Elmet Group Co.
For the period ended Jul 3, 2026. Filed Aug 13, 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.
Jul 3, 2026 · Filed Aug 13, 2026
ELMT$19.62+13.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-04-03; filed 2026-05-29.
0001213900-26-062433
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-07-03; filed 2026-08-13.
0001628280-26-056460
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 220 previous paragraphs and 285 current paragraphs.
131 unchanged; 55 reworded; 95 added; 34 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 52 previous and 19 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 (95)
Current report
•AAI distributed the membership interests in Elmet Tech and Microwave Techniques that it held to A&A in redemption of A&A’s interests in AAI, which resulted in A&A becoming the direct, rather than indirect, owner of the Elmet Tech and Microwave Techniques membership interests previously held by AAI, as well as A&A no longer being a member of AAI;
Current report
•We adopted our amended and restated certificate of incorporation, which, among other things, bifurcated our common stock into two classes, Class A Common Stock, par value $0.001 per share (“Class A Common Stock”), and Class B Common Stock, par value $0.001 per share (“Class B Common Stock”), with the Class A Common Stock having one vote per share and the Class B Common Stock having 10,000 votes per share but no economic rights;
Current report
•We issued to Mr. Anania 466 shares of Class B Common Stock for an aggregate consideration of $25,000 (the “Subscription Agreement”); and
Current report
•We directly acquired all of the (i) outstanding membership interests of each of Elmet Tech and Microwave Techniques and (ii) the outstanding stock of A&A (together, the “Contributed Interests”) in exchange for, in each case, shares of Class A Common Stock pursuant to a Contribution Agreement among the Company, the members of Elmet Tech, the members of Microwave Techniques and the stockholders of A&A (the “Contribution Agreement”) and the cancellation of all of A&A’s membership interests in Elmet Tech and Microwave Techniques.
Current report
Initial Public Offering
Current report
•the cost and availability of raw materials and components;
Current report
•the complexity of the work to be performed;
Current report
•our subcontractors’ capacities, capabilities and lead times;
Current report
•equipment & tooling durability, capabilities and lead times to procure;
Current report
•schedule requirements;
Current report
•robustness of public utilities supporting our factories; and
Current report
•our ability to protect against and respond to threats to our IT infrastructure and our confidential and proprietary information.
Current report
Three Months Ended July 3, 2026 Compared to Three Months Ended June 30, 2026
Current report
Revenues for the three months ended July 3, 2026, increased $17.3 million, or 35.2%, compared to the three months ended June 30, 2025. Our EMP division saw an increase of $1.9 million, or 26.0%, driven by radar components and industrial microwave systems for tempering and drying. Our CMC division revenues for the three months ended July 3, 2026, increased $15.3 million, or 36.8%, compared to the three months ended June 30, 2025, driven by increases in isothermal forging dies for aerospace applications, molybdenum powder products in our medical end market, increased shipments with key missile programs Javelin and Hellfire and favorable pricing impacts associated with tungsten products in general.
Current report
Six Months Ended July 3, 2026 Compared to Six Months Ended June 30, 2026
Current report
Revenues for the six months ended July 3, 2026, increased $26.9 million, or 28.2%, compared to the six months ended June 30, 2025. Our EMP division saw an increase of $2.5 million, or 16.7%, driven by industrial microwave systems for tempering and drying. Our CMC division revenues for the six months ended July 3, 2026, increased $24.4 million, or 30.2%, compared to the six months ended June 30, 2025, driven by increases in isothermal forging dies for aerospace applications, molybdenum powder products in our medical end market, increased shipments with key missile programs Next Generation Interceptor, Javelin and Hellfire and favorable pricing impacts associated with tungsten products in general.
Current report
Aerospace, Defense and Government revenues increased $8.7 million, or 21.6%, but decreased as a percentage of our business from 42.1% to 39.9% in the six months ended July 3, 2026, as compared to the prior year period. Growth was driven by increased sales to larger defense programs including the Hellfire, Javelin and Next Generation Interceptor along with favorable pricing impacts associated with tungsten products in general.
Current report
Industrial revenues increased $11.4 million, or 36.8%, and increased as a percentage of our business from 32.3% to 34.5% in the six months ended July 3, 2026, as compared to the prior year period. Drivers of the increase were consistent with the drivers from the previously stated three month comparisons.
Current report
Medical revenues increased $3.0 million, or 36.9%, and increased as a percentage of our business from 16.5% to 16.7% in the three months ended July 3, 2026, as compared to the prior year period.
Current report
For the six months ended July 3, 2026, revenues increased $3.5 million, or 19.0%, and decreased as a percentage of our business from 19.2% to 17.8%, as compared to the prior year period. Changes in revenue for both comparable periods were substantially driven by one long term customer's variable demand.
Current report
Semiconductor and Electronics revenues increased $1.3 million, or 56.1%, and increased as a percentage of our business from 4.8% to 5.5% in the three months ended July 3, 2026, as compared to the prior year period. Increases were driven by demand from semiconductor capacitor customers and favorable pricing impacts associated with tungsten products.
Current report
Semiconductor and Electronics revenues increased $2.7 million, or 74.8%, and increased as a percentage of our business from 3.8% to 5.2% in the six months ended July 3, 2026, as compared to the prior year period. Drivers of the increase were consistent with the drivers from the previously stated three month comparisons.
Current report
Energy revenues decreased $(0.5) million, or (34.7)%, and decreased as a percentage of our business from 3.1% to 1.5% in the three months ended July 3, 2026, as compared to the prior year period.
Current report
Costs of goods sold for the three months ended July 3, 2026 increased $10.8 million, or 27.7%, compared to the prior year period. Gross profit margin improved from 20.7% for the six months ended June 30, 2025, to 25.0% for the six months ended July 3, 2026.
Current report
CMC cost of goods sold for the three months ended July 3, 2026 increased $8.5 million, or 25.4%, associated with an increase of $15.3 million, or 36.8%, in revenue compared to the prior year period, resulting in an increase of $6.8 million, or 84.0%, in gross profit between the three months ended July 3, 2026 and the prior year period. This change was primarily driven by active sourcing and pricing management of the tungsten supply chain during the rapid increase in tungsten concentrate price over the first three months of 2026, as well as increased demand and productivity gains which together increased CMC’s gross profit margin from 19.4% for the three months ended June 30, 2025, to 26.1% for the three months ended July 3, 2026.
Current report
Costs of goods sold for the six months ended July 3, 2026 increased $17.2 million, or 22.4%, compared to the prior year period. Gross profit margin improved from 19.7% for the six months ended June 30, 2025, to 23.2% for the six months ended July 3, 2026.
Current report
EMP saw an increase in cost of goods sold for the six months ended July 3, 2026 of $3.5 million, or 34.5%, associated with an increase of $2.5 million, or 16.7%, in revenue compared to the prior year period, resulting in a decrease of $1.0 million, or 20.8%, in gross profit between the six months ended July 3, 2026 and the prior year period. This was driven by a shift in product mix within the division toward lower-margin industrial products, a rapid increase in aluminum and copper material input pricing as well as operating throughput challenges at one of our facilities, which together resulted in a decrease in EMP’s gross profit margin from 32.2% for the six months ended June 30, 2025, to 21.9% for the six months ended July 3, 2026.
Current report
CMC cost of goods sold for the six months ended July 3, 2026 increased $13.7 million, or 20.6%, associated with an increase of $24.4 million, or 30.2%, in revenue compared to the prior year period, resulting in an increase of $10.7 million, or 76.2%, in gross profit between the six months ended July 3, 2026 and the prior year period. This change was primarily driven by active sourcing and pricing management of the tungsten supply chain during the rapid increase in tungsten concentrate price over the first three months of 2026, increased demand from key missile programs Next Generation Interceptor, Javelin and Hellfire, and productivity gains which together increased CMC’s gross profit margin from 17.3% for the six months ended June 30, 2025, to 23.5% for the six months ended July 3, 2026.
Current report
General and administrative expenses increased $13.8 million, or 342.7%, for the three months ended July 3, 2026, compared to the prior year period. The increase was primarily a result of approximately $10.3 million related to stock-based compensation incurred in connection with the acceleration of certain vesting criteria associated with the IPO, during the three months ended July 3, 2026. Additional general and administrative expenses growth was attributable to the increase of staffing and professional services to support public company compliance.
Current report
Research and development expenses increased $3.3 million, or 328.2% for the three months ended July 3, 2026, compared to the prior year period. The increase was primarily related to stock-based compensation incurred in connection with the acceleration of certain vesting criteria associated with the IPO, during the three month period ending July 3, 2026 as compared to the prior year period.
Current report
Research and development expenses increased $3.4 million, or 184.1%, for the six months ended July 3, 2026 compared to the prior year period. The increase was primarily related to stock-based compensation incurred in connection with the acceleration of certain vesting criteria associated with the IPO, during the six month periods ending July 3, 2026 as compared to the prior year periods.
Current report
Sales and marketing expenses increased $0.6 million, or 18.1%, for the six months ended July 3, 2026, compared to the prior year period. This increase was due to variable sales compensation associated with sales growth and the expansion of our sales team in support of our strategy
Current report
Interest expense decreased $0.7 million or 84.0% for the three months ended July 3, 2026, compared to the prior year period. The decrease was primarily attributable to debt repayments made in the current year compared to the same prior year period.
Current report
Interest expense decreased $0.6 million or 43.2% for the six months ended July 3, 2026, compared to the prior year period. The decrease was primarily attributable to debt repayments made in the current year compared to the same prior year period.
Current report
Related party interest expense decreased $0.1 million, or 38.2%, for the three months ended July 3, 2026, compared to the prior year period. This was primarily attributable to repayment of the CEO Line of Credit following the IPO.
Current report
(Gain) Loss on Remeasurement of Fair Value of Marketable Securities
Current report
The (gain) loss on remeasurement of fair value of marketable securities increased approximately $0.5 million and $1.1 million during the three and six month periods ended July 3, 2026, respectively, due to an increase in the fair value of the Company's marketable securities investments in both periods.
Current report
Other (income) expense, net increased $0.1 million for the three months ended July 3, 2026, compared to the prior year period, and increased $0.2 million for the six months ended July 3, 2026, compared to the prior year period. This was driven by increased outside management fees in 2026.
Current report
Income Tax (Benefit) Provision
Current report
For the six months ended July 3, 2026, the Company recognized a tax expense of $1.0 million despite the pre-tax loss, which was primarily attributable to a one-time deferred tax expense of approximately $3.8 million recorded in connection with the Company's reorganization into a C-corporation ahead of its IPO, reflecting the initial recognition of deferred tax balances for a structure not previously subject to entity-level income tax, as well as non-deductible compensation paid to an officer and equity-based compensation of approximately $0.8 million and $0.8 million, respectively. These increases were partially offset by federal research and development tax credits of approximately $0.3 million, the foreign-derived intangible income deduction of approximately $0.1 million, and non-taxable income from debt forbearance of approximately $0.3 million.
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Removed paragraphs (34)
Previous report
Revenues for the fiscal quarter ended April 3, 2026, increased $9.6 million, or 20.7%, compared to the fiscal quarter ended March 31, 2025. Our EMP division saw an increase of $0.5 million, or 7.2%, driven by industrial microwave systems for tempering and drying. Our CMC division revenues for the fiscal quarter ended April 3, 2026, increased $9.1 million, or 23.2%, compared to the fiscal quarter ended March 31, 2025, driven by increases in key missile programs Javelin, Hellfire and AIM-9X Sidewinder, along with favorable pricing impacts associated with other tungsten products. Starting in November 2024, the global critical material supply chain experienced multiple disruptions including the PRC’s export restrictions on “dual use” materials, tariff disruption in January 2025 and again in April 2025, and the PRC’s closure of multiple rare earth mines, all of which resulted in a rapid pricing increase for tungsten on the global market. We believe these events disrupted customer order patterns, leading to lower sales and gross profit over the first few months of 2025.
Previous report
Most of our products for Aerospace, Defense and Government customers are made to customer specifications. This creates additional value for our customers; however, this market can be affected by international and U.S. federal government spending. We are subject to variations in the DoW budget and spending levels, shifts in funding for research at national laboratories around the world, changes in policy positions or priorities at the U.S Government or international agencies, alteration in the domestic and global political and economic environment, increased instability and the evolving nature of the global and national security threat environment. Changes in these budget and spending levels, policies, or priorities, which are subject to U.S. domestic and foreign geopolitical risks and threats, may impact our defense businesses. We believe that our business is well positioned to supply the products needed to support future defense spending priorities, including those based on the 2025 National Security Strategy document, the 2024 U.S. National Security related budget and the National Defense Authorization Act (“NDAA”). We are also poised to benefit from the related Future Years Defense Program and other resources and programs needed to support the DoW’s strategy of shoring up the supply chain and hardening operations against trade risk, boycotts and market manipulation by our adversaries. We expect commercial aerospace to continue to grow, with satellite and commercial aviation both projected to experience substantial growth over the next five years.
Previous report
Medical revenues decreased as a percentage of our business from 22.0% in the fiscal quarter ended March 31, 2025, to 19.1% in the fiscal quarter ended April 3, 2026, but they increased by $0.5 million for the fiscal quarter ended April 3, 2026, as compared to the prior year period. This increase was driven by demand recovery with one long-term medical wire customer.
Previous report
Semiconductor and Electronics revenues increased as a percentage of our business from 2.7% in the fiscal quarter ended March 31, 2025, to 4.7% in the fiscal quarter ended April 3, 2026, or by $1.4 million compared to the prior year period. This increase was largely due to the mix of customers in both the semiconductor capital equipment and hi-reliability component sub-markets.
Previous report
Costs of goods sold for the fiscal quarter ended April 3, 2026 increased $6.4 million, or 16.9%, compared to the prior year period.
Previous report
CMC cost of goods sold for the fiscal quarter ended April 3, 2026 increased $5.2 million, or 15.7%, associated with an increase of $9.1 million, or 23.2%, in revenue compared to the prior year period, resulting in an increase of $3.9 million, or 65.5%, in gross profit between the fiscal quarter ended April 3, 2026 and the prior year period. This change was primarily driven by a richer product mix from our Aerospace, Defense and Government and Energy markets, increasing CMC’s gross profit margin from 15.1% for the quarter ended March 31, 2025, to 20.3% for the quarter ended April 3, 2026.
Previous report
Research and development expenses did not meaningfully change for the quarter ended April 3, 2026, compared to the prior year period.
Previous report
Related party interest expense increased $0.2 million, or 50.7%, for the quarter ended April 3, 2026, compared to the prior year period, primarily attributable to increased borrowings under the CEO Line of Credit (as defined below).
Previous report
Other (Income) Expense, Net
Previous report
Other income, net increased by $0.7 million, or 927.8%, for the quarter ended April 3, 2026, compared to the prior year period, driven by unrealized gains recognized related to the change in the fair value of marketable securities, partially offset by the change in the fair value of our interest rate collar derivatives.
Previous report
Revenues for the fiscal quarter ended April 3, 2026, increased $9.1 million, or 23.2%, compared to the prior year period, driven by increases in the key missile programs Javelin, Hellfire and AIM-9X Sidewinder, along with favorable pricing impacts associated with other tungsten products.
Previous report
Cost of goods sold for the fiscal quarter ended April 3, 2026 increased $5.2 million, or 15.7%, associated with an increase of $9.1 million, or 23.2%, in revenue compared to the prior year period, resulting in an increase of $3.9 million, or 65.5%, in gross profit between the quarter ended April 3, 2026 and the prior year period. This change was driven by a richer product mix from our Aerospace, Defense and Government and Energy markets increasing CMC’s gross profit margin from 15.1% for the quarter ended March 31, 2025, to 20.3% for the quarter ended April 3, 2026.
Previous report
CMC research and development expenses for the fiscal quarter ended April 3, 2026 did not meaningfully change compared to the prior year period.
Previous report
CMC interest expense for the fiscal quarter ended April 3, 2026 increased $0.2 million or 61.8% as compared to the prior year period. This increase was primarily attributable to increased borrowings under the Wells Fargo Line of Credit (as defined below).
Previous report
CMC related party interest expense for the fiscal quarter ended April 3, 2026 did not meaningfully change compared to the prior year period as the impact of increased borrowings was offset by favorable changes in the interest rate environment.
Previous report
Other Expense, Net
Previous report
Cost of goods sold for the fiscal quarter ended April 3, 2026, increased $1.2 million, or 25.4%, associated with an increase of $0.5 million, or 7.2%, in revenue compared to the prior year period, resulting in a decrease of $0.7 million, or 23.6%, in gross profit between the fiscal quarter ended April 3, 2026 and the prior year period. This was driven by a shift in product mix within EMP toward lower margin industrial products resulting in a decrease in EMP’s gross profit margin from 37.0% for the fiscal quarter ended March 31, 2025, to 26.4% for the fiscal quarter ended April 3, 2026.
Previous report
General and administrative expenses for the fiscal quarter ended April 3, 2026 increased $0.1 million, or 9.8%, compared to the prior year period, primarily to support EMP’s 7.2% growth in sales.
Previous report
Research and development expenses for the fiscal quarter ended April 3, 2026 did not meaningfully change compared to the prior year period.
Previous report
EMP sales and marketing expenses for the fiscal quarter ended April 3, 2026 increased $0.2 million, or 63.1%, compared to the prior year period, driven primarily by increased sales staffing in support of current and future growth and commissions in support of EMP’s 7.2% sales growth period-over-period.
Previous report
EMP interest expense for the fiscal quarter ended April 3, 2026 did not meaningfully change as compared to the prior year period.
Previous report
EMP related party interest expense for the fiscal quarter ended April 3, 2026 did not meaningfully change compared to the prior year period.
Previous report
EMP other income, net did not meaningfully change compared to the prior year period.
Previous report
Quarter Ended April 3, 2026 Compared to Quarter Ended March 31, 2025
Previous report
Activity related to Corporate and Other for the fiscal quarters ended April 3, 2026 and 2025 is as follows:
Previous report
Research and development expenses were not material for the quarter ended April 3, 2026.
Previous report
Sales and marketing expenses for the quarter ended April 3, 2026 increased $0.1 million, or 10%, compared to the prior year period, primarily attributable to additional expenses associated with increased staffing.
Previous report
Interest (Income) Expense
Previous report
Interest expense (income) – related party for the quarter ended April 3, 2026 increased $0.2 million due primarily to interest on the AAI Note.
Previous report
Other (Income) Expense, Net
Previous report
Other income, net increased by $0.7 million for the quarter ended April 3, 2026, compared to the prior year period, primarily driven by unrealized gains recognized related to the change in the fair value of marketable securities.
Previous report
Income Tax Provision
Previous report
As of April 3, 2026 and December 31, 2025, the outstanding balance under the Domestic March 2020 Line of Credit was $3.1 million and $3.3 million, respectively. As of April 3, 2026, the availability to borrow under the Domestic March 2020 Line of Credit was approximately $0.9 million.
Previous report
Net cash used in financing activities from continuing operations was $6.4 million for the fiscal quarter ended March 31, 2025, driven primarily by principal payments on long-term debt of $3.0 million, payments on revolving credit facilities of $1.6 million, distributions paid to former non-controlling interest holders that are now members of $1.4 million, and distributions paid to members of $0.4 million.
Reworded paragraphs (55)
Previous wording
On April 23, 2026, we completed our initial public offering (“IPO”) of 9,857,142 shares of our common stock, which includes 1,285,714 sold by us pursuant to the exercise of the underwriters’ over-allotment option which was exercised in full, at a public offering price of $14.00 per share. The IPO resulted in net proceeds to us of $128.2 million after deducting the underwriting discounts and commissions and before deducting offering costs of $2.7 million, which were charged to additional paid-in capital as a reduction of the net proceeds received from the IPO. In connection with the IPO, we also granted Cantor Fitzgerald & Co., as representative of the underwriters, a warrant to purchase up to 147,857 shares of common stock (the “Underwriter’s Warrant”) that has an exercise price per share equal to 125% of the public offering price of $14.00 per share, or $17.50 per share. The Underwriter’s Warrant is not exercisable for a period of 180 days following the IPO date and expire four years from the date of issuance. In connection with the IPO, we redeemed all issued and outstanding shares of Class B common stock from Mr. Anania for $25,000 and consolidated and reclassified all Class A and Class B common stock into a single class of $0.001 par value common stock.
Current wording
On April 23, 2026, we completed our initial public offering (“IPO”) of 9,857,142 shares of our common stock, which includes 1,285,714 sold by us pursuant to the exercise of the underwriters’ over-allotment option which was exercised in full, at a public offering price of $14.00 per share. The IPO resulted in net proceeds to us of $128.2 million after deducting the underwriting discounts and commissions and before deducting offering costs of $2.8 million, which were charged to additional paid-in capital as a reduction of the net proceeds received from the IPO. In connection with the IPO, we also granted Cantor Fitzgerald & Co., as representative of the underwriters, a warrant to purchase up to 147,857 shares of common stock (the “Underwriter’s Warrant”) that has an exercise price per share equal to 125% of the public offering price of $14.00 per share, or $17.50 per share. The Underwriter’s Warrant is not exercisable for a period of 180 days following the IPO date and expire four years from the date of issuance. In connection with the IPO, we redeemed all issued and outstanding shares of Class B common stock from Mr. Anania for $25,000 and consolidated and reclassified all Class A and Class B common stock into a single class of $0.001 par value common stock.
Previous wording
On May 19, 2026, our Board of Directors approved a change in our fiscal year end from December 31 to a 4-4-5 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into two four-week months and one five-week month. Under the new fiscal calendar, our fiscal year ends on the Friday closest to December 31. The first fiscal year under the new calendar began on January 1, 2026, and ends on January 1, 2027. As a result of this change, our fiscal quarters ending April 3, 2026, July 3, 2026 and October 2, 2026, may include an additional or lesser number of days compared to the prior year quarters ended March 31, 2025, June 30, 2025 and September 30, 2025, and accordingly, results for these periods may not be fully comparable to those of the prior year periods primarily due to the change in the number of days included in those periods. Our subsidiaries that have a fiscal year end different from that of our Company’s are consolidated using financial statements for periods that are within three months of our Company’s fiscal year end, with adjustments for material transactions, if any. This change was implemented to better align the Company’s accounting operations with quarterly public reporting requirements and to improve comparability of financial performance. The change in fiscal year will not impact our previously issued financial statements or tax reporting.
Current wording
On May 19, 2026, our Board of Directors approved a change in our fiscal year end from December 31 to a 4-4-5 fiscal calendar, whereby each three months consists of thirteen weeks grouped into two four-week months and one five-week month. Under the new fiscal calendar, our fiscal year ends on the Friday closest to December 31. The first fiscal year under the new calendar began on January 1, 2026, and ends on January 1, 2027. As a result of this change, our three months ending April 3, 2026, July 3, 2026 and October 2, 2026, may include an additional or lesser number of days compared to the prior year quarters ended March 31, 2025, June 30, 2025 and September 30, 2025, and accordingly, results for these periods may not be fully comparable to those of the prior year periods primarily due to the change in the number of days included in those periods. Our subsidiaries that have a fiscal year end different from that of our Company’s are consolidated using financial statements for periods that are within three months of our Company’s fiscal year end, with adjustments for material transactions, if any. This change was implemented to better align the Company’s accounting operations with quarterly public reporting requirements and to improve comparability of financial performance. The change in fiscal year will not impact our previously issued financial statements or tax reporting.
Previous wording
The following table sets forth, for the fiscal quarters ended April 3, 2026 and March 31, 2025, our results of continuing operations, including presentation of the changes in between reporting periods:
Current wording
The following table sets forth, for the three months ended July 3, 2026 and June 30, 2025, our results of continuing operations, including presentation of the changes in between reporting periods:
Previous wording
For our CMC and EMP divisions, we track our revenue and customers for our operating divisions across five key markets. We develop sales strategies for each and incentivize our sales resources to profitably grow our business. The following tables demonstrate revenues by markets for the fiscal quarters ended April 3, 2026 and March 31, 2025.
Current wording
For our CMC and EMP divisions, we track our revenue and customers for our operating divisions across five key markets. We develop sales strategies for each and incentivize our sales resources to profitably grow our business. The following tables demonstrate revenues by markets for the three month and six month periods ended July 3, 2026 and June 30, 2025.
Previous wording
Aerospace, Defense and Government revenues increased as a percentage of our business from 38.8% to 40.7%, or $4.8 million, in the fiscal quarter ended April 3, 2026, as compared to the prior year period. Growth was driven by increased sales to larger defense programs including the Hellfire, Javelin, Patriot, KC-135 Stratotanker, AIM-9X Sidewinder and defense radar programs.
Current wording
Aerospace, Defense and Government revenues increased $3.9 million, or 17.6%, but decreased as a percentage of our business from 45.1% to 39.3% in the three months ended July 3, 2026, as compared to the prior year period. Growth was driven by increased sales to larger defense programs including the Hellfire and Javelin along with favorable pricing impacts associated with tungsten products in general.
Previous wording
Industrial revenues decreased as a percentage of our business from 34.2% in the fiscal quarter ended March 31, 2025, to 31.4% in the fiscal quarter ended April 3, 2026, but they increased by $1.8 million for the fiscal quarter ended April 3, 2026, as compared to the prior year period. We saw higher sales of industrial microwave systems for tempering and drying, along with favorable pricing impacts associated with tungsten products.
Current wording
Industrial revenues increased $9.6 million, or 64.0%, and increased as a percentage of our business from 30.5% to 37.0% in the three months ended July 3, 2026, as compared to the prior year period. We saw higher sales of industrial microwave systems for tempering and drying, increased EMP sales into communications end applications, along with favorable pricing impacts associated with tungsten products.
Previous wording
Energy revenues increased as a percentage of our business from 2.3% in the fiscal quarter ended March 31, 2026, to 4.1% in the fiscal quarter ended April 3, 2026, or by $1.2 million compared to the prior year period. The growth experienced in the Energy end-market was distributed across multiple customers in both the oil and gas and nuclear sub-markets.
Current wording
Revenues increased $0.7 million, or 26.3% and remained consistent as a percentage of our business from 2.6% to 2.6% for the six months ended July 3, 2026, as compared to the prior year period. Both comparable periods reflect normal fluctuations in this developing end market with changes distributed across multiple customers in both the oil and gas and nuclear sub-markets.
Previous wording
Shipments by Geography and Material and Type
Current wording
Shipments by Geography, Material and Type
Previous wording
Shipments based on major geographic territory as a percentage of total shipments for the quarter ended April 3, 2026, as compared to the prior year period saw an increase in the Americas from 83.4% to 85.2% driven by increased shipments into various Aerospace, Defense and Government programs, industrial microwave systems for tempering and drying and tungsten pricing impacts. Shipments to Europe as a percentage of total shipment decreased from 12.0% in the fiscal quarter in March 31, 2025, to 10.9% in the fiscal quarter ended April 3, 2026; however, gross shipments increased into Europe by 11.8%, or $0.6 million, period-over-period driven by multiple customers within our EMP segment.
Current wording
Shipments based on major geographic territory as a percentage of total shipments for the three and six months ended July 3, 2026, as compared to the prior year periods, saw an increase in the Americas from 85.4% to 87.3% and 84.5% to 86.4%, respectively, driven by increased shipments into various Aerospace, Defense and Government programs, industrial microwave systems for tempering and drying and tungsten pricing impacts. Shipments to Europe saw a decrease as a percentage of total shipments for the three and six months ended July 3, 2026 as compared to the prior year periods, from 10.6% to 8.7% and 11.3% to 9.7%, respectively. However, gross shipments to Europe increased 22.3%, or $1.1 million, and 26.6%, or $1.0 million, for the three and six month periods as compared to the respective prior year periods, driven by multiple customers within our EMP segment.
Previous wording
Shipments composition based on the type of materials and services as a percentage of total shipments for the quarter ended April 3, 2026, as compared to the prior year period, saw an increase in molybdenum from 59.4% to 59.5%. This was primarily driven by increased volumes with the Javelin and Hellfire missile programs. Tungsten also saw growth period-over-period from 15.8% to 17.8%, primarily driven by pricing increases associated with material input costs and increased volumes across multiple Aerospace, Defense and Government customers. Microwave products saw a decrease period-over-period from 15.5% to 14.2% as a percentage of total, primarily driven by a lower rate of growth than molybdenum and tungsten. Other materials and services saw a reduction from 9.3% to 8.5% period-over-period, primarily driven by modest declines in our tolling services and other metals processing.
Current wording
Shipments composition based on the type of materials and services as a percentage of total shipments for the three and six months ended July 3, 2026, as compared to the prior year periods, saw an increase in molybdenum from 54.0% to 59.4% and 56.6% to 59.4%, respectively. This was primarily driven by increased volumes with the Javelin and Hellfire missile programs and isothermal forging dies for aerospace customers. Tungsten also saw growth for the three and six month period-over-periods from 18.6% to 19.3% and 17.2% to 18.7%, respectively, driven by pricing increases associated with material input costs and increased volumes across multiple Aerospace, Defense and Government customers. Microwave products saw a decrease for the three and six month period-over-periods from 16.6% to 13.5% and 16.1% to 13.8%, respectively, primarily driven by a lower rate of growth compared to molybdenum and tungsten. Other materials and services saw a decrease for the three and six month period-over-periods from 10.8% to 7.8% and 10.1% to 8.1%, respectively, driven by a lower rate of growth compared to molybdenum and tungsten.
Previous wording
EMP saw an increase in cost of goods sold for the fiscal quarter ended April 3, 2026 of $1.2 million, or 25.4%, associated with an increase of $0.5 million, or 7.2%, in revenue compared to the prior year period, resulting in a decrease of $0.7 million, or 23.6%, in gross profit between the fiscal quarter ended April 3, 2026 and the prior year period. This was driven by a shift in product mix within the division toward lower-margin industrial products, which resulted in a decrease in EMP’s gross profit margin from 37.0% for the quarter ended March 31, 2025, to 26.4% for the quarter ended April 3, 2026.
Current wording
EMP saw an increase in cost of goods sold for the three months ended July 3, 2026 of $2.3 million, or 42.3%, associated with an increase of $1.9 million, or 26.0%, in revenue compared to the prior year period, resulting in a decrease of $0.4 million, or 17.0%, in gross profit between the three months ended July 3, 2026 and the prior year period. This was driven by a shift in product mix within the division toward lower-margin industrial products, a rapid increase in aluminum and copper material input pricing as well as operating throughput challenges at one of our facilities, which resulted in a decrease in EMP’s gross profit margin from 27.5% for the three months ended June 30, 2025, to 18.1% for the three months ended July 3, 2026.
Previous wording
General and administrative expenses increased $3.8 million, or 116.9%, for the fiscal quarter ended April 3, 2026, compared to the prior year period. The increase was partially a result of approximately $0.6 million related to stock-based compensation incurred in connection with stock-based awards outstanding during the quarter ended April 3, 2026. Additionally, the increase was partially attributable to $0.8 million in additional one-time corporate costs related to third-party accounting and legal expenses in preparation for the IPO. Additional general and administrative expenses growth was attributable to the increase of staffing and professional services to support public company compliance.
Current wording
General and administrative expenses increased $17.6 million, or 241.6%, for the six months ended July 3, 2026, compared to the prior year period. The increase was primarily a result of approximately $10.9 million related to stock-based compensation incurred in connection with the acceleration of certain vesting criteria associated with the IPO, during the six months ended July 3, 2026. Additionally, general and administrative expenses growth was attributable to the increase of staffing and professional services to support public company compliance, which included $0.8M of one-time costs associated with third-party accounting and legal assistance in preparation for the IPO.
Previous wording
Sales and marketing expenses increased $0.4 million, or 22.8%, for the quarter ended April 3, 2026, compared to the prior year period. This increase was due to the expansion of our sales team in support of our strategy and growth, in particular increased sales staffing and commissions in support of growth within our EMP division.
Current wording
Sales and marketing expenses increased $0.3 million, or 13.9%, for the three months ended July 3, 2026, compared to the prior year period. This increase was due to variable sales compensation associated with sales growth and the expansion of our sales team in support of our strategy.
Previous wording
Interest expense increased $0.1 million or 20.2% for the quarter ended April 3, 2026, compared to the prior year period. The increase was primarily attributable to increased borrowings under the Wells Fargo Line of Credit (as defined below).
Current wording
Related party interest expense increased $0.1 million, or 8.4% for the six months ended July 3, 2026, compared to the prior year period. This was primarily attributable to increased interest paid on the CEO Line of Credit due to an increased balance incurred in the fourth quarter of 2025.
Previous wording
The change in fair value of derivative assets increased approximately $3.1 million due to an increase in value of the equity underlying the options to purchase common stock in one of our publicly-traded vendors.
Current wording
The change in fair value of derivative assets decreased approximately $0.9 million during the three months ended July 3, 2026 and increased $2.2 million during the six months ended July 3, 2026, due to changes in the value of the equity underlying the options to purchase common stock in a publicly-traded company in each period.
Previous wording
The income tax provision for the quarter ended April 3, 2026 increased $4.7 million compared to the prior year period as a result of our being subject to income taxes as a C-corporation following the Reorganization. Of the $4.7 million increase, $3.8 million is attributed directly to a one-time impact associated with the Reorganization, with the balance of $0.9 million associated with the fiscal quarter operating results. Prior to the Reorganization A&A was an S-corporation for taxation purposes, and its income and losses were passed through to its shareholders and reported on their individual tax returns.
Current wording
The income tax benefit for the three months ended July 3, 2026 was $3.8 million compared to an income tax provision of less than $0.1 million for the prior year period. For the six months ended July 3, 2026, the Company recognized an income tax provision of $1.0 million, as compared to less than $0.1 million for the prior year period. Both changes were as result of our being subject to income taxes as a C-corporation following the Reorganization. Prior to the Reorganization A&A was an S-corporation for taxation purposes, and its income and losses were passed through to its shareholders and reported on their individual tax returns.
Previous wording
Pro Forma Net Income Per Share Information
Current wording
Pro Forma Net (Loss) Income Per Share Information
Previous wording
The following pro forma net income per share information is presented for comparative purposes only and does not purport to be indicative of the results that would have been achieved had the Reorganization occurred at an earlier date, nor of future results.
Current wording
The following pro forma net (loss) income per share information is presented for comparative purposes only and does not purport to be indicative of the results that would have been achieved had the Reorganization occurred at an earlier date, nor of future results.
Previous wording
The following table sets forth a reconciliation of the numerators and denominators used to compute pro forma basic and diluted net income per share (in thousands, except share and per share amounts):
Current wording
The following table sets forth a reconciliation of the numerators and denominators used to compute pro forma basic and diluted net (loss) income per share (in thousands, except share and per share amounts):
Previous wording
CMC selling and marketing expenses for the fiscal quarter ended April 3, 2026 increased $0.2 million, or 13.5%, compared to the prior year period. The increase was driven by primarily increased sales staffing and commissions in support of growth, contributing to the 23.2% revenue growth at the CMC division.
Current wording
CMC selling and marketing expenses for the three months ended July 3, 2026 increased $0.2 million, or 19.6%, compared to the prior year period and $0.4 million, or 16.5%, for the six months ended July 3, 2026 compared to the prior year period. The increase was driven by primarily increased sales staffing and commissions in support of growth, contributing to the 36.8% revenue growth for the three month period and 30.2% revenue growth for the six month period at the CMC division.
Previous wording
CMC other expense, net for the fiscal quarter ended April 3, 2026 did not meaningfully change compared to the prior year period.
Current wording
CMC other (income) expense, net for the three and six month periods ended July 3, 2026 did not meaningfully change compared to the prior year periods.
Previous wording
Revenues for the fiscal quarter ended April 3, 2026 increased $0.5 million, or 7.2%, as compared to the prior year period primarily driven by increased sales of industrial microwave systems and radar components.
Current wording
Revenue for the three months ended July 3, 2026 increased $1.9 million, or 26.0%, as compared to the prior year period, and $2.5 million, or 16.7%, for the six months ended July 3, 2026 compared to the prior year period. This was primarily driven by increased sales of industrial microwave systems and radar components.
Previous wording
CMC general and administrative expenses for the fiscal quarter ended April 3, 2026 increased $1.0 million, or 63.6%, compared to the prior year period. The increase was attributable to multiple factors including internal reorganization and resource increases in support of the IPO and public company compliance, additional IT costs associated with defense contractor compliance requirements and variable compensation associated with growth.
Current wording
General and administrative expenses for the three months ended July 3, 2026 increased $0.6 million, or 58.2%, compared to the prior year period, and increased $0.7 million, or 31.3%, for the six months ended July 3, 2026 compared to the prior period. The increase was attributable to multiple factors including stock-based compensation, internal reorganization, resource increases in support of the IPO and public company compliance and variable compensation associated with growth.
Previous wording
General and administrative expenses for the quarter ended April 3, 2026 increased $2.7 million, or 568.0%, compared to the prior year period, primarily attributable to additional expenses associated with preparation for the IPO, including additional staffing and professional advisory fees, legal and accounting support, and stock-based compensation related to grants in anticipation of the IPO.
Current wording
General and administrative expenses for the three months ended July 3, 2026 increased $12.0 million, compared to the prior year period, and $14.6 million, for the six months ended July 3, 2026 compared to the prior year period. This was primarily attributable to stock-based compensation (approximately $10.0 million for three months and approximately $10.9 million for six months), additional expenses associated with preparation for the IPO, including additional staffing and professional advisory fees, legal and accounting support, and stock-based compensation related to grants in anticipation of the IPO.
Previous wording
Interest (income) expense for the quarter ended April 3, 2026 decreased $0.1 million compared to the prior year period, primarily due to the elimination of interest associated with third-party debts previously held by AAI that are no longer included in the consolidated financial statements due to the Reorganization.
Current wording
Interest income, net, increased $0.4 million for the three months ended July 3, 2026 compared to the prior year period, and increased $0.5 million for the six months ended July 3, 2026 compared to the prior year period. This was primarily due to the elimination of interest associated with third-party debts previously held by AAI that are no longer included in the consolidated financial statements due to the Reorganization.
Previous wording
Interest Expense (Income) — Related Party
Current wording
Interest Expense (Income) — Related Party, net
Previous wording
The change in fair value of derivative assets increased approximately $3.0 million due to an increase in value of the equity underlying the options to purchase common stock in one of our publicly-traded vendors.
Current wording
The change in fair value of derivative assets decreased approximately $0.9 million during the three months ended July 3, 2026 and increased $2.2 million during the six months ended July 3, 2026, due to changes in the value of the equity underlying the options to purchase common stock in one of our publicly-traded vendors in each period.
Previous wording
The income tax provision for the quarter ended April 3, 2026 increased $4.7 million compared to the prior year period as a result of the Company being subject to income taxes as a corporation following the Reorganization. Of the $4.7 million, $3.8 million is attributed directly to a one-time impact associated with the Reorganization, with the balance of $0.9 million associated with the quarter operating results. Prior to the Reorganization A&A was an S-corporation for taxation purposes, and its income and losses were passed through to its shareholders and reported on their individual tax returns.
Current wording
The income tax benefit for the three months ended July 3, 2026 was $3.8 million compared to an income tax provision of less than $0.1 million for the prior year period. For the six months ended July 3, 2026, the Company recognized an income tax provision of $1.0 million, as compared to less than $0.1 million for the prior year period. Both changes were as result of our being subject to income taxes as a C-corporation following the Reorganization. Prior to the Reorganization A&A was an S-corporation for taxation purposes and its income and losses were passed through to its shareholders and reported on their individual tax returns.
Previous wording
Our focus on Aerospace, Defense and Government by our CMC and EMP divisions has improved our backlog, as described below. See “—Twelve Month Backlog Trend for CMC and EMP Divisions.” As of April 3, 2026, compared to March 31, 2025, our backlog related to our CMC and EMP divisions increased $38.6 million, or 34.1%, with a 57.2% increase in our Aerospace, Defense and Government backlog, primarily driven by defense programs such as PrSM, Next Gen Interceptor, Hellfire, Javelin, Aegis and KC-135 Stratotanker, along with multiple commercial aerospace programs, and various defense radar programs. All other end markets’ backlog saw a decrease of $9.3 million, or 23.4%, period-over-period. Approximately $9.2 million of the $9.3 million decrease in backlog was associated with timing of orders with our largest medical customer, which places inconsistent short duration purchase orders creating variability in the aggregated other end markets.
Current wording
Our focus on Aerospace, Defense and Government by our CMC and EMP divisions has improved our open order backlog ("Backlog"), as described below. See “—Twelve Month Backlog Trend for CMC and EMP Divisions.” As of July 3, 2026, compared to June 30, 2025, our backlog related to our CMC and EMP divisions increased $46.9 million, or 55.4%, with a 100.5% increase in our Aerospace, Defense and Government backlog, driven by defense programs such as PrSM, Next Generation Interceptor, Hellfire, Javelin, Aegis and KC-135 Stratotanker, commercial aerospace programs, various defense radar programs and the effects of the increased of tungsten material price flowing through to our end product pricing. All other end markets backlog saw a decrease of $(2.4) million, or (6.8)%, period-over-period. The major driver of the decrease in backlog was associated with timing of orders with our largest medical customer, which drove the medical revenue increase in the reported periods, and which places inconsistent short duration purchase orders creating variability in the aggregated other end markets backlog.
Previous wording
Open order backlog (“Backlog”) is measured by confirmed orders and contracts from customers less revenues recognized as of the date measured. The chart below presents our Backlog as of the dates indicated, which represents a key measure of our business growth. Backlog in the chart below excludes discontinued operations.
Current wording
Backlog is measured by confirmed orders and contracts from customers less revenues recognized as of the date measured. The chart below presents our Backlog as of the dates indicated, which represents a key measure of our business growth. Backlog in the chart below excludes discontinued operations.
Previous wording
Adjusted Net Income and Adjusted Net Income Per Share are non-GAAP measurementsand are performance measures. We define adjusted net income as net income less stock-based compensation and one-time non-recurring costs such as tax impacts of the Reorganization, discontinued operations, the costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring costs, and other non-recurring costs and the income tax effect of such adjustments, as applicable.
Current wording
Adjusted Net Income and Adjusted Net Income Per Share are non-GAAP measurements and are performance measures. We define adjusted net income as net income less stock-based compensation and one-time non-recurring costs such as tax impacts of the Reorganization, discontinued operations, the costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring costs, and other non-recurring costs and the income tax effect of such adjustments, as applicable.
Previous wording
The following table summarizes our reconciliation of adjusted earnings per share from continuing operations for the fiscal quarters ended April 3, 2026 and March 31, 2025, with discontinued operations excluded from the results of continuing operations (in thousands, except percentages):
Current wording
The following table summarizes our reconciliation of adjusted earnings per share from continuing operations for the three and six month periods ended July 3, 2026 and June 30, 2025, with discontinued operations excluded from the results of continuing operations (in thousands, except percentages):
Previous wording
The following table summarizes our reconciliation of income (loss) from continuing operations to Adjusted EBITDA from Continuing Operations and our Adjusted EBITDA Margin from Continuing Operations for the fiscal quarter ended April 3, 2026, for our divisions, with discontinued operations excluded from the results of continuing operations (in thousands, except percentages):
Current wording
The following tables summarize our reconciliation of income (loss) from continuing operations to Adjusted EBITDA from Continuing Operations and our Adjusted EBITDA Margin from Continuing Operations for the three and six month periods ended July 3, 2026, for our divisions, with discontinued operations excluded from the results of continuing operations (in thousands, except percentages):
Previous wording
The following table summarizes our reconciliation of income (loss) from continuing operations to Adjusted EBITDA from Continuing Operations and our Adjusted EBITDA Margin from Continuing Operations for the fiscal quarter ended March 31, 2025 for our divisions, with discontinued operations excluded from the results of continuing operations (in thousands, except percentages):
Current wording
The following tables summarize our reconciliation of income (loss) from continuing operations to Adjusted EBITDA from Continuing Operations and our Adjusted EBITDA Margin from Continuing Operations for the three and six month periods ended June 30, 2025 for our divisions, with discontinued operations excluded from the results of continuing operations (in thousands, except percentages):
Previous wording
We record stock-based compensation expense for stock-based awards issued to our employees based on our estimate of the fair value of the stock-based awards at the grant date. We estimate the fair value of our stock-based awards based on the fair value of our common stock. See*“Note 2 — Summary of Significant Accounting Policies — Stock-Based Compensation”* within our unaudited consolidated financial statements as of April 3, 2026 and for the quarter ended April 3, 2026, and March 31, 2025, included elsewhere in this Report.
Current wording
We record stock-based compensation expense for stock-based awards issued to our employees based on our estimate of the fair value of the stock-based awards at the grant date. We estimate the fair value of our stock-based awards based on the fair value of our common stock. See“Note 2 — Summary of Significant Accounting Policies — Stock-Based Compensation” within our unaudited consolidated financial statements as of July 3, 2026 and for the three and six month periods ended July 3, 2026, and June 30, 2025, respectively, included elsewhere in this Report.
Previous wording
See “Note 3 — Recently Adopted and Recently Issued Accounting Pronouncements” within our unaudited consolidated financial statements as of April 3, 2026 and for the quarters ended April 3, 2026 and March 31, 2025, included elsewhere in this Report for any recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted.
Current wording
See “Note 3 — Recently Adopted and Recently Issued Accounting Pronouncements” within our unaudited consolidated financial statements as of July 3, 2026 and for the three and six month periods ended July 3, 2026 and June 30, 2025, respectively, included elsewhere in this Report for any recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted.
Previous wording
As of April 3, 2026, we had $1.8 million in cash, $0.8 million in marketable securities, and approximately $23.9 million in available debt facility capacity. As of December 31, 2025, our continuing operations had $1.8 million in cash, $0.2 million in marketable securities, and $26.1 million in available debt capacity.
Current wording
As of July 3, 2026, we had $66.1 million in cash, $4.9 million in marketable securities, and approximately $44.8 million in available debt facility capacity. As of December 31, 2025, our continuing operations had $1.8 million in cash, $0.2 million in marketable securities, and $26.1 million in available debt capacity.
Previous wording
As of April 3, 2026 and December 31, 2025, outstanding borrowings under the Wells Fargo LOC were approximately $18.7 million and $20.5 million, respectively. As of April 3, 2026 and December 31, 2025, the applicable interest rates were 5.91% and 5.92%, respectively, on $10.0 million outstanding as of each period and 7.75% and 7.75% respectively, on the remaining outstanding amount of approximately $8.7 million and $10.5 million, respectively. As of April 3, 2026, availability to borrow under the Wells Fargo LOC was approximately $21.2 million. The Wells Fargo LOC matures on the earlier of (i) November 6, 2028, or (ii) the maturity date of the Great Falls Term Loan (as defined below).
Current wording
As of July 3, 2026 and December 31, 2025, outstanding borrowings under the Wells Fargo LOC were approximately $0.7 million and $20.5 million, respectively. As of July 3, 2026 and December 31, 2025, the applicable interest rates were 7.50% and 5.92%, respectively, on the $0.7 million and $10.0 million outstanding as of each period and 7.75% on the remaining outstanding amount of approximately $10.5 million as of December 31, 2025. The Wells Fargo LOC consists of two different borrowing tranches with different applicable rates, and therefore there may be multiple rates for the same period, depending on the overall outstanding balance. As of July 3, 2026, availability to borrow under the Wells Fargo LOC was approximately $39.2 million. The Wells Fargo LOC matures on the earlier of (i) November 6, 2028, or (ii) the maturity date of the Great Falls Term Loan (as defined below).
Previous wording
On March 2, 2020, Microwave Techniques entered into a $3.0 million demand line of credit with BankProv (formerly known as The Provident Bank and now known as Needham Bank after its merger in November 2025) (the “Domestic March 2020 Line of Credit”) to finance domestic receivables and inventory. Amounts under the Domestic March 2020 Line of Credit were secured by certain assets of Microwave Techniques and are guaranteed by Microwave Techniques. The Domestic March 2020 Line of Credit accrued interest monthly based on a floating rate equal to the prime rate as reported in the Wall Street Journal, which was equal to 6.75% and 7.00% as of April 3, 2026 and December 31, 2025, respectively.
Current wording
On March 2, 2020, Microwave Techniques entered into a $3.0 million demand line of credit with BankProv (formerly known as The Provident Bank and now known as Needham Bank after its merger in November 2025) (the “Domestic March 2020 Line of Credit”) to finance domestic receivables and inventory. Amounts under the Domestic March 2020 Line of Credit were secured by certain assets of Microwave Techniques and are guaranteed by Microwave Techniques. The Domestic March 2020 Line of Credit accrued interest monthly based on a floating rate equal to the prime rate as reported in the Wall Street Journal, which was equal to 6.75% and 7.00% as of July 3, 2026 and December 31, 2025.
Previous wording
As of April 3, 2026 and December 31, 2025, the outstanding principal balance of the CEO Line of Credit was approximately $1.6 million and $1.8 million, respectively. As of April 3, 2026, the availability to borrow under the CEO Line of Credit was approximately $0.9 million. The CEO Line of Credit was subject to customary conditions, including events of default, which we were in compliance with as of the date of this Report.
Current wording
As of December 31, 2025, the outstanding principal balance of the CEO Line of Credit was approximately $1.8 million. The CEO Line of Credit was subject to customary conditions, including events of default, which we were in compliance with as of the date of this Report.
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
•the productivity and availability of skilled labor;
Current report — wording carried from elsewhere
The following table sets forth, for the six months ended July 3, 2026 and June 30, 2025, our results of continuing operations, including presentation of the changes in between reporting periods:
Current report — wording carried from elsewhere
CMC general and administrative expenses for the three months ended July 3, 2026 increased $1.2 million, or 54.5%, compared to the prior year period and $2.2 million, or 58.5% for the six months ended July 3, 2026 compared to the prior year period. These increases for both periods were attributable to multiple factors including approximately $0.2 million related to stock-based compensation incurred in connection with the IPO, internal reorganization and resource increases in support of the IPO and public company compliance, additional IT costs associated with defense contractor compliance requirements and variable compensation associated with growth.
Current report — wording carried from elsewhere
•Adjusted Net Income. We define adjusted net income as net income less stock-based compensation and one-time non-recurring costs such as tax impacts of the Reorganization, discontinued operations, the costs associated with the IPO, certain acquisition and transaction costs, severance and restructuring costs, and other non-recurring costs and the income tax effect of such adjustments, as applicable.