UNIVERSAL ELECTRONICS INC

Previous wording

All statements in this report are made as of the date this Form 10-Q is filed with the U.S. Securities and Exchange Commission (the "SEC"). We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. We make forward-looking statements in Management's Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this report based on the beliefs and assumptions of our management and on information available to us through the date this Form 10-Q is filed with the SEC. Forward-looking statements include supply chain issues; other future demand and recovery trends and expectations; the delay by or failure of our customers to order products from us; plans to shut down our Mexico manufacturing facility, including the timing thereof; continued availability of cash through borrowing under our revolving lines of credit; the effects of natural or other events beyond our control, including the effects of political unrest, war, terrorist activities, other hostilities, or the outbreak of infectious diseases may have on us or the economy; the economic environments, including increases in interest rates and recessionary effects on us or our customers; the effects of doing business internationally, including expanded use of tariffs, pertaining to the importation of our products, particularly in light of the recent U.S. presidential administrative actions and the responsive retaliatory actions of foreign governments; our expectations regarding our ability to meet our liquidity requirements; our capital expenditures and other investment spending expectations; our expectations with respect to the impact of changes in tax laws; and other statements that are preceded by, followed by, or include the words "believes," "expects," "anticipates," "intends," "plans," "estimates," "foresees," or similar expressions; and similar statements concerning anticipated future events and expectations that are not historical facts.

Current wording

All statements in this report are made as of the date this Form 10-Q is filed with the U.S. Securities and Exchange Commission (the "SEC"). We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. We make forward-looking statements in Management's Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this report based on the beliefs and assumptions of our management and on information available to us through the date this Form 10-Q is filed with the SEC. Forward-looking statements include: supply chain issues; customer demand for our products and solutions; expectations with respect to the markets in which we operate, including for specific geographic markets; other future demand and recovery trends and expectations; the delay by or failure of our customers to order products from us; plans to shut down our Mexico manufacturing facility, including the timing thereof and related costs; expected benefits of our restructuring and cost-reduction activities; continued availability of cash through borrowing under our revolving lines of credit; risks related to interest rates and foreign currency exchange rates; the effects of doing business internationally, including expanded use of tariffs, pertaining to the importation of our products, particularly in light of the recent U.S. presidential administrative actions and the responsive retaliatory actions of foreign governments; our expectations regarding our ability to meet our liquidity requirements; our capital expenditures and other investment spending expectations; our expectations with respect to the impact of changes in tax laws; and other statements that are preceded by, followed by, or include the words "believes," "expects," "anticipates," "intends," "plans," "estimates," "foresees," or similar expressions; and similar statements concerning anticipated future events and expectations that are not historical facts.

Previous wording

We operate as one business segment. We have 24 international subsidiaries located in Brazil, British Virgin Islands, France, Germany, Hong Kong (3), India, Italy, Japan, Korea, Mexico (2), the Netherlands, People's Republic of China (the "PRC") (6), Singapore, Spain, United Kingdom and Vietnam.

Current wording

We operate as one business segment. We have 24 international subsidiaries located in Brazil, the British Virgin Islands, France, Germany, Hong Kong (3), India, Italy, Japan, Korea, Mexico (2), the Netherlands, the People's Republic of China (the "PRC") (6), Singapore, Spain, United Kingdom and Vietnam.

Previous wording

•Operating expenses, as a percentage of net sales, decreased to 28.9% for the three months ended June 30, 2025 from 33.6% for the three months ended June 30, 2024.

Current wording

•Operating expenses, as a percentage of net sales, increased to 32.7% for the three months ended September 30, 2025 from 29.7% for the three months ended September 30, 2024.

Previous wording

•Our operating income was $1.0 million for the three months ended June 30, 2025 compared to operating loss of $4.5 million for the three months ended June 30, 2024. Our operating income percentage was 1.0% for the three months ended June 30, 2025 compared to our operating loss percentage of 4.9% for the three months ended June 30, 2024.

Current wording

•Our operating loss was $4.5 million for the three months ended September 30, 2025 compared to operating income of $0.4 million for the three months ended September 30, 2024. Our operating loss percentage was 5.0% for the three months ended September 30, 2025 compared to our operating income percentage of 0.4% for the three months ended September 30, 2024.

Previous wording

We have continued to evaluate our global manufacturing footprint as part of our overall cost optimization and return to profitability strategy. In late July 2025, our Board approved a plan to shut down our Mexico manufacturing facility based upon strong productivity at our Vietnam factory and decreased demand in our home entertainment channel. We expect this shut down to be completed by the end of 2025 with material shutdown-related expenses recorded throughout the remainder of the year.

Current wording

We have continued to evaluate our global manufacturing footprint as part of our overall cost optimization and return to profitability strategy. In late July 2025, our Board approved a plan to shut down our Mexico manufacturing facility based upon strong productivity at our Vietnam factory and decreased demand in our home entertainment channel. We expect this shut down to be completed by the end of 2025 with additional shutdown-related expenses recorded throughout the remainder of the year.

Previous wording

An accounting estimate is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, if different estimates reasonably may have been used, or if changes in the estimate that are reasonably likely to occur may materially impact the financial statements. We do not believe that there have been any significant changes during the six months ended June 30, 2025 to the items that we disclosed as our critical accounting policies and estimates in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in our 2024 Form 10-K.

Current wording

An accounting estimate is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, if different estimates reasonably may have been used, or if changes in the estimate that are reasonably likely to occur may materially impact the financial statements. We do not believe that there have been any significant changes during thenine months ended September 30, 2025 to the items that we disclosed as our critical accounting policies and estimates in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in our 2024 Form 10-K.

Previous wording

Net sales. Net sales for the three months ended June 30, 2025 were $97.7 million compared to $90.5 million for the three months ended June 30, 2024. Net sales by channel were as follows:

Current wording

Net sales. Net sales for the three months ended September 30, 2025 were $90.6 million compared to $102.1 million for the three months ended September 30, 2024. Net sales by channel were as follows:

Previous wording

Net sales in connected home were $34.1 million for the three months ended June 30, 2025 compared to $23.3 million for the three months ended June 30, 2024. This growth is driven primarily by shipments to large climate control and home automation customers relating to projects won over the past couple of years.

Current wording

Net sales in connected home were $29.8 million for the three months ended September 30, 2025 compared to $26.4 million for the three months ended September 30, 2024. This growth is driven primarily by shipments to large climate control and home automation customers relating to projects won over the past couple of years.

Previous wording

Net sales in home entertainment were $63.6 million for the three months ended June 30, 2025 compared to $67.2 million for the three months ended June 30, 2024. The sales decrease in the home entertainment channel is due to lower demand for subscription broadcasting products in Latin America, specifically basic remote controls with low price points. In addition, certain customers in the consumer electronics industry experienced lower demand for televisions, resulting in a decrease in remote control sales in this market.

Current wording

Net sales in home entertainment were $60.8 million for the three months ended September 30, 2025 compared to $75.7 million for the three months ended September 30, 2024. The decrease in sales within the home entertainment channel was primarily driven by lower demand for subscription broadcasting products in Europe and Latin America, particularly for basic remote controls with lower price points and limited or no advanced features. In addition, several customers in the consumer electronics industry experienced reduced demand for televisions, which led to a corresponding decline in remote control sales in this channel. The retail market also remains weak, reflecting elevated inventory levels and soft sell-through performance.

Previous wording

Research and development ("R&D") expenses. R&D expenses decreased to $7.0 million for the three months ended June 30, 2025 from $7.5 million for the three months ended June 30, 2024 due to headcount reductions.

Current wording

Research and development ("R&D") expenses. R&D expenses decreased to $6.7 million for the three months ended September 30, 2025 from $7.3 million for the three months ended September 30, 2024 attributable to reductions in payroll and related personnel expenses following headcount optimization actions.

Previous wording

Selling, general and administrative ("SG&A") expenses. SG&A expenses decreased slightly to $21.2 million for the three months ended June 30, 2025 from $21.3 million for the three months ended June 30, 2024.

Current wording

Selling, general and administrative ("SG&A") expenses. SG&A expenses decreased to $22.1 million for the three months ended September 30, 2025 from $22.9 million for the three months ended September 30, 2024. The decrease reflects lower volume-driven expenses of $0.9 million, consistent with the decline in sales volume. In addition, ongoing cost-reduction initiatives, including organizational rightsizing, resulted in savings from headcount reductions. People-related expenses decreased by $1.8 million, complemented by an additional $1.0 million reduction in other discretionary spending. These savings were largely offset by one-time charges incurred during the period, including $1.3 million related to the abandonment of office space in Carlsbad, California and $1.7 million of severance costs associated with our global reduction in force.

Previous wording

Factory restructuring charges. During the six months ended June 30, 2024, we recorded $2.6 million in expense, which included severance and moving costs associated with the closure of our southern China factory and the streamlining of our factory in Mexico.

Current wording

Factory restructuring charges. During the three months ended September 30, 2025, we recorded $0.8 million in expense, including severance and moving costs associated with the closure of our factory in Mexico. During the three months ended September 30, 2024, we recorded $0.1 million in expense, which included severance and moving costs associated with the streamlining of our factory in Mexico.

Previous wording

Interest income (expense), net. Interest expense, net decreased to $0.4 million for the three months ended June 30, 2025 from $0.8 million for the three months ended June 30, 2024, as a result of a lower average loan balance and lower interest rates.

Current wording

Interest income (expense), net. Interest expense, net decreased to $0.2 million for the three months ended September 30, 2025 from $0.9 million for the three months ended September 30, 2024, as a result of a lower average loan balance and lower interest rates.

Previous wording

Other income (expense), net. Other expense, net was $1.8 million for the three months ended June 30, 2025 compared to $0.1 million for the three months ended June 30, 2024. This was due to an increase in foreign currency losses resulting from the significant weakening of the U.S. Dollar in the second quarter of 2025.

Current wording

Other income (expense), net. Other expense, net was $1.0 million for the three months ended September 30, 2025 compared to other income, net of $0.3 million for the three months ended September 30, 2024. This increase was attributable to foreign currency losses arising from the persistent weakness of the U.S. Dollar in the third quarter of 2025.

Previous wording

Provision for income taxes. Income tax expense was $1.8 million for the three months ended June 30, 2025, relative to a pre-tax loss of $1.1 million, compared to income tax expense of $2.8 million for the three months ended June 30, 2024, relative to a pre-tax loss of $5.4 million. Consistent with 2024, we expect the U.S. to be in a pre-tax loss position without benefit for the full year 2025, resulting in an elevated effective tax rate.

Current wording

Provision for income taxes. Income tax expense was $2.6 million for the three months ended September 30, 2025, relative to a pre-tax loss of $5.8 million, compared to income tax expense of $2.5 million for the three months ended September 30, 2024, relative to a pre-tax loss of $0.2 million. Consistent with 2024, we expect the U.S. to be in a pre-tax loss position without benefit for the full year 2025, resulting in an elevated effective tax rate.

Previous wording

Net sales. Net sales for the six months ended June 30, 2025 were $190.0 million compared to $182.4 million for the six months ended June 30, 2024. Net sales by channel were as follows:

Current wording

Net sales. Net sales for the nine months ended September 30, 2025 were $280.5 million compared to $284.4 million for the nine months ended September 30, 2024. Net sales by channel were as follows:

Previous wording

Net sales in connected home were $65.8 million for the six months ended June 30, 2025 compared to $47.5 million for the six months ended June 30, 2024. This growth is driven primarily by shipments to large climate control and home automation customers relating to projects won over the past couple of years.

Current wording

Net sales in connected home were $95.6 million for the nine months ended September 30, 2025 compared to $73.8 million for the nine months ended September 30, 2024. This growth is driven primarily by shipments to large climate control and home automation customers relating to projects won over the past couple of years.

Previous wording

Gross profit. Gross profit for the three months ended June 30, 2025 was $29.2 million compared to $26.0 million for the three months ended June 30, 2024. Gross profit as a percentage of sales increased to 29.9% for the three months ended June 30, 2025 from 28.7% for the three months ended June 30, 2024. A stronger U.S. Dollar versus the functional currencies at our manufacturing facilities in Vietnam and Mexico coupled by a weaker U.S. Dollar compared to the Euro and British Pound resulted in a 100 basis point improvement to our gross margin rate. Operational efficiencies, primarily in our Vietnam facility, offset partially by unfavorable sales mix, yielded an additional 20 basis points of rate improvement.

Current wording

Gross profit. Gross profit for the nine months ended September 30, 2025 was $80.4 million compared to $82.7 million for the nine months ended September 30, 2024. Gross profit as a percentage of sales decreased to 28.7% for the nine months ended September 30, 2025 from 29.1% for the nine months ended September 30, 2024. The decline in gross margin primarily reflects a one-time impairment charge of approximately $1.2 million related to machinery and equipment that will no longer be utilized following the planned closure of our Mexico facility by the end of 2025. This charge reduced the gross margin rate by approximately 40 basis points. In addition, an unfavorable sales mix contributed an additional 80 basis point decline in gross margin during the period. These pressures were partially offset by favorable foreign exchange impacts driven by a stronger U.S. Dollar relative to the Mexican Peso and Vietnamese Dong and a weaker U.S. Dollar relative to the Euro and British Pound, which together provided approximately 90 basis points of margin improvement.

Previous wording

R&D expenses. R&D expenses decreased to $14.2 million for the six months ended June 30, 2025 from $15.3 million for the six months ended June 30, 2024 due primarily to headcount reductions.

Current wording

R&D expenses. R&D expenses decreased to $20.9 million for the nine months ended September 30, 2025 from $22.7 million for the nine months ended September 30, 2024 attributable to reductions in payroll and related personnel expenses following headcount optimization actions.

Previous wording

Interest income (expense), net. Interest expense, net decreased to $0.7 million for the six months ended June 30, 2025 from $1.8 million for the six months ended June 30, 2024, as a result of a lower average loan balance and lower interest rates.

Current wording

Interest income (expense), net. Interest expense, net decreased to $1.0 million for the nine months ended September 30, 2025 from $2.7 million for the nine months ended September 30, 2024, as a result of a lower average loan balance and lower interest rates.

Previous wording

Other income (expense), net. Other expense, net was $1.7 million for the six months ended June 30, 2025 compared to $0.2 million for the six months ended June 30, 2024. This was due to an increase in foreign currency losses resulting from the significant weakening of the U.S. Dollar in the second quarter of 2025.

Current wording

Other income (expense), net. Other expense, net was $2.7 million for the nine months ended September 30, 2025 compared to other income, net of $0.1 million for the nine months ended September 30, 2024. This increase was attributable to foreign currency losses arising from the persistent weakness of the U.S. Dollar in 2025.

Previous wording

Provision for income taxes. Income tax expense was $4.0 million for the six months ended June 30, 2025, relative to a pre-tax loss of $5.2 million, compared to income tax expense of $3.5 million for the six months ended June 30, 2024, relative to a pre-tax loss of $13.3 million. Consistent with 2024, we expect the U.S. to be in a pre-tax loss position without benefit for the full year 2025, resulting in an elevated effective tax rate.

Current wording

Provision for income taxes. Income tax expense was $6.6 million for the nine months ended September 30, 2025, relative to a pre-tax loss of $10.9 million, compared to income tax expense of $6.0 million for the nine months ended September 30, 2024, relative to a pre-tax loss of $13.5 million. Consistent with 2024, we expect the U.S. to be in a pre-tax loss position without benefit for the full year 2025, resulting in an elevated effective tax rate.

Previous wording

Cash and cash equivalents– On June 30, 2025, we had $1.9 million, $13.4 million, $4.1 million, $7.6 million and $7.3 million of cash and cash equivalents in North America, the PRC, Asia (excluding the PRC), Europe, and South America, respectively. We attempt to mitigate our exposure to liquidity, credit and other relevant risks by placing our cash and cash equivalents with financial institutions we believe are high quality.

Current wording

Cash and cash equivalents– On September 30, 2025, we had $2.7 million, $11.6 million, $4.4 million, $7.5 million and $5.3 million of cash and cash equivalents in North America, the PRC, Asia (excluding the PRC), Europe, and South America, respectively. We attempt to mitigate our exposure to liquidity, credit and other relevant risks by placing our cash and cash equivalents with financial institutions we believe are high quality.

Previous wording

The U.S. Credit Line has a maximum availability up to $75.0 million, subject to meeting certain financial conditions, including an accounts receivable coverage ratio ("AR Ratio"). This AR Ratio is calculated monthly and adjusts the current U.S. Credit Line total availability. At June 30, 2025, the U.S. Credit Line total availability was $53.6 million based upon the AR Ratio. At July 15, 2025, the U.S. Credit Line total availability was $57.1 million based upon the AR Ratio.

Current wording

The U.S. Credit Line has a maximum availability of up to $75.0 million, subject to meeting certain financial conditions, including an accounts receivable coverage ratio ("AR Ratio"). This AR Ratio is calculated monthly and adjusts the current U.S. Credit Line total availability. At September 30, 2025, the U.S. Credit Line total availability was $54.1 million based upon the AR Ratio. At October 23, 2025, the U.S. Credit Line total availability was $50.4 million based upon the AR Ratio.

Previous wording

The U.S. Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. Amounts available for borrowing under the U.S. Credit Line are reduced by the balance of any outstanding letters of credit, of which there were none at June 30, 2025. At June 30, 2025, we had an outstanding balance of $19.0 million on our U.S. Credit Line and $34.6 million of availability.

Current wording

The U.S. Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. Amounts available for borrowing under the U.S. Credit Line are reduced by the balance of any outstanding letters of credit, of which there were $0.5 million at September 30, 2025. At September 30, 2025, we had no outstanding balance on our U.S. Credit Line and $53.6 million of availability.

Previous wording

Our subsidiary, Gemstar Technology (Yangzhou) Co. Ltd. ("GTY"), has a Line of Credit Agreement ("Line of Credit Agreement") with the Bank of China, which provides for a revolving line of credit ("China Credit Line" and, together with the U.S. Credit Line, "Credit Lines"). As a continuation of the agreement, on July 30, 2025, we executed an amendment to the Line of Credit Agreement, which extends the term of the China Credit Line to July 16, 2026. We expect to renew our China Credit

Current wording

Our subsidiary, Gemstar Technology (Yangzhou) Co. Ltd. ("GTY"), has a Line of Credit Agreement ("Line of Credit Agreement") with the Bank of China, which provides for a revolving line of credit ("China Credit Line" and, together with the U.S. Credit Line, "Credit Lines"). As a continuation of the agreement, on July 30, 2025, we executed an amendment to the Line of Credit Agreement, which extends the term of the China Credit Line to July 16, 2026. We expect to renew our China Credit Line prior to its expiration; however, no assurance can be given that future financing will be available or, if available, that we will be offered terms satisfactory to us.

Previous wording

At June 30, 2025, the China Credit Line had a maximum availability up to RMB 80.0 million (approximately $11.2 million), subject to meeting certain financial conditions. At July 30, 2025, as part of the executed amendment, the China Credit Line maximum availability increased to RMB 130.0 million (approximately $18.1 million).

Current wording

At September 30, 2025, the China Credit Line had a maximum availability of up to RMB 130.0 million (approximately $18.3 million), subject to meeting certain financial conditions.

Previous wording

The China Credit Line may be used for working capital purposes. Amounts available for borrowing under the China Credit Line are reduced by the balance of any outstanding letters of credit, of which there were none at June 30, 2025. At June 30, 2025, we had an outstanding balance of RMB 80.0 million (approximately $11.2 million) on our China Credit Line and no remaining availability.

Current wording

The China Credit Line may be used for working capital purposes. Amounts available for borrowing under the China Credit Line are reduced by the balance of any outstanding letters of credit, of which there were none at September 30, 2025. At September 30, 2025, we had an outstanding balance of RMB 130.0 million (approximately $18.3 million) on our China Credit Line and no remaining availability.

Previous wording

Net cash provided by operating activities was $17.7 million during the six months ended June 30, 2025 compared to net cash provided by operating activities of $2.7 million during the six months ended June 30, 2024. Net loss was $9.2 million for the six months ended June 30, 2025 compared to net loss of $16.8 million for the six months ended June 30, 2024. Depreciation and amortization was $7.6 million for the six months ended June 30, 2025 compared to $9.1 million for the six months ended June 30, 2024, resulting from fewer purchases of property, plant and equipment over recent years, commensurate with production volume declines. Inventories decreased by $1.7 million during the six months ended June 30, 2025 compared to an increase of $0.9 million during the six months ended June 30, 2024. The decrease in inventories is primarily the result of improved inventory management. A decrease in accounts receivable and contract assets caused mainly by a decrease in sales outstanding resulted in cash inflows of $23.3 million and $13.1 million during the six months ended June 30, 2025 and June 30, 2024, respectively. Days sales outstanding were 75 days at June 30, 2025 compared to 91 days at June 30, 2024. A decrease in accounts payable and accrued liabilities caused mainly by a decrease in inventory purchases and timing of payments throughout the quarter resulted in cash outflows of $15.4 million and $5.5 million during the six months ended June 30, 2025 and June 30, 2024, respectively. A decrease in prepaid expenses and other assets caused mainly by the release of the deposit associated with our litigation with Tongshun Company resulted in cash inflows of $3.7 million during the six months ended June 30, 2025 compared to cash outflows of $1.6 million during the six months ended June 30, 2024.

Current wording

Net cash provided by operating activities was $27.8 million during the nine months ended September 30, 2025 compared to $8.3 million during the nine months ended September 30, 2024. The improvement in operating cash flows primarily reflects changes in working capital, particularly in accounts receivable and contract assets, as well as improved inventory management. Net loss was $17.5 million for the nine months ended September 30, 2025, compared to net loss of $19.5 million in the prior-year period. Depreciation and amortization expense was $11.1 million during the nine months ended September 30, 2025 compared to $13.5 million during the nine months ended September 30, 2024, primarily due to lower capital expenditures in recent years, consistent with the decline in production volumes. Inventories decreased by $1.4 million during the nine months ended September 30, 2025, compared to an increase of $0.5 million during the same period in 2024, reflecting improved inventory management practices. A decrease in accounts receivable and contract assets, mainly due to lower sales outstanding, resulted in cash inflows of $38.9 million in 2025 compared to $5.4 million in 2024. Days sales outstanding improved to 72 days at September 30, 2025, from 91 days at September 30, 2024. A decrease in accounts payable and accrued liabilities, primarily driven by lower inventory purchases and timing of payments, resulted in cash outflows of $22.2 million during the nine months ended September 30, 2025, compared to $0.1 million in the prior-year period. Additionally, a decrease in prepaid expenses and other assets, primarily related to the release of a deposit associated with our litigation with Tongshun Company, generated cash inflows of $5.7 million in 2025 compared to $0.8 million in 2024.

Previous wording

Net cash used for investing activities during the six months ended June 30, 2025 was $4.0 million, of which $2.5 million, $2.3 million and $1.5 million was used for the purchase of Blue Chip Swap securities, capital expenditures and the development of patents, respectively. Offsetting these amounts was $2.3 million received upon the sale of Blue Chip Swap securities. Net cash used for investing activities during the six months ended June 30, 2024 was $5.0 million, of which $2.7 million and $2.3 million was used for capital expenditures and the development of patents, respectively.

Current wording

Net cash used for investing activities during the nine months ended September 30, 2025 was $5.7 million, of which $2.5 million, $3.1 million and $2.4 million was used for the purchase of Blue Chip Swap securities, capital expenditures and the development of patents, respectively. Offsetting these amounts was $2.3 million received upon the sale of Blue Chip Swap securities. Net cash used for investing activities during the nine months ended September 30, 2024 was $6.7 million, of which $3.5 million and $3.2 million was used for capital expenditures and the development of patents, respectively.

Previous wording

Future cash flows used for investing activities are largely dependent on the timing and amount of capital expenditures and the development of patents, respectively. We estimate that we will incur between $5.0 million and $7.0 million during the remainder of 2025.

Current wording

Future cash flows used for investing activities are largely dependent on the timing and amount of capital expenditures and the development of patents, respectively. We estimate that we will incur between $2.0 million and $3.0 million during the remainder of 2025.

Previous wording

Net cash used for financing activities was $7.7 million during the six months ended June 30, 2025 compared to $15.8 million during the six months ended June 30, 2024. The primary financing activities during the six months ended June 30, 2025 and 2024 were borrowings and repayments on our Credit Lines and repurchases of shares of our common stock. Net repayments on our Credit Lines were $7.0 million during the six months ended June 30, 2025 compared to $14.0 million during the six months ended June 30, 2024. During the six months ended June 30, 2025, we repurchased 101,000 shares of our common stock at a cost of $0.7 million compared to our repurchase of 195,000 shares at a cost of $1.8 million during the six months ended June 30, 2024.

Current wording

Net cash used for financing activities was $19.8 million during the nine months ended September 30, 2025 compared to $17.1 million during the nine months ended September 30, 2024. The primary financing activities during the nine months ended September 30, 2025 and 2024 were borrowings and repayments on our Credit Lines and repurchases of shares of our common stock. Net repayments on our Credit Lines were $19.0 million during the nine months ended September 30, 2025 compared to $15.2 million during the nine months ended September 30, 2024. During the nine months ended September 30, 2025, we repurchased 107,000 shares of our common stock at a cost of $0.8 million compared to our repurchase of 200,552 shares at a cost of $1.9 million during the nine months ended September 30, 2024.