FORUM ENERGY TECHNOLOGIES, INC.

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s control. All statements, other than statements of historical fact, included in this Quarterly Report on Form 10-Q regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Quarterly Report on Form 10-Q, the words “will,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

Current wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s control. All statements, other than statements of historical fact, included in this Quarterly Report on Form 10-Q regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Quarterly Report on Form 10-Q, the words “will,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

Previous wording

FET optimizes customer operations by improving safety, increasing efficiency, and reducing environmental impact. Our highly engineered products include capital equipment and consumable products. FET’s customers include oil and natural gas operators, oilfield service companies, pipeline and refinery operators, defense contractors and renewable energy companies. Consumable products are used by our customers in drilling, well construction and completion activities and at processing centers and refineries. Our capital products are directed at drilling rig equipment for constructing new or upgrading existing rigs, subsea construction and development projects, submarine rescue systems and equipment for military use, pressure pumping equipment, the placement of production equipment on new producing wells, downstream capital projects and capital equipment for renewable energy projects. For the six months ended June 30, 2026, approximately 75% of our revenue was derived from consumable products and activity-based equipment, while the balance was primarily derived from capital products with a small amount from rental and other services.

Current wording

FET optimizes customer operations by improving safety, increasing efficiency, and reducing environmental impact. Our highly engineered products include capital equipment and consumable products. FET’s customers include oil and natural gas operators, oilfield service companies, pipeline and refinery operators, defense contractors and renewable energy companies. Consumable products are used by our customers in drilling, well construction and completion activities and at processing centers and refineries. Our capital products are directed at drilling rig equipment for constructing new or upgrading existing rigs, subsea construction and development projects, submarine rescue systems and equipment for military use, pressure pumping equipment, the placement of production equipment on new producing wells, downstream capital projects and capital equipment for renewable energy projects. For the nine months ended September 30, 2026, approximately 75% of our revenue was derived from consumable products and activity-based equipment, while the balance was primarily derived from capital products with a small amount from rental and other services.

Previous wording

•Artificial Lift and Downhole. This segment designs, manufactures and supplies products and solutions for the artificial lift, well construction, production and infrastructure markets. The products and solutions consist primarily of: (i) products designed to safeguard artificial lift equipment and downhole cables; (ii) well construction casing and cementing equipment; (iii) customized downhole technology solutions, providing sand and flow control products for heavy oil applications; (iv) engineered process systems, production equipment, as well as specialty separation equipment; and (v) a wide range of industrial valves focused on oil and natural gas as well as power generation, renewable energy and other general industrial applications.

Current wording

•Artificial Lift and Downhole. This segment designs, manufactures and supplies products and solutions for the artificial lift, well construction, production and infrastructure markets. The products and solutions consist primarily of: (i) products designed to safeguard artificial lift equipment and downhole cables; (ii) casing and cementing equipment used in well construction; (iii) customized downhole technology solutions, providing sand and flow control products for heavy oil applications; (iv) engineered process systems, production equipment, as well as specialty separation equipment; and (v) a wide range of industrial valves focused on oil and natural gas as well as power generation, renewable energy and other general industrial applications.

Previous wording

Over the course of the quarter, energy markets experienced heightened volatility, driven by reduced export capacity, constrained shipping activity in the region and the incorporation of a risk premium into commodity prices. Crude oil prices increased during portions of the quarter, as market participants reacted to both actual and potential disruptions in global supply. While oil prices stabilized near the end of the quarter as market confidence improved regarding diplomatic negotiations and global crude oil supply, prices remained sensitive to geopolitical developments. Natural gas prices decreased in the quarter due to strong supply growth and seasonality.

Current wording

Over the course of the quarter, energy markets experienced heightened volatility, driven by supply concerns, constrained shipping activity and the incorporation of a risk premium into commodity prices. Average crude oil prices decreased compared to the second quarter 2026, but remained significantly above third quarter 2025 levels. Crude oil prices were elevated during portions of the quarter, as market participants reacted to actual and potential disruptions in global supply. North American natural gas prices remained relatively subdued during the quarter, reflecting strong domestic production and seasonal factors.

Previous wording

Despite the elevated energy prices, global average active rig counts decreased compared to the first quarter 2026 and remained below the prior‑year period, reflecting continued capital discipline and expectations for a near term resolution to the Middle East conflicts. Looking forward, while commodity prices are expected to continue to fluctuate due to geopolitical developments, we expect customers to maintain their focus on capital discipline, operational efficiency and investment returns. However, we continue to believe that long‑term global energy demand, ongoing production declines in mature fields, and customer focus on efficiency, safety, and emissions reduction will continue to support demand for our products and technologies over the long term.

Current wording

Despite elevated energy prices during portions of the quarter, industry activity levels remained broadly influenced by customers’ capital discipline, geopolitical uncertainty and broader macroeconomic conditions. Many operators continued to prioritize free cash flow generation, operational efficiency and investment returns when making capital allocation decisions. Looking forward, while commodity prices are expected to continue to fluctuate due to geopolitical developments and global economic conditions, we expect customers to maintain their focus on capital discipline, operational efficiency and investment returns. However, we continue to believe that long‑term global energy demand, ongoing production declines in mature fields, and customers’ focus on efficiency, safety, and emissions reduction will continue to support demand for our products and technologies.

Previous wording

The table below shows average crude oil and natural gas prices for West Texas Intermediate (“WTI”), Brent and Henry Hub. Average crude oil prices during the second quarter 2026 increased compared to the prior year. The higher prices reflected tightening global supply due to the geopolitical uncertainty in Middle East.

Current wording

The table below shows average crude oil and natural gas prices for West Texas Intermediate (“WTI”), Brent and Henry Hub. Average crude oil prices during the third quarter 2026 increased compared to the prior year. The higher prices reflected tightening global supply conditions, lower inventory levels and continued uncertainty affecting energy productions, exports and transportation routes in the Middle East.

Previous wording

The table below shows the average number of active drilling rigs operating by geographic area and drilling for different purposes based on the weekly rig count information published by Baker Hughes Company. In the third quarter of 2025, Baker Hughes implemented a revised methodology for counting rigs, primarily affecting data pertaining to Saudi Arabia. Consequently, international rig counts reported for the prior period have been adjusted accordingly and may now vary from figures presented in previous disclosures.

Current wording

The table below shows the average number of active drilling rigs operating by geographic area and drilling for different purposes based on the weekly rig count information published by Baker Hughes Company.

Previous wording

Our revenue for the three months ended June 30, 2026 was $226.2 million, an increase of $26.5 million, or 13.2%, compared to the three months ended June 30, 2025. For the three months ended June 30, 2026, our Drilling and Completions and our Artificial Lift and Downhole segments comprised 61.4% and 38.6% of our total revenue, respectively, compared to 58.7% and 41.3% of our total revenue, respectively, for the three months ended June 30, 2025. The changes in revenue by operating segment consisted of the following:

Current wording

Our revenue for the three months ended September 30, 2026 was $236.8 million, an increase of $40.6 million, or 20.7%, compared to the three months ended September 30, 2025. For the three months ended September 30, 2026, our Drilling and Completions and our Artificial Lift and Downhole segments comprised 62.1% and 37.9% of our total revenue, respectively, compared to 59.8% and 40.2% of our total revenue, respectively, for the three months ended September 30, 2025. The changes in revenue by operating segment consisted of the following:

Previous wording

Drilling and Completions segment— Revenue was $139.0 million for the three months ended June 30, 2026, an increase of $21.8 million, or 18.6%, compared to the three months ended June 30, 2025. The increase was primarily attributable to higher revenue recognized from ROVs and part sales in the Subsea product line, as well as increased demand for wireline cable, coiled tubing and drilling-related capital products.

Current wording

Drilling and Completions segment— Revenue was $147.2 million for the three months ended September 30, 2026, an increase of $29.7 million, or 25.3%, compared to the three months ended September 30, 2025. The increase was primarily attributable to higher project revenue and parts sales in the Subsea product line, as well as increased demand for coiled tubing, wireline cable, radiators, and drilling-related capital products due to improved international and offshore drilling and completions activity.

Previous wording

Artificial Lift and Downhole segment— Revenue was $169.5 million for the six months ended June 30, 2026, an increase of $9.2 million, or 5.7%, compared to the six months ended June 30, 2025. The increase in revenue was primarily attributable to higher sand and flow control product sales, as well as higher valve product sales reflecting the absence of prior-year period tariff‑related sales impacts. These increases were partially offset by lower demand for production equipment and technologies.

Current wording

Artificial Lift and Downhole segment— Revenue was $89.9 million for the three months ended September 30, 2026, an increase of $10.9 million, or 13.8%, compared to the three months ended September 30, 2025. The increase in revenue was primarily attributable to higher sand and flow control product sales, as well as higher midstream-related valve product sales. These increases were partially offset by lower demand for production equipment and technologies.

Previous wording

Segment operating income for the three months ended June 30, 2026 was $21.1 million, a $12.9 million increase compared to income of $8.2 million for the three months ended June 30, 2025. For the three months ended June 30, 2026, segment operating margin percentage was 9.3% compared to 4.1% for the three months ended June 30, 2025. Segment operating margin percentage is calculated by dividing segment operating income (loss) by revenue for the period. The change in operating income for each segment is explained as follows:

Current wording

Segment operating income for the three months ended September 30, 2026 was $21.1 million, a $31.3 million increase compared to loss of $10.2 million for the three months ended September 30, 2025. For the three months ended September 30, 2026, segment operating margin percentage was 8.9% compared to (5.2)% for the three months ended September 30, 2025. Segment operating margin percentage is calculated by dividing segment operating income (loss) by revenue for the period. The change in operating income for each segment is explained as follows:

Previous wording

Drilling and Completions segment— Segment operating income was $13.7 million, or 9.9%, for the three months ended June 30, 2026 compared to income of $7.3 million, or 6.2%, for the three months ended June 30, 2025. The $6.4 million increase in segment operating results was driven by revenue growth across all product lines, as well as benefits from cost savings initiatives including the Company’s strategic decision to consolidate facilities in the second half of the prior year.

Current wording

Drilling and Completions segment— Segment operating income was $14.3 million, or 9.7%, for the three months ended September 30, 2026 compared to loss of $13.6 million, or (11.5)%, for the three months ended September 30, 2025. The $27.8 million increase in segment operating results was driven by revenue growth across all product lines, operating leverage, and benefits from cost savings initiatives. The increase was also driven by higher prior-year costs, such as inventory write-downs, asset impairments, and related charges arising from the Company’s strategic decision to consolidate facilities and discontinue certain products.

Previous wording

Corporate— Selling, general and administrative expenses for Corporate were $18.5 million for the six months ended June 30, 2026 compared to $17.2 million for the six months ended June 30, 2025. This increase was primarily related to higher performance-based stock incentive compensation costs.

Current wording

Corporate— Selling, general and administrative expenses for Corporate were $9.2 million for the three months ended September 30, 2026 compared to $8.4 million for the three months ended September 30, 2025. This increase was primarily due to acquisition-related transaction costs.

Previous wording

Transaction expenses, gain on sale-leaseback transactions, and gain (loss) on the disposal of assets and other are not included in segment operating income, but are included in total operating income.

Current wording

Transaction expenses, gain on sale-leaseback transactions, and gain (loss) on the disposal of assets and other are not included in segment operating income, but are included in total operating income (loss).

Previous wording

Other income and expense includes interest expense and foreign exchange gains (losses) and other. We incurred $4.3 million of interest expense during the three months ended June 30, 2026, a decrease of $0.4 million compared to the three months ended June 30, 2025, due to decreased borrowings. See Note 6 Debt for further details related to debt.

Current wording

Other income and expense includes interest expense and foreign exchange gains (losses) and other. We incurred $4.0 million of interest expense during the three months ended September 30, 2026, a decrease of $0.3 million compared to the three months ended September 30, 2025, due to decreased borrowings. See Note 7 Debt for further details related to debt.

Previous wording

We recorded tax expense of $3.6 million and $6.2 million for the three months ended June 30, 2026 and 2025, respectively. The income tax expense during thethree months ended June 30, 2026 was partially driven by a decrease to valuation allowances on certain deferred tax assets. The estimated annual effective tax rates for the three months ended June 30, 2026 and 2025 were impacted by changes in earnings relative to tax expense and by fluctuations in valuation allowances on certain net operating loss carryforwards. Furthermore, the tax expense or benefit recorded can vary from period to period depending on the Company’s relative mix of earnings and losses by jurisdiction.

Current wording

We recorded tax expense of $4.0 million and $10.1 million for the three months ended September 30, 2026 and 2025, respectively. The income tax expense during thethree months ended September 30, 2026 was partially driven by a decrease to valuation allowances on certain deferred tax assets. The estimated annual effective tax rates for the three months ended September 30, 2026 and 2025 were impacted by changes in earnings relative to tax expense and by fluctuations in valuation allowances on certain net operating loss carryforwards. Furthermore, the tax expense or benefit recorded can vary from period to period depending on the Company’s relative mix of earnings and losses by jurisdiction.

Previous wording

Our revenue for the six months ended June 30, 2026 was $434.9 million, an increase of $41.9 million, or 10.7%, compared to the six months ended June 30, 2025. For the six months ended June 30, 2026, our Drilling and Completions and our Artificial Lift and Downhole segments comprised 61.1% and 38.9% of our total revenue, respectively, compared to 59.2% and 40.8% of our total revenue, respectively, for the six months ended June 30, 2025. The changes in revenue by operating segment consisted of the following:

Current wording

Our revenue for the nine months ended September 30, 2026 was $671.7 million, an increase of $82.5 million, or 14.0%, compared to the nine months ended September 30, 2025. For the nine months ended September 30, 2026, our Drilling and Completions and our Artificial Lift and Downhole segments comprised 61.4% and 38.6% of our total revenue, respectively, compared to 59.4% and 40.6% of our total revenue, respectively, for the nine months ended September 30, 2025. The changes in revenue by operating segment consisted of the following:

Previous wording

Drilling and Completions segment— Revenue was $265.7 million for the six months ended June 30, 2026, an increase of $32.9 million, or 14.1%, compared to the six months ended June 30, 2025. The increase was primarily attributable to higher revenue recognized from ROVs and part sales in the Subsea product line, as well as increased demand for wireline cable, coiled tubing and drilling-related capital products.

Current wording

Drilling and Completions segment— Revenue was $412.9 million for the nine months ended September 30, 2026, an increase of $62.6 million, or 17.9%, compared to the nine months ended September 30, 2025. The increase was primarily attributable to higher project revenue and parts sales in the Subsea product line, as well as increased demand for coiled tubing, wireline cable, radiators, and drilling-related capital products due to improved international and offshore drilling and completions activity.

Previous wording

Artificial Lift and Downhole segment— Revenue was $87.4 million for the three months ended June 30, 2026, an increase of $4.9 million, or 5.9%, compared to the three months ended June 30, 2025. The increase in revenue was primarily attributable to higher sand and flow control product sales, as well as higher valve product sales reflecting the absence of prior-year period tariff‑related sales impacts. These increases were partially offset by lower demand for production equipment and technologies.

Current wording

Artificial Lift and Downhole segment— Revenue was $259.4 million for the nine months ended September 30, 2026, an increase of $20.1 million, or 8.4%, compared to the nine months ended September 30, 2025. The increase in revenue was primarily attributable to higher sand and flow control product sales, as well as higher valve product sales reflecting the absence of prior-year period tariff‑related sales impacts. These increases were partially offset by lower demand for production equipment and technologies.

Previous wording

Segment operating income for the six months ended June 30, 2026 was $32.1 million, a $14.9 million increase, compared to $17.1 million for the six months ended June 30, 2025. For the six months ended June 30, 2026, segment operating margin percentage was 7.4%, compared to 4.4% for the six months ended June 30, 2025. Segment operating margin percentage is calculated by dividing segment operating income by revenue for the period. The change in operating income for each segment is explained as follows:

Current wording

Segment operating income for the nine months ended September 30, 2026 was $53.2 million, a $46.3 million increase, compared to $6.9 million for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, segment operating margin percentage was 7.9%, compared to 1.2% for the nine months ended September 30, 2025. Segment operating margin percentage is calculated by dividing segment operating income by revenue for the period. The change in operating income for each segment is explained as follows:

Previous wording

Drilling and Completions segment— Segment operating income was $22.6 million, or 8.5%, for the six months ended June 30, 2026 compared to $16.7 million, or 7.2%, for the six months ended June 30, 2025. The $6.0 million increase in segment operating results was driven by revenue growth across all product lines, as well as benefits from cost savings initiatives including the Company’s strategic decision to consolidate facilities in the second half of the prior year.

Current wording

Drilling and Completions segment— Segment operating income was $36.9 million, or 8.9%, for the nine months ended September 30, 2026 compared to $3.1 million, or 0.9%, for the nine months ended September 30, 2025. The $33.8 million increase in segment operating results was driven by operating leverage from revenue growth across all product lines, as well as benefits from cost savings initiatives. The increase was also driven by higher prior-year costs, such as inventory write-downs, asset impairments, and related charges arising from the Company’s strategic decision to consolidate facilities and discontinue certain products.

Previous wording

Corporate— Selling, general and administrative expenses for Corporate were $9.0 million for the three months ended June 30, 2026, comparable to the three months ended June 30, 2025.

Current wording

Corporate— Selling, general and administrative expenses for Corporate were $27.7 million for the nine months ended September 30, 2026 compared to $25.6 million for the nine months ended September 30, 2025. This increase was primarily due to acquisition-related transaction costs.

Previous wording

Transaction expenses, gain on sale-leaseback transactions, and gain (loss) on the disposal of assets and other are not included in segment operating income, but are included in total operating income.

Current wording

Transaction expenses, gain on sale-leaseback transactions, and gain (loss) on the disposal of assets and other are not included in segment operating income, but are included in total operating income (loss).

Previous wording

Other income and expense includes interest expense and foreign exchange gains (losses) and other. We incurred$8.4 million of interest expense during the six months ended June 30, 2026, a decrease of$1.3 million compared to the six months ended June 30, 2025, due to decreased borrowings. See Note 6 Debt for further details related to debt.

Current wording

Other income and expense includes interest expense and foreign exchange gains (losses) and other. We incurred$12.5 million of interest expense during the nine months ended September 30, 2026, a decrease of$1.6 million compared to the nine months ended September 30, 2025, due to decreased borrowings. See Note 7 Debt for further details related to debt.

Previous wording

We recorded tax expense of $6.5 million and $10.0 million for thesix months ended June 30, 2026 and 2025, respectively. The income tax expense during the six months ended June 30, 2026 was favorably impacted by a decrease to valuation allowances on certain deferred tax assets and the relative mix of earnings and losses by jurisdiction. The estimated annual effective tax rates for thesix months ended June 30, 2026 and 2025 were driven primarily by changes in earnings relative to tax expense and to fluctuations in valuation allowances on certain net operating loss carryforwards. Furthermore, the tax expense or benefit recorded can vary from period to period depending on the Company’s relative mix of earnings and losses by jurisdiction.

Current wording

We recorded tax expense of $10.5 million and $20.1 million for thenine months ended September 30, 2026 and 2025, respectively. The income tax expense during the nine months ended September 30, 2026 was favorably impacted by a decrease to valuation allowances on certain deferred tax assets and the relative mix of earnings and losses by jurisdiction. The estimated annual effective tax rates for thenine months ended September 30, 2026 and 2025 were driven primarily by changes in earnings relative to tax expense and to fluctuations in valuation allowances on certain net operating loss carryforwards. Furthermore, the tax expense or benefit recorded can vary from period to period depending on the Company’s relative mix of earnings and losses by jurisdiction.

Previous wording

As of June 30, 2026, we had $45.0 million of borrowings under our revolving Credit Facility and $100.0 million principal amount of the 2029 Bonds outstanding. See Note 6 Debt for further details related to the terms for our debt arrangements.

Current wording

As of September 30, 2026, we had $30.1 million of borrowings under our revolving Credit Facility and $100.0 million principal amount of the 2029 Bonds outstanding. See Note 7 Debt for further details related to the terms for our debt arrangements.

Previous wording

As of June 30, 2026, we had cash and cash equivalents of $33.7 million and $62.0 million of availability under the Credit Facility. We anticipate that our future working capital requirements for our operations will fluctuate directionally with revenues. Furthermore, availability under the Credit Facility will fluctuate directionally based on the level of our eligible accounts receivable and inventory subject to applicable sublimits. In addition, we expect total 2026 capital expenditures to be below $10.0 million, primarily for replacement of end of life machinery and equipment.

Current wording

As of September 30, 2026, we had cash and cash equivalents of $35.2 million and $94.0 million of availability under the Credit Facility. We anticipate that our future working capital requirements for our operations will fluctuate directionally with revenues. Furthermore, availability under the Credit Facility will fluctuate directionally based on the level of our eligible accounts receivable and inventory subject to applicable sublimits. In addition, we expect total 2026 capital expenditures to be below $10.0 million, primarily for replacement of end of life machinery and equipment.

Previous wording

Our Board of Directors approved programs for the repurchase of outstanding shares of our common stock. From the inception of the programs in November 2021 through June 30, 2026, we repurchased approximately 1.8 million shares of our common stock for aggregate consideration of $49.4 million. We repurchased approximately 0.1 million shares of our common stock for aggregate consideration of $7.6 million during the six months ended June 30, 2026.

Current wording

Our Board of Directors approved programs for the repurchase of outstanding shares of our common stock. From the inception of the programs in November 2021 through September 30, 2026, we repurchased approximately 1.9 million shares of our common stock for aggregate consideration of $50.8 million. We repurchased approximately 0.2 million shares of our common stock for aggregate consideration of $9.0 million during the nine months ended September 30, 2026.

Previous wording

Our cash flows for the six months ended June 30, 2026 and 2025 are presented below (in thousands):

Current wording

Our cash flows for the nine months ended September 30, 2026 and 2025 are presented below (in thousands):

Previous wording

Net cash provided by operating activities was $14.1 million for the six months ended June 30, 2026 compared to net cash provided by operating activities of $25.1 million for the six months ended June 30, 2025. The decrease was primarily due to higher working capital requirements, driven by an increase in accounts receivable associated with higher revenue, resulting in a use of cash of $31.4 million in the 2026 period compared to net cash provided of $3.4 million in the prior period. Partially offsetting this decline in operating cash flows was the increase in net income adjusted for non-cash items, which provided $45.4 million of cash in 2026 compared to $21.7 million in 2025.

Current wording

Net cash provided by operating activities was $46.1 million for the nine months ended September 30, 2026 compared to net cash provided by operating activities of $48.0 million for the nine months ended September 30, 2025. The decrease was primarily due to higher working capital requirements, driven by an increase in accounts receivable associated with higher revenue, resulting in a use of cash of $20.9 million in the 2026 period compared to net cash provided of $18.6 million in the prior period. Partially offsetting this increase in operating cash flows was an increase in net income adjusted for non-cash items, which provided $67.0 million of cash in 2026 compared to $29.4 million in 2025.

Previous wording

Net cash used in investing activities was $3.0 million for the six months ended June 30, 2026, driven by capital expenditures. Net cash provided by investing activities was $5.0 million for the six months ended June 30, 2025, primarily from $8.0 million proceeds from a sale-leaseback transaction, offset by capital expenditures of $3.1 million.

Current wording

Net cash used in investing activities was $16.6 million for the nine months ended September 30, 2026, driven by PTR acquisition of $11.8 million and capital expenditures of $4.9 million. Net cash provided by investing activities was $10.3 million for the nine months ended September 30, 2025, primarily from $14.6 million proceeds from a sale-leaseback transaction, offset by capital expenditures of $4.5 million.

Previous wording

Net cash used in financing activities was $11.6 million for the six months ended June 30, 2026 compared to $37.3 million of cash used in financing activities for the six months ended June 30, 2025. The change was primarily driven by payments of stock-based compensation taxes of $9.3 million and repurchases of stock of $7.6 million, partially offset by $7.7 million in net borrowings under the revolving Credit Facility during 2026. This compares to $28.0 million in net repayments under the revolving Credit Facility, repurchases of stock of $6.3 million and payments of stock-based compensation taxes of $1.3 million during the prior year period.

Current wording

Net cash used in financing activities was $28.5 million for the nine months ended September 30, 2026 compared to $72.4 million of cash used in financing activities for the nine months ended September 30, 2025. The change was primarily driven by payments of stock-based compensation taxes of $9.3 million, repurchases of stock of $9.0 million and $7.2 million in net repayments under the revolving Credit Facility during 2026. This compares to $47.6 million in net repayments under the revolving Credit Facility, repurchases of stock of $21.1 million and payments of stock-based compensation taxes of $1.3 million during the prior year period.

Previous wording

There have been no material changes in our critical accounting policies and estimates during the six months ended June 30, 2026. For a detailed discussion of our critical accounting policies and estimates, refer to our 2025 Annual Report on Form 10-K. For recent accounting pronouncements, refer to Note 2 Recent Accounting Pronouncements.

Current wording

There have been no material changes in our critical accounting policies and estimates during the nine months ended September 30, 2026. For a detailed discussion of our critical accounting policies and estimates, refer to our 2025 Annual Report on Form 10-K. For recent accounting pronouncements, refer to Note 2 Recent Accounting Pronouncements.