Oil-Dri Corp of America

Previous wording

Consolidated gross profit in the nine months ended April 30, 2025, was $108.3 million, an increase of $16.2 million, or 18%, from gross profit of $92.1 million in the nine months ended April 30, 2024. Our gross margin (defined as gross profit as a percentage of net sales) in the nine months ended April 30, 2025, increased to 30.0% from 28.4% in the nine months ended April 30, 2024. This gross margin expansion was mainly driven by volume growth, which led to improved fixed cost coverage, and favorable product mix. However, for the nine months ended April 30, 2025, the overall domestic per ton cost of goods sold increased 5% compared to the same period of fiscal year 2024. The increase was primarily driven by our product mix across the nine months which resulted in higher overall per ton transportation and material costs, which increased 8% and 7%, respectively. These increases were slightly offset by a 2% decrease in packaging costs for the nine months ended April 30, 2025, when compared to the same period of fiscal year 2024.

Current wording

Consolidated gross profit in the three months ended October 31, 2025, was $35.5 million, a decrease of $5.3 million, or 13%, from gross profit of $40.8 million in the three months ended October 31, 2024. Gross margin (defined as gross profit as a percentage of net sales) in the three months ended October 31, 2025, decreased to 29.5% from 31.9% in the three months ended October 31, 2024. This reduction in gross margin was mainly driven by softer volume and higher costs, which led to unfavorable fixed cost coverage. For the three months ended October 31, 2025, the overall domestic per ton cost of goods sold increased 3% compared to the same period of fiscal year 2025. The increase was primarily driven by higher per ton manufacturing costs, including materials, which increased 8% when compared to three months ended October 31, 2024. These increases were slightly offset by a 6% decrease in per ton transportation costs, and 4% decrease in per ton packaging costs for the three months ended October 31, 2025, when compared to the three months ended October 31, 2024.

Previous wording

Total SG&A expenses of $55.7 million for the nine months ended April 30, 2025, were $2.4 million, or 5%, higher compared to $53.3 million for the nine months ended April 30, 2024. The increase was primarily driven by operating segment SG&A, which increased by $3.8 million, partially offset by a $1.4 million reduction in corporate unallocated expenses. SG&A expenses at the operating segments level are discussed below in the discussion of our segments' operating income. The decrease in corporate unallocated for the nine months ended April 30, 2025, was primarily due to a decrease in acquisition-related expenses incurred in the same period of fiscal year 2024.

Current wording

Total SG&A expenses of $18.5 million for the three months ended October 31, 2025, were $1.1 million, or 5%, lower compared to $19.6 million for the three months ended October 31, 2024. The decrease was primarily driven by operating segment SG&A, which decreased by $0.8 million, and to a lesser extent a $0.2 million reduction in corporate unallocated expenses. SG&A expenses at the operating segments level are discussed below.

Previous wording

Our unaudited Condensed Consolidated Balance Sheet as of April 30, 2025 and our unaudited Condensed Consolidated Statement of Cash Flows for the nine months ended April 30, 2025, show an increase of $12.0 million, or 49%, in total cash and cash equivalents from fiscal year-end 2024. The increase was driven primarily by positive cash flow from operations partially offset by cash used in investing and financing activities. Refer to the "Liquidity and Capital Resources" section below for more details.

Current wording

Our unaudited Condensed Consolidated Balance Sheet as of October 31, 2025 and our unaudited Condensed Consolidated Statement of Cash Flows for the three months ended October 31, 2025, show an $8.1 million decrease in total cash and cash equivalents from fiscal year-end 2025. The decrease was driven primarily by financing and investing activities, partially offset by positive cash flow from operations. Refer to the "Liquidity and Capital Resources" section below for more details.

Previous wording

Net sales of the Business to Business Products Group for the nine months ended April 30, 2025, increased $22.9 million, or 21%, compared to the nine months ended April 30, 2024, with growth in all three principal products within this segment. Net sales of our fluids purification products for the nine months ended April 30, 2025, increased $14.9 million, or 22%, compared to the nine months ended April 30, 2024, primarily driven by the increase in demand for products used in renewable diesel filtration. Net sales of our agricultural and horticultural chemical carrier products for the nine months ended April 30, 2025, increased $4.7 million, or 17% compared to the nine months ended April 30, 2024, mainly as a result of stronger demand, primarily as key customers resumed purchasing after working through inventory surpluses. Net sales of our animal health & nutrition products for the nine months ended April 30, 2025, increased $3.3 million, or 20%, compared to the nine months ended April 30, 2024, with growth across all regions mainly driven by favorable product mix.

Current wording

Net sales of the Business to Business Products Group for the three months ended October 31, 2025, decreased $4.1 million, or 9%, compared to the three months ended October 31, 2024, driven primarily by a reduction in sales of our fluid purification and animal health products, partial offset by an increase in sales of our agricultural and horticultural products. Net sales of our fluids purification products for the three months ended October 31, 2025, decreased $3.9 million, or 13%, compared to the three months ended October 31, 2024. This decrease was due to lower volumes, primarily of our products used in renewable diesel filtration, which were significantly higher in the first quarter of fiscal year 2025 when several new customers began operations in new plants. Net sales of our animal health & nutrition products for the three months ended October 31, 2025, decreased $1.5 million, or 25%, compared to the three months ended October 31, 2024, due to lower volume. Net sales of our agricultural and horticultural chemical carrier products for the three months ended October 31, 2025, increased $1.3 million, or 12%, compared to the three months ended October 31, 2024, evenly due to favorable mix, higher volume and higher prices.

Previous wording

Net sales of the Retail and Wholesale Products Group for the nine months ended April 30, 2025, increased $13.6 million, or 6%, compared to the nine months ended April 30, 2024, primarily driven by the introduction of crystal cat litter products. Domestic cat litter net sales, excluding co-packaged cat litter, were $168.4 million for the nine months ended April 30, 2025, an increase of $12.0 million, or 8%, when compared to the nine months ended April 30, 2024. This increase was primarily driven by $15.2 million of net sales from the introduction of crystal cat litter products, partially offset by a $3.3 million decrease in clay-based cat litter products. $2.6 million of this decrease was driven by customer bankruptcies and $2.0 million was due to the loss of a private label account. These losses were partially offset by other revenue gains. Net sales of co-packaged cat litter products increased 4% in the nine months ended April 30, 2025, compared to the nine months ended April 30, 2024. This increase was driven primarily by higher prices. Net sales of our domestic industrial and sports products were $33.2 million for the nine months ended April 30, 2025, an increase of $1.2 million, or 4%, when compared to the nine months ended April 30,

Current wording

Net sales of the Retail and Wholesale Products Group for the three months ended October 31, 2025, decreased $3.3 million, or 4%, compared to the three months ended October 31, 2024, mainly due to decrease in cat litter sales. Domestic cat litter net sales, excluding co-packaged cat litter, were $56.2 million for the three months ended October 31, 2025, a decrease of $3.6 million, or 6%, when compared to the three months ended October 31, 2024. $2.5 million of the decrease was tied to high demand in the first quarter of fiscal year 2025 due to a large promotion at a key account, and $1.2 million was due to a private label account that was lost in the second quarter of fiscal year 2025. Net sales of co-packaged cat litter products increased 8% in the three months ended October 31, 2025, compared to the three months ended October 31, 2024. This increase was driven primarily by higher volumes. Net sales of our domestic industrial and sports products were $10.9 million for the three months ended October 31, 2025, a decrease of $0.1 million, or 1%, when compared to the three months ended October 31, 2024, mainly driven by volume. Net sales by our subsidiary in Canada, which include both our cat litter and industrial products, remained relatively flat for the three months ended October 31, 2025, when compared to the three months ended October 31, 2024.

Previous wording

Foreign operations include our subsidiaries in Canada and Netherlands, which are reported in the Retail and Wholesale Products Group, and our subsidiaries in the United Kingdom ("UK"), Mexico, China and Indonesia, which are reported in the Business to Business Products Group. Net sales by our foreign subsidiaries for the nine months ended April 30, 2025, were $14.9 million, a decrease of 7%, compared to net sales of $16.0 million during the nine months ended April 30, 2024. The decrease was driven mainly by our subsidiary in China, and to a lesser extent Canada, offset by an increase in net sales in Mexico and the UK. Net sales of our subsidiary in China decreased $1.7 million, or 100%, in the nine months ended April 30, 2025, compared to the same period of fiscal year 2024 due to a sell-off of all existing inventory to a new master distributor, which occurred in the first quarter of fiscal year 2024. Sales to China are now directly through the Company and not through our subsidiary in China. Total net sales of our subsidiary in Canada decreased $0.2 million, or 2%, in the nine months ended April 30, 2025, compared to the nine months ended April 30, 2024, primarily due to the impact of foreign exchange rates. However, excluding the impact of foreign currency translation, net sales in local currency increased 2%, driven primarily by revenues from cat litter sales. Total net sales of our subsidiary in Mexico increased $0.6 million, or 47%, in the nine months ended April 30, 2025, compared to the nine months ended April 30, 2024, driven primarily by higher demand. Total net sales of our subsidiary in the UK increased $0.2 million, or 10%, in the nine months ended April 30, 2025, compared to the nine months ended April 30, 2024, primarily due to higher prices. Net sales by our foreign subsidiaries represented 4% and 5% of our consolidated net sales for the nine months ended April 30, 2025, and 2024, respectively.

Current wording

Foreign operations include our subsidiaries in Canada and Netherlands, which are reported in the Retail and Wholesale Products Group, and our subsidiaries in the United Kingdom ("UK"), Mexico, China and Indonesia, which are reported in the Business to Business Products Group. Net sales by our foreign subsidiaries were $5.1 million for both the three months ended October 31, 2025, and October 31, 2024. Net sales by our foreign subsidiaries represented 4% of our consolidated net sales for both the three months ended October 31, 2025, and October 31, 2024.

Previous wording

Our foreign subsidiaries reported net loss of $0.1 million for the nine months ended April 30, 2025, compared to net income of $0.6 million in the nine months ended April 30, 2024. The decrease in net income was primarily driven by the preliminary foreign VAT assessment recognized in the first quarter of fiscal year 2025 and the impact of foreign exchange in Canada.

Current wording

Our foreign subsidiaries reported net income of $0.2 million for the three months ended October 31, 2025, compared to net loss of $0.2 million in the three months ended October 31, 2024. The increase in net income was primarily driven by the preliminary foreign VAT assessment recognized in the first quarter of fiscal year 2025.

Previous wording

Identifiable assets of our foreign subsidiaries as of April 30, 2025, were $9.7 million, compared to $8.7 million as of July 31, 2024.

Current wording

Identifiable assets of our foreign subsidiaries as of October 31, 2025, were $8.9 million, compared to $9.0 million as of July 31, 2025.

Previous wording

Our principal liquidity needs are to fund our capital requirements, including funding working capital needs; purchasing and upgrading equipment, facilities, information systems, and real estate; supporting new product development; investing in infrastructure; repurchasing stock; paying dividends; and, from time to time, business acquisitions, and funding our debt service requirements. During the nine months ended April 30, 2025, we principally funded these short and long-term capital requirements using cash from current operations as well as cash generated from previous borrowings under our Series B, C and D Senior Notes and Credit Agreement. On September 30, 2024, we amended the Credit Agreement to, among other things, increase our line of credit from $45 million to $75 million, providing more financial flexibility. See Note 8 of the Notes to the unaudited Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for further information relating to our existing borrowings.

Current wording

Our principal liquidity needs are to fund our capital requirements, including funding working capital needs; purchasing and upgrading equipment, facilities, information systems, and real estate; supporting new product development; investing in infrastructure; repurchasing stock; paying dividends; and, from time to time, business acquisitions, and funding our debt service requirements. During the three months ended October 31, 2025, we principally funded these short and long-term capital requirements using cash from current operations as well as cash generated from previous borrowings under our Credit Agreement and Series B, C and D Senior Notes issued under the Note Agreement. See Note 8 of the Notes to the unaudited Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for further information relating to our existing borrowings.

Previous wording

The following table sets forth certain elements of our unaudited Condensed Consolidated Statements of Cash Flows (in thousands):

Current wording

Cash and cash equivalents, including restricted cash, totaled $42.4 million and $13.5 million as of October 31, 2025, and 2024, respectively. The following table sets forth certain elements of our unaudited Condensed Consolidated Statements of Cash Flows (in thousands):

Previous wording

In addition to net income, as adjusted for depreciation and amortization and other non-cash operating activities, the primary sources and uses of operating cash flows for the nine months ended April 30, 2025, were as follows:

Current wording

In addition to net income, as adjusted for depreciation and amortization and other non-cash operating activities, the primary sources and uses of operating cash flows for the three months ended October 31, 2025, were as follows:

Previous wording

Accounts receivable, net of allowances increased by $3.8 million in the nine months ended April 30, 2025, as compared to the nine months ended April 30, 2024. The increase in accounts receivable was driven primarily by higher net sales, offset by the level and timing of collections due to payment terms.

Current wording

Accounts receivable, net of allowances decreased by $3.1 million in the three months ended October 31, 2025, as compared to the three months ended October 31, 2024. The decrease in accounts receivable was driven primarily by a decrease in net sales and timing of collections due to payment terms.

Previous wording

Inventory increased by $2.5 million in the nine months ended April 30, 2025, as compared to the nine months ended April 30, 2024, mainly due to the building of finished goods inventory to meet anticipated demand.

Current wording

Inventory increased by $5.1 million in the three months ended October 31, 2025, as compared to the three months ended October 31, 2024, mainly due to the building of finished goods inventory and other additives to meet anticipated demand.

Previous wording

Prepaid expenses decreased by $1.2 million in the nine months ended April 30, 2025, as compared to the nine months ended April 30, 2024, mainly due to the timing of tax and insurance payments.

Current wording

Prepaid expenses decreased by $1.4 million in the three months ended October 31, 2025, as compared to the three months ended October 31, 2024, mainly due to the timing of tax and insurance payments.

Previous wording

Excluding the impact of payments related to capital expenditures, accounts payable increased by $0.5 million in the nine months ended April 30, 2025, as compared to the nine months ended April 30, 2024. The increase was mainly due to the timing of payments, cost of goods and services we purchase, production volume levels and vendor payment terms. In the nine months ended April 30, 2025, there was a $2.3 million decrease in accounts payable related to capital expenditures recognized as cash used in investing activities as compared to the nine months ended April 30, 2024.

Current wording

Excluding the impact of payments related to capital expenditures, accounts payable increased by $0.3 million in the three months ended October 31, 2025, as compared to the three months ended October 31, 2024. The increase was mainly due to the timing of payments, cost of goods and services we purchase, production volume levels and vendor payment terms. In the three months ended October 31, 2025, there was a $3.2 million decrease in accounts payable related to capital expenditures recognized as cash used in investing activities as compared to the three months ended October 31, 2024.

Previous wording

Excluding the impact of payments made related to capital expenditures, accrued expenses decreased $2.3 million in the nine months ended April 30, 2025, as compared to the nine months ended April 30, 2024. The decrease was mainly due to the payout of annual bonuses and taxes, and other miscellaneous expenses which fluctuate due to timing of payments, changes in the cost of goods and services we purchase, production volume levels, and vendor payment terms, including freight. In the nine months ended April 30, 2025, there was a $4.6 million decrease in accrued expenses related to capital expenditures recognized as cash used in investing activities as compared to the nine months ended April 30, 2024.

Current wording

Excluding the impact of payments made related to capital expenditures, accrued expenses decreased $13.8 million in the three months ended October 31, 2025, as compared to the three months ended October 31, 2024. The decrease was mainly due to the payout of annual bonuses and other miscellaneous expenses which fluctuate due to timing of payments, changes in the cost of goods and services we purchase, production volume levels, and vendor payment terms, including freight. In the three months ended October 31, 2025, there was a $1.3 million decrease in accrued expenses related to capital expenditures recognized as cash used in investing activities as compared to the three months ended October 31, 2024.

Previous wording

Cash used in investing activities of $24.5 million in the nine months ended April 30, 2025, was driven by capital expenditures. During the nine months ended April 30, 2025, we continued to expand our plant equipment and improve our facilities to support increased demand for our products.

Current wording

Cash used in investing activities of $9.1 million in the three months ended October 31, 2025, was driven by capital expenditures. During the three months ended October 31, 2025, we continued to expand our plant equipment and improve our facilities to improve efficiency of our manufacturing process and meet customer demands.

Previous wording

Total cash balances held by our foreign subsidiaries of $5.2 million as of April 30, 2025, increased $0.7 million compared to $4.5 million as of July 31, 2024. See further discussion in "Foreign Operations" above.

Current wording

Total cash balances held by our foreign subsidiaries of $4.8 million as of October 31, 2025, compared to $4.7 million as of July 31, 2025. See further discussion in "Foreign Operations" above.

Previous wording

As of April 30, 2025, we had remaining authority to repurchase 362,938 shares of Common Stock and 244,113 shares of Class B Stock under a repurchase plan approved by our Board. Repurchases may be made on the open market (pursuant to Rule 10b5-1 plans or otherwise) or in negotiated transactions. The timing, number and manner of share repurchases will be determined by our management pursuant to the repurchase plan approved by our Board.

Current wording

As of October 31, 2025, we had remaining authority to repurchase 279,623 shares of Common Stock and 208,197 shares of Class B Stock under a repurchase plan approved by our Board. Repurchases may be made on the open market (pursuant to Rule 10b5-1 plans or otherwise) or in negotiated transactions. The timing, number and manner of share repurchases will be determined by our management pursuant to the repurchase plan approved by our Board.