Moelis & Co

Previous wording

As of June 30, 2026, we served our clients globally with 1,016 advisory bankers. We generate revenues primarily from providing advisory services on transactions that are subject to individually negotiated engagement letters which set forth our fees. We generally generate fees at key transaction milestones, such as closing, the timing of which is outside of our control. As a result, revenues and net income in any period may not be indicative of full year results or the results of any other period and may vary significantly from year to year and quarter to quarter. The performance of our business depends on the ability of our professionals to build relationships with clients over many years by providing trusted advice and exceptional transaction execution.

Current wording

As of September 30, 2026, we served our clients globally with 1,121 advisory bankers. We generate revenues primarily from providing advisory services on transactions that are subject to individually negotiated engagement letters which set forth our fees. We generally generate fees at key transaction milestones, such as closing, the timing of which is outside of our control. As a result, revenues and net income in any period may not be indicative of full year results or the results of any other period and may vary significantly from year to year and quarter to quarter. The performance of our business depends on the ability of our professionals to build relationships with clients over many years by providing trusted advice and exceptional transaction execution.

Previous wording

Economic and global financial conditions can materially affect our operational and financial performance. See “Risk Factors” in Part II. Other Information of this Form 10-Q and in our Form 10-K for a discussion of some of the factors that can affect our performance. The M&A market data for announced and completed transactions during the three and six months ended June 30, 2026 and 2025, referenced throughout this Form 10-Q was obtained from LSEG - Financial Technology & Data (formerly known as Refinitiv) as of July 7, 2026 and July 7, 2025, respectively.

Current wording

Economic and global financial conditions can materially affect our operational and financial performance. See “Risk Factors” in Part II. Other Information of this Form 10-Q and in our Form 10-K for a discussion of some of the factors that can affect our performance. The M&A market data for announced and completed transactions during the three and nine months ended September 30, 2026 and 2025, referenced throughout this Form 10-Q was obtained from LSEG - Financial Technology & Data (formerly known as Refinitiv) as of October 7, 2026 and October 6, 2025, respectively.

Previous wording

For the first six months of 2026, we earned GAAP revenues of $729.2 million compared with $672.0 million earned during the same period in 2025. This represents an increase of 9% compared to a 13% increase in the number of global completed M&A transactions greater than $100 million in the same period.

Current wording

For the first nine months of 2026, we earned GAAP revenues of $1,154.7 million compared with $1,028.9 million earned during the same period in 2025. This represents an increase of 12% compared to a 10% increase in the number of global completed M&A transactions greater than $100 million in the same period.

Previous wording

The following is a discussion of our results of operations for the three and six months ended June 30, 2026 and 2025.

Current wording

The following is a discussion of our results of operations for the three and nine months ended September 30, 2026 and 2025.

Previous wording

We earn substantially all of our revenues from advisory engagements, and, in many cases, we are not paid until the completion of an underlying transaction. The vast majority of our advisory revenues are recognized over time, although the recognition of our transaction fees are constrained until the engagement is substantially complete.

Current wording

We earn substantially all of our revenues from advisory engagements, and, in many cases, we are not paid until the completion of an underlying transaction. The vast majority of our advisory revenues are recognized over time, although the recognition of our transaction fees is constrained until the engagement is substantially complete.

Previous wording

Revenues were $409.4 million for the three months ended June 30, 2026 as compared with $365.4 million for the same period in 2025, representing an increase of 12%. The increase in revenues is primarily attributable to an increase in average fees earned per completed transaction, as compared with the prior year period.

Current wording

Revenues were $425.6 million for the three months ended September 30, 2026 as compared with $356.9 million for the same period in 2025, representing an increase of 19%. The increase in revenues is primarily attributable to an increase in average fees earned per completed transaction, as compared with the prior year period.

Previous wording

For the three months ended June 30, 2026 and 2025, we earned revenues from 144 clients and 136 clients, respectively, and the number of clients that paid fees equal to or greater than $1 million was 67 clients and 60 clients, respectively.

Current wording

For the three months ended September 30, 2026 and 2025, we earned revenues from 124 clients and 155 clients, respectively, and the number of clients that paid fees equal to or greater than $1 million was 65 clients and 72 clients, respectively.

Previous wording

Revenues were $729.2 million for the six months ended June 30, 2026 as compared with $672.0 million for the same period in 2025, representing an increase of 9%. The increase in revenues is primarily attributable to an increase in average fees earned per completed transaction, as compared with the prior year period.

Current wording

Revenues were $1,154.7 million for the nine months ended September 30, 2026 as compared with $1,028.9 million for the same period in 2025, representing an increase of 12%. The increase in revenues is primarily attributable to an increase in average fees earned per completed transaction, as compared with the prior year period.

Previous wording

For the six months ended June 30, 2026 and 2025, we earned revenues from 218 clients and 220 clients, respectively, and the number of clients that paid fees equal to or greater than $1 million was 121 clients and 117 clients, respectively.

Current wording

For the nine months ended September 30, 2026 and 2025, we earned revenues from 280 clients and 290 clients, respectively, and the number of clients that paid fees equal to or greater than $1 million was 187 clients and 181 clients, respectively.

Previous wording

Operating expenses were $615.8 million for the six months ended June 30, 2026 and represented 84% of revenues, compared with $574.4 million for the same period in 2025 which represented 85% of revenues. The increase in operating expenses was attributable to both increased compensation and benefits and non-compensation expenses, as compared with the prior year period.

Current wording

The increase in operating expenses was attributable to both increased compensation and benefits and non-compensation expenses, as compared with the prior year period.

Previous wording

Operating expenses were $336.6 million for the three months ended June 30, 2026 and represented 82% of revenues, compared with $304.7 million for the same period in 2025 which represented 83% of revenues. The increase in operating expenses was attributable to both increased compensation and benefits and non-compensation expenses, as compared with the prior year period.

Current wording

Operating expenses were $959.5 million for the nine months ended September 30, 2026 and represented 83% of revenues, compared with $883.0 million for the same period in 2025 which represented 86% of revenues. The increase in operating expenses was attributable to both increased compensation and benefits and non-compensation expenses, as compared with the prior year period.

Previous wording

For the three months ended June 30, 2026, compensation related expenses of $269.4 million represented 66% of revenues, compared with $252.1 million which represented 69% of revenues in the prior year period. The increase in compensation and benefits is primarily attributable to higher headcount, as compared to the prior year period. As a percentage of revenues, compensation related expenses decreased as compared to the prior year period primarily due to greater revenues.

Current wording

For the three months ended September 30, 2026, compensation related expenses of $282.4 million represented 66% of revenues, compared with $255.4 million which represented 72% of revenues in the prior year period. The increase in compensation and benefits is primarily attributable to higher headcount, as compared to the prior year period. As a percentage of revenues, compensation related expenses decreased as compared to the prior year period primarily due to greater revenues.

Previous wording

For the six months ended June 30, 2026, compensation related expenses of $479.8 million represented 66% of revenues, compared with $463.7 million which represented 69% of revenues in the prior year period. The increase in compensation and benefits is primarily attributable to higher headcount, as compared to the prior year period. As a percentage of revenues, compensation related expenses decreased as compared to the prior year period primarily due to greater revenues.

Current wording

For the nine months ended September 30, 2026, compensation related expenses of $762.2 million represented 66% of revenues, compared with $719.1 million which represented 70% of revenues in the prior year period. The increase in compensation and benefits is primarily attributable to higher headcount, as compared to the prior year period. As a percentage of revenues, compensation related expenses decreased as compared to the prior year period primarily due to greater revenues.

Previous wording

For the three months ended June 30, 2026, non‑compensation expenses of $67.2 million represented 16% of revenues, compared with $52.6 million which represented 14% of revenues in the prior year period. The increase in non-compensation expenses is primarily driven by occupancy and depreciation expenses related to new office space, deal-related travel expenses, professional fees associated with the public capital markets business, and other expenses related to business administration, as compared with the prior year period.

Current wording

For the three months ended September 30, 2026, non‑compensation expenses of $61.3 million represented 14% of revenues, compared with $53.2 million which represented 15% of revenues in the prior year period. The increase in non-compensation expenses is primarily driven by occupancy and depreciation expenses related to new office space, communication, technology and information services expenses, including investments related to AI, and increased business and client activity, including higher deal-related travel and client conferences, as compared with the prior year period.

Previous wording

For the six months ended June 30, 2026, non‑compensation expenses of $136.0 million represented 19% of revenues, compared with $110.8 million which represented 16% of revenues in the prior year period. The increase in non-compensation expenses is primarily driven by occupancy and depreciation expenses related to new office space, deal-related travel expenses, communication and technology expenses related to AI investment, and other expenses related to business administration, as compared with the prior year period.

Current wording

For the nine months ended September 30, 2026, non‑compensation expenses of $197.4 million represented 17% of revenues, compared with $163.9 million which represented 16% of revenues in the prior year period. The increase in non-compensation expenses is primarily driven by occupancy and depreciation expenses related to new office space, communication, technology and information services expenses, including investments related to AI, and increased business and client activity, including higher deal-related travel and client conferences, as compared with the prior year period.

Previous wording

For the three months ended June 30, 2026, other income and expenses was income of $2.5 million, primarily related to income and net gains on financial assets and the Company's share of MA Financial's results. For the prior year period, other income and expenses was income of $3.5 million, primarily related to $3.9 million in net gains and income on financial assets.

Current wording

For the three months ended September 30, 2026, other income and expenses was income of $8.8 million, primarily related to income and net gains on financial assets, income associated with the forfeiture or return of compensation by former employees, and the Company's share of MA Financial's results. For the prior year period, other income and expenses was income of $34.0 million, primarily related to a gain of $19.1 million from the sale of 5,000,000 shares of our investment in MA Financial, $6.5 million in income associated with the forfeiture or return of compensation by former employees, and $3.5 million in income from the Company's investment in MA Financial.

Previous wording

For the six months ended June 30, 2026, other income and expenses was income of $8.1 million, primarily related to income and net gains on financial assets and the Company's share of MA Financial's results. For the prior year period, other income and expenses was income of $9.7 million, primarily related to $8.2 million in net gains and income on financial assets and $1.5 million in the Company's share of earnings in MA Financial.

Current wording

For the nine months ended September 30, 2026, other income and expenses was income of $16.9 million, primarily related to income and net gains on financial assets, income associated with the forfeiture or return of compensation by former employees, and the Company's share of MA Financial's results. For the prior year period, other income and expenses was income of $43.7 million, primarily related to a gain of $19.1 million from the sale of 5,000,000 shares of our investment in MA Financial, $13.4 million in net gains and income on financial assets, $6.5 million in income associated with the forfeiture or return of compensation by former employees, and $5.1 million in income from the Company's investment in MA Financial.

Previous wording

The Company’s provisions for income taxes and effective tax rates were $20.2 million and 27% and $17.4 million and 27% for the three months ended June 30, 2026 and 2025, respectively. The income tax provisions for the aforementioned periods primarily reflect the Company’s allocable share of operating results from Group LP at the prevailing U.S. federal, state, and local corporate income tax rates and the effect of certain non-tax deductible items.

Current wording

The Company’s provisions for income taxes and effective tax rates were $24.1 million and 27% and $22.2 million and 27% for the three months ended September 30, 2026 and 2025, respectively. The income tax provisions for the aforementioned periods primarily reflect the Company’s allocable share of operating results from

Previous wording

The Company’s provisions for income taxes and effective tax rates were $24.0 million and 20% and $6.7 million and 6% for the six months ended June 30, 2026 and 2025, respectively. The income tax provisions for the aforementioned periods primarily reflect the Company’s allocable share of operating results from Group LP at the prevailing U.S. federal, state, and local corporate income tax rates and the effect of certain non-tax deductible items, offset by the effect of the excess tax benefit recognized in connection with the delivery of equity-based compensation at an appreciated price above the grant date price for such equity.

Current wording

The Company’s provisions for income taxes and effective tax rates were $48.1 million and 23% and $28.9 million and 15% for the nine months ended September 30, 2026 and 2025, respectively. The income tax provisions for the aforementioned periods primarily reflect the Company’s allocable share of operating results from Group LP at the prevailing U.S. federal, state, and local corporate income tax rates and the effect of certain non-tax deductible items, offset by the effect of the excess tax benefit recognized in connection with the delivery of equity-based compensation at an appreciated price above the grant date price for such equity.

Previous wording

We evaluate our cash needs on a regular basis in light of current market conditions. Cash and cash equivalents include all short‑term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase. As of June 30, 2026 and December 31, 2025, the Company had cash equivalents of $159.9 million and $427.8 million, respectively, invested primarily in U.S. and U.K. sovereign debt securities, money market funds, and certificates of deposit. Additionally, as of June 30, 2026 and December 31, 2025, the Company had cash of $47.9 million and $80.8 million, respectively, maintained in U.S. and non‑U.S. bank accounts, of which most bank account balances exceeded the U.S. Federal Deposit Insurance Corporation (“FDIC”) and U.K. Financial Services Compensation Scheme (“FSCS”) coverage limits.

Current wording

We evaluate our cash needs on a regular basis in light of current market conditions. Cash and cash equivalents include all short‑term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase. As of September 30, 2026 and December 31, 2025, the Company had cash equivalents of $102.7 million and $427.8 million, respectively, invested primarily in U.S. and U.K. sovereign debt securities, money market funds, and certificates of deposit. Additionally, as of September 30, 2026 and December 31, 2025, the Company had cash of $67.2 million and $80.8 million, respectively, maintained in U.S. and non‑U.S. bank accounts, of which most bank account balances exceeded the U.S. Federal Deposit Insurance Corporation (“FDIC”) and U.K. Financial Services Compensation Scheme (“FSCS”) coverage limits.

Previous wording

In addition to cash and cash equivalents, we hold sovereign debt securities, which are highly liquid instruments in active markets that are classified as investments on our condensed consolidated statements of financial condition as they have original maturities of three months or more from the date of purchase. As of June 30, 2026 and December 31, 2025, the Company held $273.4 million and $340.2 million of investments, respectively.

Current wording

In addition to cash and cash equivalents, we hold sovereign debt securities, which are highly liquid instruments in active markets that are classified as investments on our condensed consolidated statements of financial condition as they have original maturities of three months or more from the date of purchase. As of September 30, 2026 and December 31, 2025, the Company held $488.8 million and $340.2 million of investments, respectively.

Previous wording

Our liquidity is highly dependent upon cash receipts from clients which generally requires the successful completion of transactions. The timing of receivable collections typically occurs within 60 days of billing. As of June 30, 2026 and December 31, 2025 accounts receivable were $66.9 million and $82.2 million, respectively, net of allowances of $3.9 million and $2.1 million, respectively.

Current wording

Our liquidity is highly dependent upon cash receipts from clients which generally requires the successful completion of transactions. The timing of receivable collections typically occurs within 60 days of billing. As of September 30, 2026 and December 31, 2025 accounts receivable were $57.4 million and $82.2 million, respectively, net of allowances of $4.3 million and $2.1 million, respectively.

Previous wording

In addition, Moelis & Company LLC ("U.S. Broker Dealer") maintains a $45.0 million revolving credit facility agreement pre-approved by FINRA to provide additional regulatory capital as necessary. Under the facility, U.S. Broker Dealer may borrow capital until May 24, 2027, the end of the credit period, and must repay aggregate principal balances by the maturity date of May 24, 2028. The Company incurs a 0.25% per annum fee on the amount of the unused commitment. Borrowings on the facility bear interest equal to the Prime rate, payable quarterly in arrears on the last day of March, June, September, and December of each calendar year. U.S. Broker Dealer had no borrowings under the credit facility and the available committed credit under this facility was $45.0 million as of June 30, 2026.

Current wording

Broker Dealer may borrow capital until May 24, 2027, the end of the credit period, and must repay aggregate principal balances by the maturity date of May 24, 2028. The Company incurs a 0.25% per annum fee on the amount of the unused commitment. Borrowings on the facility bear interest equal to the Prime rate, payable quarterly in arrears on the last day of March, June, September, and December of each calendar year. U.S. Broker Dealer had no borrowings under the credit facility and the available committed credit under this facility was $45.0 million as of September 30, 2026.

Previous wording

The Board of Directors of Moelis & Company declared a regular quarterly dividend of $0.65 per share. The $0.65 per share will be paid on September 17, 2026 to Class A common stockholders of record on August 10, 2026. During the six months ended June 30, 2026 the Company paid aggregate dividends of $1.30 per share.

Current wording

The Board of Directors of Moelis & Company declared a regular quarterly dividend of $0.65 per share. The $0.65 per share will be paid on December 17, 2026 to Class A common stockholders of record on November 16, 2026. During the nine months ended September 30, 2026 the Company paid aggregate dividends of $1.95 per share.

Previous wording

During the six months ended June 30, 2026 and 2025, the Company repurchased 2,274,404 and 186,889 shares, respectively, from its employees pursuant to the Company's share repurchase program and for the purpose of settling tax liabilities incurred upon delivery of equity-based compensation awards. In February 2026, the Board of Directors authorized the repurchase of up to $300.0 million of Class A common stock and/or Class A partnership units of Group LP with no expiration date. The dollar value of shares that may yet be purchased under the program was $226.2 million as of June 30, 2026.

Current wording

During the nine months ended September 30, 2026 and 2025, the Company repurchased 2,551,979 and 401,744 shares, respectively, pursuant to the Company's share repurchase program and from its employees for the purpose of settling tax liabilities incurred upon delivery of equity-based compensation awards. In February 2026, the Board of Directors authorized the repurchase of up to $300.0 million of Class A common stock and/or Class A partnership units of Group LP with no expiration date. The dollar value of shares that may yet be purchased under the program was $208.7 million as of September 30, 2026.

Previous wording

Cash, cash equivalents and restricted cash were $208.6 million at June 30, 2026, a decrease of $300.8 million from $509.4 million at December 31, 2025. Operating activities resulted in a net outflow of $49.3 million primarily attributable to cash operating outflows, including discretionary bonus paid during the period, net of cash collected from clients. Investing activities resulted in a net inflow of $35.6 million primarily attributable to net sales of investments. Financing activities resulted in a net outflow of $285.7 million primarily related to treasury stock purchases and the payment of dividends and tax distributions.

Current wording

Cash, cash equivalents and restricted cash were $170.9 million at September 30, 2026, a decrease of $338.5 million from $509.4 million at December 31, 2025. Operating activities resulted in a net inflow of $202.4 million primarily attributable to cash collected from clients, net of cash operating outflows, including discretionary bonus paid during the period. Investing activities resulted in a net outflow of $181.5 million primarily attributable to net purchases of investments. Financing activities resulted in a net outflow of $358.6 million primarily related to the payment of dividends and tax distributions and treasury stock purchases.

Previous wording

Cash, cash equivalents and restricted cash were $222.5 million at June 30, 2025, a decrease of $190.7 million from $413.2 million at December 31, 2024. Operating activities resulted in a net inflow of $38.7 million primarily attributable to cash collected from clients, net of cash operating outflows, including discretionary bonuses paid during the period. Investing activities resulted in a net outflow of $113.1 million primarily attributable to purchases of investments. Financing activities resulted in a net outflow of $117.8 million primarily related to the payment of dividends and tax distributions and treasury stock purchases.

Current wording

Cash, cash equivalents and restricted cash were $282.4 million at September 30, 2025, a decrease of $130.8 million from $413.2 million at December 31, 2024. Operating activities resulted in a net inflow of $237.6 million primarily attributable to cash collected from clients, net of cash operating outflows, including discretionary bonus paid during the period. Investing activities resulted in a net outflow of $186.2 million primarily attributable to net purchases of investments. Financing activities resulted in a net outflow of $184.4 million primarily related to the payment of dividends and tax distributions and treasury stock purchases.

Previous wording

As of June 30, 2026, the Company has a total payable of $269.6 million due pursuant to the tax receivable agreement in the condensed consolidated financial statements and of this amount an estimated $38.6 million will be due in less than one year. These amounts represent management’s best estimate of the amounts currently expected to be owed under the tax receivable agreement. Payments made under the tax receivable agreement are required to be made within 225 days of the filing of our tax returns. We generally expect to receive the tax savings prior to making the cash payments to the eligible selling holders of Group

Current wording

As of September 30, 2026, the Company has a total payable of $270.0 million due pursuant to the tax receivable agreement in the condensed consolidated financial statements and of this amount an estimated $39.0 million will be due in less than one year. These amounts represent management’s best estimate of the amounts currently expected to be owed under the tax receivable agreement. Payments made under the tax receivable agreement are required to be made within 225 days of the filing of our tax returns. We generally expect to receive the tax savings prior to making the cash payments to the eligible selling holders of Group LP partnership units. The Company made a payment of $32.2 million pursuant to the tax receivable agreement during the first nine months of 2026.

Previous wording

The Company is exposed to the risk that the exchange rate of the U.S. dollar relative to other currencies may have an adverse effect on the reported value of the Company’s non‑U.S. dollar denominated assets and liabilities. Non‑functional currency‑related transaction gains and losses are recorded in the condensed consolidated statements of operations. In addition, the reported amounts of our revenues and other income from investments may be affected by movements in the rate of exchange between the pound sterling, euro, Brazilian real, Hong Kong dollar, Israeli shekel, rupee, Australian dollar, Saudi riyal and the U.S. dollar, in which our financial statements are denominated. Other comprehensive income (loss) in the condensed consolidated statements of comprehensive income was a gain of less than $0.1 million and a gain of $1.3 million for the three months ended June 30, 2026 and 2025, respectively, and losses of $0.2 million and gains of $2.6 million for the six months ended June 30, 2026 and 2025, respectively, primarily from the fluctuations of foreign currencies. We have not entered into any transactions to hedge our exposure to these foreign currency fluctuations through the use of derivative instruments or other methods.

Current wording

The Company is exposed to the risk that the exchange rate of the U.S. dollar relative to other currencies may have an adverse effect on the reported value of the Company’s non‑U.S. dollar denominated assets and liabilities. Non‑functional currency‑related transaction gains and losses are recorded in the condensed consolidated statements of operations. In addition, the reported amounts of our revenues and other income from investments may be affected by movements in the rate of exchange between the pound sterling, euro, Brazilian real, Hong Kong dollar, Israeli shekel, rupee, Australian dollar, Saudi riyal and the U.S. dollar, in which our financial statements are denominated. Other comprehensive income (loss) in the condensed consolidated statements of comprehensive income were losses of $0.7 million and $1.5 million for the three months ended September 30, 2026 and 2025, respectively, and a loss of $0.9 million and a gain of $1.1 million for the nine months ended September 30, 2026 and 2025, respectively, primarily from the fluctuations of foreign currencies. We have not entered into any transactions to hedge our exposure to these foreign currency fluctuations through the use of derivative instruments or other methods.

Previous wording

The Company recognizes the vast majority of its advisory services revenue over time, including reimbursements for certain out-of-pocket expenses, when or as our performance obligations are fulfilled and collection is reasonably assured. The determination of whether revenues are recognized over time or at a point in time depends upon the type of service being provided and the related performance obligations. We identify the performance obligations in our engagement letters and determine which services are distinct (i.e. separately identifiable and the client could benefit from such service on its own). We allocate the transaction price to the respective performance obligations by estimating the amount of consideration we expect in exchange for providing each service. Both the identification of performance obligations and the allocation of transaction price to the respective performance obligations requires significant judgment.

Current wording

The Company recognizes the vast majority of its advisory services revenue over time, including reimbursements for certain out-of-pocket expenses, when or as our performance obligations are fulfilled and collection is reasonably assured. The determination of whether revenues are recognized over time or at a point in time depends upon the type of service being provided and the related performance obligations. We identify the performance obligations in our engagement letters and determine which services are distinct (i.e. separately identifiable and the client could benefit from such service on its own). We allocate the transaction price to the respective performance obligations by estimating the amount of consideration we expect in exchange for providing each service. Both the identification of performance obligations and the allocation of transaction price to the respective performance obligations require significant judgment.

Previous wording

ASC 740 prescribes a two-step approach for the recognition and measurement of tax benefits associated with the positions taken or expected to be taken in a tax return that affect amounts reported in the financial statements. The Company has reviewed and will continue to review the conclusions reached regarding uncertain tax positions, which may be subject to review and adjustment at a later date based on ongoing analyses of tax laws, regulations and interpretations thereof. For the three and six months ended June 30, 2026 and 2025, no unrecognized tax benefit was recorded. To the extent that the Company’s assessment of the conclusions reached regarding uncertain tax positions changes as a result of the evaluation of new information, such change in estimate will be recorded in the period in which such determination is made. The Company reports income tax related interest and penalties relating to uncertain tax positions, if applicable, as a component of income tax expense. For the three and six months ended June 30, 2026 and 2025, no such amounts were recorded.

Current wording

ASC 740 prescribes a two-step approach for the recognition and measurement of tax benefits associated with the positions taken or expected to be taken in a tax return that affect amounts reported in the financial statements. The Company has reviewed and will continue to review the conclusions reached regarding uncertain tax positions, which may be subject to review and adjustment at a later date based on ongoing analyses of tax laws, regulations and interpretations thereof. For the three and nine months ended September 30, 2026 and 2025, no unrecognized tax benefit was recorded. To the extent that the Company’s assessment of the conclusions reached regarding uncertain tax positions changes as a result of the evaluation of new information, such change in estimate will be recorded in the period in which such determination is made. The Company reports income tax related interest and penalties relating to uncertain tax positions, if applicable, as a component of income tax expense. For the three and nine months ended September 30, 2026 and 2025, no such amounts were recorded.