Knowles Corp

1. Basis of Presentation

Background - Knowles Corporation (NYSE:KN) is a leading manufacturer of specialty electronic components. The Company designs parts that perform unique and critical functions for innovative technologies. Through extreme reliability, custom engineering, and scalable manufacturing, the Company enables businesses to succeed in the most demanding applications across medtech, defense, industrial, and electrification markets. Knowles high performance capacitors, radio frequency ("RF") filters, advanced medtech microphones, and balanced armature speakers enhance the performance of customer products. The Company's focus on the customer, combined with unique technology, proprietary manufacturing techniques, and global operational expertise, enable the Company to deliver innovative solutions across multiple applications. References to "Knowles," "the Company," "we," "our," and "us" refer to Knowles Corporation and its consolidated subsidiaries.

Financial Statement Presentation - The accompanying unaudited interim Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“GAAP” or “U.S. GAAP”) for complete financial statements. These unaudited interim Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2025 included in the Company’s Annual Report on Form 10-K.

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. Management uses historical experience and all available information to make these estimates. The unaudited interim Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair statement of results for these interim periods.

On December 27, 2024, the Company completed the sale of the Consumer MEMS Microphones ("CMM") business to Syntiant Corp. ("Syntiant"). See Note 3. Discontinued Operations for additional information related to this transaction. The results of operations for CMM, including the impacts of the sale, have been classified as discontinued operations for all periods presented.

Transactions with Syntiant -As partial consideration for the sale of CMM on December 27, 2024, the Company received Series D-2 preferred stock of Syntiant. See Note 3. Discontinued Operations for additional information related to this transaction. The Company accounts for this investment using the cost method, measured at its historical cost, which was the fair value of the consideration received from Syntiant for the sale of CMM, plus any non-cash dividend earned. The balance of this investment was $83.4 million as of both September 30, 2026 and December 31, 2025, and is classified as “Investment in affiliate” on the Consolidated Balance Sheet.

In connection with the sale of CMM, the Company provided financing of $6.4 million to Syntiant, which was utilized to fund Syntiant's requirement to have $40.0 million of cash on its balance sheet at closing. This note is junior to Syntiant's debt financing and matures on March 28, 2029. This note bore interest at the prime rate until June 28, 2025, at which time the interest rate increased to 13.0%. The interest rate on this note was reduced to 8.0% effective May 11, 2026 in connection with an amendment executed at the time. The balance of this note was $5.9 million as of both September 30, 2026 and December 31, 2025 and is classified within "Other assets and deferred charges" on the Consolidated Balance Sheet.

The Company shared in certain separation costs with Syntiant related to the sale of CMM pursuant to a credit for up to $13.5 million. Under the terms of the separation cost credit, the Company was required to reimburse Syntiant 100% for the first $7.0 million of separation costs incurred and 50% for those costs in excess of $7.0 million, up to the maximum established separation cost credit of $13.5 million. The balance of the separation credit was $4.8 million at December 31, 2025 and was classified within "Other accrued expenses" on the Consolidated Balance Sheet; the remaining separation credit was paid to Syntiant in the third quarter of 2026.

The Company leases portions of its facilities to Syntiant, for which lease payments of $0.3 million and $2.6 million were applied to the separation credit for the nine months ended September 30, 2026 and 2025, respectively. The Company also subleases portions of its manufacturing facilities to Syntiant at cost. The portion of operating lease right-of-use assets subleased by Syntiant totaled approximately $5.1 million and $5.2 million as of September 30, 2026 and December 31, 2025, respectively.

The Company recognized revenue for transactions with Syntiant totaling $1.2 million and $4.4 million during the three months ended September 30, 2026 and 2025, respectively, and $8.3 million and $12.7 million during the nine months ended September 30, 2026 and 2025, respectively. These revenues are reflected in the results of the MedTech & Specialty Audio segment. Receivables, net include $0.7 million and $4.2 million due from Syntiant at September 30, 2026 and December 31, 2025, respectively.

During the second quarter of 2025, the Company engaged with Syntiant to sell certain machinery and equipment associated with the MedTech & Specialty Audio segment for a nominal selling price. The Company recorded an impairment charge of $3.6 million for the nine months ended September 30, 2025 to write down the carrying value of these assets to fair value based on the selling price.

Share Repurchase Program -The Company maintains a share repurchase program, that was initially approved by its Board of Directors in February 2020, authorizing the repurchase of up to $100.0 million of the Company's common stock. The share repurchase program does not have an expiration date, and the Board of Directors has authorized the expansion of the program over the years. The authorization was increased by $150.0 million in April 2022, and increased by an additional $150.0 million in February 2025, for a total of $400.0 million in aggregate value. The timing and amount of any shares repurchased will be determined by the Company based on its evaluation of market conditions and other factors, and will be made in accordance with applicable securities laws in either the open market or in privately negotiated transactions. The Company is not obligated to purchase any shares under the program, and the program may be suspended or discontinued at any time. Any shares repurchased will be held as treasury stock.

During the nine months ended September 30, 2026 and 2025, the Company repurchased 1,387,421 and 3,120,574 shares of common stock for a total of $47.5 million and $55.0 million, respectively. At September 30, 2026, the Company had $81.5 million remaining that may yet be repurchased under the share repurchase program.

Non-cash Operating Activities - Operating lease liabilities arising from obtaining right-of-use assets for the nine months ended September 30, 2026 and 2025 were $1.5 million and $15.6 million, respectively.

Non-cash Investing Activities - Purchases of property, plant, and equipment included in accounts payable at September 30, 2026 and 2025 were $1.4 million and $3.4 million, respectively.

2. Recent Accounting Standards

In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2024-03 to provide additional information about specific expense categories in the notes to the financial statements at interim and annual reporting periods. This guidance requires that a public business entity disclose amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption presented on the face of the income statement and a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. This standard also requires an entity disclose the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. In accordance with the requirements of the standard, the Company intends to adopt ASU 2024-03 prospectively for its annual reporting for the year ended December 31, 2027 and for its interim reporting for the three months ended March 31, 2028. The Company expects that the adoption of ASU 2024-03 will expand its disclosures, but does not expect it to have a material impact on its financial position, results of operations, or cash flows.

3. Discontinued Operations

On December 27, 2024, the Company completed the sale of CMM to Syntiant. The total consideration for this transaction was approximately $140.8 million, consisting of $63.6 million in cash ($58.0 million net of cash sold), and Syntiant Series D-2 preferred stock with a fair value of $77.2 million. The Company shared in certain separation costs pursuant to a credit for up to $13.5 million, which the buyer applied to specified separation costs post-closing. The Company recorded a gain on sale of $0.8 million for the nine months ended September 30, 2026 and a loss on sale of $1.6 million for the nine months ended September 30, 2025 related to working capital adjustments and costs associated with this transaction. The purchase price for this transaction has now been finalized.

During the nine months ended September 30, 2026, the Company recorded net expense of $1.0 million to update its estimates regarding certain tax liabilities related to CMM's historical operations.

The disposition of CMM meets the criteria described in ASC 205-20, Presentation of Financial Statements – Discontinued Operations. In accordance with this guidance, the Company has classified the results of operations of CMM, including the impacts of the sale, as discontinued operations for all periods presented as this disposal represents a strategic shift that has a major effect on the Company’s results of operations.

Results of the Company’s discontinued operations were as follows:

There wasno depreciation, amortization of intangible assets, or capital expenditures related to discontinued operations during the three and nine months ended September 30, 2026 or 2025.

4. Inventories

The following table details the major components of inventories:

(1) The decrease in reserves during the nine months ended September 30, 2026 includes the disposal of previously reserved inventory.

5. Property, Plant, and Equipment, net

The following table details the major components of property, plant, and equipment, net:

Depreciation expense totaled $5.9 million and $5.0 million for the three months ended September 30, 2026 and 2025, respectively. For the nine months ended September 30, 2026 and 2025 depreciation expense totaled $16.8 million and $15.0 million, respectively.

During the nine months ended September 30, 2025, the Company recorded an impairment charge of $3.6 million to write down the carrying value of certain machinery and equipment to its expected selling price. See also "Transactions with Syntiant" in Note 1. Basis of Presentation.

6. Goodwill and Other Intangible Assets

There wereno changes in the carrying value of goodwill by reportable segment for thenine months ended September 30, 2026.

Other Intangible Assets

The gross carrying value and accumulated amortization for each major class of intangible assets are as follows:

Amortization expense totaled $4.0 million for both the three months ended September 30, 2026 and 2025. For the nine months ended September 30, 2026 and 2025 amortization expense totaled $12.0 million and $12.1 million, respectively.

Amortization expense for the next five years, based on current definite-lived intangible balances, is estimated to be as follows:

7. Other Accrued Expenses and Other Liabilities

The following table details the major components of other accrued expenses:

The following table details the major components of other liabilities:

(1) The Company did not recognize any material revenue during the nine months ended September 30, 2026 that was included in deferred revenue at December 31, 2025; the majority of the remaining underlying performance obligations are expected to be fulfilled by the end of 2028.

(2) In connection with the sale of CMM on December 27, 2024, the Company shared in certain separation costs with the buyer pursuant to a credit of up to $13.5 million that the buyer applied to specified separation costs post-closing. See Note 1. Basis of Presentation.

8. Restructuring and Related Activities

Restructuring and related activities are designed to better align the Company's operations with current market conditions through targeted facility consolidations, headcount reductions, and other measures to further optimize operations.

The Company recorded restructuring charges of $0.6 million and $1.0 million during the three and nine months ended September 30, 2026, respectively. The Company recorded charges of $0.5 million and $0.7 million within Gross profit for the three and nine months ended September 30, 2026, respectively, and $0.1 million and $0.3 million within Operating expenses for the three and nine months ended September 30, 2026, respectively.

The Company recorded restructuring charges of $0.3 million and $3.2 million during the three and nine months ended September 30, 2025, respectively, related to headcount reductions across the Company primarily to rightsize operations subsequent to the sale of CMM. The Company recorded charges of $0.2 million and $0.7 million within Gross profit for the three and nine months ended September 30, 2025, respectively, and $0.1 million and $2.5 million within Operating expenses for the three and nine months ended September 30, 2025.

The following table details restructuring charges incurred by reportable segment for the periods presented:

The following table details the Company’s severance and other restructuring accrual activity:

All severance and restructuring accruals are reflected within "Other accrued expenses" on the Consolidated Balance Sheet at both September 30, 2026 and December 31, 2025.

9. Borrowings

Borrowings consist of the following:

(1) There areno required principal payments due until maturity in February 2028.

Total debt principal payments over the next five years are as follows:

Revolving Credit Facility

On February 8, 2023, the Company entered into an Amended and Restated Credit Agreement (the "A&R Credit Agreement") that amends and restates the prior Credit Agreement, dated September 4, 2020, and provides for a senior secured revolving credit facility with borrowings in an aggregate principal amount at any time outstanding not to exceed $400.0 million (the "Credit Facility"). The A&R Credit Agreement, among other things, extends the maturity date of the Credit Facility from January 2, 2024 to February 8, 2028, replaces the London Inter-Bank Offered Rate (“LIBOR”) with the Term Secured Overnight Financing Rate (“Term SOFR”) as a reference rate available for borrowings, amends the minimum Interest Coverage Ratio, and amends certain other financial covenants with which the Company must comply, as described below.

On September 25, 2023, the Company amended its A&R Credit Agreement to, among other things, (a) permit the Company in connection with the acquisition of Cornell Dubilier ("CD"), to incur senior priority seller financing indebtedness (the “Seller Note”) in an aggregate principal amount of $122.9 million secured by certain assets (including equity interests) acquired in connection with such acquisition and the capital stock of Cornell Dubilier, LLC (the “Acquisition Assets”), which matured two years after the effective date of such Seller Note (the “Seller Note Maturity Date”) and (b) extend the requirement to pledge the Acquisition Assets that would otherwise constitute collateral under the Credit Agreement to the date that is 90 days after the Seller Note Maturity Date. All other terms remain the same as the A&R Credit Agreement dated February 8, 2023.

Up to $100.0 million of the Credit Facility will be available in Euro, Pounds Sterling, and other currencies requested by the Company and up to $50.0 million of the Credit Facility will be made available in the form of letters of credit. Undrawn amounts under the Credit Facility accrue a commitment fee at a per annum rate of 0.225% to 0.350%, based on a leverage ratio grid.

At any time during the term of the Credit Facility, the Company may request to increase the commitments under the Credit Facility or to establish one or more incremental term loan facilities under the Credit Facility in an aggregate principal amount not to exceed the sum of $200.0 million, plus additional amounts, so long as the senior secured leverage ratio does not exceed 2.00 to 1.00.

The A&R Credit Agreement includes requirements, to be tested quarterly, that the Company maintains (i) a minimum ratio of Consolidated EBITDA to consolidated cash interest expense of 3.00 to 1.00, (the "Interest Coverage Ratio"), (ii) a ratio of total indebtedness, minus netted cash in an aggregate amount not to exceed $50.0 million, to Consolidated EBITDA of 3.75 to 1.00 (the "Total Net Leverage Ratio"), and (iii) a maximum ratio of senior net secured indebtedness to Consolidated EBITDA of 3.25 to 1.00 (the "Senior Secured Net Leverage Ratio"). For these ratios, Consolidated EBITDA and consolidated interest expense are calculated using the most recent four consecutive fiscal quarters in a manner defined in the A&R Credit Agreement. At September 30, 2026, the Company was in compliance with these covenants and it expects to remain in compliance with all of its debt covenants over the next twelve months.

The interest rates under the A&R Credit Facility will be, at the Borrowers' option (1) (A) in the case of borrowings denominated in U.S. dollars Term SOFR, (B) in the case of borrowings denominated in Sterling, Daily Simple Sonia, or (C) for borrowings denominated in Euro, EURIBOR, in each case, plus the rates per annum determined from time to time based on the total net leverage ratio of the Company as of the end of and for the most recent period of four fiscal quarters for which financial statements have been delivered (the "Applicable Margin"); or (2) in the case of borrowings denominated in U.S. dollars, alternate base rate ("ABR") (as defined in the A&R Credit Agreement) plus the Applicable Margin. The Applicable Margin for Term SOFR, Daily Simple Sonia, or EURIBOR could range from 1.50% to 2.50% while the Applicable Margin for ABR could range from 0.50% to 1.50%.

The weighted-average interest rate on the Company's borrowings under the Credit Facility was 5.32% and 6.18% for the nine months ended September 30, 2026 and 2025, respectively. The weighted-average commitment fee on the revolving line of credit was 0.23% and 0.25% for the nine months ended September 30, 2026 and 2025, respectively.

Seller Note

In connection with the acquisition of Cornell Dubilier on November 1, 2023, the Company obtained an interest-free Seller Note with aggregate principal payments of $122.9 million. The Company recorded the Seller Note on the acquisition date at its present value of $109.9 million by discounting the future principal payments using an imputed rate of interest of approximately 7.1% in accordance with accounting guidance in ASC 835, Interest. The Company has made a successful indemnity claim against the Seller Note of $0.2 million. The Company repaid $50.0 million of the Seller Note on November 1, 2024 and the remaining $72.7 million on October 31, 2025. The Company recognized imputed interest expense on the Seller Note of approximately $1.3 million and $3.8 million for the three and nine months ended September 30, 2025, respectively.

10. Other Comprehensive Earnings

The amounts recognized in other comprehensive (loss) earnings were as follows:

The following tables summarize the changes in balances of each component of accumulated other comprehensive earnings, net of tax during the nine months ended September 30, 2026 and 2025:

The following tables summarize the amounts reclassified from accumulated other comprehensive loss to earnings:

11. Income Taxes

Income taxes for the interim periods presented have been included in the accompanying Consolidated Financial Statements on the basis of an estimated annual effective tax rate ("ETR"). The determination of the consolidated provision for income taxes requires management to make certain judgments and estimates. Changes in the estimated level of annual pre-tax earnings or loss, tax laws, and changes resulting from tax audits can affect the overall ETR, which impacts the level of income tax expense or benefit and net income or loss. Judgments and estimates related to the Company’s projections and assumptions are inherently uncertain and therefore, actual results could differ materially from projections.

The Company's ETR from continuing operations for the three and nine months ended September 30, 2026 was 23.7% and 17.1% (inclusive of discrete items totaling $4.7 million of tax benefit), respectively. The discrete items impacting the tax benefit for the nine months ended September 30, 2026 were primarily attributable to stock-based compensation. Absent the discrete items, the ETR from continuing operations for the nine months ended September 30, 2026 was 24.8%. The Company's ETR from continuing operations for the three and nine months ended September 30, 2025 was 19.3% (inclusive of discrete items totaling $0.2 million of tax expense) and 26.2% (inclusive of discrete items totaling $0.1 million of tax benefit), respectively. The discrete items impacting the tax provision for the three and nine months ended September 30, 2025 were primarily attributable to stock-based compensation. Absent the discrete items, the ETR from continuing operations for the three and nine months ended September 30, 2025 was 18.4% and 26.5%, respectively.

The Company accrues taxes in various countries where it generates income and applies a valuation allowance in other jurisdictions, which resulted in the provision for the nine months ended September 30, 2026 and 2025, respectively.

12. Equity Incentive Program

The following table summarizes the stock-based compensation expense recognized by the Company for the periods presented:

Stock Options

No stock options were granted during the nine months ended September 30, 2026 or 2025.

The following table summarizes the Company's stock option activity for the nine months ended September 30, 2026:

(1) The number of stock options exercised includes shares that the Company withheld on behalf of employees to satisfy the option exercise price (in the instances of net exercises) as well as statutory tax withholding requirements.

There wasno unrecognized compensation expense related to stock options at September 30, 2026.

Restricted Stock Units

The following table summarizes the Company's restricted stock unit ("RSU") activity for the nine months ended September 30, 2026:

(1) The number of RSUs vested includes shares that the Company withheld on behalf of employees to satisfy statutory tax withholding requirements.

At September 30, 2026, the Company had $20.5 million of unrecognized compensation expense related to its RSUs that it expects to recognize over a weighted-average period of 1.5 years.

Performance Share Units

Awards with market conditions

The Company grants performance share units (“PSUs”) to senior management for which the number of PSUs that may be earned and vest is based on total shareholder return (“TSR”) relative to the component companies of the Russell 2000 Index over a three-year performance period. These awards will cliff vest three years following the grant date. PSUs will be settled in shares of the Company's common stock. Depending on the Company's overall performance relative to the applicable measures, the size of the PSU awards are subject to adjustment, up or down, resulting in awards at the end of the performance period that can range from 0% to 225% of target. The Company ratably recognizes the expense over the applicable service period for each PSU grant. During the nine months ended September 30, 2026 and 2025, respectively, the Company granted 259,580 and 365,051 PSUs with market conditions.

The fair value of PSUs with market conditions was determined by using a Monte Carlo simulation with the following assumptions:

Awards with performance conditions

The Company also grants PSUs to certain employees for which the number of PSUs that may be earned and vest is based on achievement of internal company targets. The fair value of each PSU with a performance condition is equal to the share price on the date of grant. The Company ratably recognizes the expense for these awards over the applicable service period and adjusts the expense for the expected achievement of performance conditions as necessary.

During the nine months ended September 30, 2026, the Company granted 27,515 PSUs with performance conditions that had a grant date fair value of $0.7 million. During the nine months ended September 30, 2025, the Company granted 89,967 PSUs with performance conditions that had a grant date fair value of $1.7 million. The 2025 grant included a special PSU award for the Chief Executive Officer of 81,788 target PSUs with a grant date fair value of $1.5 million. This award is eligible to vest based on the achievement of a minimum non-GAAP diluted earnings per share amount and specified revenue goals over a potential five-year performance period. If the goals are not met during the initial three-year performance period, it may be extended an additional two years at a reduced payout level. Achievement of this award could range from 0% to 400% of the target number of PSUs.

The following table summarizes the Company's PSU activity for the nine months ended September 30, 2026:

(1) The number of PSUs shown reflects 100% of the target award; actual payouts may differ based on performance.

(2) The number of PSUs vested includes shares that the Company withheld on behalf of employees to satisfy statutory tax withholding requirements.

At September 30, 2026, the Company had $13.0 million of unrecognized compensation expense related to PSUs that it expects to recognize over a weighted-average period of 1.3 years.

13. Earnings per Share

Basic and diluted earnings per share were computed as follows:

(1)In accordance with ASC 260, Earnings Per Share, the control number for determining whether including potential common shares in the diluted EPS computation would be antidilutive is earnings from continuing operations.

The following table is a reconciliation of the share amounts used in computing earnings per share:

For the three and nine months ended September 30, 2026, the weighted-average number of antidilutive potential common shares for stock-based awards excluded from the diluted earnings per share calculation above was 0.3 million and 0.4 million, respectively. For both the three and nine months ended September 30, 2025, the weighted-average number of antidilutive potential common shares for stock-based awards excluded from the diluted earnings per share calculation above was 0.8 million.

14. Commitments and Contingent Liabilities

From time to time, the Company is involved in various legal proceedings and claims arising in the ordinary course of its business. The majority of these claims and proceedings relate to commercial, warranty, employment, and intellectual property matters. Although the ultimate outcome of any legal proceeding or claim cannot be predicted with certainty, based on present information, including management’s assessment of the merits of the particular claim, the Company believes that the disposition of these legal proceedings or claims, individually or in the aggregate, after taking into account recorded accruals and the availability and limits of insurance coverage, will not have a material adverse effect on its cash flow, results of operations, or financial condition.

The Company owns many patents and other intellectual property pertaining to its products, technology, and manufacturing processes. Some of the Company's patents have been and may continue to be infringed upon or challenged by others. In appropriate cases, the Company has taken and will take steps to protect and defend its patents and other intellectual property, including through the use of legal proceedings in various jurisdictions around the world. Such steps have resulted in and may continue to result in retaliatory legal proceedings, including litigation or other legal proceedings in various jurisdictions and forums around the world alleging infringement by the Company of patents owned by others. The costs of investigations and legal proceedings relating to the enforcement and defense of the Company’s intellectual property may be substantial. Additionally, in multi-forum disputes, the Company may incur adverse judgments with regard to certain claims in certain jurisdictions and forums while still contesting other related claims against the same opposing party in other jurisdictions and forums.

Intellectual Property Infringement Claims

The Company may, on a limited basis, provide contractual indemnities for certain losses that arise out of claims that its products infringe on the intellectual property of others. It is not possible to determine the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Historically, the Company has not made significant payments under such indemnity arrangements. The Company’s legal accruals associated with these indemnity arrangements were not significant at September 30, 2026 and December 31, 2025.

15. Segment Information

The Company'stwo reportable segments are Precision Devices and MedTech & Specialty Audio. Information regarding the Company’s reportable segments is as follows:

(2) Other expenses primarily include certain foreign currency exchange rate adjustments.

(2) Other expenses primarily include foreign currency exchange rate impacts on restructuring balances.

(2) Other expenses primarily include certain foreign currency exchange rate adjustments.

(2) Other expenses primarily include foreign currency exchange rate impacts on restructuring balances.

Information regarding assets of the Company's reportable segments is as follows:

(1) Corporate assets at both September 30, 2026 and December 31, 2025 include $83.4 million of Syntiant preferred stock received in partial consideration for the sale of CMM on December 27, 2024 and a note receivable from Syntiant totaling $5.9 million. Corporate assets also include the portion of right-of-use operating lease assets subleased by Syntiant, which totaled approximately $5.1 million and$5.2 million at September 30, 2026 and December 31, 2025, respectively.

The following table details revenues by geographic location. Revenues are attributed to regions based on the location of the Company's direct customer, which in some instances is an intermediary and not necessarily the end user. The Company's businesses are based primarily in North America, Asia, and Europe.

Receivables, net from contracts with customers were $102.4 million and $91.7 million as of September 30, 2026 and December 31, 2025, respectively.