projects have received approvals or funding commitments, program implementation continues to evolve, and timing gaps between award and disbursement are expected to continue to generate demand for interim and bridge financing from CFC.

Increased Electricity Demand, Large-Load Development and Capital Investments

According to S&P Global Inc., electricity demand is forecasted to grow substantially across all U.S.

regions through 2040, driven primarily by new data centers and manufacturing, followed by broader electrification.

According to the North American Electric Reliability Corporation (“NERC”) 2025 Long-Term Reliability Assessment that was published in January 2026, summer peak demand is projected to increase by approximately 224 gigawatts (“GW”) over the next 10 years, 69% higher than the prior year’s projection of 132 GW.

Winter peak demand is projected to grow by approximately 245 GW over the same period, continuing to outpace summer and exceed prior-year projections.

New data centers for artificial intelligence (“AI”) and the digital economy account for most of the projected increase in North American electricity demand over the next 10 years.

While a number of electric cooperatives currently serve data centers or cryptocurrency mining facilities, many proposed large-load projects remain in evaluation or negotiation and have not yet resulted in definitive service agreements.

Cooperatives are managing associated risks through upfront infrastructure contributions, prepaid service arrangements, deposits, minimum revenue commitments and other contractual protections.

Management does not believe data center-related development has, to date, materially contributed to recent loan growth, although successful project development could drive significant future infrastructure investment and corresponding demand for capital from CFC.

Generation and transmission (“G&T”) cooperatives are experiencing one of the largest capital investment cycles in recent decades, driven by native load growth, reserve margin requirements, resource adequacy needs and reliability concerns.

These investments are primarily intended to serve existing member load rather than support data center development.

Many G&Ts are financing these projects through a combination of CFC, the capital markets, commercial lenders and RUS, and often require interim financing to bridge RUS approval and funding timelines.

Supply Chain and Equipment Constraints

Many electric cooperatives continue to face extended lead times for gas turbines, transformers, switchgear and other critical equipment, which have increased project costs, delayed construction schedules and lengthened the duration of financing our members require.

Grid Reliability and Resiliency

The 2026 Long-Term Reliability Assessment by NERC highlights reliability concerns across portions of the United States driven by growing electricity demand, the retirement of certain dispatchable generation resources and challenges associated with bringing new resources online.

Extreme weather events, including hurricanes, winter storms, heat waves and wildfires, continue to strain electric infrastructure and have required substantial investment to repair, replace and upgrade affected assets.

In response, electric cooperatives are increasing investments in system hardening, grid modernization and other resiliency measures, which may increase demand for capital from CFC.

LENDING COMPETITION

1 unchanged sentence

CFC provides financial products and services to its members, primarily in the form of long-term secured and short-term unsecured loans, to supplement RUS financing, to provide loans to members that have elected not to borrow from RUS and to bridge long-term financing provided by RUS.

We also offer other financing options, such as credit support in the form of letters of credit and guarantees, loan syndications and loan participations.

We also offer other financing options, such as credit support in the form of letters of credit and

guarantees, loan syndications and loan participations.

Our credit products are tailored to meet the specific needs of each borrower, and we often offer specific transaction structures that our competitors do not provide.

1 unchanged sentence

Primary Lending Competitors

CFC’s primary competitor is CoBank, ACB, a federally chartered instrumentality of the U.S.

that is a member of the Farm Credit System.

CFC’s primary competitor is CoBank, ACB, a federally chartered instrumentality of the United States that is a member of the Farm Credit System.

CFC also competes with banks, other financial institutions and the capital markets to provide loans and other financial products to our members.

As a result, we are competing with the customer service, pricing and funding options our members are able to obtain from these sources.

We attempt to minimize the effect of competition by offering a variety of loan options and value-added services and by leveraging the working relationships developed with the majority of our members over the past 56 years.

We attempt to minimize the impact of competition by offering a variety of loan options and value-added services and by leveraging the strong relationships we have developed with most of our members over the past 57 years.

In addition to leveraging these working relationships, we differentiate ourselves from other financial institutions by focusing on customer service and product flexibility.

10 unchanged sentences

Based on financial data submitted to us by our electric utility members, we present the long-term debt outstanding to CFC by member class, RUS and other lenders in the electric cooperative industry as of December 31, 2025 and 2024 in the table below.

The data presented as of December 31, 2024 and 2023 were based on information reported by 807 distribution systems and 52 power supply systems for both periods.

The data presented as of December 31, 2025 were based on information reported by 803 distribution systems and 53 power supply systems.

The data presented as of December 31, 2024 were based on information reported by 807 distribution systems and 52 power supply systems.

(Dollars in thousands) Debt

24 unchanged sentences

In addition, the interpretation and application by regulators of the laws and regulations to which we are subject may change from time to time.

Certain of our contractual arrangements, such as those pertaining to funding obtained through the Guaranteed Underwriter Program, provide for the Federal Financing Bank and RUS to periodically review and assess CFC’s compliance with program terms and conditions.

As a member of the Financial Industry Regulatory Authority (“FINRA”), Cooperative Securities is subject to FINRA rules and regulations pertaining to broker-dealers and their customer-related activities.

Certain of our contractual arrangements, such as those

pertaining to funding obtained through the Guaranteed Underwriter Program, provide for the Federal Financing Bank and RUS to periodically review and assess CFC’s compliance with program terms and conditions.

As a member of FINRA, Cooperative Securities is subject to FINRA rules and regulations pertaining to broker-dealers and their customer-related activities.

Derivatives Regulation

8 unchanged sentences

HUMAN CAPITAL MANAGEMENT

CFC’s success in providing industry expertise and responsive service to meet the needs of our members across the U.S.

is dependent on the quality of service provided by our employees and their relationships with our members.

CFC’s success in providing industry expertise and responsive service to meet the needs of our members across the United States is dependent on the quality of service provided by our employees and their relationships with our members.

We therefore strive to align our human capital management strategy with our member-focused mission and core values of service, integrity and excellence.

7 unchanged sentences

We strive to provide both external candidates and internal employees with meaningful career opportunities ranging from entry-level to expert-level professional, management and executive positions.

We use a variety of methods to attract talent, including outreach to local universities, recruitment job boards, a referral bonus program and targeted industry-related job posting sites.

We use a variety of methods to attract talent, including direct sourcing, recruitment job boards, a referral bonus program and targeted industry-related job posting sites.

When appropriate, we engage with recruiting firms to ensure that we have surveyed a broad scope of active and passive candidates for certain critical positions.

We strive to ensure that CFC’s employment value proposition reflects a mission-driven cooperative so that we can attract individuals who are highly engaged with our vision to be our members’ most trusted financial resource.

One of our talent and culture strategic initiatives in fiscal year 2025 focused on assessing and updating our employment branding to ensure it remains relevant and engaging to potential candidates for employment.

In fiscal year 2026, we focused on assessing current total rewards offered to employees and identifying areas of opportunity to strengthen our competitiveness and ability to retain talent.

We welcome d 33 n ew hires this fiscal year and employe d 320 staff members as of May 31, 2026, all located in the United States.

The majority of our workforce is headquartered in Dulles, Virginia.

Because many of our business operations involve significant member-facing interaction with a relatively stable base of long-standing member-borrowers, we place a priority on the retention of high-performing employees who have extensive, in-depth experience serving the needs of our members.

Our turnover rate for fiscal year 2026 was 9.7%.

Our average employee tenure was eight years with more than a quarter of our workforce having 10 or more years of service with CFC.

Given the ongoing challenges of the professional talent market, we feel that CFC’s employee pool represents a balanced mix of long-term and new staff to serve our members.

We welcomed 59 new hires this fiscal year and employed 317 staff members as of May 31, 2025, all of which are located in the U.S.

The majority of our workforce is headquartered in Dulles, Virginia.

Our average employee tenure w as eight ye ars with roughly one third of the workforce having more than 10 years of service with CFC.

Employee Engagement and Development

In fiscal year 2025, CFC continued talent and culture initiatives with a focus on instilling a positive organizational culture characterized by high levels of employee satisfaction and engagement.

We also conducted an employee engagement survey soliciting feedback on drivers of employee satisfaction and leadership contribution;

83% of our staff participated in the survey.

Results were analyzed and reported at the corporate and group levels to collaborate on ways to promote employee engagement throughout CFC.

As part of our efforts to promote an engaged and collaborative workplace culture, we encourage employees to expand their capabilities and enhance their skills through employer-funded onsite training, external training, tuition assistance and professional events.

In fiscal year 2025, CFC employees participated in our corporate development programs and took advantage of external professional training opportunities, such as professional certifications, industry seminars and workshops.

We seek to create and tailor our training programs to meet the skill needs and employee interests, while also addressing key risks and compliance matters.

We also continued our annual Leadership Development Program, designed for managers at all levels, by providing training opportunities aligned to CFC’s core leadership competencies.

The program’s aim was to incorporate leadership competencies, such as business acumen, strategic agility, critical thinking skills and more, across a variety of programs, courses and levels to support and grow our leadership bench strength.

Additionally, CFC offered a variety of training opportunities to all staff to enhance their professional and technical skills such as presentation skills, performance management, project management, collaboration skills and more.

This is incorporated in custom-made programs like CFC Learning Bites, which allows staff to engage in knowledge-transfer sessions on various technical skills from CFC’s subject matter experts.

CFC also completed a corporate-wide training program called E3:

Engage, Enlighten, Excel, which is aligned with CFC’s Fiscal Year 2025 Corporate Scorecard goal “Employee Engagement.” E3 ’ s purpose was to provide educational opportunities for employees to gain a greater overall understanding of CFC ’ s corporate governance, connect with the

purpose and importance of CFC ’ s member meetings, recognize developments and challenges in the cooperative industry, and be aware of the risks and potential opportunities in the use of artificial intelligence.

CFC also supports employee development through a company-sponsored Toastmasters chapter, guest speakers from cooperative partners and staff visits to local electric cooperatives to allow employees to learn first-hand how their efforts contribute to our members’ success.

CFC recognizes the value of a connected and collaborative workplace that fosters strong relationships, encourages knowledge sharing, and creates meaningful opportunities for employee growth and development.

With the majority of employees located at our headquarters, team members benefit from regular interaction with colleagues, leaders, and subject matter experts, supporting engagement, mentorship, and professional development across the organization.

In fiscal year 2026, CFC maintained a company-wide Learning and Development program designed to build a highly capable and agile workforce aligned to business priorities.

The fourth quadrant of our balanced corporate scorecard focused on process improvement, data analytics, and AI.

This effort included the delivery of targeted educational sessions and workshops designed to build enterprise-wide capabilities in these areas, encouraging employees to leverage emerging technologies to improve efficiency and enhance member outcomes.

The program also promoted cross-functional collaboration and innovation by engaging employees across functions and levels, helping to surface internal expertise and drive continuous improvement.

See “Item 11.

Executive Compensation—Compensation Discussion and Analysis—Elements of Compensation—Annual Incentive” for additional information about our corporate scorecard.

Our approach to learning and development emphasizes a talent-based learning strategy that equips employees with job-relevant capabilities and leadership skills while fostering continuous growth.

Through a combination of structured training, digital learning platforms, and external development opportunities, including professional certifications and industry programs, employees are supported in strengthening both technical expertise and critical skills such as communication, problem solving, and leadership.

CFC continues to expand and refine its development offerings to support both individual growth and organizational priorities.

Employees have access to a wide variety of training resources, including curated learning content, knowledge-sharing forums, and opportunities such as Toastmasters, which reinforce communication and leadership skills.

These programs are complemented by ongoing learning communications and development initiatives that help employees stay current with evolving industry trends and business needs, reinforcing a strong culture of learning, adaptability, and performance excellence.

Compensation and Benefits Packages

2 unchanged sentences

The salary ranges are structured in zones aligned with median market pay for the positions in each zone.

We continue to evaluate and make adjustments to our merit increase budget in order to retain and attract exceptional staff in a highly competitive talent market.

We continuously evaluate and adjust our merit increase budget in order to retain and attract exceptional staff in a highly competitive talent market.

Our annual incentive plan is based on (i) attainment of our targeted corporate scorecard goals as established at the beginning of the fiscal year and (ii) individual performance ratings from our annual review process.

5 unchanged sentences

and flexible spending and health savings plans, most of which are funded in whole or in part by CFC.

We make investments in the future financial security of our employees by offering retirement plans that consist of a 401(k) plan with a company match component and an employer-funded defined benefit retirement plan in which CFC makes an annual contribution in an amount that approximates 20% of each employee’s base salary, which we believe helps in our efforts to engage employees, retain high-performing employees and reduce turnover.

salary, which we believe helps in our efforts to engage employees, retain high-performing employees and reduce turnover.

We also offer programs and resources intended to promote work-life balance, assist in navigating life events and improve employee well-being, such as flexible work schedules, remote work options, parental leave, an employee assistance program, legal insurance and identity theft coverage services.

7 unchanged sentences

Since their creation in the 1930s to bring electricity to rural homes, electric cooperatives have been essential to the economic vitality and quality of life in communities nationwide, including those in persistent poverty counties.

As a values-based financial services cooperative, CFC is engaged in sustaining our environment across multiple fronts—from our Leadership in Energy and Environmental Design (“LEED”) Gold-certified building and 42-acre ecofriendly campus that serves as CFC’s headquarters, to the renewable energy projects we’ve helped finance for the electric cooperative network.

As a values-based financial services cooperative, CFC is engaged in sustaining our environment across multiple fronts—from our Leadership in Energy and Environmental Design Gold-certified building and 42-acre ecofriendly campus that serves as CFC’s headquarters, to the renewable energy projects we’ve helped finance for the electric cooperative network.

CFC’s members are moving forward with renewable energy adoption, and we continue to support them by funding renewable energy initiatives that will help build out greater renewable infrastructure in the United States.

CFC had loans outstanding for renewable energy projects of approximately $463 million and $450 million as of May 31, 2026 and 2025, respectively.

In 2020, CFC developed a Sustainability Bond Framework that aligned with the Sustainability Bond Guidelines (“SBG”), as administered by the International Capital Markets Association (“ICMA”).

Under this framework, we issued sustainability bonds and used the proceeds to finance or refinance projects to enhance access to broadband services and renewable energy projects that provide positive environmental and social impact in rural America.

CFC issued its first sustainability bond with an aggregate principal amount of $400 million in October 2020, the first sustainability bond issued for the electric cooperative industry, and its second sustainability bond with an aggregate principal amount of $400 million in August 2022.

Today, CFC is proud to support electric cooperatives by providing ap proximately $3,441 million in outstand ing loans to support broadband expansion.

CFC currently has $800 million in sustainability bonds outstanding as of May 31, 2026.

The bonds were issued under a Sustainability Bond Framework that aligned with the Sustainability Bond Guidelines, as administered by the International Capital Markets Association and the proceeds were used to finance or refinance projects to enhance access to broadband services and renewable energy projects that provide positive environmental and social impact in rural America.

Today, CFC is proud to support electric cooperatives by providing approximately $3,455 million in outstanding loans to support broadband expansion.

These efforts have opened new opportunities in many rural communities by providing first-ever access to affordable high-speed internet services.

16 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-K

Item 1. Business