What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-04 compared with 2026-05-05 · 77 added, 74 removed, 100 unchanged (60% of the section changed)

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We are continuously developing new channels to electrical markets through original equipment manufacturers and distribution market channels.

In the second quarter of Fiscal 2026, we reported revenue of $296.6 million, net income of $45.9 million, and generated $51.2 million in cash from operating activities.

As of March 31, 2026, we had total assets of $1.2 billion.

In the third quarter of Fiscal 2026, we reported revenue of $311.7 million, net income of $52.2 million, and generated $100.2 million in cash from operating activities.

As of June 30, 2026, we had total assets of $1.4 billion.

On April 2, 2026, we effected a three-for-one forward split of our common stock and proportionately increased the number of authorized common stock from 30,000,000 to 90,000,000 (the Stock Split).

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Market Outlook

Our backlog increased to $1.8 billion as of March 31, 2026, with approximately $1.1 billion expected to be recognized as revenue within the next twelve months.

During the first half of Fiscal 2026, commercial activity remained favorable across most of our end markets, with particularly strong demand in the commercial and other industrial, electric utility, and oil and gas (excluding petrochemical) markets.

Our backlog increased to $2.4 billion as of June 30, 2026, with approximately $1.3 billion expected to be recognized as revenue within the next twelve months.

During the first nine months of Fiscal 2026, commercial activity remained favorable across most of our end markets, with particularly strong demand in the commercial and other industrial, oil and gas (excluding petrochemical), and electric utility markets.

The diversification of our business over the past several years, including expansion into secular growth markets such as electric utility and data centers, has reduced the cyclicality of our business.

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Customer relationships in these markets are increasingly strategic and consultative, with opportunities ranging from discrete project engagements to broader, infrastructure planning arrangements.

During the first half of Fiscal 2026, we secured four mega orders, including two data center projects, one Liquefied Natural Gas (LNG) project, and one project in the electric utility market, reflecting continued customer investment and strong activity across these end markets.

Subsequent to the second fiscal quarter, we secured an additional mega order in the data center market with a value in excess of $400 million.

During the third fiscal quarter, we achieved total bookings of $934 million, including three mega orders, a data center project valued at over $400 million, which was disclosed as a subsequent event in the second fiscal quarter, a Liquefied Natural Gas (LNG) project valued at approximately $60 million, and a petrochemical project valued at approximately $75 million.

For the first nine months of Fiscal 2026, bookings totaled $1.9 billion, including seven mega orders across diverse end markets, demonstrating continued customer investment and strong market activity.

We remain encouraged by the outlook for both the data center and electric utility end markets and the durability of the current investment cycles.

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Oil and gas and petrochemical markets.

The North American oil and gas end markets continue to exhibit strong commercial activity levels in response to rising global demand for LNG and gas-to‑chemical processes that leverage low‑cost natural gas feedstocks.

North American oil and gas end markets continue to exhibit strong commercial activity levels in response to rising global demand for LNG and gas-to‑chemical processes that leverage low‑cost natural gas feedstocks.

We believe the fundamentals of the U.S.

natural gas market, through abundant supply and competitive cost, continue to support investments in LNG facilities and related gas processing infrastructure.

These dynamics contributed to sustained order activity, including a mega LNG project award during the first fiscal quarter.

These dynamics contributed to sustained order activity, including a mega LNG project award of approximately $60 million during the third fiscal quarter.

Commercial activity in the petrochemical market has remained subdued over the past several quarters.

However, we are cautiously optimistic that the petrochemical market may be entering the early stages of a cyclical inflection following an extended period of reduced investment activity.

However, we are cautiously optimistic that the petrochemical market may be entering the early stages of a cyclical recovery following an extended period of reduced investment activity.

Reflecting this potential improvement, we secured a mega petrochemical order during the third fiscal quarter with a contract value of approximately $75 million.

Beyond traditional crude oil refining and other oil and gas downstream operations, we have broadened our end markets into hydrogen production, carbon capture as well as alternative fuels, such as biofuels and sustainable aviation fuel, aligned with growing demand for cleaner energy solutions.

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Aligned with our strategy of end-market diversification, we continue to focus on growth in electrical distribution substations while also addressing a resurgence of power generation investment in this market.

During the second quarter of Fiscal 2026, we secured a mega order of approximately $75 million, reflecting continued customer investment in grid modernization and generation capacity.

During the first nine months of Fiscal 2026, we secured total bookings of $313 million, reflecting continued customer investment in grid modernization, transmission and distribution infrastructure, and generation capacity expansion.

Commercial and other industrial markets.

As a result of a mix of factors, we are experiencing strong growth in commercial facilities that provide for the production of various consumer goods and the expansion of data centers that support cloud computing and increasing investments in artificial intelligence.

During the first half of Fiscal 2026, we were awarded projects

related to data center infrastructure with a combined value exceeding $300 million, including two mega projects, each with an order value greater than $75 million.

Subsequent to the second fiscal quarter, we secured an additional mega order in the data center market with a value in excess of $400 million.

We continue to experience strong growth across commercial and industrial end-markets, primarily driven by the rapid expansion of data centers to meet increasing demand for cloud computing and artificial intelligence applications.

During the first nine months of Fiscal 2026, we were awarded approximately $800 million in data center infrastructure projects, including a mega order valued at over $400 million secured during the third fiscal quarter and two additional mega orders secured in the first half of Fiscal 2026, each exceeding $75 million in contract value.

Commercial activity in this market sector reflects the continued investment in data center infrastructure, and we are also observing increased activity across other industrial end markets.

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Schedules may change during the course of any particular project, and our operating results can, therefore, be impacted by factors outside of our control.

As data center projects become a larger component of our backlog and revenues:

(i) our product mix may shift, as such projects will likely require less custom engineered-to-order equipment and systems than other end markets;

(ii) we have, and will, become subject to additional risks related to that end market, including fluctuations in demand for data centers and developments in legislative or regulatory initiatives with respect thereto;

and (iii) our operating results may be impacted by the aforementioned factors and risks, among others related to the data center end market.

Our operating results are impacted by several factors such as the timing of new order awards, project backlog, changes in project cost estimates, customer approval of final engineering specifications and delays in customer construction schedules, all of which contribute to short-term earnings variability and the timing of project execution.

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Disruptions in the global supply chain have negatively impacted and may continue to negatively impact our business and operating results due to the limited supply of, delays for and uncertainty in the timing of the receipt of key component parts and commodities.

We continue to remain focused on the variables that impact our markets as well as cost management, labor availability and supply chain challenges.

We remain focused on the variables that impact our markets as well as cost management, labor availability and supply chain challenges.

We are subject to inflation, which can cause increases in our costs of labor, indirect expenses and raw materials, primarily copper, aluminum and steel.

Fixed-price contracts can limit our ability to pass these increases to our customers, thus negatively impacting our earnings and operations in future periods.

During the first half of Fiscal 2026, we continued experiencing high volatility in commodity prices, and ongoing supply chain delays for specific engineered components remained a persistent challenge for us.

During the first nine months of Fiscal 2026, we continued experiencing high volatility in commodity prices, and ongoing supply chain delays for specific engineered components remained a persistent challenge for us.

Moreover, ongoing and recently proposed changes to U.S.

global trade policy (including legal changes thereto), along with potential international retaliatory measures, and concerns over inflation, recession and slowing growth have continued to cause high volatility in global markets and uncertainty around short- and long-term economic impacts in the United States and other markets we serve.

global trade policy (including legal challenges thereto), along with potential international retaliatory measures, and concerns over inflation, recession and slowing growth have continued to cause high volatility in global markets and uncertainty around short- and long-term economic impacts in the United States and other markets we serve.

We continue to evaluate and monitor the potential impacts of these changes and measures, including the imposition of tariffs, on our business and operations.

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Results of Operations

Quarter Ended March 31, 2026 Compared to the Quarter Ended March 31, 2025 (Unaudited)

Quarter Ended June 30, 2026 Compared to the Quarter Ended June 30, 2025 (Unaudited)

Revenue and Gross Profit

Revenue increased by 6%, or $18.0 million, to $296.6 million in the second quarter of Fiscal 2026.

Domestic revenue increased by 2%, or $4.4 million, to $232.3 million in the second quarter of Fiscal 2026.

International revenue increased by 27%, or $13.5 million, to $64.3 million in the second quarter of Fiscal 2026, primarily driven by increased activities in the Middle East and Africa, Europe, as well as the Asia/Pacific regions.

Revenue increased by 9%, or $25.5 million, to $311.7 million in the third quarter of Fiscal 2026.

Domestic revenue increased by 12%, or $26.1 million, to $250.6 million in the third quarter of Fiscal 2026.

International revenue decreased slightly by 1%, or $0.6 million, to $61.1 million in the third quarter of Fiscal 2026.

International revenue includes both revenue generated at our international facilities and export project revenue produced at our domestic facilities.

In the second quarter of Fiscal 2026, revenue growth was led by strength in our commercial and other industrial, electric utility, and oil and gas (excluding petrochemical) markets.

In the third quarter of Fiscal 2026, revenue growth was led by strength in our commercial and other industrial, electric utility, and oil and gas (excluding petrochemical) markets.

Revenue from the commercial and other industrial market increased 54%, or $26.8 million, to $76.3 million;

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Revenue from the oil and gas market (excluding petrochemical) increased 1%, or $0.8 million, to $106.3 million.

increases were primarily driven by our strategic initiative to expand into higher-growth electric utility and commercial and other industrial markets, supported by strong backlog and robust booking activity in these end markets.

These increases were primarily driven by our strategic initiative to expand into higher-growth electric utility and commercial and other industrial markets, supported by strong backlog and robust booking activity in these end markets.

Partially offsetting these increases, revenue from the petrochemical market declined by 49%, or $17.9 million, to $18.5 million, and revenue from the light rail traction power market decreased 7%, or $0.6 million, to $8.0 million.

These declines were primarily attributable to lower booking activity, particularly within the petrochemical market.

Revenue from all other markets combined decreased 5%, or $0.7 million, to $12.3 million in the second quarter of Fiscal 2026.

Gross profit increased 5%, or $4.5 million, to $87.9 million for the second quarter of Fiscal 2026.

Gross profit as a percentage of revenue remained flat at 30% compared to the second quarter of Fiscal 2025.

These declines were primarily driven by lower backlog across these end markets, particularly within the petrochemical market.

Revenue from all other markets combined increased 23%, or $2.6 million, to $14.1 million in the third quarter of Fiscal 2026.

Gross profit increased 8%, or $7.4 million, to $95.3 million for the third quarter of Fiscal 2026.

Gross profit as a percentage of revenue remained flat at 31% compared to the third quarter of Fiscal 2025.

The increase in gross profit was primarily attributable to higher revenue.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased 19%, or $4.1 million, to $25.8 million in the second quarter of Fiscal 2026, primarily due to higher compensation expenses.

As a percentage of revenue, selling, general and administrative expenses increased to 9% during the second quarter of Fiscal 2026, compared to 8% in the second quarter of Fiscal 2025.

Selling, general and administrative expenses increased 6%, or $1.6 million, to $26.7 million in the third quarter of Fiscal 2026, primarily due to higher compensation expenses, including the impact of the Remsdaq Limited acquisition completed in August 2025.

As a percentage of revenue, selling, general and administrative expenses remained flat at 9% during the third quarter of Fiscal 2026 compared to the third quarter of Fiscal 2025.

Income Tax Provision

We recorded an income tax provision of $15.9 million in the second quarter of Fiscal 2026, compared to an income tax provision of $16.1 million in the second quarter of Fiscal 2025 resulting in an effective tax rate of 26% for the second quarters of Fiscal 2026 and Fiscal 2025.

For each of the three months ended March 31, 2026 and 2025, the effective tax rates were favorably impacted by the estimated Research and Development (R&D) Tax Credit, which was offset by the tax expense related to certain nondeductible items.

We recorded an income tax provision of $17.0 million in the third quarter of Fiscal 2026, compared to an income tax provision of $15.9 million in the third quarter of Fiscal 2025.

The effective tax rate was 25% in both periods.

For each of the three months ended June 30, 2026 and 2025, the effective tax rates were favorably impacted by the estimated Research and Development (R&D) Tax Credit, which was offset by the tax expense related to certain nondeductible items.

For additional information regarding our income taxes, see Note L.

Income Taxes of Notes to Condensed Consolidated Financial Statements.

In the second quarter of Fiscal 2026, we recorded net income of $45.9 million, or $1.25 per diluted share, compared to net income of $46.3 million, or $1.27 per diluted share (as adjusted for the Stock Split), in the second quarter of Fiscal 2025.

The decrease in net income was primarily driven by higher selling, general and administrative expenses and increased research and development expenses, partially offset by higher gross profit in the second quarter of Fiscal 2026.

In the third quarter of Fiscal 2026, we recorded net income of $52.2 million, or $1.42 per diluted share, compared to net income of $48.2 million, or $1.32 per diluted share, in the third quarter of Fiscal 2025.

The increase in net income was primarily driven by higher gross profit, partially offset by higher selling, general and administrative expenses and research and development expenses, including the impact of the Remsdaq Limited acquisition completed in August 2025.

The order backlog, which represents our remaining unsatisfied performance obligations, reflects the estimated transaction price for goods and services for which we have a material right but for which work has not yet been performed.

Order backlog at March 31, 2026 totaled $1.8 billion, representing a 12% increase from $1.6 billion at December 31, 2025.

This increase was mainly driven by growth in the commercial and other industrial and electric utility markets.

As of March 31, 2026, the electric utility market represented 30% of total backlog, while the oil and gas market (excluding petrochemical) and the commercial and other industrial market each accounted for 29%.

Bookings, net of cancellations and scope reductions, increased 97% in the second quarter of Fiscal 2026 to $489.7 million, compared to $249.0 million in the second quarter of Fiscal 2025.

This increase was primarily driven by stronger booking activity across most of our end markets, particularly within the commercial and other industrial and electric utility markets.

Six Months Ended March 31, 2026 Compared to the Six Months Ended March 31, 2025 (Unaudited)

Order backlog at June 30, 2026 totaled $2.4 billion, representing a 35% increase from $1.8 billion at March 31, 2026.

This increase was primarily driven by growth in the commercial and other industrial market.

As of June 30, 2026, the commercial and other industrial market represented 40% of total backlog, while the oil and gas market (excluding petrochemical) and the electric utility market each accounted for 24%.

Bookings, net of cancellations and scope reductions, increased 158% in the third quarter of Fiscal 2026 to $934.2 million, compared to $362.1 million in the third quarter of Fiscal 2025.

This increase was primarily driven by stronger booking activity within the commercial and other industrial market.

Nine Months Ended June 30, 2026 Compared to the Nine Months Ended June 30, 2025 (Unaudited)

Revenue and Gross Profit

Revenue increased 5%, or $27.7 million, to $547.8 million in the six months ended March 31, 2026.

Domestic revenue increased modestly by 0.4%, or $1.5 million, to $427.2 million, while international revenue increased 27.7%, or $26.2 million, to $120.6 million.

The increase in international revenue was primarily driven by increased activity in the Middle East and Africa region, as well as the Asia/Pacific and Europe regions.

Revenue increased 7%, or $53.2 million, to $859.5 million in the nine months ended June 30, 2026.

Domestic revenue increased by 4%, or $27.6 million, to $677.8 million, while international revenue increased 16%, or $25.6 million, to $181.8 million.

The increase in international revenue was primarily driven by increased activity in the Asia/Pacific region, as well as the Middle East and Africa and Europe regions, partially offset by decreased activity in Canada.

International revenue includes both revenue generated at our international facilities and export project revenue produced at our domestic facilities.

Revenue growth during the six months ended March 31, 2026 was led by strength in the electric utility, commercial and other industrial, and oil and gas (excluding petrochemical) markets.

Revenue from the electric utility market increased 23%, or $28.2 million, to $149.8 million, while revenue from the commercial and other industrial market increased 12%, or $10.4 million, to $95.1 million.

Revenue growth during the nine months ended June 30, 2026 was led by strength in the commercial and other industrial, electric utility and oil and gas (excluding petrochemical) markets.

Revenue from the commercial and other industrial market increased 28%, or $37.2 million, to $171.4 million, while revenue from the electric utility market increased 21%, or $41.9 million, to $238.4 million.

Revenue from the oil and gas market (excluding petrochemical) increased 5%, or $14.6 million, to $316.9 million.

These increases were primarily driven by our strategic initiative to expand our business into the electric utility and

commercial and other industrial markets, as well as improved market activities in these end markets.

Partially offsetting these increases, revenue from the petrochemical market decreased 35%, or $26.6 million, to $50.3 million, and revenue from the light rail traction power market decreased 3%, or $0.6 million, to $17.7 million in the first half of Fiscal 2026.

These declines were primarily attributable to a reduction in backlog within the petrochemical market following the completion of a large petrochemical order secured in Fiscal 2023, as well as lower booking activity in these markets.

Revenue from all other markets combined increased 11%, or $2.5 million, to $24.4 million in the six months ended March 31, 2026.

Gross profit increased 11%, or $16.4 million, to $159.4 million for the six months ended March 31, 2026.

Gross profit as a percentage of revenue increased to 29% in the first half of Fiscal 2026, as compared to 27% in the six months ended March 31, 2025.

These increases were primarily driven by our strategic initiative to expand our business into the commercial and other industrial and electric utility markets, as well as strong market activities in these end markets.

Partially offsetting these increases, revenue from the petrochemical market decreased 39%, or $44.4 million, to $68.8 million, and revenue from the light rail traction power market decreased 4%, or $1.2 million, to $25.6 million in the first nine months of Fiscal 2026.

Revenue from all other markets combined increased 15%, or $5.1 million, to $38.5 million in the nine months ended June 30, 2026.

Gross profit increased 10%, or $23.8 million, to $254.7 million for the nine months ended June 30, 2026.

Gross profit as a percentage of revenue increased to 30% in the first nine months of Fiscal 2026, as compared to 29% in the nine months ended June 30, 2025.

The increase in gross profit was primarily driven by higher revenues, as well as improved gross profit margin resulting from favorable volume leverage and strong project execution in a stable pricing environment.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased 18%, or $7.8 million, to $51.0 million in the six months ended March 31, 2026, primarily due to higher compensation expenses and increased infrastructure expenses.

As a percentage of revenue, selling, general and administrative expenses increased to 9% during the first half of Fiscal 2026, compared to 8% during the first half of Fiscal 2025.

Selling, general and administrative expenses increased 14%, or $9.3 million, to $77.7 million in the nine months ended June 30, 2026, primarily due to higher compensation expenses, including the impact of the Remsdaq Limited acquisition completed in August 2025, and increased spending on infrastructure.

As a percentage of revenue, selling, general and administrative expenses increased to 9% during the first nine months of Fiscal 2026, compared to 8% during the first nine months of Fiscal 2025.

Income Tax Provision

We recorded an income tax provision of $21.5 million in the six months ended March 31, 2026, compared to an income tax provision of $20.8 million in the six months ended March 31, 2025 resulting in an effective tax rate of 20% for the first half of Fiscal 2026 and Fiscal 2025.

For each of the six months ended March 31, 2026 and 2025, the effective tax rates were favorably impacted by discrete items related to the vesting of RSUs and the estimated R&D Tax Credit.

The lower effective tax rates relative to statutory rates were primarily driven by higher stock prices associated with the vested RSUs.

We recorded an income tax provision of $38.5 million in the nine months ended June 30, 2026, compared to an income tax provision of $36.7 million in the nine months ended June 30, 2025.

The effective tax rate was 22% in both periods.

For each of the nine months ended June 30, 2026 and 2025, the effective tax rates were favorably impacted by discrete items related to the vesting of RSUs and the estimated R&D Tax Credit, which was offset by the tax expense related to certain nondeductible items.

For additional information regarding our income taxes, see Note L.

Income Taxes of Notes to Condensed Consolidated Financial Statements.

In the six months ended March 31, 2026, we recorded net income of $87.3 million, or $2.39 per diluted share, compared to net income of $81.1 million, or $2.22 per diluted share (as adjusted for the Stock Split), in the six months ended March 31, 2025.

The increase in net income was primarily driven by higher gross profit during the first half of Fiscal 2026.

In the nine months ended June 30, 2026, we recorded net income of $139.4 million, or $3.81 per diluted share, compared to net income of $129.3 million, or $3.54 per diluted share, in the nine months ended June 30, 2025.

Order backlog, which represents our remaining unsatisfied performance obligations, reflects the estimated transaction price for goods and services for which we have a material right but for which work has not yet been performed.

Order backlog at March 31, 2026 totaled $1.8 billion, representing a 28% increase from $1.4 billion at September 30, 2025.

Order backlog at June 30, 2026 totaled $2.4 billion, representing a 73% increase from $1.4 billion at September 30, 2025.

This increase was mainly driven by growth in the commercial and other industrial, electric utility and oil and gas (excluding petrochemical) markets.

Bookings, net of cancellations and scope reductions, increased 79% to $928.5 million during the six months ended March 31, 2026, compared to $517.6 million during the six months ended March 31, 2025.

This increase was primarily driven by stronger booking activity in the commercial and other industrial and electric utility markets as well as continued growth in the oil and gas market (excluding petrochemical).

Bookings, net of cancellations and scope reductions, increased 112% to $1.9 billion during the nine months ended June 30, 2026, compared to $879.7 million during the nine months ended June 30, 2025.

This increase was primarily driven by stronger booking activity in the commercial and other industrial market, a recovery of the petrochemical market, and continued growth in the oil and gas (excluding petrochemical) and electric utility markets.

Liquidity and Capital Resources

As of March 31, 2026, current assets exceeded current liabilities by 2.3 times.

Cash, cash equivalents and short-term investments increased to $544.9 million at March 31, 2026, compared to $475.5 million at September 30, 2025.

The increase was primarily driven by our strong earnings performance, partially offset by cash payments related to shares withheld in lieu of employee tax withholding and dividend payments.

As of June 30, 2026, current assets exceeded current liabilities by 2.0 times.

Cash, cash equivalents and short-term investments increased to $633.6 million at June 30, 2026, compared to $475.5 million at September 30, 2025.

The increase was primarily driven by our strong earnings performance, partially offset by cash payments related to shares withheld in lieu of employee tax withholding, capital expenditures and dividend payments.

We invest our cash, cash equivalents and short-term investments in accordance with the Company’s investment policy approved by the Board of Directors.

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Our capital allocation decisions are influenced by a number of factors, including market conditions, our financial position and capital requirements, competing uses of cash, and other relevant considerations.

Approximately $124.1 million of our cash, cash equivalents and short-term investments at March 31, 2026 was held outside of the U.S.

Approximately $125.8 million of our cash, cash equivalents and short-term investments at June 30, 2026 was held outside of the U.S.

to support our international operations.

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Revolver has an expiration date of October 4, 2028.

As of March 31, 2026, there were no amounts borrowed under the U.S.

As of June 30, 2026, there were no amounts borrowed under the U.S.

Revolver, and letters of credit outstanding were $103.9 million.

There was $46.1 million available for the issuance of letters of credit and borrowings under the U.S.

Revolver as of March 31, 2026.

Revolver as of June 30, 2026.

For further information regarding our debt, see Notes F.

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Operating Activities

Operating activities provided net cash of $94.8 million during the six months ended March 31, 2026 and provided net cash of $59.5 million during the same period in Fiscal 2025.

Operating activities provided net cash of $195.0 million during the nine months ended June 30, 2026 and provided net cash of $106.9 million during the same period in Fiscal 2025.

Cash flow from operations is primarily influenced by project volume and margins, working capital requirements, the timing of milestone payments from customers, and payment terms with suppliers.

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Investing Activities

Investing activities provided $14.0 million of cash during the six months ended March 31, 2026 and provided $4.6 million of cash during the same period in Fiscal 2025.

Cash provided by investing activities in the first six months of Fiscal 2026 was primarily due to maturities of short-term investments, partially offset by capital spending.

Investing activities provided $14.5 million of cash during the nine months ended June 30, 2026 and used $4.2 million of cash during the same period in Fiscal 2025.

Cash provided by investing activities in the first nine months of Fiscal 2026 was primarily due to maturities of short-term investments, partially offset by capital spending.

We continue to progress the expansion of our Jacintoport fabrication yard in Houston, which is planned to be completed by the end of Fiscal 2026.

Financing Activities

Net cash used in financing activities was $21.0 million during the six months ended March 31, 2026 compared to $18.4 million used during the same period in Fiscal 2025.

The increase in cash used in financing activities was primarily due to cash payments related to shares withheld in lieu of employee tax withholding, largely driven by the increase of our share price in the first half of Fiscal 2026 compared to the same period of Fiscal 2025.

Net cash used in financing activities was $24.5 million during the nine months ended June 30, 2026 compared to $21.7 million used during the same period in Fiscal 2025.

The increase in cash used in financing activities was primarily due to cash payments related to shares withheld in lieu of employee tax withholding, largely driven by the increase of our share price in the first nine months of Fiscal 2026 compared to the same period of Fiscal 2025.

Critical Accounting Policies and Estimates

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Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to our market risks as of and for the three and six months ended March 31, 2026, as compared to the information previously reported under Part II, Item 7A within our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

There have been no material changes to our market risks as of and for the three and nine months ended June 30, 2026, as compared to the information previously reported under Part II, Item 7A within our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis