What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-14 compared with 2025-05-15 · 92 added, 77 removed, 165 unchanged (51% of the section changed)

5 unchanged sentences

Such factors include the following:

(1) the impact on business conditions in general, and on the demand for product in the aerospace and energy (or “A&E”) industries in particular, of the global economic outlook, including the continuation of military spending at or near current levels and the availability of capital and liquidity from banks, the financial markets and other providers of credit;

(1) the impact on business conditions in general, and on the demand for product in the aerospace and energy (or

“A&E”) industries in particular, of the global economic outlook, including the continuation of military spending at or near current levels and the availability of capital and liquidity from banks, the financial markets and other providers of credit;

(2) the future business environment, including capital and consumer spending;

8 unchanged sentences

(11) cyber and other security threats or disruptions faced by us, our customers or our suppliers and other partners;

(12) our exposure to additional risks as a result of our international business, including risks related to geopolitical and economic factors, suppliers, laws and regulations;

(12) our exposure to additional risks as a result of our international business, including risks related to geopolitical and economic factors, suppliers, laws and regulatory compliance, and trade measures such as significant tariffs - including recently announced U.S.

tariffs on aluminum and steel;

(13) the ability to maintain a qualified workforce;

3 unchanged sentences

(17) investigations, claims, disputes, enforcement actions, litigation and/or other legal proceedings;

(18) extraordinary or force majeure events affecting the business or operations of our business;

and (19) significant tariffs and other trade measures, including recently announced U.S.

tariffs on aluminum and steel.

and (18) extraordinary or force majeure events affecting the business or operations of our business.

The Company engages in the production of forgings and machined components primarily for the A&E and commercial space markets.

17 unchanged sentences

Forging & Manufacturing, an Italian joint stock company and wholly-owned subsidiary of the Company (“CBlade”), for cash consideration.

As a result of the sale transaction, the Company’s financial statements have been prepared with the net assets of CBlade presented as held for sale as of September 30, 2024, and the results of operations and cash flows of CBlade have been presented as discontinued operations for the six months ended March 31, 2025 and 2024.

All historical statements, amounts and related

disclosures have been retrospectively adjusted to conform to this presentation.

All historical statements, amounts and related disclosures have been retrospectively adjusted to conform to this presentation.

Refer to Note 2 — Discontinued Operations of the notes to unaudited consolidated condensed financial statements.

Backlog of Orders

SIFCO’s total backlog as of March 31, 2025 was $129.2 million, of which $98.9 million are anticipated to be complete within the next 12 months, compared with total backlog of $122.9 million as of March 31, 2024.

SIFCO’s total backlog as of June 30, 2025 was $130.4 million, of which $92.5 million are anticipated to be complete within the next 12 months, compared with total backlog of $123.2 million as of June 30, 2024.

Orders may be subject to modification or cancellation by the customer with limited charges.

1 unchanged sentence

Backlog information may not be indicative of future sales.

Three Months Ended March 31, 2025 compared with Three Months Ended March 31, 2024

Net sales comparative information for the second quarter of fiscal 2025 and 2024 is as follows:

Three Months Ended June 30, 2025 compared with Three Months Ended June 30, 2024

Net sales comparative information for the third quarter of fiscal 2025 and 2024 is as follows:

(Dollars in millions) Three Months Ended

March 31, Increase/ (Decrease)

June 30, Increase/ (Decrease)

Aerospace components for:

5 unchanged sentences

Total $ 22.1 $ 22.0 $ 0.1

Net sales for the second quarter of fiscal 2025 decreased $1.5 million to $19.0 million, compared with $20.5 million in the comparable period of fiscal 2024.

Net sales for the third quarter of fiscal 2025 increased $0.1 million to $22.1 million, compared with $22.0 million in the comparable period of fiscal 2024.

Fixed wing sales increased $2.6 million compared with the same period last year, primarily due to higher demand across most programs.

Rotorcraft sales declined compared with the same period last year primarily due to the timing of orders in the H60 and Osprey V22 programs.

Commercial space products decreased by $3.4 million year-over-year due to delays in commercial launch programs.

Net sales for the energy components for power generation units increased slightly by $0.3 million.

Commercial products and other revenue decreased $1.4 million compared with the same period last year mostly due to the timing of orders related to munitions programs.

Commercial net sales and military net sales were 43.7% and 56.3%, respectively, of total net sales in the second quarter of fiscal 2025, compared with 55.3% and 44.7%, respectively, in the comparable period in fiscal 2024.

Commercial net sales decreased $3.0 million to $8.3 million in the second quarter of fiscal 2025, compared with $11.3 million in the comparable period of fiscal 2024, primarily due to delays in the commercial space market, partially offset by higher demand in the commercial aerospace market.

Military net sales increased by $1.5 million to $10.7 million in the second quarter of fiscal 2025, compared with $9.2 million in the comparable period of fiscal 2024, primarily due to increased demand across multiple programs.

Rotorcraft sales declined compared with the same period last year primarily due to the timing of orders in the H60 program.

Commercial space products decreased by $2.7 million year-over-year due to reduced procurement activity in the commercial space market.

One key customer, significantly scaled back orders as they manage excess inventory.

Net sales for the energy components for power generation units decreased slightly by $0.2 million.

Commercial products and other revenue increased $0.7 million compared with the same period last year mostly due to the timing of orders related to munitions programs.

Commercial net sales and military net sales were 39.3% and 60.7%, respectively, of total net sales in the third quarter of fiscal 2025, compared with 53.9% and 46.1%, respectively, in the comparable period in fiscal 2024.

Commercial net sales decreased $3.2 million to $8.7 million in the third quarter of fiscal 2025, compared with $11.9 million in the comparable period of fiscal 2024, primarily due to reduced procurement activity in the commercial space market, partially offset by higher demand in the commercial aerospace market.

Military net sales increased by $3.3 million to $13.4 million in the third quarter of fiscal 2025, compared with $10.1 million in the comparable period of fiscal 2024, primarily due to increased demand across multiple programs.

Cost of Goods Sold

Cost of goods sold (“COGS”) decreased by $1.6 million, or (8.2)%, to $17.5 million, or 91.7% of net sales, during the second quarter of fiscal 2025, compared with $19.0 million, or 92.7% of net sales, in the comparable period of fiscal 2024.

The decrease is primarily due to lower sales in the commercial space market and munitions programs, partially offset by higher sales volume and favorable mix of products sold in our fixed wing aircraft sector.

Gross profit increased slightly by $0.1 million to $1.6 million in the second quarter of fiscal 2025, compared with $1.5 million gross profit in the comparable period of fiscal 2024, primarily due to the decreases in sales volume and COGS discussed above and the impact of favorable mix of products sold.

Cost of goods sold (“COGS”) decreased by $3.1 million, or 16.2%, to $16.2 million, or 73.3% of net sales, during the third quarter of fiscal 2025, compared with $19.3 million, or 87.7% of net sales, in the comparable period of fiscal 2024.

The decrease is primarily due to the Employee Retention Credit (“ERC”) benefit of $2.4 million recognized and favorable mix of products sold in our fixed wing aircraft sector, partially offset by sales volume.

Gross profit increased by $3.2 million to $5.9 million in the third quarter of fiscal 2025, compared with $2.7 million gross profit in the comparable period of fiscal 2024, primarily due to the ERC benefit of $2.4 million.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses were $2.4 million, or 12.4% of net sales, during the second quarter of fiscal 2025, compared with $2.8 million, or 13.7% of net sales, in the comparable period of fiscal 2024.

The decrease in SG&A expenses was primarily due to lower employee-related expenses attributable to previous headcount reductions, as well as reduced spend related to cost reduction initiatives and legal and strategic alternative expenses.

Other/General

The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreements in the second quarter of fiscal 2025 and 2024:

Selling, general and administrative (“SG&A”) expenses were $2.6 million, or 11.9% of net sales, during the third quarter of fiscal 2025, compared with $2.6 million, or 11.7% of net sales, in the comparable period of fiscal 2024.

While total SG&A expenses remained flat, the composition of costs changed year-over-year.

The third quarter of fiscal 2025 included a $0.5 million benefit recognized from the ERC and lower employee-related expenses resulting from reduced headcount due to deferred backfill of certain positions.

These decreases were partially offset by approximately $0.7 million in legal and professional fees related to the ERC claim process.

In addition, SG&A expenses in the prior-year period included a one-time credit of $0.6 million from a vendor pertaining to the fiscal 2023 cybersecurity incident and a $0.4 million severance cost, which did not recur in the current period.

Interest Expense, Net

The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreements in the third quarter of fiscal 2025 and 2024:

(Dollars in millions) Weighted Average

Interest Rate

Three Months Ended March 31,

Three Months Ended June 30,

Weighted Average

Outstanding Balance

Three Months Ended March 31,

Three Months Ended June 30,

2025 2024 2025 2024

3 unchanged sentences

Promissory note (related party) — % 13.3 % $ — $ 3.3

The Company’s effective tax rate through the second quarter of fiscal 2025 was (5.9)%, compared with (0.2)% for the same period of fiscal 2024.

The decrease in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2025 compared with the same period of fiscal 2024.

The Company’s effective tax rate through the third quarter of fiscal 2025 was 1.2%, compared with 0.0% for the same period of fiscal 2024.

The increase in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2025 compared with the same period of fiscal 2024.

The effective tax rate differs from the U.S.

2 unchanged sentences

statutory tax rate.

Loss from Continuing Operations

Loss from continuing operations was $1.2 million during the second quarter of fiscal 2025, compared with $2.2 million in the comparable period of fiscal 2024 due to gross margins improvements and lower SG&A expenses discussed above, as well as lower interest expense due to lower average debt outstanding.

Six Months Ended March 31, 2025 compared with Six Months Ended March 31, 2024

Net sales comparative information for the first six months of fiscal 2025 and 2024 is as follows:

(Dollars in millions) Six Months Ended

March 31, Increase/ (Decrease)

Income (Loss) from Continuing Operations

Income from continuing operations was $3.3 million during the third quarter of fiscal 2025, compared with a loss from continuing operations of $0.9 million in the comparable period of fiscal 2024.

The improvement was primarily driven by a net benefit recognized of $2.7 million related to the ERC, as well as higher gross margins, lower SG&A expenses discussed above, and reduced interest expense due to lower average debt outstanding.

Nine Months Ended June 30, 2025 compared with Nine Months Ended June 30, 2024

Net sales comparative information for the first nine months of fiscal 2025 and 2024 is as follows:

(Dollars in millions) Nine Months Ended

June 30, Increase/ (Decrease)

Aerospace components for:

5 unchanged sentences

Total $ 62.0 $ 58.0 $ 4.0

Net sales for the first six months of fiscal 2025 increased $3.9 million to $39.9 million, compared with $36.0 million in the comparable period of fiscal 2024.

Net sales for the first nine months of fiscal 2025 increased $4.0 million to $62.0 million, compared with $58.0 million in the comparable period of fiscal 2024.

Fixed wing sales increased $9.7 million compared with the same period last year, primarily due to higher demand across most programs.

Rotorcraft sales declined $1.0 million compared with the same period last year primarily due to the timing of orders in the H60 and Osprey V22 programs.

Commercial space products decreased by $2.3 million year-over-year due to delays in commercial launch programs.

Rotorcraft sales declined $1.3 million compared with the same period last year primarily due to the timing of orders in the H60 program.

Commercial space products decreased by $5.0 million year-over-year due to reduced procurement activity in the commercial space market.

One key customer, significantly scaled back orders as they manage excess inventory.

Net sales for the energy components for power generation units increased by $0.4 million due to growth in the steam turbine markets.

Commercial products and other revenue decreased $0.6 million compared with the same period last year mostly due to the timing of orders related to munitions programs.

Commercial net sales were 48.8% of total net sales and military net sales were 51.2% of total net sales in the first six months of fiscal 2025, compared with 52.8% and 47.2%, respectively, in the comparable period in fiscal 2024.

Commercial net sales increased $0.5 million to $19.5 million in the first six months of fiscal 2025, compared with $19.0 million in the comparable period of fiscal 2024, primarily due to the continued rebound in the aerospace market.

Military net sales increased by $3.4 million to $20.4 million in the first six months of fiscal 2025, compared with $17.0 million in the comparable period of fiscal 2024, primarily due to increased demand across most programs.

Commercial products and other revenue increased $0.2 million compared with the same period last year mostly due to the timing of orders related to munitions programs.

Commercial net sales and military net sales were 45.4% and 54.6%, respectively, of total net sales in the first nine months of fiscal 2025, compared with 53.2% and 46.8%, respectively, in the comparable period in fiscal 2024.

Commercial net sales decreased $2.7 million to $28.2 million in the first nine months of fiscal 2025, compared with $30.9 million in the comparable period of fiscal 2024, primarily due to reduced procurement activity in the commercial space market due to the reasons noted above.

Military net sales increased by $6.7 million to $33.8 million in the first nine months of fiscal 2025, compared with $27.1 million in the comparable period of fiscal 2024, primarily due to increased demand across most programs.

Cost of Goods Sold

COGS increased by $2.4 million, or 6.8%, to $37.4 million, or 93.7% of net sales, during the first six months of fiscal 2025, compared with $35.0 million, or 97.4% of net sales, in the comparable period of fiscal 2024.

The increase is primarily due to higher sales volume and favorable mix of products sold.

Gross profit increased $1.6 million to $2.5 million in the first six months of fiscal 2025, compared with $0.9 million gross profit in the comparable period of fiscal 2024, primarily due to the increases in sales volume and COGS discussed above and the impact of favorable mix of products sold.

COGS decreased by $0.7 million, or (1.3)%, to $53.6 million, or 86.5% of net sales, during the first nine months of fiscal 2025, compared with $54.3 million, or 93.7% of net sales, in the comparable period of fiscal 2024.

The increase is primarily due to higher sales volume, partially offset by a $2.4 million ERC benefit recognized.

Gross profit increased $4.7 million to $8.4 million in the first nine months of fiscal 2025, compared with $3.7 million gross profit in the comparable period of fiscal 2024.

The increase was primarily driven by higher sales volume and improved pricing, as well as a $2.4 million ERC benefit recognized.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses were $5.2 million, or 13.0% of net sales, during the first six months of fiscal 2025, compared with $5.9 million, or 16.5% of net sales, in the comparable period of fiscal 2024.

The decrease in SG&A expenses was primarily due to lower general operating expenses, particularly employee-related costs and legal and strategic alternative costs.

Other/General

The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreement in the first six months of both fiscal 2025 and 2024:

Selling, general and administrative (“SG&A”) expenses were $7.8 million, or 12.6% of net sales, during the first nine months of fiscal 2025, compared with $8.5 million, or 14.6% of net sales, in the comparable period of fiscal 2024.

The decrease in SG&A expenses was primarily due to lower employee-related expenses, resulting from reduced headcount due to deferred backfill of certain positions and a $0.5 million benefit recognized from ERC.

These decreases were partially offset by approximately $0.7 million in legal and professional fees related to the ERC submission process.

In addition, SG&A expenses in the prior-year period included a one-time credit of $0.6 million from a vendor pertaining to the fiscal 2023 cybersecurity incident and $0.4 million severance cost, which did not recur in the current period.

Interest Expense, Net

The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreement in the first nine months of both fiscal 2025 and 2024:

(Dollars in millions) Weighted Average

Interest Rate

Six Months Ended March 31,

Nine Months Ended June 30,

Weighted Average

Outstanding Balance

Six Months Ended March 31,

Nine Months Ended June 30,

2025 2024 2025 2024

3 unchanged sentences

Promissory note (related party) — % 8.9 % $ — $ 3.3

The Company’s effective tax rate through the first six months of fiscal 2025 was (2.2)%, compared with (0.2)% for the same period of fiscal 2024.

The Company’s effective tax rate through the first nine months of fiscal 2025 was (37.2)%, compared with (0.2)% for the same period of fiscal 2024.

The decrease in the effective rate was primarily attributable to changes in jurisdictional mix of income in fiscal 2025 compared with the same period of fiscal 2024.

4 unchanged sentences

Loss from Continuing Operations

Loss from continuing operations was $3.7 million during the first six months of fiscal 2025, compared with $6.3 million in the comparable period of fiscal 2024 due to higher sales volumes and gross margins improvements coupled with lower SG&A expenses and lower interest expense attributable to lower average debt outstanding during the period.

Loss from continuing operations was $0.4 million during the first nine months of fiscal 2025, compared with $7.2 million in the comparable period of fiscal 2024 due to higher sales volumes and gross margins improvements coupled with lower SG&A expenses, lower interest expense attributable to lower average debt outstanding during the period and the net benefit recognized of $2.7 million related to ERC.

Non-GAAP Financial Measures

4 unchanged sentences

Although the Company uses EBITDA and Adjusted EBITDA for the reasons noted above, the use of these non-GAAP financial measures as analytical tools has limitations.

Therefore, reviewers of the Company’s financial information should not consider them in isolation, or as a substitute for analysis of the Company’s results of operations as reported in accordance with GAAP.

Therefore, reviewers of the Company’s financial information should not consider them in isolation, or as a

substitute for analysis of the Company’s results of operations as reported in accordance with GAAP.

Some of these limitations include:

9 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

Dollars in thousands 2025 2024 2025 2024

Net loss $ (1,392) $ (1,590) $ (3,708) $ (5,013)

(Loss) income from discontinued operations, net of tax (70) 642 36 1,289

Loss from continuing operations (1,322) (2,232) (3,744) (6,302)

Net income (loss) $ 3,408 $ 72 $ (300) $ (4,940)

Income from discontinued operations, net of tax 106 989 142 2,279

Income (loss) from continuing operations 3,302 (917) (442) (7,219)

Depreciation and amortization expense 1,541 1,195 3,912 3,607

Interest expense, net 428 818 897 1,160

Interest (income) expense, net 391 905 1,289 2,065

Income tax expense 41 — 120 11

1 unchanged sentence

Foreign currency exchange loss (gain), net (1)

Other expense, net (2)

Other (income) expense, net (2)

(479) 99 (404) 253

Gain on disposal of assets (3)

Non-recurring severance expense adjustments (4)

— 435 (19) 435

Equity compensation (4)

47 72 135 243

Pension settlement/curtailment benefit (5)

Transaction-related expense adjustments (6)

2 unchanged sentences

IT incident costs, net (8)

— (628) — (605)

Strategic alternative expense (9)

1 unchanged sentence

(1) Represents the gain or loss from changes in the exchange rates between the functional currency and the foreign currency in which the transaction is denominated.

(2) Represents miscellaneous non-operating income or expense, such as pension costs.

(2) Represents miscellaneous non-operating income or expense, such as pension costs or other income from ERC.

(3) Represents the difference between the proceeds from the sale of operating equipment and the carrying value shown on the Company's books.

(4) Represents the equity-based compensation expense recognized by the Company under the 2016 Plan due to granting of awards, awards not vesting and/or forfeitures and executive severance.

(5) Represents expense incurred by its defined benefit pension plans related to settlement of pension obligations.

(6) Represents credits related to transaction-related legal fees incurred primarily in connection with the unsuccessful attempt in which the Company was the acquisition target.

3 unchanged sentences

Liquidity and Capital Resources

Cash and cash equivalents were $1.9 million and $1.7 million as of March 31, 2025 and September 30, 2024, respectively.

Cash and cash equivalents were $2.0 million and $1.7 million as of June 30, 2025 and September 30, 2024, respectively.

A nominal amount of the Company’s cash and cash equivalents were in the possession of its non-U.S.

2 unchanged sentences

Historically, the main sources of liquidity of the Company have been cash flows from operations and borrowings under our debt agreements.

As of March 31, 2025, the Company was not party to any off-balance sheet arrangements that have had or are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources.

As of June 30, 2025, the Company was not party to any off-balance sheet arrangements that have had or are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources.

The cash requirements for the upcoming fiscal year relate to payments on our outstanding debt and leases, operating and capital purchase commitments, and expected contributions to our defined benefit and contribution plans.

6 unchanged sentences

For details regarding the sale of CBlade, refer to Note 2 — Discontinued Operations of the notes to unaudited consolidated condensed financial statements.

We believe that our existing cash will be sufficient to finance our continued operations, planned capital expenditures and the additional expenses that we expect to incur during the next 12 months.

We believe that our existing cash and available credit lines will be sufficient to finance our continued operations, planned capital expenditures and the additional expenses that we expect to incur during the next 12 months.

In order to support and achieve our future growth plans, we may need or advantageously seek to obtain additional funding through equity or debt financing.

5 unchanged sentences

Operating Activities

The Company’s operating activities used $1.0 million of cash in the first six months of fiscal 2025, primarily due to net operating loss from continuing operations of $3.7 million partially offset by depreciation and amortization of $2.4 million and change in inventory valuation accounts of $0.3 million and LIFO effect of $0.1 million.

The uses of cash from working capital of $0.1 million was primarily due to higher prepaid expenses attributable to deferred financing costs related to the refinanced revolver and customer deposits, and decreases in accrued liabilities and accounts payable due to timing of payments, partially offset by decreases in accounts receivable.

The Company’s operating activities used $2.9 million of cash in the first six months of fiscal 2024, primarily due to net operating loss of $6.3 million partially offset by depreciation and amortization of $2.4 million and change in inventory valuation accounts of $0.5 million and LIFO effect of $0.4 million.

The uses of cash from working capital of $0.4 million was primarily due to increases in inventory of $4.4 million, partially offset by accounts receivable and prepaid expense reductions of $1.0 million and $0.4 million, respectively, and an increase in accounts payable of $2.9 million.

The Company’s operating activities used $0.6 million of cash in the first nine months of fiscal 2025, primarily due to net operating loss from continuing operations of $0.4 million partially offset by depreciation and amortization of $3.9 million and change in inventory valuation accounts of $0.5 million and LIFO effect of $0.6 million.

The uses of cash from working capital of $4.3 million was primarily due to decreases in accrued liabilities and accounts payable due to timing of payments, partially offset by decreases in accounts receivable.

The Company’s operating activities used $3.5 million of cash in the first nine months of fiscal 2024, primarily due to net operating loss of $7.2 million partially offset by depreciation and amortization of $3.6 million and change in inventory valuation accounts of $0.3 million and LIFO effect of $0.8 million.

The uses of cash from working capital of $2.3 million was primarily due to increases in inventory of $4.5 million and account receivables of $2.3 million, partially offset by prepaid expense reductions and $0.8 million, and an increase in accounts payable of $0.9 million.

The increase in inventory was primarily due to increase in raw material and work in process to meet heightened customer demand.

2 unchanged sentences

Investing Activities

During the first six months of fiscal 2025 and 2024, cash used for investing activities was $0.3 million and $1.2 million, respectively, attributable to capital expenditures.

Capital commitments as of March 31, 2025 were $0.2 million.

The Company anticipates that the remaining total fiscal 2025 capital expenditures will be within the range of $1.5 million to $2.0 million and will relate principally to the further enhancement of production and product offering capabilities and drive operating cost reductions.

During the first nine months of fiscal 2025 and 2024, cash used for investing activities was $0.3 million and $1.7 million, respectively, attributable to capital expenditures.

Capital commitments as of June 30, 2025 were $0.1 million.

anticipates that the remaining total fiscal 2025 capital expenditures will be within the range of $0.5 million to $1.0 million and will relate principally to the further enhancement of production and product offering capabilities and drive operating cost reductions.

Financing Activities

Cash used in financing activities was $13.1 million in the first six months of fiscal 2025, compared with $4.0 million provided by financing activities in the first six months of fiscal 2024.

The year-over-year decrease was primarily related to higher repayments on our revolving credit line and the debt refinancing during fiscal 2025.

Refer to Note 6 — Debt of the notes to unaudited consolidated condensed financial statements for details regarding our financing activities during the six months ended March 31, 2025.

Cash used in financing activities was $13.4 million in the first nine months of fiscal 2025, compared with $6.2 million provided by financing activities in the first nine months of fiscal 2024.

The year-over-year decrease in cash from financing was primarily related to higher repayments on our revolving credit line and the debt refinancing during fiscal 2025.

Refer to Note 6 — Debt of the notes to unaudited consolidated condensed financial statements for details regarding our financing activities during the nine months ended June 30, 2025.

Future cash flows from the Company’s operations may be used to pay down outstanding debt amounts.

3 unchanged sentences

Recent Accounting Standards

No recent accounting standards were adopted during the six months ended March 31, 2025 .

No recent accounting standards were adopted during the nine months ended June 30, 2025 .

Refer to Note 1 — Summary of Significant Accounting Policies for further detail.

1 unchanged sentence

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis