What changed in this filing

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Item 1. Financial Statements

2026-04-09 compared with 2026-01-08 · 135 added, 69 removed, 462 unchanged (31% of the section changed)

33 unchanged sentences

Common stock — authorized 36,000,000 shares, $ 0.001 par value;

19,970,058 and 19,954,495 shares issued at November 30, 2025 and August 31, 2025, respectively;

and 13,503,677 and 13,527,614 shares outstanding at November 30, 2025 and August 31, 2025, respectively

19,973,928 and 19,954,495 shares issued at February 28, 2026 and August 31, 2025, respectively;

and 13,469,372 and 13,527,614 shares outstanding at February 28, 2026 and August 31, 2025, respectively

Additional paid-in capital 182,433 180,065

1 unchanged sentence

Accumulated other comprehensive loss ( 21,440 ) ( 24,485 )

Common stock held in treasury, at cost — 6,466,381 and 6,426,881 shares at November 30, 2025 and August 31, 2025, respectively

Common stock held in treasury, at cost — 6,504,556 and 6,426,881 shares at February 28, 2026 and August 31, 2025, respectively

( 443,948 ) ( 428,113 )

5 unchanged sentences

(Unaudited and in thousands, except per share amounts)

Three Months Ended November 30,

Three Months Ended February 28, Six Months Ended February 28,

2026 2025 2026 2025

Net sales $ 161,671 $ 146,104 $ 316,094 $ 299,599

10 unchanged sentences

Interest expense ( 666 ) ( 1,021 ) ( 1,314 ) ( 1,894 )

Other expense, net ( 197 ) ( 141 )

Other income (expense), net 78 74 ( 119 ) ( 67 )

Income before income taxes 25,854 22,439 48,446 46,695

Provision for income taxes 5,141 5,331

Provision (benefit) for income taxes 5,536 ( 7,412 ) 10,677 ( 2,081 )

Net income $ 20,318 $ 29,851 $ 37,769 $ 48,776

9 unchanged sentences

(Unaudited and in thousands)

Three Months Ended November 30,

Three Months Ended February 28, Six Months Ended February 28,

2026 2025 2026 2025

Net income $ 20,318 $ 29,851 $ 37,769 $ 48,776

23 unchanged sentences

Balance at November 30, 2025 19,970,058 $ 20 $ 179,557 $ 545,363 $ ( 24,912 ) 6,466,381 $ ( 435,962 ) $ 264,066

Issuance of common stock under share-based compensation plan, net of shares withheld for taxes 3,870 - -

Stock-based compensation 2,876 2,876

Cash dividends ($ 1.02 per share)

( 13,791 ) ( 13,791 )

Repurchases of common stock 38,175 ( 7,986 ) ( 7,986 )

Foreign currency translation adjustment 3,472 3,472

Net income 20,318 20,318

Balance at February 28, 2026 19,973,928 $ 20 $ 182,433 $ 551,890 $ ( 21,440 ) 6,504,556 $ ( 443,948 ) $ 268,955

See accompanying notes to condensed consolidated financial statements (unaudited).

Common Stock Additional

15 unchanged sentences

Balance at November 30, 2024 19,940,370 $ 20 $ 174,258 $ 506,898 $ ( 35,453 ) 6,390,381 $ ( 419,426 ) $ 226,297

Issuance of common stock under share-based compensation plan, net of shares withheld for taxes 14,125 - -

Stock-based compensation 2,592 2,592

Cash dividends ($ 0.94 per share)

( 12,780 ) ( 12,780 )

Repurchases of common stock 12,500 ( 3,071 ) ( 3,071 )

Foreign currency translation adjustment ( 747 ) ( 747 )

Net income 29,851 29,851

Balance at February 28, 2025 19,954,495 $ 20 $ 176,850 $ 523,969 $ ( 36,200 ) 6,402,881 $ ( 422,497 ) $ 242,142

See accompanying notes to condensed consolidated financial statements (unaudited).

2 unchanged sentences

(Unaudited and in thousands)

Three Months Ended November 30,

Six Months Ended February 28,

Operating activities:

4 unchanged sentences

Deferred income taxes ( 347 ) 308

Tax benefit from release of uncertain tax position

Stock-based compensation 4,600 4,091

35 unchanged sentences

WD-40® Multi-Use Product, WD-40 Specialist®, 3-IN-ONE®, GT85®, X-14®, 2000 Flushes®, Carpet Fresh®, no vac®, Spot Shot®, Lava® and Solvol®.

Certain assets of the Company’s homecare and cleaning product businesses are classified as held for sale as of November 30, 2025.

Refer to Note 3 - Assets Held for Sale for additional information.

Certain assets of the Company’s homecare and cleaning product businesses are classified as held for sale as of February 28, 2026.

Refer to Note 3.

- Assets Held for Sale for additional information.

The Company’s products are sold in various locations around the world.

28 unchanged sentences

Foreign currency forward contracts in an asset position at the end of the reporting period are included in other current assets, while foreign currency forward contracts in a liability position at the end of the reporting period are included in accrued liabilities in the Company’s condensed consolidated balance sheets.

At November 30, 2025, the Company had a notional amount of $ 2.9 million outstanding in foreign currency forward contracts, which will mature in January 2026.

Unrealized net gains and losses related to foreign currency forward contracts were not significant at November 30, 2025 and August 31, 2025.

Realized net gains and losses related to foreign currency forward contracts were not significant for the three months ended November 30, 2025 and 2024.

At February 28, 2026, the Company had a notional amount of $ 4.9 million outstanding in foreign currency forward contracts, which matured in March 2026.

Unrealized net gains and losses related to foreign currency forward contracts were no t significant at February 28, 2026 and August 31, 2025.

Realized net gains and losses related to foreign currency forward contracts were no t significant for the three and six months ended February 28, 2026 and 2025.

Both unrealized and realized net gains and losses are recorded in other income (expense), net in the Company’s condensed consolidated statements of operations.

6 unchanged sentences

Under fair value accounting, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

As of November 30, 2025, the Company had no assets or liabilities that are measured at fair value in the financial statements on a recurring basis, with the exception of the foreign currency forward contracts, which are classified as Level 2 within the fair value hierarchy.

As of February 28, 2026, the Company had no assets or liabilities that are measured at fair value in the financial statements on a recurring basis, with the exception of the foreign currency forward contracts, which are classified as Level 2 within the fair value hierarchy.

The carrying values of cash equivalents and short-term borrowings are recorded at cost, which approximates their fair values, primarily due to their short-term nature.

1 unchanged sentence

The Company’s fixed rate long-term borrowings consist of senior notes and are recorded at carrying value.

The Company estimates that the fair value of its senior notes, based on Level 2 inputs, was approximately $ 61.0 million as of November 30, 2025, which was determined based on a discounted cash flow analysis using current market interest rates for instruments with similar terms, compared to their carrying value of $ 65.6 million.

During the three months ended November 30, 2025, the Company did not record any significant nonrecurring fair value measurements for assets or liabilities in periods subsequent to their initial recognition.

Recently Adopted Accounting Standards

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No.

2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.” These amendments primarily require enhanced disclosures about significant segment expenses regularly provided to the Chief Operating Decision Maker and included within each reported measure of segment profit or loss.

The Company adopted ASU 2023-07 with its annual period ended August 31, 2025 and interim periods thereafter.

See Note 14 — Business Segments and foreign operations for updated disclosures as a result of this adoption.

The Company estimates that the fair value of its senior notes, based on Level 2 inputs, was approximately $ 61.8 million as of February 28, 2026, which was determined based on a discounted cash flow analysis using current market interest rates for instruments with similar terms, compared to their carrying value of $ 65.6 million.

During the six months ended February 28, 2026, the Company did not record any significant nonrecurring fair value measurements for assets or liabilities in periods subsequent to their initial recognition.

Recently Issued Accounting Standards

4 unchanged sentences

The amendments will impact the Company’s income tax disclosures but will have no impact on results of operations, cash flows or financial condition.

The Company will adopt the standard on the effective date in its upcoming annual report for fiscal year 2026.

The Company will adopt the standard in its upcoming annual report for the fiscal year ended August 31, 2026.

In November 2024, the FASB issued ASU No.

6 unchanged sentences

Measurement of Credit Losses for Accounts Receivable and Contract Assets” which includes amendments that provide all entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets.

The amendments are effective for the Company’s annual periods beginning September 1, 2027, with early adoption permitted, and should be applied either prospectively or retrospectively.

amendments are effective for the Company’s annual periods beginning September 1, 2027, with early adoption permitted, and should be applied either prospectively or retrospectively.

The Company is in the process of evaluating this ASU to determine its impact on the Company’s financial statements and disclosures.

6 unchanged sentences

Management determined that the planned sale of these brands did not represent a strategic shift having a major effect on the Company’s operations and financial results and therefore did not meet the criteria for classification as discontinued operations in fiscal year 2025.

Although the planned sale of the homecare and cleaning product businesses in the Americas has not completed within the original one year expectation, these assets continued to meet the criteria as held for sale in accordance with ASC 360, Property, Plant, and Equipment as of November 30, 2025.

Although the planned sale of the homecare and cleaning product businesses in the Americas was not completed within the original one year expectation, these assets continued to meet the criteria as held for sale in accordance with ASC 360, Property, Plant, and Equipment as of February 28, 2026.

Assets included as part of the disposal group classified as held for sale consisted of inventory, goodwill and other intangible assets, net.

10 unchanged sentences

During the fourth quarter of fiscal year 2025, the Company sold its homecare and cleaning product business in the EIMEA segment.

The brands related to this business are included in fiscal year 2025 financial results but will not be included in fiscal year 2026 financial results.

The brands related to this business are included in fiscal year 2025 financial results but are not included in fiscal year 2026 financial results.

Inventories consisted of the following (in thousands):

21 unchanged sentences

Total $ 58,968 $ 60,394

As of November 30, 2025 and August 31, 2025, the Company’s condensed consolidated balance sheets included $ 17.2 million and $ 16.6 million, respectively, of capitalized cloud computing implementation costs recorded as other assets within the Company’s condensed consolidated balance sheets.

Accumulated amortization associated with these assets was $ 4.2 million and $ 3.8 million as of November 30, 2025 and August 31, 2025, respectively.

Amortization expense associated with these assets was $ 0.4 million for both the three months ended November 30, 2025 and 2024, respectively.

As of February 28, 2026 and August 31, 2025, the Company’s condensed consolidated balance sheets included $ 17.6 million and $ 16.6 million, respectively, of capitalized cloud computing implementation costs recorded as other assets within the Company’s condensed consolidated balance sheets.

Accumulated amortization associated with these assets was $ 4.7 million and $ 3.8 million as of February 28, 2026 and August 31, 2025, respectively.

Amortization expense associated with these assets was $ 0.5 million and $ 0.9 million for the three and six months ended February 28, 2026 and $ 0.4 million and $ 0.8 million for the three and six months ended February 28, 2025, respectively.

Goodwill and Other Intangible Assets

4 unchanged sentences

Translation adjustments 83 56 4 143

Balance as of November 30, 2025 $ 85,904 $ 10,007 $ 1,212 $ 97,123

Balance as of February 28, 2026 $ 85,979 $ 10,101 $ 1,213 $ 97,293

(1) Beginning balance does not include certain homecare and cleaning assets in the Americas segment as it is included in other current assets on the Company’s condensed consolidated balance sheets.

There were no indicators of impairment identified as a result of the Company’s review of events and circumstances related to its goodwill as of November 30, 2025.

During the second quarter of fiscal year 2026, the Company performed its annual goodwill impairment test.

The annual goodwill impairment test was performed at the reporting unit level as of the Company’s most recent goodwill impairment testing date, December 1, 2025.

During the fiscal year 2026 annual goodwill impairment test, the Company performed a qualitative assessment of each reporting unit to determine whether it was more likely than not that the fair value of a reporting unit was less than its carrying amount.

In performing this qualitative assessment, the Company assessed relevant events and circumstances that may impact the fair value and the carrying amount of each of its reporting units.

Factors that were considered included, but were not limited to, the following:

(1) macroeconomic conditions, including the impacts of tariffs and geopolitical conflicts;

(2) industry and market conditions;

(3) historical financial performance and expected financial performance;

(4) other entity specific events, such as changes in management or key personnel;

and (5) events affecting the Company’s reporting units, such as a change in the composition of net assets or any expected dispositions, such as the sale of certain of the Company’s HCCP businesses.

Based on the results of this qualitative assessment, the Company determined that the estimated fair value of each of the Company’s reporting units exceeded their respective carrying values so significantly that an impairment charge to the Company’s goodwill balances is remote and, thus, a quantitative analysis was not required.

As a result, the Company concluded that no impairment of its goodwill existed as of December 1, 2025.

In addition, the Company concluded that there were no indicators of impairment identified as a result of the Company’s review of events and circumstances related to its goodwill subsequent to December 1, 2025 through February 28, 2026.

To date, there have been no impairment losses identified and recorded related to the Company’s goodwill.

12 unchanged sentences

(1) Other intangibles, net current held for sale included certain homecare and cleaning assets in the Americas segment are included in other current assets on the Company’s condensed consolidated balance sheets.

There has been no impairment charge for the three months ended November 30, 2025 and there were no indicators of impairment identified as a result of the Company’s review of events and circumstances related to its existing definite-lived intangible assets.

Changes in the carrying amounts of definite-lived intangible assets, net pertain entirely to the America’s segment for the three months ended November 30, 2025 and are summarized below (in thousands).

There has been no impairment charge for the six months ended February 28, 2026 and there were no indicators of impairment identified as a result of the Company’s review of events and circumstances related to its existing definite-lived intangible assets.

Changes in the carrying amounts of definite-lived intangible assets, net pertain entirely to the America’s segment for the six months ended February 28, 2026 and are summarized below (in thousands).

Balance as of August 31, 2025 (1)

1 unchanged sentence

Translation adjustments 128

Balance as of November 30, 2025 $ 2,390

Balance as of February 28, 2026 $ 2,447

(1) Beginning balance does not include certain homecare and cleaning assets in the Americas segment as it is included in other current assets on the Company’s condensed consolidated balance sheets.

18 unchanged sentences

Total $ 19,844 $ 28,415

As of November 30, 2025, the Company held borrowings under two separate agreements as detailed below.

As of February 28, 2026, the Company held borrowings under two separate agreements as detailed below.

Note Purchase and Private Shelf Agreement

1 unchanged sentence

(“Prudential”), and certain affiliates and managed accounts of Prudential (the “Note Purchasers”).

As of November 30, 2025, the Company had outstanding balances on its series A, B and C notes issued under the Note Agreement.

As of February 28, 2026, the Company had outstanding balances on its series A, B and C notes issued under the Note Agreement.

The Note Agreement was most recently amended on April 30, 2024 (the “Fourth Amendment”).

9 unchanged sentences

The Company’s index rate under the Credit Agreement for U.S.

Dollar borrowings is the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York.

Dollar borrowings is the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York and for Euro borrowings is the Euro Interbank Offered Rate as administered by the European Money Markets Institute.

Short-term and long-term borrowings under the Company’s Credit Agreement and Note Agreement consisted of the following (in thousands):

Issuance Maturities November 30,

Issuance Maturities February 28,

2026 August 31,

14 unchanged sentences

Outstanding draws for which management has the ability and intent to refinance with successive short-term borrowings for a period of at least twelve months are classified as long-term.

As of November 30, 2025, $ 20.9 million of this facility was classified as long-term and was entirely denominated in Euros.

As of February 28, 2026, $ 21.2 million of this facility was classified as long-term and was entirely denominated in Euros.

$ 14.4 million was classified as short-term and was denominated in U.S.

15 unchanged sentences

The consolidated interest coverage ratio means, as of any date of determination, the ratio of (a) consolidated EBITDA for the most recently completed four fiscal quarters to (b) consolidated interest charges for the most recently completed four fiscal quarters.

As of November 30, 2025, the Company was in compliance with all debt covenants under both the Note Agreement and the Credit Agreement.

As of February 28, 2026, the Company was in compliance with all debt covenants under both the Note Agreement and the Credit Agreement.

Share Repurchase Plan

4 unchanged sentences

terms and conditions as may be acceptable to the Company’s Chief Executive Officer and Chief Financial Officer, subject to present loan covenants and in compliance with all laws and regulations applicable thereto.

During the three months ended November 30, 2025, the Company repurchased 39,500 shares at an average price of $ 197.45 per share, for a total cost of $ 7.8 million.

As of November 30, 2025, the Company is authorized to purchase an additional $ 21.8 million under the 2023 Repurchase Plan.

During the six months ended February 28, 2026, the Company repurchased 77,675 shares at an average price of $ 203.22 per share, for a total cost of $ 15.8 million.

As of February 28, 2026, the Company is authorized to purchase an additional $ 13.8 million under the 2023 Repurchase Plan.

Earnings per Common Share

The table below reconciles net income to net income available to common stockholders (in thousands):

Three Months Ended November 30,

Three Months Ended February 28, Six Months Ended February 28,

2026 2025 2026 2025

Net income $ 20,318 $ 29,851 $ 37,769 $ 48,776

2 unchanged sentences

The table below summarizes the weighted-average number of common shares outstanding included in the calculation of basic and diluted EPS (in thousands):

Three Months Ended November 30,

Three Months Ended February 28, Six Months Ended February 28,

2026 2025 2026 2025

Weighted-average common shares outstanding, basic 13,484 13,552 13,504 13,550

1 unchanged sentence

Weighted-average common shares outstanding, diluted 13,508 13,572 13,529 13,572

For the three months ended November 30, 2025 and 2024, weighted-average stock-based equity awards outstanding that are non-participating securities in the amount of 9,544 and 6,188 , respectively, were excluded from the calculation of diluted EPS under the treasury stock method as they were anti-dilutive.

For the three months ended February 28, 2026 and 2025, weighted-average stock-based equity awards outstanding that are non-participating securities in the amount of 3,482 and 9,544 , respectively, were excluded from the calculation of diluted EPS under the treasury stock method as they were anti-dilutive.

For the six months ended February 28, 2026 and 2025, weighted-average stock-based equity awards outstanding that are non-participating securities in the amount of 6,513 and 7,866 , respectively, were excluded from the calculation of diluted EPS under the treasury stock method as they were anti-dilutive.

The following table presents the Company’s revenues by segment and major source (in thousands):

Three Months Ended November 30, 2025

Americas EIMEA Asia-Pacific Total

Three Months Ended February 28, 2026 Six Months Ended February 28, 2026

Americas EIMEA Asia-Pacific Total Americas EIMEA Asia-Pacific Total

WD-40 Multi-Use Product $ 56,041 $ 52,359 $ 18,966 $ 127,366 $ 110,625 $ 97,308 $ 37,230 $ 245,163

5 unchanged sentences

Total net sales $ 71,814 $ 64,869 $ 24,988 $ 161,671 $ 143,687 $ 123,544 $ 48,863 $ 316,094

Three Months Ended November 30, 2024

Americas EIMEA Asia-Pacific Total

Three Months Ended February 28, 2025 Six Months Ended February 28, 2025

Americas EIMEA Asia-Pacific Total Americas EIMEA Asia-Pacific Total

WD-40 Multi-Use Product $ 51,058 $ 46,406 $ 16,228 $ 113,692 $ 103,959 $ 91,272 $ 37,008 $ 232,239

12 unchanged sentences

Revenue is subsequently recognized when revenue recognition criteria are met, generally when control of the product transfers to the customer.

The Company had contract liabilities of $ 3.7 million and $ 4.7 million as of November 30, 2025 and August 31, 2025, respectively.

Substantially all of the $ 4.7 million that was included in contract liabilities as of August 31, 2025 was recognized to revenue during the three months ended November 30, 2025.

The Company had contract liabilities of $ 4.7 million as of both February 28, 2026 and August 31, 2025, respectively.

All of the $ 4.7 million that was included in contract liabilities as of August 31, 2025 was recognized to revenue during the six months ended February 28, 2026.

These contract liabilities are recorded in accrued liabilities on the Company’s condensed consolidated balance sheets.

Contract assets are recorded if the Company has satisfied a performance obligation but does not yet have an unconditional right to consideration.

The Company did not have any contract assets as of November 30, 2025 and August 31, 2025.

The Company did not have any contract assets as of February 28, 2026 and August 31, 2025.

The Company has an unconditional right to payment for its trade and other accounts receivable on the Company’s condensed consolidated balance sheets.

These receivables are presented net of an allowance for credit losses of $ 1.8 million and $ 1.2 million as of November 30, 2025 and August 31, 2025, respectively.

These receivables are presented net of an allowance for credit losses of $ 1.9 million and $ 1.2 million as of February 28, 2026 and August 31, 2025, respectively.

Commitments and Contingencies

1 unchanged sentence

The Company has ongoing relationships with various suppliers, third-party contract manufacturers that manufacture the Company’s products, and third-party distribution centers that warehouse and ship the Company’s products to customers.

The contract manufacturers maintain title and control of certain raw materials and components, materials utilized in finished products, and the finished products themselves until shipment to the Company’s third-party distribution centers or customers in accordance with agreed-upon shipment terms.

customers in accordance with agreed-upon shipment terms.

The Company has minimum purchase obligations primarily consisting of volume commitments with certain third-party packagers.

5 unchanged sentences

The Company is subject to various claims, lawsuits, investigations and proceedings arising in the ordinary course of business, including but not limited to, product liability litigation and other claims and proceedings with respect to intellectual property, breach of contract, labor and employment, tax and other matters.

As of November 30, 2025, there were no significant unasserted claims or pending proceedings for claims against the Company that the Company believes will result in a probable loss.

As of February 28, 2026, there were no significant unasserted claims or pending proceedings for claims against the Company that the Company believes will result in a probable loss.

As to claims that the Company believes may result in a reasonably possible loss, the Company believes that no reasonably possible outcome of any such claim will have a materially adverse impact on the Company’s financial condition, results of operations or cash flows.

4 unchanged sentences

As a result of the Company’s insurance coverage, management believes that the estimated fair value of these indemnification agreements is minimal.

Thus, no liabilities have been recorded for these agreements as of November 30, 2025.

From time to time, the Company enters into indemnification agreements with certain parties in the ordinary course of business, including agreements with lenders, lessors, contract manufacturers, marketing distributors, customers and certain

Thus, no liabilities have been recorded for these agreements as of February 28, 2026.

Indemnification agreements are generally entered into in the context of the particular agreements and are provided in an attempt to allocate risk of loss in connection with the consummation of the underlying contractual arrangements.

Although the maximum amount of future payments that the Company could be required to make under these indemnification agreements is not capped, management believes that the Company maintains adequate levels of insurance coverage to protect the Company with respect to most potential claims arising from such agreements and that such agreements do not otherwise have value separate and apart from the liabilities incurred in the ordinary course of the Company’s business.

Thus, no liabilities have been recorded with respect to such indemnification agreements as of November 30, 2025.

Thus, no liabilities have been recorded with respect to such indemnification agreements as of February 28, 2026.

The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes.

Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter.

The provision for income taxes was 22.8 % and 22.0 % as a percentage of income before income taxes for the three months ended November 30, 2025 and 2024, respectively.

The 0.8 % increase in the effective tax rate from period to period was primarily due to the following impacts:

The provision (benefit) for income taxes was 21.4 % and ( 33.0 )% as a percentage of income before income taxes for the three months ended February 28, 2026 and 2025, respectively.

This 54.4 % increase in the effective tax rate from period to period was primarily due to the following impacts:

Description of impacts on the Company’s estimated annual effective tax rate Unfavorable/(Favorable)

Lower excess tax benefits from the settlements of stock-based equity awards in the first quarter of fiscal year 2026.

Lower accrual of interest on uncertain tax position in the first quarter of fiscal year 2026.

Increased taxable earnings in certain foreign jurisdictions with higher tax rates from period to period.

The expiration of the statute of limitations on the uncertain tax position associated with the Tax Cuts and Jobs Act’s mandatory onetime “toll tax” on unremitted foreign earnings released in fiscal year 2025

Non-recurring benefit received in the prior year from the settlement of stock-based equity awards

The provision (benefit) for income taxes was 22.0 % and ( 4.5 )% as a percentage of income before income taxes for the six months ended February 28, 2026 and 2025, respectively.

This 26.5 % increase in the effective tax rate from period to period was primarily due to the following impacts:

Description of impacts on the Company’s estimated annual effective tax rate Unfavorable/(Favorable)

Non-recurring benefit received in the prior year from the settlement of stock-based equity awards

The Company is subject to taxation in the U.S.

6 unchanged sentences

Audit outcomes and the timing of settlements are subject to significant uncertainty.

Income taxes receivable was $ 3.5 million and $ 4.9 million as of November 30, 2025 and August 31, 2025, respectively.

Income taxes receivable was $ 3.8 million and $ 4.9 million as of February 28, 2026 and August 31, 2025, respectively.

Income taxes receivable are included in other current assets in the Company’s condensed consolidated balance sheets.

12 unchanged sentences

For the Three Months Ended Americas EIMEA Asia-Pacific Total

November 30, 2025

February 28, 2026

Net sales $ 71,814 $ 64,869 $ 24,988 $ 161,671

11 unchanged sentences

GAAP Income from Operations $ 26,288

November 30, 2024

February 28, 2025

Net sales $ 65,529 $ 59,575 $ 21,000 $ 146,104

11 unchanged sentences

GAAP Income from Operations $ 23,280

(1) Department expenses consist of professional services associated with information systems, finance and legal, travel and meeting expenses, sales commissions, insurance, and other miscellaneous expenses as well as people costs which consist of salaries, stock-based compensation, fringe benefits and other miscellaneous people-costs.

For the Six Months Ended Americas EIMEA Asia-Pacific Total

February 28, 2026

Net sales $ 143,687 $ 123,544 $ 48,863 $ 316,094

Cost of products sold 67,247 51,947 20,127 139,321

Gross Profit $ 76,440 $ 71,597 $ 28,736 $ 176,773

Operating Expenses:

Department Expenses (1)

34,440 31,339 8,010 73,789

Advertising and sales promotion 6,982 7,157 2,873 17,012

Freight 4,363 3,486 1,084 8,933

Depreciation (in operating departments) and Amortization (2)

573 1,488 107 2,168

Income from operations - reportable segments $ 30,082 $ 28,127 $ 16,662 $ 74,871

Unallocated Corporate (3)

GAAP Income from Operations $ 49,546

February 28, 2025

Net sales $ 134,965 $ 117,058 $ 47,576 $ 299,599

Cost of products sold 67,116 49,190 19,490 135,796

Gross Profit $ 67,849 $ 67,868 $ 28,086 $ 163,803

Operating Expenses:

Department Expenses (1)

30,065 28,216 6,448 64,729

Advertising and sales promotion 6,750 6,119 2,928 15,797

Freight 4,644 3,180 1,082 8,906

Depreciation (in operating departments) and Amortization (2)

528 1,399 99 2,026

Income from operations - reportable segments $ 25,862 $ 28,954 $ 17,529 $ 72,345

Unallocated Corporate (3)

GAAP Income from Operations $ 48,402

(1) Department expenses consist of professional services associated with information systems, finance and legal, travel and meeting expenses, sales commissions, insurance, and other miscellaneous expenses as well as employee-related costs which consist of salaries, stock-based compensation, fringe benefits and other miscellaneous employee-related costs.

(2) Depreciation presented above includes depreciation in operating departments which excludes depreciation in cost of sales.

4 unchanged sentences

Dividend Declaration

On December 10, 2025, the Company’s Board approved an increase of 9 % in the regular quarterly cash dividend, increasing it from $ 0.94 per share to $ 1.02 per share.

The $ 1.02 per share dividend declared on December 10, 2025 is payable on January 30, 2026 to stockholders of record at the close of business on January 16, 2026.

On March 16, 2026, the Company’s Board declared a cash dividend of $ 1.02 per share payable on April 30, 2026 to stockholders of record at the close of business on April 17, 2026.

In March 2026, subsequent to the end of the second quarter of fiscal year 2026, the Company entered into a lease of a distribution center in the U.S.

and a lease of office space in Australia.

The Company will recognize approximately $ 5.0 million of rights and obligations in the next quarter.

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