BEL FUSE INC /NJ

Previous wording

We operate through three product group segments. In the six months ended June 30, 2025,53% of our revenues were derived from Power Solutions and Protection, 34% from our Connectivity Solutions and 13% from our Magnetic Solutions operating segment.

Current wording

We operate through three product group segments. In the nine months ended September 30, 2025,53% of our revenues were derived from Power Solutions and Protection, 34% from our Connectivity Solutions and 13% from our Magnetic Solutions operating segment.

Previous wording

Our operating expenses are driven principally by the cost of labor where the factories that we use are located, the cost of the materials that we use and our ability to effectively and efficiently manage overhead costs. As labor and material costs vary by product line and region, any significant shift in product mix can have an associated impact on our costs of sales. Costs are recorded as incurred for all products manufactured. Such amounts are determined based upon the estimated stage of production and include materials, labor cost and fringes and related allocations of factory overhead. Our products are manufactured at various facilities in the United States, Mexico, Dominican Republic, United Kingdom, Slovakia, Israel, India and the People’s Republic of China (PRC).

Current wording

Our operating expenses are driven principally by the cost of labor where the factories that we use are located, the cost of the materials that we use and our ability to effectively and efficiently manage overhead costs. As labor and material costs vary by product line and region, any significant shift in product mix can have an associated impact on our costs of sales. Costs are recorded as incurred for all products manufactured. Such amounts are determined based upon the estimated stage of production and include materials, labor cost and fringes and related allocations of factory overhead. Our products are manufactured at various facilities in the United States, Mexico, Dominican Republic, United Kingdom, Slovakia, Israel, India and the PRC.

Previous wording

We believe that in addition torecent global tariffs and inflationary pressures on the costs of goods and services in general, and ongoing conflicts/political unrest includingin or near the countries in which Bel operates, the key factors affecting and/or potentially affecting our results for the six months ended June 30, 2025 and/or future results include the following:

Current wording

We believe that in addition torecent global tariffs and inflationary pressures on the costs of goods and services in general, and ongoing conflicts/political unrest includingin or near the countries in which Bel operates, the key factors affecting and/or potentially affecting our results for the nine months ended September 30, 2025 and/or future results include the following:

Previous wording

Our revenue and gross margin by operating segment for the three and six months ended June 30, 2025 and 2024 were as follows:

Current wording

Our revenue and gross margin by operating segment for the three and nine months ended September 30, 2025 and 2024 were as follows:

Previous wording

Sales of our Power Solutions and Protection products increased by $28.2 million (48.2%) during the three months ended June 30, 2025, compared to the same period in 2024. For the six months ended June 30, 2025, sales rose by $51.1 million (43.0%) compared to the first half of 2024. This growth was primarily driven by sales in aerospace and defense applications, which contributed $32.6 million during the second quarter of 2025 and $65 million during the first half of 2025. These applications represent a new end market within Bel's Power segment, introduced through the acquisition of Enercon in November 2024. Sales of networking applications increased by $3.7 million during the second quarter of 2025 and by $3.0 million during the first half of 2025, relative to the same periods in 2024. Additional contributors to the revenue increase included higher sales of Fuse products, which rose by $1.7 million during the three months and $2.3 million during the six months ended June 30, 2025, compared to the same periods in 2024.

Current wording

Sales of our Power Solutions and Protection products increased by $45.7 million (93.9%) during the three months ended September 30, 2025, compared to the same period in 2024. For the nine months ended September 30, 2025, sales rose by $96.8 million (57.8%) over the first nine months of 2024. This growth was primarily driven by aerospace and defense applications, contributing $34.4 million in Q3 2025 and $99.5 million in the first nine months of 2025. These sectors represent a new end market within Bel’s Power segment, introduced through the acquisition of Enercon in November 2024. Additional contributors to revenue growth included:

Previous wording

However, these gains were partially offset by declines in several categories. Railway applications saw a decline of $3.2 million during the second quarter and $4.7 million during the first half of 2025. eMobility applications fell by $2.3 million and $4.0 million during the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. Additionally, sales in Other Industrial applications dropped by $1.7 million and $5.4 million during the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, while consumer applications declined by $1.7 million in the second quarter of 2025 and by $4.3 million in the first six months of 2025, in each case relative to the comparable 2024 periods.

Current wording

These gains were partially offset by declines in several categories:

Previous wording

Sales of Connectivity Solutions products increased by $1.4 million (2.4%) in the second quarter of 2025 compared to second quarter of 2024, driven by higher volumes sold into commercial aerospace applications, which grew by $5.1 million (33.5%), and defense applications, which increased by $1.5 million (12.2%). These gains were partially offset by a decline in distribution sales of $3.6 million (16.6%) during the second quarter of 2025 compared to the second quarter of 2024.

Current wording

Sales of Connectivity Solutions products increased by $6.2 million (11.0%) in the third quarter of 2025 compared to the third quarter of 2024, primarily driven by higher volumes in commercial aerospace applications, which grew by $6.3 million (50.5%), and defense applications, which increased by $3.6 million (31.2%). These gains were partially offset by a $1.9 million (9.7%) decline in distribution sales during the same period.

Previous wording

Gross margins for the 2025 periods presented above were favorably impacted by favorable product mix, favorable fluctuation in exchange rates between the U.S. dollar and Mexican peso in the 2025 periods as compared to the 2024 periods presented, and operational efficiencies from the facility consolidations completed in 2024, partially offset by higher wage rates in Mexico.

Current wording

Gross margins for the 2025 periods benefited from an improved product mix, favorable exchange rate fluctuations between the U.S. dollar and Mexican peso, and operational efficiencies resulting from facility consolidations completed in 2024, partially offset by higher wage rates in Mexico.

Previous wording

Sales of Magnetic Solutions products increased by $5.5 million (32.5%) in the second quarter of 2025 and $10.4 million (34.1%) in the first half of 2025 compared to the same periods in 2024. This growth was primarily driven by higher demand from networking customers and increased sales through distribution channels. Gross margin improvements for this product group during the first half of 2025 were supported by recent facility consolidations in the PRC, effective cost management, and beneficial exchange rates between the Chinese renminbi and the U.S. dollar.

Current wording

Sales of Magnetic Solutions products increased by $3.5 million (18.0%) in the third quarter of 2025 and $13.8 million (27.9%) during the nine months ended September 30, 2025, compared to the same periods in 2024. This growth was primarily driven by higher demand from networking customers. Gross margin improvements for this product group during the first nine months of 2025 were supported by higher sales, recent facility consolidations in the PRC, effective cost management, and favorable exchange rates between the Chinese renminbi and the U.S. dollar.

Previous wording

Cost of sales as a percentage of revenue for thethree and six months ended June 30, 2025 and 2024 consisted of the following:

Current wording

Cost of sales as a percentage of revenue for thethree and nine months ended September 30, 2025 and 2024 consisted of the following:

Previous wording

Material costs as a percentage of sales increased during the three and six months ended June 30, 2025, compared to the same periods in 2024, primarily due to a shift in production mix driven by higher sales of Power products, which typically have greater material content. Labor costs as a percentage of sales also rose in the 2025 relative to the comparable 2024 periods, reflecting increased sales of labor-intensive Magnetic products and higher minimum wage rates, partially offset by favorable exchange rate fluctuations in the Chinese renminbi and Mexican peso versus the U.S. dollar.

Current wording

Material costs as a percentage of sales increased during both the three and nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to a shift in production mix driven by higher sales of Power products, which typically have greater material content. Labor costs as a percentage of sales declined in Q3 2025 and were flat for the first nine months of 2025, relative to the comparable 2024 periods, reflecting increased sales and favorable exchange rate fluctuations in the Chinese renminbi and Mexican peso versus the U.S. dollar, partially offset by higher minimum wage rates and unfavorable exchange rate fluctuations in the Israeli shekel.

Previous wording

Other expenses, including fixed costs such as support labor and fringe, depreciation and amortization, and facility costs (rent, utilities, insurance), remained relatively stable aside from the inclusion of Enercon's overhead expenses in the 2025 periods. However, as a percentage of sales, these expenses decreased during the three and six months ended June 30, 2025, compared to the same periods in 2024, benefiting from higher sales volumes in the 2025 periods.

Current wording

Other expenses, including fixed costs such as support labor and benefits, depreciation and amortization, and facility costs (rent, utilities, insurance), remained relatively stable aside from the inclusion of Enercon's overhead expenses in the 2025 periods. However, as a percentage of sales, these expenses decreased during the three and nine months ended September 30, 2025, compared to the same periods in 2024, benefiting from higher sales volumes in 2025.

Previous wording

R&D expenses totaled $8.1 million in the second quarter of 2025, up from $6.0 million in the second quarter of 2024, and totaled $15.3 million for the six months ended June 30, 2025, compared to $11.2 million for the same period in 2024. These increases were primarily driven by the inclusion of Enercon’s R&D costs, which contributed $1.7 million in the second quarter of 2025 and $3.4 million for the six-month period ended June 30, 2025.

Current wording

R&D expenses totaled $7.5 million in the third quarter of 2025, up from $5.4 million in the third quarter of 2024, and totaled $22.9 million for the nine months ended September 30, 2025, compared to $16.7 million for the same period in 2024. These increases were primarily driven by the inclusion of Enercon’s R&D costs, which contributed $2.0 million in the third quarter of 2025 and $5.4 million for the nine months ended September 30, 2025.

Previous wording

SG&A expenses totaled $30.9 million in the second quarter of 2025, an increase of $6.8 million compared to $24.1 million in the second quarter of 2024. For the six months ended June 30, 2025, SG&A expenses rose to $60.4 million, up from $49.1 million in the same period of 2024. The increase was primarily driven by Enercon's SG&A expenses, which contributed $6.0 million in the second quarter of 2025 and $11.9 million for the first half of 2025. This was partially offset by a $0.6 million reduction in expenses of the legacy Bel business, stemming from an adjustment in variable compensation during the six-month period ended June 30, 2025, compared to the same period in 2024.

Current wording

SG&A expenses totaled $32.8 million in the third quarter of 2025, an increase of $6.1 million compared to $26.7 million in the third quarter of 2024. For the nine months ended September 30, 2025, SG&A expenses rose to $93.2 million, up from $75.8 million in the same period of 2024. The increase was primarily driven by Enercon's SG&A expenses, which contributed $6.6 million in the third quarter of 2025 and $18.5 million for the nine months ended September 30, 2025. This was partially offset by a $1.0 million reduction in expenses of the legacy Bel business, stemming from lower legal fees during the nine months ended September 30, 2025, compared to the same period in 2024.

Previous wording

Interest expenses were $4.0 million for the three months ended June 30, 2025, compared to $0.4 million for the same period in 2024. For the six months ended June 30, 2025, interest expenses totaled $8.1 million, up from $0.8 million in the same period of 2024, reflecting increases of $3.6 million and $7.3 million for the three- and six-month periods, respectively. These increases were primarily driven by higher outstanding borrowings under the Company's Credit Agreement, including those incurred to finance the Enercon acquisition and related costs (refer to Note 3, "Acquisition" for additional details). For further information on the Company's outstanding debt, see "Liquidity and Capital Resources" below and Note 11, "Debt."

Current wording

Interest expenses were $3.6 million for the three months ended September 30, 2025 (up from $0.4 million for the same period in 2024) and $11.8 million for the nine months ended September 30, 2025 (up from $1.3 million in the same period of 2024), reflecting increases of $3.2 million and $10.5 million for the three- and nine-month periods, respectively. These increases were primarily driven by higher outstanding borrowings under the Company's Credit Agreement, including those incurred to finance the Enercon acquisition and related costs (refer to Note 3, "Acquisition" for additional details). For further information on the Company's outstanding debt, see "Liquidity and Capital Resources" below and Note 11, "Debt."

Previous wording

Interest income for the three months ended June 30, 2025 was $0.3 million, compared to $1.1 million for the same period in 2024. For the six months ended June 30, 2025, interest income was $0.5 million, down from $2.3 million in the comparable period of 2024. These declines were primarily attributable to reduced investments in U.S. Treasury Bills during the 2025 periods compared to those in 2024.

Current wording

Interest income for the three months ended September 30, 2025 was $0.2 million, down from $1.5 million for the same period in 2024. For the nine months ended September 30, 2025, interest income was $0.8 million, down from $3.7 million in the comparable period of 2024. These declines were primarily attributable to reduced investments in U.S. Treasury Bills during the 2025 periods compared to those in 2024.

Previous wording

Other income (expense), net was $7.6 million for the three months ended June 30, 2025, compared to ($0.5) million for the same period in 2024. This year-over-year change was primarily driven by foreign exchange transactional gains of $7.6 million during the three months ended June 30, 2025 compared to a loss of $0.3 million for the same period in 2024, due to fluctuations in spot rates of certain currencies when translating balance sheet accounts as of June 30 of each year. SERP investments resulted in a gain of $0.7 million in the second quarter of 2025 versus a gain of $0.1 million in the second quarter of 2024. Earnout adjustment losses related to the Enercon acquisition were $0.5 million for the three months ended June 30, 2025 and additionally, the Company recorded losses of $0.3 million related to its investment in innolectric during each of the second quarters of 2025 and 2024.

Current wording

Other income (expense), net was $1.1 million for the three months ended September 30, 2025, compared to ($1.3) million for the same period in 2024. This year-over-year change was primarily driven by foreign exchange transactional losses of $0.3 million during the three months ended September 30, 2025 compared to a loss of $1.6 million for the same period in 2024, due to fluctuations in spot rates of certain currencies when translating balance sheet accounts as of September 30 of each year. SERP investments resulted in a gain of $0.7 million in the third quarter of 2025 versus a gain of $0.5 million in the third quarter of 2024. Additionally, the Company recorded losses of $0.3 million and $0.2 million associated with its investment in innolectric during the third quarters of 2025 and 2024, respectively.

Previous wording

For the six months ended June 30, 2025, other income (expense), net totaled $10.2 million, compared to $1.3 million for the same period in 2024. This change was largely driven by foreign exchange transactional gains of $11.8 million during the first half of 2025, driven by currency spot rate fluctuations when translating balance sheet accounts as of June 30, 2025, compared to December 31, 2024. This compares to a foreign exchange transactional gain of $0.4 million recorded during the six months ended June 30, 2024. SERP investment market fluctuations resulted in a gain of $0.4 million in the 2025 period versus a gain of $0.8 million in the 2024 period. Earnout adjustment losses related to the Enercon acquisition were $1.1 million for the six months ended June 30, 2025. The Company recorded losses of $0.1 million from its investment in innolectric during both the first half of 2025 and 2024.

Current wording

For the nine months ended September 30, 2025, other income (expense), net totaled $11.3 million, compared to less than $0.1 million for the same period in 2024. This change was largely driven by foreign exchange transactional gains of $11.6 million during the nine months ended September 30, 2025, resulting from currency spot rate fluctuations when translating balance sheet accounts as of September 30, 2025, compared to December 31, 2024. This compares to foreign exchange transactional losses of $1.3 million recorded during the nine months ended September 30, 2024. SERP investment market fluctuations resulted in a gain of $1.1 million during the nine months ended September 30, 2025 period versus a gain of $1.3 million during the same period in 2024. Losses from the Company’s investment in innolectric totaled $0.4 million for the nine months ended September 30, 2025, compared to $0.3 million for the same period in 2024.

Previous wording

The Company’s effective tax rate will fluctuate based on the geographic regions in which the pretax profits are earned. Of the jurisdictions in which the Company operates, the U.S. and Europe’s tax rates are generally equivalent; and Asia has the lowest tax rates of the Company’s three geographic regions. See Note 12, “Income Taxes”.

Current wording

The Company’s effective tax rate will fluctuate based on the geographic regions in which the pretax profits are earned. Among the jurisdictions where the Company operates, the U.S. and Europe’s tax rates are generally comparable, while Asia has the lowest tax rates. See Note 12, “Income Taxes”.

Previous wording

The provision for income taxes for the three months ended June 30, 2025 and 2024 was $6.9 million and $4.1 million, respectively. Earnings before income taxes for the three months ended June 30, 2025 increased by $10.8 million compared to the same period in 2024, primarily due to higher income from the Europe and Asia regions, partially offset by a decrease in income from the North America region. The Company’s effective tax rate for the three months ended June 30, 2025 was 20.5%, compared to 17.8% for the same period in 2024. The increase in the effective tax rate was primarily driven by a reduction in the tax benefit from the reversal of uncertain tax positions due to statute expirations, as well as changes in foreign taxes and the relative amounts of income earned in those jurisdictions. See Note 12, “Income Taxes.”

Current wording

For the three months ended September 30, 2025, the provision for income taxes was $5.4 million, compared to $3.1 million for the same period in 2024. Earnings before income taxes for the three months ended September 30, 2025, increased by $16.8 million compared to the same period in 2024, primarily due to higher income worldwide. The Company’s effective tax rate for the three months ended September 30, 2025, was 19.5%, compared to 27.8% for the same period in 2024. The decrease in the effective tax rate was primarily driven by a decrease in tax expense relating to prior period accruals, offset by an increase in taxes related to income from foreign subsidiaries taxed in the U.S. as part of the Tax Cuts and Jobs Act. See Note 12, “Income Taxes.”

Previous wording

The provision for income taxes for the six months ended June 30, 2025 and 2024 was $12.4 million and $8.6 million, respectively. Earnings before income taxes for the six months ended June 30, 2025 increased by $14.3 million compared to the same period in 2024, primarily due to higher income from the Europe and Asia regions, partially offset by a decrease in income from the North America region. The Company’s effective tax rate for the six months ended June 30 2025, was 21.5% compared to 19.8% for the same period in 2024. The increase in the effective tax rate was attributable to the same factors noted above. See Note 12, “Income Taxes”.

Current wording

For the nine months ended September 30, 2025, the provision for income taxes was $17.8 million, compared to $11.7 million for the same period in 2024. Earnings before income taxes for the nine months ended September 30, 2025, increased by $31.1 million compared to the same period in 2024, primarily due to higher income worldwide. The Company’s effective tax rate for the nine months ended September 30, 2025, was 20.8% compared to 21.4% for the same period in 2024. The decrease in the effective tax rate was attributable to the same factors noted above, as well as a decrease in tax expense relating to valuation allowances. See Note 12, “Income Taxes”.

Previous wording

Our principal sources of liquidity include $59.3 million of cash and cash equivalents at June 30, 2025, cash provided by operating activities and borrowings available under our credit facility. We expect to use this liquidity for operating expenses, investments in working capital, capital expenditures, interest, taxes, lease and purchase obligations, pension benefit obligations, dividends, purchases of common stock under our Repurchase Program, and debt obligations and other long-term liabilities. Our liquidity may also be utilized to fund potential acquisitions in future periods, as well as potential future cash requirements related to the Enercon acquisition, including potential Earnout Payments that may become due and the put-call options under the Enercon shareholders’ agreement, pursuant to which Bel has the current intention to purchase the remaining 20% interest by early 2027. See the “Liquidity and Capital Resources” discussion appearing in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. We believe that our current liquidity position and future cash flows from operations will enable us to fund our operations, both in the next twelve months and in the longer term.

Current wording

Our principal sources of liquidity include $57.7 million of cash and cash equivalents at September 30, 2025, cash provided by operating activities and borrowings available under our credit facility. We expect to use this liquidity for operating expenses, investments in working capital, capital expenditures, interest, taxes, lease and purchase obligations, pension benefit obligations, dividends, purchases of common stock under our Repurchase Program, and debt obligations and other long-term liabilities. Our liquidity may also be utilized to fund potential acquisitions in future periods, as well as potential future cash requirements related to the Enercon acquisition, including potential Earnout Payments that may become due and the put-call options under the Enercon shareholders’ agreement, pursuant to which Bel has the current intention to purchase the remaining 20% interest by early 2027. See the “Liquidity and Capital Resources” discussion appearing in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. We believe that our current liquidity position and future cash flows from operations will enable us to fund our operations, both in the next twelve months and in the longer term.

Previous wording

During the six months ended June 30, 2025, our cash and cash equivalents decreased by $9.0 million. This decrease was primarily due to the following:

Current wording

During the nine months ended September 30, 2025, our cash and cash equivalents decreased by $10.5 million. This decrease was primarily due to the following:

Previous wording

During the six months ended June 30, 2025, our accounts receivable increased by $8.2 million due to higher sales volume in the second quarter. Days sales outstanding (DSO) was 66 days at June 30, 2025 and 68 days at December 31, 2024. Inventory increased by $0.1 million at June 30, 2025 compared to December 31, 2024, primarily driven by an increase in raw materials and work in progress, partially offset by a decline in finished goods. Inventory turns were 2.2 at June 30, 2025 as compared to 2.1 at December 31, 2024.

Current wording

During the nine months ended September 30, 2025, our accounts receivable increased by $13.1 million due to higher sales volume in the third quarter of 2025 as compared to the fourth quarter of 2024. Days sales outstanding (DSO) was 65 days at September 30, 2025 and 68 days at December 31, 2024. Inventory increased by $1.7 million at September 30, 2025 compared to December 31, 2024, primarily driven by an increase in raw materials and work in progress, partially offset by a decline in finished goods. Inventory turns were 2.4 at September 30, 2025 as compared to 2.1 at December 31, 2024.

Previous wording

Cash and cash equivalents, held to maturity U.S. Treasury securities and accounts receivable comprised approximately 19.0% of our total assets at each June 30, 2025 and at December 31, 2024. Our current ratio (i.e., the ratio of current assets to current liabilities) was 3.1 to 1 at June 30, 2025 and 2.9 to 1 at December 31, 2024. At June 30, 2025 and December 31, 2024, $45.1 million and $48.4 million, respectively (or 76% and 71%, respectively), of our cash and cash equivalents was held by our foreign subsidiaries. We repatriated $15.0 million of funds from outside of the U.S. during the six months ended June 30, 2025. We continue to analyze our global working capital and cash requirements and the potential tax liabilities attributable to further repatriation, and we have yet to make any further determination regarding repatriation of funds from outside the U.S. to fund our U.S. operations in the future. In the event these funds were needed for our U.S. operations, we would be required to accrue and pay U.S. state taxes and any applicable foreign withholding taxes to repatriate these funds.

Current wording

Cash and cash equivalents, held to maturity U.S. Treasury securities and accounts receivable comprised approximately 19.3% and 19.0% of our total assets at September 30, 2025 and at December 31, 2024, respectively. Our current ratio (i.e., the ratio of current assets to current liabilities) was 3.1 to 1 at September 30, 2025 and 2.9 to 1 at December 31, 2024. At September 30, 2025 and December 31, 2024, $46.5 million and $48.4 million, respectively (or 81% and 71%, respectively), of our cash and cash equivalents was held by our foreign subsidiaries. We repatriated $24.5 million of funds from outside of the U.S. during the nine months ended September 30, 2025. We continue to analyze our global working capital and cash requirements and the potential tax liabilities attributable to further repatriation, and we have yet to make any further determination regarding repatriation of funds from outside the U.S. to fund our U.S. operations in the future. In the event these funds were needed for our U.S. operations, we would be required to accrue and pay U.S. state taxes and any applicable foreign withholding taxes to repatriate these funds.

Previous wording

We expect foreseeable liquidity and capital resource requirements in the ordinary course to be met through existing cash and cash equivalents and anticipated cash flows from operations, as well as borrowings available under our revolving credit facility, if needed. Our material cash requirements arising in the normal course of business are outlined in Item 7A, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There were no material changes to our future cash requirements during the six months ended June 30, 2025.

Current wording

We expect foreseeable liquidity and capital resource requirements in the ordinary course to be met through existing cash and cash equivalents and anticipated cash flows from operations, as well as borrowings available under our revolving credit facility, if needed. Our material cash requirements arising in the normal course of business are outlined in Item 7A, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There were no material changes to our future cash requirements during the nine months ended September 30, 2025.

Previous wording

The Company had $150 million of available borrowings under its revolving credit facility at June 30, 2025, as further described below and in Note 11, "Debt". There are no mandatory principal payments due on the credit facility borrowings during 2025. The current balance of $250 million is due upon expiration of the credit facility on September 1, 2028. Anticipated interest payments due amount to $47.4 million, of which $7.5 million is expected to be paid in 2025 based on our debt balance and interest rate in place at June 30, 2025. At June 30, 2025, we were in compliance with our debt covenants, including the most restrictive covenant, the Fixed Charge Coverage Ratio. The unused credit available under the credit facility at June 30, 2025 was $150 million, all of which we had the ability to borrow without violating our Leverage Ratio covenant based on our existing consolidated EBITDA.

Current wording

The Company had $175 million of available borrowings under its revolving credit facility at September 30, 2025, as further described below and in Note 11, "Debt". There are no mandatory principal payments due on the credit facility borrowings during 2025. The current balance of $225 million is due upon expiration of the credit facility on September 1, 2028. Anticipated interest payments due amount to $36.6 million, of which $3.2 million is expected to be paid in 2025 based on our debt balance and interest rate in place at September 30, 2025. At September 30, 2025, we were in compliance with our debt covenants, including the most restrictive covenant, the Fixed Charge Coverage Ratio. The unused credit available under the credit facility at September 30, 2025 was $175 million, all of which we had the ability to borrow without violating our Leverage Ratio covenant based on our existing consolidated EBITDA.