BEL FUSE INC /NJ
For the period ended Mar 31, 2026. Filed May 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
BELFB$206.79+5.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001437749-25-032940
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001437749-26-014903
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 57 previous paragraphs and 56 current paragraphs.
21 unchanged; 15 reworded; 20 added; 21 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
We design, manufacture, and market critical electronic components, systems and solutions for customers in aerospace, defense, industrial, and data-driven markets. Understanding that our customers face increasingly complex technical challenges, Bel delivers a comprehensive portfolio of solutions including power systems, high-reliability connectors and cable assemblies, circuit protection, and networking products that enable Original Equipment Manufacturers (OEMs) to bring their innovations to market. Bel partners closely with customers to deliver both customized and standard solutions tailored to their specific applications and performance requirements. With manufacturing facilities and technical support teams worldwide, Bel serves as a strategic partner to customers who require proven reliability in demanding end markets.
Current report
Effective March 31, 2026, we realigned our organizational and reporting structure and changed the reportable segment views used by the Chief Operating Decision Maker to evaluate operating performance and allocate resources. As a result, we now operate and report results through the following two reportable segments:
Current report
Our product portfolio includes power solutions, connectors and cable assemblies, circuit protection devices, and networking products. We sell standard products and provide customized solutions to meet customer specifications. We maintain manufacturing operations and engineering support capabilities in multiple geographic regions and sell our products globally. We did not incur material restructuring charges as a result of this realignment.
Current report
For comparability, prior‑period segment information has been recast to conform to the current period presentation.
Current report
In the three months ended March 31, 2026,56% of our revenues were derived from Aerospace, Defense & Rugged Solutions and 44% from Industrial Technology & Data Solutions.
Current report
*Aerospace, Defense & Rugged Solutions: *
Current report
Net sales increased by $16.7 million, or 20.1%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by higher sales volumes in defense applications, which rose by $9.4 million (18.7%), and in commercial aerospace applications, which rose by $4.2 million (21.4%). Sales into rugged industrial applications also increased by $3.1 million (23.2%).
Current report
Gross margin improved from the prior-year period, mainly due to a more favorable product mix and stronger operational efficiencies tied to facility consolidation initiatives. These benefits were partially offset by an unfavorable impact from foreign currency movements, primarily due to the weakening of the U.S. dollar against the Israeli shekel and Mexican peso.
Current report
Industrial Technology & Data Solutions
Current report
Net sales increased by $9.6 million, or 13.8%, for the three months ended March 31, 2026, compared to the prior-year period. The increase was driven by growth in data solutions applications, which rose by $9.5 million (30.4%), and in industrial applications, which rose by $4.3 million (16.7%). This growth was partially offset by a decline in transportation applications, which decreased by $4.2 million (33.3%).
Current report
Gross margin decreased compared to the prior-year period, primarily due to an unfavorable product mix and the unfavorable impact of foreign currency exchange rate movements, principally related to the Chinese renminbi relative to the U.S. dollar.
Current report
As a percentage of sales, material costs increased to 30.2% in 2026 from 29.4% in 2025. The increase in material cost as a percentage of sales was primarily due to a shift in product and production mix toward power products in the Aerospace, Defense & Rugged Solutions segment and the Industrial Technology & Data Solutions segment, which generally have higher material content.
Current report
As a percentage of sales, labor costs decreased to 7.9% in 2026 from 8.4% in 2025, primarily reflecting higher sales volume and product mix with less labor-intensive products manufactured by outside manufacturers. This benefit was partially offset by unfavorable foreign currency movements, including the Israeli shekel and, Chinese renminbi which increased labor-related costs when translated into U.S. dollars.
Current report
For the three months ended March 31, 2026, overhead and other manufacturing costs were 22.9% of sales, compared to 23.6% of sales for the three months ended March 31, 2025. Although these costs increased in absolute dollars year over year, the improvement as a percentage of sales was primarily driven by higher sales volumes in 2026, which resulted in more favorable absorption of largely fixed manufacturing costs, including support labor and related benefits, depreciation and amortization, and facility-related costs (rent, utilities, and insurance).
Current report
Research and Development Expense
Current report
Selling, general and administrative (“SG&A”) expenses totaled $36.7 million for the three months ended March 31, 2026, an increase of $7.2 million from $29.5 million for the three months ended March 31, 2025. The increase reflected non-recurring items, including $1.4 million of acquisition-related costs associated with the acquisition of dataMate and approximately $1.0 million of onboarding and overlapping salary and benefit costs related to the CEO and segment President positions, $0.7 in higher stock compensation expense. Other factors driving the year over year increase include higher commissions, an increase and overlap in audit fees, higher IT system costs and the annual salary increase which took effect on March 1, 2026. Additionally, bonus expense was $1.3 million higher during the first quarter of 2026 as there was a bonus reversal in the first quarter of 2025 which did not recur in the 2026 period.
Current report
Interest expense was $2.5 million for the three months ended March 31, 2026, compared to $4.2 million for the three months that ended March 31, 2025, representing a decrease of $1.7 million. The decrease was primarily due to lower average outstanding borrowings under the Company’s credit facilities during the 2026 period compared to the prior-year period. For further information on the Company's outstanding debt, see "Liquidity and Capital Resources" below and Note 10, "Debt."
Current report
Other (Expense) Income, Net
Current report
Net cash provided by operating activities was favorably impacted by changes in working capital during the three months ending March 31, 2026, primarily due to an increase in accounts payable of $9.7 million and decreases in accounts receivable of $3.8 million and unbilled receivables of $1.0 million. Days sales outstanding (“DSO”) improved to 61 days on March 31, 2026 from 64 days on December 31, 2025, which is consistent with improved cash conversion and the Company’s ongoing focus on receivables management. These benefits were partially offset by an increase in inventories of $12.2 million, primarily due to higher levels of raw materials, work in process, and finished goods. The inventory increase was driven by strong customer demand and increased purchasing and production activity to support order requirements and manage lead times, as well as the impact of higher material costs that increased the dollar value of on-hand inventory. The working capital benefit was also partially offset by decreases in accrued expenses of $6.6 million, accrued restructuring costs of $0.3 million, and income taxes payable of $0.4 million, which primarily reflect cash payments and the timing of settlements of previously accrued obligations. Changes in other current assets and other assets also affected operating cash flows, with other current assets increasing by $0.5 million and other assets decreasing by $1.0 million during the quarter.
Current report
Inventory turns were 2.4 on March 31, 2026, compared to 2.5 on December 31, 2025. While demand remained strong, the modest decline in turns reflects the higher average inventory balance during the quarter, including additional inventory being held to support customer delivery schedules, lead-time requirements, and higher material costs.
Removed paragraphs (21)
Previous report
We design, manufacture and market a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the defense, commercial aerospace, networking, telecommunications, computing, general industrial, high-speed data transmission, transportation and eMobility industries. Our portfolio of products also finds application in the automotive, medical and consumer electronics markets.
Previous report
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 report
Power Solutions and Protection:
Previous report
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 report
These gains were partially offset by declines in several categories:
Previous report
The improvement in gross margin for the Power segment in Q3 2025 compared to Q3 2024 was primarily due to increased sales and favorable product mix due to acquisition of Enercon. In the first nine months of 2024, gross margin was higher due to non-recurring items, which were recorded at a 100% gross margin.
Previous report
Connectivity Solutions:
Previous report
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 report
For the nine months ended September 30, 2025, total Connectivity Solutions sales rose by $4.0 million (2.4%) compared to the prior year period, with commercial aerospace up $9.7 million (22.9%) and defense applications up $6.5 million (18.9%). These increases were partially offset by declines in distribution channel sales of $5.4 million (9.4%), with the remaining decrease attributable to industrial applications.
Previous report
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 report
Magnetic Solutions:
Previous report
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 report
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 report
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 report
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 report
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 report
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 report
Other Income (Expense), Net
Previous report
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 report
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 report
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.
Reworded paragraphs (15)
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 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 People’s Republic of China.
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 nine months ended September 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, as well as 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 three months ended March 31, 2026 and/or future results include the following:
Previous wording
Our revenue and gross margin by operating segment for the three and nine months ended September 30, 2025 and 2024 were as follows:
Current wording
Our revenue and gross margin by operating segment for the three months ended March 31, 2026 and 2025 were as follows:
Previous wording
Cost of sales as a percentage of revenue for thethree and nine months ended September 30, 2025 and 2024 consisted of the following:
Current wording
Cost of sales as a percentage of revenue for the three months ended March 31, 2026 and 2025 consisted of the following:
Previous wording
Research and Development ("R&D") Expense
Current wording
Research and development (“R&D”) expenses totaled $8.5 million for the three months ended March 31, 2026, an increase of $1.3 million from $7.2 million for the three months ended March 31, 2025. The increase was primarily attributable to higher R&D personnel costs, including approximately $0.5 million of higher labor and fringe benefits, and approximately $0.5 million of higher bonus expense related to the Company’s company-wide incentive program. The increase in R&D expense was broad-based across both Aerospace, Defense & Rugged Solutions and Industrial Technology & Data Solutions.
Previous wording
Selling, General and Administrative Expense (“SG&A”)
Current wording
Selling, General and Administrative Expense
Previous 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.
Current wording
Interest income for the three months ended March 31, 2026 was $0.2 million, down from $0.3 million for the same period in 2025.
Previous 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.
Current wording
Other expense, net was $3.5 million for the three months ended March 31, 2026, compared to other income, net of $2.6 million for the three months ended March 31, 2025. The year-over-year change was primarily driven by unfavorable foreign exchange impacts, resulting in a foreign exchange loss of $3.2 million from fluctuations in spot exchange rates of certain currencies against the U.S. dollar when translating and remeasuring balance sheet accounts at period end compared to foreign exchange transactional gain of $4.3 million during the three-month periods ended March 31, 2025. SERP investments resulted in a loss of $0.4 million in the first quarter of 2026 versus a gain of $0.3 million in the first quarter of 2025. Additionally, the Company recorded income of $0.3 million associated with its investment in innolectric during the first quarter of 2025.
Previous 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”.
Current wording
The Company’s effective tax rate will fluctuate based on the geographic regions in which the pretax profits are earned. Tax rates in the U.S. and Europe are generally comparable, while Asia generally has lower statutory. See Note 11, “Income Taxes”.
Previous 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.”
Current wording
For the three months ended March 31, 2026, the provision for income taxes was $2.8 million, compared to $5.5 million for the same period in 2025. Earnings before income taxes for the three months ended March 31, 2026, decreased by $6.0 million compared to the same period in 2025, primarily due to lower income worldwide. The Company’s effective tax rate for the three months ended March 31, 2026, was 15.8%, compared to 23.0% for the same period in 2025. The decrease in the effective tax rate was primarily driven by a benefit from restricted stock vesting, partially offset by changes in the mix of jurisdictional earnings and foreign valuation allowances on net operating losses. See Note 11, “Income Taxes.”
Previous 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.
Current wording
Our principal sources of liquidity include $59.4 million of cash and cash equivalents at March 31, 2026, 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 the potential 2026 Earnout Payment 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 discussion “Liquidity and Capital Resources” appearing in Item 7, and “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, 2025. 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 nine months ended September 30, 2025, our cash and cash equivalents decreased by $10.5 million. This decrease was primarily due to the following:
Current wording
During the three months ended March 31, 2026, our cash and cash equivalents increased by $1.6 million. This increase was primarily due to the following:
Previous 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.
Current wording
Cash and cash equivalents, and accounts receivable comprised approximately 18.9% and 19.2% of our total assets as of March 31, 2026 and at December 31, 2025, respectively. Our current ratio (i.e., the ratio of current assets to current liabilities) was 3.2 to 1 as of March 31, 2026 and 3.0 to 1 as of December 31, 2025. At March 31, 2026 and December 31, 2025, $47.3 million and $43.4 million, respectively (or 79% and 75%, respectively), of our cash and cash equivalents was held by our foreign subsidiaries. We repatriated $3.0 million of funds from outside of the U.S. during the three months ended March 31, 2026. 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 nine months ended September 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 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, 2025. There were no material changes to our future cash requirements during the three months ended March 31, 2026.
Previous 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.
Current wording
The Company had $195.5 million of available borrowings under its revolving credit facility at March 31, 2026. See Note 10, "Debt." There are no mandatory principal payments due on the credit facility borrowings during 2026. The current balance of $204.5 million is due upon expiration of the credit facility on September 1, 2028. Anticipated interest payments due amount to $25.9 million, of which $8.7 million is expected to be paid in 2026 based on our debt balance and interest rate in place as of March 31, 2026. As of March 31, 2026, 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 as of March 31, 2026 was $195.5 million, all of which we had the ability to borrow without violating our Leverage Ratio covenant based on our existing consolidated EBITDA.