PYXUS INTERNATIONAL, INC. 10-Q

Item 1. Financial Statements Pyxus International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Nine Months Ended December 31, December 31, (in thousands, except per share data) 2025 2024 2025 2024 Sales and other operating revenues $ 655,798 $ 778,307 $ 1,734,823 $ 1,979,545 Cost of goods and services sold 555,906 661,860 1,481,516 1,703,777 Gross profit 99,892 116,447 253,307 275,768 Selling, general, and administrative expenses 38,284 46,513 118,795 126,050 Other expense, net 8,818 3,764 13,873 9,686 Restructuring and asset impairment charges 1,504 89 1,625 416 Operating income 51,286 66,081 119,014 139,616 Gain on debt retirement — — — 8,178 Gain on pension settlement 373 — 373 — Interest expense, net 36,566 32,913 104,255 101,935 Income before income taxes and other items 15,093 33,168 15,132 45,859 Income tax expense 10,297 18,088 25,829 32,248 Income from unconsolidated affiliates, net 12,366 4,330 11,694 7,478 Net income 17,162 19,410 997 21,089 Net income attributable to noncontrolling interests 259 512 798 776 Net income attributable to Pyxus International, Inc. $ 16,903 $ 18,898 $ 199 $ 20,313 Earnings per share: Basic $ 0.65 $ 0.74 $ 0.01 $ 0.79 Diluted $ 0.65 $ 0.74 $ 0.01 $ 0.79 Weighted average number of shares outstanding: Basic 25,841 25,540 25,773 25,643 Diluted 25,917 25,540 25,956 25,643 See "Notes to Condensed Consolidated Financial Statements" 3 Pyxus International, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Nine Months Ended December 31, December 31, (in thousands) 2025 2024 2025 2024 Net income $ 17,162 $ 19,410 $ 997 $ 21,089 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment 154 ( 976 ) 1,716 ( 155 ) Pension and other postretirement benefit plans ( 1,521 ) — ( 1,521 ) — Cash flow hedges ( 444 ) ( 2,453 ) ( 3 ) ( 3,424 ) Total other comprehensive (loss) income, net of tax $ ( 1,811 ) $ ( 3,429 ) $ 192 $ ( 3,579 ) Total comprehensive income 15,351 15,981 1,189 17,510 Comprehensive income attributable to noncontrolling interests 259 512 798 776 Comprehensive income attributable to Pyxus International, Inc. $ 15,092 $ 15,469 $ 391 $ 16,734 See "Notes to Condensed Consolidated Financial Statements" 4 Pyxus International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (in thousands) December 31, 2025 December 31, 2024 March 31, 2025 Assets Current assets Cash and cash equivalents $ 129,840 $ 103,342 $ 78,254 Restricted cash 4,703 6,363 7,290 Trade receivables, net 246,812 326,641 189,239 Other receivables 21,700 17,518 15,040 Inventories, net 989,141 782,480 761,951 Advances to tobacco suppliers, net 102,136 91,838 30,745 Recoverable income taxes 12,970 2,659 6,616 Prepaid expenses 38,400 34,549 47,151 Other current assets 22,112 19,841 21,874 Total current assets 1,567,814 1,385,231 1,158,160 Investments in unconsolidated affiliates 101,600 97,258 96,928 Intangible assets, net 25,175 29,627 28,507 Deferred income taxes, net 12,771 7,056 13,567 Long-term recoverable income taxes 6,555 3,534 5,669 Other noncurrent assets 35,054 31,065 33,094 Right-of-use assets 29,230 30,069 29,742 Property, plant, and equipment, net 140,892 136,344 138,176 Total assets $ 1,919,091 $ 1,720,184 $ 1,503,843 Liabilities and Stockholders’ Equity Current liabilities Notes payable $ 833,733 $ 608,648 $ 395,030 Accounts payable 136,686 169,807 132,871 Advances from customers 63,916 88,444 135,607 Accrued expenses and other current liabilities 125,791 104,179 90,912 Income taxes payable 15,626 20,525 11,001 Operating leases payable 9,154 8,179 8,514 Current portion of long-term debt — 49 12 Total current liabilities 1,184,906 999,831 773,947 Long-term taxes payable 3,263 3,735 5,187 Long-term debt 455,529 454,643 454,850 Deferred income taxes 10,831 8,265 8,818 Liability for unrecognized tax benefits 21,070 12,996 18,635 Long-term leases 18,610 19,399 19,584 Pension, postretirement, and other long-term liabilities 57,293 54,308 57,052 Total liabilities $ 1,751,502 $ 1,553,177 $ 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) $ 393,664 $ 392,688 $ 392,899 Retained deficit ( 239,926 ) ( 234,978 ) ( 240,125 ) Accumulated other comprehensive income 7,507 4,207 7,315 Total stockholders’ equity of Pyxus International, Inc. 161,245 161,917 160,089 Noncontrolling interests 6,344 5,090 5,681 Total stockholders’ equity 167,589 167,007 165,770 Total liabilities and stockholders’ equity $ 1,919,091 $ 1,720,184 $ 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 Net income — 16,903 — — — 259 17,162 Equity-based compensation 272 — — — — — 272 Other comprehensive income (loss), net of tax — — 154 ( 1,521 ) ( 444 ) — ( 1,811 ) Balance, December 31, 2025 $ 393,664 $ ( 239,926 ) $ ( 4,329 ) $ 10,995 $ 841 $ 6,344 $ 167,589 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 Net income — 18,898 — — — 512 19,410 Equity-based compensation 267 — — — — — 267 Other comprehensive loss, net of tax — — ( 976 ) — ( 2,453 ) — ( 3,429 ) Balance, December 31, 2024 $ 392,688 $ ( 234,978 ) $ ( 5,847 ) $ 12,766 $ ( 2,712 ) $ 5,090 $ 167,007 See "Notes to Condensed Consolidated Financial Statements" 6 Pyxus International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended December 31, (in thousands) 2025 2024 Operating Activities: Net income $ 997 $ 21,089 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 15,647 15,038 Debt amortization/interest 8,010 8,506 Gain on debt retirement — ( 8,178 ) Loss on foreign currency transactions 7,233 1,604 Gain on pension settlement ( 373 ) — Equity-based compensation 765 3,899 Income from unconsolidated affiliates, net of dividends ( 4,672 ) 3,997 Changes in operating assets and liabilities, net Trade and other receivables ( 209,205 ) ( 305,072 ) Inventories and advances to tobacco suppliers ( 295,477 ) 73,430 Deferred items 6,712 ( 4,047 ) Recoverable income taxes ( 7,302 ) 1,112 Payables and accrued expenses 31,808 2,144 Advances from customers ( 73,223 ) ( 418 ) Prepaid expenses 8,314 16,045 Income taxes 4,157 11,458 Other operating assets and liabilities ( 1,912 ) ( 7,712 ) Other, net ( 10,051 ) ( 4,583 ) Net cash used in operating activities $ ( 518,572 ) $ ( 171,688 ) Investing Activities: Purchases of property, plant, and equipment $ ( 15,780 ) $ ( 15,119 ) Collections from beneficial interests in securitized trade receivables 152,484 142,824 Other, net 5,508 3,226 Net cash provided by investing activities $ 142,212 $ 130,931 Financing Activities: Net proceeds from short-term borrowings $ 431,385 $ 114,868 Proceeds from revolving loan facilities 221,000 238,000 Repayment of revolving loan facilities ( 221,000 ) ( 238,000 ) Repayment of long-term borrowings — ( 55,822 ) Debt issuance costs ( 4,188 ) ( 3,147 ) Other, net 299 ( 275 ) Net cash provided by financing activities $ 427,496 $ 55,624 Effect of exchange rate changes on cash ( 2,137 ) ( 4,955 ) Increase in cash, cash equivalents, and restricted cash 48,999 9,912 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 $ 134,543 $ 109,705 Other information: Cash paid for income taxes, net $ 17,470 $ 21,555 Cash paid for interest, net 76,750 81,465 Noncash investing activities: Noncash amounts obtained as a beneficial interest in exchange for transferring trade receivables in a securitization transaction 139,452 172,103 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 Earnings Per Share 12 Note 6 Restricted Cash 12 Note 7 Inventories, Net 12 Note 8 Equity Method Investments 13 Note 9 Variable Interest Entities 13 Note 10 Intangible Assets, Net 14 Note 11 Debt Arrangements 15 Note 12 Securitized Receivables 16 Note 13 Guarantees 18 Note 14 Derivative Financial Instruments 18 Note 15 Fair Value Measurements 19 Note 16 Contingencies and Other Information 19 Note 17 Equity-Based Compensation 20 Note 18 Related Party Transactions 21 Note 19 Segment Information 23 Note 20 Subsequent Events 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. In November 2025, the FASB issued ASU No. 2025-09, Hedge Accounting Improvements , to clarify certain aspects of existing hedge accounting guidance, and to more closely align hedge accounting with the economics of an entity's risk management activities. This amendment is effective for the Company’s annual and interim periods beginning April 1, 2027 and requires adoption on a prospective basis. 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. In December 2025, the FASB issued ASU No. 2025-10, Accounting for Government Grants Received by Business Entities, to establish guidance on the recognition, measurement, and presentation of government grants received by business entities. This new guidance is effective for the Company’s fiscal year beginning April 1, 2029, including interim periods within that fiscal year. 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 Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Leaf: Product revenue $ 614,666 $ 742,919 $ 1,584,101 $ 1,847,949 Processing and other revenues 37,782 32,416 143,413 122,520 Leaf sales and other operating revenues 652,448 775,335 1,727,514 1,970,469 All Other: All Other sales and other operating revenues 3,350 2,972 7,309 9,076 Total sales and other operating revenues $ 655,798 $ 778,307 $ 1,734,823 $ 1,979,545 10 The following summarizes activity in the allowance for expected credit losses: Three Months Ended Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Balance, beginning of period $ ( 23,765 ) $ ( 24,250 ) $ ( 24,035 ) $ ( 23,940 ) Additions ( 60 ) ( 671 ) ( 143 ) ( 1,299 ) Write-offs and other adjustments 6,524 525 6,877 843 Balance, end of period ( 17,301 ) ( 24,396 ) ( 17,301 ) ( 24,396 ) Trade receivables 264,113 351,037 264,113 351,037 Trade receivables, net $ 246,812 $ 326,641 $ 246,812 $ 326,641 4. Income Taxes The Company’s provision for income taxes for the three and nine months ended December 31, 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 nine months ended December 31, 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 nine-month interim period was an annual period. The effective tax rate for the three months ended December 31, 2025 and 2024 was 68.2 % and 54.5 %, respectively. For the three months ended December 31, 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 the effect of non-U.S. income taxes, non-deductible interest expense, and unremitted foreign earnings. The effective tax rate for the nine months ended December 31, 2025 and 2024 was 170.7 % and 70.3 %, respectively. For the nine months ended December 31, 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, additional reserves 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. 11 5. Earnings Per Share The following summarizes the computation of earnings per share: Three Months Ended Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Net income attributable to Pyxus International, Inc. $ 16,903 $ 18,898 $ 199 $ 20,313 Basic weighted average shares outstanding 25,841 25,540 25,773 25,643 Plus: Dilutive equity awards (1) 76 — 183 — Diluted weighted average shares outstanding 25,917 25,540 25,956 25,643 Earnings per share: Basic $ 0.65 $ 0.74 $ 0.01 $ 0.79 Diluted $ 0.65 $ 0.74 $ 0.01 $ 0.79 (1) For the three and nine months ended December 31, 2024, 63 shares and 6 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. 6. Restricted Cash The following summarizes the composition of restricted cash: December 31, 2025 December 31, 2024 March 31, 2025 Compensating balance for short-term borrowings $ 542 $ 542 $ 542 Escrow 2,057 3,416 3,534 Grants 449 2,305 3,116 Other 1,655 100 98 Total $ 4,703 $ 6,363 $ 7,290 7. Inventories, Net The following summarizes the composition of inventories, net: December 31, 2025 December 31, 2024 March 31, 2025 Processed tobacco $ 768,608 $ 603,283 $ 490,410 Unprocessed tobacco 191,146 151,890 241,832 Other tobacco related 26,048 23,770 25,643 All Other 3,339 3,537 4,066 Total $ 989,141 $ 782,480 $ 761,951 12 8. Equity Method Investments The following summarizes the Company's equity method investments as of December 31, 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 nicotine products 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 Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Statement of operations: Sales $ 263,952 $ 278,031 $ 399,821 $ 421,327 Gross profit 37,326 25,977 57,102 45,692 Net income 25,109 8,933 24,158 15,354 December 31, 2025 December 31, 2024 March 31, 2025 Balance sheet: Current assets $ 513,603 $ 525,087 $ 419,192 Property, plant, and equipment and other assets 62,556 48,206 49,243 Current liabilities 424,846 433,870 328,818 Long-term obligations and other liabilities 6,212 3,827 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: December 31, 2025 December 31, 2024 March 31, 2025 Investments in variable interest entities $ 95,098 $ 90,685 $ 90,239 Receivables with variable interest entities 4,621 4 — Guaranteed amounts to variable interest entities (not to exceed) 19,363 15,968 15,995 13 10. Intangible Assets, Net The gross carrying amount and accumulated amortization of intangible assets consist of the following: December 31, 2025 Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships 6.7 years $ 26,101 $ ( 11,601 ) $ 14,500 Technology 2.7 years 11,618 ( 7,938 ) 3,680 Trade names 8.7 years 11,300 ( 4,305 ) 6,995 Total $ 49,019 $ ( 23,844 ) $ 25,175 December 31, 2024 Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships 7.7 years $ 26,101 $ ( 9,425 ) $ 16,676 Technology 3.6 years 11,618 ( 6,469 ) 5,149 Trade names 9.7 years 11,300 ( 3,498 ) 7,802 Total $ 49,019 $ ( 19,392 ) $ 29,627 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 Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Amortization expense $ 1,099 $ 1,120 $ 3,332 $ 3,412 14 11. Debt Arrangements The following summarizes debt and notes payable: Interest Rate December 31, 2025 December 31, 2024 March 31, 2025 Senior secured credit facilities: ABL Credit Facility 7.2 % (1) $ — $ — $ — Senior secured notes: 8.5 % Notes Due 2027 (2) 8.5 % (1) 146,451 145,628 145,820 Senior secured term loans: Intabex Term Loans (3) 12.5 % (1) 187,595 187,006 187,144 Pyxus Term Loans (4) 12.5 % (1) 121,483 122,009 121,886 Other Debt: Other long-term debt 8.8 % (1) — 49 12 Notes payable (5) 8.9 % (1) 833,733 608,648 395,030 Total debt $ 1,289,262 $ 1,063,340 $ 849,892 Short-term (5) $ 833,733 $ 608,648 $ 395,030 Long-term: Current portion of long-term debt $ — $ 49 $ 12 Long-term debt 455,529 454,643 454,850 Total $ 455,529 $ 454,692 $ 454,862 Letters of credit $ 8,460 $ 8,095 $ 7,790 (1) Weighted average stated rate for the trailing twelve months ended December 31, 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 $ 146,451 is net of a debt discount of $ 1,888 . Total repayment at maturity is $ 148,339 . (3) Balance of $ 187,595 is net of a debt discount of $ 1,438 . Total repayment at maturity is $ 189,033 , which includes a $ 2,000 exit fee payable upon repayment. (4) Balance of $ 121,483 is net of a debt premium of $ 1,278 . 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 December 31, 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 December 31, 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 December 31, 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 December 31, 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. 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 December 31, 2025, the Company was permitted to borrow under foreign seasonal lines of credit up to a total $ 1,055,311 , 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 December 31, 2025, the total borrowing capacity under individual foreign seasonal lines of credit range up to $ 170,000 . As of December 31, 2025, the aggregate amount available for borrowing under the seasonal lines of credit was $ 229,205 . At December 31, 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, 16 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 December 31, 2025, the investment limit of this facility was $ 120,000 of trade receivables. Under this facility, the Company may request a temporary increase in the investment limit up to an additional $ 40,000 , applicable only for the period from January 1, 2026 through May 31, 2026. 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 December 31, 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 December 31, 2025 and 2024, and March 31, 2025, trade receivables, net in the condensed consolidated balance sheets have been reduced by $ 9,977 , $ 8,927 , and $ 2,190 as a result of the net settlement, respectively. 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 receivables. As of December 31, 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: December 31, 2025 December 31, 2024 March 31, 2025 Receivables outstanding in facility $ 247,185 $ 230,845 $ 355,246 Beneficial interests 14,326 17,671 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: Nine Months Ended December 31, 2025 2024 Cash proceeds: Cash purchase price $ 534,496 $ 646,916 Deferred purchase price 152,484 142,824 17 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: December 31, 2025 December 31, 2024 March 31, 2025 Amounts guaranteed (not to exceed) $ 80,942 $ 75,397 $ 110,660 Amounts outstanding under guarantee (1) 56,549 43,700 80,045 Amounts due to local banks on behalf of suppliers for government subsidized rural credit financing 23 44 13,787 (1) Most of the guarantees outstanding at December 31, 2025 expire within one year . 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 December 31, 2025 and 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: December 31, 2025 December 31, 2024 March 31, 2025 Foreign currency exchange contracts $ 4,550 $ 55,000 $ 49,500 The following summarizes the pre-tax effects of derivative financial instruments in the condensed consolidated statements of comprehensive income and the condensed consolidated statements of operations: Three Months Ended Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Foreign currency exchange contracts designated as cash flow hedges: Gain (loss) recognized in accumulated other comprehensive income (1) $ 81 $ ( 4,702 ) $ 3,287 $ ( 5,699 ) Gain (loss) reclassified from accumulated other comprehensive income to earnings (2) 761 ( 537 ) 3,300 ( 98 ) Foreign currency exchange contracts not designated as hedging instruments: (3) Gain recognized in earnings (2) $ 693 $ — $ 3,380 $ — (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 nine months ended December 31, 2025, but all had expired or settled by period end. 18 15. Fair Value Measurements The following summarizes the financial assets and liabilities measured at fair value on a recurring basis: December 31, 2025 December 31, 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 $ 81 $ — $ 81 $ — $ — $ — $ 982 $ — $ 982 Securitized beneficial interests — 14,326 14,326 — 17,671 17,671 — 29,354 29,354 Total assets $ 81 $ 14,326 $ 14,407 $ — $ 17,671 $ 17,671 $ 982 $ 29,354 $ 30,336 Financial Liabilities: Derivative financial instruments $ — $ — $ — $ 3,987 $ — $ 3,987 $ 57 $ — $ 57 Long-term debt (1) 436,221 — 436,221 421,091 49 421,140 433,885 12 433,897 Guarantees — 3,338 3,338 — 2,666 2,666 — 6,459 6,459 Total liabilities $ 436,221 $ 3,338 $ 439,559 $ 425,078 $ 2,715 $ 427,793 $ 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 December 31, 2025 December 31, 2024 Securitized Beneficial Interests Long-Term Debt Guarantees Securitized Beneficial Interests Long-Term Debt Guarantees Balance, beginning of period $ 4,742 $ — $ 843 $ 11,093 $ 91 $ 284 Issuances 60,443 — 2,970 56,192 — 2,408 Settlements ( 48,213 ) — — ( 45,409 ) ( 42 ) ( 26 ) Losses recognized in earnings ( 2,646 ) — ( 475 ) ( 4,205 ) — — Balance, end of period $ 14,326 $ — $ 3,338 $ 17,671 $ 49 $ 2,666 Nine Months Ended December 31, 2025 December 31, 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 139,452 — 3,787 174,631 — 3,738 Settlements ( 149,401 ) ( 12 ) ( 3,758 ) ( 159,938 ) ( 111 ) ( 2,421 ) Losses recognized in earnings ( 5,079 ) — ( 3,150 ) ( 12,058 ) — ( 3,748 ) Balance, end of period $ 14,326 $ — $ 3,338 $ 17,671 $ 49 $ 2,666 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 December 31, 2025, the assessment for intrastate trade tax credits taken is $ 2,399 and the total assessment including penalties and interest is $ 10,595 . 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. 19 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 85 4.23 Canceled or forfeited ( 23 ) 3.50 Nonvested, December 31, 2025 1,786 $ 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 Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Equity-based compensation expense $ 272 $ 267 $ 765 $ 3,899 The amount recorded during the nine months ended December 31, 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 $ 1,364 as of December 31, 2025, and is expected to be recognized over a weighted average period of 1.18 years, representing the weighted average remaining service period related to the awards, subject to adjustments for actual forfeitures. 20 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 December 31, 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, December 31, 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 Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Sales $ 579 $ 474 $ 20,564 $ 15,015 Purchases 73,752 88,908 150,754 187,202 Dividends received 7,022 11,475 7,022 11,475 The Company included the following related party balances in its condensed consolidated balance sheets: December 31, 2025 December 31, 2024 March 31, 2025 Location in Condensed Consolidated Balance Sheet Accounts receivable, related parties $ 4,671 $ 54 $ 50 Other receivables Accounts payable, related parties 45,354 72,182 19,731 Accounts payable 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 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. 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 nine months ended December 31, 2025. 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 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 21 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. 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. 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 December 31, 2025 and 2024, and March 31, 2025, includes $ 1,373 , $ 3,362 , and $ 1,600 , respectively, of interest payable to Investor-Affiliated Funds. Interest expense as presented in the condensed consolidated statements of operations includes $ 5,404 and $ 16,380 for the three and nine months ended December 31, 2025, respectively, and $ 5,762 and $ 18,968 for the three and nine months ended December 31, 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). 22 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 Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Sales and other operating revenues: Leaf $ 652,448 $ 775,335 $ 1,727,514 $ 1,970,469 All Other 3,350 2,972 7,309 9,076 Consolidated sales and other operating revenues $ 655,798 $ 778,307 $ 1,734,823 $ 1,979,545 Cost of goods and services sold: Leaf $ 553,138 $ 659,367 $ 1,475,077 $ 1,692,517 All Other 2,768 2,493 6,439 11,260 Consolidated cost of goods and services sold $ 555,906 $ 661,860 $ 1,481,516 $ 1,703,777 Selling, general, and administrative expenses: Leaf $ 37,007 $ 44,719 $ 114,529 $ 121,141 All Other 1,277 1,794 4,266 4,909 Consolidated selling, general, and administrative expenses $ 38,284 $ 46,513 $ 118,795 $ 126,050 Other segment items: (1) Leaf $ 8,677 $ 3,821 $ 14,041 $ 10,618 All Other 141 ( 57 ) ( 168 ) ( 932 ) Consolidated other segment items $ 8,818 $ 3,764 $ 13,873 $ 9,686 Leaf segment operating income $ 53,626 $ 67,428 $ 123,867 $ 146,193 All Other operating loss ( 836 ) ( 1,258 ) ( 3,228 ) ( 6,161 ) Restructuring and asset impairment charges 1,504 89 1,625 416 Consolidated operating income $ 51,286 $ 66,081 $ 119,014 $ 139,616 Gain on debt retirement — — — 8,178 Gain on pension settlement 373 — 373 — Interest expense, net 36,566 32,913 104,255 101,935 Income before income taxes and other items $ 15,093 $ 33,168 $ 15,132 $ 45,859 (1) Represents the other expense, net caption within the condensed consolidated statements of operations. 23 Three Months Ended December 31, 2025 2024 Leaf All Other Total Leaf All Other Total Depreciation and amortization $ 4,899 $ 381 $ 5,280 $ 4,457 $ 389 $ 4,846 Capital expenditures 4,592 719 5,311 4,761 560 5,321 Nine Months Ended December 31, 2025 2024 Leaf All Other Total Leaf All Other Total Depreciation and amortization $ 14,512 $ 1,135 $ 15,647 $ 13,864 $ 1,174 $ 15,038 Capital expenditures 12,467 1,723 14,190 13,031 1,583 14,614 December 31, 2025 December 31, 2024 March 31, 2025 Leaf All Other Total Leaf All Other Total Leaf All Other Total Assets $ 1,884,453 $ 34,638 $ 1,919,091 $ 1,683,709 $ 36,475 $ 1,720,184 $ 1,466,400 $ 37,443 $ 1,503,843 Trade and other receivables, net 268,149 363 268,512 343,706 453 344,159 204,054 175 204,229 Investments in unconsolidated affiliates 95,097 6,503 101,600 90,695 6,563 97,258 90,238 6,690 96,928 20. S ubsequent Events Effective January 1, 2026, the investment limit of the Finacity Facility described in " Note 12. Securitized Receivables " was temporarily increased from $ 120,000 to $ 160,000 of trade receivables through May 31, 2026. 24