ROGERS CORP
For the period ended Sep 30, 2026. Filed Oct 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 28, 2026
ROG$121.96+5.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0000084748-26-000048
Item 2. Management’s Discussion and Analysis of Results of Operations and Financial PositionCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-28.
0000084748-26-000057
Item 2. Management’s Discussion and Analysis of Results of Operations and Financial PositionThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 83 previous paragraphs and 86 current paragraphs.
39 unchanged; 30 reworded; 17 added; 13 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
•our ability to realize the anticipated benefits of our cost reduction, restructuring, manufacturing and site consolidation and operational excellence initiatives;
Current report
Company Overview
Current report
Our strategy is to build a high-growth, high-performing company by strengthening our positions in attractive core markets and extending proven technologies and manufacturing capabilities into compelling adjacent opportunities.
Current report
Our core end markets include industrial, automotive, aerospace and defense, electronics, and communications. Demand in these markets is supported by market trends including aerospace and defense investment, electrification, higher levels of vehicle safety, factory automation, supply chain regionalization, and increasing demand for premium electronic devices.
Current report
Our targeted high-growth adjacent opportunities include AI data centers, advanced battery systems, and electromagnetic interference shielding, where we are leveraging established products, applications expertise, manufacturing capabilities, and customer relationships to address evolving performance requirements.
Current report
Our sales, applications engineering and technical service teams work closely with customers throughout the development process to understand system-level challenges and develop customized solutions. This customer-focused model, together with our broad product portfolio, global manufacturing footprint, regional technical support, and reputation for mission-critical reliability, supports strong customer relationships and our growth plans.
Current report
We are operating with greater focus and accountability to make faster decisions, shorten development cycles, and respond more quickly to customer needs. Our operational improvement initiatives include improving quality, yields, and throughput; strengthening procurement and supplier strategies; advancing continuous improvement; and maintaining a scalable cost structure.
Current report
We intend to continue investing in innovation, technical capabilities, and manufacturing capacity in a disciplined manner, while preserving financial flexibility and allocating capital to opportunities that we believe offer attractive risk-adjusted returns and create long-term shareholder value.
Current report
If we successfully execute this strategy, we believe we can increase annual revenues through a combination of growth in our core markets and targeted high-growth adjacent opportunities. We expect organic growth to be the primary driver, with the potential to be supplemented by disciplined acquisitions that add capabilities, strengthen market positions, or accelerate our strategic priorities. Achieving this revenue growth is also expected to result in higher profitability and earnings.
Current report
Net sales increased in the third quarter by 9.3%, or $20.1 million, of which $17.7 million was driven by higher demand and favorable pricing, including increases in average selling prices, and $2.4 million was attributable to favorable foreign currency exchange rates. Sales increased in all end markets, including the electronics and communications, automotive, and aerospace and defense markets, in the third quarter of 2026 compared to the third quarter of 2025.
Current report
Net sales increased in the first nine months by 7.2%, or $44.1 million, of which $28.6 million was driven by higher demand and favorable pricing, including increases in average selling prices, and $15.5 million was attributable to favorable foreign currency exchange rates. Sales increased in multiple end markets, including the electronics and communications and industrial markets, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Current report
SG&A expenses increased 2.4% in the third quarter of 2026 from the third quarter of 2025, primarily due to an increase in compensation and benefit expense.
Current report
R&D expenses decreased 2.3% in the nine months ended September 30, 2026 from the nine months ended September 30, 2025, primarily due to a reduction in compensation and benefits expense.
Current report
Interest income, net was $0.6 million in the third quarter of 2026 compared to $0.2 million in the third quarter of 2025. The increase was primarily due to interest income earned related to our short-term investments.
Current report
Interest income, net was $1.2 million in the nine months ended September 30, 2026 compared to $0.9 million in the nine months ended September 30, 2025. The increase was primarily due to interest income earned related to our short-term investments.
Current report
We had a tax rate of 47.2% in the third quarter of 2025. During such quarter, our effective tax rate was unfavorably impacted by (i) an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized and (ii) an increase in reserves for uncertain tax positions.
Current report
AES net sales increased in the third quarter by 13.5%, or $15.5 million, of which $14.2 million was driven by higher demand and favorable pricing, including increases in average selling prices, and $1.3 million was attributable to favorable foreign currency exchange rates. Sales increased in all end markets, including electronics and communications, automotive, and industrial, in the third quarter of 2026 compared to the third quarter of 2025.
Removed paragraphs (13)
Previous report
Company Overview and Strategy
Previous report
Our growth and profitability strategy is based upon the following principles: (1) market-driven organization, (2) innovation leadership, (3) operational excellence, and (4) synergistic mergers and acquisitions. Our priorities in executing this strategy are focused on driving near-term improvements to profitability and improving the growth outlook for the Company over the next several years by further strengthening our focus on commercial activities, optimizing our global capacity to meet customer demand and driving innovation.
Previous report
As a market-driven organization, we are focused on capitalizing on growth opportunities across multiple end markets. This includes the aerospace and defense industry, with opportunities driven by the advancement of communication systems and expanding global air travel. Also, the automotive industry where there are market opportunities resulting from continuing trends in vehicle electrification and ADAS adoption. In the electronics and communications industries there are compelling opportunities resulting from growth in data centers and next-generation smartphones. Industrial markets provide growth opportunities in certain sub-markets, including renewable energy which continues to expand globally.
Previous report
Our growth strategy is based on addressing trends in these markets and maintaining a strong customer-centric focus. Our sales engineers and technical service employees work closely with our customers to understand their needs and then leverage our development capabilities and applications expertise to provide customized solutions. Our strategy is supported by an expansive product portfolio and a reputation for producing high performance and reliable products. We expect to secure further commercial wins and improve sales as we execute on this strategy.
Previous report
Our operational excellence efforts are focused on driving ongoing cost improvements and efficiencies to further enhance our profitability while enhancing the agility and customer focus of the organization. These efforts include focusing on improving yields, throughput, procurement capabilities, and manufacturing processes. We have also taken specific cost improvement actions in recent quarters that have and will benefit our performance. These actions include optimizing our manufacturing footprint and reducing manufacturing and corporate employees. We continue to review and re-align our manufacturing and engineering footprint in an effort to maintain a leading competitive position globally and to support our customers’ growth initiatives.
Previous report
We seek to enhance our operational and financial performance by investing in research and development, manufacturing and materials efficiencies, and new product initiatives that respond to the needs of our customers. We strive to evaluate operational and strategic alternatives to improve our business structure and align our business with the changing needs of our customers and evolving industry trends.
Previous report
If we successfully execute this growth and operational improvement strategy, we see an opportunity, over the next several years, to increase revenues from current levels and further improve profitability. The increase in revenues is largely expected to come from our organic business, with the potential to augment this growth through targeted acquisitions.
Previous report
Net sales increased in the second quarter by 6.9%, or $14.0 million, of which $8.7 million was driven by higher demand and $5.3 million of currency benefit. By end market, sales increased in the electronics and communications, industrial, and automotive markets, partially offset by lower net sales in the aerospace and defense market, in the second quarter of 2026 compared to the second quarter of 2025.
Previous report
Net sales increased in the first six months by 6.1%, or $24.0 million, of which $10.9 million was driven by higher demand and $13.1 million of currency benefit. By end market, sales increased in the electronics and communications and industrial markets, partially offset by lower net sales in the automotive market, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Previous report
SG&A expenses decreased 13.0% in the second quarter of 2026 from the second quarter of 2025, primarily due to a $2.1 million reduction in professional services costs, a $2.2 million reduction in total compensation and benefit expense, and a $0.5 million reduction in software costs.
Previous report
R&D expenses decreased 0.7% in the six months ended June 30, 2026 from the six months ended June 30, 2025, primarily due to a $1.1 million decrease in compensation and benefits expense, partially offset by a $0.2 million increase in professional services and a $0.5 million increase in R&D trials for product development.
Previous report
Interest income, net, was flat for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025.
Previous report
AES net sales increased in the second quarter by 7.8%, or $8.5 million, of which $5.2 million was driven by higher demand and $3.3 million of currency benefit. By end market, sales increased for electronics and communications, and automotive, while sales in the aerospace and defense market were lower, in the second quarter of 2026 compared to the second quarter of 2025.
Reworded paragraphs (30)
Previous wording
This Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Such statements are generally accompanied by words such as “anticipate,” “assume,” “believe,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “seek,” “target” or similar expressions that convey uncertainty as to future events or outcomes. Forward-looking statements are based on assumptions and beliefs that we believe to be reasonable; however, assumed facts almost always vary from actual results, and the differences between assumed facts and actual results could be material depending upon the circumstances. Where we express an expectation or belief as to future results, that expectation or belief is expressed in good faith and based on assumptions believed to have a reasonable basis. We cannot assure you, however, that the stated expectation or belief will occur or be achieved or accomplished. Among the factors that could cause our results to differ materially from those indicated by forward-looking statements are risks and uncertainties inherent in our business including, without limitation:
Current wording
This Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act. Such statements are generally accompanied by words such as “anticipate,” “assume,” “believe,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “seek,” “target” or similar expressions that convey uncertainty as to future events or outcomes. Forward-looking statements are based on assumptions and beliefs that we believe to be reasonable; however, assumed facts almost always vary from actual results, and the differences between assumed facts and actual results could be material depending upon the circumstances. Where we express an expectation or belief as to future results, that expectation or belief is expressed in good faith and based on assumptions believed to have a reasonable basis. We cannot assure you, however, that the stated expectation or belief will occur or be achieved or accomplished. Among the factors that could cause our results to differ materially from those indicated by forward-looking statements are risks and uncertainties inherent in our business including, without limitation:
Previous wording
We design, develop, manufacture and sell high-performance and high-reliability engineered materials and components to meet our customers’ needs. We operate two strategic operating and reportable segments: AES and EMS. Our remaining operations, which represent non-core businesses, are reported in our Other operating segment. We are headquartered in Chandler, Arizona.
Current wording
We design, develop, manufacture, and sell high-performance, high-reliability engineered materials and components that help customers solve complex challenges in connectivity, thermal management, power electronics, system protection, and other areas. We operate in two reportable segments: AES and EMS. Our remaining non-core operations are reported in our Other operating segment. We are headquartered in Chandler, Arizona.
Previous wording
The following synopsis and factors should be considered when reviewing our results of operations, financial position and liquidity:
Current wording
The following factors should be considered when reviewing our results of operations, financial position, and liquidity:
Previous wording
•In the second quarter of 2026 as compared to the second quarter of 2025, our net sales increased approximately 6.9% to $216.8 million, our gross margin increased approximately 90 basis points to 32.5% from 31.6%, and we had an operating margin of 9.2% compared to an operating loss of 33.3%.
Current wording
•In the third quarter of 2026 as compared to the third quarter of 2025, our net sales increased approximately 9.3% to $236.1 million, our gross margin increased approximately 70 basis points to 34.2% from 33.5%, and we had an operating margin of 12.7% compared to an operating margin of 7.3%.
Previous wording
•We repurchased 22.6 thousand shares of our capital stock for $3.0 million in the second quarter of 2026.
Current wording
•We repurchased 73.4 thousand shares of our capital stock for $9.3 million in the third quarter of 2026.
Previous wording
Gross margin as a percentage of net sales increased approximately 90 basis points to 32.5% in the second quarter of 2026 compared to 31.6% in the second quarter of 2025. Gross margin in the second quarter of 2026 increased due to higher sales volume, favorable mix, and operational efficiencies, partially offset by increased raw material costs.
Current wording
Gross margin as a percentage of net sales increased approximately 70 basis points to 34.2% in the third quarter of 2026 compared to 33.5% in the third quarter of 2025. Gross margin in the third quarter of 2026 increased due to higher sales volume, favorable mix, and operational efficiencies, partially offset by increased raw material costs.
Previous wording
Gross margin as a percentage of net sales increased approximately 160 basis points to 32.4% in the six months ended June 30, 2026 compared to 30.8% in the six months ended June 30, 2025. Gross margin in the six months ended June 30, 2026 increased due to higher sales volume, favorable mix, and productivity improvements from cost savings following our manufacturing footprint consolidation in Belgium and Germany, partially offset by increased raw material costs.
Current wording
Gross margin as a percentage of net sales increased approximately 130 basis points to 33.0% in the nine months ended September 30, 2026 compared to 31.7% in the nine months ended September 30, 2025. Gross margin in the nine months ended September 30, 2026 increased due to higher sales volume, favorable mix, and productivity improvements from cost savings following our manufacturing footprint consolidation in Belgium and Germany, partially offset by increased raw material costs.
Previous wording
SG&A expenses decreased 10.3% in the six months ended June 30, 2026 from the six months ended June 30, 2025, primarily due to a $2.2 million reduction in total compensation and benefit expense, a $4.6 million reduction in professional services costs, and a $1.4 million reduction in software costs.
Current wording
SG&A expenses decreased 6.4% in the nine months ended September 30, 2026 from the nine months ended September 30, 2025, primarily due to a $4.4 million reduction in professional services costs, a $1.5 million reduction in software costs, and a $1.0 million reduction in depreciation.
Previous wording
R&D expenses increased 4.3% in the second quarter of 2026 from the second quarter of 2025, primarily due to a $0.5 million increase in R&D trials for product development, partially offset by a $0.4 million decrease in compensation and benefits expense.
Current wording
R&D expenses decreased 5.4% in the third quarter of 2026 from the third quarter of 2025, primarily due to a $0.4 million reduction in R&D trials.
Previous wording
We incurred restructuring and impairment charges of $0.7 million and $6.6 million in the three and six months ended June 30, 2026, due to our footprint consolidation actions in our Eschenbach, Germany facility, the executive leadership transition, additional reduction in forces, and the impairment of our Mexico facility lease. For additional information, refer to “Note 13 – Supplemental Financial Information” to the condensed consolidated financial statements in Part I, Item 1, of this Form 10-Q.
Current wording
We incurred restructuring, asset impairment, and other charges of $1.0 million and $7.6 million in the three and nine months ended September 30, 2026, respectively, due to our footprint consolidation actions in our Eschenbach, Germany facility, the executive leadership transition, additional reductions in force, and the impairment of our Mexico facility lease. For additional information, refer to “Note 13 – Supplemental Financial Information” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.
Previous wording
Other income (expense), net was income of $1.1 million in the second quarter of 2026 compared to expense of $2.2 million in the second quarter of 2025. The increase was primarily due to $3.8 million of favorable year-over-year changes in impacts from foreign currency transactions combined with $0.6 million for our copper derivative, partially offset by $1.0 million in unfavorable performance on foreign exchange derivative contracts.
Current wording
Other income (expense), net was income of $0.3 million in the third quarter of 2026 compared to income of $0.4 million in the third quarter of 2025. The decrease primarily reflected unfavorable foreign currency impacts, partially offset by favorable copper derivative performance.
Previous wording
Other income (expense), net was income of $1.4 million in the six months ended June 30, 2026 compared to expense of $3.8 million in the six months ended June 30, 2025. The increase was primarily due to $6.4 million of favorable year-over-year changes in impacts from foreign currency transactions, partially offset by $1.8 million in unfavorable performance on foreign exchange derivative contracts.
Current wording
Other income (expense), net was income of $1.7 million in the nine months ended September 30, 2026 compared to expense of $3.4 million in the nine months ended September 30, 2025. The increase was primarily due to $6.0 million of favorable year-over-year changes in impacts from foreign currency transactions combined with a $0.9 million increase related to our copper derivative, partially offset by $2.2 million in unfavorable performance on foreign exchange derivative contracts.
Previous wording
Compared to the 21% U.S. statutory federal income tax rate, we had a tax rate of 36.4% in the second quarter of 2026. During the quarter, our effective tax rate was unfavorably impacted by an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized.
Current wording
Compared to the 21% U.S. statutory federal corporate income tax rate, we had a tax rate of 27.1% in the third quarter of 2026. During the quarter, our effective tax rate was unfavorably impacted by an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized.
Previous wording
We had a tax rate of 44.6% in the six months ended June 30, 2026. The effective rate for the first six months of 2026 was unfavorably impacted by an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized.
Current wording
We had a tax rate of 36.1% for the nine months ended September 30, 2026. The effective rate for the first nine months of 2026 was unfavorably impacted by an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized.
Previous wording
We had a negative tax rate of 5.8% for the six months ended June 30, 2025 due to tax expense on a pre-tax book loss. Our income tax expense for the six months ended June 30, 2025 of $4.1 million was comprised primarily of an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized. Our effective tax rate was also unfavorably impacted by the $67.3 million goodwill impairment in curamik® for which no tax benefit is available.
Current wording
We had a negative tax rate of 21.6% for the nine months ended September 30, 2025 due to tax expense on a pre-tax book loss. Our income tax expense for the nine months ended September 30, 2025 was unfavorably impacted by the $67.3 million goodwill impairment in curamik® for which no tax benefit is available, an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized, and an increase in reserves for uncertain tax positions.
Previous wording
AES net sales increased in the first six months by 5.6%, or $12.0 million, of which $3.5 million was driven by higher demand and $8.5 million of currency benefit. By end market, sales increased for electronics and communications, automotive, and industrial, while sales in the aerospace and defense market were lower, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
AES net sales increased in the first nine months by 8.4%, or $27.5 million, of which $17.7 million was driven by higher demand and favorable pricing, including increases in average selling prices, and $9.8 million was attributable to favorable foreign currency exchange rates. By end market, sales increased for electronics and communications, automotive, and industrial, while sales in the aerospace and defense market were lower, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
Our AES operating and reportable segment gross margin as a percentage of net sales in the second quarter of 2026 was 28.5% as compared to 28.3% in the second quarter of 2025. Gross margin improved primarily due to higher sales volume and favorable mix, partially offset by increased raw material costs.
Current wording
Our AES operating and reportable segment gross margin as a percentage of net sales in the third quarter of 2026 was 31.0% compared to 31.5% in the third quarter of 2025. Gross margin declined primarily due to lower absorption from shift in production volumes between regions and increased raw material costs, partially offset by higher sales volumes and favorable mix.
Previous wording
Our AES operating and reportable segment gross margin as a percentage of net sales in the six months ended June 30, 2026 was 28.8% as compared to 28.1% in the six months ended June 30, 2025. Gross margin improved primarily due to higher sales volume, favorable mix, and productivity improvements from cost savings following our manufacturing footprint consolidation in Belgium and Germany, partially offset by lower utilization from a new production line and increased raw material costs.
Current wording
Our AES operating and reportable segment gross margin as a percentage of net sales in the nine months ended September 30, 2026 was 29.6% compared to 29.3% in the nine months ended September 30, 2025. Gross margin improved primarily due to higher sales volume, favorable mix, and productivity improvements from cost savings following our manufacturing footprint consolidation in Belgium and Germany, partially offset by lower utilization from a new production line and increased raw material costs.
Previous wording
EMS net sales increased in the second quarter by 6.0%, or $5.4 million, of which $3.6 million was driven by higher demand and $1.8 million of currency benefit. By end market, sales increased in the industrial, electronics and communications, and aerospace and defense markets, partially offset by lower sales in the automotive market, in the second quarter of 2026 compared to the second quarter of 2025.
Current wording
EMS net sales increased in the third quarter by 4.3%, or $4.2 million, of which $3.2 million was driven by higher demand and favorable pricing, including increases in average selling prices, and $1.0 million was attributable to favorable foreign currency exchange rates. By end market, sales increased in the automotive and aerospace and defense markets, partially offset by slightly lower sales in the electronics and communication and industrial market, in the third quarter of 2026 compared to the third quarter of 2025.
Previous wording
EMS net sales increased in the first six months by 6.5%, or $11.2 million, of which $6.9 million was driven by higher demand and $4.3 million of currency benefit. By end market, sales increased in the industrial, electronics and communications, and aerospace and defense markets, partially offset by lower sales in the automotive market, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
EMS net sales increased in the first nine months by 5.7%, or $15.4 million, of which $10.1 million was driven by higher demand and favorable pricing, including increases in average selling prices, and $5.3 million was attributable to favorable foreign currency exchange rates. By end market, sales increased in the industrial, electronics and communications, and aerospace and defense markets, partially offset by lower sales in the automotive market, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
Our EMS operating and reportable segment gross margin as a percentage of net sales in the second quarter of 2026 was 36.9% as compared to 35.2% in the second quarter of 2025. Gross margin improved primarily due to increased sales volume and related utilization benefits and operational efficiencies.
Current wording
Our EMS operating and reportable segment gross margin as a percentage of net sales in the third quarter of 2026 was 38.4% compared to 35.7% in the third quarter of 2025. Gross margin improved primarily due to increased sales volume, related utilization benefits, and operational efficiencies.
Previous wording
Our EMS operating and reportable segment gross margin as a percentage of net sales in the six months ended June 30, 2026 was 36.2% as compared to 33.8% in the six months ended June 30, 2025. Gross margin improved primarily due to increased sales volume and related utilization benefits and productivity improvements.
Current wording
Our EMS operating and reportable segment gross margin as a percentage of net sales in the nine months ended September 30, 2026 was 37.0% compared to 34.5% in the nine months ended September 30, 2025. Gross margin improved primarily due to increased sales volume, related utilization benefits, and productivity improvements.
Previous wording
Approximately $107.1 million of our cash and cash equivalents were held by non-U.S. subsidiaries as of June 30, 2026. We did not make any changes in the six months ended June 30, 2026 to our position on the permanent reinvestment of our earnings from foreign operations. With the exception of certain of our Chinese subsidiaries, where a substantial portion of our cash and cash equivalents located in Asia are held, we continue to assert that historical foreign earnings are indefinitely reinvested.
Current wording
Approximately $136.7 million of our cash and cash equivalents were held by non-U.S. subsidiaries as of September 30, 2026. We did not make any changes in the nine months ended September 30, 2026 to our position on the permanent reinvestment of our earnings from foreign operations. With the exception of certain of our Chinese subsidiaries, where a substantial portion of our cash and cash equivalents located in Asia are held, we continue to assert that historical foreign earnings are indefinitely reinvested.
Previous wording
•Cash and cash equivalents were $181.4 million as compared to $197.0 million as of December 31, 2025, a decrease of $15.6 million, or 7.9%. This decrease was primarily due to cash used in investing and financing activities, partially offset by cash provided by operations and favorable impacts of exchange rates on cash.
Current wording
•Cash and cash equivalents were $206.1 million as compared to $197.0 million as of December 31, 2025, an increase of $9.1 million, or 4.6%. This increase was primarily due to cash provided by operations, partially offset by cash used in investing and financing activities and an unfavorable impact of exchange rates on cash.
Previous wording
•Short-term investments were $30.0 million as compared to nil as of December 31, 2025. The addition of short-term investments was due to the purchase of time deposits with original maturities of more than three months and less than twelve months at the date of purchase, as of June 30, 2026.
Current wording
•Short-term investments were $30.3 million as compared to nil as of December 31, 2025. The addition of short-term investments was due to the purchase of time deposits with original maturities of more than three months and less than twelve months at the date of purchase, as of September 30, 2026.
Previous wording
•Accounts receivable, net increased 14.2% to $149.2 million as of June 30, 2026 from $130.6 million as of December 31, 2025. The increase was primarily due to higher net sales in the last month of the second quarter of 2026 compared to the last month of the fourth quarter of 2025.
Current wording
•Accounts receivable, net increased 19.0% to $155.4 million as of September 30, 2026 from $130.6 million as of December 31, 2025. The increase was primarily due to higher net sales in the last month of the third quarter of 2026 compared to the last month of the fourth quarter of 2025.
Previous wording
•Inventories were $130.0 million as of June 30, 2026, compared to $125.0 million as of December 31, 2025. The change was due to higher levels of raw materials inventory, offset by lower levels of work-in-process and finished goods inventory.
Current wording
•Inventories were $130.6 million as of September 30, 2026, compared to $125.0 million as of December 31, 2025. The change was due to higher levels of raw materials and finished goods inventory, offset by lower levels of work-in-process inventory.
Previous wording
•Net cash used in investing activities was $40.3 million as compared to $3.4 million as of June 30, 2025, an increase in net cash used of $36.9 million. This increase in net cash used was primarily due to purchases of short-term investments, which consists of time deposits with original maturities of more than three months and less than twelve months at the date of purchase.
Current wording
•Net cash used in investing activities was $46.3 million as compared to $11.2 million for the nine months ended September 30, 2025, an increase in net cash used of $35.1 million. This increase in net cash used was primarily due to purchases of short-term investments, which consists of time deposits with original maturities of more than three months and less than twelve months at the date of purchase.
Previous wording
•Net cash used in financing activities was $4.6 million as compared to $29.6 million as of June 30, 2025, a decrease in net cash used of $25.0 million. This decrease in net cash used was primarily due to a lower level of share repurchase activity.
Current wording
•Net cash used in financing activities was $15.6 million as compared to $40.0 million for the nine months ended September 30, 2025, a decrease in net cash used of $24.4 million. This decrease in net cash used was primarily due to a lower level of share repurchase activity.
Previous wording
During the second quarter of 2026, we did not become aware of any material developments related to environmental matters disclosed in our Annual Report, our asbestos litigation or other material contingencies previously disclosed or incur any material costs or capital expenditures related to such matters. Refer to “Note 9 – Commitments and Contingencies” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q for further discussion of these contingencies.
Current wording
During the third quarter of 2026, we did not become aware of any material developments related to environmental matters disclosed in our Annual Report, our asbestos litigation or other material contingencies previously disclosed or incur any material costs or capital expenditures related to such matters. Refer to “Note 9 – Commitments and Contingencies” to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q for further discussion of these contingencies.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
We had a negative tax rate of 6.2% in the second quarter of 2025 due to tax expense on a pre-tax book loss. Our income tax expense for the second quarter of 2025 of $4.3 million was comprised primarily of an increase in the valuation allowance attributable to loss jurisdictions in which no tax benefit is anticipated to be realized. Our effective tax rate was also unfavorably impacted by the $67.3 million goodwill impairment in curamik® for which no tax benefit is available.