METHODE ELECTRONICS INC

Previous wording

Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing infrastructure, construction equipment, and consumer appliance.

Current wording

Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing infrastructure, construction equipment, and consumer appliances.

Previous wording

Our business in the future will be affected by the broad trend of electrification. The adoption of EVs has been slower than anticipated, which may affect our financial condition and results of operations. In addition, there are various government policies, subsidies, and economic incentives designed to increase EV adoption. There is no guarantee these incentive programs will be available in the future.

Current wording

Our business in the future will be affected by the broad trend of electrification. The adoption of EVs has been slower than anticipated, which may affect our financial condition, results of operations, and cash flows. Certain of our customers have recently announced shifts to their EV strategies and we are pursuing these customers for price adjustments and other commercial recoveries. If we are not successful in obtaining these recoveries, we may experience production inefficiencies, including underutilized capacity and workforce disruptions, which could affect our profitability and estimates of future cash flows.

Previous wording

We maintain our financial records on the basis of a 52 or 53-week fiscal year ending on the Saturday closest to April 30. Fiscal 2026 is a 52-week year and fiscal 2025 was a 53-week year. The three months ended November 1, 2025 and November 2, 2024 were 13 and 14-week periods, respectively, while the six months ended November 1, 2025 and November 2, 2024, were 26 and 27-week periods, respectively. The following discussions of comparative results among periods should be reviewed in this context.

Current wording

We maintain our financial records on the basis of a 52 or 53-week fiscal year ending on the Saturday closest to April 30. Fiscal 2026 is a 52-week year and fiscal 2025 was a 53-week year. The three months ended January 31, 2026 and February 1, 2025 were each 13-week periods, while the nine months ended January 31, 2026 and February 1, 2025, were 39 and 40-week periods, respectively. The following discussions of comparative results among periods should be reviewed in this context.

Previous wording

The table below compares our results of operations between the three and six months ended November 1, 2025 and the three and six months ended November 2, 2024:

Current wording

The table below compares our results of operations between the three and nine months ended January 31, 2026 and the three and nine months ended February 1, 2025:

Previous wording

Net sales decreased $63.7 million, or 11.6%, to $487.4 million in the six months ended November 1, 2025, compared to $551.1 million in the six months ended November 2, 2024. Foreign currency translation increased net sales by $13.3 million. Excluding foreign currency translation, net sales decreased $77.0 million. The decrease was primarily due to lower sales volumes in the Automotive segment.

Current wording

Net sales decreased $6.2 million, or 2.6%, to $233.7 million in the three months ended January 31, 2026, compared to $239.9 million in the three months ended February 1, 2025. Foreign currency translation increased net sales by $11.7 million. Excluding foreign currency translation, net sales decreased $17.9 million. The decrease was primarily due to lower sales volumes in the Automotive segment and Interface segment, partially offset by higher sales volumes in the Industrial segment.

Previous wording

Cost of products sold decreased $35.5 million, or 15.1%, to $199.2 million (80.7% of net sales) in the three months ended November 1, 2025, compared to $234.7 million (80.2% of net sales) in the three months ended November 2, 2024. Foreign currency translation increased cost of products sold by $4.7 million. Excluding foreign currency translation, cost of products sold decreased $40.2 million. The decrease was primarily due to lower material and freight costs as a result of lower sales volumes, lower compensation expense, and a decrease in non-cash inventory reserve adjustments.

Current wording

Cost of products sold decreased $3.7 million, or 1.9%, to $194.9 million (83.4% of net sales) in the three months ended January 31, 2026, compared to $198.6 million (82.8% of net sales) in the three months ended February 1, 2025. Foreign currency translation increased cost of products sold by $8.8 million. Excluding foreign currency translation, cost of products sold decreased $12.5 million. The decrease was primarily due to lower material costs as a result of lower sales volumes.

Previous wording

Cost of products sold decreased $52.4 million, or 11.7%, to $396.2 million (81.3% of net sales) in the six months ended November 1, 2025, compared to $448.6 million (81.4% of net sales) in the six months ended November 2, 2024. Foreign currency translation increased cost of products sold by $10.4 million. Excluding foreign currency translation, cost of products sold decreased $62.8 million. The decrease was primarily due to lower material and freight costs as a result of a decrease in sales volumes, lower compensation expense, and a decrease in non-cash inventory reserve adjustments. Restructuring and asset impairment charges included within cost of products sold were $0.1 million in the six months ended November 1, 2025, compared to $0.4 million in the six months ended November 2, 2024.

Current wording

Cost of products sold decreased $56.1 million, or 8.7%, to $591.1 million (82.0% of net sales) in the nine months ended January 31, 2026, compared to $647.2 million (81.8% of net sales) in the nine months ended February 1, 2025. Foreign currency translation increased cost of products sold by $19.2 million. Excluding foreign currency translation, cost of products sold decreased $75.3 million. The decrease was primarily due to lower material costs as a result of lower sales volumes. Restructuring and asset impairment charges included within cost of products sold were $0.1 in the nine months ended January 31, 2026, compared to $0.4 million in the nine months ended February 1, 2025.

Previous wording

Gross profit margin was 19.3% of net sales in the three months ended November 1, 2025, compared to 19.8% of net sales in the three months ended November 2, 2024. The decrease in gross profit margin was primarily a result of lower sales volume and product mix in the Automotive segment.

Current wording

Gross profit margin was 16.6% of net sales in the three months ended January 31, 2026, compared to 17.2% of net sales in the three months ended February 1, 2025. The decrease in gross profit margin was primarily a result of lower sales volume and product mix in the Automotive segment and Interface segment.

Previous wording

Gross profit margin was 18.7% of net sales in the six months ended November 1, 2025, remaining relatively consistent compared to 18.6% of net sales in the six months ended November 2, 2024.

Current wording

Gross profit margin was 18.0% of net sales in the nine months ended January 31, 2026, remaining relatively consistent compared to 18.2% of net sales in the nine months ended February 1, 2025.

Previous wording

Selling and administrative expenses decreased $13.2 million, or 14.9%, to $75.6 million (15.5% of net sales) in the six months ended November 1, 2025, compared to $88.8 million (16.1% of net sales) in the six months ended November 2, 2024. Excluding foreign currency translation, selling and administrative expenses decreased $14.3 million. The decrease was primarily due to lower professional fees, a decrease in bad debt expense, and lower compensation expense. Restructuring and asset impairment charges included within selling and administrative expenses were $1.9 million in the six months ended November 1, 2025, compared to $0.3 million in the six months ended November 2, 2024.

Current wording

Selling and administrative expenses decreased $11.8 million, or 9.3%, to $114.7 million (15.9% of net sales) in the nine months ended January 31, 2026, compared to $126.5 million (16.0% of net sales) in the nine months ended February 1, 2025. Excluding foreign currency translation, selling and administrative expenses decreased $13.9 million. The decrease was primarily due to lower professional fees. Restructuring and asset impairment charges included within selling and administrative expenses were $2.3 million in the nine months ended January 31, 2026, compared to $0.3 million in the nine months ended February 1, 2025, primarily related to employee termination benefits.

Previous wording

Amortization of intangibles was $5.8 million in the three months ended November 1, 2025, compared to $5.9 million in the three months ended November 2, 2024. Amortization of intangibles was $11.6 million in the six months ended November 1, 2025, compared to $11.8 million in the six months ended November 2, 2024.

Current wording

Amortization of intangibles was $5.8 million in the three months ended January 31, 2026, compared to $5.8 million in the three months ended February 1, 2025. Amortization of intangibles was $17.4 million in the nine months ended January 31, 2026, compared to $17.6 million in the nine months ended February 1, 2025.

Previous wording

Interest expense, net was $11.6 million in the six months ended November 1, 2025, compared to $11.0 million in the six months ended November 2, 2024. The increase was due to a higher level of borrowings, partially offset by lower interest rates.

Current wording

Interest expense, net was $5.4 million in the three months ended January 31, 2026, compared to $5.5 million in the three months ended February 1, 2025. The decrease was due to a lower level of borrowings and lower interest rates, partially offset by the unfavorable effects of foreign exchange rates on the euro denominated interest.

Previous wording

Other expense, net was $1.4 million in the three months ended November 1, 2025, compared to $1.6 million in the three months ended November 2, 2024. Net foreign exchange loss was $1.5 million in the three months ended November 1, 2025, compared to $1.7 million in the three months ended November 2, 2024.

Current wording

Other expense, net was $1.6 million in the three months ended January 31, 2026, compared to $0.5 million in the three months ended February 1, 2025. Net foreign exchange loss was $2.6 million in the three months ended January 31, 2026, compared to $1.3 million in the three months ended February 1, 2025.

Previous wording

Other expense, net was $2.7 million in the six months ended November 1, 2025, compared to $2.4 million in the six months ended November 2, 2024. Net foreign exchange loss was $3.0 million in the six months ended November 1, 2025, compared to $2.3 million in the six months ended November 2, 2024. Other expense, net in the six months ended November 1, 2025 includes a non-cash write-off of $0.6 million of unamortized debt issuance costs, compared to $1.2 million in the six months ended November 2, 2024. Other expense, net also includes $0.5 million of a net gain on sale of assets in the six months ended November 1, 2025, compared to $0.3 million in the six months ended November 2, 2024. In addition, we received $0.1 million of international government assistance in the six months ended November 1, 2025, compared to $1.0 million in the six months ended November 2, 2024.

Current wording

Other expense, net was $4.3 million in the nine months ended January 31, 2026, compared to $2.9 million in the nine months ended February 1, 2025. Net foreign exchange loss was $5.7 million in the nine months ended January 31, 2026, compared to $3.6 million in the nine months ended February 1, 2025. Other expense, net in the nine months ended January 31, 2026 includes a non-cash write-off of $0.6 million of unamortized debt issuance costs, compared to $1.2 million in the nine months ended February 1, 2025. In addition, other expense, net includes $0.5 million of a net gain on sale of assets in the nine months ended January 31, 2026, compared to $0.3 million in the nine months ended February 1, 2025.

Previous wording

Income tax expense was $5.7 million (-135.7% effective tax rate) in the three months ended November 1, 2025, compared to $3.2 million (200.0% effective tax rate) in the three months ended November 2, 2024. Income tax expense was $9.9 million (-96.1% effective tax rate) in the six months ended November 1, 2025, compared to $8.4 million (-73.0% effective tax rate) in the six months ended November 2, 2024.

Current wording

Income tax expense was $2.8 million (-21.4% effective tax rate) in the three months ended January 31, 2026, compared to $6.2 million (-75.6% effective tax rate) in the three months ended February 1, 2025. Income tax expense was $12.7 million (-54.3% effective tax rate) in the nine months ended January 31, 2026, compared to $14.6 million (-74.1% effective tax rate) in the nine months ended February 1, 2025.

Previous wording

The effective tax rate for the three and six months ended November 1, 2025 differs from the U.S. federal statutory tax rate of 21% primarily due to an increase in a valuation allowance for U.S. deferred tax assets, an unfavorable effect from global intangible low-tax income, and non-deductible interest, partially offset by the effect of income derived from foreign operations with lower statutory tax rates. The effective tax rate for the three and six months ended November 2, 2024 differs from the U.S. federal statutory tax rate of 21% primarily due to an increase in a valuation allowance for U.S. deferred tax assets and global intangible low-tax income, partially offset by income derived from foreign operations with lower statutory tax rates and research deductions claimed in foreign jurisdictions and foreign exchange loss.

Current wording

The effective tax rate for the three and nine months ended January 31, 2026 differs from the U.S. federal statutory tax rate of 21% primarily due to an increase in a valuation allowance for U.S. deferred tax assets, an unfavorable effect from global intangible low-tax income, and non-deductible interest, partially offset by the effect of income derived from foreign operations with lower statutory tax rates. The effective tax rate for the three and nine months ended February 1, 2025 differs from the U.S. federal statutory tax rate of 21% primarily due to an increase in a valuation allowance for U.S. deferred tax assets and global intangible low-tax income, partially offset by income derived from foreign operations with lower statutory tax rates and research deductions claimed in foreign jurisdictions and foreign exchange loss.

Previous wording

Net sales in North America decreased $29.5 million to $40.2 million in the three months ended November 1, 2025, compared to $69.7 million in the three months ended November 2, 2024. The decrease was due to the roll-off of legacy programs, partially offset by new program launches. Net sales in EMEA decreased $5.9 million to $60.6 million in the three months ended November 1, 2025, compared to $66.5 million in the three months ended November 2, 2024. Excluding foreign currency translation, net sales in EMEA decreased $9.3 million due primarily to lower sales volumes of sensor and user interface products. Net sales in Asia increased $0.4 million to $9.7 million in the three months ended November 1, 2025, compared to $9.3 million in the three months ended November 2, 2024. Excluding foreign currency translation, net sales in Asia increased $0.5 million primarily due to higher sales volumes.

Current wording

Net sales in EMEA increased $2.1 million to $58.0 million in the three months ended January 31, 2026, compared to $55.9 million in the three months ended February 1, 2025. Excluding foreign currency translation, net sales in EMEA decreased $3.4 million due primarily to lower sales volumes of sensor and user interface products.

Previous wording

Automotive segment gross profit decreased $20.5 million, or 89.9%, to $2.3 million in the six months ended November 1, 2025, compared to $22.8 million in the six months ended November 2, 2024. Gross profit margins decreased to 1.1% in the six months ended November 1, 2025, compared to 8.1% in the six months ended November 2, 2024. The decrease in gross profit was primarily due to lower sales volumes and mix in North America.

Current wording

Automotive segment gross profit decreased $21.6 million, or 83.7%, to $4.2 million in the nine months ended January 31, 2026, compared to $25.8 million in the nine months ended February 1, 2025. Gross profit margins decreased to 1.3% in the nine months ended January 31, 2026, compared to 6.5% in the nine months ended February 1, 2025. The decrease in gross profit was primarily due to lower sales volumes and mix and higher operating expenses in North America.

Previous wording

Automotive segment loss from operations was $10.9 million in the three months ended November 1, 2025, compared to income of $0.7 million in the three months ended November 2, 2024. The loss from operations was primarily due to lower gross profit.

Current wording

Automotive segment loss from operations was $12.7 million in the three months ended January 31, 2026, compared to $9.0 million in the three months ended February 1, 2025. The loss from operations was primarily due to higher selling and administrative expenses and lower gross profit.

Previous wording

Automotive segment loss from operations was $23.4 million in the six months ended November 1, 2025, compared to $5.0 million in the six months ended November 2, 2024. The decrease was primarily due to lower gross profit, partially offset by lower selling and administrative expenses and amortization expense.

Current wording

Automotive segment loss from operations was $36.1 million in the nine months ended January 31, 2026, compared to $14.0 million in the nine months ended February 1, 2025. The decrease was primarily due to lower gross profit.

Previous wording

Industrial segment net sales decreased $4.5 million, or 3.4%, to $126.9 million in the three months ended November 1, 2025, compared to $131.4 million in the three months ended November 2, 2024. Excluding foreign currency translation, net sales decreased $7.1 million. The decrease was due to lower sales volumes for lighting products for commercial vehicles and radio remote control devices, partially offset by higher sales volumes for lighting products for off-road equipment markets.

Current wording

Industrial segment net sales increased $10.6 million, or 9.5%, to $122.5 million in the three months ended January 31, 2026, compared to $111.9 million in the three months ended February 1, 2025. Excluding foreign currency translation, net sales increased $4.7 million. The increase was due to higher sales volumes for lighting products for off-road equipment markets and power products, partially offset by lower sales volumes for lighting products for commercial vehicles.

Previous wording

Industrial segment net sales increased $7.5 million, or 3.1%, to $250.4 million in the six months ended November 1, 2025, compared to $242.9 million in the six months ended November 2, 2024. Excluding foreign currency translation, net sales increased $1.3 million. The increase was due to higher sales volumes of power products and lighting products for off-road equipment markets, partially offset by lower sales volumes for lighting products for commercial vehicles and radio remote control devices.

Current wording

Industrial segment net sales increased $18.1 million, or 5.1%, to $372.9 million in the nine months ended January 31, 2026, compared to $354.8 million in the nine months ended February 1, 2025. Excluding foreign currency translation, net sales increased $6.0 million. The increase was due to higher sales volumes of power products and lighting products for off-road equipment markets, partially offset by lower sales volumes for lighting products for commercial vehicles and radio remote control devices.

Previous wording

Industrial segment income from operations increased $5.0 million, or 20.6%, to $29.3 million in the three months ended November 1, 2025, compared to $24.3 million in the three months ended November 2, 2024. Excluding foreign currency translation, income from operations increased $4.5 million. The increase was primarily due to higher gross profit and lower selling and administrative expenses.

Current wording

Industrial segment income from operations increased $2.6 million, or 11.5%, to $25.2 million in the three months ended January 31, 2026, compared to $22.6 million in the three months ended February 1, 2025. Excluding foreign currency translation, income from operations increased $1.3 million. The increase was primarily due to higher gross profit and lower selling and administrative expenses.

Previous wording

Industrial segment income from operations increased $14.6 million, or 35.4%, to $55.8 million in the six months ended November 1, 2025, compared to $41.2 million in the six months ended November 2, 2024. Excluding foreign currency translation, income from operations increased $13.2 million. The increase was primarily due to higher gross profit and lower selling and administrative expenses. The decrease in selling and administrative expenses was primarily due to lower legal fees.

Current wording

Industrial segment income from operations increased $17.2 million, or 27.0%, to $81.0 million in the nine months ended January 31, 2026, compared to $63.8 million in the nine months ended February 1, 2025. Excluding foreign currency translation, income from operations increased $14.5 million. The increase was primarily due to higher gross profit and lower selling and administrative expenses. The decrease in selling and administrative expenses was primarily due to lower professional fees.

Previous wording

Interface segment gross profit decreased $2.4 million, or 46.2%, to $2.8 million in the three months ended November 1, 2025, compared to $5.2 million in the three months ended November 2, 2024. Gross profit margins decreased to 29.5% in the three months ended November 1, 2025, compared to 33.1% in the three months ended November 2, 2024.

Current wording

Interface segment gross profit decreased $2.4 million, or 82.8%, to $0.5 million in the three months ended January 31, 2026, compared to $2.9 million in the three months ended February 1, 2025. Gross profit margins decreased to 10.0% in the three months ended January 31, 2026, compared to 23.6% in the three months ended February 1, 2025.

Previous wording

Interface segment income from operations decreased $2.4 million, or 51.1%, to $2.3 million in the three months ended November 1, 2025, compared to $4.7 million in the three months ended November 2, 2024.

Current wording

Interface segment income from operations decreased $2.1 million, or 95.5%, to $0.1 million in the three months ended January 31, 2026, compared to $2.2 million in the three months ended February 1, 2025.

Previous wording

Interface segment income from operations decreased $1.3 million, or 19.7%, to $5.3 million in the six months ended November 1, 2025, compared to $6.6 million in the six months ended November 2, 2024.

Current wording

Interface segment income from operations decreased $3.4 million, or 38.6%, to $5.4 million in the nine months ended January 31, 2026, compared to $8.8 million in the nine months ended February 1, 2025.

Previous wording

Our liquidity requirements are primarily to fund our business operations, including capital expenditures and working capital requirements, as well as to fund debt service requirements, dividends and stock repurchases. Our primary sources of liquidity are cash flows from operations, existing cash balances and borrowings under our senior secured credit agreement. We believe our liquidity position will be sufficient to fund our existing operations and current commitments for at least the next twelve months. However, if economic conditions remain for longer than we expect due to supply chain disruptions, inflationary pressure or other geopolitical risks, or if we are unable to maintain compliance with our debt covenants, our liquidity position could be severely affected. Additionally, we may consider other options to enhance our financial and operating position. Such options may include refinancing or restructuring initiatives, sales of assets, and reductions or delays to capital spending.

Current wording

Our liquidity requirements are primarily to fund our business operations, including capital expenditures and working capital requirements, as well as to fund debt service requirements, dividends and stock repurchases. Our primary sources of liquidity are cash flows from operations, existing cash balances and borrowings under our senior secured credit agreement. We believe our liquidity position will be sufficient to fund our existing operations and current commitments for at least the next twelve months. However, if economic conditions remain for longer than we expect due to supply chain disruptions, inflationary pressure or other geopolitical risks, or if we are unable to maintain compliance with our debt covenants, our liquidity position could be severely affected. Additionally, we may consider other options to enhance our financial and operating position. Such options may include refinancing or restructuring initiatives, sales of assets, and reductions or delays in capital spending.

Previous wording

As of November 1, 2025, we had $118.5 million of cash and cash equivalents, of which $61.5 million was held in subsidiaries outside the U.S. Cash held by these subsidiaries is used to fund operational activities and can be repatriated, primarily through the payment of dividends and the repayment of intercompany loans, without creating material additional income tax expense.

Current wording

As of January 31, 2026, we had $133.7 million of cash and cash equivalents, of which $71.3 million was held in subsidiaries outside the U.S. Cash held by these subsidiaries is used to fund operational activities and can be repatriated, primarily through the payment of dividends and the repayment of intercompany loans, without creating material additional income tax expense.

Previous wording

The Amended Credit Agreement provides for a secured multicurrency revolving credit facility of $400 million. The Amended Credit Agreement matures on October 31, 2027.

Current wording

The Amended Credit Agreement provides for a secured multicurrency revolving credit facility of $400 million and matures on October 31, 2027.

Previous wording

As of November 1, 2025, the outstanding balance under the revolving credit facility consisted of $294.5 million (€255.3 million) of euro-denominated borrowings and $40.0 million of US denominated borrowings. The Amended Credit Agreement contains various representations and warranties, financial covenants (including covenants requiring us to maintain compliance with a minimum consolidated interest coverage ratio and a maximum consolidated leverage ratio, in each case as of the end of each fiscal quarter), restrictive and other covenants, and events of default. The covenants in the Amended Credit Agreement include an “anti-cash hoarding” requirement, as discussed above. As of November 1, 2025, we were in compliance with all the covenants in the Amended Credit Agreement. For further information, see Note 8, “Debt” to the condensed consolidated financial statements included in this Quarterly Report.

Current wording

As of January 31, 2026, the outstanding balance under the revolving credit facility consisted of $302.6 million (€255.3 million) of euro-denominated borrowings and $40.0 million of US denominated borrowings. The Amended Credit Agreement contains various representations and warranties, financial covenants (including covenants requiring us to maintain compliance with a minimum consolidated interest coverage ratio and a maximum consolidated leverage ratio, in each case as of the end of each fiscal quarter), restrictive and other covenants, and events of default. The covenants in the Amended Credit Agreement include an “anti-cash hoarding” requirement, as discussed above. As of January 31, 2026, we were in compliance with all the covenants in the Amended Credit Agreement. For further information, see Note 8, “Debt” to the condensed consolidated financial statements included in this Quarterly Report.

Previous wording

Net cash provided by operating activities was $17.7 million in the six months ended November 1, 2025, compared to net cash used by operating activities of $37.1 million in the six months ended November 2, 2024. The increase was due to higher cash inflows from operating assets and liabilities. The $2.9 million of cash inflows for operating assets and liabilities in the six months ended November 1, 2025 was primarily due to a lower investment in working capital items.

Current wording

Net cash provided by operating activities was $33.1 million in the nine months ended January 31, 2026, compared to net cash used by operating activities of $9.0 million in the nine months ended February 1, 2025. The increase was due to higher cash inflows from operating assets and liabilities of $18.9 million in the nine months ended January 31, 2026 primarily due to a lower investment in working capital items.

Previous wording

Net cash used by investing activities was $9.5 million in the six months ended November 1, 2025, compared to $21.0 million in the six months ended November 2, 2024. Capital expenditures were $11.3 million in the six months ended November 1, 2025, compared to $24.0 million in the six months ended November 2, 2024. In the six months ended November 1, 2025, we received proceeds of $1.8 million from the sale of assets, compared to $3.0 million in the six months ended November 2, 2024. In the six months ended November 1, 2025, we received proceeds of $0.5 million from the redemption of certain life insurance policies.

Current wording

Net cash used by investing activities was $13.6 million in the nine months ended January 31, 2026, compared to $26.7 million in the nine months ended February 1, 2025. Capital expenditures were $16.6 million in the nine months ended January 31, 2026, compared to $32.5 million in the nine months ended February 1, 2025. In the nine months ended January 31, 2026, we received proceeds of $1.3 million from the sale of assets, compared to $2.7 million in the nine months ended February 1, 2025. In the nine months ended January 31, 2026, we received proceeds of $1.7 million from the redemption of certain life insurance policies.

Previous wording

Net cash provided by financing activities was $3.1 million in the six months ended November 1, 2025, compared to net cash used by financing activities of $8.1 million in the six months ended November 2, 2024. In the six months ended November 1, 2025, we had net proceeds from borrowings of $10.4 million, compared to net proceeds from borrowings of $5.9 million in the six months ended November 2, 2024. In the six months ended November 1, 2025, we paid $1.6 million of debt issuance costs associated with the Third Amendment, compared to $1.3 million of debt issuance costs associated with the Second Amendment. In the six months ended November 2, 2024, we used $1.6 million of cash for the purchase of shares under the board-authorized share repurchase program in place at the time.

Current wording

Net cash provided by financing activities was $1.0 million in the nine months ended January 31, 2026, compared to net cash used by financing activities of $16.6 million in the nine months ended February 1, 2025. In the nine months ended January 31, 2026, we had net proceeds from borrowings of $10.3 million, compared to net proceeds from borrowings of $5.8 million in the nine months ended February 1, 2025. In the nine months ended January 31, 2026, we paid $1.6 million of debt issuance costs associated with the Third Amendment, compared to $1.8 million of debt issuance costs associated with the Second Amendment. In the nine months ended February 1, 2025, we used $1.6 million of cash for the purchase of shares under the board-authorized share repurchase program in place at the time.

Previous wording

We paid cash dividends of $4.7 million in the six months ended November 1, 2025, compared to $10.0 million in the six months ended November 2, 2024.

Current wording

We paid cash dividends of $6.5 million in the nine months ended January 31, 2026, compared to $15.3 million in the nine months ended February 1, 2025.