UFP TECHNOLOGIES INC

The Company faces a number of uncertainties and risks that are difficult to predict and many of which are outside of the Company's control. For a detailed discussion of the risks that affect our business, you should consider carefully the risks and uncertainties described in this Quarterly Report on Form 10-Q as well as our other public filings with the SEC including Part I, Item IA, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes from the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2025, with the exception of the additional Risk Factors noted below.

The conflict between the United States, Israel, and Iran and related geopolitical instability may adversely affect our business and results of operations.

In February 2026, the United States and Israel launched coordinated military strikes against Iran, which retaliated with missile attacks across the region. Although we have no operations in the Middle East, the ongoing conflict, and any further escalation, including additional military actions, retaliatory measures, sanctions, trade or transportation disruptions, cyberattacks, or other governmental or market responses, could significantly disrupt global energy supplies, increase energy prices, heighten inflationary pressures on our input costs and supply chain, adversely affect global supply chains, our customers and vendors, commodity prices, currency exchange rates, financial markets and the general economy.

A significant portion of our polymer spend is petroleum-based, and rising petroleum prices resulting from the conflict have increased, and may continue to increase, the cost of materials we source, manufacture, or distribute. Under our agreements with our customers, we are generally able to pass through many of these costs but there is no assurance this will not adversely affect demand for our products. We have also faced, and may continue to face, indirect financial risks passed through the supply chain, including disruptions that could result in higher prices for our products and the resources needed to produce them or delays in our ability to timely manufacture and deliver our products.

While we do not expect the conflict to have a material effect on our business, financial condition, or results of operations, we are unable to predict the extent or nature of any future impacts at this time.