What changed in this filing

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Item 1. Financial Statements

2025-08-07 compared with 2025-05-01 · 122 added, 77 removed, 516 unchanged (28% of the section changed)

3 unchanged sentences

(In millions, except shares and per share data) Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Net sales $ 318.6 $ 331.0 $ 608.6 $ 642.0

5 unchanged sentences

Interest expense, net ( 2.2 ) ( 2.5 ) ( 4.5 ) ( 4.8 )

Net foreign currency transaction loss ( 0.2 ) ( 0.2 )

Other income, net 0.1 0.1

Net foreign currency transaction (loss) gain ( 0.8 ) 0.7 ( 1.0 ) 0.5

Other (expense) income, net ( 0.3 ) 0.1 ( 0.2 ) 0.2

Income before income taxes 27.3 36.9 44.5 72.0

11 unchanged sentences

(In millions) Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Net income $ 20.2 $ 27.9 $ 33.3 $ 56.3

1 unchanged sentence

Foreign currency translation adjustments (net of related tax benefit (expense) of $ 1.7 , $ 0.1 , $ 1.9 and $( 0.1 ), respectively)

23.8 ( 7.1 ) 39.3 ( 15.3 )

Pension and postretirement medical benefits (net of related tax expense of $ 0.0 , $ 0.0 , $ 0.0 and $ 0.0 , respectively)

Derivative financial instruments (net of related tax benefit (expense) of $ 0.0 and $( 0.3 ), respectively)

Derivative financial instruments (net of related tax benefit of $ 0.1 , $ 0.1 , $ 0.1 and $ 0.4 , respectively)

( 0.1 ) 0.3 ( 0.2 ) 1.3

Total other comprehensive income (loss), net of tax 23.8 ( 6.8 ) 39.1 ( 14.0 )

5 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(In millions, except shares and per share data) March 31,

(In millions, except shares and per share data) June 30,

2025 December 31,

37 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions) Three Months Ended

(In millions) Six Months Ended

OPERATING ACTIVITIES

13 unchanged sentences

Other assets and liabilities ( 18.3 ) ( 27.3 )

Net cash (used in) provided by operating activities ( 0.4 ) 2.9

Net cash provided by operating activities 22.1 21.5

INVESTING ACTIVITIES

17 unchanged sentences

SUPPLEMENTAL CASH FLOW INFORMATION

Three Months Ended

Six Months Ended

(In millions) 2025 2024

3 unchanged sentences

Operating cash flows from operating leases 11.9 9.7

Financing cash flows from financing leases 0.1 —

Lease assets obtained in exchange for new operating lease liabilities 7.0 12.8

27 unchanged sentences

Balance, March 31, 2025 18,703,285 $ 7.0 $ 57.6 $ 617.2 $ ( 57.4 ) $ 624.4 $ 1.7 $ 626.1

Net income — — 20.2 — 20.2 — 20.2

Other comprehensive income — — — 23.8 23.8 — 23.8

Issue stock for directors, employee benefit and stock plans, net of related tax withholdings of 3,925 shares

8,865 — ( 0.3 ) — — ( 0.3 ) — ( 0.3 )

Share-based compensation — 2.6 — — 2.6 — 2.6

Repurchases of common stock ( 179,824 ) — ( 13.4 ) — — ( 13.4 ) — ( 13.4 )

Dividends paid $ 0.295 per common share

— — ( 5.4 ) — ( 5.4 ) — ( 5.4 )

Other — — — — — 0.1 0.1

Balance, June 30, 2025 18,532,326 $ 7.0 $ 46.5 $ 632.0 $ ( 33.6 ) $ 651.9 $ 1.8 $ 653.7

Tennant Company Shareholders

17 unchanged sentences

Balance, March 31, 2024 19,006,838 $ 7.1 $ 86.5 $ 570.5 $ ( 49.5 ) $ 614.6 $ 1.3 $ 615.9

Net income — — 27.9 — 27.9 — 27.9

Other comprehensive income — — — ( 6.8 ) ( 6.8 ) — ( 6.8 )

Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases of 5,132 shares

21,337 — 0.1 — — 0.1 — 0.1

Share-based compensation — 2.1 — — 2.1 — 2.1

Repurchases of common stock ( 77,514 ) — ( 8.0 ) — — ( 8.0 ) — ( 8.0 )

Dividends paid $ 0.265 per common share

— — ( 5.3 ) — ( 5.3 ) — ( 5.3 )

Balance, June 30, 2024 18,950,661 $ 7.1 $ 80.7 $ 593.1 $ ( 56.3 ) $ 624.6 $ 1.3 $ 625.9

See accompanying notes to consolidated financial statements.

26 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Americas $ 213.5 $ 227.8 $ 410.8 $ 443.4

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Equipment $ 197.0 $ 210.7 $ 369.8 $ 400.5

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Sales direct to consumer $ 216.5 $ 229.7 $ 421.6 $ 451.1

14 unchanged sentences

The change in our sales incentive accrual balance was as follows:

Three Months Ended

Six Months Ended

Beginning balance $ 15.6 $ 21.2

8 unchanged sentences

The change in the deferred revenue balance was as follows:

Three Months Ended

Six Months Ended

Beginning balance $ 20.6 $ 10.3

3 unchanged sentences

Ending balance $ 25.4 $ 12.5

As of March 31, 2025, $ 10.8 million and $ 11.7 million of deferred revenue was reported in other current liabilities and other liabilities, respectively, on our consolidated balance sheets.

As of June 30, 2025, $ 12.0 million and $ 13.4 million of deferred revenue was reported in other current liabilities and other liabilities, respectively, on our consolidated balance sheets.

Of these amounts, we expect to recognize the following approximate amounts in net sales in the following periods:

4 unchanged sentences

Restructuring Actions

During the three months ended March 31, 2025, we incurred restructuring expenses as part of our ongoing global reorganization efforts.

During the three and six months ended June 30, 2025, we incurred restructuring expenses as part of our ongoing global reorganization efforts.

The following pre-tax restructuring charges were included in selling and administrative expense in the consolidated statements of income.

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Severance-related costs $ ( 0.3 ) $ 0.6 $ 1.2 $ 0.6

3 unchanged sentences

A reconciliation of the beginning and ending liability balances for severance-related costs is as follows:

Three Months Ended

Six Months Ended

Beginning balance $ 8.6 $ 2.4

5 unchanged sentences

On February 29, 2024, we acquired 100 % of M&F Management and Financing GmbH ("M&F"), the parent company of TCS EMEA GmbH ("TCS"), as we seek to accelerate growth in the EMEA region.

The total purchase price of the acquisition was $ 34.9 million.

Based in Austria, TCS was Tennant Company's largest Central and Eastern Europe distributor.

The acquisition gives Tennant a knowledgeable and experienced sales force and an established direct channel into countries including Romania, Hungary, Czech Republic, and Slovakia, along with an expanded network in Austria,

Switzerland, Poland, and other nations in the region, as well as the Middle East and Africa.

The acquisition gives Tennant a knowledgeable and experienced sales force and an established direct channel into countries

including Romania, Hungary, Czech Republic, and Slovakia, along with an expanded network in Austria, Switzerland, Poland, and other nations in the region, as well as the Middle East and Africa.

The pro forma impact of this acquisition is immaterial to our operations.

The purchase price was allocated based on the estimated fair value of assets acquired and liabilities assumed at the date of the acquisition.

The following table summarizes the fair value measurement of the assets acquired and liabilities assumed:

Components of purchase price:

Cash paid $ 31.0

Settlement of preexisting transactions 3.9

Total purchase price 34.9

Other current assets 8.9

Intangible assets subject to amortization

Customer lists 13.2

Other assets 5.7

Total identifiable assets acquired 33.8

Current liabilities ( 1.6 )

Long-term liabilities ( 6.7 )

Total identifiable liabilities assumed ( 8.3 )

Net assets acquired 25.5

Goodwill $ 9.4

Included in the total purchase price is cash paid of $ 31.0 million and the settlement of $ 3.9 million of preexisting transactions.

The goodwill is not deductible for income tax purposes.

The useful lives of the acquired intangible assets is 3 months and 10 years for backlog and customer lists, respectively, and are being amortized on a straight-line basis.

For more information, refer to Note 5, Acquisitions and Divestitures, to the Consolidated Financial Statements in the Company’s Form 10-K for the year ended December 31, 2024.

Inventories are valued at the lower of cost or net realizable value and consisted of the following:

16 unchanged sentences

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the three months ended March 31, 2025 were as follows:

The changes in the carrying amount of goodwill for the six months ended June 30, 2025 were as follows:

Goodwill Accumulated

2 unchanged sentences

Foreign currency fluctuations 25.1 ( 3.5 ) 21.6

Balance as of March 31, 2025

Balance as of June 30, 2025

$ 243.2 $ ( 36.0 ) $ 207.2

1 unchanged sentence

Customer Lists Trade Names Technology Total

Balance as of March 31, 2025

Balance as of June 30, 2025

Original cost $ 173.8 $ 31.1 $ 16.5 $ 221.4

7 unchanged sentences

Weighted average original life (in years) 15 11 11

Amortization expense on intangible assets for the three months ended March 31, 2025 and 2024 was $ 3.4 million and $ 3.9 million, respectively.

Amortization expense on intangible assets for the three and six months ended June 30, 2025 was $ 3.4 million and $ 6.8 million, respectively.

Amortization expense on intangible assets for the three and six months ended June 30, 2024 was $ 3.9 million and $ 7.8 million, respectively.

Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets for each of the five succeeding years and thereafter is as follows:

24 unchanged sentences

• a covenant restricting us from paying dividends or repurchasing stock if, after giving effect to such payments and assuming no default exists or would result from such payment, our leverage ratio is greater than 2.50 to 1, in such case limiting such payments to the greater of 10% of consolidated total assets and $ 100.0 million during any fiscal year.

We were in compliance with the above financial covenants as of March 31, 2025.

We were in compliance with the above financial covenants as of June 30, 2025.

Debt Outstanding

Debt outstanding consisted of the following:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Credit facility borrowings:

6 unchanged sentences

Long-term debt $ 213.4 $ 198.2

(a) As of March 31, 2025, the Company was required to repay $ 0.5 million of finance lease liabilities, and no amounts in outstanding credit facility borrowings, over the next 12 months.

As of March 31, 2025, we had outstanding borrowings of $ 212.5 million under our revolving credit facility.

(a) As of June 30, 2025, the Company was required to repay $ 0.4 million of finance lease liabilities, and no amounts in outstanding credit facility borrowings, over the next 12 months.

As of June 30, 2025, we had outstanding borrowings of $ 212.5 million under our revolving credit facility.

We had letters of credit and bank guarantees outstanding in the amount of $ 3.2 million, leaving approximately $ 434.3 million of unused borrowing capacity on our revolving facility.

Commitment fees on unused lines of credit for the three months ended March 31, 2025 were $ 0.2 million.

Commitment fees on unused lines of credit for the six months ended June 30, 2025 were $ 0.3 million.

The overall weighted average cost of debt was approximately 5.7 % and net of related cross-currency swap instruments and fixed rate interest rate swap instruments was approximately 4.4 %.

5 unchanged sentences

The changes in warranty reserves were as follows:

Three Months Ended

Six Months Ended

Beginning balance $ 10.5 $ 11.1

12 unchanged sentences

These contracts do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged.

At March 31, 2025 and December 31, 2024, the notional amounts of foreign currency forward contracts outstanding not designated as hedging instruments were $ 83.5 million and $ 70.2 million, respectively.

At June 30, 2025 and December 31, 2024, the notional amounts of foreign currency forward contracts outstanding not designated as hedging instruments were $ 89.2 million and $ 70.2 million, respectively.

Cash Flow Hedges

1 unchanged sentence

Fixed rate swaps are used to reduce our risk of the possibility of increased interest costs.

We entered into an aggregate $ 120.0 million notional amount of interest rate swaps effective December 1, 2022, that exchange a variable rate of interest for a fixed rate of interest of 4.076 %.

We entered into an aggregate $ 120.0 million notional amount

of interest rate swaps effective December 1, 2022, that exchange a variable rate of interest for a fixed rate of interest of 4.076 %.

These interest rate swaps are designated as cash flow hedges.

5 unchanged sentences

These cross-currency swaps are designated as fair value hedges.

As of March 31, 2025 and December 31, 2024, these cross-currency swaps included € 75.0 million of total notional value.

As of March 31, 2025, the aggregated scheduled interest payments over the course of the loan and related swaps amounted to € 4.7 million.

As of June 30, 2025 and December 31, 2024, these cross-currency swaps included € 75.0 million of total notional value.

As of June 30, 2025, the aggregated scheduled interest payments over the course of the loan and related swaps amounted to € 4.1 million.

The scheduled maturity and principal payment of the loan of € 75.0 million is due in April 2027.

5 unchanged sentences

These cross-currency swaps are designated as net investment hedges.

As of March 31, 2025 and December 31, 2024, the cross-currency swaps included € 75.0 million of total notional value.

As of June 30, 2025 and December 31, 2024, the cross-currency swaps included € 75.0 million of total notional value.

These swaps are scheduled to mature in April 2027.

1 unchanged sentence

Derivative Assets Derivative Liabilities

Balance Sheet Location March 31, 2025 December 31, 2024 Balance Sheet Location March 31, 2025 December 31, 2024

Balance Sheet Location June 30, 2025 December 31, 2024 Balance Sheet Location June 30, 2025 December 31, 2024

Derivatives designated as cash flow hedges:

13 unchanged sentences

Amounts included in our consolidated balance sheets are recorded net where a right of offset exists with the same derivative counterparty.

As of March 31, 2025, we anticipate reclassifying $ 2.4 million of gains from accumulated other comprehensive loss to net income during the next 12 months.

As of June 30, 2025, we anticipate reclassifying $ 2.2 million of gains from accumulated other comprehensive loss to net income during the next 12 months.

The following table includes the amounts in the consolidated statements of income in which the effects of derivatives designated as hedging instruments are recorded:

3 unchanged sentences

Interest expense, net $ ( 2.2 ) $ — $ ( 2.5 ) $ 0.3

Net foreign currency transaction loss ( 0.2 ) — ( 0.2 ) —

Net foreign currency transaction (loss) gain ( 0.8 ) — 0.7 —

Derivatives designated as fair value hedges:

3 unchanged sentences

Interest expense, net $ ( 2.2 ) $ 0.3 $ ( 2.5 ) $ 0.2

Six Months Ended June 30,

Total Gain (Loss) on Hedging Total Gain on Hedging

Derivatives designated as cash flow hedges:

Interest expense, net $ ( 4.5 ) $ 0.1 $ ( 4.8 ) $ 0.6

Net foreign currency transaction (loss) gain ( 1.0 ) 0.5 —

Derivatives designated as fair value hedges:

Interest expense, net ( 4.5 ) 0.5 ( 4.8 ) 0.6

Net foreign currency transaction (loss) gain ( 1.0 ) ( 8.3 ) 0.5 1.9

Derivatives designated as net investment hedges:

Interest expense, net $ ( 4.5 ) $ 0.5 $ ( 4.8 ) $ 0.5

The effect of derivative instruments designated as hedges and derivative instruments not designated as hedges in our consolidated statements of income was as follows:

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Derivatives designated as cash flow hedges:

Net (loss) gain recognized in other comprehensive income (loss), net of tax (a)

Net gain (loss) recognized in other comprehensive income (loss), net of tax (a)

$ — $ 0.5 $ ( 0.4 ) $ 2.1

Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net 0.1 0.3

Net gain reclassified from accumulated other comprehensive income (loss) into income, net of tax, effective portion to interest expense, net — 0.3 0.1 0.6

Derivatives designated as fair value hedges:

Net gain recognized in other comprehensive income (loss), net of tax (a)

Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net 0.3 0.3

Net (loss) gain recognized in other comprehensive income (loss), net of tax (a)

( 2.6 ) 0.3 ( 1.9 ) 0.3

Net (loss) gain reclassified from accumulated other comprehensive income (loss) into income, net of tax, effective portion to interest expense, net ( 2.5 ) 0.2 ( 2.2 ) 0.5

Derivatives designated as net investment hedges:

Net loss recognized in other comprehensive income (loss), net of tax (a)

Net (loss) gain recognized in other comprehensive income (loss), net of tax (a)

( 2.3 ) 0.7 ( 4.2 ) 2.0

Net gain reclassified from accumulated other comprehensive loss into income, net of tax, ineffective portion to interest expense, net 0.2 0.2

Net gain reclassified from accumulated other comprehensive (loss) income into income, net of tax, ineffective portion to interest expense, net 3.0 0.3 3.2 0.5

Derivatives not designated as hedging instruments:

Net loss recognized in income (b)

Net (loss) gain recognized in income (b)

$ ( 5.6 ) $ 1.1 $ ( 8.1 ) $ 2.9

10 unchanged sentences

For equity instruments, the carrying amount will be adjusted to fair value through net income each period based upon observable transactions for identical or similar investments of the same issuer and monitored for impairment.

For debt instruments, the carrying amount will be adjusted to fair value each period through accumulated other comprehensive income (loss).

For debt instruments, the carrying amount will be adjusted to fair value each period through

accumulated other comprehensive income (loss).

The securities will be measured to fair value based on Level 3 inputs.

As of March 31, 2025 and December 31, 2024, the cost and market values of our debt and equity securities were as follows:

As of June 30, 2025 and December 31, 2024, the cost and market values of our debt and equity securities were as follows:

Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses

Balance as of March 31, 2025

Balance as of June 30, 2025

Available-for-sale debt securities $ 12.1 $ 12.3 $ 0.2 $ —

14 unchanged sentences

The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost).

framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.

The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.

The following is a brief description of those three levels:

3 unchanged sentences

Unobservable inputs that reflect the reporting entity’s own assumptions.

Our population of assets and liabilities subject to fair value measurements at March 31, 2025 was as follows:

Our population of assets and liabilities subject to fair value measurements at June 30, 2025 was as follows:

Value Level 1 Level 2 Level 3

4 unchanged sentences

Total assets 34.8 — 2.5 32.3

Foreign currency forward contracts 1.0 — 1.0 —

Cross-currency swaps 19.1 — 19.1 —

13 unchanged sentences

Further details regarding our derivative instruments are discussed in Note 10.

There were no transfers into or out of Level 3 investments in the periods ended March 31, 2025 and December 31, 2024.

The fair value and carrying value of total debt, including current portion, was $ 242.9 million and $ 213.8 million, respectively, as of March 31, 2025.

There were no transfers into or out of Level 3 investments in the periods ended June 30, 2025 and December 31, 2024.

The fair value and carrying value of total debt, including current portion, was $ 247.7 million and $ 213.8 million, respectively, as of June 30, 2025.

The fair value and carrying value of total debt, including current portion, was $ 235.9 million and $ 199.5 million, respectively, as of December 31, 2024.

The fair value was estimated using

Level 3 inputs based on the borrowing rates currently available to us for bank loans with similar terms and remaining maturities.

The fair value was estimated using Level 3 inputs based on the borrowing rates currently available to us for bank loans with similar terms and remaining maturities.

Commitments and Contingencies

1 unchanged sentence

We establish estimated liabilities when the associated costs related to uncertainties or guarantees become probable and can be reasonably estimated.

For the period ended March 31, 2025, no material changes have occurred in our estimated liabilities for self-insurance, litigation, environmental matters, guarantees, and indemnities, or relevant events and circumstances, from those disclosed in the Commitment and Contingencies footnote of the Notes to Consolidated Financial Statements within our annual report on Form 10-K for the year ended December 31, 2024.

For the period ended June 30, 2025, no material changes have occurred in our estimated liabilities for self-insurance, litigation, environmental matters, guarantees, and indemnities, or relevant events and circumstances, from those disclosed in the Commitment and Contingencies footnote of the Notes to Consolidated Financial Statements within our annual report on Form 10-K for the year ended December 31, 2024.

Shareholders' Equity

1 unchanged sentence

The changes in components of accumulated other comprehensive loss, net of tax, are as follows:

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Foreign Currency

9 unchanged sentences

(1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $ 0.5 million.

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Foreign Currency

16 unchanged sentences

We recognize potential accrued interest and penalties related to unrecognized tax benefits in income tax expense.

In addition to the liability of $ 6.1 million for unrecognized tax benefits as of March 31, 2025, there was approximately $ 0.7 million for accrued interest and penalties.

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of March 31, 2025 was $ 5.5 million.

In addition to the liability of $ 6.4 million for unrecognized tax benefits as of June 30, 2025, there was approximately $ 0.9 million for accrued interest and penalties.

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of June 30, 2025 was $ 5.3 million.

To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be revised and reflected as an adjustment of the income tax expense.

On July 4, 2025, the U.S.

1 "A bill to provide for reconciliation pursuant to Title II of H.

14," commonly referred to as the One Big Beautiful Bill Act (the “Act”).

The Act includes significant corporate tax provisions such as accelerated depreciation deductions, immediate expensing of domestic research costs, and modifications to the international tax framework.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

We are currently assessing the impact the Act will have on our consolidated financial statements.

Share-Based Compensation

Our share-based compensation plans are described in Note 18 of our annual report on Form 10-K for the year ended December 31, 2024.

During the three months ended March 31, 2025 and 2024, we recognized total share-based compensation expense of $ 3.2 million.

The total excess tax recognized for share-based compensation arrangements during the three months ended March 31, 2025 and 2024 was a tax benefit of $ 0.2 million and $ 2.4 million, respectively.

During the three months ended June 30, 2025 and 2024, we recognized total share-based compensation expense of $ 2.6 million and $ 2.1 million, respectively.

During the six months ended June 30, 2025 and 2024, we recognized total share-based compensation expense of $ 5.8 million and $ 5.3 million, respectively.

The total excess tax recognized for share-based compensation arrangements during the six months ended June 30, 2025 and 2024 was a tax benefit of $ 0.2 million and $ 3.0 million, respectively.

Income Attributable to Tennant Company Per Share

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Net income $ 20.2 $ 27.9 $ 33.3 $ 56.3

4 unchanged sentences

Diluted earnings per share $ 1.08 $ 1.45 $ 1.77 $ 2.94

Excluded from the dilutive securities presented above were options to purchase and shares to be paid out under share-based compensation plans totaling 83,269 and 37,508 shares of common stock for the three months ended March 31, 2025 and 2024, respectively.

These instruments were excluded when their exercise prices exceeded the average market price of our common stock for the period, when the number of shares we can repurchase under the treasury stock method exceeded the weighted average shares outstanding, or during periods of net loss, as their inclusion would have been anti-dilutive.

Excluded from the dilutive securities presented above were options to purchase and shares to be paid out under share-based compensation plans totaling 278,450 and 13,644 shares of common stock for the three months ended June 30, 2025 and 2024, respectively.

Excluded from the dilutive securities presented above were options to purchase and shares to be paid out under share-based compensation plans totaling 157,775 and 73,185 shares of common stock for the six months ended June 30, 2025 and 2024, respectively.

weighted average shares outstanding, or during periods of net loss, as their inclusion would have been anti-dilutive.

Segment Reporting

6 unchanged sentences

In accordance with the objective and basic principles of the applicable accounting guidance, we aggregate our operating segments into one reportable segment that consists of the design, manufacture and sale of products used primarily in the maintenance of nonresidential surfaces.

The Company's chief operating decision maker ("CODM") evaluates segment performance and makes resource allocation decisions using both net income and gross profit.

The Company's chief operating decision maker ("CODM") is our chief executive officer.

The CODM evaluates segment performance and makes resource allocation decisions using both net income and gross profit.

Net income, which is also reported as consolidated net income on the consolidated statements of income, is regularly reviewed to assess segment performance.

3 unchanged sentences

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 1. Financial Statements