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, /PRNewswire/ -- Nelnet (NYSE: NNI) today reported GAAP net income of $66.7 million, or $1.85 per share, for the second quarter of 2026, compared with GAAP net income of $181.5 million, or $4.97 per share, for the same period a year ago.

Net income, excluding derivative market value adjustments1, was $63.9 million, or $1.77 per share, for the second quarter of 2026, compared with $184.4 million, or $5.05 per share, for the same period in 2025.

Included in the operating results for the second quarter of 2025 is a gain of $175.0 million ($133.0 million after tax, or $3.65 per share) related to the partial redemption of Nelnet's investment in ALLO, a fiber-optic telecommunications company. Excluding this gain, GAAP net income for the second quarter of 2025 was $48.5 million, or $1.32 per share.

"We delivered another quarter of solid results, reflecting the strength of our diversified strategy across consumer lending, servicing, payments, and technology, with a continued focus on education," said Jeff Noordhoek, chief executive officer of Nelnet. "This quarter included the first full quarter of contributions from our Canada servicing acquisition, and we continued to diversify our consumer lending business through additional portfolio purchases. We also continued to invest in artificial intelligence and product development across the organization. We remain focused on investing in our core businesses, pursuing opportunities for growth, and creating long-term value."

Nelnet operates through three divisions: Nelnet Financial Services (NFS), Loan Servicing and Systems [referred to as Nelnet Diversified Services (NDS)], and Education Technology Services and Payments [referred to as Nelnet Business Services (NBS)]. NFS includes the company's Asset Generation and Management (AGM) and Nelnet Bank reportable operating segments, which earn interest income on loans and investments. NDS and NBS generate primarily fee-based revenue through loan servicing, education technology, and payment services. Business activities not included in these divisions are combined and reported within Corporate Activities.

Nelnet Financial Services

AGM

As of June 30, 2026, AGM's loan portfolio totaled $7.83 billion, consisting primarily of federally insured loans originated under the Federal Family Education Loan Program ("FFEL Program" or FFELP). During the three months ended June 30, 2026, AGM acquired $3.07 billion of consumer loans, which includes $2.86 billion of short-duration Pay Later receivables that the company began to purchase during the third quarter of 2025 and $205.5 million of other consumer loans, compared with $142.5 million during the same period in 2025. The company's consumer loan portfolio has grown to $1.21 billion as of June 30, 2026, from $411.5 million as of June 30, 2025.

The AGM operating segment reported loan and investment net interest income of $63.2 million for the three months ended June 30, 2026, compared with $49.9 million for the same period in 2025. The increase was primarily driven by higher loan spreads2 and growth in the company's consumer loan portfolio, partially offset by the anticipated runoff of the legacy FFELP portfolio. The average balance of FFELP loans outstanding declined from $8.7 billion for the three months ended June 30, 2025 to $6.7 billion for the same period in 2026. During the first six months of 2026, AGM contributed certain student loan trusts to Nelnet Bank that included $716.3 million of FFEL Program loans.

AGM recorded a provision for loan losses of $41.3 million ($31.4 million after tax) for the three months ended June 30, 2026, compared with $11.1 million ($8.4 million after tax) for the same period in 2025. The primary item impacting provision for loan losses was the establishment of an initial allowance recorded on loans acquired during the periods to reflect lifetime expected credit losses at acquisition under the current expected credit loss (CECL) methodology. The higher provision in 2026 as compared with 2025 reflects the increase in consumer loan acquisitions and related portfolio growth rather than deterioration in underlying credit performance. Credit quality metrics, including delinquency rates and charge-offs, remained generally consistent with management's expectations.

AGM holds interests in joint ventures engaged in the acquisition, ownership, and management of loan portfolios. During the three months ended June 30, 2026, AGM recognized income from these joint ventures of $8.6 million ($6.5 million after tax).

AGM reported net income after tax of $22.2 million for the three months ended June 30, 2026, compared with $20.8 million for the same period in 2025.

1 

Net income, excluding derivative market value adjustments, is a non-GAAP measure. See "Non-GAAP Performance Measures" at the end of this press release and the "Non-GAAP Disclosures" section below for explanatory information and reconciliations of GAAP to non-GAAP financial information.

2 

Loan spread represents the spread between the yield earned on loan assets and the costs of the liabilities used to fund the assets.

Nelnet Bank

As of June 30, 2026, Nelnet Bank had a loan portfolio of $1.64 billion and an investment portfolio of $1.29 billion, and total deposits, including intercompany deposits, of $2.51 billion. Loan and investment net interest income increased to $19.3 million during the second quarter of 2026, compared with $14.1 million for the same period a year ago, due to an increase in the loan and investment portfolio, partially offset by a decrease in net interest margin.

Nelnet Bank recorded a negative provision for loan losses of $0.2 million in the second quarter of 2026, compared with a provision for loan losses of  $6.8 million ($5.2 million after tax) for the same period in 2025.

Nelnet Bank recognized net income after tax of $10.5 million for the quarter ended June 30, 2026, compared with a loss of $0.4 million for the same period in 2025.

Loan Servicing and Systems

Revenue from the Loan Servicing and Systems segment was $132.2 million for the second quarter of 2026, compared with $120.7 million for the same period in 2025. The increase was due to the company's acquisition of NDS Canada during the first quarter of 2026 and growth in consumer servicing. These increases were partially offset by a decrease in borrowers serviced for the Department of Education (Department). As of June 30, 2026, the company was servicing $519.2 billion in Department, Canada student loan servicing, FFELP, private education, and consumer loans for 15.2 million borrowers.

Operating margin decreased in the second quarter of 2026 compared with the same period in 2025 due to the decrease in revenue from the Department servicing contract and amortization of intangible assets from the NDS Canada acquisition. The Loan Servicing and Systems segment reported net income after tax of $11.3 million for the three months ended June 30, 2026, compared with $15.2 million for the same period in 2025.

Education Technology Services and Payments

For the second quarter of 2026, revenue from the Education Technology Services and Payments operating segment was $118.9 million, compared with $118.2 million for the same period in 2025. Revenue less direct costs to provide services for the second quarter of 2026 was $79.7 million, compared with $78.3 million for the same period in 2025.

Operating margin decreased in the second quarter of 2026 compared with the same period in 2025 due to an increase in operating expenses to support continued growth in the customer base and investments in the development of new technologies. Net income after tax for the Education Technology Services and Payments segment was $14.7 million for the three months ended June 30, 2026, compared with $17.9 million for the same period in 2025.

Corporate and Other Activities

During the three months ended June 30, 2026, the company recognized an unrealized gain of $8.6 million ($6.5 million after tax) from changes in the fair value of certain marketable equity securities.

Share Repurchases

During the first six months of 2026, the company has repurchased 316,600 Class A common shares for $40.6 million (average price of $128.34 per share), including a total of 190,281 Class A common shares for $24.4 million (average price of $127.99 per share) during the quarter.

Board of Directors Declares Third Quarter Dividend

The Nelnet Board of Directors declared a third-quarter cash dividend on the company's outstanding shares of Class A common stock and Class B common stock of $0.33 per share. The dividend will be paid on September 15, 2026, to shareholders of record at the close of business on September 1, 2026.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements within the meaning of federal securities laws. The words "anticipate," "assume," "believe," "continue," "could," "ensure," "estimate," "expect," "focus," "forecast," "future," "intend," "may," "objective," "plan," "potential," "predict," "pursue," "scheduled," "should," "strategy," "will," "would," and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements. These statements are based on management's current expectations as of the date of this release and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the company under existing and future servicing contracts with the Department, risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, and risks related to the company's ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, Canadian, FFEL Program, private education, and consumer loans; loan portfolio risks such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans; financing and liquidity risks, including risks of changes in the interest rate environment; risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets; risks related to a breach of or failure in the company's operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber breaches; risks related to use of artificial intelligence; uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations; risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration; risks related to the company's solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits; risks and uncertainties related to other initiatives (and anticipated income therefrom) including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the company both within and outside of its historical core education-related businesses; risks and uncertainties associated with climate change; risks from changes in economic conditions and consumer behavior; risks related to the company's ability to adapt to technological change; risks related to the exclusive forum provisions in the company's articles of incorporation; risks related to the company's executive chairman's ability to control matters related to the company through voting rights; risks related to related party transactions; risks related to natural disasters, terrorist activities, or international hostilities; and risks and uncertainties associated with litigation matters, maintaining compliance with the extensive regulatory requirements applicable to the company's businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the company's consolidated financial statements.

For more information, see the "Risk Factors" sections and other cautionary discussions of risks and uncertainties included in documents filed or furnished by the company with the Securities and Exchange Commission. All forward-looking statements in this release are as of the date of this release. Although the company may voluntarily update or revise its forward-looking statements from time to time to reflect actual results or changes in the company's expectations, the company disclaims any commitment to do so except as required by law.

Non-GAAP Performance Measures

The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, are provided in the "Non-GAAP Disclosures" section below.

Consolidated Statements of Income

(Dollars in thousands, except share data)

(unaudited)

Three months ended

Six months ended

June 30,
2026

March 31,
2026

June 30,
2025

June 30,
2026

June 30,
2025

Interest income:

Loan interest

$    164,598

171,024

172,104

335,622

338,543

Investment interest

40,315

40,202

40,185

80,517

81,574

Total interest income

204,913

211,226

212,289

416,139

420,117

Interest expense on bonds and notes payable and bank
deposits

108,902

109,583

132,854

218,485

257,968

Net interest income

96,011

101,643

79,435

197,654

162,149

Less provision for loan losses

41,077

53,244

17,930

94,321

33,267

Less provision for beneficial interests

2,441

4,130

4,977

6,571

6,487

Net interest income after provision

52,493

44,269

56,528

96,762

122,395

Other income (expense):

Loan servicing and systems revenue

132,244

127,842

120,724

260,086

241,465

Education technology services and payments revenue

118,884

154,436

118,184

273,319

265,515

Reinsurance premiums earned

40,625

22,536

26,112

63,161

50,799

Solar construction revenue

—

—

1,259

—

5,254

Other, net

18,399

10,437

22,976

28,836

47,579

Gain on partial redemption of ALLO investment

—

—

175,044

—

175,044

Derivative market value adjustments and derivative
settlements, net

3,852

2,167

(3,122)

6,019

(8,701)

Total other income (expense), net

314,004

317,418

461,177

631,421

776,955

Cost of services and expenses:

Loan servicing contract fulfillment and acquisition costs

2,087

2,087

1,845

4,174

3,478

Cost to provide education technology services and
payments

39,183

49,953

39,844

89,136

87,891

Cost to provide solar construction services

—

—

14,050

—

21,878

Total cost of services

41,270

52,040

55,739

93,310

113,247

Salaries and benefits

152,664

139,371

134,699

292,035

272,922

Depreciation and amortization

10,142

9,170

7,624

19,312

16,879

Reinsurance losses and underwriting expenses

32,809

23,605

25,662

56,414

47,874

Other expenses

64,199

61,840

56,617

126,038

104,924

Total operating expenses

259,814

233,986

224,602

493,799

442,599

Income before income taxes

65,413

75,661

237,364

141,074

343,504

Income tax expense

(19,942)

(20,061)

(59,510)

(40,003)

(84,521)

Net income

45,471

55,600

177,854

101,071

258,983

Net loss attributable to noncontrolling interests

21,191

15,526

3,605

36,717

5,035

Net income attributable to Nelnet, Inc.

$     66,662

71,126

181,459

137,788

264,018

Earnings per common share:

Net income attributable to Nelnet, Inc. shareholders -
basic and diluted

$        1.85

1.97

4.97

3.82

7.24

Weighted-average common shares outstanding - basic
and diluted

36,037,509

36,076,912

36,485,605

36,057,102

36,482,035

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(unaudited)

As of

As of

As of

June 30, 2026

December 31, 2025

June 30, 2025

Assets:

Loans and accrued interest receivable, net

$           9,802,215

10,006,695

10,155,483

Cash, cash equivalents, and investments

2,841,174

2,643,954

2,330,692

Restricted cash

793,884

677,563

576,023

Goodwill and intangible assets, net

302,838

187,312

191,307

Other assets

534,953

548,259

457,583

Total assets

$         14,275,064

14,063,783

13,711,088

Liabilities:

Bonds and notes payable

$           7,043,156

7,780,927

7,903,561

Bank deposits

2,219,249

1,669,173

1,382,042

Other liabilities

1,377,223

1,036,454

942,792

Total liabilities

10,639,628

10,486,554

10,228,395

Equity:

Total Nelnet, Inc. shareholders' equity

3,770,539

3,685,792

3,574,983

Noncontrolling interests

(135,103)

(108,563)

(92,290)

Total equity

3,635,436

3,577,229

3,482,693

Total liabilities and equity

$         14,275,064

14,063,783

13,711,088

Non-GAAP Disclosures
(Dollars in thousands, except share data)
(unaudited)

Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. The company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

Net income, excluding derivative market value adjustments

Three months ended June 30,

2026

2025

GAAP net income attributable to Nelnet, Inc.

$          66,662

181,459

Realized and unrealized derivative market value adjustments (a)

(3,686)

3,866

Tax effect (b)

885

(928)

Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments

$          63,861

184,397

Earnings per share:

GAAP net income attributable to Nelnet, Inc.

$              1.85

4.97

Realized and unrealized derivative market value adjustments (a)

(0.10)

0.11

Tax effect (b)

0.02

(0.03)

Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments

$              1.77

5.05

(a)   

"Derivative market value adjustments" includes both the realized portion of gains and losses (corresponding to variation margin received or paid on derivative instruments that are settled daily at a central clearinghouse) and the unrealized portion of gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. "Derivative market value adjustments" does not include "derivative settlements" that represent the cash paid or received during the respective period to settle with derivative instrument counterparties the economic effect of the company's derivative instruments based on their contractual terms.The accounting for derivatives requires that changes in the fair value of derivative instruments be recognized currently in earnings, with no fair value adjustment of the hedged item, unless specific hedge accounting criteria are met. Management has structured all of the company's derivative transactions with the intent that each is economically effective; however, the majority of the company's derivative instruments do not qualify for hedge accounting in the consolidated financial statements. As a result, the change in fair value for the derivative instruments that do not qualify for hedge accounting is reported in current period earnings with no consideration for the corresponding change in fair value of the hedged item. Under GAAP, the cumulative net realized and unrealized gain or loss caused by changes in fair values of derivatives in which the company plans to hold to maturity will generally equal zero over the life of the contract. However, the net realized and unrealized gain or loss during any given reporting period fluctuates significantly from period to period.

The company believes these point-in-time estimates of asset and liability values related to its derivative instruments that are subject to interest rate fluctuations are subject to volatility mostly due to timing and market factors beyond the control of management, and affect the period-to-period comparability of the results of operations. Accordingly, the company's management utilizes operating results excluding these items for comparability purposes when making decisions regarding the company's performance and in presentations with credit rating agencies, lenders, and investors. Consequently, the company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management and represents what earnings would have been had these derivatives qualified for hedge accounting. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

(b)   

The tax effects are calculated by multiplying the realized and unrealized derivative market value adjustments by the applicable statutory income tax rate.

SOURCE Nelnet, Inc.

Atlassian Corporation (NASDAQ:TEAM) stock is trading higher Thursday after the company reported fourth-quarter financial results after market close.

• Atlassian stock is among today’s top performers. Why is TEAM stock surging?

Here are the key highlights.

Atlassian reported fourth-quarter revenue of $1.766 billion, up 28% year-over-year. The revenue total beat a Street consensus estimate of $1.660 billion according to data from Benzinga Pro.

Cloud revenue was $1.21 billion in the quarter, up 31% year-over-year.

The company hit Subscription ARR of $6.61 billion in the quarter, up 23% year-over-year.

Remaining performance obligations totaled $4.82 billion at the end of the quarter, up 44% year-over-year.

The company reported earnings of $1.87 per share, beating a Street estimate of $1.50 per share.

"Q4 closes out a year that proves our long-term strategy is paying off. Total revenue grew 28% year-over-year to $1.8 billion, Cloud revenue growth accelerated to 31% year-over-year, and our MCP server and Teamwork Graph CLI surpassed one million monthly active users, more than doubling in a single quarter," Atlassian CEO Mike Cannon-Brookes said.

The company ended the quarter with cash and cash equivalents of $1.24 billion.

What’s Next for AtlassianThe company is guiding for first quarter 2027 revenue in range of $1.705 billion to $1.715 billion. The Street estimate is $1.665 billion, according to Benzinga Pro.

Cloud revenue is expected to be up 28.5% year-over-year in the first quarter.

For the full fiscal year, the company expects revenue growth of 13% year-over-year, increasing to $7.420 billion. The Street estimate is $7.354 billion.

Cloud revenue for the full fiscal year is expected to be up 25.5% year-over-year.

Atlassian Stock Price ActionAtlassian stock is up 35.71% to $149.51 in after-hours trading Thursday versus a 52-week trading range of $56.01 to $189.69.

Photo: Shutterstock

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DULUTH, Ga., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Fox Factory Holding Corp. (NASDAQ: FOXF) (“FOX” or the “Company”), a premium brand and a global leader in the design, engineering and manufacturing of performance-defining products and systems for customers worldwide, today reported financial results for the second fiscal quarter ended July 3, 2026.

Second Quarter Fiscal 2026 Highlights

Net sales of $358.1 million, driven by continued strength in powersports, compared to $374.9 million in the prior yearNet income of $4.1 million, or $0.10 per diluted share, compared to net income of $2.7 million, or $0.07 per diluted share in the prior yearAdjusted net income of $15.5 million, or $0.37 per diluted share, compared to adjusted net income of $16.6 million, or $0.40 per diluted share in the prior yearAdjusted EBITDA of $45.5 million, included approximately $2 million of IEEPA tariff refunds, and exceeded the high end of the guidance rangeAdjusted EBITDA margin (includes 50 bps of IEEPA tariff refunds) expanded 300 basis points sequentially to 12.7%, reflecting profit optimization execution across portfolio rationalization, supply chain, and operating expense managementProfit optimization initiative delivered $25+ million of gross savings in the first half; operational improvements to drive second half margin despite tariff, commodity, and freight headwinds Reduced net debt by $9.1 million since 2025 fiscal year end and improved the cash conversion cycle by approximately 12 days year over year, further strengthening the balance sheet Mike Dennison, FOX's Chief Executive Officer, commented, “Our second quarter results met or exceeded our guidance, with adjusted EBITDA margin expanding approximately 250 basis points sequentially, excluding tariff refunds. Our profit optimization actions remain on track to deliver approximately $50 million of gross cost savings this year, driven by continued execution across portfolio rationalization, supply chain, and cost discipline. A portion of what we captured in the first half was offset by higher input costs driven by geopolitical disruption and commodity inflation, including freight surcharges and fuel costs above original expectations. We are encouraged by signs of stabilization in powersports, bike, and aftermarket in general, while our upfit businesses continue to be constrained by limited availability of Ford F-150 chassis. Our team remains focused on sharpening the portfolio and becoming a more efficient organization that is positioned for growth and profitability.”

Mr. Dennison continued, "We expect to see continued strength in revenue through the back half driven by PVG with overall adjusted EBITDA margin tempered by continued macro headwinds and mix shifts. Our outlook assumes Ford F-150 chassis availability remains constrained through August and begins to recover in early September.”

Second Quarter 2026 Results

Net sales for the second quarter of fiscal 2026 were $358.1 million, a decrease of 4.5%, as compared to net sales of $374.9 million in the second quarter of fiscal 2025. This decrease reflects a $12.9 million, or 9.4%, decrease in Specialty Sports Group (“SSG”) net sales, and a $4.6 million, or 4.0%, decrease in Aftermarket Applications Group (“AAG”) net sales, partially offset by a $0.7 million, or 0.6%, increase in Powered Vehicles Group (“PVG”) net sales. The decrease in SSG net sales from $137.2 million to $124.3 million primarily reflects original equipment manufacturer (“OEM”) order timing, and channel destocking in response to market-wide economic conditions. AAG net sales decreased from $114.2 million to $109.6 million. The Phoenix, Arizona operations divested in the first quarter contributed $5.5 million of net sales in the prior year period and none in the current period. Excluding those operations, AAG net sales increased approximately 0.9%, as growth in the segment was partially offset by limited availability of Ford F-150 chassis for our upfit businesses following the 2025 fires at Novelis’ Oswego, New York aluminum facility. The slight increase in PVG net sales from $123.5 million to $124.2 million is mainly attributed to strengthening demand in powersports, where net sales increased 22.5% compared to the prior year period, partially offset by lower net sales in our autos-related product lines.

Gross margin was 30.6% for the second quarter of fiscal 2026, compared to gross margin of 31.2% in the second quarter of fiscal 2025. The decrease in gross margin was primarily driven by shifts in our product line mix and higher external input costs, including tariffs, freight, commodities and fuel, partially offset by cost savings realization.

Total operating expenses were $92.2 million, or 25.7% of net sales, in the second quarter of fiscal 2026, compared to $98.5 million, or 26.3% of net sales, in the second quarter of fiscal 2025. Operating expenses decreased by $6.3 million, driven by our optimization initiative, including lower general and administrative expense and reduced discretionary spending. Adjusted operating expenses were $78.5 million, or 21.9% of net sales, in the second quarter of fiscal 2026, compared to $83.5 million, or 22.3% of net sales, in the second quarter of the prior fiscal year.

Income tax expense was $2.3 million in the second quarter of fiscal 2026, compared to $2.8 million in the second quarter of fiscal 2025. In the second quarter of fiscal 2026, the difference between the Company’s effective tax rate of 36.0% and the 21% federal statutory rate was primarily attributable to unfavorable impact of discrete items in proportion to lower levels of pre-tax income.

Net income attributable to FOX stockholders in the second quarter of fiscal 2026 was $4.1 million, compared to net income attributable to FOX stockholders of $2.7 million in the second quarter of the prior fiscal year. Earnings per diluted share for the second quarter of fiscal 2026 was $0.10, compared to earnings per diluted share of $0.07 for the second quarter of fiscal 2025. Adjusted net income in the second quarter of fiscal 2026 was $15.5 million, or $0.37 of adjusted earnings per diluted share, compared to adjusted net income of $16.6 million, or $0.40 of adjusted earnings per diluted share, in the same period of the prior fiscal year.

Adjusted EBITDA in the second quarter of fiscal 2026 was $45.5 million and includes an approximate $2 million benefit associated with IEEPA tariff refunds, compared to $49.3 million in the second quarter of fiscal 2025. Adjusted EBITDA margin in the second quarter of fiscal 2026 was 12.7% or approximately 12.2% excluding the tariff refunds, compared to 13.1% in the second quarter of fiscal 2025.

First Six Months Fiscal 2026 Results

Net sales for the six months ended July 3, 2026, were $726.8 million, a decrease of 0.4% compared to the six months ended July 4, 2025. This decrease reflects a $23.4 million or 9.1% decrease in SSG net sales and a $1.8 million or 0.8% decrease in AAG net sales, offset by a $22.0 million or 9.0% increase in PVG net sales. The decrease in SSG net sales from $258.2 million to $234.8 million is mainly due to OEM order timing and channel destocking in response to market-wide economic conditions. AAG net sales decreased from $226.1 million to $224.3 million. The divested Phoenix, Arizona operations contributed $12.5 million of net sales in the prior year period and $3.7 million in the current period. Excluding those operations, AAG net sales increased approximately 3.3%, with growth limited by constrained availability of Ford F-150 chassis for our upfit businesses. The increase in PVG net sales from $245.6 million to $267.6 million is primarily due to strengthening demand in powersports.

Gross margin was 29.7% in the six months ended July 3, 2026, compared to gross margin of 31.1% in the six months ended July 4, 2025. The decrease in gross margin is primarily driven by the net impact of tariffs and other external input costs, including freight, commodities and fuel, and by shifts in our product line mix, partially offset by cost savings realization.

Total operating expenses were $192.6 million, or 26.5% of net sales, in the six months ended July 3, 2026, compared to $458.7 million, or 62.8% of net sales in the six months ended July 4, 2025. Operating expenses decreased by $266.1 million primarily due to goodwill impairment of $262.1 million recorded in the first six months of fiscal 2025 and our optimization initiative. Adjusted operating expenses were $164.0 million in the six months ended July 3, 2026, compared to $167.9 million in the six months ended July 4, 2025.

Other expense, net for the six months ended July 3, 2026 was $9.0 million, an increase of $10.5 million from $1.5 million other income, net in the six months ended July 4, 2025. The increase in other expense, net was primarily attributable to a $10.6 million loss on divestiture of the Phoenix, Arizona AAG operations.

Net loss attributable to FOX stockholders in the six months ended July 3, 2026 was $10.9 million, compared to net loss attributable to FOX stockholders of $257.0 million in the six months ended July 4, 2025. Net loss per diluted share for the six months ended July 3, 2026 was $0.26, compared to net loss per diluted share of $6.15 for the six months ended July 4, 2025. Adjusted net income in the six months ended July 3, 2026 was $22.9 million, or $0.54 of adjusted earnings per diluted share, compared to $26.4 million, or $0.63 of adjusted earnings per diluted share in the prior fiscal year.

Adjusted EBITDA in the six months ended July 3, 2026 was $81.2 million and includes an approximate $2 million benefit associated with IEEPA tariff refunds, compared to $88.9 million in the six months ended July 4, 2025. Adjusted EBITDA margin was 11.2% or approximately 10.9% excluding the tariff refunds in the six months ended July 3, 2026, compared to 12.2% in the prior fiscal year.

Reconciliations to non-GAAP measures are provided at the end of this press release.

Balance Sheet Summary

As of July 3, 2026, the Company had cash and cash equivalents of $61.3 million, compared to $58.0 million as of January 2, 2026. Inventory was $382.9 million as of July 3, 2026, compared to $388.6 million as of January 2, 2026. As of July 3, 2026, accounts receivable and accounts payable were $198.8 million and $134.9 million, respectively, compared to $190.7 million and $141.4 million, respectively, as of January 2, 2026. Prepaids and other current assets and other assets were $121.2 million as of July 3, 2026, compared to $108.4 million as of January 2, 2026. Accrued expenses were $84.4 million as of July 3, 2026, compared to $92.1 million as of January 2, 2026. Total debt was $667.7 million as of July 3, 2026, a decrease of $5.8 million, compared to $673.5 million as of January 2, 2026. Net debt, defined as total debt less cash and cash equivalents, was $606.4 million as of July 3, 2026, a decrease of $9.1 million compared to $615.5 million as of January 2, 2026.

In May, the Company proactively amended its credit agreement to provide additional financial flexibility, including the expansion of the net leverage covenant to 5.0x, compared to the prior 4.5x. As of July 3, 2026, the Company’s net leverage ratio calculated under the credit agreement was 3.7x in compliance with the applicable covenant levels.

The increase in cash and cash equivalents was mainly due to proceeds from the divestiture of our AAG operations in Phoenix, Arizona, including the collection of principal on the related note receivable, and proceeds from asset sales, partially offset by changes in working capital, debt repayments, capital expenditures, and debt modification costs. Inventory decreased by $5.7 million from January 2, 2026, driven by divested inventory, partially offset by an inventory build to support second half demand. Days inventory on hand improved to approximately 136 days from approximately 150 days in the prior year period. The increase in accounts receivable is due to timing of collections. The decrease in accounts payable reflects the timing of vendor payments. The increase in prepaids and other current assets is mainly attributable to receivables arising from the divestiture of our Phoenix, Arizona AAG operations.

Progress on Phase 2 Profit Optimization Initiative

Fox Factory continues to execute its multi-phase profit optimization strategy targeting approximately $50 million of gross realized savings in fiscal 2026. In the first six months of fiscal 2026, the Company captured more than $25 million of gross savings, a portion of which was offset by external cost increases, including tariffs, freight, commodities and fuel. The Company expects those external costs to remain elevated and has reflected an incremental amount beyond its original plan in its second half outlook. Phase 2 focuses on three strategic elements: business line rationalization to exit operations that are not accretive from a margin perspective; supply chain and materials cost productivity improvements; and reduction in operating expenses across sales, marketing, and G&A functions. The Company continues to evaluate strategic alternatives for other non-core assets to ensure alignment with profitability standards and strategic objectives.

Outlook

For the third quarter of fiscal 2026, the Company expects:

Net sales in the range of $355 million to $380 million; andAdjusted EBITDA in the range of $46 million to $54 million. For the fiscal year 2026, the Company is raising its net sales guidance and narrowing its adjusted EBITDA guidance:

Net sales in the range of $1.42 billion to $1.47 billion; andAdjusted EBITDA in the range of $176 million to $196 million. Guidance for the third quarter and the full fiscal year assumes that commodity, freight and fuel costs remain at or near current elevated levels for the balance of the year. In addition, guidance absorbs nearly $20 million of incremental input cost inflation beyond the Company’s original fiscal 2026 plan. Guidance also assumes that availability of Ford F-150 chassis for the Company’s upfit businesses remains constrained.

The Company may become eligible to recover as much as $8 million of additional tariff costs previously incurred under the International Emergency Economic Powers Act (IEEPA) framework. Any such recoveries are subject to significant uncertainty regarding timing and amount, and a portion of any amounts recovered may be shared with the Company’s commercial counterparties. The Company has not included any potential recovery in its outlook and will recognize amounts only upon receipt.

A quantitative reconciliation of adjusted EBITDA for the third quarter and full fiscal year 2026 is not available without unreasonable efforts because management cannot predict, with sufficient certainty, all of the elements necessary to provide such a reconciliation. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Conference Call & Webcast

The Company will hold an investor conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number for North America listeners is (800) 445-7795, and international listeners may dial (785) 424-1699; the conference ID is FOXFQ226 or 36937226. Live audio of the conference call will be simultaneously webcast in the Investor Relations section of the Company’s website at https://investor.ridefox.com. The webcast of the teleconference will be archived and available on the Company’s website.

Available Information

Fox Factory Holding Corp. announces material information to the public about the Company through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, and the Investor Relations section of its website (https://investor.ridefox.com) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.

About Fox Factory Holding Corp. (NASDAQ: FOXF)

Fox Factory Holding Corp. is a global leader in the design, engineering, and manufacturing of premium products that deliver championship-level performance for specialty sports and on- and off-road vehicles. Its portfolio of brands, like FOX, Marucci, Method Race Wheels, and more, are fueled by unparalleled innovation that continuously earns the trust of professional athletes and passionate enthusiasts all around the world. The Company is a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle original equipment manufacturers and offers premium baseball and softball gear and equipment. The Company also provides products in the aftermarket through its global network of retailers and distributors and through direct-to-consumer channels.

FOX is a registered trademark of Fox Factory, Inc. NASDAQ Global Select Market is a registered trademark of The NASDAQ OMX Group, Inc. All rights reserved.

Non-GAAP Financial Measures

In addition to reporting financial measures in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”), FOX includes in this press release certain non-GAAP financial measures consisting of “adjusted operating expense,” “adjusted operating expense margin”, “adjusted net income,” “adjusted earnings per share,” “adjusted EBITDA,” and “adjusted EBITDA margin,” all of which are non-GAAP financial measures. FOX defines adjusted operating expense as operating expense adjusted for amortization of purchased intangibles, goodwill impairment, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, and certain strategic transformation costs. FOX defines adjusted operating expense margin as adjusted operating expense divided by net sales. FOX defines adjusted net income as net income (loss) attributable to FOX stockholders adjusted for amortization of purchased intangibles, goodwill impairment, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, loss on divestiture, and strategic transformation costs, all net of applicable tax. Adjusted earnings per share is defined as adjusted net income divided by the weighted average number of basic or diluted shares of common stock outstanding during the period. FOX defines adjusted EBITDA as net income (loss) adjusted for interest expense, net other expense, income taxes or tax benefits, amortization of purchased intangibles, goodwill impairment, depreciation, stock-based compensation, litigation and settlement related expenses, organizational restructuring expenses, acquisition and integration-related expenses, loss on divestiture, and strategic transformation costs that are more fully described in the tables included at the end of this press release. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales. These adjustments are more fully described in the tables included at the end of this press release.

FOX includes these non-GAAP financial measures to provide investors with additional insight on the Company’s operating performance and trends, as well as to supplement their understanding of the results of the Company’s core operations. In particular, the exclusion of certain items in calculating the non-GAAP financial measures consisting of adjusted operating expense, adjusted net income and adjusted EBITDA (and accordingly, adjusted operating expense margin, adjusted earnings per diluted share and adjusted EBITDA margin) can provide a useful measure for period-to-period comparisons of the Company’s core business. These non-GAAP financial measures have limitations as analytical tools, including the fact that such non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies because other companies may calculate adjusted operating expense, adjusted operating expense margin, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin differently than FOX does. For more information regarding these non-GAAP financial measures, see the tables included at the end of this press release.

FOX FACTORY HOLDING CORP.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
  As of As of July 3, 2026 January 2, 2026    Assets   Current assets:   Cash and cash equivalents$61,276  $58,008 Accounts receivable (net of allowances of $3,265 and $2,881, respectively) 198,817   190,670 Inventory 382,897   388,635 Prepaids and other current assets 121,157   108,424 Total current assets 764,147   745,737 Property, plant and equipment, net 211,138   234,635 Lease right-of-use assets 82,722   99,002 Deferred tax assets 85,500   90,397 Goodwill 83,575   83,575 Trademarks and brands, net 231,931   241,820 Customer and distributor relationships, net 126,529   137,648 Core technologies, net 18,415   19,950 Other assets 32,499   18,985 Total assets$1,636,456  $1,671,749 Liabilities and stockholders’ equity   Current liabilities:   Accounts payable$134,886  $141,378 Accrued expenses 84,350   92,095 Current portion of long-term debt 26,875   26,875 Total current liabilities 246,111   260,348 Revolver 163,000   150,000 Term loan, less current portion 477,827   496,663 Other liabilities 82,691   94,733 Total liabilities 969,629   1,001,744 Non-controlling interest (220)  (179)Stockholders’ equity   Preferred stock, $0.001 par value — 10,000 authorized and no shares issued or outstanding as of July 3, 2026 and January 2, 2026 —   — Common stock, $0.001 par value — 90,000 authorized; 42,921 shares issued and 42,031 outstanding as of July 3, 2026; 42,692 shares issued and 41,802 outstanding as of January 2, 2026 42   42 Additional paid-in capital 358,084   352,239 Treasury stock, at cost; 890 common shares as of July 3, 2026 and January 2, 2026 (13,754)  (13,754)Accumulated other comprehensive income 2,793   832 Retained earnings 319,882   330,825 Total stockholders’ equity 667,047   670,184 Total liabilities and stockholders’ equity$1,636,456  $1,671,749   FOX FACTORY HOLDING CORP.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
  For the three months ended For the six months ended July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Net sales$358,122  $374,864  $726,779  $729,894 Cost of sales 248,429   257,873   510,698   503,224 Gross profit 109,693   116,991   216,081   226,670 Operating expenses:       Goodwill impairment —   —   —   262,129 General and administrative 34,197   39,044   72,843   76,375 Sales and marketing 29,408   31,216   62,710   64,063 Research and development 18,598   17,847   37,052   34,886 Amortization of purchased intangibles 9,983   10,356   20,018   21,276 Total operating expenses 92,186   98,463   192,623   458,729 Income (loss) from operations 17,507   18,528   23,458   (232,059)Interest expense 11,875   14,388   23,813   27,322 Other (income) expense, net (676)  (1,365)  8,969   (1,515)Income (loss) before income taxes 6,308   5,505   (9,324)  (257,866)Provision (benefit) for income taxes 2,274   2,800   1,660   (837)Net income (loss)$4,034  $2,705  $(10,984) $(257,029)Less: net loss attributable to non-controlling interest (19)  (39)  (41)  (79)Net income (loss) attributable to FOX stockholders$4,053  $2,744  $(10,943) $(256,950)Earnings (net loss) per share:       Basic$0.10  $0.07  $(0.26) $(6.15)Diluted$0.10  $0.07  $(0.26) $(6.15)Weighted-average shares used to compute earnings per share:       Basic 42,005   41,788   41,933   41,749 Diluted 42,275   41,866   41,933   41,749   FOX FACTORY HOLDING CORP.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
  For the six months ended July 3, 2026 July 4, 2025OPERATING ACTIVITIES:   Net loss$(10,984) $(257,029)Adjustments to reconcile net loss to net cash provided by operating activities:   Goodwill impairment —   262,129 Depreciation and amortization 41,207   45,462 Provision for inventory reserve 2,138   3,313 Stock-based compensation 7,492   7,925 Amortization of acquired inventory step-up —   342 Amortization of loan fees 1,289   2,704 Amortization of deferred gains on prior swap settlements —   (783)Loss on divestiture 10,612   — Deferred taxes (281)  (5,082)Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:   Accounts receivable (12,990)  (15,396)Inventory (17,400)  (2,131)Income taxes (1,648)  (3,996)Prepaids and other assets 3,917   19,796 Accounts payable (5,928)  (11,147)Accrued expenses and other liabilities (4,274)  (8,631)Net cash provided by operating activities 13,150   37,476 INVESTING ACTIVITIES:   Purchases of property and equipment (9,472)  (19,644)Proceeds from sale of property and equipment 2,762   232 Proceeds from divestitures, net of cash divested, including collections of promissory note principal 7,369   — Net cash provided by (used in) investing activities 659   (19,412)FINANCING ACTIVITIES:   Proceeds from revolver 107,000   57,000 Payments on revolver (94,000)  (53,000)Repayment of term debt (18,438)  (12,142)Repurchases from stock compensation program, net (1,648)  (1,259)Deferred debt issuance/modification costs (2,432)  — Net cash provided by financing activities (9,518)  (9,401)EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (1,023)  1,114 CHANGE IN CASH AND CASH EQUIVALENTS 3,268   9,777 CASH AND CASH EQUIVALENTS—Beginning of period 58,008   71,674 CASH AND CASH EQUIVALENTS—End of period$61,276  $81,451   FOX FACTORY HOLDING CORP.
NET INCOME (LOSS) TO ADJUSTED NET INCOME RECONCILIATION
AND CALCULATION OF ADJUSTED EARNINGS PER SHARE
(in thousands, except per share data)
(unaudited)

The following tables provide a reconciliation of net income (loss) attributable to FOX stockholders, the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted net income (a non-GAAP measure), and the calculation of adjusted earnings per share (a non-GAAP measure) for the three and six months ended July 3, 2026 and July 4, 2025. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.

 For the three months ended For the six months ended July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Net income (loss) attributable to FOX stockholders$4,053  $2,744  $(10,943) $(256,950)Goodwill impairment —   —   —   262,129 Amortization of purchased intangibles 9,983   10,356   20,018   21,276 Loss on divestiture 618   —   10,612   — Organizational restructuring expenses(1) 239   3,933   2,360   6,255 Strategic transformation costs(2) 2,832   —   5,467   20 Litigation and settlement-related expenses 114   474   308   1,191 Other acquisition and integration-related expenses(3) 33   739   218   1,356 Tax impacts of reconciling items above(4) (2,376)  (1,634)  (5,107)  (8,876)Adjusted net income$15,496  $16,612  $22,933  $26,401         Adjusted EPS       Basic$0.37  $0.40  $0.55  $0.63 Diluted$0.37  $0.40  $0.54  $0.63         Weighted average shares used to compute adjusted EPS       Basic 42,005   41,788   41,933   41,749 Diluted 42,275   41,866   42,151   41,819   (1) Represents expenses associated with various restructuring initiatives intended to improve operational efficiency, realign resources, and support the Company’s long-term strategic objectives, including employee severance, relocation expenses, and consulting and advisory fees.

(2) Represents third-party consulting, advisory and other direct costs incurred in connection with the Company’s multi-phase profit optimization and transformation program and its review of strategic alternatives for non-core assets.

(3) Represents various acquisition-related costs and expenses incurred to acquire and integrate acquired entities into the Company’s operations and the impact of the finished goods inventory and property, plant and equipment valuation adjustments recorded in connection with the purchase of acquired assets.

(4) Tax impacts on non-GAAP adjustments are calculated using the Company’s normalized effective tax rate, except for goodwill impairment charges and divestitures, which are adjusted based on their specific tax attributes. For these items, the entire tax expense associated with the divestiture and the entire tax benefit associated with goodwill impairment were added back.

FOX FACTORY HOLDING CORP.
NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION AND
CALCULATION OF NET INCOME (LOSS) MARGIN AND ADJUSTED EBITDA MARGIN
(in thousands, except percentages)
(unaudited)

The following tables provide a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted EBITDA (a non-GAAP measure), and a reconciliation of net income (loss) margin to adjusted EBITDA margin (a non-GAAP measure) for the three and six months ended July 3, 2026 and July 4, 2025. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.

 For the three months ended For the six months ended July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Net sales       Powered Vehicles Group$124,227  $123,514  $267,606  $245,612 Aftermarket Applications Group 109,553   114,144   224,337   226,058 Specialty Sports Group 124,342   137,206   234,836   258,224 Net sales$358,122  $374,864  $726,779  $729,894         Net income (loss)$4,034  $2,705  $(10,984) $(257,029)Goodwill impairment —   —   —   262,129 Provision (benefit) for income taxes 2,274   2,800   1,660   (837)Depreciation and amortization(1) 20,568   21,449   41,184   43,188 Loss on divestiture 618   —   10,612   — Non-cash stock-based compensation 3,372   4,562   7,492   7,917 Organizational restructuring expenses(2) 253   3,933   2,374   6,244 Strategic transformation costs(3) 2,832   —   5,467   20 Litigation and settlement-related expenses 114   474   308   1,191 Other acquisition and integration-related expenses(4) 33   739   218   1,356 Interest and other expense, net 11,362   12,631   22,829   24,716 Adjusted EBITDA$45,460  $49,293  $81,160  $88,895         Net income (loss) margin 1.1%  0.7% (1.5)% (35.2)%        Adjusted EBITDA margin 12.7%  13.1%  11.2%  12.2%        Powered Vehicles Group$15,820  $16,387  $38,376  $30,769 Aftermarket Applications Group 16,155   16,016   27,556   33,010 Specialty Sports Group 27,687   30,385   45,142   53,779 Unallocated corporate expenses (14,202)  (13,495)  (29,914)  (28,663)Adjusted EBITDA$45,460  $49,293  $81,160  $88,895   (1) Depreciation excludes amortization for purchase accounting property, plant and equipment fair value adjustment, and accelerated depreciation related to organizational restructuring initiatives.

(2) Represents expenses associated with various restructuring initiatives intended to improve operational efficiency, realign resources, and support the Company’s long-term strategic objectives, including employee severance, relocation expenses, and consulting and advisory fees.

(3) Represents third-party consulting, advisory and other direct costs incurred in connection with the Company’s multi-phase profit optimization and transformation program and its review of strategic alternatives for non-core assets.

(4) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations and the impact of the finished goods inventory and property, plant and equipment valuation adjustments recorded in connection with the purchase of acquired assets.

FOX FACTORY HOLDING CORP.
OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE RECONCILIATION AND
CALCULATION OF ADJUSTED OPERATING EXPENSE MARGIN
(in thousands, except percentages)
(unaudited)

The following tables provide a reconciliation of operating expense to adjusted operating expense (a non-GAAP measure) and the calculations of operating expense margin and adjusted operating expense margin (a non-GAAP measure), for the three and six months ended July 3, 2026 and July 4, 2025. These non-GAAP financial measures are provided in addition to, and not as an alternative for, the Company’s reported GAAP results.

 For the three months ended For the six months ended July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Net sales$358,122  $374,864  $726,779  $729,894         Operating expense$92,186  $98,463  $192,623  $458,729 Goodwill impairment —   —   —   (262,129)Amortization of purchased intangibles (9,983)  (10,356)  (20,018)  (21,276)Litigation and settlement-related expenses (114)  (474)  (308)  (1,191)Other acquisition and integration-related expenses(1) (33)  (561)  (218)  (1,014)Organizational restructuring expenses(2) (731)  (3,541)  (2,590)  (5,164)Strategic transformation costs(3) (2,832)  —   (5,467)  (20)Adjusted operating expense$78,493  $83,531  $164,022  $167,935         Operating expense margin 25.7%  26.3%  26.5%  62.8%        Adjusted operating expense margin 21.9%  22.3%  22.6%  23.0%  (1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations, excluding amortization for purchase accounting inventory fair value adjustment that was classified as cost of sales.

(2) Represents expenses associated with various restructuring initiatives.

(3) Represents third-party consulting, advisory and other direct costs incurred in connection with the Company’s multi-phase profit optimization and transformation program and its review of strategic alternatives for non-core assets.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release including earnings guidance may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends that all such statements be subject to the “safe-harbor” provisions contained in those sections. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “might,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “can,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “likely,” “potential”, “remain” or “continue” or the negative of these words or other similar terms or expressions that concern the Company’s expectations, strategy, plans or intentions. Such forward-looking statements include, but are not limited to, statements with regard to expectations related to the future performance of FOX; the Company’s expected demand for its products; the Company’s execution on its organizational restructuring initiatives and strategy to improve operating efficiencies, which may include divestitures, sales, or related transactions involving one or more of the Company’s businesses or assets and other actions related to the Company’s strategic review of its portfolio; the Company’s expectation regarding its operating results and future growth prospects; the Company’s expected future sales and future adjusted earnings per diluted share; and any other statements in this press release that are not of a historical nature. Many important factors may cause the Company’s actual results, events or circumstances to differ materially from those discussed in any such forward-looking statements, including but not limited to: the Company’s decision and ability to market and execute potential strategic transactions, which depend on, among other factors, third-party interest, valuation considerations and regulatory requirements; the Company’s ability to maintain its suppliers for materials, component parts and product without significant supply chain disruptions; the Company’s ability to improve operating and supply chain efficiencies; the Company’s ability to enforce its intellectual property rights; the Company’s future financial performance, including its sales, cost of sales, gross profit or gross margin, operating expenses, ability to generate positive cash flow, ability to maintain profitability, and ability to remain in compliance with financial covenants; the Company’s ability to monitor the effects of new technological applications, such as artificial intelligence; the Company’s ability to protect against cybersecurity incidents and disruptions or failures of our information technology systems; the Company’s ability to adapt its business model to mitigate the impact of certain changes in tax laws, tariffs, and international trade policies, including regulations or orders related to the import and export of industry products; changes in the relative proportion of profit earned in the numerous jurisdictions in which the Company does business and in tax legislation, case law and other authoritative guidance in those jurisdictions; factors which impact the calculation of the weighted average number of diluted shares of common stock outstanding, including the market price of the Company’s common stock, grants of equity-based awards and the vesting schedules of equity-based awards; the Company’s ability to develop new and innovative products in its current end-markets and to leverage its technologies and brand to expand into new categories and end-markets; the spread of highly infectious or contagious diseases or public health issues causing disruptions in the U.S. and global economy and disrupting the business activities and operations of the Company’s customers, business and operations; the Company’s ability to increase its aftermarket penetration; the Company’s exposure to currency exchange rate fluctuations; the loss of key customers; our ability to accurately forecast demand for our products; strategic transformation costs; legal and regulatory developments, including the outcome of pending litigation or regulatory or other governmental inquiries, and the impact of changing emissions and other regulations in the various jurisdictions in which our products are produced, used, and/or sold; the cost of compliance with, or liabilities related to, environmental or other governmental regulations or changes in governmental or industry regulatory standards; the possibility that the Company may not be able to accelerate its international growth; the Company’s ability to maintain its premium brand image and high-performance products; the Company’s ability to maintain relationships with the professional athletes and race teams that it sponsors; the possibility that the Company may not be able to selectively add additional dealers and distributors in certain geographic markets; the overall growth of the markets in which the Company competes; the Company’s expectations regarding consumer preferences and its ability to respond to changes in consumer preferences and effectively compete against competitors; changes in demand for performance-defining products as well as the Company’s other products; the Company’s loss of key personnel, management and skilled engineers; the Company’s ability to successfully identify, evaluate and manage potential acquisitions and to benefit from such acquisitions; the Company’s ability to complete any acquisition and/or incorporate any acquired assets into its business; product recalls and product liability claims; the impact of tension in China-Taiwan relations, the war in Iran, or similar events on the Company’s business, operations or supply chain; future economic or market conditions, including the impact of inflation or the U.S. Federal Reserve’s interest rate changes in response thereto; changes in commodity, freight, and tariff costs (including tariff relief or our ability to mitigate tariffs, particularly in light of the policies of the current presidential administration and retaliatory actions in response thereto); our ability to mitigate increasing input costs through pricing or other measures; and the other risks and uncertainties described in “Risk Factors” contained in its Annual Report on Form 10-K for the fiscal year ended January 2, 2026, as filed with the Securities and Exchange Commission on February 27, 2026, or Quarterly Reports on Form 10-Q or otherwise described in the Company’s other filings with the Securities and Exchange Commission. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CONTACT:
ICR
Jeff Sonnek
646-277-1263
[email protected]

AUSTIN, Texas--(BUSINESS WIRE)--Natera, Inc. (NASDAQ: NTRA), a global leader in cell-free DNA and genetic testing, today reported its financial results for the second quarter ended June 30, 2026.

Recent Financial Highlights

Generated total revenues of $752.8 million in the second quarter of 2026, compared to $546.6 million in the second quarter of 2025, an increase of 37.7%. Generated a gross margin1 of 64.5% in the second quarter of 2026, compared to a gross margin1 of 63.4% in the second quarter of 2025. Excluding revenue true-ups, second quarter non-GAAP gross margin2 improved 50 basis points over the first quarter of 2026. Processed approximately 1,043,900 tests in the second quarter of 2026, compared to approximately 853,100 tests in the second quarter of 2025, an increase of 22.4%. Processed approximately 296,700 oncology tests in the second quarter of 2026, compared to approximately 188,800 in the second quarter of 2025, an increase of 57.2%. Clinical molecular residual disease (MRD) oncology units grew 34,000 units over the first quarter of 2026, the largest sequential increase to-date. Increased cash by approximately $3.6 million3 during the second quarter of 2026. Raised 2026 annual revenue guidance by $100 million at the midpoint, from $2.74 billion - $2.82 billion to $2.85 billion - $2.91 billion. “We had an exceptional quarter helping patients, with over one million tests processed for the second consecutive quarter and record growth in oncology volumes,” said Steve Chapman, chief executive officer of Natera. “We also reached several landmark milestones in the last few months: SignateraTM achieved three significant regulatory approvals, Medicare coverage expanded for ProsperaTM, and we launched a major enhancement to our PanoramaTM NIPT.”

Second Quarter Ended June 30, 2026 Financial Results

Total revenues were $752.8 million in the second quarter of 2026 compared to $546.6 million in the second quarter of 2025, an increase of 37.7%. The increase in revenues was driven by an increase in volume and average selling price improvements.

Natera processed approximately 1,043,900 tests in the second quarter of 2026, including approximately 1,030,100 tests accessioned in its laboratory, compared to approximately 853,100 tests processed, including approximately 839,300 tests accessioned in its laboratory, in the second quarter of 2025.

In the second quarter of 2026, Natera recognized revenue on approximately 985,500 tests for which results were reported to customers in the period (tests reported), including approximately 972,000 tests reported from its laboratory, compared to approximately 812,900 tests reported, including approximately 799,900 tests reported from its laboratory, in the second quarter of 2025, an increase of 21.2% from the prior period.

Gross profit1 for the three months ended June 30, 2026 and 2025 was $485.2 million and $346.6 million, respectively, representing a gross margin1 of 64.5% and 63.4%, respectively. Natera had higher gross margin1 in the second quarter of 2026 primarily as a result of higher revenues and continued progress in reducing cost of revenues associated with tests processed. There was also a change in estimate of approximately $52.3 million in the second quarter of 2026 in revenue accrual as compared to $45.3 million in the second quarter of 2025. Changes in estimates for the three months ended June 30, 2026 and 2025 increased revenue and, as a result, increased gross margin1 and gross profit1 by 2.7% and $52.3 million, and by 3.3% and $45.3 million, respectively.

Gross margin1 for the three months ended March 31, 2026 was 64.7%. Excluding the change in estimates in revenue accruals of approximately $52.3 million and $61.0 million during the three months ended June 30, 2026 and March 31, 2026, respectively, Natera’s non-GAAP gross margin2 increased by approximately 0.5% sequentially.

Total operating expenses, representing research and development expenses and selling, general and administrative expenses, for the second quarter of 2026 was $555.3 million, compared to $457.0 million in the same period of the prior year, an increase of 21.5%. The increase was primarily driven by headcount growth to support new product offerings as well as increases in clinical trial expenses. Amortization of acquired intangible assets for the second quarter of 2026 was $5.7 million. No such amortization occurred in the second quarter of 2025.

Loss from operations for the second quarter of 2026 was $75.8 million compared to $110.4 million for the same period of the prior year.

Natera’s net loss for the second quarter of 2026 was $67.0 million, or ($0.47) per diluted share, compared to a net loss of $100.9 million, or ($0.74) per diluted share, in the second quarter of 2025. Weighted average shares outstanding were 143.3 million in the second quarter of 2026 compared to 136.4 million for the same period in the prior year.

At June 30, 2026, Natera held approximately $1,091.5 million in cash, cash equivalents, and restricted cash, compared to $1,076.1 million as of December 31, 2025. As of June 30, 2026, Natera had a total outstanding debt balance of $80.3 million including accrued interest under its line of credit with UBS at a variable interest rate of 30-day SOFR plus 50 bps.

Financial Outlook

Natera anticipates 2026 total revenue of $2.85 billion to $2.91 billion; 2026 gross margin1 to be approximately 64% to 66%; selling, general and administrative costs to be approximately $1.125 billion to $1.225 billion; research and development costs to be $800 million to $900 million; and cash flow to be positive.

Test Volume Summary

Unit

QTD 2026

QTD 2025

Definition

Tests processed

1,043,900

853,100

Tests accessioned in our laboratory plus units processed outside of our laboratory

Tests accessioned

1,030,100

839,300

Test accessioned in our laboratory

Tests reported

985,500

812,900

Total tests reported

Tests reported in our laboratory

972,000

799,900

Total tests reported in our laboratory less units reported outside of our laboratory

About Natera

Natera™ is a global leader in cell-free DNA and precision medicine, dedicated to oncology, women’s health, and organ health. We aim to make personalized genetic testing and diagnostics part of the standard-of-care to protect health and inform earlier, more targeted interventions that help lead to longer, healthier lives. Natera’s tests are supported by more than 400 peer-reviewed publications that demonstrate excellent performance. Natera operates ISO 13485-certified and CAP-accredited laboratories certified under the Clinical Laboratory Improvement Amendments (CLIA) in Austin, Texas, and San Carlos, California, and through Foresight Diagnostics, its subsidiary, operates an ISO 27001-certified and CAP-accredited laboratory certified under CLIA in Boulder, Colorado. For more information, visit www.natera.com.

Conference Call Information

Event:

Natera’s Second Quarter Financial Results Conference Call

Date:

Thursday, August 6, 2026

Time:

1:30 p.m. PT (4:30 p.m. ET)

Live Dial-In:

1-833-461-5787 (Domestic)
+44-808-196-8935 (International)

Conference ID:

786 717 759

Webcast Link:

https://events.q4inc.com/attendee/786717759

Forward-Looking Statements

This press release contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts, including statements regarding our market opportunity, anticipated products and launch schedules, reimbursement coverage, product costs, and gross margins, commercial and strategic partnerships and acquisitions, user experience, clinical trials and studies, and our strategies, goals and general business and market conditions, are forward-looking statements. Any forward-looking statements contained in this press release are based upon Natera’s current plans, estimates, and expectations, as of the date of this release, and are not a representation that such plans, estimates, or expectations will be achieved.

These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including: we face numerous uncertainties and challenges in achieving our financial projections and goals; we may be unable to further increase the use and adoption of our products through our direct sales efforts or through our laboratory partners; we have incurred net losses since our inception and we anticipate that we will continue to incur net losses for the foreseeable future; our quarterly results may fluctuate from period to period; unless otherwise indicated, all financial data for the current and prior quarters are unaudited and subject to adjustment in connection with the completion of our quarterly and annual financial reporting processes; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we may be unable to compete successfully with existing or future products or services offered by our competitors; we may engage in acquisitions, dispositions or other strategic transactions that may not achieve our anticipated benefits and could otherwise disrupt our business, cause dilution to our stockholders or reduce our financial resources; our products may not perform as expected; the results of our clinical studies may not support the use and reimbursement of our tests, particularly for microdeletions screening, and may not be able to be replicated in later studies required for regulatory approvals or clearances; if either of our primary CLIA-certified laboratories becomes inoperable, we will be unable to perform our tests and our business may be harmed; we rely on a limited number of suppliers or, in some cases, single suppliers, for some of our laboratory instruments and materials and may not be able to find replacements or immediately transition to alternative suppliers; if we are unable to successfully scale our operations, our business could suffer; the marketing, sale, and use of Panorama and our other products could result in substantial damages arising from product liability or professional liability claims that exceed our resources; we may be unable to expand, obtain or maintain third-party payer coverage and reimbursement for our tests, and we may be required to refund reimbursements already received; third-party payers may withdraw coverage or provide lower levels of reimbursement due to changing policies, billing complexities or other factors; we could incur substantial costs and delays complying with governmental regulations; litigation and other regulatory or governmental proceedings related to our intellectual property or the commercialization of our tests, are costly, time-consuming, could result in our obligation to pay material judgments or incur material settlement costs, and could limit our ability to commercialize our tests; and any inability to effectively protect our proprietary technology could harm our competitive position or our brand.

We discuss these and other risks and uncertainties in greater detail in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our periodic reports on Forms 10-K and 10-Q and in other filings that we make with the SEC from time to time. These documents are available on our website at www.natera.com under the Investor Relations section and on the SEC’s website at www.sec.gov.

We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. In light of these risks, uncertainties and assumptions, you should not place undue reliance on our forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations.

References:

Gross profit is calculated as GAAP total revenues less GAAP cost of revenues. Gross margin is calculated as gross profit divided by GAAP total revenues. Excluding the change in estimates in revenue accruals of approximately $52.3 million and $61.0 million during the three months ended June 30, 2026 and March 31, 2026, respectively, Natera’s non-GAAP gross margin increased by approximately 0.5% sequentially. Includes GAAP cash, cash equivalents and restricted cash. Natera, Inc.

Consolidated Balance Sheets

(Unaudited)

(in thousands, except shares)

  June 30,
2026

December 31,
2025

(1)

Assets

Current assets:

Cash, cash equivalents and restricted cash

$

1,091,502

$

1,076,140

Accounts receivable, net of allowance of $6,526 in 2026 and $8,018 in 2025

421,968

296,528

Inventory

80,346

68,443

Prepaid expenses and other current assets

65,134

55,828

Total current assets

1,658,950

1,496,939

Property and equipment, net

317,568

241,184

Operating lease right-of-use assets

129,687

108,541

Goodwill

141,100

141,070

Intangible assets

360,204

373,713

Other assets

49,988

36,897

Total assets

$

2,657,497

$

2,398,344

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

75,154

$

33,156

Accrued compensation

105,915

92,603

Contingent consideration payable, current portion

22,818

21,580

Deferred revenue, current portion

40,566

24,907

Short-term debt financing

80,291

80,323

Other accrued liabilities

228,456

188,659

Total current liabilities

553,200

441,228

Contingent consideration payable, long-term portion

97,687

96,780

Deferred tax liability, long-term portion

701

701

Operating lease liabilities, long-term portion

143,074

118,473

Deferred revenue, long-term portion

16,074

17,062

Other liabilities

25,262

11,687

Total liabilities

835,998

685,931

Commitments and contingencies

Stockholders’ equity:

Common stock (2)

14

14

Additional paid in capital

4,749,675

4,488,679

Accumulated deficit

(2,928,082

)

(2,776,022

)

Accumulated other comprehensive loss

(108

)

(258

)

Total stockholders’ equity

1,821,499

1,712,413

Total liabilities and stockholders’ equity

$

2,657,497

$

2,398,344

Natera, Inc.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(in thousands, except per share data)

  Three months ended
June 30,

Six months ended
June 30,

2026

2025

2026

2025

Revenues

Product revenues

$

747,929

$

544,427

$

1,441,796

$

1,044,463

Licensing and other revenues

4,821

2,173

7,598

3,968

Total revenues

752,750

546,600

1,449,394

1,048,431

Cost and expenses

Cost of product revenues

266,597

199,531

511,800

384,143

Cost of licensing and other revenues

964

465

1,572

917

Research and development

228,071

146,427

438,773

275,504

Selling, general and administrative

327,203

310,549

655,142

577,414

Amortization of acquired intangible assets

5,707

—

11,416

—

Total cost and expenses

828,542

656,972

1,618,703

1,237,978

Loss from operations

(75,792

)

(110,372

)

(169,309

)

(189,547

)

Interest expense

(890

)

(1,029

)

(1,782

)

(2,034

)

Interest and other income, net

9,452

10,738

19,053

24,155

Loss before income taxes

(67,230

)

(100,663

)

(152,038

)

(167,426

)

Income tax benefit (expense)

261

(275

)

(22

)

(448

)

Net loss

$

(66,969

)

$

(100,938

)

$

(152,060

)

$

(167,874

)

Unrealized gain (loss) on available-for-sale securities and foreign currency translation adjustment

94

(90

)

150

57

Comprehensive loss

$

(66,875

)

$

(101,028

)

$

(151,910

)

$

(167,817

)

Net loss per share:

Basic and diluted

$

(0.47

)

$

(0.74

)

$

(1.07

)

$

(1.24

)

Weighted-average number of shares used in computing basic and diluted net loss per share:

Basic and diluted

143,279

136,388

142,395

135,632

  More News From Natera, Inc.

-

Company Achieves Milestone Attained by Fewer Than 60 Currently Listed U.S. Public Companies

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Carlisle Companies Incorporated (NYSE: CSL) today announced that its Board of Directors approved a 14% increase in the Company’s regular quarterly dividend from $1.10 to $1.25 per share, or to $5 per share on an annualized basis. The dividend is payable on September 1, 2026, to shareholders of record at the close of business on August 19, 2026.

"Our 50th consecutive annual dividend increase reflects the durability of Carlisle's business model, and the dedicated management teams that have led this business since 1976."

Share With this increase, Carlisle joins the elite group of “Dividend Kings,” U.S. public companies that have raised their annual dividend for at least 50 consecutive years, a distinction held by fewer than 60 currently listed U.S. public companies.

“Our 50th consecutive annual dividend increase reflects the durability of Carlisle's business model, and the dedicated management teams that have led this business since 1976,” said Chris Koch, Chair, President and Chief Executive Officer. “Carlisle is best understood not merely as a roofing-products company but as a capital-allocation story. For more than five decades, through recessions, market cycles, and the transformation of our portfolio into a pure-play building products company, we have sustained a relentless focus on ROIC, strong cash generation, and consistently returning capital to our shareholders.”

About Carlisle Companies Incorporated

Carlisle Companies Incorporated is a leading supplier of innovative building envelope products and solutions for more energy efficient buildings. Through its building products businesses – Carlisle Construction Materials ("CCM") and Carlisle Weatherproofing Technologies ("CWT") – and family of leading brands, Carlisle delivers innovative, labor reducing and environmentally responsible products and solutions to customers through the Carlisle Experience. Carlisle is committed to generating superior shareholder returns and maintaining a balanced capital deployment approach, including investments in our businesses, strategic acquisitions, share repurchases and continued dividend increases. Carlisle is a member of the elite group of “Dividend Kings,” having increased its annual dividend for 50 consecutive years. Leveraging its culture of continuous improvement as embodied in the Carlisle Operating System ("COS"), Carlisle has committed to achieving net-zero greenhouse gas emissions by 2050.

Forward-Looking Statements

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, about our expectations, plans, objectives, future financial performance and other matters that are not historical facts. You can identify these forward-looking statements by our use of words such as "anticipate," "believe," "continues," "estimate," "expect," "forecast," "foresee," "intends," "may," "plans," "project," "pursue," "should," "will" and similar expressions. We cannot guarantee that any forward-looking statement will be realized, although we believe that we have been prudent in our plans, estimates and assumptions. Such statements are made based on known events and circumstances at the time of publication and, as such, are subject in the future to unforeseen risks and uncertainties and to assumptions that may prove to be inaccurate. It is possible that our future performance may differ materially from current expectations expressed in, or implied by, these forward-looking statements due to a variety of factors, including:

increasing price and product/service competition by foreign and domestic competitors, including new entrants; significant reliance on our key customers; damage to, or prolonged disruption of, our manufacturing facilities; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; our mix of products/services; increases in raw material costs that cannot be recovered in product pricing; domestic and foreign governmental and public policy changes including environmental and industry regulations; the ability of our customers to maintain appropriate labor levels under U.S. immigration laws, policies and practices; the ability to meet our goals relating to our intended reduction of greenhouse gas emissions, including our net zero commitments; threats associated with, and efforts to combat, terrorism; protection and validity of patent and other intellectual property rights; the identification of strategic acquisition targets and our successful completion of any transaction and integration of our strategic acquisitions; the cyclical nature of our businesses; the impact of information technology, cybersecurity, artificial intelligence or data security breaches at our businesses or third parties; the outcome of pending and future litigation, including product liability claims, and governmental proceedings; general industry and market conditions and growth rates, the condition of the financial and credit markets and general domestic and international economic conditions, including inflation, interest rate and currency exchange rate fluctuations, and tariffs; any conflict in the international arena, including the Russian invasion of Ukraine and war in the Middle East; and the other factors discussed in the reports we file with, or furnish to, the Securities and Exchange Commission from time to time Any forward-looking statement speaks only as of the date on which that statement is made, and we undertake no duty to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which that statement is made, unless otherwise required by law. New factors emerge from time to time, and it is not possible for us to predict all of those factors, nor can we assess the impact of each of those factors on the business.

More News From Carlisle Companies Incorporated

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Net revenues of $183.9 million for the three months ended June 30, 2026 GAAP net income of $30.3 million, or $0.67 per share, for the second quarter Adjusted non-GAAP net income of $40.8 million, or $0.91 per share, for the second quarter Company to hold a conference call today at 2:00 p.m. Pacific Time , /PRNewswire/ -- Amphastar Pharmaceuticals, Inc. (NASDAQ: AMPH) ("Amphastar" or the "Company"), a biopharmaceutical company focused on developing, manufacturing, and commercializing technically challenging generic and proprietary injectable, inhalation, and intranasal products, today reported results for the three months ended June 30, 2026.

"Our second quarter results reflect the continued execution of our long-term strategy to build a more diversified and innovative biopharmaceutical company. While we continued to navigate pricing and competitive dynamics across portions of our portfolio, we successfully achieved key goals including overall revenue growth, expansion of gross margins, meaningful launches of new products, and continued advancement from both our generic and proprietary development pipelines. These results demonstrate the strength of our integrated business model and position us well for long-term sustainable growth," said Dr. Jack Zhang, Amphastar's President and Chief Executive Officer.

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2026

2025

2026

2025

(in thousands, except per share data)

Net revenues

$

183,903

$

174,414

$

355,074

$

344,942

GAAP net income

$

30,348

$

31,030

$

36,768

$

56,315

Adjusted non-GAAP net income*

$

40,759

$

40,893

$

60,237

$

77,764

GAAP diluted EPS

$

0.67

$

0.64

$

0.81

$

1.15

Adjusted non-GAAP diluted EPS*

$

0.91

$

0.85

$

1.33

$

1.59

* Adjusted non-GAAP net income and adjusted non-GAAP diluted EPS are non-GAAP financial measures. Please see the discussion in the section entitled "Non-GAAP

 Financial Measures" and the reconciliation of GAAP to non-GAAP financial measures in Table III of this press release.

Second Quarter Results

Three Months Ended

June 30, 

Change

2026

2025

Dollars

%

(in thousands)

Net revenues:

BAQSIMI®

$

45,503

$

46,687

$

(1,184)

(3) %

Primatene MIST®

21,004

22,880

(1,876)

(8) %

Epinephrine

15,854

16,180

(326)

(2) %

Lidocaine

15,039

14,999

40

0 %

Glucagon

11,905

20,602

(8,697)

(42) %

Ipratropium bromide                                                                                                                    

8,411

—

8,411

N/A

Other products

66,187

53,066

13,121

25 %

Total net revenues

$

183,903

$

174,414

$

9,489

5 %

Changes in net revenues as compared to the second quarter of the prior year were primarily driven by:

BAQSIMI® sales decreased primarily due to a lower average selling price, as a result of a change in gross-to-net discounts due to changes in chargebacks and rebates and changes to the customer mix, impacting sales of approximately $8.1 million. This decrease was partially offset by an increase in unit volumes, contributing $6.9 million in sales driven by our continued marketing efforts. Achieved the first annual net sales milestone under the asset purchase agreement with Eli Lilly & Company, or Lilly, for BAQSIMI®, with sales of $175.0 million for the contract year. The milestone triggers a payment of $100.0 million to Lilly which is due in the third quarter of 2026. Primatene MIST® sales decreased due to the timing of customer purchases rather than changes in the underlying consumer demand. In store demand shows continued growth. Epinephrine sales slightly decreased primarily due to a decrease in our epinephrine multi-dose vial product, as a result of increased competition, impacting sales by $2.2 million. This decrease was partially offset by an increase in demand for our epinephrine pre-filled syringe, as a result of other supplier shortages, contributing $1.9 million in sales. Glucagon sales decreased primarily due to a lower average selling price, impacting sales by $7.5 million, as well as a decrease in unit volumes, which impacted sales by $1.2 million, as a result of competition and the continued shift to ready-to-use glucagon products such as BAQSIMI®. Ipratropium bromide sales were $8.4 million following a successful launch in April 2026. Other pharmaceutical product sales increased primarily due to recently launched products including an increase in iron sucrose sales of $3.5 million and teriparatide sales of $4.5 million, which we launched in August 2025 and December 2025, respectively. Albuterol sales increased primarily due to an increase in unit volumes, as we continue to see positive growth since its launch in August 2024. Additionally impacting sales, were an increase in phytonadione and sodium bicarbonate sales, driven by heightened demand, and an increase in API sales from our ANP subsidiary.

Three Months Ended

June 30, 

Change

2026

2025

Dollars

%

(in thousands)

Net revenues

$

183,903

$

174,414

$

9,489

5 %

Cost of revenues

90,433

87,924

2,509

3 %

Gross profit

$

93,470

$

86,490

$

6,980

8 %

as % of net revenues                                                                                                                             

50.8 %

49.6 %

Changes in the cost of revenues and gross margin were primarily driven by:

Recently launched products, including iron sucrose, teriparatide and ipratropium bromide, as well as an increase in sales of phytonadione, all of which are higher-margin products. This was partially offset by: The impact of lower average selling price for BAQSIMI®, glucagon, and our epinephrine multi-dose vial product Increased manufacturing expenses due to the expansion of our manufacturing facility in Rancho Cucamonga, CA

Three Months Ended

June 30, 

Change

2026

2025

Dollars

%

(in thousands)

Selling, distribution, and marketing                                                                                                         

$

13,335

$

10,235

$

3,100

30 %

General and administrative

18,242

13,991

4,251

30 %

Research and development

22,164

20,080

2,084

10 %

Selling, distribution, and marketing expense increased primarily due to increased freight expense and the increase in marketing efforts for BAQSIMI®. General and administrative expenses increased primarily due to an increase in legal expenses, expenses associated with implementing a new ERP system and salary and personnel-related expenses. Research and development expenses increased due to an increase in clinical trials expense, primarily for our insulin pipeline products, as well as an increase in salary and personnel-related expenses. This increase was partially offset by a decrease in material and supply expenses.

Three Months Ended

June 30, 

Change

2026

2025

Dollars

%

(in thousands)

Non-operating expenses:

Interest income

$

2,287

$

1,921

$

366

19 %

Interest expense

(6,659)

(6,281)

(378)

6 %

Other income (expenses), net

3,187

1,511

1,676

111 %

Total non-operating expenses, net                                                                                                         

$

(1,185)

$

(2,849)

$

1,664

(58) %

The change in non-operating expenses, net, is primarily a result of foreign currency fluctuation, as well as the mark-to-market adjustments relating to our interest rate swap contract during the three months ended June 30, 2026.

Cash flow provided by operating activities for the six months ended June 30, 2026, was $99.2 million.

Pipeline Information

The Company currently has one abbreviated new drug application ("ANDA") and one biosimilar insulin candidate filed with the FDA for products targeting a combined market size exceeding $1.6 billion, along with two biosimilar products in development targeting a market size exceeding $3.5 billion, and three generic products in development targeting a market size of over $1.2 billion. This market information is based on IQVIA data for the 12 months ended June 30, 2026, supplemented by data provided by the branded company for one of the generic targets. The Company is developing multiple proprietary products with injectable, topical and intranasal dosage forms.

The Company's proprietary pipeline also includes four recently in-licensed products including three proprietary peptides targeting oncology and ophthalmology indications, and a fully synthetic corticotropin compound designed to address inflammatory and autoimmune conditions.

Conference Call Information

The Company will hold a conference call to discuss its financial results today, August 6, 2026, at 2:00 p.m. Pacific Time.

To access the conference call, dial toll-free (877) 407-0989 or (201) 389-0921 for international callers, ten minutes before the conference.

The call can also be accessed on the Investors page on the Company's website at www.amphastar.com. 

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company is disclosing non-GAAP financial measures when providing financial results. The Company believes that an evaluation of its ongoing operations (and comparisons of its current operations with historical and future operations) would be difficult if the disclosure of its financial results were limited to financial measures prepared only in accordance with GAAP. As a result, the Company is disclosing certain non-GAAP results, including (i) Adjusted non-GAAP net income (loss) and (ii) Adjusted non-GAAP diluted EPS, which generally excludes amortization expense, share-based compensation, impairment charges, certain debt issuance costs, legal settlements, and other one-time events in order to supplement investors' and other readers' understanding and assessment of the Company's financial performance because the Company's management uses these measures internally for forecasting, budgeting, and measuring its operating performance. Whenever the Company uses such non-GAAP measures, it will provide a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures. Investors and other readers are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP measures to their most directly comparable GAAP measures set forth below and should consider non-GAAP measures only as a supplement to, not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP.

Market Data

This press release contains market data that we obtained from industry sources. These sources do not guarantee the accuracy or completeness of the information. Although we believe that our industry sources are reliable, we do not independently verify the information. The market data may include projections that are based on a number of other projections. While we believe these assumptions to be reasonable and sound as of the date of this press release, actual results may differ from the projections.

About Amphastar Pharmaceuticals, Inc.

Amphastar is a biopharmaceutical company that focuses on developing, manufacturing, and commercializing technically challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the Company sells active pharmaceutical ingredient, or API products. Most of the Company's finished products are contracted and distributed through group purchasing organizations, drug wholesalers, and drug retailers. More information and resources are available at www.amphastar.com.

Amphastar's logo and other trademarks or service marks of Amphastar, including, but not limited to Amphastar®, BAQSIMI®, Primatene MIST®, REXTOVY®, Amphadase®, and Cortrosyn®, are the property of Amphastar.

Forward-Looking Statements

All statements in this press release and in the conference call referenced above that are not historical are forward-looking statements, including, among other things, statements relating to our expectations regarding future financial performance and business trends, our future growth and our ability to continue to scale, sales and marketing of our products, market size and expansion, product portfolio, product development, the timing of FDA filings or approvals, the timing of product launches, acquisitions and other matters related to our pipeline of product candidates, the timing and results of clinical trials, the impact of our products, including their potential for continued revenue growth, the strategic trajectory of and market for our product pipeline, our long-term strategic vision, our ability to leverage our existing expertise and technology, the impacts of any licensing agreements and ability to commercialize additional therapies, our in-house manufacturing expertise, our ability to deliver high-quality, affordable therapies to patients, our commercial momentum and position in the market. These statements are not facts but rather are based on Amphastar's historical performance and our current expectations, estimates, and projections regarding our business, operations, and other similar or related factors. Words such as "may," "might," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond Amphastar's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in Amphastar's filings with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 7, 2026, and our other filings or reports that we may file with the SEC. You can locate these reports through our website at http://ir.amphastar.com and on the SEC's website at www.sec.gov. The forward-looking statements in this release speak only as of the date of the release. Amphastar undertakes no obligation to revise or update information or any forward-looking statements in this press release or the conference call referenced above to reflect events or circumstances in the future, even if new information becomes available or if subsequent events cause our expectations to change.

Table I

Amphastar Pharmaceuticals, Inc.

Condensed Consolidated Statement of Operations

(Unaudited; in thousands, except per share data)

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2026

2025

2026

2025

Net revenues

$

183,903

$

174,414

$

355,074

$

344,942

Cost of revenues

90,433

87,924

191,282

173,201

Gross profit

93,470

86,490

163,792

171,741

Operating expenses:

Selling, distribution, and marketing

13,335

10,235

25,262

22,101

General and administrative

18,242

13,991

36,270

29,987

Research and development

22,164

20,080

48,901

40,176

Total operating expenses

53,741

44,306

110,433

92,264

Income from operations

39,729

42,184

53,359

79,477

Non-operating expenses:

Interest income

2,287

1,921

4,687

4,010

Interest expense

(6,659)

(6,281)

(13,212)

(12,567)

Other income (expenses), net

3,187

1,511

3,762

(723)

Total non-operating expenses, net

(1,185)

(2,849)

(4,763)

(9,280)

Income before income taxes

38,544

39,335

48,596

70,197

Income tax provision

8,196

8,305

11,828

13,882

Net income

$

30,348

$

31,030

$

36,768

$

56,315

Net income per share:

Basic

$

0.69

$

0.66

$

0.83

$

1.19

Diluted

$

0.67

$

0.64

$

0.81

$

1.15

Weighted-average shares used to compute net income per share:

Basic

43,644

46,949

44,483

47,295

Diluted

44,225

48,128

45,341

49,009

Table II

Amphastar Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share data)

June 30, 

December 31, 

2026

2025

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

223,614

$

170,177

Restricted cash

235

235

Short-term investments

66,509

112,635

Restricted short-term investments

2,200

2,200

Accounts receivable, net

144,857

143,560

Inventories

179,907

176,890

Income tax refunds and deposits

2,628

17,167

Prepaid expenses and other assets

11,001

13,152

Total current assets

630,951

636,016

Property, plant, and equipment, net

316,063

310,567

Finance lease right-of-use assets

152

221

Operating lease right-of-use assets

72,911

42,931

Goodwill and intangible assets, net

647,833

565,965

Other assets

33,392

31,135

Deferred tax assets

42,464

42,464

Total assets

$

1,743,766

$

1,629,299

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

251,371

$

148,348

Income taxes payable

546

239

Current portion of long-term debt

2,488

1,641

Current portion of operating lease liabilities

8,800

7,928

Total current liabilities

263,205

158,156

Long-term reserve for income tax liabilities

5,926

5,926

Long-term debt, net of current portion and unamortized debt issuance costs

609,564

608,749

Long-term operating lease liabilities, net of current portion

67,470

37,684

Other long-term liabilities

29,444

29,979

Total liabilities

975,609

840,494

Commitments and contingencies

Stockholders' equity:

Preferred stock: par value $0.0001; 20,000,000 shares authorized; no shares issued and outstanding

—

—

Common stock: par value $0.0001; 300,000,000 shares authorized; 62,306,254 and 42,532,225 shares issued and outstanding, respectively, as of June 30, 2026 and 61,779,883 and 45,645,497 shares issued and outstanding, respectively, as of December 31, 2025

6

6

Additional paid-in capital

553,002

535,380

Retained earnings

703,649

666,881

Accumulated other comprehensive loss

(5,904)

(5,314)

Treasury stock

(482,596)

(408,148)

Total stockholders' equity

768,157

788,805

Total liabilities and stockholders' equity

$

1,743,766

$

1,629,299

Table III

Amphastar Pharmaceuticals, Inc.

Reconciliation of Non-GAAP Measures

(Unaudited; in thousands, except per share data)

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2026

2025

2026

2025

GAAP net income

$

30,348

$

31,030

$

36,768

$

56,315

Adjusted for:

Intangible asset amortization

6,269

6,269

12,539

12,509

Share-based compensation

7,090

6,382

16,364

14,775

Litigation provision

—

—

1,000

—

Income tax provision on pre-tax adjustments

(2,948)

(2,788)

(6,434)

(5,835)

Adjusted non-GAAP net income

$

40,759

$

40,893

$

60,237

$

77,764

Adjusted non-GAAP net income per share:

Basic

$

0.92

$

0.87

$

1.35

$

1.64

Diluted

$

0.91

$

0.85

$

1.33

$

1.59

Weighted-average shares used to compute adjusted non-GAAP net income per share:

Basic

43,644

46,949

44,483

47,295

Diluted

44,225

48,128

45,341

49,009

Three Months Ended June 30, 2026

Selling,

General

Research

Cost of

distribution

and

and

Income

revenue

and marketing

administrative

development

tax provision

GAAP

$

90,433

$

13,335

$

18,242

$

22,164

$

8,196

Intangible asset amortization

(6,250)

—

—

(19)

—

Share-based compensation

(1,557)

(359)

(4,513)

(661)

—

Income tax provision on pre-tax adjustments

—

—

—

—

2,948

Non-GAAP

$

82,626

$

12,976

$

13,729

$

21,484

$

11,144

Three Months Ended June 30, 2025

Selling,

General

Research

Cost of

distribution

and

and

Income

revenue

and marketing

administrative

development

tax provision

GAAP

$

87,924

$

10,235

$

13,991

$

20,080

$

8,305

Intangible asset amortization

(6,250)

—

—

(19)

—

Share-based compensation

(1,400)

(311)

(4,068)

(603)

—

Income tax provision on pre-tax adjustments

—

—

—

—

2,788

Non-GAAP

$

80,274

$

9,924

$

9,923

$

19,458

$

11,093

Six Months Ended June 30, 2026

Selling,

General

Research

Cost of

distribution

and

and

Income

revenue

and marketing

administrative

development

tax provision

GAAP

$

191,282

$

25,262

$

36,270

$

48,901

$

11,828

Intangible asset amortization

(12,500)

—

(1)

(38)

—

Share-based compensation

(4,013)

(719)

(9,650)

(1,982)

—

Litigation provision

—

—

(1,000)

—

—

Income tax provision on pre-tax adjustments

—

—

—

—

6,434

Non-GAAP

$

174,769

$

24,543

$

25,619

$

46,881

$

18,262

Six Months Ended June 30, 2025

Selling,

General

Research

Cost of

distribution

and

and

Income

revenue

and marketing

administrative

development

tax provision

GAAP

$

173,201

$

22,101

$

29,987

$

40,176

$

13,882

Intangible asset amortization

(12,470)

—

(1)

(38)

—

Share-based compensation

(3,738)

(624)

(8,637)

(1,776)

—

Income tax provision on pre-tax adjustments

—

—

—

—

5,835

Non-GAAP

$

156,993

$

21,477

$

21,349

$

38,362

$

19,717

SOURCE Amphastar Pharmaceuticals, Inc.

AUDUBON, Pa., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal technology company, today announced its financial results for the second quarter ended June 30, 2026.

Second Quarter 2026:

Worldwide net sales were $789.6 million, an increase of 5.9%, or an increase of 5.6% on a constant currency basis.GAAP net income for the quarter was $151.6 million.GAAP diluted earnings per share (“EPS”) was $1.10, a decrease of 26.2%, primarily driven by the bargain purchase gain of $110.5 million recognized in the prior year quarter related to the Nevro acquisition. Non-GAAP diluted EPS was $1.34, an increase of 55.8%.
“Momentum continued into the second quarter with 6% overall revenue growth, or 9% growth excluding Nevro, driven by share gains across a majority of our underlying businesses, most notably US Spine, growing 7% and International Spine, growing 14% as-reported and 12% on a constant currency basis,” commented Keith Pfeil, President and Chief Executive Officer. “The depth of our product portfolio and exclusive selling model positions us to lead with innovation and commercial outreach, driving our ability to grow share over the long-term. Our priority remains centered on achieving improved surgical outcomes through the Globus ecosystem, bringing together patient selection, surgical techniques with complementary implants and technology to drive the surgical procedure, through a closed-loop surgical intelligence ecosystem.”

“US Spine, again, led the way in growth for the organization, marking our fifth straight quarter of above-market revenue growth, with continued strength across our entire product portfolio. This broad-based growth, paired with adjusted gross margin expansion of 200 basis points compared to the second quarter of the prior year, drove record second quarter non-GAAP net income and diluted earnings per share,” said Kyle Kline, Chief Financial Officer. “The strength of our second-quarter performance reflects disciplined execution across the business, including margin expansion, operating leverage, and synergy realization, which position us to deliver sustained earnings growth, and enhanced shareholder returns throughout the year.”

Worldwide net sales for the second quarter of 2026 were $789.6 million, an as-reported increase of 5.9% over the second quarter of 2025. U.S. net sales for the second quarter of 2026 increased by 3.0% compared to the second quarter of 2025. International net sales increased by 18.0% over the second quarter of 2025 on an as-reported basis and increased by 16.2% on a constant currency basis.

GAAP net income for the second quarter of 2026 was $151.6 million, a decrease of 25.3% over the same period in the prior year. The decrease in GAAP net income was primarily driven by the bargain purchase gain of $110.5 million recognized in the prior year quarter related to the Nevro acquisition. GAAP diluted EPS for the second quarter was $1.10, compared to $1.49 for the second quarter of 2025, a decrease of 26.2%. Non-GAAP diluted EPS for the second quarter of 2026, which excludes, among other costs, amortization of intangibles, merger and acquisition-related costs, and restructuring-related costs, was $1.34, compared to $0.86 in the second quarter of 2025, an increase of 55.8%.

2026 Annual Guidance

The Company reaffirms its guidance for full-year 2026 revenue to be in the range of $3.18 billion to $3.22 billion and updates its guidance for non-GAAP fully diluted EPS to be in the range of $4.95 to $5.05 from the previous range of $4.70 to $4.80.

Conference Call Information

Globus Medical will hold a teleconference to discuss its 2026 second quarter results with the investment community at 4:30 p.m. Eastern Time today. Participants may access the conference call live via webcast on the Investors page of Globus Medical’s website at http://www.investors.globusmedical.com/news-events/events-webcasts.

To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The audio archive will be available after the call on the Investor page of the Globus Medical website.

About Globus Medical, Inc.

Globus Medical, Inc. is a leading global musculoskeletal technology company dedicated to solving unmet clinical needs and changing lives. We innovate with inspired urgency, provide world-class education and clinical support, and advance care throughout spine, orthopedic trauma, joint reconstruction, biomaterials and enabling technologies. Additional information can be accessed at www.globusmedical.com.

Non-GAAP Financial Measures

To supplement our financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), management uses certain non-GAAP financial measures. For example, non-GAAP Adjusted EBITDA, which represents net income before interest income, net and other non-operating expenses, provision for income taxes, depreciation and amortization, stock-based compensation expense, provision for litigation, merger and acquisition related costs, restructuring related costs, certain foreign currency acquisition-related impacts, bargain purchase gains, and gains and losses from strategic investments, is useful as an additional measure of operating performance, and particularly as a measure of comparative operating performance from period to period, as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our capital structure, asset base, income taxes and interest income and expense. We no longer include acquisition of in-process research and development as an adjustment to non-GAAP Adjusted EBITDA. Our management also uses non-GAAP Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections. Provision for litigation represents costs incurred for litigation settlements or unfavorable verdicts when the loss is known or considered probable and the amount can be reasonably estimated, or in the case of a favorable settlement, when income is realized. Merger and acquisition related costs represents the change in fair value of business-acquisition-related contingent consideration; costs related to integrating recently acquired businesses, including but not limited to costs to exit or convert contractual obligations, severance, retention bonus, duplicative costs and information system conversion; and specific costs related to the consummation of the acquisition process such as banker fees, legal fees, and other acquisition related professional fees. Restructuring related costs include severance, retention bonus, accelerated stock-based compensation expense, legal and tax fees for legal entity reorganization and costs associated with consolidating facilities. We also adjusted for certain foreign currency impacts related to the acquisition costs and gains/losses on strategic investments within other assets as we believe these impacts are not a measure of our operating performance.

In addition, for the period ended June 30, 2026 and for other comparative periods, we are presenting non-GAAP net income and non-GAAP diluted EPS, which represent net income and diluted EPS excluding the provision for litigation, amortization of intangibles, merger and acquisition related costs, restructuring related costs, certain foreign currency impacts, gains and losses from strategic investments, bargain purchase gains, certain income tax net benefits and non-recurring tax adjustments, and the tax effects of all of the foregoing adjustments. We no longer include acquisition of in-process research and development as an adjustment to non-GAAP net income. We also present non-GAAP gross profit, which excludes the impacts of any inventory acquisition-related costs within cost of goods sold. The tax effect adjustment represents the tax effect of the pre-tax non-GAAP adjustments excluded from non-GAAP net income. The tax impact of the non-GAAP adjustments is calculated based on the consolidated effective tax rate on a GAAP basis, applied to the non-GAAP adjustments, unless the underlying item has a materially different tax treatment, in which case the estimated tax rate applicable to the adjustment is used. We believe these non-GAAP measures are also useful indicators of our operating performance, and particularly as additional measures of comparative operating performance from period to period as they remove the effects of the foregoing items, which we believe are not reflective of underlying business trends.

Additionally, for the period ended June 30, 2026 and for other comparative periods, we also define the non-GAAP measure of free cash flow as the net cash provided by operating activities, adjusted for the impact of restricted cash, less the cash impact of purchases of property and equipment. We believe that this financial measure provides meaningful information for evaluating our overall financial performance for comparative periods as it facilitates an assessment of funds available to satisfy current and future obligations and fund acquisitions. Furthermore, the non-GAAP measure of constant currency net sales growth is calculated by translating current year net sales at the same average exchange rates in effect during the applicable prior year period. We believe constant currency net sales growth provides insight to the comparative increase or decrease in period net sales, in dollar and percentage terms, excluding the effects of fluctuations in foreign currency exchange rates. We are also presenting base business revenue growth, excluding the contribution from Nevro Corp. (“Nevro”), which we acquired in 2025. We believe these provide insight to how the Company is performing without the impact of our most recent acquisition.

Non-GAAP Adjusted EBITDA, non-GAAP net income, non-GAAP diluted EPS, non-GAAP gross profit, free cash flow, constant currency net sales growth, base business revenue growth, and day-adjusted basis sales are not calculated in conformity with GAAP. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. These measures do not include certain expenses that may be necessary to evaluate our liquidity or operating results. Our definitions of these non-GAAP measures may differ from that of other companies and therefore may not be comparable. The tables included in this release reconcile the GAAP financial measures to the non-GAAP financial measures discussed above for the three months ended June 30, 2026.

We are unable to present a quantitative reconciliation of our expected fully diluted GAAP EPS to non-GAAP diluted EPS as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of provision for litigation, amortization of intangibles, merger and acquisition-related costs, restructuring related costs, certain foreign currency acquisition-related impacts, bargain purchase gains, certain income tax net benefits from non-recurring tax adjustments, gains and losses from strategic investments, and the tax effects of all of the foregoing adjustments. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Income.

Safe Harbor Statements

All statements included in this press release other than statements of historical fact are forward-looking statements and may be identified by their use of words such as “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan” and other similar terms. These forward-looking statements are based on our current assumptions, expectations and estimates of future events and trends. Forward-looking statements are only predictions and are subject to many risks, uncertainties and other factors that may affect our businesses and operations and could cause actual results to differ materially from those predicted. These risks and uncertainties include, but are not limited to, the risks and costs associated with health epidemics, pandemics and similar outbreaks, factors affecting our quarterly results, our ability to manage our growth, our ability to sustain our profitability, demand for our products, our ability to compete successfully (including without limitation our ability to convince surgeons to use our products and our ability to attract and retain sales and other personnel), our ability to rapidly develop and introduce new products, our ability to develop and execute on successful business strategies, our ability to comply with laws and regulations that are or may become applicable to our businesses, our ability to safeguard our intellectual property, our success in defending legal proceedings brought against us, trends in the medical device industry, general economic conditions, the successful integration of businesses that we have acquired or may acquire in the future, and other risks. For a discussion of these and other risks, uncertainties, and other factors that could affect our results, refer to the disclosures contained in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”), including the sections labeled “Risk Factors” and “Cautionary Note Concerning Forward-Looking Statements,” and in our subsequent filings with the SEC. These documents are available at www.sec.gov. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for us to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. Except as may be required by applicable law, we undertake no obligation to update any forward-looking statements as a result of new information, events or circumstances or other factors arising or coming to our attention after the date hereof. As used herein, the “Company”, “Globus”, “Globus Medical”, “we”, “us”, and “our” refers to Globus Medical, Inc.

GLOBUS MEDICAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands, except per share amounts) 2026   2025   2026  2025
Net sales$789,612  $745,342  $1,549,466  $1,343,463        Cost of Sales and Operating expenses:       Cost of sales (exclusive of amortization of intangibles) 241,439   248,765   475,505   444,162Research and development 36,321   39,954   72,831   73,016Selling, general and administrative 286,823   303,622   584,598   546,421Amortization of intangibles 29,560   30,189   59,086   58,991Acquisition-related costs 11,080   33,156   17,457   34,213Restructuring costs 1,957   13,547   7,169   13,547        Operating income/(loss) 182,432   76,109   332,820   173,113        Other income/(expense), net       Interest income/(expense), net 7,074   693   12,508   2,374Foreign currency transaction gain/(loss) (860)  38   (2,973)  4,308Bargain purchase gain —   110,561   1,118   110,561Other income/(expense) 1,171   772   3,418   1,485Total other income/(expense), net 7,385   112,064   14,071   118,728        Income/(loss) before income taxes 189,817   188,173   346,891   291,841Income tax provision/(benefit) 38,248   (14,673)  71,020   13,533        Net income/(loss)$151,569  $202,846  $275,871  $278,308        Other comprehensive income/(loss), net of tax:       Unrealized gain/(loss) on marketable securities (551)  2   (1,711)  317Foreign currency translation gain/(loss) (2,657)  12,404   (2,439)  16,783Total other comprehensive income/(loss), net of tax (3,208)  12,406   (4,150)  17,100Comprehensive income/(loss)$148,361  $215,252  $271,721  $295,408        Earnings per share:       Basic$1.12  $1.50  $2.04  $2.05Diluted$1.10  $1.49  $2.00  $2.01Weighted average shares outstanding:       Basic 135,054   135,205   135,209   135,981Diluted 137,384   136,499   137,787   138,137 GLOBUS MEDICAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
  June 30, December 31,(In thousands, except share and per share values)2026
 2025
ASSETS   Current assets:   Cash and cash equivalents$507,745 $526,156Short-term marketable securities 87,397  31,087Accounts receivable, net of allowances $44,371 and $33,434, respectively 692,176  678,938Inventories 810,897  759,277Prepaid expenses and other current assets 70,195  65,426Income taxes receivable 47,102  64,727Total current assets 2,215,512  2,125,611Property and equipment, net 533,528  564,452Operating lease right of use assets 59,155  63,786Long-term marketable securities 245,358  71,819Intangible assets, net 692,624  745,064Goodwill 1,438,216  1,435,033Other assets 79,238  78,781Deferred income taxes 224,627  218,215Total assets$5,488,258 $5,302,761    LIABILITIES AND EQUITY   Current liabilities:   Accounts payable$106,941 $98,852Accrued expenses 300,728  333,586Operating lease liabilities 14,385  14,738Income taxes payable 6,036  4,155Business acquisition liabilities 23,276  19,513Deferred revenue 27,981  27,655Total current liabilities 479,347  498,499Business acquisition liabilities, net of current portion 82,113  81,995Operating lease liabilities 96,807  103,918Deferred income taxes and other tax liabilities 42,342  23,756Other liabilities 19,046  21,343Total liabilities 719,655  729,511    Equity:   Class A common stock; $0.001 par value. Authorized 500,000,000 shares; issued and outstanding 111,822,190 and 112,625,126 shares at June 30, 2026 and December 31, 2025, respectively 112  113Class B common stock; $0.001 par value. Authorized 275,000,000 shares; issued and outstanding 22,430,097 and 22,430,097 shares at June 30, 2026 and December 31, 2025, respectively 22  22Additional paid-in capital 3,230,186  3,169,812Accumulated other comprehensive income/(loss) 11,196  15,346Retained earnings 1,527,087  1,387,957Total equity 4,768,603  4,573,250Total liabilities and equity$5,488,258 $5,302,761 GLOBUS MEDICAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
   Six Months Ended
June 30,(In thousands) 2026   2025 Cash flows from operating activities:   Net income$275,871  $278,308 Adjustments to reconcile net income to net cash provided by operating activities:   Bargain purchase gain (1,118)  (110,561)Depreciation and amortization 139,355   136,284 Provision for excess and obsolete inventory 9,795   10,933 Amortization of acquisition accounting fair value step up —   12,673 Stock-based compensation expense 26,000   26,823 Allowance for expected credit losses 10,398   4,554 Change in fair value of business acquisition liabilities 16,059   5,389 Change in deferred income taxes 15,748   (41,236)(Gain)/loss on disposal of assets, net 5,558   6,131 Payment of business acquisition-related liabilities (2,596)  (15,764)Net (gain)/loss from foreign currency adjustment 218   (11,342)(Increase) decrease in:   Accounts receivable (27,211)  20,395 Inventories (44,551)  (11,722)Prepaid expenses and other assets (459)  852 Increase (decrease) in:   Accounts payable 5,389   (4,085)Accrued expenses and other liabilities (35,738)  (13,841)Income taxes payable/receivable 19,387   (38,626)Net cash provided by/(used in) operating activities 412,105   255,165 Cash flows from investing activities:   Purchases of marketable securities (254,013)  (1,750)Sales and maturities of marketable securities 21,483   174,238 Purchases of property and equipment (72,783)  (82,665)Acquisition of businesses, net of cash acquired and purchases of intangible and other assets (6,409)  (257,546)Net cash provided by/(used in) investing activities (311,722)  (167,723)Cash flows from financing activities:   Payment of business acquisition-related liabilities (13,720)  (7,864)Net proceeds from exercise of stock options 36,932   15,920 Payments related to tax withholdings for share-based compensation (3,453)  (2,953)Repurchase of common stock (136,058)  (215,451)Repayment of senior convertible notes —   (449,985)Net cash provided by/(used in) financing activities (116,299)  (660,333)Effect of foreign exchange rates on cash (2,495)  17,899 Net increase/(decrease) in cash and cash equivalents (18,411)  (554,992)Cash and cash equivalents at beginning of period 526,156   784,438 Cash and cash equivalents at end of period$507,745  $229,446     Supplemental disclosures of cash flow information:   Income taxes paid, net$30,603  $93,226 Non-cash investing and financing activities:   Accrued purchases of property and equipment$13,390  $13,454  Supplemental Financial InformationNet Sales by Product Category:

  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands)2026
 2025
 2026
 2025
Musculoskeletal Solutions$763,540 $710,182 $1,496,524 $1,286,115Enabling Technologies 26,072  35,160  52,942  57,348Total net sales$789,612 $745,342 $1,549,466 $1,343,463 Liquidity and Capital Resources:
  June 30, December 31,(In thousands)2026
 2025
Cash and cash equivalents$507,745 $526,156Short-term marketable securities 87,397  31,087Long-term marketable securities 245,358  71,819Total cash, cash equivalents and marketable securities$840,500 $629,062
The following tables reconcile GAAP to non-GAAP financial measures.

Non-GAAP Adjusted EBITDA Reconciliation Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands, except percentages) 2026   2025   2026   2025 Net income/(loss)$151,569  $202,846  $275,871  $278,308 Interest (income)/expense, net (7,074)  (693)  (12,508)  (2,374)Provision for income taxes 38,248   (14,673)  71,020   13,533 Depreciation and amortization 70,084   70,631   140,205   136,705 EBITDA 252,827   258,111   474,588   426,172 Stock-based compensation expense 13,383   13,258   25,997   26,310 Provision for litigation, net 62   (2,621)  196   (3,908)Merger and acquisition-related costs(1) 11,290   40,393   17,731   41,499 Net (gain) loss from strategic investments (364)  (1,248)  (1,189)  (1,309)Non-cash acquisition-related foreign currency impacts (119)  (8,565)  (217)  (12,337)Restructuring costs 2,760   19,915   9,147   20,649 Bargain purchase gain —   (110,561)  (1,118)  (110,561)Adjusted EBITDA$279,839  $208,682  $525,135  $386,515         Net income/(loss) as a percentage of net sales 19.2%  27.2%  17.8%  20.7%Adjusted EBITDA as a percentage of net sales 35.4%  28.0%  33.9%  28.8% (1)  Merger and acquisition-related costs represent certain costs associated with acquisitions. These costs, presented on a before-tax effect basis, are included in Non-GAAP Merger and Acquisition-related Costs Table.

Non-GAAP Merger and Acquisition-related Costs Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands)2026
 2025
 2026
 2025
Amortization of inventory fair value step up$— $5,967 $— $6,016Change in fair value of business acquisition liabilities 9,707  5,235  16,059  5,402Employee-related costs(b) 1,373  27,418  1,398  27,418Other acquisition-related costs(a) 210  1,773  274  2,663Merger and acquisition-related costs$11,290 $40,393 $17,731 $41,499 (a)  Primarily comprised of legal fees, advisory and consulting fees.
(b)  Primarily comprised of severance, share based compensation and termination fees.

Non-GAAP Net Income Reconciliation Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands) 2026   2025   2026   2025 Net income/(loss)$151,569  $202,846  $275,871  $278,308 Provision for litigation, net 62   (2,621)  196   (3,908)Amortization of intangibles 29,560   30,189   59,086   58,991 Merger and acquisition -related costs(1) 11,290   40,393   17,731   41,499 Net gain/(loss) on strategic investments (364)  (1,248)  (1,189)  (1,309)Non-cash acquisition-related foreign currency impacts (119)  (8,565)  (217)  (12,337)Restructuring costs 2,760   19,915   9,147   20,649 Bargain purchase gain —   (110,561)  (1,118)  (110,561)Provision for income tax benefit from non-recurring tax adjustments —   (34,815)  —   (34,815)Tax effect of adjusting items (10,464)  (18,751)  (20,317)  (24,907)Non-GAAP net income/(loss)$184,294  $116,782  $339,190  $211,610  (1)  See footnote 1 to the Non-GAAP Adjusted EBITDA Reconciliation Table for the detail for these costs.

Non-GAAP Gross Profit Reconciliation Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands) 2026   2025   2026   2025 Net sales$789,612  $745,342  $1,549,466  $1,343,463 Cost of sales (exclusive of amortization of intangibles) 241,439   248,765   475,505   444,162 Amortization of intangibles 21,090   24,643   42,221   46,851 Gross Profit$527,083  $471,934  $1,031,740  $852,450         Amortization of inventory fair value step up —   5,967   —   6,016 Amortization of intangibles 21,090   24,643   42,221   46,851 Adjusted Gross Profit$548,173  $502,544  $1,073,961  $905,317         Gross Profit % of Net Sales 66.8%  63.3%  66.6%  63.5%Adjusted Gross Profit % of Net Sales 69.4%  67.4%  69.3%  67.4% Non-GAAP Diluted Earnings Per Share Reconciliation Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands) 2026   2025   2026   2025 Diluted earnings per share, as reported$1.10  $1.49  $2.00  $2.01 Provision for litigation, net —   (0.02)  —   (0.03)Amortization of intangibles 0.22   0.22   0.43   0.43 Merger and acquisition -related costs(1) 0.08   0.29   0.13   0.30 Net (gain) loss from strategic investments —   (0.01)  (0.01)  (0.01)Non-cash acquisition-related foreign currency impacts —   (0.06)  —   (0.09)Restructuring costs 0.02   0.14   0.07   0.15 Bargain purchase gain —   (0.80)  (0.01)  (0.80)Provision for income tax benefit from non-recurring tax adjustments —   (0.26)  —   (0.25)Tax effect of adjusting items (0.08)  (0.14)  (0.15)  (0.18)Non-GAAP diluted earnings per share$1.34  $0.86  $2.46  $1.53  (1) See footnote 1 to the Non-GAAP Adjusted EBITDA Reconciliation Table above for the detail of these costs.
 *Amounts may not add due to rounding.

Non-GAAP Free Cash Flow Reconciliation Table:
  Three Months Ended
June 30, Six Months Ended
June 30,(In thousands) 2026   2025   2026   2025 Net cash provided by operating activities$209,742  $77,865  $412,105  $255,165 Purchases of property and equipment (33,168)  (46,562)  (72,783)  (82,665)Free cash flow$176,574  $31,303  $339,322  $172,500  Non-GAAP Net Sales on a Constant Currency Basis Comparative Table:
  Three Months Ended
June 30, Reported
Net Sales
Growth
 Currency
Impact on
Current
Period Net Sales
 Constant
Currency
Net Sales
Growth
(In thousands, except percentages)2026
 2025
   United States$619,105 $600,784 3.0% $— 3.0%International 170,507  144,558 18.0%  2,580 16.2%Total net sales$789,612 $745,342 5.9% $2,580 5.6%  Six Months Ended
June 30, Reported
Net Sales
Growth
 Currency
Impact on
Current
Period Net Sales
 Constant
Currency
Net Sales
Growth
(In thousands, except percentages)2026
 2025
   United States$        1,223,993         $        1,084,641         12.8% $        —         12.8%International         325,473                  258,822         25.8%          11,554         21.3%Total net sales$        1,549,466         $        1,343,463         15.3% $        11,554         14.5%
Investor Contact:

Brian Kearns
Senior Vice President, Corporate Development and Investor Relations
Phone: (610) 930-1800
Email: [email protected]
www.globusmedical.com