GLOBAL INDUSTRIAL Co

Previous wording

The results of discontinued operations in the accompanying financial statements are from the former North American Technology ("NATG") business. In March 2026 the Company received a refund of prior years alternative minimum taxes paid of approximately $1.8 million which was partially offset by an increased tax obligation recorded in the first quarter of 2026.

Current wording

The results of discontinued operations in the accompanying financial statements are from the former North American Technology ("NATG") business. As previously disclosed, in March 2026 the Company's discontinued operations received a refund of prior years alternative minimum taxes paid of approximately $1.8 million which was partially offset by an increased tax obligation recorded in the first quarter of 2026.

Previous wording

We continue to closely monitor the macroeconomic and geopolitical environment, including developments in the Middle East and their impact on transportation and manufacturing costs, as well as the evolving tariff landscape and potential new Section 301 tariffs which are currently being evaluated by the US Government. Our goal is to mitigate these disruptions to our business and our customers and we believe we are well-positioned to do so as we continue to proactively manage price and other factors within our control; however, we anticipate headwinds will impact margin performance in the spring and summer as fuel prices remain elevated.

Current wording

We continue to closely monitor the macroeconomic and geopolitical environment, including the ongoing Middle East conflict and their impact on transportation and manufacturing costs, as well as the evolving tariff landscape and new Section 301 tariffs which became effective in July 2026. Our goal is to continue to mitigate these disruptions to our business and our customers and we believe we are well-positioned to do so as we continue to proactively manage price and other factors within our control; however, we anticipate headwinds may impact margin performance in the summer as fuel prices remain elevated.

Previous wording

There were no material changes in the Company’s significant accounting policies during the first quarter ended March 31, 2026.

Current wording

There were no material changes in the Company’s significant accounting policies during the second quarter ended June 30, 2026.

Previous wording

Highlights from Q1 2026 compared to Q1 2025

Current wording

Highlights from Q2 2026 and Year to Date Q2 2026 compared to Q2 2025 and Year to Date Q2 2025

Previous wording

•Consolidated sales increased 9.2% to $350.4 million compared to $321.0 million last year and average daily sales* increased 7.6% compared to prior year.

Current wording

•Consolidated sales increased 7.7% to $386.6 million compared to $358.9 million last year and average daily sales* increased 9.3% compared to prior year.

Previous wording

*Average daily sales is calculated based upon the number of selling days in each period, with Canadian sales converted to U.S. dollars using the current year's average exchange rate. There were 65 selling days in the U.S. in the first quarter of 2026 compared to 64 selling days in the first quarter of 2025. There were 63 selling days in Canada in each of the first quarters of 2026 and 2025, respectively.

Current wording

*Average daily sales is calculated based upon the number of selling days in each period, with Canadian sales converted to U.S. dollars using the current year's average exchange rate. There were 63 selling days in the U.S. in the second quarter of 2026 compared to 64 selling days in the second quarter of 2025 and there were 128 selling days in the U.S. for the six months ended June 30, 2026 and 2025, respectively. There were 63 selling days in Canada in each of the second quarters of 2026 and 2025, respectively, and there were 126 selling days in Canada for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

Three Months Ended March 31, 2026 compared to the Three Months Ended March 31, 2025

Current wording

Three and Six Months Ended June 30, 2026 compared to the Three and Six Months Ended June 30, 2025

Previous wording

The Company's net sales increased 9.2% to $350.4 million during the quarter ended March 31, 2026 compared to $321.0 million last year. Net sales benefited from both price and volume, with gains across both assigned accounts and e-commerce sales channels, and continued strong performance from our largest and most strategic accounts. U.S. sales increased 8.1% for the quarter compared to the same period in 2025 and Canada sales increased 30.3%, 24.4% in local currency, and on an average daily sales basis, sales grew 7.6%, in-line with our fourth quarter performance.

Current wording

The Company's net sales increased 7.7% to $386.6 million during the quarter ended June 30, 2026 compared to $358.9 million last year. For the six months ended June 30, 2026, net sales increased 8.4% to $737.0 million compared to $679.9 million last year. Net sales benefited from both price and volume, with broad based gains across our sales channels and customer verticals. Assigned accounts increased low double digits, led by our largest strategic accounts. U.S. sales increased 6.3% for the second quarter of 2026 compared to the same period in 2025 and year to date sales increased 7.1% compared to prior year. Our Canadian business continued its strong contribution with increased sales of 34.1%, 33.7% in local currency, and 32.3%, 29.3% in local currency, for the three and six months ended June 30, 2026, respectively. On an average daily sales basis, sales grew 9.3% for the quarter ended June 30, 2026 and 8.4% for the six months ended June 30, 2026.

Previous wording

There were 65 selling days and 64 selling days in the U.S. in the first quarter of 2026 and 2025, respectively, and in Canada, there were 63 selling days in each of the first quarters of 2026 and 2025, respectively.

Current wording

There were 63 selling days in the U.S. and Canada in the second quarter of 2026 compared to 64 selling days in the U.S. and 63 selling days in Canada in the second quarter of 2025. There were 128 selling days in the U.S. and 126 selling days in Canada for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

Management of our margin profile remains a key area of focus for the Company. Performance will continue to reflect the impact of strategic promotion and freight actions as part of our competitive pricing initiatives, tariff related actions and ocean freight costs. The Company anticipates that there may be increased margin variability in future periods given the timing dynamics of on-hand inventory, inflationary pressures associated with tariff related cost increases and our efforts to continue to diversify our supply chain and historical seasonality.

Current wording

Management of our margin profile remains a key area of focus for the Company. Performance will continue to reflect the impact of product mix, fluctuations in transportation costs and other inflationary pressures which can create variability from quarter to quarter. Our pricing, sales and merchandising teams remain focused on mitigating the effects of these macroeconomic impacts on our customers. The Company anticipates that there may also be increased margin variability in future periods given the timing dynamics of on-hand inventory, inflationary pressures associated with tariff related cost increases and our efforts to continue to diversify our supply chain and historical seasonality.

Previous wording

Operating margin for the three month period ended March 31, 2026 increased 20 basis points compared to the same period in 2025 driven by the sales increase, modest decline in gross margin, continued strong general and discretionary cost control offset by increased variable compensation expense related to performance.

Current wording

Operating margin for the three and six months ended June 30, 2026 increased 350 basis points and 190 basis points, respectively, compared to the same period in 2025 driven by increased sales, increased gross margin due to the tariff refunds recorded in the second quarter, strong general and discretionary cost control offset by increased sales commissions due to performance and increased salary and healthcare costs.

Previous wording

For the three month period ended March 31, 2026 and March 31, 2025, the Company reported income taxes in continuing operations of approximately $5.4 million and $4.6 million, respectively, related to its U.S., Canada and India operations including tax expense for certain U.S. states.

Current wording

For the three month period ended June 30, 2026 and 2025, the Company reported income taxes in continuing operations of approximately $13.2 million and $8.7 million, respectively, related to its U.S., Canada and India operations including tax expense for certain U.S. states. For the six month period ended June 30, 2026 and 2025, the Company reported income taxes in continuing operations of approximately $18.6 million and $13.3 million, respectively, related to its U.S., Canada and India operations including tax expense for certain U.S. states.

Previous wording

In March 2026 the Company received a refund of prior years alternative minimum taxes paid of approximately $1.8 million related to our NATG discontinued operations. This refund was partially offset by an increased tax obligation recorded in the first quarter of 2026.

Current wording

As previously disclosed, in March 2026 the Company's discontinued operations received a refund of prior years alternative minimum taxes paid of approximately $1.8 million related to our NATG discontinued operations. This refund was partially offset by an increased tax obligation recorded in the first quarter of 2026.

Previous wording

Our primary liquidity needs are to support working capital requirements in our business, funding recently declared and any future dividends, funding capital expenditures and inventory purchases, continuing investment in upgrading and expanding our technological capabilities specifically related to additional functionality and enhanced navigation of our web platform, continuing investment in sales, marketing, merchandising, customer service and upgrading our distribution footprint and funding acquisitions. We rely principally upon operating cash flow. We currently believe that current cash on hand and cash flow from operations will be sufficient to fund our working capital and other cash requirements for at least the next twelve months. We believe our current capital structure and cash resources are adequate for our internal growth initiatives. To the extent our growth initiatives expand, including major acquisitions, we would seek to raise additional capital. We believe that, if needed, we can access public or private funding alternatives to raise additional capital.

Current wording

Our primary liquidity needs are to support working capital requirements in our business, funding recently declared and any future dividends, funding capital expenditures and inventory purchases, continuing investment in upgrading and expanding our technological capabilities specifically related to additional functionality and enhanced navigation of our web platform, continuing investment in sales, marketing, merchandising, customer service and upgrading our distribution footprint and funding acquisitions. We rely upon operating cash flow and our credit facility to meet those needs. We currently believe that current cash on hand, cash flow from operations and our availability under our credit facility will be sufficient to fund our working capital and other cash requirements for at least the next twelve months. We believe our current capital structure and cash resources are adequate for our internal growth initiatives. To the extent our growth initiatives expand, including major acquisitions, we would seek to raise additional capital. We believe that, if needed, we can access public or private funding alternatives to raise additional capital.

Previous wording

Our working capital increased $7.7 million primarily related to increased accounts receivable, accounts payable and inventory balances offset by increased accrued expenses and other current liabilities balances and reduced cash and cash equivalents, and prepaid expenses and other current assets balances. Accounts receivable days outstanding were 38.6 in 2026 compared to 38.4 in 2025, inventory turns were 5.2 in 2026 compared to 5.0 in 2025 and accounts payable days outstanding were 44.0 in 2026 compared to 48.9 in 2025. We expect that future accounts receivable, inventory and accounts payable balances will fluctuate with net sales and the product mix of our net sales.

Current wording

Our working capital increased $31.0 million primarily related to increased cash balances, including $15.3 million of IEEPA refunds received in the second quarter of 2026, increased accounts receivable balances, including $10.9 million of IEEPA refunds receivable, offset by increased accrued expenses and other current liabilities, accounts payable, inventory and prepaid expenses and other current assets balances. Accounts receivable days outstanding were 39.7 in 2026 compared to 39.0 in 2025, inventory turns were 5.3 in 2026 compared to 5.0 in 2025 and accounts payable days outstanding were 44.2 in 2026 compared to 47.7 in 2025. We expect that future accounts receivable, inventory and accounts payable balances will fluctuate with net sales and the product mix of our net sales.

Previous wording

Net cash provided by operating activities from continuing operations was $4.7 million in 2026 compared to $3.3 million provided in 2025, attributable to cash generated from net income adjusted by other non-cash items of $19.2 million compared to $17.9 million generated in 2025 primarily due to higher net income and reduced stock-based compensation expenses in 2026 compared to prior year. Changes in working capital accounts used $14.5 million in 2026 compared to $14.6 million used in 2025, primarily the result of the changes in inventory, accounts receivable, and income taxes balances offset by changes in accounts payable balances. Net cash provided by operating activities from discontinued operations was $1.7 million and $0.1 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

Current wording

Net cash provided by operating activities from continuing operations was $46.0 million in 2026 compared to $35.1 million provided in 2025, attributable to cash generated from net income adjusted by other non-cash items of $60.5 million compared to $46.4 million generated in 2025 primarily due to the higher net income in 2026 from the IEEPA refunds recorded compared to prior year. Changes in working capital accounts used $14.5 million in 2026 compared to $11.3 million used in 2025, primarily the result of the changes in accounts receivable, accrued expenses, other current liabilities and other labilities balanced offset by changes in inventory, accounts payable and income taxes balances. Net cash provided by operating activities from discontinued operations was $1.8 million and $0.0 million for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

Net cash used in investing activities in 2026 totaled $0.8 million primarily used for warehouse machinery and equipment for distribution facilities, motor vehicles, leasehold improvements and and molds. Net cash used in investing activities totaled $0.2 million in 2025 was used for warehouse machinery and equipment for distribution facilities, computer equipment upgrades and molds.

Current wording

Net cash used in investing activities in 2026 totaled $1.7 million primarily used for warehouse machinery and equipment for distribution facilities, motor vehicles, leasehold improvements, computer software, computer hardware and molds. Net cash used in investing activities totaled $5.6 million in 2025 of which $4.0 million was used for the equipment service provider acquisition and $1.6 million was used for warehouse machinery and equipment for distribution facilities, computer equipment upgrades and molds.

Previous wording

Net cash used in financing activities totaled $11.3 million in 2026 primarily related to the regular quarterly dividends of $0.28 per common share which totaled approximately $10.8 million. Offsetting these payments were proceeds of $0.9 million from the issuance of common stock from our employee stock purchase plan and proceeds of $0.4 million from the issuance of common stock from stock option exercises, offset by payments for payroll taxes through shares withheld, which totaled $0.9 million. In addition, $0.9 million was used for the purchase of treasury stock. In 2025, net cash used in financing activities totaled $8.8 million primarily related to the regular quarterly dividends of $0.26 per common share which totaled approximately $10.1 million. Offsetting these payments were proceeds of $1.2 million from the issuance of common stock from stock option exercises, offset by payments for payroll taxes through shares withheld, which totaled $0.7 million, and proceeds of $0.8 million from the issuance of common stock from our employee stock purchase plan.

Current wording

Net cash used in financing activities totaled $26.8 million in 2026 primarily related to the regular quarterly dividends of $0.28 per common share which totaled approximately $21.6 million and $5.6 million used for the purchase of treasury stock. Offsetting these payments were proceeds of $0.9 million from the issuance of common stock from our employee stock purchase plan and proceeds of $0.4 million from the issuance of common stock from stock option exercises, offset by payments for payroll taxes through shares withheld, which totaled $0.9 million. In 2025, net cash used in financing activities totaled $18.9 million primarily related to the regular quarterly dividends of $0.26 per common share which totaled approximately $20.1 million. Offsetting these payments were proceeds of $1.2 million from the issuance of common stock from stock option exercises, offset by payments for payroll taxes through shares withheld, which totaled $0.8 million, and proceeds of $0.8 million from the issuance of common stock from our employee stock purchase plan.

Previous wording

The Company maintains a $125.0 million secured revolving credit facility with one financial institution, which has a five year term, maturing on October 19, 2026 and provides for borrowings in the United States. The credit agreement contains certain operating, financial and other covenants, including limits on annual levels of capital expenditures, availability tests related to payments of dividends and stock repurchases and fixed charge coverage tests related to acquisitions. The revolving credit agreement requires that a minimum level of availability be maintained. If such availability is not maintained, the Company will be required to maintain a fixed charge coverage ratio (as defined). The borrowings under the agreement are subject to borrowing base limitations of up to 85% of eligible accounts receivable and the inventory advance rate computed as the lesser of 65% or 85% of the net orderly liquidation value (“NOLV”). Borrowings are secured by substantially all of the Borrower’s assets, as defined, including all accounts, accounts receivable, inventory and certain other assets, subject to limited exceptions, including the exclusion of certain foreign assets from the collateral. The interest rate under the amended and restated facility is computed at applicable market rates based on the Secured Overnight Financing Rate (“SOFR”), the Federal Reserve Bank of New York (“NYFRB”) or the Prime Rate, plus an applicable margin. The applicable margin varies based on borrowing base availability. As of March 31, 2026, eligible collateral under the credit agreement was $125.0 million, total availability was approximately $121.5 million, total outstanding letters of credit was $1.6 million, and total excess availability was $119.9 million. The Company was in compliance with all of the covenants of the credit agreement as of March 31, 2026.

Current wording

The Company maintains a $125.0 million secured revolving credit facility with one financial institution. On June 30, 2026, the Company extended this facility for an additional five-year term, maturing on June 30, 2031. The facility provides for borrowings in the United States. The credit agreement contains certain operating, financial and other covenants, including limits on annual levels of capital expenditures, availability tests related to payments of dividends and stock repurchases and fixed charge coverage tests related to acquisitions. The revolving credit agreement requires that a minimum level of availability be maintained. If such availability is not maintained, the Company will be required to maintain a fixed charge coverage ratio (as defined). The borrowings under the agreement are subject to borrowing base limitations of up to 85% of eligible accounts receivable and the inventory advance rate computed as the lesser of 65% or 85% of the net orderly liquidation value (“NOLV”). Borrowings are secured by substantially all of the Borrower’s assets, as defined, including all accounts, accounts receivable, inventory and certain other assets, subject to limited exceptions, including the exclusion of certain foreign assets from the collateral. The interest rate under the amended and restated facility is computed at applicable market rates based on the Secured Overnight Financing Rate (“SOFR”), the Federal Reserve Bank of New York (“NYFRB”) or the Prime Rate, plus an applicable margin. The applicable margin varies based on borrowing base availability. As of June 30, 2026, eligible collateral under the credit agreement was $125.0 million, total availability was approximately $121.4 million, total outstanding letters of credit was $1.6 million, and total excess availability was $119.8 million. The Company was in compliance with all of the covenants of the credit agreement as of June 30, 2026.

Previous wording

We maintain our cash and cash equivalents in money market funds or their equivalents that have maturities of less than three months and in non-interest bearing accounts that partially offset banking fees. As of March 31, 2026, we had no investments with maturities of greater than three months. Accordingly, we do not believe that our cash balances have significant exposure to interest rate risk. At March 31, 2026 cash balances held in foreign subsidiaries totaled approximately $5.0 million. These balances are held in local country banks and are held primarily to support local working capital needs. The Company had over $176 million of liquidity (cash and undrawn line of credit) in the U.S. as of March 31, 2026.

Current wording

We maintain our cash and cash equivalents in money market funds or their equivalents that have maturities of less than three months and in non-interest bearing accounts that partially offset banking fees. As of June 30, 2026, we had no investments with maturities of greater than three months. Accordingly, we do not believe that our cash balances have significant exposure to interest rate risk. At June 30, 2026 cash balances held in foreign subsidiaries totaled approximately $7.3 million. These balances are held in local country banks and are held primarily to support local working capital needs. The Company had over $199 million of liquidity (cash and undrawn line of credit) in the U.S. as of June 30, 2026.

Previous wording

We are obligated under non-cancelable operating and finance leases for the rental of our facilities and certain of our equipment which expire at various dates through 2034. As of March 31, 2026 we were obligated for approximately $117.9 million under these non-cancelable leases. In 2026 we anticipate remaining cash expenditures of approximately $16.1 million for these operating leases. We have sublease agreements for unused space, as well as excess space in facilities we are currently occupying in the United States and Canada. In the event the sub lessee is unable to fulfill its obligations, we would be responsible for remaining rents due under the leases.

Current wording

We are obligated under non-cancelable operating and finance leases for the rental of our facilities and certain of our equipment which expire at various dates through 2034. As of June 30, 2026 we were obligated for approximately $117.3 million under these non-cancelable leases. In 2026 we anticipate remaining cash expenditures of approximately $9.1 million for these operating leases. We have sublease agreements for unused space, as well as excess space in facilities we are currently occupying in the United States and Canada. In the event the sub lessee is unable to fulfill its obligations, we would be responsible for remaining rents due under the leases.