What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-04-09 compared with 2026-01-08 · 274 added, 127 removed, 288 unchanged (58% of the section changed)

29 unchanged sentences

expected tax rates and the impact of tax legislation and regulatory action;

changes in the political conditions or relations between the United States and other nations;

changes in the geopolitics and political conditions or relations between the United States and other nations;

changes in trade policies and tariffs and the impact therefrom;

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changes in interest rates;

and forecasted foreign currency exchange rates and commodity prices.

We undertake no obligation to revise or update any forward-looking statements.

These forward-looking statements are generally identified with words such as “believe,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “aim,” “anticipate,” “target,” “estimate” and similar expressions.

and forecasted foreign currency exchange rates and commodity prices and specialty chemicals.

We undertake no obligation to revise or update any forward-looking statements.

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We own a wide range of well-known brands that include maintenance products and homecare and cleaning products:

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®.

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

Our products are sold in various locations around the world.

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We sell our products primarily through hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, warehouse club stores, farm supply stores, sport retailers, and independent bike dealers.

During the prior fiscal year 2025, certain assets of our homecare and cleaning product businesses in the Americas segment were reclassified to held for sale and they continue to be classified as held for sale as of November 30, 2025.

The Company sold its homecare and cleaning product brands in the EIMEA segment during the fourth quarter of fiscal year 2025.

These brands are included in fiscal year 2025 financial results but will not be included in fiscal year 2026 financial results.

The following summarizes the financial and operational highlights for our business during the three months ended November 30, 2025:

These brands are included in fiscal year 2025 financial results but are not included in fiscal year 2026 financial results.

The following summarizes the financial and operational highlights for our business during the six months ended February 28, 2026:

• Consolidated net sales increased $16.5 million or 6%, to $316.1 million compared to the corresponding period of the prior fiscal year.

Decreases in sales volume unfavorably impacted net sales by approximately $4.2 million from period to period, of which $1.6 million was related to the sale of our homecare and cleaning business at the end of fiscal year 2025.

Changes in foreign currency exchange rates from period to period had a favorable impact of $12.7 million on consolidated net sales for the first six months of fiscal year 2026.

On a constant currency basis, net sales would have increased by $3.8 million, or 1%, from period to period.

This favorable impact from changes in foreign currency exchange rates mainly came from our EIMEA segment, which accounted for 39% of our consolidated sales for the six months ended February 28, 2026.

Increases in the average selling price of our products positively impacted net sales by approximately $4.5 million from period to period.

Decreases in sales volume unfavorably impacted net sales by approximately $0.7 million from period to period, however, approximately $3.1 million of the decrease in sales volume for the six months ended February 28, 2026 was driven by the sale of our HCCP business in EIMEA during fiscal year 2025.

Therefore, sales volume would have increased $2.4 million for the first six months of fiscal year 2026 on a comparable basis to prior year.

Changes to net sales attributable to volumes and average selling price of our products are impacted by differences in sales mix related to products, markets and distribution channels from period to period.

In addition, changes in foreign currency exchange rates from period to period had a favorable impact of $3.4 million on consolidated net sales for the first three months of fiscal year 2026.

On a constant currency basis, net sales would have decreased by $2.4 million, or 2%, from period to period.

This favorable impact from changes in foreign currency exchange rates mainly came from our EIMEA segment, which accounted for 38% of our consolidated sales for the three months ended November 30, 2025.

• Gross profit as a percentage of net sales increased to 55.9% from 54.7% in the corresponding period of the prior fiscal year.

• Consolidated net income decreased $11.0 million, or 23%, compared to the corresponding period of the prior fiscal year.

During the second quarter of the prior fiscal year, we released an uncertain tax position that generated a favorable income tax adjustment of $11.9 million.

Excluding this one-time benefit from the prior fiscal year, net income would have increased $0.9 million, or 3%.

• Diluted earnings per common share were $2.78 versus $3.58 in the prior fiscal year period.

• During the three months ended November 30, 2025, we returned approximately $20.6 million to our stockholders through share repurchases and dividends.

As noted above, during the second quarter of the prior fiscal year, we released an uncertain tax position that generated a favorable income tax adjustment.

Excluding this one-time benefit, on a Non-GAAP basis, prior year adjusted diluted EPS was $2.71.

• During the six months ended February 28, 2026, we returned approximately $42.4 million to our stockholders through share repurchases and dividends.

Significant Developments

We are currently monitoring the geopolitical conflicts in the Middle East which could adversely impact our results.

Volatility in the price of oil impacts the cost of petroleum-based specialty chemicals included in our maintenance products.

Subsequent to the escalation of these conflicts that occurred in late February 2026, the cost of these petroleum-based specialty chemicals have increased and will impact our cost of products sold.

There is a delay before changes in costs of raw materials impact cost of products sold due to production and inventory life cycles.

We do not expect significant impacts to our cost of products sold until the fourth quarter of fiscal year 2026 based on current inventory levels and inventory life cycles.

Management is currently considering mitigation strategies to reduce the negative impacts these recent

geopolitical impacts will have on gross margin.

It is not possible to reliably estimate the impact on our gross margin, nor the length or severity of the impact.

While input costs other than petroleum-based specialty chemicals could increase in future periods, such increases have not significantly impacted the cost of our products to date.

In addition, these developments have caused supply chain disruptions within the EIMEA segment for our Middle East distribution network, impacting the sourcing of raw materials by certain of our third-party manufacturers as well as shipping routes to certain customers supplied within our Middle East distribution network.

Our net sales to these regions were approximately 3% of consolidated net sales for fiscal year 2025 and approximately 2% of consolidated net sales for the first half of fiscal year 2026.

While supply chain constraints may impact our ability to service these areas, we anticipate that demand for our product will not be negatively impacted.

We are actively managing these supply chain constraints and transportation disruptions through various temporary measures, such as utilizing different shipping routes within the region as well as working with our third-party manufacturers to ensure flexibility within our supply chain during these conflicts.

The severity and duration of these conditions and their effects on our supply chain and our cost of products sold remain uncertain and it is not possible to estimate the extent to which these conditions will impact our financial results and operations in future periods.

For further information, see our risk factors disclosed in Part I―Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the fiscal year ended August 31, 2025, which was filed with the SEC on October 27, 2025.

Results of Operations

Three Months Ended November 30, 2025 Compared to Three Months Ended November 30, 2024

Three and Six Months Ended February 28, 2026 Compared to Three and Six Months Ended February 28, 2025

Operating Items

The following table summarizes operating data for our consolidated operations (in thousands, except percentages and per share amounts):

Three Months Ended November 30,

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

2026 2025 Change from

Dollars Percent

Prior Year 2026 2025 Change from

Dollars Percent Dollars Percent

WD-40 Multi-Use Product $ 127,366 $ 113,692 $ 13,674 12 % $ 245,163 $ 232,239 $ 12,924 6 %

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Net income (2)

$ 20,318 $ 29,851 $ (9,533) (32) % $ 37,769 $ 48,776 $ (11,007) (23) %

EPS – diluted (3)

$ 1.50 $ 2.19 $ (0.69) (32) % $ 2.78 $ 3.58 $ (0.80) (22) %

Shares used in diluted EPS 13,508 13,572 (64) — % 13,529 13,572 (43) — %

(1) Homecare and cleaning products (“HCCP”).

Approximately $1.6 million of the decrease in net sales of HCCP was driven by the sale of our HCCP business in EIMEA which occurred at the end of fiscal year 2025.

Approximately $1.5 million and $3.1 million of the decrease in net sales of HCCP for the three and six months ended February 28, 2026, respectively, was driven by the sale of our HCCP business in EIMEA during fiscal year 2025.

(2) During the second quarter of fiscal year 2025, we released an uncertain tax position that generated a favorable income tax adjustment of $11.9 million.

Excluding this one-time benefit, on a non-GAAP basis, prior quarter and prior year net income was $17.9 million and $36.8 million for the three and six months ended February 28, 2025, respectively.

(3) Excluding the one-time tax benefit discussed above, on a non-GAAP basis, prior quarter and prior year adjusted diluted EPS was $1.32 and $2.71 for the three and six months ended February 28, 2025, respectively.

Net Sales by Segment

The following table summarizes net sales by segment (in thousands, except percentages):

Three Months Ended November 30,

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

2026 2025 Change from

Dollars Percent

Prior Year 2026 2025 Change from

Dollars Percent Dollars Percent

Americas $ 71,814 $ 65,529 $ 6,285 10 % $ 143,687 $ 134,965 $ 8,722 6 %

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Total $ 161,671 $ 146,104 $ 15,567 11 % $ 316,094 $ 299,599 $ 16,495 6 %

(1) EIMEA’s change to prior year was impacted by the sale of our HCCP business in EIMEA in late fiscal year 2025.

Net Sales would have increased $2.8 million and 5% excluding the impact of HCCP product sales from the prior fiscal year of $1.6 million.

(1) Prior fiscal year net sales include sales related to our EIMEA HCCP business, which was sold at the end of fiscal year 2025 and is no longer included in current year results.

The divestiture resulted in approximately $1.5 million and $3.1 million reduction in net sales for the three and six months ended February 28, 2026, respectively.

Americas Sales

The following table summarizes net sales by product line for the Americas segment, which includes the U.S., Canada and Latin America (in thousands, except percentages):

Three Months Ended November 30,

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

2026 2025 Change from

Dollars Percent

Prior Year 2026 2025 Change from

Dollars Percent Dollars Percent

WD-40 Multi-Use Product $ 56,041 $ 51,058 $ 4,983 10 % $ 110,625 $ 103,959 $ 6,666 6 %

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Change from Prior Year

First Quarter

First Quarter Second Quarter Year to Date

Increase in average selling price (1)

$ 0.6 $ 2.2 $ 2.8

Increase in sales volume (1)

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(1) Management’s estimates of changes in net sales attributable to volumes and the average selling price of our products are impacted by differences in sales mix related to products, markets and distribution channels from period to period.

Americas Sales – Three Months Ended – November 30, 2025 Compared to November 30, 2024

Americas Sales – Three Months Ended – February 28, 2026 Compared to February 28, 2025

Net sales in the Americas segment increased from period to period, highlighted by the following:

• WD-40 Multi-Use Product sales increased $1.7 million , or 3% , primarily due to increases in Latin America and U.S.

by $1.4 million and $0.3 million, respectively.

Latin America sales increased primarily due to a $1.2 million increase in Mexico, which was due to increased sales volume as a result of expanded distribution and successful promotional activities, as well as timing of customer orders.

Mexico sales also benefited from favorable period to period changes in foreign currency exchange rates.

The increase of Multi-Use Product sales in the U.S.

was primarily due to a marginal price increase implemented in the first quarter of fiscal year 2026, partially offset by lower volumes due to the timing of customer orders.

• WD-40 Specialist sales increased $1.2 million , or 14% , primarily due to increased online retail sales, new distribution and increased demand in the U.S.

• Other maintenance product sales remained relatively constant period over period.

• Homecare and cleaning product sales decreased $0.7 million, or 18%, primarily due to distribution changes and lower U.S.

demand caused by reduced advertising and promotional activities, as we focus on increasing sales of maintenance products under our four-by-four strategic framework.

• For the three months ended November 30, 2025, 72% of sales came from the U.S., and 28% of sales came from Canada and Latin America combined compared to the three months ended November 30, 2024 when 73% of sales came from the U.S., and 27% of sales came from Canada and Latin America.

• WD-40 Multi-Use Product sales increased $5.0 million, or 10%, due to the increase in the U.S.

of $5.0 million.

sales increased primarily due to higher sales volume from certain mass retailers and online retailers due to higher level of promotional activities and expanded distribution, as well as marginal price increases implemented in the first quarter of fiscal year 2026.

Net sales in Latin America remained relatively constant but were primarily impacted by favorable changes in foreign currency exchange rates.

On a constant currency basis, sales in Latin America would have decreased by approximately 5% period over period.

Latin America distributor markets increased due to expanded distribution period over period.

Sales in Mexico experienced decreased sales volume due to lower demand as a result of weak economic conditions and temporary delays in the supply chain.

Sales volumes in Brazil decreased primarily due to lower demand as customers adjust to increases in average selling price.

• WD-40 Specialist sales increased $1.3 million, or 17%, primarily due to increased sales volumes in the U.S.

driven by enhanced product placement and broader distribution at certain large retail customers.

Net sales in the U.S.

also increased due to continued increases in online retail sales in the fiscal year 2026.

• Other maintenance and homecare and cleaning product sales combined remained relatively constant from period to period.

• For the three months ended February 28, 2026, 72% of sales came from the U.S., and 28% of sales came from Canada and Latin America combined compared to the three months ended February 28, 2025 when 70% of sales came from the U.S., and 30% of sales came from Canada and Latin America.

Americas Sales – Six Months Ended – February 28, 2026 Compared to February 28, 2025

Net sales in the Americas segment increased from period to period, highlighted by the following:

• WD-40 Multi-Use Product sales increased $6.7 million , or 6% , primarily due to increases in the U.S.

and Latin America of $5.3 million and $1.5 million, respectively.

sales increased primarily due to increased online and large retail sales as well as higher sales volume due to higher level of promotional activities as discussed above in the section for the three months ended February 28, 2026.

Latin America sales increased primarily due to a $1.3 million increase in Mexico due to favorable period over period changes in foreign currency exchange rates, as well as slight increases due to expanded distribution and successful promotional activities.

• WD-40 Specialist sales increased $2.5 million , or 16% , primarily due to increased online retail sales, new distribution and increased demand in the U.S as discussed above in the section for the three months ended February 28, 2026.

• Other maintenance product sales increased $0.7 million, or 9%, primarily due to increases in sales volume in the U.S.

period over period.

• Homecare and cleaning product sales decreased $1.1 million, or 16%.

Our HCCP products are considered harvest brands, which continue to provide positive returns but have become a smaller part of the business as we continue to emphasize focus on sales growth of maintenance products.

We have continued to sell HCCP brand products but with a reduced level of marketing investment over time.

• For the six months ended February 28, 2026 and 2025, 72% of sales came from the U.S., and 28% of sales came from Canada and Latin America combined.

The following table summarizes net sales by product line for the EIMEA segment, which includes Europe, India, the Middle East and Africa (in thousands, except percentages):

Three Months Ended November 30,

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

2026 2025 Change from

Dollars Percent

Prior Year 2026 2025 Change from

Dollars Percent Dollars Percent

WD-40 Multi-Use Product $ 52,359 $ 46,406 $ 5,953 13 % $ 97,308 $ 91,272 $ 6,036 7 %

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Currency impact on current period – non-GAAP (2)

$ 7,366 $ 10,523

(1) During the fourth quarter of fiscal year 2025, we completed the sale of the homecare and cleaning product businesses in the EIMEA segment.

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Change from Prior Year

First Quarter

First Quarter Second Quarter Year to Date

Decrease in average selling price (1)

$ (0.2) $ (0.5) $ (0.7)

Decrease in sales volume due to sale of HCCP (2)

(1.6) (1.5) (3.1)

Decrease in sales volume (1)

(0.2) — (0.2)

Currency impact on current period 3.2 7.3 10.5

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(2) The Company sold its homecare and cleaning product brands in the EIMEA segment during the fourth quarter of fiscal year 2025.

These brands are included in fiscal year 2025 financial results but will not be included in fiscal year 2026 financial results.

These brands are included in fiscal year 2025 financial results but are not be included in fiscal year 2026 financial results.

The countries and regions in Europe where we sell through a direct sales force include the U.K., Italy, France, Iberia (which includes Spain and Portugal), DACH (which includes Germany, Austria and Switzerland) and Benelux (which includes Belgium, the Netherlands and Luxembourg).

The regions in the EIMEA segment where we sell through local distributors include the Middle East, Africa, India, Eastern and Northern Europe.

EIMEA Sales – Three Months Ended – November 30, 2025 Compared to November 30, 2024

EIMEA Sales – Three Months Ended – February 28, 2026 Compared to February 28, 2025

Net sales increased in the EIMEA segment from period to period, primarily due to the following:

• WD-40 Multi-Use Product sales increased $6.0 million, or 13%, due to favorable changes in foreign currency exchange rates.

On a constant currency basis, sales would have remained relatively constant period over period.

Our direct markets sales, particularly France and Iberia increased sales $2.1 million and $0.9 million, respectively, as successful promotional activities contributed to increased sales, specifically those sales in the hardware sector.

These increases in sales were entirely offset by decreased volumes in our distributor markets, in particular Saudi Arabia and the UAE region due to timing of customer orders as a result of strategic distribution changes we have made in the first half of fiscal year 2026.

For additional information regarding geopolitical events and their potential effect on our business in the Middle East, refer to “Significant Developments” above.

• WD-40 Specialist sales increased $1.2 million, or 14%, almost entirely due to favorable changes in foreign currency exchange rates.

On a constant currency basis, sales would have remained relatively constant period over period.

Net sales increased most significantly in France and Iberia as both regions sales benefited from strong marketing activities and new product launches within the quarter.

These increased sales were offset by decreased sales in our DACH region due to timing of customer orders.

• Other maintenance product sales remained relatively constant from period to period.

EIMEA Sales – Six Months Ended – February 28, 2026 Compared to February 28, 2025

Net sales increased in the EIMEA segment from period to period, highlighted by the following:

• WD-40 Multi-Use Product sales remained relatively constant period over period.

• WD-40 Multi-Use Product sales increased $6.0 million or 7%.

Net sales were positively impacted by favorable changes in foreign currency exchange rates.

Therefore, on a constant currency basis, sales would have decreased by approximately 5% period over period.

Sales decreased $2.1 million in our distributor markets, most significantly in Saudi Arabia and the UAE region which decreased $1.2 million and $0.9 million, respectively, due to a decrease in sales volumes from timing of customer orders.

This decrease in overall

distributor markets was partially offset by stronger sales in India which increased $1.4 million due to increased distribution.

Sales to our direct markets continued their strong growth carried over from the prior fiscal year, particularly those in Iberia, the DACH region and France, which increased $0.9 million, $0.6 million and $0.5 million, respectively.

• WD-40 Specialist product sales increased $2.1 million, or 27%, primarily due to increases in sales in France and Iberia of $0.8 million and $0.4 million, respectively.

Sales growth in France and Iberia benefited from strong sales volume growth due to increased promotional activities as well as new product launches in the first quarter of fiscal year 2026.

• Net sales were favorably impacted by $3.2 million across our various brands as a result of favorable changes in foreign currency exchange rates.

On a constant currency basis, sales in EIMEA would have decreased 3%.

On a constant currency basis, sales would have decreased by approximately 3% period over period.

Sales decreased most significantly in our distributor markets including Saudi Arabia and regions within the UAE due to the strategic distribution changes as discussed above in the section for the three months ended February 28, 2026.

These decreases were partially offset by higher sales in our direct markets particularly in France and Iberia due to the reasons discussed above in the section for the three months ended February 28, 2026.

• WD-40 Specialist product sales increased $3.3 million, or 20%.

Net sales were positively impacted by favorable changes in foreign currency exchange rates.

On a constant currency basis, sales would have increased by approximately 10% period over period.

Net sales increased most significantly in France and Iberia direct markets which increased $1.7 million and $0.7 million, respectively.

Sales growth in France and Iberia benefited from strong sales volume growth due to increased promotional activities as well as recent product launches.

• Other maintenance product sales remained relatively constant from period to period.

Asia-Pacific Sales

The following table summarizes net sales by product line for the Asia-Pacific segment, which includes Australia, China and other countries in the Asia region (in thousands, except percentages):

Three Months Ended November 30,

2025 2024 Dollars Percent

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

Prior Year Change from

2026 2025 Dollars Percent 2026 2025 Dollars Percent

WD-40 Multi-Use Product $ 18,966 $ 16,228 $ 2,738 17 % $ 37,230 $ 37,008 $ 222 1 %

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Change from Prior Year

First Quarter

First Quarter Second Quarter Year to Date

Increase in average selling price (1)

Decrease in sales volume (1)

$ 1.3 $ 1.1 $ 2.4

(Decrease) increase in sales volume (1)

(3.8) 2.2 (1.6)

Currency impact on current period (0.2) 0.7 0.5

Decrease in net sales $ (2.7)

(Decrease) increase in net sales $ (2.7) $ 4.0 $ 1.3

Asia-Pacific Sales – Three Months Ended – November 30, 2025 Compared to November 30, 2024

Net sales in the Asia-Pacific segment decreased from period to period, highlighted by the following:

• WD-40 Multi-Use Product sales decreased $2.5 million, or 12%, primarily due to a decrease in Asia distributor markets of $3.3 million partially offset by an increase in China of $0.8 million.

Asia distributor markets decreased as a result of lower volumes, primarily due to timing of customer orders from quarter to quarter as distributors that heavily participated in our promotional activities in the fourth quarter of fiscal year 2025 have been adjusting to more normal levels of inventory for our products in the first quarter of fiscal year 2026.

These decreases were

partially offset by increases in China due to increased sales volume from successful promotional programs and marketing activities as well as new distribution within the first quarter of fiscal year 2026.

Asia-Pacific Sales – Three Months Ended – February 28, 2026 Compared to February 28, 2025

Net sales in the Asia-Pacific segment increased from period to period, highlighted by the following:

• WD-40 Multi-Use Product sales increased $2.7 million, or 17%, primarily due to increases in Asia distributor markets and China of $1.3 million and $1.1 million, respectively.

Sales in Asia distributor markets increased due to successful promotional programs, particularly in Malaysia and the Philippines.

Sales in China increased due to increased sales volume from successful promotional programs and marketing activities as well as increased distribution, specifically through our online retailers and industrial channels.

• WD-40 Specialist sales increased $1.3 million, or 55%, primarily due to increased sales in China of $0.7 million as well as increased sales in Australia and Asia distributor markets which each increased $0.3 million.

• Other maintenance and homecare and cleaning product sales remained relatively constant from period to period.

Asia-Pacific Sales – Six Months Ended – February 28, 2026 Compared to February 28, 2025

Net sales in the Asia-Pacific segment increased from period to period, highlighted by the following:

• WD-40 Multi-Use Product sales remained relatively constant from period to period.

Net sales in China and Australia increased $1.8 million and $0.4 million, respectively, which were mostly offset by a decrease in Asia distributor markets of $2.0 million.

Net sales increased in China due to higher sales volume as a result of successful promotional programs and marketing activities, as well as increased distribution.

In the Asia distributor markets, many of our distributors were carrying high levels of inventory of our product after participating in successful promotional programs in fiscal year 2025 and reduced the volume of orders at the beginning of the fiscal year 2026 to adjust to more normal levels of inventory.

• WD-40 Specialist sales increased $1.4 million, or 25%, primarily due to an $0.8 million increase in China, as well as increases of $0.4 million and $0.3 million in our Asia distributor markets and Australia, respectively.

Sales in China increased due to increased sales volume from successful promotional programs and marketing activities as well as increased distribution.

• Other maintenance and homecare and cleaning product sales remained relatively constant from period to period.

The following general information is important when assessing fluctuations in our gross margin:

7 unchanged sentences

• Our gross profit and gross margin may not be comparable to those of other consumer product companies, since some of these companies include all costs related to distribution of their products in cost of products sold, whereas we exclude the portion associated with amounts paid to third parties for shipment to our customers from our distribution centers and contract manufacturers and include these costs in selling, general and administrative expenses.

These costs totaled $4.7 million and $4.6 million for the three months ended November 30, 2025 and 2024.

These costs totaled $4.3 million for each of the three months ended February 28, 2026 and 2025, respectively, $8.9 million for each of the six months ended February 28, 2026 and 2025, respectively.

The following table summarizes gross margin and gross profit (in thousands, except percentages):

Three Months Ended November 30,

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

2026 2025 Change from

Prior Year 2026 2025 Change from

Gross profit $ 89,941 $ 79,716 $ 10,225 $ 176,773 $ 163,803 $ 12,970

Gross margin 55.6 % 54.6 % 100 bps (1)

55.9 % 54.7 % 120 bps (1)

(1) Basis points (“bps”) change in gross margin.

Gross Margin – Three Months Ended – November 30, 2025 Compared to November 30, 2024

Gross margin increased 140 bps primarily due to the following favorable impacts:

Lower costs of specialty chemicals used in the formulation of our products and costs of aerosol cans.

Gross Margin – Three Months Ended – February 28, 2026 Compared to February 28, 2025

Gross margin increased 100 bps primarily due to the following impacts:

Favorable (unfavorable)

80 bps Lower costs of specialty chemicals used in the formulation of our products

Increases in average selling prices

Other miscellaneous input costs

During the prior fiscal year, certain assets of our homecare and cleaning product businesses in the Americas segment were reclassified to held for sale and they continue to be classified as held for sale as of February 28, 2026.

Gross margin excluding these products would have been 56.0% and 55.1% for the three months ended February 28, 2026 and 2025, respectively.

Gross Margin – Six Months Ended – February 28, 2026 Compared to February 28, 2025

Gross margin increased 120 bps primarily due to the following impacts:

Favorable (unfavorable)

Lower costs of specialty chemicals used in the formulation of our products

Increases in average selling prices.

Higher filling fees paid to our third-party contract manufacturers, primarily in the EIMEA segment.

Gross margin excluding these products would have been 0.5% higher during the three months ended November 30, 2025.

Gross margin excluding products from held for sale businesses would have been 56.4% and 55.2% for the six months ended February 28, 2026 and 2025, respectively.

Selling, General and Administrative (“SG&A”) Expenses

Three Months Ended November 30,

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

2026 2025 Change from

(in thousands) Dollars Percent

Prior Year 2026 2025 Change from

(in thousands) Dollars Percent Dollars Percent

SG&A expenses $ 54,782 $ 48,988 $ 5,794 12 % $ 110,118 $ 99,513 $ 10,605 11 %

% of net sales 33.9 % 33.5 % 34.8 % 33.2 %

SG&A Expenses – Three Months Ended – November 30, 2025 Compared to November 30, 2024

The increase in SG&A expenses was primarily due to increases in employee-related costs of $2.8 million due to annual compensation increases and higher headcount.

SG&A Expenses – Three Months Ended – February 28, 2026 Compared to February 28, 2025

The increase in SG&A expenses was primarily due to increases in employee-related costs of $2.3 million due to higher headcount, annual compensation increases, accrued incentive compensation, and higher stock-based compensation expense.

These higher employee-related costs include additional headcount to support various sales growth initiatives identified within our strategic framework, as well as headcount related to the enhancement of our information systems.

Software licenses and fees increased expenses $0.4 million primarily due to increased users and costs related to cloud computing solutions across all regions.

Unfavorable changes in foreign currency exchange rates increased SG&A expenses by $2.5 million.

On a constant currency basis, SG&A expenses would have increased by 7% period to period.

SG&A Expenses – Six Months Ended – February 28, 2026 Compared to February 28, 2025

The increase in SG&A expenses was primarily due to increases in employee-related costs of $5.1 million due to higher headcount, annual compensation increases, accrued incentive compensation, and higher stock-based compensation expense.

These higher employee-related costs are to support various sales growth initiatives identified within our strategic framework and the enhancement of our information systems.

SG&A also increased by $1.2 million due to higher travel and meeting expense across all three segments primarily in support of growth related initiatives.

In addition, changes in foreign currency exchange rates increased SG&A expenses by $1.0 million, primarily in our EIMEA segment.

Software licenses and fees increased expenses $0.7 million primarily due to increased users and costs related to cloud computing solutions across all regions.

Unfavorable changes in foreign currency exchange rates increased SG&A expenses by $3.6 million.

On a constant currency basis, SG&A expenses would have increased by 7% period to period.

We continued our research and development investment, the majority of which is associated with our maintenance products, including efforts focused on sustainability as well as our focus on innovation and renovation of our products.

Research and development costs were $1.9 million for both the three months ended November 30, 2025 and 2024.

Research and development costs were $2.0 million for both the three months ended February 28, 2026 and 2025, respectively, and $4.0 million and $3.9 million for the six months ended February 28, 2026 and 2025, respectively.

Our research and development team engages in consumer research, environmental and sustainability initiatives, product development, product improvements and testing activities.

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Advertising and Sales Promotion (“A&P”) Expenses

Three Months Ended November 30,

(in thousands) 2025 2024 Dollars Percent

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

Prior Year Change from

(in thousands) 2026 2025 Dollars Percent 2026 2025 Dollars Percent

A&P expenses $ 8,823 $ 7,404 $ 1,419 19 % $ 17,012 $ 15,797 $ 1,215 8 %

% of net sales 5.5 % 5.1 % 5.4 % 5.3 %

A&P Expenses – Three Months Ended – November 30, 2025 Compared to November 30, 2024

The decrease in A&P expenses was primarily due to a slightly lower level of promotional programs and marketing support, particularly in the Americas segment.

Total promotional costs recorded as a reduction to sales were $9.0 million and $8.8 million for the three months ended November 30, 2025 and 2024, respectively.

Therefore, our total expenditures on A&P activities were $17.2 million for both the three months ended November 30, 2025 and 2024.

A&P Expenses – Three M onths Ended – February 28, 2026 Compared to February 28, 2025

The increase in A&P expenses was primarily due to a higher level of promotional programs and marketing support, particularly in the Americas and EIMEA segments.

Unfavorable changes in foreign currency exchange rates increased A&P expenses by $0.5 million.

On a constant currency basis, A&P expenses would have increased by 12% period to period.

As a percentage of net sales, A&P expenses may fluctuate period to period based upon the type of marketing activities we employ and the period in which the costs are incurred.

Total promotional costs recorded as a reduction to sales were $8.7 million and $7.7 million for the three months ended February 28, 2026 and 2025, respectively.

Therefore, our total expenditures on A&P activities were $17.5 million and $15.1 million for the three months ended February 28, 2026 and 2025, respectively.

A&P Expenses – Six Months Ended – February 28, 2026 Compared to February 28, 2025

The increase in A&P expenses was primarily due to a higher level of promotional programs and marketing support, particularly in the EIMEA segment.

Unfavorable changes in foreign currency exchange rates increased A&P expenses by $0.7 million.

On a constant currency basis, A&P expenses would have increased by 3% period to period.

Total promotional costs recorded as a reduction to sales were $17.7 million and $16.5 million for the six months ended February 28, 2026 and 2025, respectively.

Therefore, our total expenditures on A&P activities were $34.7 million and $32.3 million for the six months ended February 28, 2026 and 2025, respectively.

Income from Operations by Segment

The following table summarizes income from operations by segment (in thousands, except percentages):

Three Months Ended November 30,

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

2026 2025 Change from

Dollars Percent

Prior Year 2026 2025 Change from

Dollars Percent Dollars Percent

Americas $ 15,043 $ 13,210 $ 1,833 14 % $ 30,082 $ 25,862 $ 4,220 16 %

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These expenses are reported separate from our identified segments and are included in selling, general and administrative expenses on our condensed consolidated statements of operations.

Americas Operating Income – Three Months Ended – November 30, 2025 Compared to November 30, 2024

Income from operations for the Americas increased to $15.0 million, up $2.4 million, or 19%, primarily due to an increase in sales of $2.4 million and a higher gross margin partially offset by higher operating expenses.

Gross margin for the Americas segment increased from 50.4% to 53.3%, primarily due to the favorable impact of increases in average selling prices and decreases in the costs of petroleum-based specialty chemicals and aerosol cans.

Operating expenses increased $0.9 million primarily due to higher employee-related costs as a result of increased headcount and annual compensation increases, partially offset by a decrease in A&P expense.

In addition, operating expenses increased due to a higher level of travel and meeting expenses.

Americas Operating Income – Three Months Ended – February 28, 2026 Compared to February 28, 2025

Income from operations for the Americas segment increased to $15.0 million, up $1.8 million, or 14.0%, primarily due to a $6.3 million increase in sales and a higher gross margin, which was partially offset by higher operating expenses.

Gross margin for the Americas segment increased from 50.1% to 53.1%, primarily due to the favorable impact of increases in average selling prices, as well as decreases in the costs of petroleum-based specialty chemicals.

Operating expenses increased $3.5 million primarily due to employee-related costs as a result of increased headcount, higher accrued incentive compensation and annual compensation increases, as well as a higher level of advertising and promotion expense.

Operating income as a percentage of net sales increased from 20.2% to 20.9% period over period.

EIMEA Operating Income – Three Months Ended – November 30, 2025 Compared to November 30, 2024

Income from operations for the EIMEA segment decreased to $12.5 million, down $1.2 million, or 9%, primarily due to higher operating expenses, partially offset by a $1.2 million increase in sales and a higher gross margin.

Gross margin for the EIMEA segment increased from 57.8% to 58.7% primarily due to the favorable impact of foreign exchange rates pertaining to input costs from period to period as well as decreases in the costs of petroleum-based specialty chemicals, partially offset by higher third party manufacturing fees.

Operating expenses increased $2.4 million primarily due to higher employee-related costs as a result of increased headcount and annual compensation increases as well as a higher level of A&P expenses from period to period.

Americas Operating Income – Six Months Ended – February 28, 2026 Compared to February 28, 2025

Income from operations for the Americas segment increased to $30.1 million, up $4.2 million, or 16%, primarily due to an increase in sales of $8.7 million and a higher gross margin, which was partially offset by higher operating expenses.

Gross margin for the Americas segment increased from 50.3% to 53.2%, primarily due to the favorable impact of increases in average selling prices and lower level of discounts that we gave to our customers, as well as decreases in the costs of petroleum-based specialty chemicals.

Operating expenses increased $4.4 million primarily due to higher employee-related costs as a result of increased headcount, higher accrued incentive compensation and annual compensation increases.

In addition, operating expenses increased due to a higher level of professional service costs and travel and meeting expenses.

Operating income as a percentage of net sales increased from 19.2% to 20.9% period over period.

EIMEA Operating Income – Three Months Ended – February 28, 2026 Compared to February 28, 2025

Income from operations for the EIMEA segment increased to $15.7 million, up $0.4 million, or 2%, primarily due to an increase in sales of $5.3 million partially offset by higher operating expenses.

Operating expenses increased $2.1 million primarily due to higher employee-related costs as a result of increased headcount and annual compensation increases, as well as a higher level of A&P expenses and freight.

Gross margin for the EIMEA segment decreased from 58.1% to 57.2% primarily due to higher filling and warehousing fees paid to our third party manufacturer partially offset by decreases in the costs of petroleum-based specialty chemicals.

Operating income as a percentage of net sales decreased from 25.6% to 24.1% period over period.

Asia-Pacific Operating Income – Three Months Ended – November 30, 2025 Compared to November 30, 2024

Income from operations for the Asia-Pacific segment decreased to $8.0 million, down $2.2 million, or 22%, due to higher operating expenses, lower sales and lower gross margin.

Gross margin for the Asia-Pacific segment decreased from 59.6% to 58.9% primarily due to the unfavorable impacts from higher discounts as well as changes in product and sales mix.

Operating expenses increased $0.5 million primarily due to higher travel and meeting expenses.

EIMEA Operating Income – Six Months Ended – February 28, 2026 Compared to February 28, 2025

Income from operations for the EIMEA segment decreased to $28.1 million, down $0.8 million, or 3%, primarily due to higher operating expenses, partially offset by a $6.5 million increase in sales.

Gross margin for the EIMEA segment remained constant at 58.0% for the six months ended February 28, 2026 and 2025.

Operating expenses increased $4.6 million primarily due to higher employee-related costs as a result of increased headcount and annual compensation increases, as well as a higher level of A&P expenses and freight.

Operating income as a percentage of net sales decreased from 24.7% to 22.8% period over period.

Asia-Pacific Operating Income – Three Months Ended – February 28, 2026 Compared to February 28, 2025

Income from operations for the Asia-Pacific segment increased to $8.7 million, up $1.3 million, or 18%, primarily due to a $4.0 million increase in sales and a slightly higher gross margin, partially offset by higher operating expenses.

Gross margin for the Asia-Pacific segment increased from 58.4% to 58.7%, primarily due to favorable changes in sales mix and market mix from period to period.

Operating expenses increased $1.1 million primarily due to higher employee-related cost.

Operating income as a percentage of net sales decreased slightly from 35.0% to 34.8%.

Asia-Pacific Operating Income – Six Months Ended – February 28, 2026 Compared to February 28, 2025

Income from operations for the Asia-Pacific segment decreased to $16.7 million, down $0.9 million, or 5%, due to higher operating expenses and slightly lower gross margin, partially offset by an increase in sales.

Gross margin for the Asia-Pacific segment decreased from 59.0% to 58.8%, primarily due to favorable changes in sales mix and market mix from period to period.

Operating expenses increased $1.5 million primarily due to higher employee-related costs as a result of increased headcount and annual compensation increases, as well as a higher level of travel and meeting expenses.

Operating income as a percentage of net sales decreased from 36.8% to 34.1% period over period.

Unallocated Corporate

Unallocated Corporate Expenses – Three Months Ended – November 30, 2025 Compared to November 30, 2024

Unallocated corporate expenses increased to $12.2 million, up $0.8 million, or 7%, primarily due to higher employee-related costs as a result of increased headcount and annual compensation increases, as well as higher accrued incentive compensation costs.

Unallocated Corporate Expenses – Three Months Ended – February 28, 2026 Compared to February 28, 2025

Unallocated corporate expenses increased to $13.1 million, up $0.5 million, or 4%, primarily due to higher employee-related costs as a result of increased headcount and annual compensation increases.

Unallocated Corporate Expenses – Six Months Ended – February 28, 2026 Compared to February 28, 2025

Unallocated corporate expenses increased to $25.3 million, up $1.4 million, or 6%, primarily due to higher employee-related costs as a result of increased headcount and annual compensation increases, as well as higher stocked-based compensation expense.

Non-Operating Items

The following table summarizes non-operating income and expenses for our consolidated operations (in thousands):

Three Months Ended November 30,

2025 2024 Change

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

2026 2025 Change 2026 2025 Change

Interest income $ 154 $ 106 $ 48 $ 333 $ 254 $ 79

Interest expense $ 666 $ 1,021 $ (355) $ 1,314 $ 1,894 $ (580)

Other expense, net $ (197) $ (141) $ (56)

Provision for income taxes $ 5,141 $ 5,331 $ (190)

Provision for Income Taxes

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

Other income (expense), net $ 78 $ 74 $ 4 $ (119) $ (67) $ (52)

Provision (benefit) for income taxes $ 5,536 $ (7,412) $ 12,948 $ 10,677 $ (2,081) $ 12,758

Provision (benefit) for Income Taxes

The provision (benefit) for income taxes was 21.4% and (33.0)% of income before income taxes for the three months ended February 28, 2026 and 2025, respectively, and 22.0% and (4.5)% of income before income taxes for the six months ended February 28, 2026 and 2025, respectively.

Descriptions of impacts on our effective income tax rate are incorporated by reference to Part I—Item 1, “Notes to Condensed Consolidated Financial Statements” Note 13 — Income Taxes included in this report.

Net income decreased 8% to $17.5 million, or $1.28 per common share on a fully diluted basis, for the three months ended November 30, 2025 compared to $18.9 million, or $1.39 per common share on a fully diluted basis, for the corresponding period of the prior fiscal year.

Changes in foreign currency exchange rates from period to period had a favorable impact of $0.5 million on consolidated net income for three months ended November 30, 2025.

Thus, on a constant currency basis, net income would have decreased $2.0 million, or 11%, from period to period.

Net income decreased $9.5 million, or 32% to $20.3 million, or $1.50 per common share on a fully diluted basis, for the three months ended February 28, 2026 compared to $29.9 million, or $2.19 per common share on a fully diluted basis, for the three months ended February 28, 2025.

On a constant currency basis and excluding the prior period one-time tax benefit of $11.9 million as discussed in Note 13 to the condensed consolidated financial statements, net income would have increased $0.8 million, or 5%, from period to period.

Net income decreased $11.0 million , or 23% to $37.8 million, or $2.78 per common share on a fully diluted basis, for the six months ended February 28, 2026 compared to $48.8 million, or $3.58 per common share on a fully diluted basis, for the corresponding period of the prior fiscal year.

On a constant currency basis and excluding the prior period one-time tax benefit of $11.9 million as discussed in Note 13 to the condensed consolidated financial statements, net income would have decreased $1.2 million, or 3%, from period to period.

Performance Measures and Non-GAAP Reconciliations

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The following table summarizes the results of these performance measures:

Three Months Ended November 30,

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

2026 2025 2026 2025

Gross margin – GAAP 56 % 55 % 56 % 55 %

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Adjusted EBITDA as a percentage of net sales – non-GAAP (1)

18 % 18 % 17 % 18 %

(1) Percentages may not aggregate to Adjusted EBITDA percentage due to rounding and because amounts recorded in other income (expense), net on our condensed consolidated statements of operations are not included as an adjustment to earnings in the Adjusted EBITDA calculation.

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Cost of Doing Business (in thousands, except percentages)

Three Months Ended November 30,

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

2026 2025 2026 2025

Total operating expenses – GAAP $ 63,653 $ 56,436 $ 127,227 $ 115,401

Amortization (1) (in operating departments)

(547) (462) (1,009) (926)

Depreciation (in operating departments) (989) (858) (1,951) (1,815)

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Cost of doing business as a percentage of net sales – non-GAAP

38 % 38 % 39 % 38 %

(1) Includes amortization of definite-lived intangible assets and cloud computing amortization.

Adjusted EBITDA (in thousands, except percentages)

Three Months Ended November 30,

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

2026 2025 2026 2025

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

Provision for income taxes 5,141 5,331

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

Interest income (154) (106) (333) (254)

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Amortization (1)(2)

643 462 1,201 926

Depreciation (2)

2,228 1,943 4,186 3,971

Adjusted EBITDA $ 29,237 $ 25,759 $ 54,814 $ 53,232

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(2) Includes amortization and depreciation presented in both cost of products sold and operating departments.

During the second quarter of fiscal year 2025 we released a previously unrecognized tax benefit associated with the Tax Cuts and Jobs Act of 2017 mandatory “toll tax” on unremitted foreign earnings.

This item is infrequent in nature and not reflective of the underlying operational results of our business.

We have included a non-GAAP measure of Adjusted EPS which is defined as diluted EPS less benefits associated with this toll tax on unremitted earnings.

The following is a reconciliation of diluted EPS to Adjusted EPS:

Three Months Ended February 28,

Six Months Ended February 28,

Diluted EPS - GAAP $ 1.50 $ 2.19 $ 2.78 $ 3.58

Release of Uncertain Tax Position - Tax Cut and Jobs Act (1)

— (0.87) — (0.87)

Adjusted diluted EPS - Non-GAAP $ 1.50 $ 1.32 $ 2.78 $ 2.71

(1) Includes the tax impact on adjustment

Liquidity and Capital Resources

Our financial condition and liquidity remain strong.

Although there continues to be uncertainty related to adverse global economic conditions, volatility in financial markets, the current inflationary environment and their impacts on our future results, we believe our efficient business model positions us to manage our business through such situations.

Although there continues to be uncertainty related to adverse global economic conditions, volatility in financial markets, the current inflationary environment and their impacts on our future

results, we believe our efficient business model positions us to manage our business through such situations.

We continue to manage all aspects of our business including, but not limited to, monitoring our liquidity, the financial health of our customers, suppliers and other third-party relationships, implementing gross margin enhancement strategies and developing new opportunities for growth.

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Outstanding draws for which we have both 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 entirely denominated in U.S.

In the United States, we held $65.6 million in fixed rate long-term borrowings as of November 30, 2025, consisting of senior notes under our Note Agreement.

We paid $0.4 million in principal payments on our Series A Notes during the first three months of fiscal year 2026.

In the United States, we held $65.6 million in fixed rate long-term borrowings as of February 28, 2026, consisting of senior notes under our Note Agreement.

We paid $0.4 million in principal payments on our Series A Notes during the first half of fiscal year 2026.

There were no other letters of credit outstanding or restrictions on the amount available on our line of credit or notes.

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See Note 8 — Debt incorporated by reference to Part I—Item 1, “Notes to Condensed Consolidated Financial Statements” for additional information on these agreements for additional information on these financial covenants.

At November 30, 2025, we were in compliance with all material debt covenants.

At February 28, 2026, we were in compliance with all material debt covenants.

We continue to monitor our compliance with all debt covenants and, at the present time, we believe that the likelihood of being unable to satisfy all material covenants is remote.

At November 30, 2025, we had a total of $48.6 million in cash and cash equivalents.

At February 28, 2026, we had a total of $50.3 million in cash and cash equivalents.

We do not foresee any ongoing issues with repaying our borrowings and we closely monitor the use of this credit facility.

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On June 16, 2025, the Board approved the extension of the expiration date to August 31, 2026 for the 2023 Repurchase Plan, which became effective on September 1, 2023 and was set to expire August 31, 2025.

We are authorized to acquire up to $50.0 million of our outstanding shares through this expiration date of August 31, 2026, of which $21.8 million remains available for the repurchase of shares of common stock as of November 30, 2025.

We are authorized to acquire up to $50.0 million of our outstanding shares through this expiration date of August 31, 2026, of which $13.8 million remains available for the repurchase of shares of common stock as of February 28, 2026.

The following table summarizes our cash flows by category for the periods presented (in thousands):

Three Months Ended November 30,

Six Months Ended February 28,

2026 2025 Change

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Operating Activities

Net cash provided by operating activities decreased $4.9 million to $10.0 million for the three months ended November 30, 2025.

Net cash provided by operating activities increased $1.4 million to $24.3 million for the six months ended February 28, 2026.

Cash flows from operating activities depend heavily on operating performance and changes in working capital.

Our primary source of operating cash flows for the three months ended November 30, 2025 was net income of $17.5 million, which decreased approximately $1.5 million from period to period.

Changes in our working capital, which decreased net cash provided by operating activities, were primarily attributable to unfavorable changes in accounts payable and accrued liabilities, partially offset by favorable changes in trade and other accounts receivable balances, as well as favorable changes in long-term liabilities and income taxes payable.

Our primary source of operating cash flows for the six months ended February 28, 2026 was net income of $37.8 million, which

decreased approximately $11.0 million from period to period primarily due to the release of the uncertain tax position in the second quarter of the prior fiscal year as discussed in Note 13 to the condensed consolidated financial statements.

Excluding this one-time benefit, net income would have increased $0.9 million.

Changes in our working capital remained relatively constant from period to period.

Changes in working capital balances depend heavily on the impact of timing of payments made to vendors and tax authorities as well as collections from customers.

Investing Activities

Net cash used in investing activities remained relatively constant from period to period.

Net cash used in investing activities increased $0.5 million to $2.3 million for the six months ended February 28, 2026, primarily due to a higher level of manufacturing-related capital expenditures within the U.S.

from period to period.

Financing Activities

Net cash used in financing activities increased $14.6 million to $18.7 million for the three months ended November 30, 2025 primarily due to net proceeds of $4.5 million on our revolving credit facility during the first three months of the fiscal year, compared to net proceeds of $14.8 million in the corresponding period of the prior fiscal year.

Increases of treasury stock repurchases of $4.2 million also increased net cash used in financing activities for the first quarter of fiscal year 2026.

Net cash used in financing activities increased $18.0 million to $30.7 million for the six months ended February 28, 2026 primarily due to increases of treasury stock repurchases of $9.1 million and a decrease in net proceeds from our revolving credit facility of $7.7 million.

During the first six months of the fiscal year, net proceeds from our revolving credit facility were $14.4 million compared to $22.1 million in the corresponding period of the prior fiscal year.

Increases in dividends paid to our stockholders of $1.8 million also increased net cash used in financing activities for the first half of fiscal year 2026.

Effect of Exchange Rate Changes

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The net effect of exchange rate changes on cash and cash equivalents, when expressed in U.S.

Dollar terms, was a decrease in cash of $0.1 million for the three months ended November 30, 2025 as compared to a decrease in cash of $2.1 million for the three months ended November 30, 2024.

Dollar terms, was an increase in cash of $0.9 million for the six months ended February 28, 2026 as compared to a decrease in cash of $2.2 million for the six months ended February 28, 2025.

These changes were primarily due to fluctuations in various foreign currency exchange rates from period to period, but the majority is related to the fluctuations in the Euro against the U.S.

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The information required by this item is incorporated by reference to Part I—Item 1, “Notes to Condensed Consolidated Financial Statements” Note 9 — Share Repurchase Plan included in this report.

On December 10, 2025, the Company’s Board declared a cash dividend of $1.02 per share 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.

Critical Accounting Estimates

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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