Primerica, Inc.

Previous wording

Corporate and Other Distributed Products. The Corporate and Other Distributed Products segment consists primarily of revenues and expenses related to other distributed products, including closed blocks of various insurance products underwritten by NBLIC, prepaid legal services, mortgage originations, and other financial products. These products, except for closed blocks of various insurance products underwritten by NBLIC, are distributed pursuant to distribution arrangements with third-party companies through the independent sales force. Net investment income earned on cash, cash equivalents, and our invested asset portfolio is recorded in the Corporate and Other Distributed Products segment. Interest expense incurred by the Company is attributed to the Corporate and Other Distributed Products segment.

Current wording

Corporate and Other Distributed Products. The Corporate and Other Distributed Products segment includes net investment income earned on cash, cash equivalents, and our invested asset portfolio. This segment also includes revenues and expenses related to other distributed products, including closed blocks of various insurance products underwritten by NBLIC, prepaid legal services, mortgage originations, and other financial products. These products, except for closed blocks of various insurance products underwritten by NBLIC, are distributed pursuant to distribution arrangements with third-party companies through the independent sales force. Interest expense incurred by the Company is attributed to the Corporate and Other Distributed Products segment.

Previous wording

The relative strength and stability of the financial markets and economies in the United States and Canada affect our growth and profitability. Our business is, and we expect will continue to be, influenced by a number of industry-wide and product-specific trends and conditions. Economic conditions, including unemployment levels and consumer confidence, influence investment and spending decisions by middle-income consumers, who are generally our primary clients. These conditions and factors also impact prospective recruits’ perceptions of the business opportunity that becoming an independent sales representative offers, which can drive or dampen recruiting. Consumer spending and borrowing levels affect how consumers evaluate their savings and debt management plans. In addition, equity market returns and interest rates impact consumer demand for the investment and savings products we distribute. Our customers’ perception of the strength of the capital markets may also influence their decisions to invest in the investment and savings products we distribute.

Current wording

The relative strength and stability of the financial markets and economies in the United States and Canada affect our growth and profitability. Our business is, and we expect will continue to be, influenced by a number of industry-wide and product-specific trends and conditions. Economic conditions, including unemployment levels, inflation, and consumer confidence, influence investment and spending decisions by middle-income consumers, who are generally our primary clients. These conditions and factors also impact prospective recruits’ perceptions of the business opportunity that becoming an independent sales representative offers. Consumer spending and borrowing levels affect how consumers evaluate their savings and debt management plans. In addition, equity market returns and interest rates impact consumer demand for the investment and savings products we distribute. Our customers’ perception of the strength of the capital markets may also influence their decisions to invest in the investment and savings products we distribute. We believe the economic conditions impacting middle-income households underscores their increasing need for our financial education, products and services to assist them in reaching their long-term goals of becoming financially independent.

Previous wording

The cumulative impact of inflation in recent years has led to an elevated cost of living for middle-income families. We believe that cost of living pressures have adversely impacted persistency for term life insurance policies. Policy lapse rates of term life insurance products remained above long-term historical levels, although policy lapse rates have recently trended modestly lower. In addition, recent economic uncertainty in 2025 has had an impact on consumer behavior. The continuation of these cost of living pressures as well as economic uncertainty could adversely impact demand for our products.

Current wording

The cumulative impact of inflation in recent years has led to an elevated cost of living for middle-income families. We believe that cost of living pressures have adversely impacted persistency for term life insurance policies. Policy lapse rates of term life insurance products remained above long-term historical levels but have been steady in the aggregate of all policy durations compared to the prior year period. In addition, continued economic uncertainty in 2025 has had an impact on consumer behavior. The continuation of these cost of living pressures as well as economic uncertainty could adversely impact demand for our products.

Previous wording

The number of new recruits decreased during the three months ended March 31, 2025 compared to the same period in 2024. The decrease is partly driven by the comparison to the 2024 period, which included exceptionally strong activity, and partly due to headwinds from economic uncertainty in 2025.

Current wording

The number of new recruits decreased during the three and six months ended June 30, 2025 compared to the same periods in 2024. The decreases are partly driven by the comparison to the 2024 periods, which included exceptionally strong activity in 2024. Recruiting activity in 2025 was comparatively slower than 2024 possibly due to headwinds from economic and government policy uncertainty.

Previous wording

New life-licensed independent sales representatives slightly decreased during the three months ended March 31, 2025 compared to the same period in 2024, likely due to the same factors as the decline in number of new recruits. Despite the year-over-year decline, licensing activity in the first quarter of 2025 remained strong compared to historical first quarter levels.

Current wording

New life-licensed independent sales representatives slightly decreased during the three and six months ended June 30, 2025 compared to the same periods in 2024, likely due to the same factors as the decline in number of new recruits. Despite the year-over-year decline, licensing activity in 2025 has remained strong compared to historical levels.

Previous wording

The number of life-licensed independent sales representatives increased modestly as of March 31, 2025 compared to December 31, 2024 as agent licensing activity slightly outpaced agent non-renewals during the first quarter of 2025.

Current wording

The number of life-licensed independent sales representatives increased modestly as of June 30, 2025 compared to March 31, 2025 and December 31, 2024 as agent licensing activity slightly outpaced agent non-renewals during the three and six months ended June 30, 2025.

Previous wording

The average number of life-licensed independent sales representatives increased for the three months ended March 31, 2025 from the same period in 2024 as a result of strong recruiting and licensing activity in 2024 that drove growth in the size of the independent sales force.

Current wording

The average number of life-licensed independent sales representatives increased for the three and six months ended June 30, 2025 from the same periods in 2024 as a result of the cumulative impact of strong recruiting and licensing activity throughout 2024 that drove higher independent sales force counts in 2025.

Previous wording

Productivity in the three months ended March 31, 2025, measured by the average monthly rate of new policies issued per life-licensed independent sales representative, was slightly below our historical range and a slight decrease from the same period in 2024. Economic uncertainties in 2025 along with the continued cost of living pressures appear to be contributing factors to the decline in productivity.

Current wording

Productivity in the three and six months ended June 30, 2025, measured by the average monthly rate of new policies issued per life-licensed independent sales representative, was at the low end and slightly below our historical range, respectively, and decreased from the same periods in 2024. Economic uncertainties in 2025 along with the continued cost of living pressures appear to be contributing factors to the reduced productivity.

Previous wording

The face amount of term life insurance policies in-force increased for the three months ended March 31, 2025 as the face amount issued continued to exceed the face amount terminated. Issued face amount was generally consistent during the two periods. Policy terminations increased year-over-year but were relatively consistent when measured as a percentage of beginning face amount in-force. A stronger U.S. dollar in relation to the Canadian dollar unfavorably impacted the translated face amount in-force in the 2024 period and had an insignificant impact in the 2025 period.

Current wording

The face amount of term life insurance policies in-force increased for the three and six months ended June 30, 2025 as the face amount issued continued to exceed the face amount terminated. Issued face amount decreased during the three and six months ended June 30, 2025 primarily due to the decrease in the number of new policies issued as discussed above. Policy terminations decreased year-over-year largely due to the timing impact of state insurance department-issued policy lapse restrictions in 2024. During 2025, the strengthening of the Canadian dollar relative to the U.S. dollar contributed to the increases in the face amount in-force, whereas a stronger U.S. dollar in relation to the Canadian dollar unfavorably impacted the translated face amount in-force in the 2024 periods.

Previous wording

Product sales. Investment and savings product sales increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to continued positive investor sentiment that followed strong equity market performance in 2023 and 2024. In particular, variable annuity product sales continued to lead the growth in sales as the guarantees offered by these products became more appealing to investors given strong equity market performance and elevated interest rates leading up to 2025. The increase in product sales for managed investments resulted from continued strength in investor demand for these products as well as the expansion of investment strategies offered on our platform.

Current wording

Product sales. Investment and savings product sales increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to sustained positive investor sentiment that followed strong equity market performance in 2023 and 2024 and continued during the second quarter of 2025. In particular, variable annuity product sales continued to lead the growth in sales as the guarantees offered by these products became more appealing to investors given strong equity market performance, expanded product offerings, and elevated interest rates leading up to and continuing through the first half of 2025. The increase in product sales for managed investments resulted from continued strength in investor demand for these products as well as the expansion of investment strategies offered on our platform.

Previous wording

Average client asset values. Average client asset values were higher for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily driven by the cumulative effect of strong market performance and net client inflows in 2024.

Current wording

Average client asset values. Average client asset values were higher for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily driven by the cumulative effect of strong market performance and net client inflows in 2024 and 2025.

Previous wording

Rollforward of client asset values. Ending client asset values decreased during the three months ended March 31, 2025 compared to an increase during the three months ended March 31, 2024 primarily due to the difference in equity market performance during each respective period.

Current wording

Rollforward of client asset values. Client asset values increased during the six months ended June 30, 2025 and the six months ended June 30, 2024 primarily due to the same factors as described in the three month comparison.

Previous wording

Total revenues. Total revenues increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to increases in commissions and fees earned in our Investment and Savings Products segment, net premiums earned in our Term Life Insurance segment, and net investment income earned in our Corporate and Other Distributed Products segment. These movements are further discussed in detail in the Segment Results sections below.

Current wording

Total revenues. Total revenues increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to increases in commissions and fees earned in our Investment and Savings Products segment, net premiums earned in our Term Life Insurance segment, and net investment income earned in our Corporate and Other Distributed Products segment. This increase was partially offset by investment losses realized in our Corporate and Other Distributed Products segment in the 2025 period and a one-time $50.0 million gain recognized within Other, net revenue in our Corporate and Other Distributed Products segment in the prior year period. These movements are further discussed in detail in the Segment Results sections below.

Previous wording

Total benefits and expenses. Total benefits and expenses increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 largely due to higher sales commissions and other operating expenses in our Investment and Savings Products segment. Also contributing to the year-over-year increase are higher benefits and claims (net of remeasurement (gain) loss) and amortization of DAC in our Term Life Insurance segment. These movements are discussed in further detail in the Segment Results section below.

Current wording

Total benefits and expenses. Total benefits and expenses increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 largely due to higher sales commissions and other operating expenses in our Investment and Savings Products segment. Also contributing to the year-over-year increase are higher amortization of DAC, benefits and claims, and insurance expenses in our Term Life Insurance segment. These increases were partially offset by lower insurance commissions and higher future policy benefits remeasurement gain in our Term Life Insurance segment. These movements are discussed in further detail in the Segment Results section below.

Previous wording

Income taxes. The effective income tax rate of 23.6% for the three months ended March 31, 2025 was largely consistent with the comparable effective income tax rate from continuing operations of 23.3% for the three months ended March 31, 2024.

Current wording

Income taxes. The effective income tax rate of 23.8% for the six months ended June 30, 2025 was largely consistent with the comparable effective income tax rate from continuing operations of 23.3% for the six months ended June 30, 2024. The 2024 period effective tax rate included the same largely offsetting items as described in the three month comparison.

Previous wording

Net premiums. Direct premiums increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 largely due to the layering effect of new policy sales that contributed to growth in the in-force book of business. This increase was partially offset by a slight increase in ceded premiums, which includes $6.7 million in higher non-level YRT reinsurance ceded premiums as business not subject to the IPO coinsurance transactions ages, reduced by $5.9 million in lower coinsurance ceded premiums due to the run-off of business subject to the IPO coinsurance transactions.

Current wording

Net premiums. Direct premiums increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 largely due to the layering effect of new policy sales that contributed to growth in the in-force book of business. This increase was partially offset by a slight increase in ceded premiums, which includes $9.9 million in higher non-level YRT reinsurance ceded premiums as business not subject to the IPO coinsurance transactions ages, and was reduced by $3.9 million in lower coinsurance ceded premiums due to the run-off of business subject to the IPO coinsurance transactions.

Previous wording

Benefits and claims. Benefits and claims increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Direct benefits and claims increased with the growth in the business. Year-over-year claims incurred during the 2025 period were higher compared to the same period in 2024 and in line with the growth in the in-force book of business.

Current wording

Benefits and claims. Benefits and claims increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Direct benefits and claims increased with the growth in the business. Year-over-year claims incurred during the 2025 period were higher compared to the same period in 2024 but were lower than our LFPB assumptions.

Previous wording

Future policy benefits remeasurement (gain) loss. Future policy benefits remeasurement gain increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 and represents differences in experience variances that occurred in each period. The remeasurement adjustment recognized in each period was not significant relative to the total benefits and claims recognized in each period. Refer to Note 11 (Future Policy Benefits) to our unaudited condensed consolidated financial statements included elsewhere in this report for further details.

Current wording

Future policy benefits remeasurement (gain) loss. Future policy benefits remeasurement gain increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and represents differences in experience variances that occurred in each period, primarily from better mortality and lower reserves benefiting from elevated lapse experience versus our future policy benefit reserve assumptions. The remeasurement gain recognized in each period was not a significant portion of the total benefits and claims recognized in each period. Refer to Note 11 (Future Policy Benefits) to our unaudited condensed consolidated financial statements included elsewhere in this report for further details.

Previous wording

Amortization of DAC. The amortization of DAC increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to continued growth in the in-force book of business.

Current wording

Amortization of DAC. Amortization of DAC increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to continued growth in the in-force book of business.

Previous wording

Insurance expenses. Insurance expenses increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 due to higher costs resulting primarily from growth in the business.

Current wording

Insurance expenses. Insurance expenses increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 due to higher costs resulting primarily from growth in the in-force business.

Previous wording

Insurance commissions. Insurance commissions decreased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to a small change in the portion of commissions deferred that was made beginning in the second quarter of 2024.

Current wording

Insurance commissions. Insurance commissions decreased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to the same factors as described in the three month comparison as well as a small change in the dollar value of commissions deferred that was made beginning in the second quarter of 2024.

Previous wording

Commissions and fees. Commissions and fees increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily driven by higher sales-based and asset-based revenues. The increase in sales-based revenue was largely the result of higher product sales for variable annuities and U.S. mutual funds. Higher asset-based revenues were driven by an increase in average client assets in the 2025 period compared to the same period in 2024 as well as a higher mix of assets under management that earn higher asset-based commissions, namely managed investments and Canadian mutual funds sold under the principal distributor model.

Current wording

Commissions and fees. Commissions and fees increased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily driven by higher asset-based and sales-based revenues. Higher asset-based revenues were driven by an increase in average client assets in the 2025 period compared to the same period in 2024 as well as a higher mix of assets under management that earn higher asset-based commissions, namely managed investments and Canadian mutual funds sold under the principal distributor model. The increase in sales-based revenue was largely the result of continued growth in product sales for variable annuities.

Previous wording

Sales commissions. The increase in sales-based commissions for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was generally in line with the increases in sales-based revenues. The increase in asset-based commissions for the three months ended March 31, 2025 compared to the same period in 2024 was relatively consistent with the movement in asset-based revenues.

Current wording

Sales commissions. The increases in sales-based and asset-based commissions for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 were generally in line with the increases in sales-based revenues and asset-based revenues, respectively.

Previous wording

Other operating expenses. Other operating expenses for the three months ended March 31, 2025 increased compared to the three months ended March 31, 2024 primarily due to higher growth-related costs and investments in technology.

Current wording

Other operating expenses. Other operating expenses for the three months ended June 30, 2025 increased compared to the three months ended June 30, 2024 largely due to higher variable growth-related costs and continued investments in technology and infrastructure.

Previous wording

Total revenues. Total revenues increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to higher net investment income. Net investment income increased primarily due to growth of the invested asset portfolio. Investment income net of investment expenses includes interest earned on our held-to-maturity asset, which is offset by interest expense on the surplus note (“Surplus Note”), thereby eliminating any impact on net investment income. Amounts recognized for each line item will remain offsetting and will fluctuate from period to period along with the principal amounts of the held-to-maturity asset and the Surplus Note based on the balance of reserves being contractually supported under a redundant reserve financing transaction used by Vidalia Re, Inc. (“Vidalia Re”). For more information on the Surplus Note, see Note 12 (Debt) to our consolidated financial statements in our 2024 Annual Report and Note 5 (Investments) to our unaudited condensed consolidated financial statements included elsewhere in this report.

Current wording

Total revenues. Total revenues decreased during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 in part due to $2.0 million of investment losses in the 2025 period related to the tender of bonds from a certain issuer that allowed us to reinvest the proceeds at current market interest rates rather than accept replacement bonds from the issuer at less favorable terms. Also contributing to the decrease was a $50.0 million gain recognized in the prior year period within Other, net revenue related to payments received under a Representation and Warranty insurance policy as discussed further in Note 4 (Segment Information) to our unaudited condensed consolidated financial statements included elsewhere in this report. The decrease was partially offset by higher net investment income. Net investment income increased primarily due to continued growth of the invested asset portfolio. Investment income net of investment expenses includes interest earned on our held-to-maturity asset, which is offset by interest expense on the surplus note (“Surplus Note”), thereby eliminating any impact on net investment income. Amounts recognized for each line item will remain offsetting and will fluctuate from period to period along with the principal amounts of the held-to-maturity asset and the Surplus Note based on the balance of reserves being contractually supported under a redundant reserve financing transaction used by Vidalia Re, Inc. (“Vidalia Re”). For more information on the Surplus Note, see Note 12 (Debt) to our consolidated financial statements in our 2024 Annual Report and Note 5 (Investments) to our unaudited condensed consolidated financial statements included elsewhere in this report.

Previous wording

Dividends and other payments to the Parent Company from its subsidiaries are our principal sources of cash. The amount of dividends paid by the subsidiaries is dependent on their capital needs to fund future growth and applicable regulatory restrictions. The primary uses of funds by the Parent Company include the payments of stockholder dividends, interest on note payable, general operating expenses, and income taxes, as well as repurchases of shares of our common stock outstanding. As of March 31, 2025, the Parent Company had cash and invested assets of $407.0 million.

Current wording

Dividends and other payments to the Parent Company from its subsidiaries are our principal sources of cash. The amount of dividends paid by the subsidiaries is dependent on their capital needs to fund future growth and applicable regulatory restrictions. The primary uses of funds by the Parent Company include the payments of stockholder dividends, interest on note payable, general operating expenses, and income taxes, as well as repurchases of shares of our common stock outstanding. As of June 30, 2025, the Parent Company had cash and invested assets of $371.0 million.

Previous wording

Operating Activities. Cash flows provided by operating activities decreased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to timing differences for income tax remittances, maturities of trading securities, and payments of operating expenses, partially offset by higher cash inflows from Term Life Insurance segment net premiums and Investment and Savings Products segment income.

Current wording

Operating Activities. Cash flows provided by operating activities decreased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to timing differences for the settlement of financial instruments recorded as cash equivalents and maturities of trading securities in the 2024 period, partially offset by higher cash inflows from Term Life Insurance segment net premiums and Investment and Savings Products segment income in the 2025 period.

Previous wording

Investing Activities. Cash flows used in investing activities increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to fluctuations in the timing of maturities and reinvestments of debt securities held in our available-for-sale investment portfolio as well as an overall increase in the size of the portfolio given the increase in our Term Life insurance in force.

Current wording

Investing Activities. Cash flows used in investing activities increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to the impact of the $50.0 million received under a Representation and Warranty insurance policy in the 2024 period, partially offset by fluctuations in the timing of maturities and reinvestments of debt securities held in our available-for-sale investment portfolio.

Previous wording

Financing Activities. Cash flows used in financing activities increased during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the increase in the size of our share repurchase program and higher per share stockholder dividend payments.

Current wording

Financing Activities. Cash flows used in financing activities increased during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to higher per share stockholder dividend payments.

Previous wording

Note Payable. The Company has $600.0 million of publicly-traded Senior Notes outstanding issued at a price of 99.55% with an annual interest rate of 2.80%, payable semi-annually in arrears on May 19 and November 19. The Senior Notes are scheduled to mature on November 19, 2031. We were in compliance with the covenants of the Senior Notes as of March 31, 2025. No events of default occurred during the three months ended March 31, 2025.

Current wording

Note Payable. The Company has $600.0 million of publicly-traded Senior Notes outstanding issued at a price of 99.55% with an annual interest rate of 2.80%, payable semi-annually in arrears on May 19 and November 19. The Senior Notes are scheduled to mature on November 19, 2031. We were in compliance with the covenants of the Senior Notes as of June 30, 2025. No events of default occurred during the three and six months ended June 30, 2025.

Previous wording

Credit Facility Agreement. We maintain an unsecured $200.0 million Revolving Credit Facility with a syndicate of commercial banks that has a scheduled termination date of June 22, 2026. Amounts outstanding under the Revolving Credit Facility bear interest at a periodic rate equal to the Secured Overnight Financing Rate (“SOFR”) rate loan or the base rate, plus in either case an applicable margin. The Revolving Credit Facility contains language that allows for the Company and the lenders to agree on a comparable or successor reference rate in the event SOFR is no longer available. The Revolving Credit Facility also permits the issuance of letters of credit. The applicable margins are based on our debt rating with such margins for SOFR rate loans and letters of credit ranging from 1.000% to 1.625% per annum and for base rate loans ranging from 0.000% to 0.625% per annum. Under the Revolving Credit Facility, we incur a commitment fee that is payable quarterly in arrears and is determined by our debt rating. This commitment fee ranges from 0.100% to 0.225% per annum of the aggregate $200.0 million commitment of the lenders under the Revolving Credit Facility. As of March 31, 2025, no amounts were outstanding under the Revolving Credit Facility and we were in compliance with its covenants. Furthermore, no events of default occurred under the Revolving Credit Facility during the three months ended March 31, 2025.

Current wording

Credit Facility Agreement. We maintain an unsecured $200.0 million Revolving Credit Facility with a syndicate of commercial banks that has a scheduled termination date of June 22, 2026. Amounts outstanding under the Revolving Credit Facility bear interest at a periodic rate equal to the Secured Overnight Financing Rate (“SOFR”) rate loan or the base rate, plus in either case an applicable margin. The Revolving Credit Facility contains language that allows for the Company and the lenders to agree on a comparable or successor reference rate in the event SOFR is no longer available. The Revolving Credit Facility also permits the issuance of letters of credit. The applicable margins are based on our debt rating with such margins for SOFR rate loans and letters of credit ranging from 1.000% to 1.625% per annum and for base rate loans ranging from 0.000% to 0.625% per annum. Under the Revolving Credit Facility, we incur a commitment fee that is payable quarterly in arrears and is determined by our debt rating. This commitment fee ranges from 0.100% to 0.225% per annum of the aggregate $200.0 million commitment of the lenders under the Revolving Credit Facility. As of June 30, 2025, no amounts were outstanding under the Revolving Credit Facility and we were in compliance with its covenants. Furthermore, no events of default occurred under the Revolving Credit Facility during the three and six months ended June 30, 2025.

Previous wording

Risks Related to Legislative and Regulatory Changes

Current wording

Risks Related to Legislative and Regulatory Changes and Government Policy Uncertainty

Previous wording

We are subject to various federal, state and provincial laws and regulations in the U.S. and Canada, changes in which may require us to alter our business practices and could materially adversely affect our business.

Current wording

We are subject to various federal, state and provincial laws and regulations in the U.S. and Canada, as well as executive branch actions, orders and policies, judicial rulings and decisions by public officials, any of which may require us to alter our business practices and could materially adversely affect our business.