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Posted by Defense World Staff on Aug 5th, 2026

Twilio (NYSE:TWLO – Get Free Report) is expected to be posting its Q2 2026 results after the market closes on Thursday, August 6th. Analysts expect the company to announce earnings of $1.32 per share and revenue of $1.4310 billion for the quarter. Investors may review the information on the company’s upcoming Q2 2026 earning summary page for the latest details on the call scheduled for Thursday, August 6, 2026 at 5:00 PM ET.

Twilio Price Performance Shares of NYSE TWLO opened at $193.85 on Wednesday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 4.66 and a current ratio of 4.66. The firm has a fifty day moving average of $202.37 and a 200 day moving average of $160.04. The firm has a market cap of $29.42 billion, a PE ratio of 302.89, a PEG ratio of 3.91 and a beta of 1.37. Twilio has a one year low of $91.84 and a one year high of $238.48.

Analyst Ratings Changes Several research analysts recently weighed in on the stock. Morgan Stanley restated an “overweight” rating and set a $200.00 price target on shares of Twilio in a research report on Friday, May 1st. Oppenheimer increased their target price on Twilio from $200.00 to $235.00 and gave the company an “outperform” rating in a report on Monday, May 18th. Bank of America raised Twilio from an “underperform” rating to a “buy” rating and lifted their price target for the stock from $110.00 to $190.00 in a research note on Wednesday, April 22nd. BTIG Research boosted their price target on Twilio from $215.00 to $245.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings upgraded Twilio from a “sell (d+)” rating to a “hold (c)” rating in a report on Wednesday, May 6th. Four equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $220.59.

Get Our Latest Report on TWLO

Insider Buying and Selling In related news, CFO Aidan Viggiano sold 8,528 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $205.43, for a total value of $1,751,907.04. Following the completion of the sale, the chief financial officer owned 109,724 shares of the company’s stock, valued at approximately $22,540,601.32. This trade represents a 7.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Erika Rottenberg sold 2,000 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $199.01, for a total value of $398,020.00. Following the completion of the sale, the director directly owned 30,995 shares of the company’s stock, valued at $6,168,314.95. This trade represents a 6.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,802,480 shares of company stock valued at $341,620,487 over the last ninety days. 0.21% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Twilio A number of institutional investors have recently made changes to their positions in the stock. State Street Corp lifted its stake in Twilio by 47.8% during the third quarter. State Street Corp now owns 5,879,395 shares of the technology company’s stock worth $588,469,000 after purchasing an additional 1,900,551 shares in the last quarter. Invesco Ltd. boosted its holdings in Twilio by 56.9% during the 4th quarter. Invesco Ltd. now owns 3,151,546 shares of the technology company’s stock valued at $448,276,000 after acquiring an additional 1,142,309 shares during the period. Royal Bank of Canada grew its position in Twilio by 3.9% in the 4th quarter. Royal Bank of Canada now owns 2,944,377 shares of the technology company’s stock valued at $418,808,000 after acquiring an additional 110,941 shares in the last quarter. Alyeska Investment Group L.P. grew its position in Twilio by 39.7% in the 3rd quarter. Alyeska Investment Group L.P. now owns 2,643,859 shares of the technology company’s stock valued at $264,624,000 after acquiring an additional 750,951 shares in the last quarter. Finally, SRS Investment Management LLC purchased a new stake in Twilio during the fourth quarter worth about $257,494,000. 84.27% of the stock is currently owned by institutional investors and hedge funds.

About Twilio (Get Free Report)

Twilio Inc (NYSE: TWLO) is a cloud communications platform-as-a-service (CPaaS) company that enables developers and enterprises to embed communications into web and mobile applications. Its core offering is a suite of programmable APIs that handle messaging (SMS, MMS, and chat), voice calling, video, and user authentication. Twilio’s platform is designed to help businesses build customer engagement and communication workflows without managing telecommunications infrastructure directly.

The company’s product portfolio includes programmable voice and messaging APIs, Twilio Video for real‑time video applications, and Twilio Authy for multi‑factor authentication.

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Posted by Defense World Staff on Aug 5th, 2026

Amundi reduced its holdings in Option Care Health, Inc. (NASDAQ:OPCH – Free Report) by 5.1% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 709,607 shares of the company’s stock after selling 38,525 shares during the quarter. Amundi owned 0.45% of Option Care Health worth $19,103,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also modified their holdings of OPCH. Durable Capital Partners LP boosted its stake in Option Care Health by 134.2% in the 2nd quarter. Durable Capital Partners LP now owns 8,237,577 shares of the company’s stock worth $267,557,000 after purchasing an additional 4,720,988 shares during the period. Fuller & Thaler Asset Management Inc. grew its holdings in shares of Option Care Health by 12.1% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 6,958,800 shares of the company’s stock worth $221,707,000 after buying an additional 752,058 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in Option Care Health by 6.2% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 4,248,425 shares of the company’s stock valued at $135,355,000 after buying an additional 247,118 shares during the last quarter. Dimensional Fund Advisors LP raised its position in Option Care Health by 0.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,876,856 shares of the company’s stock valued at $104,368,000 after buying an additional 36,208 shares during the last quarter. Finally, Southpoint Capital Advisors LP lifted its stake in Option Care Health by 20.0% in the 1st quarter. Southpoint Capital Advisors LP now owns 3,600,000 shares of the company’s stock valued at $96,912,000 after acquiring an additional 600,000 shares in the last quarter. 98.05% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Option Care Health In other news, Director Timothy P. Sullivan bought 24,154 shares of the business’s stock in a transaction that occurred on Thursday, May 7th. The stock was acquired at an average cost of $20.69 per share, for a total transaction of $499,746.26. Following the purchase, the director owned 73,383 shares of the company’s stock, valued at approximately $1,518,294.27. This trade represents a 49.06% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 1.70% of the company’s stock.

Wall Street Analyst Weigh In A number of research firms have weighed in on OPCH. Stephens reaffirmed an “equal weight” rating and set a $24.00 price target (down from $30.00) on shares of Option Care Health in a research report on Friday, July 17th. Barrington Research cut their price objective on shares of Option Care Health from $42.00 to $32.00 and set an “outperform” rating on the stock in a research report on Friday, May 1st. UBS Group restated a “buy” rating on shares of Option Care Health in a report on Tuesday, June 16th. Wall Street Zen raised shares of Option Care Health from a “hold” rating to a “buy” rating in a research report on Saturday. Finally, TD Cowen cut their price target on shares of Option Care Health from $37.00 to $23.00 and set a “hold” rating on the stock in a research report on Friday, May 1st. Seven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $29.92.

Check Out Our Latest Research Report on OPCH

Option Care Health Price Performance NASDAQ:OPCH opened at $23.69 on Wednesday. The stock has a market capitalization of $3.55 billion, a PE ratio of 17.81, a P/E/G ratio of 1.41 and a beta of 0.65. Option Care Health, Inc. has a 1-year low of $18.01 and a 1-year high of $36.80. The firm has a fifty day simple moving average of $21.59 and a 200 day simple moving average of $26.60. The company has a current ratio of 1.47, a quick ratio of 0.98 and a debt-to-equity ratio of 0.91.

Option Care Health (NASDAQ:OPCH – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.02. Option Care Health had a net margin of 3.68% and a return on equity of 18.74%. The firm had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.42 billion. During the same period in the prior year, the firm posted $0.41 earnings per share. The company’s quarterly revenue was up 1.9% compared to the same quarter last year. Option Care Health has set its FY 2026 guidance at 1.850-1.920 EPS. On average, research analysts expect that Option Care Health, Inc. will post 1.64 EPS for the current fiscal year.

Option Care Health Company Profile (Free Report)

Option Care Health (NASDAQ: OPCH) is a leading provider of home and alternate site infusion services in the United States. The company specializes in the administration of injectable therapies, including antibiotics, nutrition, hydration, immunoglobulin, pain management and specialty pharmaceuticals. Through its nationwide network of infusion pharmacies and nursing professionals, Option Care Health delivers customized care plans and in-home nursing visits to patients managing complex or chronic conditions outside of a hospital setting.

Option Care Health traces its current structure to the completion of its merger with BioScrip in early 2021, combining two of the industry’s most experienced home infusion businesses.

Featured Articles Five stocks we like better than Option Care Health System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter Want to see what other hedge funds are holding OPCH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Option Care Health, Inc. (NASDAQ:OPCH – Free Report).

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Raises Fiscal Year 2026 Outlook Across Key Metrics on Strong Operational Performance

NEEDHAM, Mass.--(BUSINESS WIRE)--SharkNinja, Inc. (“SharkNinja” or the “Company”) (NYSE: SN), a global product design and technology company, today announced its financial results for the second quarter ended June 30, 2026.

Highlights for the Second Quarter 2026 as compared to the Second Quarter 2025

Net sales increased 22.2% to $1,765.5 million. Gross margin and Adjusted Gross Margin decreased 30 and 70 basis points, respectively. Net income decreased 7.0% to $129.8 million. Adjusted Net Income increased 29.3% to $178.2 million. Adjusted EBITDA increased 18.6% to $264.9 million, or 15.0% of net sales. Mark Barrocas, Chief Executive Officer, commented: “Q2 was a standout performance for SharkNinja, with net sales growth accelerating to 22.2%, our fastest pace since 2024, powered by broad-based strength across our categories, geographies, and channels. This quarter was a clear demonstration of the size and durability of our core business, an area we believe is often underestimated. Our largest, most established franchises like Cleaning and Blending continue to grow through diversification and relentless innovation, and our International business delivered 36.6% growth, accelerating yet again with strong results across the UK, Europe, and Latin America.

That strength carried through to our bottom line, with Adjusted EBITDA up 18.6% and Adjusted Net Income Per Share up 29.9% year-over-year. Our steadfast commitment to solving consumer problems is resonating across the globe, and we believe the number of problems left to address is endless. We head into the second half of the year with real momentum and increasing confidence in our ability to deliver strong, profitable growth over the long term.”

Three Months Ended June 30, 2026

Net sales increased 22.2% to $1,765.5 million, compared to $1,444.9 million during the same period last year, or 21.6% on a constant currency basis. The increase in net sales resulted from growth in Cooking and Beverage Appliances, Beauty and Home Environment Appliances, Food Preparation Appliances and Cleaning Appliances.

Cleaning Appliances net sales increased by $20.6 million, or 4.1%, to $522.0 million, compared to $501.5 million in the prior year quarter, driven by the carpet extractor and cordless vacuums sub-categories. Cooking and Beverage Appliances net sales increased by $133.3 million, or 36.5%, to $499.0 million, compared to $365.7 million in the prior year quarter, driven by sales of our Ninja Luxe Café espresso machine and the strength of the Ninja Crispi. Food Preparation Appliances net sales increased by $53.8 million, or 13.3%, to $458.6 million, compared to $404.8 million in the prior year quarter, driven by strong growth in our blending sub-category. Beauty and Home Environment Appliances net sales increased by $112.9 million, or 65.3%, to $285.8 million, compared to $172.9 million in the prior year quarter, driven by continued strength of our skincare and fan product portfolios. Geographically, Domestic net sales increased by $153.4 million, or 15.5%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. This increase was driven by growth within existing categories and the success of new product categories. International net sales increased by $167.2 million, or 36.6%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. This increase was driven by continued success within core categories into new international markets and consistent growth in our key international countries.

Gross profit increased 21.5% to $860.3 million, or 48.7% of net sales, compared to $708.2 million, or 49.0% of net sales, in the prior year quarter. Adjusted Gross Profit increased 20.4% to $860.3 million, or 48.7% of net sales, compared to $714.4 million, or 49.4% of net sales, in the prior year quarter. The decrease in gross margin and Adjusted Gross Margin of 30 and 70 basis points, respectively, was primarily driven by the cost pressures related to tariffs in the U.S. market, unfavorable foreign currency, and increased retailer activations, partially offset by cost optimization efforts, favorable shifts in our categories and channels, and a decline in the amounts owed under a contractual sourcing service fee paid to JS Global for supply chain services, which ended July 31, 2025.

Research and development expenses increased 22.3% to $109.3 million, or 6.2% of net sales, compared to $89.4 million, or 6.2% of net sales, in the prior year quarter. This increase was primarily driven by an increase of $13.2 million in personnel-related expenses reflecting increased headcount to support new product categories and new market expansion, and an increase of $3.5 million in prototypes and testing costs.

Sales and marketing expenses increased 23.4% to $441.5 million, or 25.0% of net sales, compared to $357.7 million, or 24.8% of net sales, in the prior year quarter. This increase was primarily attributable to increases of $26.2 million in delivery and distribution costs, driven by higher volumes, changes in product mix and higher fuel costs, $20.7 million in advertising-related expenses, $19.9 million in personnel-related expenses to support new product launches and expansion into new markets, $8.8 million in credit card processing and merchant fees, and $2.6 million in product sample costs to support marketing and social commerce initiatives.

General and administrative expenses increased 40.8% to $130.1 million, or 7.4% of net sales, compared to $92.4 million, or 6.4% of net sales, in the prior year quarter. This increase was driven by an increase of $30.3 million in personnel-related expenses, primarily due to a $22.6 million increase in share-based compensation, as well as an increase of $5.1 million in professional and consulting fees.

Operating income increased 6.4% to $179.4 million, or 10.1% of net sales, compared to $168.6 million, or 11.6% of net sales, during the prior year quarter. Adjusted Operating Income increased 19.6% to $231.5 million, or 13.1% of net sales, compared to $193.5 million, or 13.4% of net sales, in the prior year quarter.

Net income decreased 7.0% to $129.8 million, or 7.4% of net sales, compared to $139.6 million, or 9.7% of net sales, in the prior year quarter. Net income per diluted share decreased 6.1% to $0.92, compared to $0.98 in the prior year quarter.

Adjusted Net Income increased 29.3% to $178.2 million, or 10.1% of net sales, compared to $137.8 million, or 9.5% of net sales, in the prior year quarter. Adjusted Net Income per diluted share increased 29.9% to $1.26, compared to $0.97 in the prior year quarter.

Adjusted EBITDA increased 18.6% to $264.9 million, or 15.0% of net sales, compared to $223.4 million, or 15.5% of net sales, in the prior year quarter.

Balance Sheet and Cash Flow Highlights

As of June 30, 2026, the Company had cash and cash equivalents of $779.8 million and available capacity under its revolving credit facility of $489.8 million. Total debt, excluding unamortized deferred financing costs, was $718.9 million.

Inventories as of June 30, 2026 increased 14.1% to $1,143.6 million, compared to $1,002.2 million as of December 31, 2025.

During the three and six months ended June 30, 2026, the Company repurchased 815,233 and 1,008,368 ordinary shares, respectively, under its $750.0 million share repurchase program authorized by the Board of Directors on February 11, 2026 (the “Repurchase Program”) at an aggregate cost of $99.7 million and $119.7 million, respectively, at an average price of $122.29 and $118.71 per share, respectively.

Fiscal 2026 Outlook

For fiscal year 2026, SharkNinja expects:

Net sales to increase 16.0% to 17.0% compared to the prior year (above the prior expectation of 11.5% to 12.5%). Adjusted Net Income per diluted share between $6.45 and $6.55, reflecting a 22.2% to 24.1% increase compared to the prior year (above the prior expectation of between $6.00 and $6.10, reflecting a 13.6% to 15.5% increase). Of the $0.45 increase, approximately $0.15 is associated with the expected net tariff refund benefit. Adjusted EBITDA between $1,357 million and $1,369 million, reflecting a 19.5% to 20.5% increase compared to the prior year (above the prior expectation of between $1,290 million and $1,300 million, reflecting a 13.5% to 14.5% increase). Of the $67 million to $69 million increase, approximately $30 million is associated with the expected net tariff refund benefit. A GAAP effective tax rate of approximately 22.0% to 23.0%. Diluted weighted average shares outstanding of approximately 142.5 million. Capital expenditures in the range of $190 million to $210 million primarily to support investments in new product launches and technology. The Company’s updated outlook reflects stronger underlying operating performance complemented by the expected net benefit from tariff refunds. In Q3 2026, SharkNinja submitted refund claims of approximately $247.1 million through the U.S. Customs and Border Protection (“CBP”) refund process, and the CBP accepted those claims. As a result, the Company expects to recognize a benefit of approximately $247.1 million as a reduction of cost of sales, with a corresponding receivable, in the third quarter of 2026. The underlying duties subject to refund are expected to be split approximately evenly between amounts previously expensed in fiscal 2025 and in the first half of 2026. We have treated the refunds consistently with the period in which the underlying tariff costs were recognized. Refunds associated with tariffs expensed in 2025 will benefit our GAAP results and cash flow, but will be excluded from Adjusted Net Income, Adjusted EBITDA, and Adjusted Net Income per diluted share in our Fiscal 2026 Outlook. Refunds associated with tariffs incurred in 2026 will be reflected in these same Adjusted metrics as part of our revised full year outlook, consistent with the treatment of the original expense, and inclusive of the Company’s current intention to reinvest back into the business to support long-term growth. Areas of reinvestment may include retail activation, media, technology and AI capabilities, and mitigation of ongoing updated tariff and input-cost pressures. The Company’s updated outlook also reflects current tariff levels, including minimum rates of 10% for Indonesia, Malaysia, and Cambodia, and 12.5% for China, Vietnam, and Thailand, assumed to persist for the remainder of 2026.

Conference Call Details

A conference call to discuss the second quarter 2026 financial results is scheduled for today, August 5, 2026, at 8:30 a.m. Eastern Time. A live audio webcast of the conference call will be available online at ir.sharkninja.com. Investors and analysts interested in participating in the live call are invited to dial 1-833-461-5787 or 1-585-542-9983 and enter confirmation code 253944025. The webcast will be archived and available for replay.

About SharkNinja

SharkNinja is a global product design and technology company, with a diversified portfolio of 5-star rated lifestyle solutions that positively impact people’s lives in homes around the world. Powered by two trusted, global brands, Shark and Ninja, the company has a proven track record of bringing disruptive innovation to market and developing one consumer product after another has allowed SharkNinja to enter multiple product categories, driving significant growth and market share gains. Headquartered in Needham, Massachusetts with more than 4,100 associates, the company’s products are sold at key retailers, online and offline, and through distributors around the world. For more information, please visit sharkninja.com and follow @SharkNinja.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our future business, financial condition, results of operations and prospects and fiscal 2026 outlook. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or phrases or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not statements of historical fact, and are based on current expectations, estimates and projections about our industry as well as certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which you should consider and read carefully, including but not limited to risks related to: our ability to maintain and strengthen our brands to generate and maintain ongoing demand for our products; our ability to commercialize a continuing stream of new products and line extensions; our ability to manage our future growth effectively; the level of consumer spending on our products; our ability to penetrate and expand into new markets; our ability to maintain product safety, quality and performance; highly competitive markets; our reliance on suppliers; our ability to timely and effectively obtain shipments of products from our suppliers and deliver products to our retailers, consumers and distributors; our ability to maintain existing consumers and attract new consumers; our ability to expand our DTC sales channel; our significant international operations; our ability to accurately forecast demand and manage product inventory; inflation, changes in the cost or availability of raw materials, energy, transportation and other necessary supplies and services; our reliance on our retailers and distributors; use of social media and influencers; financial difficulties; operational risks; our products being counterfeited or imitated in the market; payment-related risks; the failure of any bank in which we deposit our funds; seasonal and quarterly variations; conflicts with our retailers; our ability to generate anticipated cost savings, successfully implement our strategies or efficiently manage our supply chain and manufacturing processes; potential acquisitions of or investments in other companies; our ability to meet demand and store inventory; our dependence on highly skilled personnel; intellectual property, information technology and data privacy; our legal, tax, and regulatory environment, including significant changes to U.S. trade policies that restrict imports or increase import tariffs; our indebtedness; changes in credit markets and decisions made by credit providers; currency exchange rate fluctuations; our dependence on cash generated from our operations to support our growth; future financing activities; our critical accounting policies; our goodwill, other intangible assets or fixed assets; divestitures and product category exits; our status as a holding company; the separation and distribution from JS Global; the active trading market for our ordinary shares; substantial shares of our ordinary shares; our limited history as a stand-alone public company; the requirements of being a public company; our internal control over financial reporting; our transition to a U.S. domestic reporting company; our significant shareholder Mr. Wang; the limited experience of our management team in managing a U.S. public company; risks related to our Memorandum and Articles of Association; risks under the laws of the Cayman Islands; claims for indemnification; and dividends on our ordinary shares.

This list of factors should not be construed as exhaustive and should be read in conjunction with those described in our Annual Report on Form 10-K filed with the SEC under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other filings we make with the SEC. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us 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 statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release, and our future levels of activity and performance, may not occur and actual results could differ materially and adversely from those described or implied in the forward-looking statements. As a result, you should not regard any of these forward-looking statements as a representation or warranty by us or any other person or place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. In addition, statements that contain “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that this information provides a reasonable basis for these statements, this information may be limited or incomplete. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. We qualify all of our forward-looking statements by the cautionary statements contained in this press release.

SHARKNINJA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(unaudited)

    As of

  June 30, 2026

December 31, 2025

Assets

  Current assets:

  Cash and cash equivalents

  $

779,832

$

777,289

Accounts receivable, net

  1,582,067

1,667,143

Inventories

  1,143,597

1,002,205

Prepaid expenses and other current assets

  257,388

164,628

Total current assets

  3,762,884

3,611,265

Property and equipment, net

  251,255

232,226

Operating lease right-of-use assets

  193,213

142,487

Intangible assets, net

  446,891

451,137

Goodwill

  834,781

834,781

Deferred tax assets

  33,905

10,706

Other assets, noncurrent

  69,227

66,832

Total assets

  $

5,592,156

$

5,349,434

Liabilities and Shareholders’ Equity

  Current liabilities:

  Accounts payable

  $

760,812

$

679,534

Accrued expenses and other current liabilities

  979,219

1,016,645

Tax payable

  29,876

38,092

Debt, current

  39,344

39,344

Total current liabilities

  1,809,251

1,773,615

Debt, noncurrent

  677,123

696,795

Operating lease liabilities, noncurrent

  196,549

140,981

Deferred tax liabilities

  13,153

16,252

Other liabilities, noncurrent

  52,709

45,580

Total liabilities

  2,748,785

2,673,223

Shareholders’ equity:

  Ordinary shares, $0.0001 par value per share, 1,000,000,000 shares authorized; 141,925,758 shares issued and 140,917,390 shares outstanding as of June 30, 2026; 141,158,026 shares issued and outstanding as of December 31, 2025

  14

14

Additional paid-in capital

  1,082,451

1,045,504

Treasury shares, at cost; 1,008,368 shares and 0 shares as of June 30, 2026 and December 31, 2025, respectively

  (119,705

)

—

Retained earnings

  1,861,676

1,610,398

Accumulated other comprehensive income (loss)

  18,935

20,295

Total shareholders’ equity

  2,843,371

2,676,211

Total liabilities and shareholders’ equity

  $

5,592,156

$

5,349,434

SHARKNINJA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except share and per share data)

(unaudited)

    Three Months Ended June 30,

Six Months Ended June 30,

  2026

2025

2026

2025

Net sales(1)(2)

  $

1,765,476

$

1,444,876

$

3,178,282

$

2,667,514

Cost of sales

  905,139

736,709

1,622,977

1,356,121

Gross profit

  860,337

708,167

1,555,305

1,311,393

Operating expenses:

  Research and development

  109,334

89,409

208,217

177,012

Sales and marketing

  441,510

357,720

756,848

633,457

General and administrative

  130,113

92,391

246,335

187,331

Total operating expenses

  680,957

539,520

1,211,400

997,800

Operating income

  179,380

168,647

343,905

313,593

Interest expense, net

  (7,890

)

(13,765

)

(14,497

)

(26,394

)

Other (expense) income, net

  (7,797

)

26,003

(18,133

)

39,219

Income before income taxes

  163,693

180,885

311,275

326,418

Provision for income taxes

  33,877

41,287

59,997

68,985

Net income

  $

129,816

$

139,598

$

251,278

$

257,433

Net income per share, basic

  $

0.92

$

0.99

$

1.78

$

1.83

Net income per share, diluted

  $

0.92

$

0.98

$

1.77

$

1.81

Weighted-average number of shares used in computing net income per share, basic

  141,384,805

141,044,315

141,390,616

140,834,338

Weighted-average number of shares used in computing net income per share, diluted

  141,507,017

141,871,399

142,056,803

142,031,280

(1) Net sales in our product categories were as follows:

  Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands)

  2026

2025

2026

2025

Cleaning Appliances

  $

522,046

$

501,479

$

1,038,596

$

942,903

Cooking and Beverage Appliances

  499,033

365,718

913,623

711,655

Food Preparation Appliances

  458,614

404,787

746,145

702,179

Beauty and Home Environment Appliances

  285,783

172,892

479,918

310,777

Total net sales

  $

1,765,476

$

1,444,876

$

3,178,282

$

2,667,514

(2) Net sales by region, based on the billing address of customers, were as follows:

  Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands)

  2026

2025

2026

2025

Domestic(a)

  $

1,141,897

$

988,453

$

2,057,888

$

1,833,541

International(b)

  623,579

456,423

1,120,394

833,973

Total net sales

  $

1,765,476

$

1,444,876

$

3,178,282

$

2,667,514

SHARKNINJA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

      Six Months Ended June 30,

  2026

2025

Cash flows from operating activities:

  Net income

  $

251,278

$

257,433

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

  Depreciation and amortization

  78,439

67,017

Share-based compensation

  77,523

22,478

Provision for credit losses

  572

3,382

Provision for excess and obsolete inventory

  (5,213

)

7,364

Non-cash lease expense

  11,055

9,918

Deferred income taxes, net

  (26,298

)

(21,324

)

Other

  2,804

2,074

Changes in operating assets and liabilities:

  Accounts receivable

  73,700

(8,837

)

Inventories

  (141,343

)

(124,722

)

Prepaid expenses and other assets

  (92,760

)

(111,098

)

Accounts payable

  88,564

(61,222

)

Tax payable

  (8,216

)

(6,556

)

Operating lease liabilities

  (10,792

)

(5,300

)

Accrued expenses and other liabilities

  (23,814

)

(94,545

)

Net cash provided by (used in) operating activities

  275,499

(63,938

)

Cash flows from investing activities:

  Purchase of property and equipment

  (83,056

)

(60,093

)

Purchase of intangible asset

  (8,266

)

(3,007

)

Capitalized internal-use software development

  —

(1,315

)

Net cash used in investing activities

  (91,322

)

(64,415

)

Cash flows from financing activities:

  Repayment of debt

  (20,250

)

(20,250

)

Payment of employee tax withholdings on vesting of equity awards

  (48,675

)

(49,237

)

Proceeds from shares issued under employee share purchase plan

  8,099

7,425

Repurchase of ordinary shares

  (119,176

)

—

Net cash used in financing activities

  (180,002

)

(62,062

)

Effect of exchange rates changes on cash

  (1,632

)

14,975

Net increase (decrease) in cash and cash equivalents

  2,543

(175,440

)

Cash and cash equivalents at beginning of period

  777,289

363,669

Cash and cash equivalents at end of period

  $

779,832

$

188,229

Non-GAAP Financial Measures

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other financial measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts, and make strategic decisions.

The key non-GAAP financial measures we consider are Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Research and Development Expenses, Adjusted Sales and Marketing Expenses, Adjusted General and Administrative Expenses, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Effective Tax Rate. These non-GAAP financial measures are used by both management and our Board, together with comparable GAAP information, in evaluating our current performance and planning our future business activities. These non-GAAP financial measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or which occur relatively infrequently and/or which management considers to be unrelated to our core operations, as well as the cost of sales from (i) inventory markups that are being eliminated as a result of the transition of certain product procurement functions from a subsidiary of JS Global to SharkNinja concurrently with the separation and (ii) costs related to the transitional Sourcing Services Agreement with JS Global that was entered into in connection with the separation (collectively, the “Product Procurement Adjustment”). Management believes that tracking and presenting these non-GAAP financial measures provides management and the investment community with valuable insight into our ongoing core operations, our ability to generate cash and the underlying business trends that are affecting our performance. We believe that these non-GAAP measures, when used in conjunction with our GAAP financial information, also allow investors to better evaluate our financial performance in comparison to other periods and to other companies in our industry and to better understand and interpret the results of the ongoing business following the separation and distribution. These non-GAAP financial measures should not be viewed as a substitute for our financial results calculated in accordance with GAAP and you are cautioned that other companies may define these non-GAAP financial measures differently.

SharkNinja does not provide a reconciliation of forward-looking Adjusted Net Income and Adjusted EBITDA to GAAP net income because such reconciliations are not available without unreasonable efforts. This is due to the inherent difficulty in forecasting with reasonable certainty certain amounts that are necessary for such reconciliations, including, in particular, the realized and unrealized foreign currency gains or losses reported within other expense. For the same reasons, we are unable to forecast with reasonable certainty all deductions and additions needed in order to provide forward-looking GAAP net income at this time. The amount of these deductions and additions may be material, and, therefore, could result in forward-looking GAAP net income being materially different or less than forward-looking Adjusted Net Income and Adjusted EBITDA. See “Forward-looking statements” above.

We define Adjusted Gross Profit as gross profit as adjusted to exclude (i) certain items that we do not consider indicative of our ongoing operating performance following the separation, including the cost of sales from the Product Procurement Adjustment and (ii) the impact of a voluntary product recall. We define Adjusted Gross Margin as Adjusted Gross Profit divided by net sales. We believe that Adjusted Gross Profit and Adjusted Gross Margin are appropriate measures of our operating performance because each eliminates certain other adjustments that do not relate to the ongoing performance of our business.

The following table reconciles Adjusted Gross Profit and Adjusted Gross Margin to the most comparable GAAP measure, gross profit and gross margin, respectively, for the periods presented:

  Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands, except %)

  2026

2025

2026

2025

Net sales

  $

1,765,476

$

1,444,876

$

3,178,282

$

2,667,514

Cost of sales

  (905,139

)

(736,709

)

(1,622,977

)

(1,356,121

)

Gross profit

  860,337

708,167

1,555,305

1,311,393

Gross margin

  48.7

%

49.0

%

48.9

%

49.2

%

Product Procurement Adjustment(1)

  —

5,279

—

11,820

Product recall(2)

  —

929

579

4,532

Adjusted Gross Profit

  $

860,337

$

714,375

$

1,555,884

$

1,327,745

Adjusted Gross Margin

  48.7

%

49.4

%

49.0

%

49.8

%

We define Adjusted Operating Expenses as operating expenses excluding (i) share-based compensation, (ii) certain litigation costs, (iii) amortization of certain acquired intangible assets, (iv) certain items that we do not consider indicative of our ongoing operating performance following the separation, including cost of sales from our Product Procurement Adjustment, and (v) the impact of a voluntary product recall.

The following table reconciles Adjusted Operating Expenses to the most comparable GAAP measure, operating expenses, for the periods presented:

  Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands)

  2026

2025

2026

2025

Operating expenses

  $

680,957

$

539,520

$

1,211,400

$

997,800

Share-based compensation(1)

  (47,214

)

(10,928

)

(77,523

)

(22,478

)

Litigation costs(2)

  —

—

—

(827

)

Amortization of acquired intangible assets(3)

  (4,897

)

(4,897

)

(9,794

)

(9,794

)

Product recall(4)

  —

(2,865

)

(543

)

(3,549

)

Adjusted Operating Expenses

  $

628,846

$

520,830

$

1,123,540

$

961,152

(1)

  Represents non-cash expense related to awards issued from the SharkNinja equity incentive plan.

(2)

  Represents litigation costs incurred and related settlements for certain patent infringement claims, false advertising claims, and any related settlement costs and recoveries, which were recorded in general and administrative expenses.

(3)

  Represents amortization of acquired intangible assets that we do not consider normal recurring operating expenses, as the intangible assets relate to JS Global’s acquisition of our business. We exclude amortization charges for these acquisition-related intangible assets for purposes of calculating Adjusted Operating Expenses, although revenue is generated, in part, by these intangible assets, to eliminate the impact of these non-cash charges that are significantly impacted by the timing and valuation of JS Global’s acquisition of our business, as well as the inherent subjective nature of purchase price allocations.

(4)

  Adjusted for operating expenses impact from a voluntary product recall that was recognized during the six months ended June 30, 2026 and the three and six months ended June 30, 2025.

We define Adjusted Research and Development Expenses as research and development expenses excluding (i) share-based compensation and (ii) amortization of certain acquired intangible assets.

The following table reconciles Adjusted Research and Development Expenses to the most comparable GAAP measure, research and development expenses, for the periods presented:

  Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands)

  2026

2025

2026

2025

Research and development

  $

109,334

$

89,409

$

208,217

$

177,012

Share-based compensation(1)

  (7,590

)

(1,867

)

(11,956

)

(4,776

)

Amortization of acquired intangible assets(2)

  (922

)

(922

)

(1,845

)

(1,845

)

Adjusted Research and Development Expenses

  $

100,822

$

86,620

$

194,416

$

170,391

We define Adjusted Sales and Marketing Expenses as sales and marketing expenses excluding (i) share-based compensation, (ii) amortization of certain acquired intangible assets and (iii) the impact of a voluntary product recall.

The following table reconciles Adjusted Sales and Marketing Expenses to the most comparable GAAP measure, sales and marketing expenses, for the periods presented:

  Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands)

  2026

2025

2026

2025

Sales and marketing

  $

441,510

$

357,720

$

756,848

$

633,457

Share-based compensation(1)

  (12,597

)

(4,634

)

(19,268

)

(7,172

)

Amortization of acquired intangible assets(2)

  (3,975

)

(3,975

)

(7,949

)

(7,949

)

Product recall(3)

  —

(1,678

)

(482

)

(1,678

)

Adjusted Sales and Marketing Expenses

  $

424,938

$

347,433

$

729,149

$

616,658

We define Adjusted General and Administrative Expenses as general and administrative expenses excluding (i) share-based compensation, (ii) certain litigation costs and (iii) the impact of a voluntary product recall.

The following table reconciles Adjusted General and Administrative Expenses to the most comparable GAAP measure, general and administrative expenses, for the periods presented:

  Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands)

  2026

2025

2026

2025

General and administrative

  $

130,113

$

92,391

$

246,335

$

187,331

Share-based compensation(1)

  (27,027

)

(4,427

)

(46,299

)

(10,530

)

Litigation costs(2)

  —

—

—

(827

)

Product recall(3)

  —

(1,187

)

(61

)

(1,871

)

Adjusted General and Administrative Expenses

  $

103,086

$

86,777

$

199,975

$

174,103

We define Adjusted Operating Income as operating income excluding (i) share-based compensation, (ii) certain litigation costs, (iii) amortization of certain acquired intangible assets, (iv) certain items that we do not consider indicative of our ongoing operating performance following the separation, including cost of sales from our Product Procurement Adjustment, and (v) the impact of a voluntary product recall.

The following table reconciles Adjusted Operating Income to the most comparable GAAP measure, operating income, for the periods presented:

  Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands)

  2026

2025

2026

2025

Operating income

  $

179,380

$

168,647

$

343,905

$

313,593

Share-based compensation(1)

  47,214

10,928

77,523

22,478

Litigation costs(2)

  —

—

—

827

Amortization of acquired intangible assets(3)

  4,897

4,897

9,794

9,794

Product Procurement Adjustment(4)

  —

5,279

—

11,820

Product recall(5)

  —

3,794

1,122

8,081

Adjusted Operating Income

  $

231,491

$

193,545

$

432,344

$

366,593

(1)

  Represents non-cash expense related to awards issued from the SharkNinja equity incentive plan.

(2)

  Represents litigation costs incurred and related settlements for certain patent infringement claims, false advertising claims, and any related settlement costs and recoveries, which were recorded in general and administrative expenses.

(3)

  Represents amortization of acquired intangible assets that we do not consider normal recurring operating expenses, as the intangible assets relate to JS Global’s acquisition of our business. We exclude amortization charges for these acquisition-related intangible assets for purposes of calculating Adjusted Operating Income, although revenue is generated, in part, by these intangible assets, to eliminate the impact of these non-cash charges that are significantly impacted by the timing and valuation of JS Global’s acquisition of our business, as well as the inherent subjective nature of purchase price allocations.

(4)

  Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, SNHK, and no longer purchase inventory from a purchasing office wholly owned by JS Global. Thus, the markup on all inventory purchased subsequent to the separation is completely eliminated in consolidation. In connection with the separation, we paid JS Global a sourcing service fee to provide value-added sourcing services on a transitional basis under a Sourcing Services Agreement, which ended on July 31, 2025.

(5)

  Adjusted for operating income impact from a voluntary product recall that was recognized during the six months ended June 30, 2026 and the three and six months ended June 30, 2025.

We define Adjusted Net Income as net income excluding (i) share-based compensation, (ii) certain litigation costs, (iii) foreign currency gains and losses, net, (iv) amortization of certain acquired intangible assets, (v) certain items that we do not consider indicative of our ongoing operating performance following the separation, including cost of sales from our Product Procurement Adjustment, (vi) the impact of a voluntary product recall, and (vii) the tax impact of the adjusted items.

Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the diluted weighted average number of ordinary shares.

The following table reconciles Adjusted Net Income and Adjusted Net Income Per Share to the most comparable GAAP measures, net income and net income per share, diluted, respectively, for the periods presented:

  Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands, except share and per share amounts)

  2026

2025

2026

2025

Net income

  $

129,816

$

139,598

$

251,278

$

257,433

Share-based compensation(1)

  47,214

10,928

77,523

22,478

Litigation costs(2)

  —

—

—

827

Foreign currency losses (gains), net(3)

  6,100

(26,362

)

17,389

(39,313

)

Amortization of acquired intangible assets(4)

  4,897

4,897

9,794

9,794

Product Procurement Adjustment(5)

  —

5,279

—

11,820

Product recall(6)

  —

3,794

1,122

8,081

Tax impact of adjusting items(7)

  (9,779

)

(291

)

(24,059

)

(9,501

)

Adjusted Net Income

  $

178,248

$

137,843

$

333,047

$

261,619

Net income per share, diluted

  $

0.92

$

0.98

$

1.77

$

1.81

Adjusted Net Income Per Share

  $

1.26

$

0.97

$

2.34

$

1.84

Diluted weighted-average number of shares used in computing net income per share and Adjusted Net Income Per Share

  141,507,017

141,871,399

142,056,803

142,031,280

(1)

  Represents non-cash expense related to awards issued from the SharkNinja equity incentive plan.

(2)

  Represents litigation costs incurred and related settlements for certain patent infringement claims, false advertising claims, and any related settlement costs and recoveries, which were recorded in general and administrative expenses.

(3)

  Represents foreign currency transaction gains and losses recognized from the remeasurement of transactions that were not denominated in the local functional currency, including gains and losses related to foreign currency derivatives not designated as hedging instruments.

(4)

  Represents amortization of acquired intangible assets that we do not consider normal recurring operating expenses, as the intangible assets relate to JS Global’s acquisition of our business. We exclude amortization charges for these acquisition-related intangible assets for purposes of calculating Adjusted Net Income, although revenue is generated, in part, by these intangible assets, to eliminate the impact of these non-cash charges that are significantly impacted by the timing and valuation of JS Global’s acquisition of our business, as well as the inherent subjective nature of purchase price allocations.

(5)

  Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, SNHK, and no longer purchase inventory from a purchasing office wholly owned by JS Global. Thus, the markup on all inventory purchased subsequent to the separation is completely eliminated in consolidation. In connection with the separation, we paid JS Global a sourcing service fee to provide value-added sourcing services on a transitional basis under a Sourcing Services Agreement, which ended on July 31, 2025.

(6)

  Adjusted for net income impact from a voluntary product recall that was recognized during the six months ended June 30, 2026 and the three and six months ended June 30, 2025.

(7)

  Represents the income tax effects of the adjustments included in the reconciliation of net income to Adjusted Net Income determined using the tax rate of 22.4% for the three and six months ended June 30, 2026 and 23.3% for the three and six months ended June 30, 2025, respectively, which approximates our effective tax rate, excluding certain share-based compensation costs and separation and distribution-related costs that are not tax deductible.

We define EBITDA as net income excluding: (i) interest expense, net, (ii) provision for income taxes and (iii) depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding (i) share-based compensation cost, (ii) certain litigation costs, (iii) foreign currency gains and losses, net, (iv) certain items that we do not consider indicative of our ongoing operating performance following the separation, including cost of sales from our Product Procurement Adjustment, and (v) the impact of a voluntary product recall. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales. We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are appropriate measures because they facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results according to GAAP, we believe provide a more complete understanding of the factors and trends affecting our business than GAAP measures alone.

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin to the most comparable GAAP measure, net income, for the periods presented:

  Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands, except %)

  2026

2025

2026

2025

Net income

  $

129,816

$

139,598

$

251,278

$

257,433

Interest expense, net

  7,890

13,765

14,497

26,394

Provision for income taxes

  33,877

41,287

59,997

68,985

Depreciation and amortization

  39,992

35,071

78,439

67,017

EBITDA

  211,575

229,721

404,211

419,829

Share-based compensation(1)

  47,214

10,928

77,523

22,478

Litigation costs(2)

  —

—

—

827

Foreign currency losses (gains), net(3)

  6,100

(26,362

)

17,389

(39,313

)

Product Procurement Adjustment(4)

  —

5,279

—

11,820

Product recall(5)

  —

3,794

1,122

8,081

Adjusted EBITDA

  $

264,889

$

223,360

$

500,245

$

423,722

Net sales

  $

1,765,476

$

1,444,876

$

3,178,282

$

2,667,514

Adjusted EBITDA Margin

  15.0

%

15.5

%

15.7

%

15.9

%

(1)

  Represents non-cash expense related to awards issued from the SharkNinja equity incentive plan.

(2)

  Represents litigation costs incurred and related settlements for certain patent infringement claims, false advertising claims, and any related settlement costs and recoveries, which were recorded in general and administrative expenses.

(3)

  Represents foreign currency transaction gains and losses recognized from the remeasurement of transactions that were not denominated in the local functional currency, including gains and losses related to foreign currency derivatives not designated as hedging instruments.

(4)

  Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, SNHK, and no longer purchase inventory from a purchasing office wholly owned by JS Global. Thus, the markup on all inventory purchased subsequent to the separation is completely eliminated in consolidation. In connection with the separation, we paid JS Global a sourcing service fee to provide value-added sourcing services on a transitional basis under a Sourcing Services Agreement, which ended on July 31, 2025.

(5)

  Adjusted for the Adjusted EBITDA impact from a voluntary product recall that was recognized during the six months ended June 30, 2026 and the three and six months ended June 30, 2025.

We define Adjusted Effective Tax Rate as our effective tax rate adjusted to remove the tax impact of (i) share-based compensation and (ii) other non-GAAP adjustments.

  Three Months Ended June 30,

Six Months Ended June 30,

(in percentages)

  2026

2025

2026

2025

Effective tax rate

  20.7

%

22.8

%

19.3

%

21.1

%

Impact of share-based compensation(1)

  (1.4

)

0.4

0.9

2.1

Tax impact of other non-GAAP adjustments(2)

  0.4

—

—

(0.1

)

Adjusted Effective Tax Rate

  19.7

%

23.2

%

20.2

%

23.1

%

We refer to growth rates in net sales on a constant currency basis so that results can be viewed without the impact of fluctuations in foreign currency exchange rates. These amounts are calculated by translating current year results at prior year average exchange rates. We believe elimination of the foreign currency translation impact provides useful information in understanding and evaluating trends in our operating results.

Organic Net Sales Returned to Growth; North America Performance Improved Meaningfully

Adjusted EPS and Adjusted EBITDA Exceeded Expectations

Full Year Outlook Narrowed; Mid-points for Adjusted EPS and Adjusted EBITDA Remain Unchanged

, /PRNewswire/ -- Edgewell Personal Care Company (NYSE: EPC) today announced results for its third fiscal quarter 2026 ended June 30, 2026. 

Executive Summary

Third quarter net sales were $570.1 million, an increase of 1.7% compared to the prior year quarter. Organic net sales increased 1.1%. (Organic basis excludes the impact from currency movements.) GAAP Diluted net Earnings Per Share ("EPS") were $0.26, compared to $0.46 in the prior year quarter. Adjusted EPS were $0.72 for the quarter, compared to $0.72 in the prior year quarter. Ended the third quarter with $397.1 million in cash on hand, access to an additional $418.8 million under the Company's U.S. revolving credit facility available. Returned $7.0 million to shareholders in the form of dividends in the third quarter. The Board of Directors declared a cash dividend of $0.15 per common share on August 5, 2026, for the third quarter. "Our third quarter results represent an important step forward in our fiscal 2026 progression, with organic net sales returning to growth, meaningful improvement in North America, and adjusted EPS and adjusted EBITDA ahead of expectations," said Rod Little, Edgewell's President and Chief Executive Officer. "At the beginning of the year, we anticipated that fiscal 2026 would be a back-half story, and based on our current outlook, we remain on track to deliver on that commitment. Our priority brands continue to gain traction, and we believe that the investments we have made are strengthening our capabilities and improving business performance. We are increasingly confident in the trajectory of the business and the foundation we are building for future growth and value creation."

Unless otherwise noted, reported results in this release are based on continuing operations and exclude the Feminine Care business which is treated as discontinued operations. The Company reports and forecasts results on a GAAP and non-GAAP basis and has reconciled non-GAAP results and outlook to the most directly comparable GAAP measures later in this release. See non-GAAP Financial Measures for a more detailed explanation, including definitions of various non-GAAP terms used in this release. All comparisons used in this release are for the same period in the prior fiscal year unless otherwise stated.

Fiscal 3Q 2026 Operating Results (Unaudited)

Net sales were $570.1 million in the quarter, an increase of $9.7 million, or 1.7%, including a $3.6 million, or 0.6% favorable impact from currency movements. Organic net sales increased $6.1 million, or 1.1%, reflecting a return to growth in North America, partially offset by lower sales in international markets. North America organic sales increased 3.0%, driven by volume growth across Sun, Skin Care and Grooming, reflecting improving execution, increased distribution and continued strength across several of the Company's priority brands. International organic sales declined 1.4%, primarily reflecting temporary disruption associated with the conflict in the Middle East and short-term supply chain impacts related to the Company's Wet Shave manufacturing consolidation, partially offset by growth in Grooming and several key international markets.

Gross profit was $242.5 million, as compared to $250.1 million in the prior year quarter. Gross margin as a percent of net sales was 42.5%,a decrease of 210-basis points. Adjusted gross margin as a percent of net sales decreased 30-basis points, to 44.5% in the quarter. Productivity savings of approximately 200-basis points and 40-basis points of favorable currency movements were more than offset by 160-basis points of core inflation and net tariffs and 110-basis points of unfavorable mix and promotional levels (net of pricing).

Advertising and sales promotion expense ("A&P") was $83.2 million, or 14.6% of net sales, an increase of $7.2 million, compared to $76.0 million, or 13.6% of net sales in the prior year quarter.     

Selling, general and administrative expense ("SG&A") was $108.3 million, or 19.0% of net sales, as compared to $100.7 million, or 18.0% of net sales in the prior year quarter. Adjusted SG&A was 18.4% of net sales, compared to 17.6% in the prior year quarter which was primarily driven by higher incentive compensation expense and unfavorable currency impacts in the current year, partly offset by lower people and consulting expenses.  

The Company recorded pre-tax restructuring and related costs in support of cost efficiency and effectiveness programs of $24.5 million in the quarter.

Operating income was $25.0 million, or 4.4% of net sales, inclusive of a $2.6 million, or 40-basis points impact from favorable currency movements, compared to income of $45.0 million, or 8.0% of net sales in the prior year quarter. Adjusted operating income was $53.0 million, or 9.3% of net sales, compared to $63.6 million, or 11.3% of net sales in the prior year quarter.

Interest expense associated with debt was $16.7 million, compared to $19.4 million in the prior year quarter. The decrease in interest expense was the result of lower borrowing levels on the Company's U.S. revolving credit facility due to the paydown of the facility with the proceeds of the Feminine Care divestiture.

Other (income) expense, net was income of $9.7 million compared to income of $2.9 million in the prior year quarter. The current year quarter included $7.7 million of Transition Services Agreement ("TSA") income. Additionally, the prior year quarter included $2.7 million of other project gains. Currency hedge and remeasurements gains were $0.6 million in the current quarter, compared to a gain of $1.1 million in the prior year quarter. Adjusted other (income) expense, net was income of $9.7 million compared to income of $0.2 million in the prior year quarter.

The effective tax rate for the first nine months of fiscal 2026 was (17.0)% compared to 31.7% in the prior year period. The current year period reflects a tax expense on a loss. The fiscal 2026 effective tax rate reflects more favorable discrete and unusual items compared to fiscal 2025. The adjusted effective tax rate for the first nine months of fiscal 2026 was 26.3%, compared to 28.8%. from the prior year period.

GAAP net earnings from continuing operations was income of $12.3 million or $0.26 per diluted share compared to income of $21.5 million or $0.46 per diluted share in the prior year quarter. Adjusted net earnings from continuing operations were $33.5 million or $0.72 per share, inclusive of a $0.04 favorable currency impact, compared to $33.6 million or $0.72 per share in the prior year quarter. Adjusted EBITDA was $78.9 million, inclusive of a $2.1 million favorable currency impact, compared to $81.2 million in the prior year quarter. 

Net cash provided by operating activities on a consolidated basis, inclusive of continuing and discontinued operations was $47.1 million for the nine months ended June 30, 2026, compared to $44.3 million in the prior year period. The increase in cash provided by operating activities was largely driven by changes in net working capital. The third quarter ended with $397.1 million in cash on hand, access to $418.8 million under the Company's U.S. revolving credit facility and an adjusted net debt leverage ratio of 3.7x. The adjusted net debt leverage ratio reflects the trailing 12 month continuing operations EBITDA as well as the cash impact from temporary working capital and other items related to the Feminine Care divestiture.

Capital Allocation

On August 5, 2026, the Board of Directors declared a quarterly cash dividend of $0.15 per common share for the third fiscal quarter of fiscal 2026. The dividend will be payable on October 8, 2026 to shareholders of record at the close of business on September 9, 2026.  During the third quarter of fiscal 2026, the Company paid dividends totaling $7.0 million to stockholders. As of June 30, 2026, the Company had approximately $85 million available for share repurchase in the future under the Board's 2025 authorization.

Fiscal 3Q 2026 Operating Segment Results (Unaudited)

Wet Shave (Men's Systems, Women's Systems, Disposables, and Shave Preps)

Net sales decreased $4.2 million, or 1.3%. Organic net sales decreased $6.1 million or 1.9%, as growth in the branded business was more than offset by lower Private Label sales, related to temporary supply constraints in North America and certain international markets. Segment profit decreased $9.2 million, or 20.9%. Organic segment profit, excluding the favorable impact from currency, decreased $10.9 million, or 24.7%, driven by higher SG&A and marketing expenses. 

Sun and Skin Care (Sun Care, Men's and Women's Grooming Products, and Wet Ones)

Net sales increased $13.9 million, or 5.7%. Organic net sales increased $12.2 million, or 5.0%, driven by mid-single digit growth in Sun Care in North America and strong global Grooming and Skin Care performance, partly offset by Sun Care declines in international markets. Segment profit increased $0.2 million, or 0.4%, including a favorable impact from foreign currency of $0.9 million, or 2.0%. Organic segment profit decreased $0.7 million, or 1.6%, driven by higher marketing and SG&A expenses, partially offset by higher gross profit.

Full Fiscal Year 2026 Financial Outlook

The Company is providing the following outlook assumptions for fiscal 2026. Unless otherwise stated, this outlook is presented on a continuing-operations basis and excludes the results of the Feminine Care business, which is reported as discontinued operations.

The Company's underlying expectations for fiscal 2026 remain intact, including stronger fourth quarter performance and adjusted EPS and adjusted EBITDA that are in line with prior expectations.

Reported net sales are now expected to increase in the range of approximately 1.3% to 1.8% (previously increase 0.8% to 3.8%) Includes an estimated 130-basis point positive impact from foreign currency changes (previously 180-basis point positive impact) Organic net sales are expected to be in the range of a flat to 0.5% (previously in the range of 1.0% decrease to a 2.0% increase) GAAP EPS is expected to be in the range of flat to $0.20 (previously flat to $0.40). Includes: Restructuring and related costs*, Sun Care reformulation, Legal matters, and Other costs Adjusted EPS is expected to be in the range of $1.80 to $2.00 (previously $1.70 to $2.10) Adjusted gross margin is expected to increase approximately 20-basis points (previously increase 50-basis points). Adjusted operating margin is expected to decrease approximately 80-basis points (previously decrease 60-basis points), reflecting 70-basis points from higher A&P investment and 30-basis points from increased SG&A expense Adjusted EBITDA is expected to be in the range of $250 to $260 million (previously $245 to $265 million) Other income/expense, net is expected to be approximately $26 million income, (previously $21 million income) Interest expense associated with debt is expected to be approximately $70 million Adjusted effective tax rate is expected to be approximately 22% to 23% Capital expenditures are expected to be in the range of approximately 3.0% to 3.5% of net sales Adjusted free cash flow is expected to be approximately $80 to $110 million Adjusted net debt leverage is expected to be approximately in the range of 3.3x to 3.4x at fiscal year end (previously in the range of 3.3x to 3.5x) As previously discussed, in fiscal 2026, the Company is taking specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency through restructuring and repositioning actions, including the further consolidation of Wet Shave operations. As a result of these actions, the Company expects to incur pre-tax charges of approximately $92 million (previously $90 million) for the full fiscal year.

Webcast Information

In conjunction with this announcement, the Company will hold an investor conference call beginning at 8:00 a.m. Eastern Time today, August 5, 2026. All interested parties may access a live webcast of this conference call at www.edgewell.com, under the "Investors," and "News and Events" tabs or by using the following link:  http://ir.edgewell.com/news-and-events/events

Refer to Supplemental Slides for fiscal year 2025 quarterly recast adjusted EBITDA reconciliation for continuing operations at www.edgewell.com, under the "Investors," and "News and Events" tabs or by using the following link http://ir.edgewell.com/news-and-events/events for historical financial information related to Company's divestiture of its Feminine Care business consistent with the continuing operations structure.

For those unable to participate during the live webcast, a re-play will be available on www.edgewell.com, under the "Investors," "Financial Reports," and "Quarterly Earnings" tabs. This release includes references to the Company's website and references to additional information and materials found on its website. The Company's website and such information and materials are not incorporated by reference in, and are not part of, this release.

About Edgewell

Edgewell is a leading pure-play consumer products company with an attractive, diversified portfolio of established brand names such as Schick®, Wilkinson Sword® and Billie® men's and women's shaving systems and disposable razors; Edge and Skintimate® shave preparations; Banana Boat®, Hawaiian Tropic®, Bulldog®,  Jack Black®, and CREMO® sun and skin care products; and Wet Ones® products. The Company has a broad global footprint and operates in more than 50 markets, including the U.S., Canada, Mexico, Germany, Japan, the U.K. and Australia, with approximately 6,200 employees worldwide.

Forward-Looking Statements. This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on these statements. These forward-looking statements include, but are not limited to, statements concerning our expectations regarding our future results of operations and financial condition; including business trajectory and performance improvement; future growth and value creation; our capital allocation plans; impacts from the divestiture of our Feminine Care segment; the effects of macroeconomic factors such as changes in tariffs and inflationary pressures; and conflicts or acts of war (such as the conflict in the Middle East). Additional forward-looking statements can generally be identified by the use of words or phrases such as "believe," "expect," "expectation," "anticipate," "may," "could," "intend," "belief," "estimate," "plan," "target," "predict," "likely," "will," "should," "forecast," "outlook," or other similar words or phrases. These statements are not based on historical facts, but instead reflect the Company's expectations, estimates or projections concerning future results or events, including, without limitation, the future earnings and performance of Edgewell or any of its businesses. Many factors outside our control could affect the realization of these estimates. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause the Company's actual results to differ materially from those indicated by those statements. The Company cannot assure you that any of its expectations, estimates or projections will be achieved. The forward-looking statements included in this document are only made as of the date of this document and the Company disclaims any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. You should not place undue reliance on these statements.

Factors that could cause fluctuations in our actual results include, but are not limited to, the following: our ability to compete in products and prices, as well as costs, in an intensely competitive industry; the loss of any of our principal customers or changes in the policies of our principal customers; our inability to design and execute a successful omnichannel strategy; our ability to attract, retain and develop key personnel; fluctuations in the price and supply of raw materials and costs of labor, warehousing and transportation; the impact of seasonal volatility on our sales, financial performance, working capital requirements and cash flow; the ability to successfully manage evolving global financial risks, including tariffs, foreign currency fluctuations, currency exchange or pricing controls and localized volatility; the ability to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, conflicts or acts of war (such as the conflict in the Middle East), terrorism or disease outbreaks; impacts from any loss of our principal customers or changes in the policies or strategies of our customers; our level of indebtedness and the various covenants related thereto, and to generate sufficient income and cash flow to allow the Company to effect expected share repurchases and dividend payments; our failure to maintain our brands' reputation and successfully respond to changing consumer habits; and perceptions of certain ingredients, negative perceptions of packaging, lack of recyclability or other environmental attributes; our access to capital markets and borrowing capacity; impairment of our goodwill and other intangible assets; the ability to successfully manage the financial, legal, reputational and operational risks associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business partners; risks associated with our international operations; our ability to effectively integrate acquired companies and successfully manage divestiture activities; our ability to successfully implement our cost savings initiatives, including rationalization or restructuring efforts; the ability to rely on and maintain key Company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; the ability to successfully achieve, maintain or adjust our environmental or sustainability goals and priorities; the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws and regulations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity and data protection, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; the ability to adequately protect our intellectual property rights; product quality and safety issues, including recalls and product liability;  losses or increased funding and expenses related to our pension plans; and the other important factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 ("2025 Annual Report") under Part I. Item 1A. "Risk Factors," and in our other filings with the Securities and Exchange Commission ("SEC"). In addition, other risks and uncertainties not presently known to the Company or that it presently considers immaterial could significantly affect the accuracy of any such forward-looking statements. Risks and uncertainties include those detailed from time to time in the Company's publicly filed documents, including in Item 1A. Risk Factors of Part I of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on November 18, 2025.

Non-GAAP Financial Measures. While the Company reports financial results in accordance with generally accepted accounting principles ("GAAP") in the U.S., this discussion also includes non-GAAP measures. These non-GAAP measures are referred to as "adjusted" or "organic" and exclude items which are considered by the Company as unusual or non-recurring and which

may have a disproportionate positive or negative impact on the Company's financial results in any particular period. Reconciliations of non-GAAP measures, including reconciliations of measures related to the Company's fiscal 2026 financial outlook, are included within the Notes to Condensed Consolidated Financial Statements included with this release.

This non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The Company uses this non-GAAP information internally to make operating decisions and believes it is helpful to investors because it allows more meaningful period-to-period comparisons of ongoing operating results. The information can also be used to perform analysis and to better identify operating trends that may otherwise be masked or distorted by the types of items that are excluded. This non-GAAP information is a component in determining management's incentive compensation. Finally, the Company believes this information provides a higher degree of transparency. The following provides additional detail on the Company's non-GAAP measures:

The Company utilizes "adjusted" non-GAAP measures including gross margin, SG&A, operating income, operating margin, effective tax rate, net earnings, earnings per share, EBITDA, and other (income) expense to internally make operating decisions. Constant currency measures are calculated by removing the impact of translational and transactional foreign currencies changes, net of foreign currency hedges compared to the prior year. Transactional foreign currency changes are driven by foreign legal entities' transactions not denominated in local currency. The Company analyzes its net sales and segment profit on an organic basis to better measure the comparability of results between periods. Organic net sales and organic segment profit exclude the impact of changes in foreign currency. Segment profit is impacted by fluctuations in translation and transactional foreign currency. The impact of currency was applied to segments using management's best estimate. The Company presents certain metrics on a consolidated and continuing operations basis to help with comparability. Free cash flow is defined as net cash from operating activities, less capital expenditures plus collections of deferred purchase price of accounts receivable sold and proceeds from sales of fixed assets. Adjusted free cash flow is defined as free cash flow, adjusted for the following: the one-time operating cash flow impacts associated directly with Feminine Care divestiture including tax, working capital, and deal related fees and expenses. Net debt is defined as Gross debt less cash and cash equivalents. Net debt leverage ratio is defined as net debt divided by trailing twelve month adjusted EBITDA. Adjusted net debt leverage ratio is defined as net debt divided by continuing operations trailing twelve month adjusted EBITDA, which includes Transition Services Agreement income realized in fiscal Q2 and Q3 (five months), plus $15 million of pro forma Transition Services Agreement income (seven months). Refer to Supplemental Slides for fiscal year 2025 quarterly recast adjusted EBITDA reconciliation for continuing operations filed on February 9, 2026. Basis of Presentation. In accordance with applicable accounting guidance, the results of the Feminine Care segment are presented as discontinued operations in the Condensed Consolidated Statements of Earnings and Comprehensive Income and, as such, have been excluded from both continuing operations and segment results for all periods presented. Further, the Company reclassified the assets and liabilities of the Feminine Care disposal group as assets and liabilities held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2025. The Condensed Consolidated Statements of Cash Flows are presented on a consolidated basis with both continuing operations and discontinued operations. All amounts, percentages and disclosures for all periods presented reflect only the continuing operations of Edgewell unless otherwise noted.

Please refer to the Form 10-Q filed with the SEC on August 5, 2026.

EDGEWELL PERSONAL CARE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited, in millions, except per share data)

Three Months Ended

June 30,

Nine Months Ended

June 30,

2026

2025

2026

2025

Net sales

$         570.1

$         560.4

$       1,512.4

$       1,492.1

Cost of products sold

327.6

310.3

892.0

832.7

Gross profit

242.5

250.1

620.4

659.4

Selling, general and administrative expense

108.3

100.7

321.7

303.1

Advertising and sales promotion expense

83.2

76.0

187.4

182.0

Research and development expense

13.3

13.5

42.0

40.2

Restructuring charges

12.7

14.9

44.8

30.9

Operating income

25.0

45.0

24.5

103.2

Interest expense associated with debt

16.7

19.4

53.9

58.4

Other income, net

(9.7)

(2.9)

(18.4)

(2.3)

Earnings (loss) from continuing operations before income taxes

18.0

28.5

(11.0)

47.1

Income tax provision on continuing operations

5.7

7.0

1.9

15.0

Net earnings (loss) from continuing operations

12.3

21.5

(12.9)

32.1

Earnings (loss) from discontinued operations, net of tax

1.4

7.6

(49.7)

23.9

Net earnings (loss)

$           13.7

$           29.1

$          (62.6)

$           56.0

Basic earnings (loss) per share

Continuing operations

$           0.27

$           0.46

$          (0.28)

$           0.67

Discontinued operations

0.03

0.16

(1.07)

0.50

Basic earnings (loss) per share

$           0.30

$           0.62

$          (1.35)

$           1.17

Diluted earnings (loss) per share

Continuing operations

$           0.26

$           0.46

$          (0.28)

$           0.67

Discontinued operations

0.03

0.16

(1.07)

0.50

Diluted earnings (loss) per share

$           0.29

$           0.62

$          (1.35)

$           1.17

Weighted-average shares outstanding:

Basic

46.1

46.8

46.4

47.8

Diluted

46.6

47.0

46.4

48.0

See Accompanying Notes.

EDGEWELL PERSONAL CARE COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)  

June 30, 2026

September 30,
2025

Assets

Current assets

Cash and cash equivalents

$         397.1

$         225.7

Trade receivables, less allowance for doubtful accounts

119.4

137.8

Inventories

433.0

433.8

Other current assets

162.5

138.6

Current assets held for sale

—

59.6

Total current assets

1,112.0

995.5

Property, plant and equipment, net

292.7

295.0

Goodwill

1,134.0

1,137.1

Other intangible assets, net

806.4

828.2

Other assets

190.3

178.7

Non-current assets held for sale

—

321.8

Total assets

$       3,535.4

$       3,756.3

Liabilities and Shareholders' Equity

Current liabilities

Notes payable

$           34.2

$           29.5

Accounts payable

230.7

219.7

Other current liabilities

338.7

311.1

Current liabilities held for sale

—

5.2

Total current liabilities

603.6

565.5

Long-term debt

1,245.0

1,383.3

Deferred income tax liabilities

79.6

118.8

Other liabilities

147.3

135.6

Total liabilities

2,075.5

2,203.2

Shareholders' equity

Common shares

0.7

0.7

Additional paid-in capital

1,569.7

1,578.8

Retained earnings

1,002.1

1,086.7

Common shares in treasury at cost

(997.5)

(1,003.3)

Accumulated other comprehensive loss

(115.1)

(109.8)

Total shareholders' equity

1,459.9

1,553.1

Total liabilities and shareholders' equity

$       3,535.4

$       3,756.3

See Accompanying Notes.

EDGEWELL PERSONAL CARE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)  

Nine Months Ended

June 30,

2026

2025

Cash Flow from Operating Activities

Net (loss) earnings

$            (62.6)

$              56.0

Depreciation and amortization

59.0

65.6

Share-based compensation expense

14.7

18.8

Loss on sale of assets

1.4

1.7

Impairment charges

37.4

—

Loss on assets held for sale

2.2

—

Deferred compensation payments

(2.3)

(2.4)

Deferred income taxes

(39.8)

(0.5)

Other, net

8.3

(12.2)

Changes in operating assets and liabilities

28.8

(82.7)

Net cash provided by operating activities

47.1

44.3

Cash Flow from Investing Activities

Proceeds from sale of business

338.9

—

Capital expenditures

(41.2)

(49.4)

Collection of deferred purchase price on accounts receivable sold

3.3

5.6

Other, net

—

(1.5)

Net cash provided by (used in) investing activities

301.0

(45.3)

Cash Flow from Financing Activities

Cash proceeds from debt with original maturities greater than 90 days

398.0

774.0

Cash payments on debt with original maturities greater than 90 days

(538.0)

(678.0)

Net proceeds from (payment of) debt with original maturities of 90 days or less

3.1

(0.8)

Repurchase of shares

(15.8)

(90.2)

Dividends to common shareholders

(21.5)

(22.4)

Employee shares withheld for taxes

(2.9)

(7.4)

Net financing inflow from the Accounts Receivable Facility

2.7

14.2

Other, net

(0.3)

(0.3)

Net cash used in financing activities

(174.7)

(10.9)

Effect of exchange rate changes on cash

(2.0)

2.4

Net increase (decrease) in cash and cash equivalents

171.4

(9.5)

Cash and cash equivalents, beginning of period

225.7

209.1

Cash and cash equivalents, end of period

$            397.1

$            199.6

See Accompanying Notes.

EDGEWELL PERSONAL CARE COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions, except per share data)

Note 1 —  Segments

The Company conducts its business in the following two segments: Wet Shave and Sun and Skin Care (collectively, the "Segments," and each individually, a "Segment"). Segment performance is evaluated based on segment profit, exclusive of general corporate expenses, share-based compensation costs, items which are considered by the Company to be unusual or non-recurring and which may have a disproportionate positive or negative impact on the Company's financial results in any particular period and the amortization of intangible assets. Financial items, such as interest income and expense, are managed on a global basis at the corporate level. The exclusion of such charges from segment results reflects management's view on how it evaluates segment performance.

Segment net sales and profitability are presented below:

Three Months Ended
June 30,

Nine Months Ended
June 30,

2026

2025

2026

2025

Net sales

Wet Shave

$        312.8

$        317.0

$       898.2

$         897.0

Sun and Skin Care

257.3

243.4

614.2

595.1

Total net sales

$        570.1

$        560.4

$    1,512.4

$      1,492.1

Segment Profit

Wet Shave

$          34.9

$          44.1

$       106.0

$         137.3

Sun and Skin Care

46.2

46.0

89.5

93.4

Total segment profit

81.1

90.1

195.5

230.7

General corporate and other expenses

(21.9)

(19.9)

(66.0)

(65.9)

Amortization of intangibles

(6.2)

(6.4)

(19.0)

(19.2)

Interest and other expense, net

(7.0)

(19.3)

(37.7)

(58.6)

Restructuring and related costs

(24.5)

(16.8)

(71.9)

(32.7)

Acquisition and integration costs

—

—

—

(0.5)

Sun Care reformulation costs

(0.7)

(0.5)

(3.4)

(2.2)

Legal matters

—

—

(5.7)

—

Gain on investment

—

—

1.5

0.9

Commercial realignment

0.2

0.1

0.2

(3.0)

Other project and related costs

(3.0)

1.2

(4.5)

(2.4)

Total earnings (loss) before income taxes

$         18.0

$         28.5

$      (11.0)

$         47.1

Refer to Note 2 - GAAP to Non-GAAP Reconciliations below for the income statement location of non-GAAP adjustments to earnings before income taxes.

Note 2 — GAAP to Non-GAAP Reconciliations

The following tables provide a GAAP to Non-GAAP reconciliation of certain line items from the Condensed Consolidated Statement of Earnings:

Three Months Ended June 30, 2026

Gross Profit

SG&A

Operating 
Income

EBIT (Loss)
from
Continuing
Operations (1)

Income Tax
Provision
(Benefit)
from
Continuing
Operations

Net (Loss)
Income from
Continuing
Operations

Diluted EPS
from
Continuing
Operations

GAAP — Reported

$    242.5

$    108.3

$      25.0

$       18.0

$        5.7

$       12.3

$      0.26

Restructuring and related costs

11.2

(0.6)

24.5

24.5

6.0

18.5

0.40

Sun Care reformulation costs

—

—

0.7

0.7

0.1

0.6

0.01

Commercial realignment

(0.2)

—

(0.2)

(0.2)

(0.1)

(0.1)

—

Other project and related costs

0.1

(2.9)

3.0

3.0

0.8

2.2

0.05

Total Adjusted Non-GAAP

$    253.6

$    104.8

$      53.0

$       46.0

$       12.5

$       33.5

$      0.72

Adjusted Non-GAAP Constant Currency

0.68

GAAP as a percent of net sales

42.5 %

19.0 %

4.4 %

GAAP effective tax rate

31.5 %

Adjusted as a percent of net sales

44.5 %

18.4 %

9.3 %

Adjusted effective tax rate

27.2 %

Adjusted Constant Currency as a percent of net
sales

44.1 %

8.9 %

(1) EBIT is defined as Earnings before Income taxes.

Three Months Ended June 30, 2025

Gross Profit

SG&A

Operating
Income

EBIT (Loss)
from
Continuing
Operations (1)

Income Tax
Provision
(Benefit)
from
Continuing
Operations

Net (Loss)
Income from
Continuing
Operations

Diluted EPS
from
Continuing
Operations

GAAP — Reported

$    250.1

$    100.7

$     45.0

$       28.5

$        7.0

$       21.5

$     0.46

Restructuring and related costs

1.2

(0.6)

16.7

16.7

4.1

12.6

0.27

Sun Care reformulation costs

—

—

0.5

0.5

0.1

0.4

0.01

Commercial realignment

(0.1)

—

(0.1)

(0.1)

—

(0.1)

—

Other project and related costs

—

(1.5)

1.5

(1.2)

(0.4)

(0.8)

(0.02)

Total Adjusted Non-GAAP

$    251.2

$     98.6

$     63.6

$       44.4

$       10.8

$       33.6

$     0.72

GAAP as a percent of net sales

44.6 %

18.0 %

8.0 %

GAAP effective tax rate

24.5 %

Adjusted as a percent of net sales

44.8 %

17.6 %

11.3 %

Adjusted effective tax rate

24.3 %

(1) EBIT is defined as Earnings before Income taxes.

Nine Months Ended June 30, 2026

Gross Profit

SG&A

Operating 
Income

EBIT (Loss)
from
Continuing
Operations (1)

Income Tax
Provision
(Benefit)
from
Continuing
Operations

Net (Loss)
Income from
Continuing
Operations

Diluted EPS
from
Continuing
Operations

GAAP — Reported

$    620.4

$    321.7

$      24.5

$      (11.0)

$        1.9

$      (12.9)

$     (0.28)

Restructuring and related costs

25.7

(1.4)

71.9

71.9

17.7

54.2

1.17

Sun Care reformulation costs

—

—

3.4

3.4

0.8

2.6

0.06

Legal matters

—

(5.7)

5.7

5.7

1.4

4.3

0.09

Gain on investment

—

—

—

(1.5)

(0.3)

(1.2)

(0.03)

Commercial realignment

(0.2)

—

(0.2)

(0.2)

(0.1)

(0.1)

—

Other project and related costs

0.1

(5.1)

5.2

4.5

1.1

3.4

0.07

Tax shortfall on equity compensation

—

—

—

—

(3.4)

3.4

0.07

Total Adjusted Non-GAAP

$    646.0

$    309.5

$    110.5

$       72.8

$       19.1

$       53.7

$      1.15

Adjusted Non-GAAP Constant Currency

1.07

GAAP as a percent of net sales

41.0 %

21.3 %

1.6 %

GAAP effective tax rate

(17.0) %

Adjusted as a percent of net sales

42.7 %

20.5 %

7.3 %

Adjusted effective tax rate

26.3 %

Adjusted Constant Currency as a percent of net
sales

42.5 %

6.9 %

(1) EBIT is defined as Earnings (Loss) before Income taxes.

Nine Months Ended June 30, 2025

Gross Profit

SG&A

Operating 
Income

EBIT (Loss)
from
Continuing
Operations (1)

Income Tax
Provision
(Benefit)
from
Continuing
Operations

Net (Loss)
Income
from
Continuing
Operations

Diluted EPS
from
Continuing
Operations

GAAP — Reported

$    659.4

$    303.1

$    103.2

$       47.1

$       15.0

$       32.1

$     0.67

Restructuring and related costs

1.2

(0.6)

32.7

32.7

8.0

24.7

0.50

Acquisition and integration costs

—

(0.5)

0.5

0.5

0.1

0.4

0.01

Sun Care reformulation costs

—

—

2.2

2.2

0.5

1.7

0.04

Gain on investment

—

—

—

(0.9)

—

(0.9)

(0.02)

Commercial realignment

3.0

—

3.0

3.0

0.9

2.1

0.04

Other project and related costs

—

(3.9)

3.9

2.4

0.6

1.8

0.04

Total Adjusted Non-GAAP

$    663.6

$    298.1

$    145.5

$       87.0

$       25.1

$       61.9

$     1.28

GAAP as a percent of net sales

44.2 %

20.3 %

6.9 %

GAAP effective tax rate

31.7 %

Adjusted as a percent of net sales

44.5 %

20.0 %

9.8 %

Adjusted effective tax rate

28.8 %

(1) EBIT is defined as Earnings before Income taxes.

Note 3 - Net Sales and Profit (Loss) by Segment

Operations for the Company are reported via two segments. The following tables present changes in net sales and segment profit for the three and nine months ended June 30, 2026, as compared to the corresponding period in the prior year quarter.

Net Sales

Quarter Ended June 30, 2026

Wet Shave

Sun and Skin Care

Total

Net sales -  Q3 2025

$      317.0

$      243.4

$      560.4

Organic

(6.1)

(1.9) %

12.2

5.0 %

6.1

1.1 %

Impact of currency

1.9

0.6 %

1.7

0.7 %

3.6

0.6 %

Net sales -  Q3 2026

$      312.8

(1.3) %

$      257.3

5.7 %

$      570.1

1.7 %

Segment Profit

Quarter Ended June 30, 2026

Wet Shave

Sun and Skin Care

Total

Segment profit -  Q3 2025

$        44.1

$        46.0

$        90.1

Organic

(10.9)

(24.7) %

(0.7)

(1.6) %

(11.6)

(12.9) %

Impact of currency

1.7

3.8 %

0.9

2.0 %

2.6

2.9 %

Segment profit -  Q3 2026

$        34.9

(20.9) %

$        46.2

0.4 %

$        81.1

(10.0) %

Net Sales

Nine Months Ended June 30, 2026

Wet Shave

Sun and Skin Care

Total

Net sales -  Q3 2025

$      897.0

$      595.1

$    1,492.1

Organic

(19.8)

(2.2) %

11.4

1.9 %

(8.4)

(0.6) %

Impact of currency

21.0

2.3 %

7.7

1.3 %

28.7

2.0 %

Net sales -  Q3 2026

$      898.2

0.1 %

$      614.2

3.2 %

$    1,512.4

1.4 %

Segment Profit

Nine Months Ended June 30, 2026

Wet Shave

Sun and Skin Care

Total

Segment profit -  Q3 2025

$      137.3

$        93.4

$      230.7

Organic

(36.4)

(26.5) %

(6.3)

(6.8) %

(42.7)

(18.5) %

Impact of currency

5.1

3.7 %

2.4

2.6 %

7.5

3.2 %

Segment profit -  Q3 2026

$      106.0

(22.8) %

$        89.5

(4.2) %

$      195.5

(15.3) %

For all tables, the impact of currency to segment profit includes both the translational and transactional currency changes during the quarter.

Note 4 - Net Debt and EBITDA

The Company reports financial results on a GAAP and adjusted basis. The tables below are used to reconcile Net Debt and Net earnings to EBITDA and Adjusted EBITDA, which are non-GAAP measures, to improve comparability of results between periods.

June 30,
2026

September 30,
2025

Notes payable

$          34.2

$           29.5

Long-term debt

1,245.0

1,383.3

Gross debt

1,279.2

1,412.8

Less: Cash and cash equivalents

397.1

225.7

Net debt

$         882.1

$       1,187.1

Three Months Ended

June 30,

Nine Months Ended

June 30,

2026

2025

2026

2025

Net Earnings

$           12.3

$           21.5

$          (12.9)

$           32.1

Income tax provision

5.7

7.0

1.9

15.0

Interest expense, net

14.8

19.0

50.7

56.9

Depreciation and amortization

18.6

18.3

57.7

54.0

EBITDA

51.4

65.7

97.4

158.0

Restructuring and related costs (1)

24.0

16.3

68.4

31.5

Acquisition and integration costs

—

—

—

0.5

Sun Care reformulation costs

0.7

0.5

3.4

2.2

Legal matters

—

—

5.7

—

(Gain) loss on investment

—

—

(1.5)

(0.9)

Commercial realignment

(0.2)

(0.1)

(0.2)

3.0

Other project and related costs

3.0

(1.2)

4.5

2.4

Adjusted EBITDA

$           78.9

$           81.2

$          177.7

$          196.7

(1)

Excludes $0.5 million and $3.5 million of accelerated depreciation, which is included within Depreciation and amortization during the three and nine months ended June 30, 2026, respectively and $0.6 million and $1.2 million during the three and nine months ended June 30, 2025, respectively.

Note 5 - Outlook for Continuing Operations

The following tables provide reconciliations of Adjusted EPS and Adjusted EBITDA, Non-GAAP measures, included within the Company's projected fiscal 2026 outlook for continuing operations. The below outlook reflects management's approximate expectations and are subject to rounding adjustments. As a result, the sum of individual amounts may not precisely equal the totals presented.

Adjusted EPS Outlook

Fiscal 2026 GAAP EPS

approx.

$0.00 - $0.20

Restructuring and related costs

approx.

1.96

Sun Care reformulation costs

approx.

0.11

Legal Matter

approx.

0.12

Gain on Investment

approx.

(0.03)

Other costs

approx.

0.13

Income taxes(1)

approx.

(0.49)

Fiscal 2026 Adjusted EPS Outlook (Non-GAAP)

approx.

$1.80 - $2.00

(1)

Income tax effect of the adjustments to Fiscal 2026 GAAP EPS noted above.

Adjusted EBITDA Outlook

Fiscal 2026 GAAP Net Income

approx.

$0 - $10

Income tax provision

approx.

4

Interest expense, net of $5 interest income

approx.

65

Depreciation and amortization

approx.

77

EBITDA

approx.

$146 - $156

Restructuring and related costs (2)

approx.

88

Sun Care reformulation costs

approx.

5

Legal Matter

approx.

6

Gain on Investment

approx.

(1)

Other costs

approx.

6

Fiscal 2026 Adjusted EBITDA

approx.

$250 - $260

(2)

Excludes accelerated depreciation, which is included within Depreciation and amortization.

SOURCE Edgewell Personal Care Company