NOODLES & Co

1. Business and Summary of Significant Accounting Policies

Business

Noodles & Company (the “Company” or “Noodles & Company”), a Delaware corporation, develops and operates fast-casual restaurants that serve globally-inspired noodle and pasta dishes, soups, salads and appetizers. As of December 30, 2025, the Company had 340 company-owned restaurants and 83 franchise restaurants in 31 states. The Company operates its business asone operating and reportable segment.

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All intercompany balances and transactions are eliminated in consolidation.

Fiscal Year

The Company operates on a 52- or 53-week fiscal year ending on the Tuesday closest to December 31. Fiscal years 2025, 2024 and 2023 which ended on December 30, 2025, December 31, 2024 and January 2, 2024, respectively, each contained 52 weeks.

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Reverse Stock Split

On February 4, 2026, the Company's Board of Directors approved a reverse stock split of the Company's issued and outstanding Class A common stock, par value $0.01 per share. The reverse stock split was effectuated on February 18, 2026 at a 1-for-8 ratio (the “Reverse Stock Split”). All issued and outstanding common stock and per share amounts contained in this Report have been adjusted retroactively to reflect the change in capital structure for all periods presented. Refer to Note 18: Subsequent Event for further discussion.

Cash and Cash Equivalents

The Company considers all highly liquid investment instruments with an initial maturity of three months or less when purchased to be cash equivalents. Amounts receivable from credit card processors are converted to cash shortly after the related sales transaction and are considered to be cash equivalents because they are both short-term and highly liquid in nature. Amounts receivable from credit card processors as of December 30, 2025 and December 31, 2024, which are included in cash and cash equivalents, were $0.9 million and $0.8 million, respectively. Additionally, the Company records “book overdrafts” when outstanding checks at year end are in excess of cash and cash equivalents. Such book overdrafts are recorded within accounts payable in the accompanying Consolidated Balance Sheets and within operating activities in the accompanying Consolidated Statements of Cash Flows.

Accounts Receivable

Accounts receivable consists primarily of franchise receivables and vendor rebates, as well as insurance receivables and other miscellaneous receivables arising from the normal course of business. The Company evaluates the collectability of its accounts receivable in accordance with Accounting Standards Update (“ASU”)ASC 326, Financial Instruments - Credit Losses. Based on its evaluation of historical experience, current conditions, and reasonable and supportable forecasts, the Company determined that all amounts were deemed collectible. Accordingly, no allowance for credit losses was recorded as of December 30, 2025 or December 31, 2024. In 2023, the Company recognized $0.5 million of bad debt expense.

Inventories

Inventories consist of food, beverages, supplies and smallwares, and are stated at the lower of cost (first-in, first-out method) or net realizable value. Smallwares inventory, which consist of the plates, silverware and cooking utensils used in the restaurants, are frequently replaced and are therefore considered current assets. Replacement costs of smallwares inventory are recorded as other restaurant operating costs in the Consolidated Statements of Operations and are expensed as incurred. As of December 30, 2025 and December 31, 2024, smallwares inventory of $6.4 million and$6.7 million, respectively, was included in the accompanying Consolidated Balance Sheets.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation. Expenditures for major renewals and improvements are capitalized, while expenditures for minor replacements and maintenance and repairs are expensed as incurred. Upon retirement or disposal of assets, the accounts are relieved of cost and accumulated depreciation and the related gain or loss is reflected in earnings. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful life or the lease term, which generally includes option periods that are reasonably certain to be exercised. Depreciation and amortization expense on property and equipment, including assets recorded as finance leases, was $27.0 million, $29.0 million and $26.7 million in 2025, 2024 and 2023, respectively.

The estimated useful lives for property and equipment are:

The Company capitalizes internal payroll and payroll-related costs directly related to the successful acquisition, development, design and construction of its new restaurants. Capitalized internal costs were $0.1 million, $0.4 million and $0.5 million in 2025, 2024 and 2023, respectively. Interest incurred on funds used to construct company-owned restaurants is capitalized and amortized over the estimated useful life of the related assets. Capitalized interest totaled $0.1 million, $0.4 million and $0.9 million in 2025, 2024 and 2023, respectively.

Goodwill

Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired. Goodwill is not subject to amortization, but instead is tested for impairment at least annually (or more often, if necessary) as of the first day of the Company’s fourth fiscal quarter.

Goodwill is evaluated at the level of the Company’s single operating segment, which also represents the Company’s only reporting unit. In 2025, 2024 and 2023, the Company performed a qualitative impairment assessment. Under this approach, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. If after performing the qualitative assessment, the Company determines there is less than a 50 percent chance that the fair value of its reporting unit is less than its carrying amount, then performing the quantitative test is unnecessary. Based on the qualitative assessment performed, management does not believe that it is more likely than not that the Company’s goodwill has been impaired.

Based on the Company’s analysis, no impairment charges were recognized on goodwill in 2025, 2024 or 2023.

Intangibles, net

Intangibles, net consists primarily of reacquired franchise rights and trademarks. The Company amortizes the reacquired franchise rights over the remaining contractual terms of the reacquired franchise area development agreements at the time of acquisition, which ranged from approximately less thanone year toseven years as of December 30, 2025. Trademark rights are considered indefinite-lived intangible assets, the carrying value of which are analyzed for impairment at least annually (or more often, if necessary).

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment on a regular basis, in addition to whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. If the assets are determined to be impaired, the amount of impairment recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Estimates of future cash flows are based on the Company’s experience and knowledge of local operations. During 2025, 2024 and 2023, the Company recorded impairment charges of certain long-lived assets which are included in restaurant impairments, closure costs and asset disposals in the Consolidated Statements of Operations. See Note 6, Restaurant Impairments, Closure Costs and Asset Disposals. Fair value of the restaurant assets was determined using Level 3 inputs (as described in Note 5, Fair Value Measurements).

Debt Issuance Costs

Certain fees and costs incurred to obtain long-term financing are capitalized and included as a reduction in the net carrying value of long-term debt, net of accumulated amortization. These costs are amortized to interest expense over the term of the related debt. When debt is extinguished prior to its maturity date, the amortization of the remaining unamortized debt issuance costs, or pro-rata portion thereof, is charged to loss on extinguishment of debt. Debt issuance costs of $1.4 million and $2.3 million, net of accumulated amortization, as of December 30, 2025 and December 31, 2024, respectively, are included as a reduction of long-term debt in the Consolidated Balance Sheets.

Self-Insurance Programs

The Company self-insures for health, workers’ compensation, general liability and property damage. Predetermined loss limits have been arranged with insurance companies to limit the Company’s per occurrence cash outlay. Estimated costs to settle reported claims and incurred but unreported claims for health and workers’ compensation self-insured plans are recorded in accrued payroll and benefits and for general liability and property damage in accrued expenses and other current liabilities in the Consolidated Balance Sheets.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company’s cash balances may exceed federally insured limits. Credit card transactions at the Company’s restaurants are processed by one service provider. Concentration of credit risk related to accounts receivable are limited, as the Company’s receivables are primarily amounts due from franchisees and the Company directly pulls the amounts owed from the franchisees bank accounts.

Revenue Recognition

Revenue consists of sales from restaurant operations and franchise royalties and fees. Revenue from the operation of company-owned restaurants is recognized when sales occur. The Company reports revenue net of sales and use taxes collected from customers and remitted to governmental taxing authorities. Delivery services are fulfilled by third-party service providers. In some cases, the Company makes delivery through its website or mobile app. In other cases, the Company makes delivery sales through a non-company owned channel, such as the delivery partner's website or mobile app. With respect to sales made through the Company website or mobile app, the Company controls the delivery services and generally recognizes revenue, including delivery fees, when the delivery partner transfers food to the guest. For those sales, the Company receives payment directly from the guest at the time of sale. With respect to sale not through the Company website or mobile app, the Company generally recognizes revenue, excluding delivery fees collected by the delivery parter, when control of the food is transferred to the guest. The Company receives payment from the delivery partner subsequent to the transfer of food and the payment terms are short-term in nature.

Gift Cards

The Company sells gift cards which do not have an expiration date, and it does not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards when the gift card is redeemed by the customer or the Company determines the likelihood of the gift card being redeemed by the customer is remote (“gift card breakage”). The determination of the gift card breakage rate is based upon Company-specific historical redemption patterns. The Company has determined that approxi mately 15% of gift cards will not be redeemed, which is recognized ratably over the estimated redemption period of the gift card, approximately 24 months.

Loyalty Program

The Company operates the Noodles Rewards program, which is primarily a spend-based loyalty program. With each purchase, Noodles Rewards members earn loyalty points that can be redeemed for rewards, including free products. Using an estimate of the value of reward redemptions, we defer revenue associated with points earned, net of estimated points that will not be redeemed. Points generally expire after six months. Revenue is recognized in a future period when the reward points are redeemed.

Franchise Royalties

Royalties from franchise restaurants are based on a percentage of restaurant revenues and are recognized in the period the related franchised restaurants’ sales occur. Development fees and franchise fees, portions of which are collected in advance, are nonrefundable. The Company has determined that the initial franchise services are not distinct from the continuing rights or services offered during the term of the franchise agreement and should be treated as a single performance obligation; therefore, such fees are recognized in income ratably over the term of the related franchise agreement or recognized upon the termination of the agreement between the Company and the franchisee.

As of December 30, 2025, December 31, 2024 and January 2, 2024, there were 83,92 and 90 franchise restaurants in operation, respectively. Franchisees opened three restaurants in 2024. Nine franchise restaurants closed in 2025, seven franchise restaurants closed in 2024 andthree closed in 2023. In addition, there weresix company-owned locations acquired by a franchisee in 2024.

Sublease Income

The Company records sublease income related to leases for which the Company remains obligated. The Company has entered into transactions to sell company-owned restaurants to franchisees. The lease agreements for those restaurants were assigned to the franchisee, but in some instances, the Company was not relieved of its primary obligations under the main lease, therefore these leases are treated as subleases. The lease income on these locations has been recorded in franchising royalties and fees, and other and the offsetting lease expense has been recorded in restaurant impairments, closure costs and asset disposals in the Consolidated Statement of Operations.

Pre-opening costs, including rent, wages, benefits and travel for the training and opening teams, food, beverage and other restaurant operating costs, are expensed as incurred prior to a restaurant opening for business.

Advertising and Marketing Costs

Advertising and marketing costs are expensed as incurred and were $14.8 million, $12.7 million and $10.8 million in 2025, 2024 and 2023, respectively. These costs are included in other restaurant operating costs, general and administrative expenses and pre-opening costs based on the nature of the advertising and marketing costs incurred.

Rent

Rent expense for the Company’s leases, which generally have escalating rentals over the term of the lease, is recorded on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce the right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term. Some of the Company’s leases include rent escalations based on inflation indexes and fair market value adjustments. Certain leases contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales in excess of stipulated amounts. Lease expense associated with rent escalation and contingent rental provisions is not material and is included within operating lease cost. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As most of the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

Provision (Benefit) for Income Taxes

Provision (benefit) for income taxes is accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those deferred amounts are expected to be recovered or settled. Valuation allowances are recorded for deferred tax assets that more likely than not will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s policy is to recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in provision (benefit) for income taxes in the Consolidated Statements of Operations.

Stock-Based Compensation Expense

Stock-based compensation expense is measured at the grant date based upon the estimated fair value of the portion of the award that is ultimately expected to vest and is recognized as expense over the applicable vesting period of the award generally using the straight-line method (see Note 9, Stock-Based Compensation for more information).

Recently Adopted Accounting Pronouncement

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company adopted ASU No. 2023-09 during the year ended December 30, 2025. See Note 7, Income Taxes for further detail.

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-03, "Disaggregation of Income Statement Expenses (Subtopic 220-40)." The ASU requires public entities to disaggregate, in a tabular presentation, certain income statement expenses into different categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and may be applied retrospectively. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements and related disclosures.

2. Supplemental Financial Information

Accounts receivable consist of the following (in thousands):

Prepaid expenses and other assets consist of the following (in thousands):

Property and equipment, net, consist of the following (in thousands):

Accrued payroll and benefits consist of the following (in thousands):

Accrued expenses and other current liabilities consist of the following (in thousands):

3. Goodwill and Intangible Assets

The Company hadno goodwill impairment charges in 2025, 2024 or 2023. As of December 30, 2025 and December 31, 2024, the goodwill balance remained at $7.2 million.

The following table presents intangible assets subject to amortization as of December 30, 2025 and December 31, 2024, (in thousands):

The estimated aggregate future amortization expense as of December 30, 2025 is as follows, (in thousands):

No impairment charges were recorded related to non-amortized intangible assets in 2025, 2024 or 2023.

4. Long-Term Debt

Credit Facility

On July 27, 2022, the Company entered into the Amended and Restated Credit Agreement (as further amended, restated, extended, supplemented, modified and otherwise in effect from time to time, the “A&R Credit Agreement”), with each other Loan Party (as defined in the A&R Credit Agreement) party thereto, each lender from time to time party thereto, and U.S. Bank National Association, as Administrative Agent, L/C Issuer and Swing Line Lender (each as defined in the A&R Credit Agreement). The A&R Credit Agreement matures on July 27, 2027. Among other things, the A&R Credit Agreement: (i) increased the credit facility from $100.0 million to $125.0 million; (ii) eliminated the term loan and principal amortization components of the credit facility; (iii) removed the Company’s capital expenditure covenant; (iv) enhanced flexibility for certain covenants and restrictions; and (v) lowered the spread of the Company’s cost of borrowing and transitioned from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) plus a margin of 1.50% to 2.50% per annum, based upon the consolidated total lease-adjusted leverage ratio. The A&R Credit Agreement is secured by a pledge of stock of substantially all of the Company’s subsidiaries and a lien on substantially all of the personal property assets of the Company and its subsidiaries. The A&R Credit Agreement was subsequently amended on December 21, 2023.

On October 29, 2024, the Company further amended its A&R Credit Agreement, by entering into that certain Second Amendment to Amended and Restated Credit Agreement (the “Second Amendment”). Among the modifications, the Second Amendment: (i) increased the maximum applicable rate ranges with respect to certain loans, (ii) conditioned the use of the general restricted payment basket on satisfaction of a Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) of less than or equal to 4.00 to 1.00 and a Consolidated Fixed Charge Coverage Ratio (as defined in the A&R Credit Agreement) of greater than or equal to 1.25 to 1.00, (iii) restricted entry into new lease agreements so long as the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(a) of the A&R Credit Agreement is greater than or equal to 4.50 to 1.00, (iv) increased the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(a) of the A&R Credit Agreement to be no greater than (x)5.50 to 1.00 for the fiscal quarter ending on October 1, 2024 until and including the last day of the fiscal quarter ending September 30, 2025 and (y) stepping down to (1)5.25 to 1.00 for the fiscal quarter ending December 30, 2025, (2)5.00 to 1.00 for the fiscal quarters ending March 31, 2026 and June 30, 2026, (3)4.75 to 1.00 for the fiscal quarters ending September 29, 2026 and December 29, 2026 and (4)4.50 to 1.00 for the fiscal quarter ended March 30, 2027 and thereafter and (v) amended the Consolidated Fixed Charge Coverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(b) of the A&R Credit Agreement to be no less than (x)1.05 to 1.00 for the fiscal quarter ending on October 1, 2024 until and including the last day of the fiscal quarter ending September 30, 2025 and (y) stepping up to (1)1.15 to 1.00 for the fiscal quarters ending December 30, 2025 and March 31, 2026 and (2)1.25 to 1.00 for the fiscal quarter ending June 30, 2026 and thereafter.

As of December 30, 2025, the Company had $110.2 million of indebtedness (excluding $1.4 million of unamortized debt issuance costs) and $3.0 million of letters of credit outstanding under the A&R Credit Agreement.

Availability of borrowings under the A&R Credit Agreement is conditioned upon the Company’s compliance with the terms of the A&R Credit Agreement, including the financial covenants and other customary affirmative and negative covenants, such as limitations on additional borrowings, acquisitions, dividend payments and lease commitments, and customary representations and warranties. As of December 30, 2025, the Company was in compliance with all of its debt covenants.

The Company expects to meet all applicable financial covenants in its A&R Credit Agreement through at least the next four fiscal quarters. However, there can be no assurance that the Company will meet such financial covenants. If such covenants are not met, the Company would be required to seek a waiver or amendment from the banks participating in the credit facility. There can be no assurance that such waiver or amendment would be granted, which could have a material adverse impact on the Company’s liquidity.

The Company also maintains outstanding letters of credit to secure obligations under its workers’ compensation program and certain lease obligations. As of December 30, 2025, the Company was in compliance with all of its debt covenants.

The Company’s revolver, which had a balance of $109.8 million as of December 30, 2025, bore interest at rates between 7.58% to 10.25% during 2025. The Company’s swingline, which had a balance of $0.4 million as of December 30, 2025, bore interest at rates between 9.50% and 10.25% in 2025. The Company recorded interest expense of $10.9 million, $8.4 million and $4.8 million for 2025, 2024 and 2023, respectively, of which $0.9 million, $0.6 million and $0.4 million was amortization of debt issuance costs in each of the respective years.

5. Fair Value Measurements

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current assets and liabilities approximate fair values due to their short-term nature. The carrying amounts of borrowings approximate fair value as the line of credit and borrowings vary with market interest rates and negotiated terms and conditions are consistent with current market rates. The fair value of the Company’s revolving line of credit borrowings is measured using Level 2 inputs.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets recognized or disclosed at fair value in the consolidated financial statements on a non-recurring basis include items such as leasehold improvements, property and equipment, operating lease assets, goodwill and other intangible assets. These assets are measured at fair value if determined to be impaired or when acquired. Adjustments to the fair value of assets measured at fair value on a non-recurring basis as of December 30, 2025 and December 31, 2024, are discussed in Note 6, Restaurant Impairments, Closure Costs and Asset Disposals.

The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation.

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2—Quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3—Prices or valuation techniques which require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

6. Restaurant Impairments, Closure Costs and Asset Disposals

The following table presents restaurant impairments, closure costs and asset disposals for fiscal years 2025, 2024 and 2023 (in thousands):

(1)Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed.

Restaurant Impairments

Impairment is based on management’s current assessment of the expected future cash flows of its company-owned restaurants based on recent results and other specific market factors. Impairment expense is a Level 3 fair value measure and is determined by comparing the carrying value of restaurant assets to the estimated fair market value of the restaurant assets at resale value.

The Company has identified a group of restaurants that the Company will seek to close on or before their next lease renewal dates, and are unlikely to recover the net book value of their assets. During 2025, the Company recorded fixed asset impairment on 25 restaurants and wrote down lease related assets on 16 restaurants. In 2024, the Company recognized an impairment charge related to the fixed assets on 16 restaurants and a write-down of its lease related assets onseven restaurants. In 2023, the Company impaired the fixed assets ontwo restaurants and the lease related assets onfour restaurants. Additionally, the Company wrote-off its lease related assets on 12 previously closed restaurants in 2025 andtwo previously closed restaurants in both of 2024 and 2023. All periods include ongoing equipment costs for restaurants previously impaired.

Closure Costs and Lease Remeasurements

Closure costs during 2025, 2024 and 2023 pertain to ongoing costs of restaurants that closed in previous years, as well as costs related to the closure of 33,13, andsix restaurants, respectively. These closure costs were offset by gains of $0.6 million in 2025, $0.6 million in 2024 and $0.2 million in 2023 resulting from lease asset remeasurements and the adjustments to liabilities as lease terminations occur. Closure costs can also include fees from real estate advisors and brokers related to terminations of the leases and charges resulting from final adjustments to liabilities as lease terminations occur.

Losses on Disposal of Assets and Other

All periods include asset disposals in the normal course of business and lease related costs and expenses that the Company is still obligated for. In 2024, the Company recognized a gain of $0.5 million from the sale ofsix company-owned restaurants to a franchisee (“DND Sale”). Losses on disposal of assets and other in 2023 were partially offset by $0.2 million gain on insurance proceeds from property damage.

Sublease Expense

The Company records sublease expense related to leases for which the Company remains obligated. In previous years, the Company has entered into transactions to sell company-owned restaurants to franchisees. The lease agreements for those restaurants were assigned to the franchisee, but in some instances, the Company was not relieved of its primary obligations under the lease, therefore these leases are treated as subleases. The lease income for these restaurants has been recorded in franchising royalties and fees, and other and the offsetting lease expense has been recorded in restaurant impairments, closure costs and asset disposals in the Consolidated Statement of Operations.

7. Income Taxes

The components of the provision (benefit) for income taxes are as follows for 2025, 2024 and 2023 (in thousands):

The reconciliation of the income tax (benefit) provision that would result from applying the federal statutory income tax rate to pre-tax income, as shown in the accompanying consolidated statements of operations, is presented below (in thousands) for 2024 and 2023 under the income tax disclosure guidance in effect for those periods. The reconciliation for the year ended December 30, 2025, prepared in accordance with ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, is presented separately below.

Effective in 2025, the Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on a prospective basis. As a result, the following table presents (in thousands) an expanded reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the year ended December 30, 2025, in accordance with the enhanced disclosure requirements of the new standard. The reconciliations for 2024 and 2023 above were prepared under the guidance in effect for those periods and have not been retrospectively adjusted. As the Company operates exclusively in the United States, certain reconciling items related to foreign jurisdictions required by ASU 2023-09 are not applicable and have been omitted.

*State taxes in Minnesota made up the majority (greater than 50 percent) of the tax effect in this category.

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, requires disclosure of cash income taxes paid disaggregated by federal, state, and foreign jurisdictions. The Company adopted the guidance prospectively in 2025; accordingly, cash income taxes paid by jurisdiction are presented below for the year ended December 30, 2025 only. Prior periods are not presented as the disclosure was not required for those periods.

As the Company operates exclusively in the United States, cash income taxes paid to foreign jurisdictions are not applicable. In addition, the Company maintains a full valuation allowance on its deferred tax assets and has significant net operating loss

(“NOL”) carryforwards, and as a result, no federal income taxes were paid during the year ended December 30, 2025. The Company also has significant state net operating loss carryforwards and state tax credit carryforwards, and as a result, state income taxes paid during the year were limited to minimum or franchise tax amounts. Total cash taxes paid to all state jurisdictions for the year ended December 30, 2025 was diminimus.

The Company’s total deferred tax assets and liabilities are as follows (in thousands):

Deferred income taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Deferred income tax liabilities and assets consist of the following (in thousands):

For the year ended December 30, 2025, the Company determined that it was appropriate to maintain a valuation allowance of $70.8 million against U.S. deferred tax assets due to uncertainty regarding the realizability of future tax benefits. The valuation allowance is recorded against net deferred tax assets, exclusive of indefinite-lived assets and liabilities. The Company will maintain the remaining valuation allowance until there is sufficient evidence to support a full or partial reversal. The reversal of a previously recorded valuation allowance will generally result in a benefit to the effective tax rate.

As of December 30, 2025 and December 31, 2024, NOL carry forwards for federal income tax purposes of approximately $197.0 million and $184.0 million, respectively, were available to offset future taxable income. Of these amounts, $106.8 million is available to offset future taxable income through 2038 and $90.2 million can be carried forward indefinitely, but can only offset 80% of future taxable income. The Internal Revenue Code Section 382 generally limits the utilization of NOLs when there is an ownership change. Prior to the utilization of NOLs in the future, the Company will determine whether there are any limitations under Section 382. If such a limitation exists, it is possible that a portion of the NOLs may not be available for use before expiration.

Uncertain tax positions are recognized if it is more likely than not that the Company will be able to sustain the tax position taken, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon resolution of the benefit. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions.

There wereno uncertain tax positions for the years ended December 30, 2025 or December 31, 2024. For federal and state income tax purposes, the Company’s 2022 through 2024 tax years remain open for examination by the authorities under the normal three year statute of limitations. Should the Company utilize any of its U.S. or state NOLs, the tax year to which the original loss relates will remain open to examination.

On July 4, 2025, the United States Congress enacted H.R.1, commonly known as the One Big Beautiful Bill Act, which introduces a wide range of tax reform measures. These include extensions and modifications of key provisions from the Tax Cuts and Jobs Act, as well as changes to rules allowing accelerated tax deductions for qualified property and research expenditures. The legislation includes multiple effective dates, with certain provisions taking effect in 2025 and others phased in through 2027. The net effect of the legislation did not have a material impact on the Company’s effective tax rate for the year ended December 30, 2025. We will continue to monitor forthcoming administrative guidance and regulatory developments that may further clarify the implementation of the provisions.

8. Stockholders’ Equity

Common Stock

The Company has 181,000,000 shares of stock authorized, consisting of 150,000,000 shares of Class A common stock, par value $0.01 per share;30,000,000 shares of Class B common stock, par value $0.01 and 1,000,000 shares of preferred stock, par value $0.01 per share. Preferred stock rights are determined by the Company’s Board of Directors when preferred shares are issued. The following summarizes the rights of common stock:

Voting—Shares of Class A common stock and Class B common stock are entitled to one vote per share in all voting matters, with the exception that Class B common stock does not vote on the election or removal of directors.

Conversion—Each share of Class B common stock is convertible, at the option of the holder, into one share of Class A common stock.

Dividends—Class A common stock and Class B common stock share equally if a dividend is declared or paid to either class, but they do not have rights to any special dividend.

Liquidation, Dissolution or Winding Up—Class A common stock and Class B common stock share equally in distributions in liquidation, dissolution or winding up of the corporation.

Share Repurchases

On July 26, 2023, the Company announced a share repurchase program (the “2023 Share Repurchase Program”) of up to $5.0 million of the Company’s Class A common stock. Under this program, the Company purchased shares of the Company's Class A common stock in the open market. The Company conducted any open market share repurchase activities in compliance with the safe harbor provisions of Rule 10b-18 of the Exchange Act. During 2023, the Company repurchased 216,494 (1,731,952 prior to the Reverse Stock Split) shares of its common stock for approximately $5.0 million in open market transactions at an average price of $22.88 ($2.86 prior to the Reverse Stock Split) per share. Share repurchases were accounted for under the retirement method and all repurchased shares were retired and cancelled. The excess of the purchase price over the par value of the shares was recorded as a reduction in additional paid-in capital. The 2023 Share Repurchase Program and the remaining de minimus balance was cancelled by the Company’s Board of Directors in the fourth quarter of 2023.

9. Stock-Based Compensation

In May of 2023, the Company’s Board of Directors adopted the 2023 Stock Incentive Plan, which was approved at the annual meeting of stockholders on May 16, 2023 (the “2023 Plan”). The 2023 Plan authorizes the grant of non-qualified stock options, incentive stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”) and incentive bonuses to employees, officers, non-employee directors and other service providers, as applicable. The Company’s 2013 Stock Incentive Plan, as amended and restated in May of 2013 was terminated. The 2023 Plan is administered by the Compensation Committee of the Company’s Board of Directors (the “Board”) or another committee designated by the Board, or in the absence of any such committee, the Board itself (the “administrator”). Stock options are granted at a price determined by the administrator at an exercise price that is not less than the fair market value of the underlying stock on the date of grant. The administrator may also grant SARs, RSUs and PSUs with terms determined by the administrator in accordance with the 2023 Plan. All share-based awards (except for RSUs and PSUs) granted under the 2023 Plan have a life often years. Most awards vest ratably over four years; however, some have been granted with different vesting schedules. Of the awards outstanding, none have been granted to non-employees (except those granted to non-employee members of the Board of Directors of the Company) under the 2023 Plan. In 2022, the Company launched the General Manager (“GM”) Equity program which granted RSUs to top performing general managers with athree year cliff vesting. The final grant under the GM Equity program was in the first quarter of 2024. At December 30, 2025, approxima tely 0.4 million (3.3 million prior to the Reverse Stock Split) share-based awards were available to be granted under the 2023 Plan. The number of shares have been restated to reflect the 1-for-8 Reverse Stock Split effectuated on February 18, 2026. All historical share and per share amounts reflected in this Report have been adjusted to reflect the Reverse Stock Split. Refer to Note 18: Subsequent Event for further discussion.

In July of 2024, the Company’s Board of Directors adopted the 2024 Inducement Plan (the “Inducement Plan”). The Inducement Plan provides for the potential grant of options, SARs, restricted stock and RSUs, any of which may be performance-based, and for incentive bonuses, which may be paid in cash or stock or a combination thereof, for certain newly hired employees. As of December 30, 2025, approximately 37,982 (303,851 prior to the Reverse Stock Split) share-based awards were available to be granted under the Inducement Plan.

Stock-based compensation expense is generally recognized on a straight-line basis over the service period of the awards. In 2025, 2024 and 2023, non-cash stock-based compensation expense of $3.0 million, $3.7 million and $4.3 million, respectively, was included in general and administrative expense. As of December 30, 2025, there was $3.0 million of unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the 2023 Plan, which is expected to be recognized over 2.1 years.

The Company has estimated forfeiture rates that average 32% based upon the class of employees receiving stock-based compensation in its calculation of stock-based compensation expense for the year ended December 30, 2025. These estimates are based on historical forfeiture behavior exhibited by employees of the Company.

Stock Options

The estimated fair value of each option granted is calculated using the Black-Scholes option-pricing model. Expected volatilities are based on the Company’s historical data and implied volatility. The Company uses historical data to estimate expected employee forfeitures of stock options. The expected life of options granted is management’s best estimate using recent and expected transactions. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. In 2024, the Company granted 31,250 performance-based stock options to its chief executive officer, which were to vest and become exercisable on the third anniversary of the grant date subject to the achievement of stock price target conditions at the end of thethree-year performance period; however these options expired upon the resignation of such chief executive officer in August 2025. The fair value of each option share was $8.40 at grant date and calculated using a Monte Carlo valuation model. The Company did not grant any options in 2025 or 2023.

A summary of aggregate option award activity under the 2023 Plan as of December 30, 2025, and changes during the fiscal year then ended is presented below:

(1)Aggregate intrinsic value represents the amount by which fair value of the Company’s stock exceeds the exercise price of the option as of December 30, 2025.

No option shares vested in 2025 or 2024. The Company had 4,365 options that vested in 2023. These awards had a total estimated fair value of $0.1 million at the date of vesting during the fiscal year ended January 2, 2024.

Restricted Stock Units (RSUs) and Performance Stock Units (PSUs)

The Company grants RSUs and PSUs to its executive officers under the 2023 Plan, and such awards may be granted under the Inducement Plan. The RSU awards vest over a four-year period subject to continued employment as of the applicable vesting date. The PSU awards are earned over athree-year performance period subject to the achievement of certain target performance conditions. The number of shares eligible to vest ranges from 0% to 200%, however no share shall vest if the defined minimum targets are not met. During fiscal years 2021 and 2022, PSUs were granted based on target performance measures over the Company’s comparable sales growth and Adjusted EBITDA (“Financial PSU”). For fiscal year 2021 to 2023, the Company also awarded PSUs based on a total shareholder return based metric (“TSR”), which compares the stock price of the Company’s shares to a group of peer companies. In fiscal year 2024, the Company awarded PSUs based on a volume-weighted average stock price for the Company’s shares. In fiscal year 2025, the Company awarded PSUs based on an absolute stock price of the Company’s shares on the measurement date.

Each share of the Financial PSUs has a fair value equal to the Company’s stock price at the date of grant while the fair value of each share of TSRs and the 2024-2025 PSUs is determined using a Monte Carlo valuation model. The Financial PSU stock-based compensation expense is recognized during the three-year period and is adjusted for the number of shares that are expected to vest based on the probability of achieving the targeted performance measures. Stock-based compensation expense for TSR and PSU awards is recognized straight-line over the term of the award. PSUs remain unvested until the end of the performance period and through the post-performance holding period of three to six months (“vest date”) if applicable. For TSR awards, there is a mandatory post-vest holding period of one year. PSUs are forfeited in the event of termination prior to the vest date.

The stock-based compensation expense recognized from the PSUs amounted to $(0.1) million, $0.2 million and $(0.6) million during 2025, 2024 and 2023, respectively. In 2025 the Company recorded a reversal of previously recognized compensation costs due to forfeitures of $0.4 million related to executive officer departures. In 2023, the Company recorded a reversal of previously recognized compensation costs due to forfeitures of$0.3 million related to executive officer departures and$0.5 million reversal due to target performance measures not being met.

A summary of the status of the Company’s aggregate non-vested RSUs and PSUs as of December 30, 2025 and changes during the year then ended is presented below:

The Company had 158,453,95,718 and 90,624 award units that vested in 2025, 2024 and 2023, respectively. This included 2,919 and 20,953 PSUs that vested in 2024 and 2023, respectively. No PSUs vested in 2025. These units had a total estimated fair value of$1.0 million, $1.5 million and $3.4 million at the date of vesting during the fiscal years ended December 30, 2025, December 31, 2024 and January 2, 2024, respectively.

10. Loss Per Share

Basic (loss) earnings per share (“EPS”) is calculated by dividing net (loss) income available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is calculated using net (loss) income available to common stockholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options and restricted common stock. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.

The following table sets forth the computations of basic and diluted EPS (in thousands, except share and per share data). The number of shares and per share have been restated to reflect the 1-for-8 Reverse Stock Split effectuated on February 18, 2026. Refer to Note 18: Subsequent Event for further discussion.

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. Potential common shares are excluded from the computation of diluted earnings per share when the effect would be anti-dilutive. Shares issuable on the vesting or exercise of share-based awards were excluded from the calculation of diluted loss per share because the effect of their inclusion would have been anti-dilutive totaled 491,339 (3.9 million shares prior to the Reverse Stock Split),470,816 (3.8 million shares prior to the Reverse Stock Split) and 430,280 (3.5 million shares prior to the Reverse Stock Split) for 2025, 2024 and 2023, respectively.

11. Employee Benefit Plans

Defined Contribution Plan

In October 2003, the Company adopted a defined contribution plan, The Noodles & Company 401(k) Plan (the “401(k) Plan”). Company employees aged 21 or older, are eligible to participate in the 401(k) Plan beginning on the first day of the calendar month following 30 days of employment. Under the provisions of the 401(k) Plan, the Company may, at its discretion, make contributions to the 401(k) Plan. Participants are 100% vested in their own contributions. In 2019, the board of directors authorized matching contributions equal to 25% of the first 4% of compensation that is deferred by the participant. The Company recognized matching contribution expense of$0.4 million in each of the fiscal years 2025, 2024 and 2023, respectively.

Deferred Compensation Plan

The Company’s deferred compensation plan, under which compensation deferrals began in 2013, is a non-qualified deferred compensation plan which allows highly compensated employees to defer a portion of their base salary and variable compensation, including 401(k) refund, each plan year. To offset its obligation, the Company holds a portfolio of mutual funds in a Rabbi Trust. As of December 30, 2025 and December 31, 2024, $1.0 million and $1.2 million, respectively, were included in other assets, net, which represents the value of the mutual funds, and $1.0 million and $1.2 million, respectively, were included in accrued expenses and other current liabilities and other long-term liabilities, which represents the carrying value of the liability for deferred compensation.

Employee Stock Purchase Plan

In 2013, the Company adopted an Employee Stock Purchase Plan (the “ESPP”) under which eligible team members may voluntarily contribute up to 15% of their salaries, subject to limitations, to purchase common stock at a price equal to 85% of the fair market value of a share of the Company’s common stock on the first day of each offering period or 85% of the fair market value of a share of the Company’s common stock on the last day of each offering period, whichever amount is less. In general, all non-highly compensated employees who have been employed by the Company for at least 30 days prior to the offering period and who are regularly scheduled to work more than 20 hours per week and for more than five months in any calendar year, are eligible to participate in the ESPP which operates in-line with the Company’s fiscal quarters. A total of 93,750 shares of common stock are available for issuance under the ESPP. The Company has issued a total of 81,189 shares under this plan, of which 19,940 shares were issued during 2025. A total of 12,561 shares remain available for future issuance. The number of shares reflect the 1-for-8 Reverse Stock Split effectuated on February 18, 2026. All historical share and per share amounts reflected in this Report have been adjusted to reflect the Reverse Stock Split. Refer to Note 18: Subsequent Event for further discussion.

For 2025, in accordance with the guidance for accounting for stock compensation, the Company estimated the fair value of the stock purchase plan using the Black-Scholes multiple-option pricing model. The average assumptions used in the model included a 3.77% risk-free interest rate;0.25 years expected life; expected volatility of 103.4%; and azero percent dividend yield. The weighted average fair value per share at grant date was $0.24. In 2025, the Company recognized $36,000 of compensation expense related to the ESPP.

12. Leases

The Company leases restaurant facilities, office space and certain equipment that expire on various dates through October 2039. Lease terms for restaurants in traditional shopping centers generally include a base term of 10 years, with options to extend these leases for additional periods offive to 15 years.

The Company’s leases typically contain rent escalations over the lease term. The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce the right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term. Total rent expense for operating leases for 2025, 2024 and 2023 was approximately $36.9 million, $39.4 million and $39.2 million, respectively.

Some of the Company’s leases include rent escalations based on inflation indexes and fair market value adjustments. Certain leases contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales in excess of stipulated amounts. Lease expense associated with rent escalation and contingent rental provisions is not material and is included within operating lease cost. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company elected the practical expedient to account for lease and non-lease components as a single component for substantially all lease types.

As most of the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

Changes in the market trend of the trade area affected certain of our restaurant operating results and the underlying asset values of the restaurant lease. The Company recorded right-of-use asset impairment charges, which reducedthe carrying value of operating lease assets to their respective estimated fair value by $5.0 million, $1.7 million, and $1.6 million in 2025, 2024 and 2023 respectively.

Supplemental balance sheet information related to leases is as follows (in thousands):

The components of lease costs are as follows (in thousands):

Future minimum lease payments required under existing leases as of December 30, 2025 are as follows (in thousands):

Operating lease payments include$43.9 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $0.5 million of legally binding minimum lease payments for lease renewals signed but not yet commenced.

Lease term and discount rate are as follows:

Supplemental disclosures of cash flow information related to leases are as follows (in thousands):

13. Supplemental Disclosures to Consolidated Statements of Cash Flows

The following table presents the supplemental disclosures to the Consolidated Statements of Cash Flows for 2025, 2024 and 2023 (in thousands):

14. Commitments and Contingencies

In the normal course of business, the Company is subject to other proceedings, lawsuits and claims. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Consequently, the Company is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of December 30, 2025. These matters could affect the operating results of any one financial reporting period when resolved in future periods. The Company believes that an unfavorable outcome with respect to these matters is remote or a potential range of loss is not material to its consolidated financial statements. Significant increases in the number of these claims, or one or more successful claims that result in greater liabilities than the Company currently anticipates, could materially and adversely affect its business, financial condition, results of operations or cash flows.

15. Related Party Transactions

Securities Purchase Agreement

Under the securities purchase agreement with Mill Road Capital II, L.P. (“Mill Road”), if at any time Mill Road owns 10.0% or more of our outstanding common stock, Mill Road has the right to designate one nominee for election to our Board of Directors. If Mill Road’s ownership level falls below 10.0% of our outstanding common stock, Mill Road will no longer have a right to designate a nominee. As of December 30, 2025, Mill Road continues to have holdings above the parameters in the agreement and Thomas Lynch of Mill Road is a member of the Company’s Board of Directors.

Support Agreement

On June 6, 2024, the Company entered into a Support Agreement (the “Support Agreement”) with Hoak & Co, James M. Hoak, Jr., J. Hale Hoak, Hoak Public Equities, L.P., Zierk Family 2010 Irrevocable Trust and Hoak Fund Management, L.P. (collectively, “Hoak”) and Britain Peakes. Pursuant to the Support Agreement the Company agreed to appoint Britain Peakes (the “Appointee”) to the Company’s Board of Directors as a Class III director. The Support Agreement also includes, among other provisions, certain standstill and voting commitments by Hoak. The standstill period shall extend until the later of (x) 12:01 a.m. on the 30 th day prior to the advance notice deadline for making director nominations at the 2026 annual meeting of shareholders and (y)thirty days after the date that the Appointee ceases to serve as a director. The Appointee was elected to the Board by stockholders at the 2025 Annual Meeting of Stockholders as a Class III director, and will serve athree-year term expiring at the 2028 Annual Meeting of Stockholders, and until her successor is duly elected and qualified, or until her earlier death, resignation or removal.

16. Revenue Recognition

Gift Cards

As of December 30, 2025 and December 31, 2024, the current portion of the gift card liability, $2.2 million and $2.0 million, respectively, is included in accrued expenses and other current liabilities, and the long-term portion, $0.8 million and $1.0 million, respectively, is included in other long-term liabilities in the Consolidated Balance Sheets.

Revenue recognized in the Consolidated Statements of Operations for the redemption of gift cards was $2.3 million, $2.6 million and $2.8 million in 2025, 2024 and 2023, respectively. The Company recognized gift card breakage in restaurant revenue of approximately $0.3 million, $0.4 million and $0.3 million in 2025, 2024 and 2023, respectively.

Franchise Fees

Initial fees received from franchisees are recognized as revenue over the term of each respective franchise agreement, which is typically 20 years. The Company recognized revenue of $0.3 million, $0.3 million and $0.2 million in 2025, 2024 and 2023, respectively related to initial fees from franchisees that were included in the contract liability balance at the beginning of the year. The Company expects to recognize approximately $0.1 million each fiscal year through fiscal 2030 and approximately $0.5 million thereafter related to performance obligations that are unsatisfied as of December 30, 2025.

Loyalty Program

The Company operates the Noodles Rewards program, which is primarily a spend-based loyalty program. With each purchase, Noodles Rewards members earn loyalty points that can be redeemed for rewards, including free products. Using an estimate of the value of reward redemptions, we defer revenue associated with points earned, net of estimated points that will not be redeemed. Points generally expire after six months. Revenue is recognized in a future period when the reward points are redeemed. Deferred revenue related to the rewards was $1.1 million and $1.0 million as of December 30, 2025 and December 31, 2024, respectively, and was included in accrued expenses and other current liabilities in the Consolidated Balance Sheets.

17. Segment Reporting

The Company’s Chief Operating Decision Maker (“CODM”) is the senior executive team that includes the President and Chief Executive Officer and the Chief Financial Officer. The Company hasone reportable operating segment. The reportable operating segment is comprised ofone operating segment. Theone reportable segment derives its revenue from company-owned restaurants and franchise owned restaurants. No guest accounts for 10% or more of the Company’s revenues. The Company’s CODM uses income (loss) from operations to evaluate performance and make key operating decisions, such as deciding the rate at which we invest resources into the segment.

The following table presents selected financial information with respect to our single reportable segment regularly reviewed by our CODM for 2025, 2024 and 2023 (in thousands):

(1)Long-lived assets include the Company’s property and equipment and operating lease assets presented in the Consolidated Balance Sheets.

18. Subsequent Event

Reverse Stock Split

On February 4, 2026, the Company's Board of Directors approved a Reverse Stock Split of the Company's issued and outstanding Class A common stock. The Reverse Stock Split was effectuated through the filing of an amendment to the Company’s Amended and Restated Certificate of Incorporation on February 12, 2026 and became effective on February 18, 2026 at a 1-for-8 ratio. All issued and outstanding Class A common stock and per share amounts contained in this Report have been adjusted retroactively to reflect the change in capital structure for all periods presented.