What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 90 added, 64 removed, 310 unchanged (33% of the section changed)

56 unchanged sentences

Financial Highlights

▪ Total revenues were $199.5 million in the first quarter of 2026, a decrease of $18.4 million, or 8.4%, compared to total revenues of $217.9 million in the first quarter of 2025.

▪ Operating income was $15.4 million in the first quarter of 2026, a decrease of $21.1 million, or 57.8%, compared to $36.6 million in the first quarter of 2025.

▪ Net income per diluted share was $1.05 in the first quarter of 2026, a decrease of $3.00, or 74.1%, compared to net income per diluted share of $4.05 in the first quarter of 2025.

▪ Total revenues were $201.4 million in the second quarter of 2026, a decrease of $9.2 million, or 4.4%, compared to total revenues of $210.5 million in the second quarter of 2025.

▪ Operating income was $27.3 million in the second quarter of 2026, a decrease of $17.9 million, or 39.6%, compared to $45.2 million in the second quarter of 2025.

▪ Net income per diluted share was $6.68 in the second quarter of 2026, an increase of $0.56, or 9.2%, compared to net income per diluted share of $6.12 in the second quarter of 2025.

Keystone National Group

1 unchanged sentence

Assets Under Management

Total sales were $5.8 billion in the first quarter of 2026, a decrease of $0.5 billion, or 7.4%, from $6.2 billion in the first quarter of 2025.

Net flows were $(8.4) billion in the first quarter of 2026 compared to net flows of $(3.0) billion in the first quarter of 2025.

At March 31, 2026, total assets under management were $149.0 billion, representing a decrease of $18.4 billion, or 11.0%, from March 31, 2025, and a decrease of $10.5 billion, or 6.6%, from December 31, 2025.

The decrease in total assets under management from March 31, 2025 primarily included $24.3 billion from net outflows partially offset by $6.1 billion from positive market performance and $2.3 billion from the addition of Keystone.

The decrease in total assets under management from December 31, 2025 included $8.4 billion from net outflows and $3.9 billion from negative market performance partially offset by $2.3 billion from the addition of Keystone.

Total sales were $6.1 billion in the second quarter of 2026, an increase of $0.5 billion, or 8.5%, from $5.6 billion in the second quarter of 2025.

Net flows were $(5.6) billion in the second quarter of 2026 compared to net flows of $(3.9) billion in the second quarter of 2025.

At June 30, 2026, total assets under management were $152.2 billion, representing a decrease of $18.5 billion, or 10.9%, from June 30, 2025, and a decrease of $7.3 billion, or 4.6%, from December 31, 2025.

The decrease in total assets under management from June 30, 2025 primarily included $26.0 billion from net outflows partially offset by $7.6 billion from positive market performance and $2.3 billion from the addition of Keystone.

The decrease in total assets under management from December 31, 2025 included $14.1 billion from net outflows partially offset by $5.4 billion from positive market performance and $2.3 billion from the addition of Keystone.

Assets Under Management by Product

The following table summarizes our assets under management by product:

As of March 31, Change

As of June 30, Change

(in millions) 2026 2025 $ %

14 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(in millions) 2026 2025 2026 2025

9 unchanged sentences

Beginning balance $ 12,794 $ 10,273 $ 10,635 $ 10,225

Inflows 68 4 116 9

Outflows (4) (79) (2) (185) (42)

12 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(in millions) 2026 2025 2026 2025

23 unchanged sentences

The following table summarizes assets under management by asset class:

As of March 31, Change % of Total

As of June 30, Change % of Total

(in millions) 2026 2025 $ % 2026 2025

8 unchanged sentences

The following tables summarize the average management fees earned in basis points and average assets under management:

Three Months Ended March 31,

Three Months Ended June 30,

Average Fee Earned

8 unchanged sentences

All Products 43.1 41.3 $ 153,331 $ 166,959

Six Months Ended June 30,

Average Fee Earned

(expressed in basis points)

Average Assets Under

(in millions) (5)

2026 2025 2026 2025

Open-End Funds (1) 42.8 47.3 $ 52,837 $ 54,923

Closed-End Funds (2) 80.1 58.6 12,491 10,235

Retail Separate Accounts (3) 43.2 42.9 39,982 47,979

Institutional Accounts (4) 32.4 31.8 50,458 57,137

All Products 42.5 41.5 $ 155,768 $ 170,274

(1) Represents U.S.

10 unchanged sentences

Average fees earned will vary based on several factors, including the asset mix and expense reimbursements to the funds.

The average fee rate earned increased for the three months ended March 31, 2026 compared to the same period in the prior year primarily due to higher fee rates earned on the assets under management acquired from Keystone partially offset by a shift in the asset mix in our open-end funds to certain strategies, which have a lower fee rate.

The average fee rate earned increased for the three and six months ended June 30, 2026 compared to the same periods in the prior year primarily due to higher fee rates earned on the assets under management acquired from Keystone partially offset by a shift in the asset mix in our open-end funds to certain strategies, which have a lower fee rate.

Results of Operations

1 unchanged sentence

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 $ % 2026 2025 $ %

4 unchanged sentences

Operating income (loss) 27,324 45,210 (17,886) (39.6) % 42,772 81,805 (39,033) (47.7) %

Other income (expense), net (12,876) (7,642) (5,234) 68.5 %

Other income (expense), net 18,191 (96) 18,287 N/M 5,315 (7,738) 13,053 (168.7) %

Interest income (expense), net 7,498 10,032 (2,534) (25.3) % 18,229 21,481 (3,252) (15.1) %

2 unchanged sentences

Net income (loss) 44,607 42,743 1,864 4.4 % 50,758 70,795 (20,037) (28.3) %

Noncontrolling interests 974 595 379 63.7 %

Noncontrolling interests 699 (370) 1,069 (288.9) % 1,673 225 1,448 N/M

Net Income (Loss) Attributable to Virtus Investment Partners, Inc.

1 unchanged sentence

Earnings (loss) per share-diluted $ 6.68 $ 6.12 $ 0.56 9.2 % $ 7.72 $ 10.15 $ (2.43) (23.9) %

In the first quarter of 2026, total revenues decreased 8.4% to $199.5 million from $217.9 million in the first quarter of 2025, primarily as a result of decreased average assets under management partially offset by the addition of Keystone.

Operating income decreased by $21.1 million to $15.4 million in the first quarter of 2026 compared to $36.6 million in the first quarter of 2025, due primarily to decreased revenues as mentioned above.

N/M = Not Meaningful

In the second quarter of 2026, total revenues decreased 4.4% to $201.4 million from $210.5 million in the second quarter of 2025, primarily as a result of decreased average assets under management, partially offset by the addition of Keystone.

Operating income decreased by $17.9 million to $27.3 million in the second quarter of 2026 compared to $45.2 million in the second quarter of 2025, due primarily to an increase in amortization expenses as a result of the Keystone acquisition and decreased revenues as mentioned above.

Revenues by source were as follows:

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 $ % 2026 2025 $ %

11 unchanged sentences

Investment management fees are earned based on a percentage of assets under management and are paid pursuant to the terms of the respective investment management agreements, which generally require monthly or quarterly payments.

Investment management fees decreased by $17.0 million, or 9.1%, for the three months ended March 31, 2026, compared to the same period in the prior year primarily due to decreased average assets under management partially offset by the addition of Keystone.

Investment management fees decreased by $8.6 million, or 4.8%, and $25.6 million, or 7.0%, for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to decreased average assets

under management.

Administration and Shareholder Service Fees

1 unchanged sentence

retail funds, ETFs and traditional closed-end funds.

Fund administration and shareholder service fees decreased $0.7 million , or 3.9% during the three months ended March 31, 2026 compared to the same period in the prior year primarily

due to the decrease in average assets under management of our U.S.

Fund administration and shareholder service fees decreased $0.7 million, or 3.9%, and $1.4 million, or 3.9%, during the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to the decrease in average assets under management of our U.S.

retail funds partially offset by increased closed-end fund administration fees.

1 unchanged sentence

Distribution and service fees are sales- and asset-based fees earned from open-end funds for marketing and distribution services.

Distribution and service fees decreased by $1.1 million, or 8.8%, for the three months ended March 31, 2026, compared to the same period in the prior year primarily due to lower sales and average assets under management for open-end funds in share classes that have sales- and asset-based distribution and service fees.

Distribution and service fees remained consistent and decreased by $1.3 million, or 5.4%, for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year.

The decrease during the six month period is primarily due to lower sales and average assets under management for open-end funds in share classes that have sales- and asset-based distribution and service fees.

Other Income and Fees

Other income and fees primarily represent fees related to other fee-earning assets and marketing fees earned on certain ETFs.

Other income and fees increased $0.4 million, or 34.9%, for the three months ended March 31, 2026, compared to the same period in the prior year primarily due to increased marketing fees earned on ETFs during the current year period.

Other income and fees increased $0.4 million, or 36.9%, and $0.8 million, or 35.9%, for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to increased marketing fees earned on ETFs during the current year periods.

Operating Expenses

1 unchanged sentence

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 $ % 2026 2025 $ %

4 unchanged sentences

Other operating expenses of CIP 926 810 116 14.3 % 2,941 1,810 1,131 62.5 %

Change in fair value of contingent consideration 409 — 409 N/M

Restructuring expense 2,871 — 2,871 N/M

Change in fair value of contingent consideration (4,407) (3,014) (1,393) 46.2 % (3,998) (3,014) (984) 32.6 %

Restructuring expense 825 — 825 N/M 3,696 — 3,696 N/M

Depreciation expense 1,679 2,006 (327) (16.3) % 3,346 4,351 (1,005) (23.1) %

4 unchanged sentences

Employment expenses consist of fixed and variable compensation and related employee benefit costs.

Employment expenses decreased by $3.9 million, or 3.6%, for the three months ended March 31, 2026, primarily due to a decrease in profit- and sales-based compensation and stock-based compensation expense partially offset by the addition of Keystone.

Employment expenses increased by $4.4 million, or 4.5%, and $0.6 million, or 0.3%, for the three and six months ended June 30, 2026, respectively, primarily due to the addition of Keystone employees and an increase in stock-based compensation expense partially offset by a decrease in incentive compensation.

Distribution and Other Asset-Based Expenses

1 unchanged sentence

These payments are primarily based on assets under management.

Distribution and other asset-based expenses decreased $2.4 million, or 10.3%, for the three months ended March 31, 2026, primarily due to decreases in assets under management in share classes that have asset-based distribution and other asset-based expenses.

Distribution and other asset-based expenses decreased $1.7 million, or 7.7%, and $4.1 million, or 9.0%, for the three and six months ended June 30, 2026, respectively, primarily due to decreases in assets under management in share classes that have asset-based distribution and other asset-based expenses.

Other Operating Expenses

Other operating expenses consist primarily of investment research and technology costs, software application and development expenses, professional fees, travel and distribution-related costs, rent and occupancy expenses, and other business costs.

Other operating expenses increased $3.1 million, or 9.5%, for the three months ended March 31, 2026 compared to the same period in the prior year primarily due to transaction costs related to the Keystone acquisition.

Other operating expenses remained consistent for the three months ended June 30, 2026 and 2025, and increased $2.8 million, or 4.2%, for the six months ended June 30, 2026 compared to the same periods in the prior year primarily due to transaction costs and ongoing costs associated with the Keystone acquisition partially offset by decreased rent associated with lease terminations in the prior year.

Other Operating Expenses of CIP

Other operating expenses of CIP increased by $1.0 million, or 101.5%, for the three months ended March 31, 2026, compared to the same period in the prior year primarily due to refinancing activities associated with one CLO in the current year.

Other operating expenses of CIP were consistent for the three months ended June 30, 2026 and 2025, and increased by $1.1 million, or 62.5%, for the six months ended June 30, 2026, compared to the same periods in the prior year primarily due to refinancing activities associated with one CLO in the current year.

Change in Fair Value of Contingent Consideration

1 unchanged sentence

The change in fair value is recorded in the current period as a gain or loss.

The change in fair value of contingent consideration for the three months ended March 31, 2026 was primarily attributable to changes in underlying performance estimates and the passage of time.

The change in fair value of contingent consideration for the three and six months ended June 30, 2026 was primarily attributable to changes in underlying performance estimates and the passage of time.

Restructuring Expense

During the three months ended March 31, 2026, the Company incurred $2.9 million in restructuring expense related to severance costs.

During the three and six months ended June 30, 2026, the Company incurred $0.8 million and $3.7 million, respectively, in restructuring expense related to severance costs.

Depreciation Expense

Depreciation expense consists primarily of the straight-line depreciation of furniture, equipment and leasehold improvements.

Depreciation expense decreased by $0.7 million, or 28.9%, for the three months ended March 31, 2026, compared to the same period in the prior year primarily due to the prior year acceleration of depreciation on leasehold improvements associated with a terminated lease and a decrease in depreciation expense on computer equipment in the current year due to these assets becoming fully depreciated.

Depreciation expense decreased by $0.3 million, or 16.3%, for the three months ended June 30, 2026 primarily due to computer equipment in the current year becoming fully depreciated.

Depreciation expense decreased $1.0 million, or 23.1%, for the six months ended June 30, 2026, compared to the same period in the prior year primarily due to the prior year acceleration of depreciation on leasehold improvements associated with a terminated lease and a decrease in depreciation expense on computer equipment in the current year due to these assets becoming fully depreciated.

Amortization Expense

Amortization expense consists of the amortization of definite-lived intangible assets over their estimated useful lives.

Amortization expense increased by $2.2 million, or 17.2%, for the three months ended March 31, 2026, compared to the same period in the prior year, primarily due to the additional amortization associated with the Keystone acquisition.

Amortization expense increased by $7.1 million, or 54.9%, and $9.3 million, or 36.1%, for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year, primarily due to the additional amortization associated with the Keystone acquisition.

Other Income (Expense)

1 unchanged sentence

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 $ % 2026 2025 $ %

3 unchanged sentences

Other income (expense), net (725) 1,137 (1,862) (163.8) % (102) 2,135 (2,237) (104.8) %

Total Other Income (Expense), net $ (12,876) $ (7,642) $ (5,234) 68.5 %

Total Other Income (Expense), net $ 18,191 $ (96) $ 18,287 N/M $ 5,315 $ (7,738) $ 13,053 (168.7) %

N/M = Not Meaningful

Realized and unrealized gain (loss) on investments, net

Realized and unrealized gain (loss) on investments, net changed during the three months ended March 31, 2026 by $1.8 million compared to the same period in the prior year.

The change for the three months ended March 31, 2026 is primarily attributable to an increase in realized gains due to changes in market values of our investments.

Realized and unrealized gain (loss) on investments, net changed during the three and six months ended June 30, 2026

by $0.6 million and $2.4 million compared to the same periods in the prior year.

The change for the three and six months ended June 30, 2026 is primarily attributable to an increase in realized gains due to changes in market values of our investments.

Realized and unrealized gain (loss) of CIP, net

Realized and unrealized gain (loss) of CIP, net changed by $(6.7) million for the three months ended March 31, 2026, compared to the same period in the prior year.

The change for the three months ended March 31, 2026 consisted primarily of changes in net unrealized and realized losses of $19.5 million due to changes in market values of leveraged loans, partially offset by net unrealized gains of $12.8 million related to the value of the notes payable.

Realized and unrealized gain (loss) of CIP, net changed by $19.6 million and $12.9 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year.

The change for the three months ended June 30, 2026 consisted primarily of changes in net unrealized and realized gains of $39.8 million due to changes in market values of leveraged loans, partially offset by net unrealized losses of $20.2 million related to the value of the notes payable.

The change for the six months ended June 30, 2026 consisted primarily of changes in net unrealized and realized gains of $20.3 million due to changes in market values of leveraged loans, partially offset by net unrealized losses of $7.4 million related to the value of the notes payable.

Other income (expense), net

Other income (expense) remained consistent during the three months ended March 31, 2026 compared to the same period in the prior year.

Other income (expense) changed by $(1.9) million and $(2.2) million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to noncontrolling interest liability distributions partially offset by changes in the gains on our equity method investments.

Interest Income (Expense)

1 unchanged sentence

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 $ % 2026 2025 $ %

6 unchanged sentences

Interest Expense

Interest expense increased $2.2 million, or 48.3%, for the three months ended March 31, 2026, primarily due to increased average debt outstanding during the current year period.

Interest expense increased $2.6 million, or 56.0%, and $4.8 million, or 52.1%, for the three and six months ended June 30, 2026, primarily due to increased average debt outstanding during the current year periods.

Interest and Dividend Income

Interest and dividend income is earned on cash equivalents and marketable securities.

Interest and dividend income remained consistent for the three months ended March 31, 2026, compared to the same period in the prior year.

Interest and dividend income decreased $0.7 million, or 33.2%, and $0.8 million, or 14.8%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year primarily due to lower average interest rates.

Interest and Dividend Income of Investments of CIP

Interest and dividend income of investments of CIP increased $1.1 million, or 2.3%, for the three months ended March 31, 2026, compared to the same period in the prior year primarily due to the addition of a CLO in the fourth quarter of 2025.

Interest and dividend income of investments of CIP increased $0.7 million, or 1.5%, and $1.8 million, or 1.9%, for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year, primarily due to the addition of a CLO in the fourth quarter of 2025 partially offset by lower interest rates.

Interest Expense of CIP

Interest expense of CIP represents interest expense on the notes payable of CIP.

Interest expense of CIP increased by $0.5 million, or 1.4%, for the three months ended March 31, 2026, compared to the same period in the prior year, primarily due to the addition of a CLO in the fourth quarter of 2025.

Interest expense of CIP remained consistent and decreased by $0.5 million, or 0.7%, for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year.

The decrease during the six months ended June 30, 2026 is primarily due to lower interest rates partially offset by the addition of a CLO in the fourth quarter of 2025.

Income Tax Expense (Benefit)

The provision for income taxes reflected U.S.

federal, state and local taxes at an estimated effective tax rate of 53.8% and 30.6% for the three months ended March 31, 2026 and 2025, respectively.

The higher estimated effective tax rate for the three months ended March 31, 2026 was primarily due to a change in valuation allowances in the current year related to the tax effects of higher realized and unrealized losses on Company investments compared to the prior year and the rate impact of lower pre-tax income.

federal, state and local taxes at an estimated effective tax rate of 23.5% and 25.9% for the six months ended June 30, 2026 and 2025, respectively.

The lower estimated effective tax rate for the six

months ended June 30, 2026 was primarily due to a change in valuation allowances in the current year related to the tax effects of higher realized and unrealized gains on Company investments compared to the prior year.

Liquidity and Capital Resources

12 unchanged sentences

N/M = Not Meaningful

Three Months Ended

March 31, Change

Six Months Ended

June 30, Change

(in thousands, Provided by (Used in));

1 unchanged sentence

Cash Flow Data

Operating activities $ 35,901 $ (3,787) $ 39,688 N/M

Operating activities $ 93,325 $ 71,970 $ 21,355 29.7 %

Investing activities (199,805) (4,012) (195,793) N/M

1 unchanged sentence

N/M = Not Meaningful

At March 31, 2026, we had $136.6 million of cash and cash equivalents and $143.1 million of investments, which included $53.5 million of investment securities, compared to $386.5 million of cash and cash equivalents and $157.5 million of investments, which included $76.5 million of investment securities, at December 31, 2025.

At June 30, 2026, we had $176.2 million of cash and cash equivalents and $139.9 million of investments, which included $49.7 million of investment securities, compared to $386.5 million of cash and cash equivalents and $157.5 million of investments, which included $76.5 million of investment securities, at December 31, 2025.

Uses of Capital

13 unchanged sentences

Certain of our subsidiaries are registered with the SEC, Central Bank of Ireland, Financial Conduct Authority or other regulators that subject them to certain rules regarding minimum net capital.

Failure to meet these requirements could result in adverse consequences to us, including additional reporting requirements, or interruption of our business.

At March 31, 2026, our broker-dealer net capital was significantly greater than the required minimum.

Failure to meet these requirements could result in

adverse consequences to us, including additional reporting requirements, or interruption of our business.

At June 30, 2026, our broker-dealer net capital was significantly greater than the required minimum.

Balance Sheet

3 unchanged sentences

Operating Cash Flow

Net cash provided by operating activities of $35.9 million for the three months ended March 31, 2026 changed by $39.7 million from net cash used in operating activities of $3.8 million for the same period in the prior year primarily due to an increase of $29.2 million in net sales of investments by CIP and $15.3 million in net sales of investments by us, partially offset by a $21.9 million decrease in net income in the current year period.

Net cash provided by operating activities of $93.3 million for the six months ended June 30, 2026 increased by $21.4 million from net cash provided by operating activities of $72.0 million for the same period in the prior year primarily due to an increase of $20.4 million in net sales of investments by CIP and $20.0 million in net sales of investments by us, partially offset by a $20.0 million decrease in net income in the current year period.

Investing Cash Flow

Cash flows from investing activities consist primarily of acquisitions of businesses, capital expenditures and other investing activities related to our business operations.

Net cash used in investing activities of $198.5 million for the three months ended March 31, 2026 increased by $195.5 million from net cash used in investing activities of $3.0 million for the same period in the prior year primarily due to the acquisition of Keystone.

Net cash used in investing activities of $199.8 million for the six months ended June 30, 2026 increased by $195.8 million from net cash used in investing activities of $4.0 million for the same period in the prior year primarily due to the acquisition of Keystone.

Financing Cash Flow

Cash flows from financing activities consist primarily of transactions related to our common shares, issuance and repayment of debt by us and CIP, payments of contingent consideration and purchases and sales of noncontrolling interests.

Net cash used in financing activities of $40.9 million for the three months ended March 31, 2026 decreased by $133.6 million from net cash used of $174.5 million for the same period in the prior year primarily due to a $102.5 million increase in net borrowings of CIP and $50.0 million in borrowings on our revolver during the current year period.

Net cash used in financing activities of $84.4 million for the six months ended June 30, 2026 decreased by $142.1 million from net cash used of $226.5 million for the same period in the prior year primarily due to an increase of $96.1 million in net borrowings of CIP and $29.4 million in net borrowings by us, and a $29.5 million decrease in repurchases of common shares during the current year period.

Credit Agreement

The Company's credit agreement (the "Credit Agreement") provides for (i) a $400.0 million term loan for the Company with a seven-year term (the "Term Loan") expiring in September 2032, and (ii) a $250.0 million revolving credit facility (the "Revolver") with a five-year term expiring in September 2030.

The Company borrowed $50.0 million under the Revolver during the three months ended March 31, 2026.

The Company repaid $1.0 million outstanding under the Term Loan during the three months ended March 31, 2026 and had $398.0 million outstanding under the Term Loan at March 31, 2026.

In accordance with ASC 835, Interest , the amounts outstanding under the Company's Term Loan are presented on the Condensed Consolidated Balance Sheets net of related debt issuance costs, which were $8.7 million as of March 31, 2026.

The Company borrowed $50.0 million under the Revolver during the six months ended June 30, 2026.

During the six months ended June 30, 2026, the Company repaid $20.0 million and $2.0 million outstanding under the Revolver and Term Loan, respectively.

At June 30, 2026, the Company had $30.0 million and $397.0 million outstanding under the Revolver and Term Loan, respectively.

Critical Accounting Policies and Estimates

3 unchanged sentences

A complete description of our significant accounting policies is included in our 2025 Annual Report on Form 10-K.

There were no material changes in our critical accounting policies and estimates in the three months ended March 31, 2026.

There were no material changes in our critical accounting policies and estimates in the three months ended June 30, 2026.

Recently Issued Accounting Pronouncements

For a discussion of accounting standards, see Note 2 in our condensed consolidated financial statements.

Quantitative and Qualitative Disclosures About Market Risk

The Company is primarily exposed to market risk associated with unfavorable movements in interest rates and securities prices.

During the three months ended March 31, 2026, there were no material changes to the information contained in Part II, Item 7A of the Company's 2025 Annual Report on Form 10-K.

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