What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-02-12 · 56 added, 135 removed, 177 unchanged (52% of the section changed)

19 unchanged sentences

many of our operations are located in jurisdictions that pose a high risk of potential violations of the Foreign Corrupt Practices Act;

risks and uncertainties related to geopolitical conflicts, including the conflicts in the Middle East and disruptions affecting Red Sea shipping;

risks and uncertainties related to geopolitical conflicts, including the conflicts in the Middle East and disruptions affecting shipping in that area;

impacts of international sanctions on our ability to sell or source tobacco in certain regions;

28 unchanged sentences

Executive Summary

Sales and other operating revenues increased $348.3 million, or 21.4%, to $1,979.5 million for the nine months ended December 31, 2024 compared to $1,631.2 million for the nine months ended December 31, 2023.

This was due to a 17.0% increase in average sales prices driven by higher tobacco prices and a 2.7% increase in kilo volumes sold from Asia and certain markets in Africa and accelerated shipments from Europe and South America.

Gross profit as a percent of sales decreased from 15.6% for the nine months ended December 31, 2023 to 13.9% for the nine months ended December 31, 2024 mainly due to the regional mix and the adverse weather effects of El Niño in South America.

Average gross profit per kilo increased 10.4%, primarily attributable to a more favorable customer and product mix.

The stabilization of shipping logistics during the third quarter resulted in beneficial shifts in the timing of shipments for the three months ended December 31, 2024 and the reduction of processed inventory to $603.3 million as of December 31, 2024 from $659.0 million as of December 31, 2023.

While market conditions are also stabilizing, the industry continues to be undersupplied, as evidenced by the decrease in uncommitted inventory to $21.9 million as of December 31, 2024 from $32.3 million as of December 31, 2023.

We are slightly ahead of schedule for crop purchases in the Northern hemisphere compared to the prior year, which resulted in an increase in unprocessed tobacco to $151.9 million as of December 31, 2024 from $78.0 million as of December 31, 2023.

Despite purchasing more expensive green tobacco, our disciplined focus on reducing long-term debt resulted in a total reduction of $142.8 million of aggregate principal amount of long-term debt since March 2024.

The start to fiscal year 2026 delivered a larger tobacco crop than we experienced in the prior year, and we are pleased with our ability to capture larger quantities of leaf in key markets.

As anticipated, first quarter results were below the same period of the prior year as a result of the acceleration of certain customer shipments into the fourth quarter of fiscal year 2025.

Despite a 19.9% reduction in sales and other operating revenues to $508.8 million during the three months ended June 30, 2025 from $634.9 million during the three months ended June 30, 2024, the Company's gross margin as a percent of sales remained relatively stable over the same period due mainly to product mix.

Crop purchases in the Southern hemisphere are near completion and have been strong to date as favorable weather conditions have produced larger volumes of better quality leaf when compared to the prior year, which is evident in both Africa and South America, where unfavorable weather conditions dampened the prior-year crop.

Our strengthened credit profile enabled us to secure the necessary funds to purchase these larger volumes of green tobacco to satisfy demand from our customers.

Our total tobacco inventory balance, comprised of both processed and unprocessed tobacco, of $1,089.8 million at June 30, 2025, puts us in the position to meet the needs of our customers.

Results of Operations

Three Months Ended December 31, 2024 and 2023

Three Months Ended December 31,

Three Months Ended June 30, 2025 and 2024

Three Months Ended June 30,

(in millions, except per kilo amounts) 2025 2024 $ %

8 unchanged sentences

Operating income* 21.0 40.5 (19.5) (48.1)

Loss on pension settlement — 12.0 (12.0) (100.0)

Gain on debt retirement — 1.3 (1.3) (100.0)

Interest expense, net 29.8 33.3 (3.5) (10.5)

Income before income taxes and other items 33.2 3.8 29.4 773.7

(Loss) income before income taxes and other items (8.8) 8.5 (17.3) (203.5)

Income tax expense 5.2 6.1 (0.9) (14.8)

Income from unconsolidated affiliates, net 4.3 6.6 (2.3) (34.8)

(Loss) income from unconsolidated affiliates, net (1.3) 2.6 (3.9) (150.0)

Net income attributable to noncontrolling interests 0.6 0.3 0.3 100.0

Net income attributable to Pyxus International, Inc.

$ 18.9 $ 3.8 15.1 397.4

Net (loss) income attributable to Pyxus International, Inc.* $ (15.8) $ 4.6 (20.4) (443.5)

Product revenues $ 458.2 $ 589.2 (131.0) (22.2)

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Total product cost of goods sold 400.8 508.8 (108.0) (21.2)

Product revenue gross profit 112.1 82.7 29.4 35.6

Product revenue gross profit as a percent of sales 15.1 % 16.5 %

Kilos sold 123.5 100.0 23.5 23.5

Average price per kilo $ 6.02 $ 5.01 1.01 20.2

Average cost per kilo 5.11 4.18 0.93 22.2

Average gross profit per kilo 0.91 0.83 0.08 9.6

Processing and other revenues $ 32.4 $ 28.6 3.8 13.3

Processing and other revenues costs of services sold 28.5 19.4 9.1 46.9

Processing and other gross profit 3.9 9.2 (5.3) (57.6)

Processing and other gross profit as a percent of sales 12.0 % 32.2 %

Sales and other operating revenues $ 3.0 $ 0.7 2.3 328.6

Cost of goods and services sold 2.5 0.1 2.4 2,400.0

Gross profit 0.5 0.6 (0.1) (16.7)

Gross profit as a percent of sales 16.7 % 85.7 %

* Amounts may not equal column totals due to rounding.

Sales and other operating revenues were $529.8 million for the three months ended December 31, 2023 and $778.3 million for the three months ended December 31, 2024, an increase of $248.5 million, or 46.9%.

This was due to a 20.2% increase in average sales prices over this period, driven by higher tobacco prices, and a 23.5% increase in kilo volumes sold primarily due the stabilization of shipping logistics that resulted in beneficial shifts in the timing of shipments (in particular, both delayed shipments out of the three months ended September 30, 2024 into the current quarter and accelerated shipments from Europe and South America in the three months ended December 31, 2024 of the type that occurred in the prior year in the three months ended March 31, 2024).

Cost of goods and services sold were $437.3 million for the three months ended December 31, 2023 and $661.9 million for the three months ended December 31, 2024, an increase of $224.6 million, or 51.4%.

This was mainly due to the 22.2% increase in average cost per kilo primarily due to undersupply conditions, inflation, and the increase in kilo volumes sold.

Gross profit as a percent of sales decreased from 17.5% for the three months ended December 31, 2023 to 15.0% for the three months ended December 31, 2024, mainly due to regional mix and the adverse weather effects of El Niño in South America.

Average gross profit per kilo increased 9.6%, primarily attributable to more favorable customer mix.

Selling, general, and administrative expenses were $42.4 million for the three months ended December 31, 2023 and $46.5 million for the three months ended December 31, 2024, an increase of $4.1 million, or 9.7%.

This increase was primarily due to higher personnel costs, including a higher accrual for variable bonus compensation.

Loss on pension settlement of $12.0 million for the three months ended December 31, 2023 was due to the termination of an over-funded defined benefit pension plan in the U.K.

See " Note 16.

Pension and Other Postretirement Benefits " to the "Notes to Condensed Consolidated Financial Statements" for additional information.

Income tax expense was $6.2 million for the three months ended December 31, 2023 and $18.1 million for the three months ended December 31, 2024, an increase of $11.9 million, or 191.9%.

This increase was primarily due to tax expense related to foreign currency gains in Africa and South America, an increase in income before income taxes, and the jurisdictional mix of earnings.

Nine Months Ended December 31, 2024 and 2023

Nine Months Ended December 31,

(in millions, except per kilo amounts) 2024 2023 $ %

Consolidated:

Sales and other operating revenues $ 1,979.5 $ 1,631.2 348.3 21.4

Cost of goods and services sold 1,703.8 1,376.8 327.0 23.8

Gross profit* 275.8 254.4 21.4 8.4

Gross profit as a percent of sales 13.9 % 15.6 %

Selling, general, and administrative expenses 126.0 116.5 9.5 8.2

Other expense, net 9.7 6.0 3.7 61.7

Restructuring and asset impairment charges 0.4 1.4 (1.0) (71.4)

Operating income* 139.6 130.5 9.1 7.0

Gain on debt retirement 8.2 — 8.2 100.0

Loss on pension settlement — 12.0 (12.0) (100.0)

Interest expense, net 101.9 95.8 6.1 6.4

Income before income taxes and other items 45.9 22.7 23.2 102.2

Income tax expense 32.3 16.4 15.9 97.0

Income from unconsolidated affiliates, net 7.4 6.5 0.9 13.8

Net income attributable to noncontrolling interests 0.8 0.1 0.7 700.0

Net income attributable to Pyxus International, Inc.* $ 20.3 $ 12.7 7.6 59.8

Product revenue $ 1,847.9 $ 1,537.3 310.6 20.2

Tobacco costs 1,516.0 1,242.4 273.6 22.0

Transportation, storage, and other period costs 70.5 66.0 4.5 6.8

Total cost of goods sold 1,586.5 1,308.4 278.1 21.3

Product revenue gross profit 261.4 228.9 32.5 14.2

Product revenue gross profit as a percent of sales 14.1 % 14.9 %

Product gross profit 57.4 80.4 (23.0) (28.6)

Product gross profit as a percent of sales 12.5 % 13.6 %

Kilos sold 66.9 95.7 (28.8) (30.1)

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Processing and other revenues $ 50.2 $ 41.8 8.4 20.1

Processing and other revenues costs of services sold 106.0 66.5 39.5 59.4

Processing and other costs of services sold 42.6 37.4 5.2 13.9

Processing and other gross profit 7.6 4.4 3.2 72.7

2 unchanged sentences

Cost of goods and services sold (0.2) 4.8 (5.0) (104.2)

Gross (loss) profit (2.1) 0.6 (2.7) (450.0)

Gross (loss) profit as a percent of sales (23.1) % 24.0 %

Gross profit (loss) 0.6 (0.9) 1.5 166.7

Gross profit (loss) as a percent of sales 150.0 % (23.1) %

* Amounts may not equal column totals due to rounding.

Sales and other operating revenues were $1,631.2 million for the nine months ended December 31, 2023 and $1,979.5 million for the nine months ended December 31, 2024, an increase of $348.3 million, or 21.4%.

This was due to a 17.0% increase in average sales prices over this period, driven by higher tobacco prices, and 2.7% increase in kilo volumes sold from Asia and certain markets in Africa and accelerated shipments from Europe and South America in the three months ended December 31, 2024 of the type that occurred in the prior year in the three months ended March 31, 2024, partially offset by lower volume from South America compared to the prior-year period.

Cost of goods and services sold were $1,376.8 million for the nine months ended December 31, 2023 and $1,703.8 million for the nine months ended December 31, 2024, an increase of $327.0 million, or 23.8%.

This was mainly due to a 18.2% increase in average cost per kilo, primarily due to undersupply conditions and inflation.

Gross profit as a percent of sales decreased from 15.6% for the nine months ended December 31, 2023 to 13.9% for the nine months ended December 31, 2024, mainly due to regional mix and the adverse weather effects of El Niño in South America.

Average gross profit per kilo increased 10.4%, primarily attributable to a more favorable customer and product mix.

Selling, general, and administrative expenses were $116.5 million for the nine months ended December 31, 2023 and $126.0 million for the nine months ended December 31, 2024, an increase of $9.5 million, or 8.2%.

This increase was primarily due to higher personnel costs, which includes the recognition of $3.9 million for equity-based compensation pursuant to the Amended and Restated 2020 Incentive Plan, and a higher accrual for variable bonus compensation.

See " Note 18.

Equity-Based Compensation " to the "Notes to Condensed Consolidated Financial Statements" for additional information.

Gain on debt retirement of $8.2 million for the nine months ended December 31, 2024 was due to the repurchase of $10.3 million of aggregate principal amount of the Pyxus Term Loans for $9.4 million, a 12.0% discount to par, and the repurchase of $34.2 million aggregate principal amount of the 2027 Notes for $26.3 million, a 23.0% discount to par.

See " Note 11.

Debt Arrangements " to the "Notes to Condensed Consolidated Financial Statements" for additional information.

Loss on pension settlement of $12.0 million for the nine months ended December 31, 2023 was due to the termination of an over-funded defined benefit pension plan in the U.K.

See " Note 16.

Pension and Other Postretirement Benefits " to the "Notes to Condensed Consolidated Financial Statements" for additional information.

Interest expense, net was $95.8 million for the nine months ended December 31, 2023 and $101.9 million for the nine months ended December 31, 2024, an increase of $6.1 million, or 6.4% .

This increase was due to higher borrowings on our foreign seasonal lines of credit that were primarily used to purchase more expensive green tobacco, particularly from Africa and South America, and increased variable interest rates.

This increase was partially offset by partial repurchases of the 2027 Notes in March, April, and August 2024, as well as the partial repurchase of the Pyxus Term Loans in May 2024.

Income tax expense was $16.4 million for the nine months ended December 31, 2023 and $32.3 million for the nine months ended December 31, 2024, an increase of $15.9 million, or 97.0%.

This increase was primarily due to tax expense related to foreign currency gains in Africa and South America recognized in the current period and an increase in income before income taxes, partially offset by reductions in the current period valuation allowances.

Sales and other operating revenues decreased $126.1 million, or 19.9%, to $508.8 million for the three months ended June 30, 2025 from $634.9 million for the three months ended June 30, 2024.

This decline was a result of a 30.1% decrease in kilo volumes sold primarily from Africa and North America due to the timing of certain customer shipments.

In the fourth quarter of fiscal year 2025, certain customer orders were accelerated from Africa and North America, which resulted in the year-over-year sales decline that was partially offset by higher average sales prices.

Cost of goods and services sold decreased $107.8 million, or 19.6%, to $443.2 million for the three months ended June 30, 2025 from $551.0 million for the three months ended June 30, 2024.

This decrease was mainly due to the reduction in sales and other operating revenues.

Gross profit as a percent of sales decreased to 12.9% for the three months ended June 30, 2025 from 13.2% for the three months ended June 30, 2024.

The slight decline was driven by regional and customer sales mix within leaf, partially offset by an increase in processing and other gross profit.

Liquidity and Capital Resources

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To address a potential liquidity deficiency, we may undertake plans to minimize cash outflows, which could include exiting operations that do not generate positive cash flow.

It is possible that, depending on the occurrence of events affecting our liquidity needs and sources of liquidity, such plans may not be sufficient to adequately or timely address a liquidity deficiency.

Debt Financing

6 unchanged sentences

The amount of prepayments or the amount of debt that may be repurchased, refinanced, or otherwise retired, if any, will depend on market conditions, trading levels of our debt, our cash position, compliance with debt covenants, and other considerations.

The following summarizes our total borrowing capacity at December 31, 2024 and 2023 under our short-term and long-term credit lines and letter of credit facilities and the remaining available amount after the reduction for outstanding borrowings and amounts reserved for outstanding letters of credit:

December 31, 2024 December 31, 2023

The following summarizes our total borrowing capacity at June 30, 2025 and 2024 under our short-term and long-term credit lines and letter of credit facilities and the remaining available amount after the reduction for outstanding borrowings and amounts reserved for outstanding letters of credit:

June 30, 2025 June 30, 2024

(in millions) Total Borrowing Capacity Remaining Amount Available Total Borrowing Capacity Remaining Amount Available

5 unchanged sentences

Total $ 1,187.5 $ 324.6 $ 946.6 $ 248.9

The total borrowing capacity under the ABL Credit Facility increased $30.0 million when compared to the prior period as a result of the Fourth Amendment to the ABL Credit Agreement entered into on May 12, 2025, which among other things, increased the aggregate amount of revolving loan commitments from $120.0 million to $150.0 million.

The amounts presented as available under the ABL Credit Facility are subject to further limitations from the borrowing base consisting of certain eligible accounts receivable and inventory, reduced by specified reserves.

The total borrowing capacity of our foreign seasonal lines of credit increased $179.3 million when compared to the prior year and were primarily utilized to purchase green tobacco at higher prices.

The total borrowing capacity of our foreign seasonal lines of credit increased $209.6 million when compared to the prior year and were primarily utilized to purchase larger volumes of green tobacco.

The amounts presented as the remaining amount available for borrowing under the foreign seasonal lines of credit are subject to limitations based on the level of receivables and inventories as collateral and by certain restrictive covenants.

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The following summarizes the computation of net debt:

(in millions) December 31, 2024 December 31, 2023 March 31, 2024

(in millions) June 30, 2025 June 30, 2024 March 31, 2025

Notes payable $ 880.9 $ 679.4 $ 395.0

5 unchanged sentences

Net debt $ 1,239.6 $ 1,149.3 $ 771.6

* Amounts may not equal column totals due to rounding

(1) Fluctuations in long-term debt include borrowings and repayments on the outstanding indebtedness under the ABL Credit Facility, along with repurchases of certain long-term debt.

Weighted average borrowings outstanding under the ABL Credit Facility were $76.0 million and $59.1 million for the three and nine months ended December 31, 2024, respectively.

Net debt decreased as of December 31, 2024 when compared to December 31, 2023 driven by an increase in cash due to higher cash receipts from sales made near the end of the period.

Weighted average borrowings outstanding under the ABL Credit Facility were $57.6 million for the three months ended June 30, 2025.

Net debt increased as of June 30, 2025 when compared to June 30, 2024 due to higher borrowings on our foreign seasonal lines of credit, partially offset by lower borrowings on the ABL Credit Facility and the repurchase of certain long-term debt in August 2024.

Working Capital

The following summarizes our working capital:

(in millions except for current ratio) December 31, 2024 December 31, 2023 March 31, 2024

(in millions except for current ratio) June 30, 2025 June 30, 2024 March 31, 2025

Cash, cash equivalents, and restricted cash $ 101.4 $ 89.1 $ 85.5

15 unchanged sentences

* Amounts may not equal column totals due to rounding

Working capital declined from December 31, 2023 to December 31, 2024 by $108.2 million, or 21.9%, driven by higher borrowings on our foreign seasonal lines of credit that were primarily used to purchase more expensive green tobacco, particularly from Africa and South America.

Working capital declined from June 30, 2024 to June 30, 2025 by $66.2 million, or 15.0%, driven by higher borrowings on our foreign seasonal lines of credit to fund the purchases of larger volumes of green tobacco, particularly in Africa and South America.

The following summarizes inventory committed to a customer and uncommitted inventory balances for processed tobacco:

(in millions) December 31, 2024 December 31, 2023 March 31, 2024

(in millions) June 30, 2025 June 30, 2024 March 31, 2025

Committed $ 562.3 $ 590.8 $ 482.8

1 unchanged sentence

Total processed tobacco $ 575.9 $ 605.5 $ 490.4

Total processed tobacco decreased from December 31, 2023 to December 31, 2024 by $55.7 million, or 8.5%, primarily due to the weather effects of El Niño resulting in shorter crops in South America and certain markets in Africa, partially offset by higher costs of procuring and processing tobacco and accelerated shipments from Europe and South America in the three months ended December 31, 2024 that had been expected to occur in the three months ending March 31, 2025.

Uncommitted levels of processed tobacco remain low as undersupply conditions persist in the global tobacco market.

Total processed tobacco decreased from June 30, 2024 to June 30, 2025 by $29.6 million, or 4.9%, primarily from lower inventory costs of the current crop that has been processed in South America.

Uncommitted levels of processed tobacco remain low due to strong demand from our customers.

While undersupply conditions have persisted in the global tobacco market in recent periods, the larger crops experienced in Africa and South America are anticipated to provide a more balanced position.

See " Note 7.

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We typically finance our non-U.S.

tobacco operations with uncommitted short-term foreign seasonal lines of credit, normally extending for a term of 180 to 365 days, corresponding to the tobacco crop cycle in that market.

These short-term foreign seasonal lines of credit are typically uncommitted and provide lenders the right to cease making loans and demand repayment of loans.

These short-term foreign seasonal lines of credit are generally renewed at the outset of each tobacco season.

tobacco operations with committed and uncommitted short-term foreign seasonal lines of credit, normally extending for a term of 180 to 365 days, corresponding to the tobacco crop cycle in that market.

For uncommitted facilities, the lenders have the right to cease making loans and demand repayment of loans.

These short-term seasonal lines of credit are generally renewed at the outset of each tobacco season.

We maintain various other financing arrangements to meet the cash requirements of our businesses.

3 unchanged sentences

In addition, we may periodically elect to purchase, redeem, repay, retire, or cancel indebtedness prior to stated maturity under our various foreign credit lines.

As of December 31, 2024, our cash, cash equivalents, and restricted cash was $109.7 million, of which approximately $74.1 million was held in non-U.S.

As of June 30, 2025, our cash, cash equivalents, and restricted cash was $101.4 million, of which approximately $79.1 million was held in non-U.S.

jurisdictions for non-U.S.

4 unchanged sentences

The following summarizes the sources and uses of our cash flows:

Nine Months Ended

Three Months Ended

(in millions) 2025 2024

Net income $ 21.1 $ 12.8

Trade and other receivables (305.1) (170.1)

Net (loss) income $ (15.3) $ 5.0

Inventories and advances to tobacco suppliers (388.0) (108.0)

Payables and accrued expenses 0.4 (64.8)

Advances from customers (49.8) (18.6)

Other (42.6) (65.8)

4 unchanged sentences

Net proceeds from short-term borrowings 476.9 182.0

Net repayment of revolving loan facilities — (25.0)

Net proceeds from revolving loan facilities — 44.0

Repayment of long-term borrowings — (9.1)

3 unchanged sentences

Increase (decrease) in cash, cash equivalents, and restricted cash* $ 15.8 $ (10.7)

Other information:

Cash paid for income taxes, net $ 21.6 $ 18.3

Cash paid for income taxes related to debt exchange — 12.5

Cash paid for interest, net 81.5 79.2

* Amounts may not equal column totals due to rounding

The change in cash, cash equivalents, and restricted cash for the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023 increased by $54.1 million.

This increase was driven by the timing of payments for accounts payable and accrued expenses, lower inventories from increased kilo volume sold from Asia and certain markets in Africa, and short crops from South America and certain markets in Africa.

These increases were partially offset by an increase in accounts receivable primarily due to accelerated shipments from Europe and South America in the three months ended December 31, 2024 that had been expected to occur in the three months ending March 31, 2025.

Cash Paid for Income Taxes, net

Excluding nonrecurring cash paid for income taxes related to debt exchange of $12.5 million in the prior year, cash paid for income taxes, net increased for the nine months ended December 31, 2024 to $21.6 million compared to $18.3 million for the nine months ended December 31, 2023.

This increase was primarily due to multi-year tax settlements in Africa and an increase in income before income taxes, partially offset by deferred payments in North America.

We expect the trend of increased cash paid for income taxes, net to continue for the remainder of the fiscal year.

Cash Paid for Interest, net

Cash paid for interest, net increased for the nine months ended December 31, 2024 to $81.5 million compared to $79.2 million for the nine months ended December 31, 2023.

This increase was consistent with the increase in interest expense.

We expect the trend of increased cash paid for interest, net will continue for the remainder of the fiscal year.

The change in cash, cash equivalents, and restricted cash for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 increased by $26.5 million.

This increase was driven by higher net proceeds received from foreign seasonal lines of credit, partially offset by an increase in cash used in operations to fund purchases of larger crops.

Planned Capital Expenditures

Capital investments in our leaf operations were primarily for routine replacement of machinery and equipment, as well as investments in assets that will add value for our customers and increase our efficiency.

We incurred approximately $15.1 million in capital expenditures for the nine months ended December 31, 2024, and are expecting to incur an additional $11.3 million for the remainder of the fiscal year ending March 31, 2025, which includes expenditures expected to be funded through government assistance.

Capital investments in our leaf operations were primarily for routine replacement of machinery and equipment, as well as investments in assets to enhance our sustainability efforts or increase efficiencies, which we believe will add value to our customers.

We incurred approximately $4.3 million in capital expenditures for the three months ended June 30, 2025, and are expecting to incur an additional $21.8 million for the remainder of the fiscal year ending March 31, 2026.

Pension and Postretirement Health and Life Insurance Benefits

The following summarizes cash contributions to pension and postretirement health and life insurance benefits:

Nine Months Ended

(in millions) 2024

Three Months Ended

(in millions) June 30, 2025

Contributions made during the period $ 1.1

1 unchanged sentence

Critical Accounting Estimates

As of the date of this report, there are no material changes to the critical accounting estimates previously disclosed in Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

There have been no material changes to our critical accounting estimates since March 31, 2025.

For information regarding our critical accounting estimates, see Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

Quantitative and Qualitative Disclosures About Market Risk

There have been no significant changes to our market risk exposures since March 31, 2024.

There have been no material changes to our market risk exposures since March 31, 2025.

For a discussion of our exposure to market risk, see Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 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