Financial Performance - Net sales for the three months ended January 3, 2026, increased by $93.8 million, or 9.6%, compared to the same period in 2024, reaching $1,069.9 million[83]. - Operating income for the three months ended January 3, 2026, increased by $7.6 million, or 16.2%, to $54.5 million, with an operating margin of 5.1%[94]. - Net income for the three months ended January 3, 2026, rose by $3.9 million, or 10.5%, to $41.2 million, primarily due to increased operating income[99]. - Diluted earnings per share increased to $1.51 for the three months ended January 3, 2026, up from $1.34 in the prior year[100]. Segment Performance - In the AMER segment, net sales increased by $70.9 million, or 25.9%, driven by production ramps of new products and increased customer demand[86]. - In the APAC segment, net sales increased by $4.6 million, or 0.8%, with production ramps partially offset by customer disengagements[87]. - In the EMEA segment, net sales increased by $17.2 million, or 17.0%, attributed to production ramps of new products[88]. Profitability and Margins - Gross profit for the three months ended January 3, 2026, increased by $5.4 million, or 5.4%, with a gross margin of 9.9%, down 40 basis points from the previous year[93]. - Cost of sales increased by $88.3 million, or 10.1%, primarily due to higher material and component costs[91]. Cash Flow and Liquidity - Cash and cash equivalents as of January 3, 2026, were $249.4 million, down from $306.8 million as of September 27, 2025[106]. - Cash flows used in operating activities for the three months ended January 3, 2026, were $(15.4) million, compared to $53.6 million for the same period in 2024[108]. - Free Cash Flow (FCF) for the three months ended January 3, 2026, was $(50.6) million, a decrease of $77.7 million compared to $27.1 million for the same period in 2024[114]. - Cash flows used in investing activities increased to $35.1 million for the three months ended January 3, 2026, from $26.4 million in the same period in 2024[117]. - Cash flows used in financing activities were $8.0 million for the three months ended January 3, 2026, compared to $52.8 million for the same period in 2024[119]. Capital Expenditures and Investments - Capital expenditures for fiscal 2026 are estimated to be approximately $100.0 million to $120.0 million to support new program ramps and replace older equipment[118]. - As of January 3, 2026, 91% of cash and cash equivalents were held outside the U.S. by foreign subsidiaries[107]. - The company has a share repurchase program with $62.6 million of authority remaining under the 2026 Program as of January 3, 2026[121]. Currency and Interest Rate Risks - As of January 3, 2026, 10% of net sales and 17% of total costs were denominated in currencies other than the U.S. dollar[132]. - A 10.0% change in the value of the U.S. dollar relative to other transactional currencies would not have a material effect on the company's financial position, results of operations, or cash flows[132]. - The only material interest rate risk as of January 3, 2026, was associated with the Credit Facility, which has various interest rate options based on different benchmarks[134]. - The borrowing rate under the Credit Facility was SOFR plus 1.00% as of January 3, 2026[135]. - Borrowings under the 2018 NPA are based on a fixed interest rate, mitigating much of the company's interest rate risk[135]. - A 10.0% change in interest rates would not have a material effect on the company's financial position, results of operations, or cash flows[135].

Financial Performance - Net loss for the six months ended December 31, 2025, was $407,985, compared to a net loss of $415,996 for the same period in 2024, showing a slight improvement of 2.4%[13] - The net loss from continuing operations attributable to common shareholders for the three months ended December 31, 2025, was $241.8 million, compared to a loss of $242.7 million in the same period of 2024[26] - The net loss for the three months ended December 31, 2025, was $242,166,000, slightly improved from a net loss of $243,420,000 in the same quarter of 2024[72] Revenue - For the three months ended December 31, 2025, total revenues increased to $198.9 million, up 11% from $179.1 million in the same period of 2024[23] - U.S. assisted tax preparation revenues rose to $55.9 million, a 15.5% increase compared to $48.4 million in Q2 FY2025[23] - International revenues for the three months ended December 31, 2025, were $34.7 million, an increase from $31.8 million in the same period of 2024[23] Assets and Liabilities - Total assets decreased to $2,930,010, down from $3,263,898 as of June 30, 2025, representing a decline of approximately 10.2%[11] - Total liabilities increased to $3,753,088, up from $3,175,002, indicating a rise of about 18.1%[11] - Total stockholders' equity showed a deficiency of $823,078 as of December 31, 2025, compared to a positive equity of $88,896 as of June 30, 2025[11] Cash Flow - Cash and cash equivalents decreased to $349,194 from $983,277, a reduction of approximately 64.5%[11] - Net cash used in operating activities was $970,788 for the six months ended December 31, 2025, compared to $895,638 for the same period in 2024, reflecting an increase of approximately 8.4%[13] - The company repurchased and retired common shares amounting to $404,118 during the reporting period[14] Stock and Dividends - Cash dividends declared were $0.42 per share, totaling $53,215 for the period[14] - The company declared cash dividends of $0.375 per share, totaling $50.2 million for the six months ended December 31, 2025[23] - The company repurchased common stock totaling $412,645,000 during the six months ended December 31, 2025[13] Credit and Receivables - The company reported a provision for credit losses of $21,144, slightly up from $20,727 in the previous year[13] - Loans to franchisees with a principal balance more than 90 days past due were $3.0 million as of December 31, 2025[30] - The net balance of Emerald Advance® receivables was $311.4 million, with $36.5 million classified as non-accrual[34] Goodwill and Intangible Assets - Goodwill increased to $953.9 million as of December 31, 2025, following acquisitions totaling $15.7 million during the period[36] - Amortization of intangible assets for the six months ended December 31, 2025, was $22.4 million, compared to $25.0 million for the same period in 2024[38] Debt and Financing - Total long-term debt rose to $2.4 billion as of December 31, 2025, compared to $1.5 billion as of June 30, 2025[40] - The company issued $350 million of 5.375% Senior Notes due September 15, 2032, to refinance existing debt and for general corporate purposes[40] - The outstanding balance under the 2025 CLOC was $945.0 million as of December 31, 2025, with no limitations imposed by the debt-to-EBITDA covenant[45] Tax and Liabilities - The effective tax rate for continuing operations was 24.0% for the six months ended December 31, 2025, consistent with the same period in 2024[47] - The estimated liability related to the 100% accuracy guarantee was $10.9 million as of December 31, 2025, down from $11.4 million as of June 30, 2025[49] - Estimated liabilities related to acquisitions amounted to $36.9 million as of December 31, 2025[50] Operational Metrics - The Chief Operating Decision Maker uses consolidated revenues, operating expenses, net income, and EBITDA as key financial metrics for evaluating performance and growth opportunities[69] - Total operating expenses for the six months ended December 31, 2025, were $908,326,000, compared to $894,502,000 for the same period in 2024, marking a 1.5% increase[72] - The total compensation and benefits expense was $207,171,000 for the three months ended December 31, 2025, compared to $198,698,000 in the same period of 2024[72]

Financial Performance - Q2 2026 reported net revenue was $1,678.6 million, a 1% increase year-over-year, but a 3% decline on a like-for-like (LFL) basis[6] - Prestige net revenue was $1,133.6 million, accounting for 68% of total sales, with a 2% increase reported but a 2% decline on an LFL basis[6] - Consumer Beauty net revenue decreased to $545.0 million, representing 32% of total sales, with a 2% decline reported and a 6% decline on an LFL basis[6] - Reported operating income was $148.2 million, down 45% year-over-year, resulting in an operating margin of 8.8%[6] - The company reported a net loss of $126.9 million for Q2 2026, compared to a net income of $20.4 million in the prior year, leading to a net loss margin of 7.6%[6] - Adjusted EBITDA for Q2 2026 was $330.2 million, a 15% decrease year-over-year, with an adjusted EBITDA margin of 19.7%[6] - Fiscal year-to-date reported loss per share of $0.07, deteriorating from reported EPS of $0.11 in the prior year[19] - 2Q26 adjusted operating income of $274.3 million, down 18% from $333.7 million in the prior year, with an adjusted operating margin of 16.3%[24] - 2Q26 adjusted EBITDA of $330.2 million decreased 15% from $390.7 million in the prior year, with an adjusted EBITDA margin of 19.7%[24] - 2Q26 adjusted net income of $119.7 million increased from $98.8 million in the prior year, with an adjusted net income margin of 7.1%[24] Debt and Financial Position - Total debt at quarter-end was $3,038.1 million, with financial net debt at $2,601.4 million, resulting in a financial leverage ratio of 2.7x[7] - Coty sold its remaining 25.8% stake in Wella for $750 million, using most proceeds to pay down long-term debt[12] - The company reported a diluted EPS of $(0.14) for the three months ended December 31, 2025, compared to $0.02 in the same period of 2024[59] - Coty Inc.'s total debt as of December 31, 2025, was $3,038.1 million, with financial net debt amounting to $2,601.4 million after accounting for cash and cash equivalents of $436.7 million[82] - Long-term debt decreased to $2,986.8 million as of December 31, 2025, from $3,955.5 million as of June 30, 2025[91] Revenue by Region - Americas net revenue of $624.5 million in 2Q26, representing 37% of total sales, decreased 2% on a reported basis[29] - EMEA net revenue of $864.2 million in 2Q26 increased 3% on a reported basis, including a 7% FX benefit[31] - Asia Pacific net revenue of $189.9 million in 2Q26 decreased 1% on a reported basis, with a 1% FX benefit[32] - The Americas region reported net revenues of $624.5 million for the three months ended December 31, 2025, a decrease of 2% from $638.6 million in the same period of 2024[57] - EMEA region net revenues increased by 3% to $864.2 million for the three months ended December 31, 2025, compared to $839.8 million in the same period of 2024[57] Strategic Initiatives - The company is initiating the "Coty. Curated." strategic framework to improve performance and focus on core businesses[4] - The company is focusing on strategic planning and operational efficiency to enhance revenue growth and manage inflationary pressures[35] - Future operations will include a strategic review of the consumer beauty business, particularly in mass color cosmetics and local Brazilian brands[35] - The company anticipates ongoing cost efficiency initiatives and restructuring programs to improve profitability[36] - The company plans to implement new product launches and marketing strategies to respond to changing consumer preferences[36] - Adjusted Performance Measures will be used to evaluate performance and guide strategic decisions, including budgeting and senior management compensation[42] Operational Challenges - The company is addressing supply chain challenges and disruptions to ensure effective production and inventory management[37] - There is a focus on sustainability initiatives and compliance with evolving regulatory measures impacting the beauty industry[37] - The company is assessing the impact of geopolitical risks, including the war in Ukraine and conflicts in the Middle East, on its business operations[37] Cash Flow and Liquidity - 2Q26 cash from operations totaled $559.7 million, compared to $464.5 million during the same period in the prior year[24] - Net cash provided by operating activities for the six months ended December 31, 2025, was $624.9 million, an increase from $531.9 million in 2024[81] - Free cash flow for the three months ended December 31, 2025, was $513.1 million, compared to $419.0 million in the same period of 2024[81] - Future cash flows and liquidity management will be prioritized, including potential refinancing and debt deleveraging activities[36] Adjusted Performance Metrics - The company has excluded various costs from its adjusted performance measures, including restructuring costs and acquisition-related expenses, to provide a clearer view of its core operating performance[46] - The adjusted diluted EPS for the three months ended December 31, 2025, was $0.14, up from $0.11 in the same period of 2024[78] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $957.2 million, reflecting the company's operational performance over the trailing twelve months[83] - The company reported a significant increase in adjustments to reported operating loss, totaling $662.1 million for the twelve months ended December 31, 2025[83] - Coty Inc. had an adjusted operating income of $730.4 million for the twelve months ended December 31, 2025, indicating strong operational efficiency[83]

Financial Performance - Net sales decreased by $18.8 million, or 5.2%, to $343.8 million for the three months ended December 27, 2025, primarily due to declines in the Food Service segment [134]. - Gross profit increased by $2.1 million, or 2.2%, to $96.0 million, with gross profit as a percentage of sales rising from 25.9% to 27.9% [135]. - Operating expenses increased by $7.7 million, or 8.8%, to $95.4 million, with a significant portion attributed to $6.1 million in plant closure expenses [137]. - Net earnings decreased by $4.3 million, or 82.8%, to $0.9 million for the three months ended December 27, 2025 [144]. - Investment income decreased by $0.3 million, or 31.3%, to $0.7 million due to lower interest rates on foreign cash balances [142]. Sales Performance - Net sales for the three months ended December 27, 2025, decreased by $18.8 million, or 5.2%, to $343.8 million compared to $362.6 million for the same period in 2024 [147]. - Food Service sales decreased by $19.7 million, or 8.3%, primarily due to a $18.2 million decline in bakery product sales, attributed to the Project Apollo initiative [148]. - Retail Supermarket sales increased by $1.2 million, or 2.6%, to $45.9 million, driven by a 35% increase in handheld sales [151]. - Frozen Beverages segment sales decreased by $0.3 million, or 0.3%, with operating income declining by $0.6 million, or 13.7%, to $4.0 million due to lower beverage sales volumes [153][154]. Operational Initiatives - The company expects Project Apollo to generate at least $20 million of run-rate operating income by the end of fiscal 2026 [127]. - The company has opened three regional distribution centers, projected to drive cost reductions in warehousing and distribution [130]. - Operating income in the Food Service segment increased by $1.3 million, or 14.6%, to $10.1 million, reflecting manufacturing efficiencies despite volume declines [150]. Cash Flow and Financial Position - Cash flows from operating activities for the three months ended December 27, 2025, increased to $35.9 million from $35.2 million in the prior year [156]. - As of December 27, 2025, the company had $66.8 million in cash and cash equivalents, with no outstanding balance under the Amended Credit Agreement [159][164]. - The company anticipates that future operating cash flow, along with its borrowing capacity, will be sufficient to meet cash requirements and fund growth [155]. Shareholder Actions - The company repurchased 458,467 shares of common stock at an average price of $91.61 per share during the quarter [162]. - The company is in compliance with all financial covenants of the Credit Agreement as of December 27, 2025 [163]. Taxation - The effective tax rate remained consistent at 27% for both the three months ended December 27, 2025, and December 28, 2024 [143]. Marketing Expenses - Selling and marketing expenses increased from 7.9% to 9.2% of net sales, driven by higher commission costs and promotional activities [138]. Plant Closure Costs - Plant closure costs recorded were approximately $24 million in Q4 fiscal 2025 and $6.1 million in Q1 fiscal 2026 [128].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (State or other jurisdiction of incorporation or organization) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to x Commission file number 000-19291 CORVEL CORPORATION (Exact Name of Registrant as Specif ...

Financial Performance - Net sales for the second quarter of fiscal 2026 were $137.5 million, an increase of $7.6 million, or 6%, driven by pricing, new program launches, and customer inventory builds[5] - Gross margin improved to 16.5%, up from 13.2% in the prior year, primarily due to pricing actions and higher production volumes[5] - Net income attributable to Strattec was $4.9 million, or $1.20 per diluted share, compared to $1.3 million, or $0.32 per diluted share, in the prior year[10] - Adjusted EBITDA for the quarter was $12.3 million, representing 8.9% of sales, compared to $8.0 million in the prior year[10] - Net income for the three months ended December 28, 2025, was $5,643 thousand, compared to $1,398 thousand for the same period in 2024, representing a significant increase of 303%[25] - Net sales for fiscal 2026 Q2 were $137.0 million, compared to $129.9 million in Q2 of fiscal 2025, representing a 5.4% increase year-over-year[26] - Adjusted EBITDA for Q2 of fiscal 2026 was $12.2 million, which is 8.9% of net sales, compared to 6.1% in Q2 of fiscal 2025[26] - Net income attributable to Strattec (GAAP) for Q2 of fiscal 2026 was $4.94 million, compared to $1.31 million in Q2 of fiscal 2025[27] - Adjusted net income attributable to Strattec (Non-GAAP) for Q2 of fiscal 2026 was $7.04 million, up from $2.64 million in Q2 of fiscal 2025[27] - Strattec's income from operations for Q2 of fiscal 2026 was $4.47 million, compared to $2.13 million in Q2 of fiscal 2025[26] Cash Flow and Assets - Cash from operations increased to $14 million, reflecting a 47% increase due to higher cash earnings[11] - The company had $99.0 million in cash and cash equivalents, up from $90.5 million at the end of the previous quarter[11] - Cash and cash equivalents at the end of the period reached $99,027 thousand, up from $84,579 thousand, marking a 17.5% increase[25] - Net cash provided by operating activities for the six months ended December 28, 2025, was $25,208 thousand, compared to $20,781 thousand for the same period in 2024, an increase of 21.7%[25] Liabilities and Equity - Total liabilities decreased to $129,231 thousand from $145,023 thousand, a reduction of 10.9%[23] - Total shareholders' equity increased to $263,014 thousand from $246,431 thousand, a growth of 6.7%[23] - Retained earnings rose to $282,773 thousand from $269,297 thousand, reflecting a growth of 5%[23] Expenses and Cost Management - Selling, administrative, and engineering expenses rose to $17.9 million, or 13.0% of sales, compared to 11.6% in the prior year[8] - The company reported a depreciation expense of $7,678 thousand for the six months ended December 28, 2025, compared to $7,206 thousand for the same period in 2024[25] - The company experienced a significant increase in business transformation costs, totaling $1.508 million for Q2 of fiscal 2026[27] Future Outlook - The second half of fiscal 2026 is anticipated to face a softer U.S. automotive production market and continued foreign exchange headwinds[4] - The company expects annual savings of $3.4 million from restructuring actions, including a voluntary early retirement program[4] - Strattec is focused on transforming its business for stronger earnings power and a predictable growth path[4] Borrowing and Financial Strategy - The current portion of borrowings under credit facilities was $2,500 thousand, indicating a new borrowing strategy[23] - The company experienced a foreign currency transaction loss of $463 thousand for the three months ended December 28, 2025[25]

2025 HIGHLIGHTS "Isabella Bank Corporation had an outstanding 2025, driven by growth across our markets and increases in our loans, deposits, and wealth management services," said CEO Jerome Schwind. "During the year, we also launched initiatives to strengthen our noninterest income, which are already contributing positive results. We continue to attract new customers while remaining focused on our current customers," he added. "We uplisted our stock to the Nasdaq in May, and have seen significant volume an ...

For the transition period from to . WASHINGTON, D.C. 20549 ______________________________________________________________________________________________________ FORM 10-Q ______________________________________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 27, 2025 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO ...

Rent and Lease Information - The annualized rent as of December 31, 2025, is $892.5 million, including $52.3 million related to tenants in free rent periods[121] - The average effective annual rent per square foot increased to $38.31 in 2025 from $37.60 in 2024, reflecting a growth of 1.9%[121] - As of December 31, 2025, leases expiring in 2026 represent 5.7% of leased space, with an annual contractual rent of $48.2 million[124] - The top 20 office tenants contribute $346.3 million, accounting for 38.6% of the company's share of annualized rent[127] - The technology sector represents 30.5% of the company's share of annualized rent, making it the largest industry segment[132] Project and Development Information - The Neuhoff project in Nashville has an estimated project cost of $589.1 million, with $582.6 million incurred to date[134] - The company plans to replace Domain 4 with future development once its leases expire, indicating a strategy for market expansion[119] - As of December 31, 2025, the total developable land owned by the company is 37.0 acres, with a total cost basis of land amounting to $162.809 million[137] - The company has a construction loan capacity of $273.5 million for the Neuhoff project, with a share of $136.8 million[136] - The 303 Tremont property is under contract for sale, expected to close in the second half of 2026[137] - Corporate Center 5 is controlled through a long-term ground lease, contributing to the company's land holdings[137] Debt and Financial Information - The company has $3.0 billion of fixed rate debt outstanding at a weighted average interest rate of 4.94% as of December 31, 2025, compared to $2.7 billion at 4.85% in 2024[253] - The company holds $366.0 million of variable rate debt, including $116.0 million from the Credit Facility at an interest rate of 4.535% and $250 million from the 2021 Term Loan at 4.76%[254] - If interest rates had been 1% higher, the interest incurred on average variable rate debt would have increased by $3.3 million in 2025[254] - The company mitigates market risk primarily by limiting total debt exposure and favoring fixed-rate debt in its portfolio[252] - The company’s variable rate debt in 2024 was $362.3 million, with a Credit Facility interest rate of 5.185%[254] Land and Cost Basis Information - The company’s share of the cost basis of land is $156.003 million[137] - The company's share of property-specific mortgage debt as of December 31, 2025, is not specified but is critical for financial analysis[119] - The weighted average economic occupancy for the properties is not explicitly stated but is essential for assessing performance[118] Financial Strategy - The company’s strategy includes using derivative financial instruments to convert some variable rate debt to fixed rate debt[252]

Table of Contents December 31, 2025 | Safe Harbor Language | i | | --- | --- | | Earnings Press Release | ii | | Summary Information: | | | Financial Results Summary | 1 | | Real Estate Portfolio Summary | 2 | | Financial Information: | | | Consolidated Balance Sheets | 3 | | Supplemental Details of Assets and Liabilities (Real Estate Partnerships Only) | 4 | | Consolidated Statements of Operations | 5 | | Supplemental Details of Operations (Consolidated Only) | 6 | | Supplemental Details of Operations (Rea ...