PYXUS INTERNATIONAL, INC. 10-Q

Item 1. Financial Statements Pyxus International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended September 30, September 30, (in thousands, except per share data) 2025 2024 2025 2024 Sales and other operating revenues $ 570,210 $ 566,383 $ 1,079,025 $ 1,201,238 Cost of goods and services sold 482,421 490,914 925,610 1,041,917 Gross profit 87,789 75,469 153,415 159,321 Selling, general, and administrative expenses 40,142 38,875 80,511 79,537 Other expense, net 879 3,292 5,055 5,922 Restructuring and asset impairment charges 40 224 121 327 Operating income 46,728 33,078 67,728 73,535 Gain on debt retirement — 6,855 — 8,178 Interest expense, net 37,922 35,750 67,689 69,022 Income before income taxes and other items 8,806 4,183 39 12,691 Income tax expense 10,305 8,041 15,532 14,160 Income (loss) from unconsolidated affiliates, net 597 585 ( 672 ) 3,148 Net (loss) income ( 902 ) ( 3,273 ) ( 16,165 ) 1,679 Net (loss) income attributable to noncontrolling interests ( 23 ) ( 46 ) 539 264 Net (loss) income attributable to Pyxus International, Inc. $ ( 879 ) $ ( 3,227 ) $ ( 16,704 ) $ 1,415 (Loss) earnings per share: Basic $ ( 0.03 ) $ ( 0.12 ) $ ( 0.65 ) $ 0.06 Diluted $ ( 0.03 ) $ ( 0.12 ) $ ( 0.65 ) $ 0.06 Weighted average number of shares outstanding: Basic 25,806 25,825 25,739 25,683 Diluted 25,806 25,825 25,739 25,683 See "Notes to Condensed Consolidated Financial Statements" 3 Pyxus International, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) Three Months Ended Six Months Ended September 30, September 30, (in thousands) 2025 2024 2025 2024 Net (loss) income $ ( 902 ) $ ( 3,273 ) $ ( 16,165 ) $ 1,679 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment ( 477 ) 278 1,562 821 Cash flow hedges ( 1,016 ) 1,266 441 ( 971 ) Total other comprehensive (loss) income, net of tax $ ( 1,493 ) $ 1,544 $ 2,003 $ ( 150 ) Total comprehensive (loss) income ( 2,395 ) ( 1,729 ) ( 14,162 ) 1,529 Comprehensive (loss) income attributable to noncontrolling interests ( 23 ) ( 46 ) 539 264 Comprehensive (loss) income attributable to Pyxus International, Inc. $ ( 2,372 ) $ ( 1,683 ) $ ( 14,701 ) $ 1,265 See "Notes to Condensed Consolidated Financial Statements" 4 Pyxus International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (in thousands) September 30, 2025 September 30, 2024 March 31, 2025 Assets Current assets Cash and cash equivalents $ 99,237 $ 123,486 $ 78,254 Restricted cash 7,211 7,446 7,290 Trade receivables, net 195,364 226,376 189,239 Other receivables 18,878 11,125 15,040 Inventories, net 1,135,183 974,570 761,951 Advances to tobacco suppliers, net 86,559 77,999 30,745 Recoverable income taxes 13,058 2,988 6,616 Prepaid expenses 51,577 43,095 47,151 Other current assets 19,788 18,988 21,874 Total current assets 1,626,855 1,486,073 1,158,160 Investments in unconsolidated affiliates 96,256 104,403 96,928 Intangible assets, net 26,274 31,587 28,507 Deferred income taxes, net 12,341 7,121 13,567 Long-term recoverable income taxes 5,118 4,008 5,669 Other noncurrent assets 41,552 34,916 33,094 Right-of-use assets 29,573 32,420 29,742 Property, plant, and equipment, net 139,015 136,146 138,176 Total assets $ 1,976,984 $ 1,836,674 $ 1,503,843 Liabilities and Stockholders’ Equity Current liabilities Notes payable $ 908,037 $ 744,779 $ 395,030 Accounts payable 134,157 152,594 132,871 Advances from customers 82,346 75,796 135,607 Accrued expenses and other current liabilities 109,242 103,393 90,912 Income taxes payable 12,425 13,589 11,001 Operating leases payable 9,136 8,279 8,514 Current portion of long-term debt — 89 12 Total current liabilities 1,255,343 1,098,519 773,947 Long-term taxes payable 5,823 2,573 5,187 Long-term debt 455,311 489,470 454,850 Deferred income taxes 8,128 6,303 8,818 Liability for unrecognized tax benefits 24,546 12,510 18,635 Long-term leases 18,302 21,617 19,584 Pension, postretirement, and other long-term liabilities 57,565 54,923 57,052 Total liabilities $ 1,825,018 $ 1,685,915 $ 1,338,073 Commitments and contingencies Stockholders’ equity Common Stock— no par value: Authorized shares ( 250,000 for all periods) Issued and outstanding shares ( 24,608 for all periods) $ 393,392 $ 392,421 $ 392,899 Retained deficit ( 256,829 ) ( 253,876 ) ( 240,125 ) Accumulated other comprehensive income 9,318 7,636 7,315 Total stockholders’ equity of Pyxus International, Inc. 145,881 146,181 160,089 Noncontrolling interests 6,085 4,578 5,681 Total stockholders’ equity 151,966 150,759 165,770 Total liabilities and stockholders’ equity $ 1,976,984 $ 1,836,674 $ 1,503,843 See "Notes to Condensed Consolidated Financial Statements" 5 Pyxus International, Inc. and Subsidiaries Condensed Consolidated Statements of Stockholders' Equity (Unaudited) Attributable to Pyxus International, Inc. Accumulated Other Comprehensive Income (in thousands) Common Stock Retained Deficit Currency Translation Adjustment Pensions, Net of Tax Derivatives, Net of Tax Noncontrolling Interests Total Stockholders' Equity Balance, March 31, 2025 $ 392,899 $ ( 240,125 ) $ ( 6,045 ) $ 12,516 $ 844 $ 5,681 $ 165,770 Net (loss) income — ( 15,825 ) — — — 562 ( 15,263 ) Equity-based compensation 237 — — — — — 237 Other comprehensive income, net of tax — — 2,039 — 1,457 — 3,496 Balance, June 30, 2025 $ 393,136 $ ( 255,950 ) $ ( 4,006 ) $ 12,516 $ 2,301 $ 6,243 $ 154,240 Net loss — ( 879 ) — — — ( 23 ) ( 902 ) Dividends — — — — — ( 135 ) ( 135 ) Equity-based compensation 256 — — — — — 256 Other comprehensive loss, net of tax — — ( 477 ) — ( 1,016 ) — ( 1,493 ) Balance, September 30, 2025 $ 393,392 $ ( 256,829 ) $ ( 4,483 ) $ 12,516 $ 1,285 $ 6,085 $ 151,966 Balance, March 31, 2024 $ 389,789 $ ( 255,291 ) $ ( 5,692 ) $ 12,766 $ 712 $ 4,539 $ 146,823 Net income — 4,642 — — — 310 4,952 Equity-based compensation 3,031 — — — — — 3,031 Other comprehensive income (loss), net of tax — — 543 — ( 2,237 ) — ( 1,694 ) Balance, June 30, 2024 $ 392,820 $ ( 250,649 ) $ ( 5,149 ) $ 12,766 $ ( 1,525 ) $ 4,849 $ 153,112 Net loss — ( 3,227 ) — — — ( 46 ) ( 3,273 ) Dividends — — — — — ( 225 ) ( 225 ) Equity-based compensation 601 — — — — — 601 Share repurchases ( 1,000 ) — — — — — ( 1,000 ) Other comprehensive income, net of tax — — 278 — 1,266 — 1,544 Balance, September 30, 2024 $ 392,421 $ ( 253,876 ) $ ( 4,871 ) $ 12,766 $ ( 259 ) $ 4,578 $ 150,759 See "Notes to Condensed Consolidated Financial Statements" 6 Pyxus International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended September 30, (in thousands) 2025 2024 Operating Activities: Net (loss) income $ ( 16,165 ) $ 1,679 Adjustments to reconcile net (loss) income to net cash used in operating activities: Depreciation and amortization 10,367 10,192 Debt amortization/interest 5,440 5,755 Gain on debt retirement — ( 8,178 ) Loss on foreign currency transactions 7,428 2,514 Equity-based compensation 493 3,632 Loss (income) from unconsolidated affiliates, net of dividends 672 ( 3,148 ) Changes in operating assets and liabilities, net Trade and other receivables ( 111,137 ) ( 150,636 ) Inventories and advances to tobacco suppliers ( 428,049 ) ( 100,688 ) Deferred items 6,738 ( 7,287 ) Recoverable income taxes ( 5,769 ) 448 Payables and accrued expenses 15,190 ( 20,317 ) Advances from customers ( 54,276 ) ( 14,072 ) Prepaid expenses ( 5,151 ) 9,246 Income taxes 931 5,111 Other operating assets and liabilities 1,115 ( 6,764 ) Other, net ( 8,755 ) ( 7,756 ) Net cash used in operating activities $ ( 580,928 ) $ ( 280,269 ) Investing Activities: Purchases of property, plant, and equipment $ ( 9,730 ) $ ( 9,784 ) Collections from beneficial interests in securitized trade receivables 108,811 101,597 Other, net 2,726 1,703 Net cash provided by investing activities $ 101,807 $ 93,516 Financing Activities: Net proceeds from short-term borrowings $ 505,965 $ 244,223 Proceeds from revolving loan facilities 141,000 165,000 Repayment of revolving loan facilities ( 141,000 ) ( 130,000 ) Debt issuance costs ( 3,808 ) ( 2,808 ) Repayment of long-term borrowings — ( 55,822 ) Other, net 298 ( 563 ) Net cash provided by financing activities $ 502,455 $ 220,030 Effect of exchange rate changes on cash ( 2,430 ) ( 2,138 ) Increase in cash, cash equivalents, and restricted cash 20,904 31,139 Cash and cash equivalents at beginning of period 78,254 92,569 Restricted cash at beginning of period 7,290 7,224 Cash, cash equivalents, and restricted cash at end of period $ 106,448 $ 130,932 Other information: Cash paid for income taxes, net $ 9,664 $ 14,236 Cash paid for interest, net 47,256 51,966 Noncash investing activities: Noncash amounts obtained as a beneficial interest in exchange for transferring trade receivables in a securitization transaction 79,009 116,911 See "Notes to Condensed Consolidated Financial Statements" 7 Pyxus International, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) (in thousands, except per share data) Page Number Note 1 Basis of Presentation and Summary of Significant Accounting Policies 9 Note 2 New Accounting Standards 9 Note 3 Revenue Recognition 10 Note 4 Income Taxes 11 Note 5 (Loss) Earnings Per Share 11 Note 6 Restricted Cash 12 Note 7 Inventories, Net 12 Note 8 Equity Method Investments 12 Note 9 Variable Interest Entities 13 Note 10 Intangible Assets, Net 13 Note 11 Debt Arrangements 15 Note 12 Securitized Receivables 17 Note 13 Guarantees 18 Note 14 Derivative Financial Instruments 19 Note 15 Fair Value Measurements 20 Note 16 Contingencies and Other Information 20 Note 17 Equity-Based Compensation 21 Note 18 Related Party Transactions 22 Note 19 Segment Information 24 8 1. Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated interim financial statements represent the consolidation of Pyxus International, Inc. (the "Company," "Pyxus," "we," "us," or "our") and all companies that Pyxus directly or indirectly controls, either through majority ownership or otherwise. These condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, the normal and recurring adjustments necessary for a fair presentation of the results of operations, financial position, and cash flows have been included. These condensed consolidated interim financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025 filed on June 10, 2025. The year-end condensed consolidated balance sheet data was derived from the audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. Due to the seasonal nature of the Company’s business, the results of operations for a fiscal quarter are not necessarily indicative of the operating results that may be attained for other quarters or a full fiscal year. 2. New Accounting Standards Recently Adopted Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures . This ASU amends FASB Topic 280 to permit the disclosure of multiple measures of a segment's profit or loss, and requires an entity with a single reportable segment to apply FASB Topic 280 in its entirety. In addition, this ASU requires the following new segment disclosures: • Significant segment expenses by reportable segment if regularly provided to the Chief Operating Decision Maker ("CODM") and included within the reported measure of segment profit or loss; • Other segment items, which represents the difference between reported segment revenues less the significant segment expenses less reported segment profit or loss; and • Title and position of the CODM. Disclosures required under this new ASU and the existing segment profit or loss and assets disclosures currently required annually by FASB Topic 280 are to be disclosed in interim periods. The Company adopted the annual period disclosure requirements for its fiscal year ended March 31, 2025. The interim period disclosure requirements were adopted on April 1, 2025, and are included in " Note 19. Segment Information ". The adoption of this new accounting standard resulted in additional disclosures for segment reporting, and did not have an impact on the Company's financial condition, results of operations, or cash flows. Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures , to provide more disaggregation of income tax information mainly related to the effective tax rate reconciliation and the income taxes paid disclosure requirements. Under the new accounting rules, the tabular effective tax rate reconciliation must include specific categories with certain reconciling items based on the expected tax further disaggregated by nature and/or jurisdiction. Income taxes paid, net of refunds received, must be broken out by federal, state, and foreign taxes, and further disaggregated by individual jurisdictions based on total income taxes paid. These new annual disclosure requirements are effective for the Company's fiscal year ending March 31, 2026. Early adoption is permitted. This new standard will result in additional disclosures within the footnotes to the financial statements, and is not expected to have an impact on the Company’s financial condition, results of operations, or cash flows. In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses , which requires a tabular disclosure of relevant expense captions into prescribed natural expense categories. The annual disclosure requirements are effective for the Company’s fiscal year ending March 31, 2028, and the interim period disclosure requirements are effective beginning April 1, 2028. Early adoption is permitted. This new standard will result in additional disclosures within the footnotes to the financial statements, and is not expected to have an impact on the Company’s financial condition, results of operations, or cash flows. In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments - Credit Losses: Measurement of Credit Losses for Accounts Receivable and Contract Assets , to include a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets. This new practical expedient allows an entity to assume current economic conditions as of the balance sheet date will not change for the life of the asset, thereby eliminating the need for an 9 entity to develop and consider reasonable and supportable forecasts of future economic conditions. This amendment is effective for the Company's fiscal year beginning April 1, 2026, including interim periods within that fiscal year. Early adoption is permitted. This amendment is not expected to have a material impact on the Company's financial condition, results of operations, or cash flows. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software , changing the existing model used to determine when cost capitalization is to occur based on various project stages of software development with a more modern approach that introduces a probable-to-complete recognition threshold. The scope of this new guidance also includes the costs an entity incurs to implement a cloud computing arrangement as a customer. This amendment is effective for the Company's annual and interim periods beginning April 1, 2028. Early adoption is permitted. The Company is currently evaluating the impact this new accounting standard will have on its financial condition, results of operations, and cash flows. 3. Revenue Recognition Product revenue is primarily processed tobacco sold to the customer. Processing and other revenues are mainly contracts to process customer-owned green tobacco. During such processing, ownership remains with the customers. All Other revenue is primarily composed of revenue from the sale of non-tobacco agriculture products. The following disaggregates sales and other operating revenues by major source, with the All Other category being included for purposes of reconciliation of the respective balances below of the Leaf segment (the Company's sole reportable segment) to the condensed consolidated financial statements: Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Leaf: Product revenue $ 511,197 $ 515,813 $ 969,435 $ 1,105,030 Processing and other revenues 55,454 48,358 105,631 90,104 Leaf sales and other operating revenues 566,651 564,171 1,075,066 1,195,134 All Other: All Other sales and other operating revenues 3,559 2,212 3,959 6,104 Total sales and other operating revenues $ 570,210 $ 566,383 $ 1,079,025 $ 1,201,238 The following summarizes activity in the allowance for expected credit losses: Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Balance, beginning of period $ ( 24,299 ) $ ( 24,035 ) $ ( 24,035 ) $ ( 23,940 ) Additions ( 83 ) ( 227 ) ( 83 ) ( 628 ) Write-offs and other adjustments 617 12 353 318 Balance, end of period ( 23,765 ) ( 24,250 ) ( 23,765 ) ( 24,250 ) Trade receivables 219,129 250,626 219,129 250,626 Trade receivables, net $ 195,364 $ 226,376 $ 195,364 $ 226,376 10 4. Income Taxes The Company’s provision for income taxes for the three and six months ended September 30, 2025 was calculated by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss and adjusting for discrete items that occurred during the period. The Company’s provision for income taxes for the three and six months ended September 30, 2024 was calculated using the discrete method, as allowed under FASB Accounting Standards Codification 740-270, Income Taxes - Interim Reporting . The discrete method used in the prior year calculates income tax expense as if the six-month interim period was an annual period. The effective tax rate for the three months ended September 30, 2025 and 2024 was 117.0 % and 192.2 %, respectively. For the three months ended September 30, 2025, the difference between the Company's effective tax rate and the U.S. statutory rate of 21.0% is primarily due to tax expense related to foreign currency gains, the liability for unrecognized tax benefits, and non-deductible interest expense. The effective tax rate for the six months ended September 30, 2025 was not meaningful due to near break-even income before income taxes for the period. The effective tax rate for the six months ended September 30, 2024 was 111.6 %. For the six months ended September 30, 2025, tax expense is impacted by foreign currency gains, the liability for unrecognized tax benefits, and non-deductible interest expense. On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act of 2025 ("OBBBA"). This legislation includes several changes to U.S. federal income tax law, including the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act and changes to the international tax framework. The Company has included the effects of the OBBBA in its current-period provision for income taxes and determined it did not have a material impact on our estimated annual effective tax rate for the fiscal year ending March 31, 2026. 5. (Loss) Earnings Per Share The following summarizes the computation of (loss) earnings per share: Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Net (loss) income attributable to Pyxus International, Inc. $ ( 879 ) $ ( 3,227 ) $ ( 16,704 ) $ 1,415 Basic weighted average shares outstanding 25,806 25,825 25,739 25,683 Plus: Dilutive equity awards (1) — — — — Diluted weighted average shares outstanding 25,806 25,825 25,739 25,683 (Loss) earnings per share: Basic $ ( 0.03 ) $ ( 0.12 ) $ ( 0.65 ) $ 0.06 Diluted $ ( 0.03 ) $ ( 0.12 ) $ ( 0.65 ) $ 0.06 (1) For the three and six months ended September 30, 2025, 186 shares and 225 shares, respectively, related to outstanding restricted stock units have been excluded from the computation of diluted earnings per share because their effect would be antidilutive. For the three and six months ended September 30, 2024, 96 shares and 82 shares, respectively, related to outstanding restricted stock units have been excluded from the computation of diluted earnings per share because their effect would be antidilutive. 11 6. Restricted Cash The following summarizes the composition of restricted cash: September 30, 2025 September 30, 2024 March 31, 2025 Compensating balance for short-term borrowings $ 542 $ 542 $ 542 Escrow 2,752 2,955 3,534 Grants 325 1,857 3,116 Other 3,592 2,092 98 Total $ 7,211 $ 7,446 $ 7,290 7. Inventories, Net The following summarizes the composition of inventories, net: September 30, 2025 September 30, 2024 March 31, 2025 Processed tobacco $ 710,984 $ 750,552 $ 490,410 Unprocessed tobacco 391,799 192,758 241,832 Other tobacco related 26,428 24,725 25,643 All Other 5,972 6,535 4,066 Total $ 1,135,183 $ 974,570 $ 761,951 8. Equity Method Investments The following summarizes the Company's equity method investments as of September 30, 2025: Investee Name Location Primary Purpose Ownership Percentage Basis Difference (1) Adams International Ltd. Thailand Purchase and process tobacco 49 % $ ( 4,526 ) Alliance One Industries India Private Ltd. India Purchase and process tobacco 49 % ( 5,770 ) China Brasil Tabacos Exportadora S.A. Brazil Purchase and process tobacco 49 % 43,000 Oryantal Tütün Paketleme Sanayi ve Ticaret A.Ş. Turkey Process tobacco 50 % ( 416 ) Purilum, LLC U.S. Produce flavor formulations and consumable e-liquids 50 % 4,589 Siam Tobacco Export Corporation Ltd. Thailand Purchase and process tobacco 49 % ( 6,098 ) (1) Basis differences for the Company's equity method investments are due to fair value adjustments recorded during fiscal 2021. The following summarizes financial information for these equity method investments: Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Statement of operations: Sales $ 89,365 $ 86,525 $ 135,869 $ 143,296 Gross profit 12,724 12,528 19,776 19,715 Net income (loss) 1,715 1,182 ( 951 ) 6,421 12 September 30, 2025 September 30, 2024 March 31, 2025 Balance sheet: Current assets $ 515,027 $ 545,582 $ 419,192 Property, plant, and equipment and other assets 58,600 49,755 49,243 Current liabilities 432,573 441,205 328,818 Long-term obligations and other liabilities 6,662 4,038 4,560 9. Variable Interest Entities The Company holds variable interests in multiple entities that primarily procure or process inventory or are securitization entities. These variable interests relate to equity investments, receivables, guarantees, and securitized receivables. The following summarizes the Company's financial relationships with its unconsolidated variable interest entities: September 30, 2025 September 30, 2024 March 31, 2025 Investments in variable interest entities $ 89,753 $ 97,673 $ 90,239 Receivables with variable interest entities 4,964 — — Guaranteed amounts to variable interest entities (not to exceed) 16,282 16,323 15,995 10. Intangible Assets, Net The gross carrying amount and accumulated amortization of intangible assets consist of the following: September 30, 2025 Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships 6.9 years $ 26,101 $ ( 11,057 ) $ 15,044 Technology 2.9 years 11,618 ( 7,585 ) 4,033 Trade names 8.9 years 11,300 ( 4,103 ) 7,197 Total $ 49,019 $ ( 22,745 ) $ 26,274 September 30, 2024 Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships 7.9 years $ 26,101 $ ( 8,882 ) $ 17,219 Technology 4.0 years 12,458 ( 6,094 ) 6,364 Trade names 9.9 years 11,300 ( 3,296 ) 8,004 Total $ 49,859 $ ( 18,272 ) $ 31,587 13 March 31, 2025 Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships 7.4 years $ 26,101 $ ( 9,969 ) $ 16,132 Technology 3.4 years 11,618 ( 6,844 ) 4,774 Trade names 9.4 years 11,300 ( 3,699 ) 7,601 Total $ 49,019 $ ( 20,512 ) $ 28,507 The following summarizes amortization expense for definite-lived intangible assets: Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Amortization expense $ 1,113 $ 1,140 $ 2,233 $ 2,292 14 11. Debt Arrangements The following summarizes debt and notes payable: Interest Rate September 30, 2025 September 30, 2024 March 31, 2025 Senior secured credit facilities: ABL Credit Facility 7.6 % (1) $ — $ 35,000 $ — Senior secured notes: 8.5 % Notes Due 2027 (2) 8.5 % (1) 146,250 145,445 145,820 Senior secured term loans: Intabex Term Loans (3) 12.7 % (1) 187,439 186,886 187,144 Pyxus Term Loans (4) 12.7 % (1) 121,622 122,139 121,886 Other Debt: Other long-term debt 9.0 % (1) — 89 12 Notes payable (5) 8.9 % (1) 908,037 744,779 395,030 Total debt $ 1,363,348 $ 1,234,338 $ 849,892 Short-term (5) $ 908,037 $ 744,779 $ 395,030 Long-term: Current portion of long-term debt $ — $ 89 $ 12 Long-term debt 455,311 489,470 454,850 Total $ 455,311 $ 489,559 $ 454,862 Letters of credit $ 9,034 $ 7,785 $ 7,790 (1) Weighted average stated rate for the trailing twelve months ended September 30, 2025 or, for indebtedness outstanding only during a portion of such twelve-month period, for the portion of such period that such indebtedness was outstanding. (2) Balance of $ 146,250 is net of a debt discount of $ 2,089 . Total repayment at maturity is $ 148,339 . (3) Balance of $ 187,439 is net of a debt discount of $ 1,594 . Total repayment at maturity is $ 189,033 , which includes a $ 2,000 exit fee payable upon repayment. (4) Balance of $ 121,622 is net of a debt premium of $ 1,417 . Total repayment at maturity is $ 120,205 . (5) Primarily foreign seasonal lines of credit. Outstanding Senior Secured Debt ABL Credit Facility The Company’s wholly owned subsidiary, Pyxus Holdings, Inc. ("Pyxus Holdings"), certain subsidiaries of Pyxus Holdings (together with Pyxus Holdings, the "Borrowers"), and the Company and its wholly owned subsidiary, Pyxus Parent, Inc. ("Pyxus Parent"), as parent guarantors, entered into an ABL Credit Agreement (as amended, the "ABL Credit Agreement"), dated as of February 8, 2022, by and among Pyxus Holdings, as Borrower Agent, the Borrowers and parent guarantors party thereto, the lenders party thereto, and PNC Bank, National Association, as Administrative Agent and Collateral Agent, to establish an asset-based revolving credit facility (the "ABL Credit Facility"), the proceeds of which may be used to refinance existing senior bank debt, pay fees and expenses related to the ABL Credit Facility, partially fund capital expenditures, and provide for the ongoing working capital needs of the Borrowers . The ABL Credit Agreement was amended on May 12, 2025 to, among other things increase the aggregate amount of the revolving loan commitments under the ABL Credit Facility to $ 150,000 , and to extend the maturity to May 12, 2030 or, if earlier, 90 days prior to the earliest stated maturity date of the outstanding senior secured notes and the senior secured term loans (each currently scheduled to mature on December 31, 2027). At September 30, 2025, the Borrowers and the parent guarantors under the ABL Credit Agreement were in compliance with the covenants under the ABL Credit Agreement. Intabex Term Loans The Intabex Term Loan Credit Agreement, dated as of February 6, 2023 (the "Intabex Term Loan Credit Agreement"), is by and among, Pyxus Holdings, the guarantors party thereto, the lenders party thereto and Alter Domus (US) LLC ("Alter Domus"), as administrative agent and senior collateral agent. The Intabex Term Loan Credit Agreement established a term loan 15 credit facility in an aggregate principal amount of approximately $ 189,033 (the "Intabex Credit Facility"), under which term loans in the full aggregate principal amount of the Intabex Credit Facility (the "Intabex Term Loans") were deemed made in exchange for certain outstanding term debt of Pyxus Holdings, accrued and unpaid PIK interest thereon, and related fees. The Intabex Term Loans bear interest, at Pyxus Holdings’ option, at either (i) a term SOFR rate (subject to a floor of 1.5 %) plus 8.0 % per annum or (ii) an alternate base rate plus 7.0 % per annum. The Intabex Term Loans are stated to mature on December 31, 2027. At September 30, 2025, Pyxus Holdings and the guarantors under the Intabex Term Loan Credit Agreement were in compliance with all covenants under the Intabex Term Loan Credit Agreement. Pyxus Term Loans The Pyxus Term Loan Credit Agreement, dated as of February 6, 2023 (the "Pyxus Term Loan Credit Agreement"), is by and among, Pyxus Holdings, the guarantors party thereto, the lenders party thereto and Alter Domus, as administrative agent and senior collateral agent. It established a term loan credit facility in an aggregate principal amount of approximately $ 130,550 (the "Pyxus Credit Facility"), under which term loans in the full aggregate principal amount of the Pyxus Credit Facility (the "Pyxus Term Loans") were deemed made in exchange for certain outstanding term debt of Pyxus Holdings and applicable accrued and unpaid PIK interest thereon. The Pyxus Term Loans bear interest, at Pyxus Holdings’ option, at either (i) a term SOFR rate (subject to a floor of 1.5 %) plus 8.0 % per annum or (ii) an alternate base rate plus 7.0 % per annum. The Pyxus Term Loans are stated to mature on December 31, 2027. At September 30, 2025, Pyxus Holdings and the guarantors under the Pyxus Term Loan Credit Agreement were in compliance with all covenants under the Pyxus Term Loan Credit Agreement. 8.50 % Senior Secured Notes due 2027 Pursuant to an exchange offer made by Pyxus Holdings and accepted by holders of approximately 92.7 % of the aggregate principal amount of the outstanding 10.0 % Senior Secured First Lien Notes due 2024 issued by Pyxus Holdings (the "2024 Notes") pursuant to that certain Indenture, dated as of August 24, 2020 (the "2024 Notes Indenture"), by and among Pyxus Holdings, the guarantors party thereto and the trustee, collateral agent, registrar and paying agent thereunder, on February 6, 2023, Pyxus Holdings issued approximately $ 260,452 in aggregate principal amount of 8.5 % Senior Secured Notes due December 31, 2027 (the "2027 Notes") to the exchanging holders of the 2024 Notes for an equal principal amount of 2024 Notes. The 2027 Notes were issued pursuant to the Indenture, dated as of February 6, 2023 (the "2027 Notes Indenture"), among Pyxus Holdings, the guarantors party thereto, and Wilmington Trust, National Association, as trustee, and Alter Domus, as collateral agent. The 2027 Notes bear interest at a rate of 8.5 % per annum, which interest is computed on the basis of a 360-day year comprised of twelve 30-day months. At September 30, 2025, Pyxus Holdings and the guarantors of the 2027 Notes were in compliance with all covenants under the 2027 Notes Indenture. Detailed descriptions of the instruments governing the Company's outstanding senior secured debt are included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025. Related Party Transactions Based on a Schedule 13D/A filed with the SEC on March 25, 2024, by Monarch Alternative Capital LP (the "Monarch Investor"), MDRA GP LP and Monarch GP LLC, the Monarch Investor reported beneficial ownership of 6,125 shares of the Company’s common stock, representing approximately 24.9 % of the outstanding shares of the Company’s common stock. An individual designated by the Monarch Investor serves as a director of Pyxus. On March 21, 2024, Pyxus Holdings entered into an agreement (the "Debt Repurchase Agreement") with funds affiliated with the Monarch Investor to purchase $ 77,922 of aggregate principal amount of their holdings in the 2027 Notes for $ 60,000 , a 23.0 % discount to par value, plus accrued and unpaid interest and specified customary fees. The purchase of $ 77,922 aggregate principal amount of the 2027 Notes for a total of $ 62,339 (including fees and accrued and unpaid interest) was completed on March 28, 2024. The Debt Repurchase Agreement also included the right of Pyxus Holdings, at its option, to purchase from such holders an additional $ 34,191 aggregate principal amount of the 2027 Notes for $ 26,327 , a 23.0 % discount to par value, plus accrued and unpaid interest, and $ 10,345 aggregate principal amount of the Pyxus Term Loans for $ 9,104 , a 12.0 % discount to par value, plus accrued and unpaid interest. On April 12, 2024, Pyxus Holdings exercised its rights to complete these repurchases by September 30, 2024. On May 31, 2024, Pyxus Holdings completed the purchase of $ 10,345 of aggregate principal amount of the Pyxus Term Loans for a total of $ 9,435 (including accrued and unpaid interest). On August 2, 2024, Pyxus Holdings completed the purchase of $ 34,191 of aggregate principal amount of the 2027 Notes for a total of $ 26,707 (including accrued and unpaid interest). 16 The Debt Repurchase Agreement and the transactions contemplated thereunder were approved and determined to be on terms and conditions at least as favorable to the Company and its subsidiaries as could reasonably have been obtained in a comparable arm's-length transaction with an unaffiliated party by a majority of the disinterested members of the Board of Directors of Pyxus. See " Note 18. Related Party Transactions " for additional information. Other Outstanding Debt Foreign Seasonal Lines of Credit Excluding long-term credit agreements, the Company typically finances its non-U.S. operations with committed and uncommitted short-term seasonal lines of credit arrangements with a number of banks. These operating lines are generally seasonal in nature, typically extending for a term of 180 days to 365 days corresponding to the tobacco crop cycle in that location. For uncommitted facilities, the lenders have the right to cease making loans and demand repayment of loans at any time or at specified dates. These loans are generally renewed at the outset of each tobacco season. Certain of the seasonal lines of credit are secured by trade receivables and inventories as collateral and are guaranteed by the Company and certain of its subsidiaries. At September 30, 2025, the Company was permitted to borrow under foreign seasonal lines of credit up to a total $ 1,067,446 , subject to limitations under the ABL Credit Agreement and the agreements governing the Intabex Term Loans, the Pyxus Term Loans, and the 2027 Notes. As of September 30, 2025, the total borrowing capacity under individual foreign seasonal lines of credit range up to $ 170,000 . As of September 30, 2025, the aggregate amount available for borrowing under the seasonal lines of credit was $ 162,812 . At September 30, 2025, the Company, and its subsidiaries, were in compliance with the covenants associated with its short-term seasonal lines of credit. 12. Securitized Receivables The Company sells trade receivables to unaffiliated financial institutions under various accounts receivable securitization facilities, two of which are subject to annual renewal. Under the first facility with Finacity Corporation (the "Finacity Facility"), the Company continuously sells a designated pool of trade receivables to a special purpose entity, which sells 100 % of the receivables to an unaffiliated financial institution. Following the sale and transfer of the receivables to the special purpose entity, the receivables are isolated from the Company and its affiliates, and effective control of the receivables is passed to the unaffiliated financial institution, which has all rights, including the right to pledge or sell the receivables. This facility requires a minimum level of deferred purchase price be retained by the Company in connection with the sales of the receivables to the unaffiliated financial institution. The Company continues to service, administer, and collect the receivables on behalf of the special purpose entity and receives a servicing fee of 0.5 % of serviced receivables per annum. The Company estimates the expected fee it receives in return for its obligation to service these receivables reflects fair value, and accordingly, no servicing assets or liabilities are recognized. Servicing fees are recorded as a reduction of selling, general, and administrative expenses within the condensed consolidated statements of operations. As of September 30, 2025, the investment limit of this facility was $ 120,000 of trade receivables. Under the second facility, the Company offers trade receivables for sale to an unaffiliated financial institution, which are then subject to acceptance by the unaffiliated financial institution. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are isolated from the Company and its affiliates, and effective control of the receivables is passed to the unaffiliated financial institution, which has all rights, including the right to pledge or sell the receivables. Although the Company continues to service, administer, and collect the receivables on behalf of the unaffiliated financial institution, the Company does not receive a servicing fee, and as a result, has established a servicing liability based upon unobservable inputs, primarily discounted cash flow. As of September 30, 2025, the investment limit under the second facility was $ 160,000 of trade receivables. As servicer for the Finacity Facility and the second facility, the Company may receive funds that are due to the unaffiliated financial institutions which are net settled on the next settlement date. As of September 30, 2025 and 2024, and March 31, 2025, trade receivables, net in the condensed consolidated balance sheets has been reduced by $ 4,742 , $ 11,093 , and $ 2,190 as a result of the net settlement, respectively. As of September 30, 2025 and 2024, accrued expenses and other current liabilities in the condensed consolidated balance sheets includes $ 5,463 and $ 1,735 of net payables for the Finacity Facility. See " Note 15. Fair Value Measurements " for additional information. Under the other facilities, the Company offers trade receivables for sale to unaffiliated financial institutions, which are then subject to acceptance by the unaffiliated financial institutions. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are isolated from the Company and its affiliates, and effective control of the receivables is passed to the unaffiliated financial institution, which has all rights, including the right to pledge or sell the 17 receivables. As of September 30, 2025, the investment limits under these other facilities were variable based on qualifying sales. The following summarizes the Company's accounts receivable outstanding in the securitization facilities, which represents trade receivables sold into the program that have not been collected from the customer, and related beneficial interests, which represents the Company's residual interest in receivables sold that have not been collected from the customer: September 30, 2025 September 30, 2024 March 31, 2025 Receivables outstanding in facility $ 118,241 $ 126,298 $ 355,246 Beneficial interests 4,742 11,093 29,354 Cash proceeds from the sale of trade receivables is comprised of a combination of cash and a deferred purchase price receivable. Deferred purchase price receivable is realized after the collection of the underlying trade receivables sold by the purchasers. The following summarizes the Company's cash purchase price and deferred purchase price: Six Months Ended September 30, 2025 2024 Cash proceeds: Cash purchase price $ 264,049 $ 390,348 Deferred purchase price 108,811 101,597 13. Guarantees In certain sourcing regions, the Company guarantees bank loans for tobacco suppliers to finance their crops. The Company also guarantees bank loans of certain unconsolidated affiliates. The fair value of the Company's guarantees is recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets. See " Note 15. Fair Value Measurements " for the fair value of the Company's guarantee liability and corresponding fair value classification. The following summarizes amounts guaranteed: September 30, 2025 September 30, 2024 March 31, 2025 Amounts guaranteed (not to exceed) $ 86,958 $ 47,461 $ 110,660 Amounts outstanding under guarantee (1) 25,617 22,700 80,045 Amounts due to local banks on behalf of suppliers for government subsidized rural credit financing 140 101 13,787 (1) Most of the guarantees outstanding at September 30, 2025 expire within one year . 18 14. Derivative Financial Instruments The Company is exposed to foreign currency exchange rate risk related to our international operations. Principal currencies hedged include the Brazilian real and the Malawian kwacha. The Company uses forward or option currency contracts to manage risks associated with changes in foreign currency exchange rates. These derivative contracts are either designated as cash flow hedges of forecasted transactions for the purchase of green tobacco, other processing-related costs, and selling, general, and administrative expenses, or are not designated as hedging instruments because they are used to partially offset the immediate earnings impact of exchange rate risk on certain foreign currency denominated transactions. As of September 30, 2025, there were no outstanding derivative financial instruments. As of September 30, 2024 and March 31, 2025, the Company's derivative financial instruments outstanding were designated as cash flow hedges. Derivative assets and liabilities are recorded in other current assets and accrued expenses and other current liabilities, respectively, within our condensed consolidated balance sheets. See " Note 15. Fair Value Measurements " for the fair values of the Company's outstanding derivative assets and liabilities and corresponding fair value classifications. The following summarizes the U.S. Dollar notional amount of derivative contracts outstanding: September 30, 2025 September 30, 2024 March 31, 2025 Foreign currency exchange contracts $ — $ 39,600 $ 49,500 The following summarizes the pre-tax effects of derivative financial instruments in the condensed consolidated statements of comprehensive (loss) income and the condensed consolidated statements of operations: Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Foreign currency exchange contracts designated as cash flow hedges: Gain (loss) recognized in accumulated other comprehensive income (1) $ ( 148 ) $ 1,139 $ 3,206 $ ( 997 ) Gain (loss) reclassified from accumulated other comprehensive income to earnings (2) 1,392 ( 412 ) 2,539 439 Foreign currency exchange contracts not designated as hedging instruments: (3) Gain recognized in earnings (2) $ 1,966 $ — $ 2,687 $ — (1) Amount represents the change in fair value of derivative financial instruments. (2) These gains (losses) are recognized in cost of goods and services sold within the condensed consolidated statements of operations. (3) There were foreign currency exchange contracts not designated as hedging instruments outstanding during the three and six months ended September 30, 2025, but all had expired or settled by period end. 19 15. Fair Value Measurements The following summarizes the financial assets and liabilities measured at fair value on a recurring basis: September 30, 2025 September 30, 2024 March 31, 2025 Level 2 Level 3 Total at Fair Value Level 2 Level 3 Total at Fair Value Level 2 Level 3 Total at Fair Value Financial Assets: Derivative financial instruments $ — $ — $ — $ 685 $ — $ 685 $ 982 $ — $ 982 Securitized beneficial interests — 4,742 4,742 — 11,093 11,093 — 29,354 29,354 Total assets $ — $ 4,742 $ 4,742 $ 685 $ 11,093 $ 11,778 $ 982 $ 29,354 $ 30,336 Financial Liabilities: Derivative financial instruments $ — $ — $ — $ 490 $ — $ 490 $ 57 $ — $ 57 Long-term debt (1) 438,107 — 438,107 418,849 91 418,940 433,885 12 433,897 Guarantees — 843 843 — 284 284 — 6,459 6,459 Total liabilities $ 438,107 $ 843 $ 438,950 $ 419,339 $ 375 $ 419,714 $ 433,942 $ 6,471 $ 440,413 (1) This fair value measurement disclosure does not affect the condensed consolidated balance sheets. The following summarizes the reconciliation of changes in Level 3 instruments measured on a recurring basis: Three Months Ended September 30, 2025 September 30, 2024 Securitized Beneficial Interests Long-Term Debt Guarantees Securitized Beneficial Interests Long-Term Debt Guarantees Balance, beginning of period $ 16,103 $ — $ 3,287 $ 25,640 $ 160 $ 2,611 Issuances 48,993 — 517 57,410 — 392 Settlements ( 59,165 ) — ( 2,516 ) ( 69,296 ) ( 69 ) ( 1,680 ) Losses recognized in earnings ( 1,189 ) — ( 445 ) ( 2,661 ) — ( 1,039 ) Balance, end of period $ 4,742 $ — $ 843 $ 11,093 $ 91 $ 284 Six Months Ended September 30, 2025 September 30, 2024 Securitized Beneficial Interests Long-Term Debt Guarantees Securitized Beneficial Interests Long-Term Debt Guarantees Balance, beginning of period $ 29,354 $ 12 $ 6,459 $ 15,036 $ 160 $ 5,097 Issuances 79,009 — 817 118,439 — 1,330 Settlements ( 101,188 ) ( 12 ) ( 3,758 ) ( 114,529 ) ( 69 ) ( 2,395 ) Losses recognized in earnings ( 2,433 ) — ( 2,675 ) ( 7,853 ) — ( 3,748 ) Balance, end of period $ 4,742 $ — $ 843 $ 11,093 $ 91 $ 284 16. Contingencies and Other Information Brazilian Tax Credits The government in the Brazilian State of Parana ("Parana") issued a tax assessment on October 26, 2007 with respect to local intrastate trade tax credits that result primarily from tobacco transferred between states within Brazil. At September 30, 2025, the assessment for intrastate trade tax credits taken is $ 2,482 and the total assessment including penalties and interest is $ 10,820 . The Company believes it has properly complied with Brazilian law and will contest any assessment through the judicial process. Should the Company lose in the judicial process, the loss of the intrastate trade tax credits would have a material impact on the financial statements of the Company. 20 Other Matters In addition to the above-mentioned matters, the Company or certain of its subsidiaries are involved in other litigation or legal matters incidental to their business activities, including tax matters. While the outcome of these matters cannot be predicted with certainty, they are being vigorously defended and the Company does not currently expect that any of them will have a material adverse effect on its business or financial position. However, should one or more of these matters be resolved in a manner adverse to its current expectation, the effect on the Company’s results of operations for a particular fiscal reporting period could be material. 17. Equity-Based Compensation Pursuant to the Pyxus International, Inc. Amended and Restated 2020 Incentive Plan (the "Incentive Plan"), a total of 3,612 shares (which amounts are presented in thousands) have been authorized for grants of equity-based awards to certain employees and non-employee directors. Restricted Stock Units Restricted stock units granted under the Incentive Plan are earned ratably for certain employees, subject to their continued employment, from the date of the award to March 31, 2027, and for certain non-employee directors, subject to continued board service, from the date of the award to the Company's next annual meeting of shareholders. Restricted stock units vest upon the earlier of March 31, 2031 or the occurrence of a change-in-control event or a liquidity event as such terms are defined under the restricted stock unit award agreement. The following summarizes activity for restricted stock units: (in thousands, except grant date fair value) Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Nonvested, March 31, 2025 1,724 $ 3.46 Granted 30 5.10 Canceled or forfeited ( 23 ) 3.50 Nonvested, September 30, 2025 1,731 $ 3.49 The following summarizes equity-based compensation expense for restricted stock units, which is recorded in selling, general, and administrative expenses within the condensed consolidated statements of operations: Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Equity-based compensation expense $ 256 $ 601 $ 493 $ 3,632 The amount recorded during the six months ended September 30, 2024 included the impact of a cumulative catch-up adjustment due to the modification on May 10, 2024 of awards then outstanding under the Incentive Plan. Unrecognized compensation cost for restricted stock units is $ 1,430 as of September 30, 2025, and is expected to be recognized over a weighted average period of 1.52 years, representing the weighted average remaining service period related to the awards, subject to adjustments for actual forfeitures. Performance-Based Stock Units Under the terms of the performance-based stock units, the amount of shares to be issued to certain employees (ranging from 0 % to 200 % of the number of shares to be issued at the target performance level) will be contingent upon the per share price achieved in a liquidity event (as defined under the terms of the performance-based stock unit award agreement), subject to continued employment through the date of a liquidity event. The contingent liquidity event is not probable as of September 30, 21 2025, and accordingly, no equity-based compensation expense has been recognized for performance-based stock units. The following summarizes activity for performance-based stock units (at the target performance level): (in thousands, except grant date fair value) Performance-Based Stock Units Weighted Average Grant Date Fair Value Per Share Nonvested, March 31, 2025 553 $ 4.36 Granted 23 6.79 Canceled or forfeited ( 26 ) 4.36 Nonvested, September 30, 2025 549 $ 4.46 18. Related Party Transactions The Company engages in transactions with its equity method investees primarily for the procuring and processing of inventory. The following summarizes activities with the Company's equity method investees: Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Sales $ 10,930 $ 3,966 $ 19,985 $ 14,541 Purchases 49,693 63,408 77,002 98,294 The Company included the following related party balances in its condensed consolidated balance sheets: September 30, 2025 September 30, 2024 March 31, 2025 Location in Condensed Consolidated Balance Sheet Accounts receivable, related parties $ 5,014 $ 50 $ 50 Other receivables Accounts payable, related parties 33,672 44,878 19,731 Accounts payable Advances from related parties — 42 — Advances from customers Transactions with Significant Shareholders Based on a Schedule 13D/A filed with the SEC on June 13, 2024 by Glendon Capital Management, L.P. (the "Glendon Investor"), Holly Kim Olsen, Glendon Opportunities Fund, L.P. and Glendon Opportunities Fund II, L.P., the Glendon Investor reported beneficial ownership of 8,315 shares of the Company’s common stock, representing approximately 33.8 % of the outstanding shares of the Company’s common stock. A representative of the Glendon Investor serves as a director of Pyxus. Based on a Schedule 13G/A filed with the SEC on September 3, 2024 by Owl Creek Asset Management, L.P. and Jeffrey A. Altman, Owl Creek Asset Management, L.P. is the investment manager of certain funds and reported beneficial ownership of 3,865 shares of the Company’s common stock on August 31, 2024, representing approximately 15.7 % of the outstanding shares of the Company’s common stock. Funds managed by the Glendon Investor, funds managed by the Monarch Investor, and funds managed by Owl Creek Asset Management, L.P., (such funds are collectively referred to as the "Investor-Affiliated Funds") were holders, in part, of the Intabex Term Loans, the Pyxus Term Loans and the 2027 Notes, which are described in " Note 11. Debt Arrangements ," during the six months ended September 30, 2025. On August 21, 2024, the Company entered into a privately negotiated transaction with CI Investments, Inc. ("CI Investments"), which at that time was a beneficial owner of greater than five percent of the Company's common stock outstanding, to repurchase 392 (which amount is presented in thousands) shares of its common stock for approximately $ 1,000 , inclusive of broker commission fees, which transaction was completed on August 22, 2024. This transaction was approved, and determined to be on terms and conditions at least as favorable to the Company and its subsidiaries as could reasonably have been obtained in a comparable arm's-length transaction with an unaffiliated party, by a majority of the disinterested members of the Board of Directors of Pyxus. Following the completion of this transaction and other contemporaneous dispositions of the Company’s common stock by CI Investments, CI Investments ceased to be a beneficial owner of more than five percent of the Company's common stock outstanding. Accrued expenses and other current liabilities as presented in the condensed consolidated balance sheets as of September 30, 2025 and 2024, and March 31, 2025, includes $ 1,403 , $ 1,624 , and $ 1,600 , respectively, of interest payable to Investor-Affiliated Funds and CI Investments (applicable only for the periods in which CI Investments was a beneficial owner of more than five percent of the Company's common stock outstanding). Interest expense as presented in the condensed consolidated 22 statements of operations includes $ 5,510 and $ 10,976 for the three and six months ended September 30, 2025, respectively, and $ 5,945 and $ 13,206 for the three and six months ended September 30, 2024, respectively, that relates to the Investor-Affiliated Funds and CI Investments (applicable only for the periods in which CI Investments was a beneficial owner of more than five percent of the Company's common stock outstanding). The holders of senior debt that are parties to the Debt Repurchase Agreement entered into on March 21, 2024 are funds affiliated with the Monarch Investor and of which the Monarch Investor is the investment advisor. The Debt Repurchase Agreement and the transactions contemplated thereby, including the exercise by Pyxus Holdings of its right to purchase the Pyxus Term Loans and additional 2027 Notes thereunder on April 12, 2024, were approved, and determined to be on terms and conditions at least as favorable to the Company and its subsidiaries as could reasonably have been obtained in a comparable arm's length transaction with an unaffiliated party, by a majority of the disinterested members of the Board of Directors of Pyxus. Under the terms of the Debt Repurchase Agreement, the Company has paid the following amounts to funds affiliated with the Monarch Investor: • On March 28, 2024, the Company paid a total of $ 62,339 , which included $ 1,849 of accrued and unpaid interest and $ 490 in other fees, to retire $ 77,922 of aggregate principal amount of the 2027 Notes. • On May 31, 2024, the Company paid a total of $ 9,435 , which included $ 332 of accrued and unpaid interest, to retire $ 10,345 of aggregate principal amount of the Pyxus Term Loans. • On August 2, 2024, the Company paid a total of $ 26,707 , which included $ 379 of accrued and unpaid interest, to retire $ 34,191 of aggregate principal amount of the 2027 Notes. Upon completion of the transactions under the Debt Repurchase Agreement, the Monarch Investor is no longer a holder of the 2027 Notes and the Pyxus Term Loans. The Monarch Investor remains a related party as a holder of a portion of the Intabex Term Loans and a beneficial owner of more than five percent of the Company's common stock outstanding. 23 19. Segment Information The following summarizes segment information, with the All Other category being included for purposes of reconciliation of the respective balances of the Leaf segment (the Company's sole reportable segment) to the condensed consolidated financial statements: Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Sales and other operating revenues: Leaf $ 566,651 $ 564,171 $ 1,075,066 $ 1,195,134 All Other 3,559 2,212 3,959 6,104 Consolidated sales and other operating revenues $ 570,210 $ 566,383 $ 1,079,025 $ 1,201,238 Cost of goods and services sold: Leaf $ 478,553 $ 486,962 $ 921,939 $ 1,033,150 All Other 3,868 3,952 3,671 8,767 Consolidated cost of goods and services sold $ 482,421 $ 490,914 $ 925,610 $ 1,041,917 Selling, general, and administrative expenses: Leaf $ 38,787 $ 37,630 $ 77,522 $ 76,422 All Other 1,355 1,245 2,989 3,115 Consolidated selling, general, and administrative expenses $ 40,142 $ 38,875 $ 80,511 $ 79,537 Other segment items: (1) Leaf $ 1,159 $ 3,295 $ 5,364 $ 6,797 All Other ( 280 ) ( 3 ) ( 309 ) ( 875 ) Consolidated other segment items $ 879 $ 3,292 $ 5,055 $ 5,922 Leaf segment operating income $ 48,152 $ 36,283 $ 70,241 $ 78,765 All Other operating loss ( 1,384 ) ( 2,981 ) ( 2,392 ) ( 4,903 ) Restructuring and asset impairment charges 40 224 121 327 Consolidated operating income $ 46,728 $ 33,078 $ 67,728 $ 73,535 Gain on debt retirement — 6,855 — 8,178 Interest expense, net 37,922 35,750 67,689 69,022 Income before income taxes and other items $ 8,806 $ 4,183 $ 39 $ 12,691 (1) Represents the other expense, net caption within the condensed consolidated statements of operations. 24 Three Months Ended September 30, 2025 2024 Leaf All Other Total Leaf All Other Total Depreciation and amortization $ 4,813 $ 385 $ 5,198 $ 4,683 $ 382 $ 5,065 Capital expenditures 5,867 348 6,215 4,177 768 4,945 Six Months Ended September 30, 2025 2024 Leaf All Other Total Leaf All Other Total Depreciation and amortization $ 9,613 $ 754 $ 10,367 $ 9,407 $ 785 $ 10,192 Capital expenditures 7,875 1,004 8,879 8,270 1,023 9,293 September 30, 2025 September 30, 2024 March 31, 2025 Leaf All Other Total Leaf All Other Total Leaf All Other Total Assets $ 1,939,514 $ 37,470 $ 1,976,984 $ 1,798,849 $ 37,825 $ 1,836,674 $ 1,466,400 $ 37,443 $ 1,503,843 Trade and other receivables, net 213,751 491 214,242 236,995 506 237,501 204,054 175 204,229 Investments in unconsolidated affiliates 89,752 6,504 96,256 97,683 6,720 104,403 90,238 6,690 96,928 25