Savers Value Village, Inc.

Previous wording

You should read the following discussion and analysis of the financial condition and results of operations of Savers Value Village, Inc. in conjunction with the unaudited interim condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q (the “Quarterly Report”) and our audited consolidated financial statements for the year ended December 28, 2024 and related notes included in our Annual Report on Form 10-K filed with the SEC on February 21, 2025 (our “Annual Report”).

Current wording

You should read the following discussion and analysis of the financial condition and results of operations of Savers Value Village, Inc. in conjunction with the unaudited interim condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q (the “Quarterly Report”) and our audited consolidated financial statements for the 53 weeks ended January 3, 2026 (“fiscal 2025”) and related notes included in our Annual Report on Form 10-K filed with the SEC on February 20, 2026 (our “Annual Report”).

Previous wording

Unless the context otherwise requires, all references in this section to “Savers Value Village”, “the Company”, “we”, “us” or “our” refer to the business of Savers Value Village, Inc. and its predecessor entities.

Current wording

Unless the context otherwise requires, all references in this section to “Savers Value Village”, “the Company”, “we”, “us” or “our” refer to the business of Savers Value Village, Inc.

Previous wording

We are the largest for-profit thrift operator in the United States (“U.S.”) and Canada based on number of stores and operate a total of 364 stores under the Savers®, Value Village®, Value Village Boutique™, Village des Valeurs MD, Unique® and 2nd Ave.® banners. We are committed to redefining secondhand shopping by providing one-of-a-kind, low-priced merchandise ranging from quality clothing to home goods in an exciting treasure-hunt shopping environment. We purchase secondhand textiles (e.g., clothing, bedding and bath items), shoes, accessories, housewares, books and other goods from our non-profit partners (“NPPs”). We then process, select, price, merchandise and sell these items in our stores. Items that are unsuited for or unsold at retail stores are marketed to wholesale customers who reuse or repurpose the items they purchase from us. We believe our hyper-local and socially responsible procurement model, industry-leading and innovative operations, differentiated value proposition and deep relationships with our customers distinguish us from other secondhand and value-based retailers. Our business model is rooted in sustainability and contributing to the communities we serve, with a mission to positively impact our stakeholders: thrifters, NPPs and their donors, our team members and our stockholders. As a leader and pioneer of the for-profit thrift category, we seek to positively impact the environment by reducing waste and extending the life of reusable goods. The vast majority of the clothing and textiles we source is sold to our retail or wholesale customers.

Current wording

We are the largest for-profit thrift operator in the United States (“U.S.”) and Canada based on number of stores and operated a total of 370 stores as of April 4, 2026 under the Savers®, Value Village®, Value Village Boutique™, Village des Valeurs MD, Unique® and 2nd Ave.® banners. We are committed to redefining secondhand shopping by providing one-of-a-kind, low-priced merchandise ranging from quality clothing to home goods in an exciting treasure-hunt shopping environment. We purchase secondhand textiles (e.g., clothing, bedding and bath items), shoes, accessories, housewares, books and other goods from our non-profit partners (“NPPs”). We then process, select, price, merchandise and sell these items in our stores. Items that are unsuited for or unsold at retail stores are marketed to wholesale customers who reuse or repurpose the items they purchase from us. We believe our hyper-local and socially responsible procurement model, industry-leading and innovative operations, differentiated value proposition and deep relationships with our customers distinguish us from other secondhand and value-based retailers. Our business model is rooted in sustainability and contributing to the communities we serve, with a mission to positively impact our stakeholders: thrifters, NPPs and their donors, our team members and our stockholders. As a leader and pioneer of the for-profit thrift category, we seek to positively impact the environment by reducing waste and extending the life of reusable goods. The vast majority of the clothing and textiles we source is sold to our retail or wholesale customers.

Previous wording

We offer a dynamic, ever-changing selection of items, with an average unit retail price of approximately $5. Our most engaged customers are members of our Super Savers Club® loyalty program. As of September 27, 2025, we had approximately 6.1 million total active members enrolled in our U.S. and Canadian loyalty programs who have shopped with us within the last twelve months, compared to approximately 5.8 million total active members as of September 28, 2024. Active members drove 72.5% of retail sales during the twelve months ended September 27, 2025, compared to 71.9% during the twelve months ended September 28, 2024.

Current wording

We offer a dynamic, ever-changing selection of items, with an average unit retail price (“AUR”) of approximately $5. Our most engaged customers are members of our Super Savers Club® loyalty program. As of January 3, 2026, we had 6.1 million total active members enrolled in our U.S. and Canadian loyalty programs who shopped with us during fiscal 2025 and drove 72.7% of retail sales during the same period.

Previous wording

We source our merchandise primarily through three distinct and strategic procurement models: (i) on-site donations (“OSDs”), (ii) GreenDrop locations and (iii) delivered supply. Increasing the proportion of OSDs and GreenDrop as a percentage of total supply is desirable as donations from these sources are usually of higher quality and collectively have a lower cost than product sourced through other channels. OSDs and GreenDrop are collectively the largest part of our supply mix, accounting for 80.7% of our total pounds processed for the thirteen weeks ended September 27, 2025, compared to 79.8% forthe thirteen weeks ended September 28, 2024. OSDs and GreenDrop accounted for 77.9% of our total pounds processed for the thirty-nine weeks ended September 27, 2025, compared to 76.8% forthe thirty-nine weeks ended September 28, 2024.

Current wording

We source our merchandise primarily through three distinct and strategic procurement models: (i) on-site donations (“OSDs”), (ii) GreenDrop locations and (iii) delivered supply. Increasing the proportion of OSDs and GreenDrop as a percentage of total supply is desirable as donations from these sources are generally of higher quality and collectively have a contractually lower cost than product sourced through other channels, which benefits sales yield, and ultimately, our gross product margin. OSDs and GreenDrop are collectively the largest part of our supply mix, and accounted for 75.9% and 74.0% of our total pounds processed for the thirteen weeks ended April 4, 2026 and March 29, 2025, respectively.

Previous wording

•GreenDrop locations: Attended donation stations that collect donations of items made by individuals to our NPPs at convenient and well-signed brick and mortar and trailer locations in neighborhoods surrounding a store. On behalf of our NPPs, we solicit, collect and deliver items from our GreenDrop locations to our stores and Centralized Processing Centers (“CPCs”).

Current wording

•GreenDrop locations: Attended donation stations that collect donations of items made by individuals to our NPPs at well-signed brick and mortar or trailer locations conveniently located closer to attractive donor neighborhoods in the same market as a store. On behalf of our NPPs, we solicit, collect and deliver items from our GreenDrop locations to our stores and Centralized Processing Centers (“CPCs”).

Previous wording

•Delivered supply: Delivered supply comprises donations delivered either to our CPCs or our stores, or both. These donations can be collected by our NPPs through a variety of methods such as neighborhood collections or donation drives, or we may solicit, collect and deliver the items on behalf of our NPPs.

Current wording

•Delivered supply: Delivered supply comprises donations delivered either to our CPCs or directly to our stores. This channel supplements OSDs and GreenDrop collections by addressing remaining assortment and volume needs necessary to offer customers a full and balanced product mix. Donations may be collected by our NPPs through neighborhood collections, donation drives, or similar methods, or we may solicit, collect and deliver items on behalf of our NPPs.

Previous wording

The majority of our retail stores have a dedicated space that handles the processing of soft and hard goods that provide the inventory to be sold on our retail sales floors. During the thirteen weeks ended September 27, 2025, we processed 282 million pounds of secondhand goods, compared to 261 million during thethirteen weeks ended September 28, 2024. During the thirty-nine weeks ended September 27, 2025, we processed 823 million pounds of secondhand goods, compared to 753 million during thethirty-nine weeks ended September 28, 2024. We are actively implementing our offsite processing strategy which allows us to process goods at larger-scale facilities and distribute goods to multiple stores in a local market. The processing of donations under this strategy can occur at offsite warehouse facilities, stores with surplus processing capacity or at CPCs.

Current wording

The majority of our retail stores have a dedicated space that handles the processing of soft and hard goods that provide the inventory to be sold on our retail sales floors. During the thirteen weeks ended April 4, 2026, we processed 266 million pounds of secondhand goods, compared to 262 million during thethirteen weeks ended March 29, 2025. We are continuing to implement our offsite processing strategy, which is an important component of our operating model and supports store growth by enabling processing at larger-scale facilities and distribution to multiple stores in a local market. The processing of donations under this strategy can occur at offsite warehouse facilities, stores with surplus processing capacity or at CPCs.

Previous wording

Our store experience directly reflects our mission to make secondhand second nature. We deliver a well merchandised environment that maximizes customer engagement and supports a core tenet for any thrifter—the treasure hunt. Our stores offer a wide selection of quality items across clothing, home goods, books and other items at convenient locations. Our sales floor inventory is also regularly rotated and refreshed, providing our customers with an extensive, ever-changing selection at tremendous value.

Current wording

Our store experience directly reflects our mission to make secondhand second nature. We deliver a well merchandised environment that maximizes customer engagement and supports a core tenet for any thrifter—the treasure hunt. Our stores offer a wide selection of quality items across clothing, home goods, books and other items. Our sales floor inventory is also regularly rotated and refreshed, providing our customers with an extensive, ever-changing selection at tremendous value.

Previous wording

The following highlights our financial results for the thirteen weeks ended September 27, 2025 (the “third quarter”). Comparisons are to the thirteen weeks ended September 28, 2024:

Current wording

The following highlights our financial results for the thirteen weeks ended April 4, 2026 (the “first quarter”). Comparisons are to the thirteen weeks ended March 29, 2025:

Previous wording

•Total Company net sales increased 8.1% to $426.9 million; constant-currency net sales increased 8.6%; and comparable store sales increased 5.8%.

Current wording

•Total Company net sales increased 8.9% to $403.2 million; constant-currency net sales increased 6.9%; and comparable store sales increased 3.5%.

Previous wording

•For the U.S., net sales increased 10.5% and comparable store sales increased 7.1%.

Current wording

•For the United States (“U.S.”), net sales increased 11.2% and comparable store sales increased 6.4%.

Previous wording

•The Company opened 10 new stores, ending the third quarter with 364 stores.

Current wording

•The Company opened 3 new stores, ending the first quarter with 370 stores.

Previous wording

•Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was $70.0 million and Adjusted EBITDA margin was 16.4%. Changes in foreign currency exchange rates negatively impacted Adjusted EBITDA by $0.6 million during the third quarter.

Current wording

•Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was $44.5 million and Adjusted EBITDA margin was 11.0%.

Previous wording

There remains significant uncertainty in the current macroeconomic environment, driven by several factors, including global trade policies and tariffs. While the Company is not directly impacted by tariffs due to its hyper-local procurement model, in periods of perceived or actual unfavorable economic conditions, consumers may reallocate their discretionary spending, which may adversely impact demand for the Company’ products and its profitability.

Current wording

Broad developments in the Middle East, including the conflict involving Iran, and political and economic instability in Venezuela have contributed to volatility in global energy markets. While the Company is not directly impacted by import disruptions due to its hyper-local procurement model, these conditions may increase transportation costs and, in periods of perceived or actual unfavorable economic conditions, lead consumers to reallocate discretionary spending which may adversely impact demand for the Company’s products and its profitability.

Previous wording

(2)Total comparable store sales include our Australia retail locations, in addition to retail stores in the U.S. and Canada.

Current wording

(2)Total comparable store sales includes our Australia retail locations, in addition to the U.S. and Canada.

Previous wording

(1)Comparable store sales is the percentage change in comparable store sales over the comparable period in the prior fiscal year. Beginning in fiscal 2025, comparable store sales is defined as sales by stores that have been in operation for all or a portion of 14 months. The impact of the change is inconsequential to prior periods, so we have not recast previous year amounts to reflect this change. For the periods presented, comparable store sales exclude stores acquired from 2 Peaches Group, LLC (the “2 Peaches Acquisition”). Comparable store sales is measured in local currency for Canada, while total comparable store sales is measured on a currency neutral basis.

Current wording

Comparable store sales is the percentage change in comparable store sales over the comparable period in the prior fiscal year. Comparable store sales is defined as sales by stores that have been in operation for all or a portion of 14 months. Comparable store sales is measured in local currency for Canada, while total comparable store sales is measured on a currency neutral basis.

Previous wording

We define pounds processed as the total number of pounds of goods processed during the period, excluding furniture and other large items. This metric is an indicator of the amount of secondhand goods processed during the period and is typically a key driver of top-line sales growth. We process inventory by receiving goods directly from our NPPs or through OSDs and GreenDrop, sorting them, and placing them on the sales floor. Increasing the proportion of OSDs and GreenDrop as a percentage of total supply is desirable as donations from these sources are usually of higher quality and collectively have a lower cost than product sourced through other channels. We believe investors can use these metrics to assist in their evaluation of our sales growth and sales yield.

Current wording

We define pounds processed as the total number of pounds of goods processed during the period, excluding furniture and other large items. This metric is an indicator of the amount of secondhand goods processed during the period and is typically a key driver of top-line sales growth. We process inventory by receiving goods directly from our NPPs or through OSDs and GreenDrop, sorting them and placing them on the sales floor. Increasing the proportion of OSDs and GreenDrop as a percentage of total supply is desirable, as donations from these sources are generally of higher quality and collectively have a contractually lower cost than product sourced through other channels, which benefits sales yield, and ultimately, our gross product margin. We believe investors can use these metrics to assist in their evaluation of our sales growth, sales yield and to an extent, gross product margin.

Previous wording

During the thirteen weeks ended September 27, 2025 and September 28, 2024, we processed 282 million and 261 million pounds of supply, respectively, of which 80.7% and 79.8% was comprised of supply from OSDs and GreenDrop, respectively.

Current wording

During thethirteen weeks ended April 4, 2026 and March 29, 2025, we processed 266 million and 262 million pounds of supply, respectively, of which 75.9% and 74.0% was comprised of supply from OSDs and GreenDrop, respectively.

Previous wording

Our sales yield for the thirteen weeks ended September 27, 2025 was $1.48, compared to $1.45 for the thirteen weeks ended September 28, 2024. The 2.1% increase in sales yield primarily reflects items sold at higher price points.

Current wording

Our sales yield for the thirteen weeks ended April 4, 2026 was $1.47 compared to $1.38 for the thirteen weeks ended March 29, 2025. The 6.5% increase in sales yield primarily reflects an increase in items sold per pound processed and higher average price points.

Previous wording

Our number of stores provides us visibility into the scale of our operations and is viewed as a key driver of long-term growth. We believe investors can use this metric to assess our ability to open new stores in high-growth markets while reducing the number of stores in low-growth markets.

Current wording

Our number of stores provides us visibility into the scale of our operations and is viewed as a key driver of long-term growth. We believe investors can use this metric to assess our ability to open new stores in high-growth markets.

Previous wording

Retail sales increased by $32.8 million, or 8.7%, during the thirteen weeks ended September 27, 2025, compared to the thirteen weeks ended September 28, 2024. The increase in retail sales resulted primarily from a 5.8% increase in comparable store sales and growth in our store base, partially offset by the unfavorable impact of foreign currency exchange rates.

Current wording

Retail sales increased by $35.4 million, or 10.1%, during the thirteen weeks ended April 4, 2026, compared to the thirteen weeks ended March 29, 2025. The increase in retail sales resulted primarily from a 3.5% increase in comparable store sales, growth in our store base and the favorable impact of foreign currency exchange rates.

Previous wording

Cost of merchandise sold increased 80 basis points to 44.1% of net sales during the thirteen weeks ended September 27, 2025, compared to 43.3% for the thirteen weeks ended September 28, 2024. The 80 basis point increase primarily reflects the impact of new stores and deleverage of cost of merchandise sold as a percentage of net sales on comparable store sales in Canada due to higher processing, partially offset by the favorable impact of year-over-year growth in OSDs.

Current wording

Cost of merchandise sold decreased 10 basis points to 45.4% of net sales during the thirteen weeks ended April 4, 2026, compared to 45.5% for the thirteen weeks ended March 29, 2025. The 10 basis point decrease primarily reflects improvement in cost of merchandise sold as a percentage of net sales on comparable store sales due to increased operating efficiency and the favorable impact of year-over-year growth in OSDs, partially offset by new store dilution.

Previous wording

Personnel costs classified within cost of merchandise sold were $117.0 million during the thirteen weeks ended September 27, 2025, compared to $99.8 million during the thirteen weeks ended September 28, 2024. The $17.2 million increase in personnel costs resulted primarily from growth in our store base, increased labor to support higher processing, higher wage rates and the opening of new offsite processing facilities.

Current wording

Personnel costs classified within cost of merchandise sold were $113.7 million during the thirteen weeks ended April 4, 2026, compared to $105.5 million during the thirteen weeks ended March 29, 2025. The $8.2 million increase in personnel costs resulted primarily from growth in our store base and higher wage rates, partially offset by labor efficiency gains.

Previous wording

Personnel costs for our corporate employees decreased by $6.9 million, or 6.9%, during the thirty-nine weeks ended September 27, 2025, compared to the thirty-nine weeks ended September 28, 2024, primarily reflecting a $24.4 million decrease in IPO-related stock-based compensation expense, largely offset by higher annual incentive plan expense, wages and non-IPO-related stock-based compensation expense.

Current wording

Personnel costs for our corporate employees decreased by $0.7 million, or 2.1%, during the thirteen weeks ended April 4, 2026, compared to the thirteen weeks ended March 29, 2025, primarily reflecting a $5.0 million decrease in IPO-related stock-based compensation expense, largely offset by higher wages, non-IPO-related stock-based compensation expense and annual incentive plan expense.

Previous wording

SG&A for our retail and wholesale operations increased by$7.2 million, or 9.7%, during the thirteen weeks ended September 27, 2025, compared to the thirteen weeks ended September 28, 2024. The increase primarily reflects growth in our store base, higher rent and utilities, as well as increased preopening expenses.

Current wording

SG&A for our retail and wholesale operations increased by$9.3 million, or 12.2%, during the thirteen weeks ended April 4, 2026, compared to the thirteen weeks ended March 29, 2025. The increase resulted primarily from growth in our store base and increased routine maintenance costs, including an increase in snow removal costs, as well as higher rent and utilities.

Previous wording

Corporate SG&A increased by$8.4 million, or 89.0%, during the thirteen weeks ended September 27, 2025, compared to the thirteen weeks ended September 28, 2024. The increase primarily reflects impairment charges, debt transaction costs and the year-over-year change in the fair value of acquisition-related contingent consideration.

Current wording

Corporate SG&A increased by$2.1 million, or 18.7%, during the thirteen weeks ended April 4, 2026, compared to the thirteen weeks ended March 29, 2025. The increase primarily reflects investments in information technology.

Previous wording

Gains and losses on foreign currency relate primarily to movements in the CAD relative to the USD. During the thirty-nine weeks ended September 27, 2025, the USD weakened against the CAD relative to December 28, 2024, resulting in remeasurement gains of $9.7 million arising primarily on USD-denominated debt held by one of our Canadian subsidiaries. We also recorded losses of $3.3 million during thethirty-nine weeks ended September 27, 2025 on derivative instruments we use to manage foreign currency exchange rate risk.

Current wording

Gains and losses on foreign currency relate primarily to movements in the CAD relative to the USD. During the thirteen weeks ended April 4, 2026, the USD strengthened against the CAD relative to January 3, 2026, resulting in remeasurement losses of $3.6 million arising primarily on USD-denominated debt held by one of our Canadian subsidiaries. We also recorded losses of $2.4 million during thethirteen weeks ended April 4, 2026 on derivative instruments we use to manage foreign currency exchange rate risk.

Previous wording

During the thirteen weeks ended September 28, 2024, the USD weakened against the CAD relative to June 29, 2024, resulting in remeasurement gains of $3.6 million arising primarily on USD-denominated debt held by one of our Canadian subsidiaries. We also recorded losses of $1.2 million during the thirteen weeks ended September 28, 2024 on derivative instruments we use to manage foreign currency exchange rate risk.

Current wording

During the thirteen weeks ended March 29, 2025, the USD weakened against the CAD relative to December 28, 2024, resulting in remeasurement gains of $2.0 million arising primarily on USD-denominated debt held by one of our Canadian subsidiaries. We also recorded losses of $0.3 million during the thirteen weeks ended March 29, 2025 on derivative instruments we use to manage foreign currency exchange rate risk.

Previous wording

During thethirty-nine weeks ended September 28, 2024, loss on extinguishment of debt of $4.1 million comprised $0.7 million associated with the repricing of outstanding borrowings under our 2021 Term Loan Facility on January 30, 2024 and $3.4 million associated with the redemption of $49.5 million aggregate principal amount of the Notes on March 4, 2024.

Current wording

During thethirteen weeks ended March 29, 2025, loss on extinguishment of debt comprised $2.7 million associated with the redemption of $44.5 million aggregate principal amount of the Senior Secured Notes on February 6, 2025.

Previous wording

The following table presents other expense (income), net:

Current wording

The following table presents other expense, net:

Previous wording

Other (income) expense, net is comprised primarily of miscellaneous income and expenses not directly related to our core operating activities.

Current wording

Other expense, net is comprised primarily of miscellaneous income and expenses not directly related to our core operating activities.

Previous wording

The following table presents income tax (benefit) expense:

Current wording

The following table presents income tax benefit:

Previous wording

We estimate an annual projected effective tax rate for the fiscal year to determine income tax expense or benefit in the interim periods. The increase in our effective tax rate during the thirty-nine weeks ended September 27, 2025, compared to the thirty-nine weeks ended September 28, 2024, is primarily due to a decrease in income before income taxes. This reduction amplifies the relative impact of permanent tax differences - such as Section 162(m) excess compensation, tax shortfall in stock-based compensation and change in valuation allowance - which do not vary directly with income and therefore have a disproportionate effect on the effective tax rate in periods of lower profitability.

Current wording

We estimate an annual projected effective tax rate for the fiscal year to determine income tax expense or benefit in the interim periods. The modest increase in income tax benefit for the thirteen weeks ended April 4, 2026, compared to the thirteen weeks ended March 29, 2025 was primarily attributable to higher losses generated in jurisdictions not subject to a valuation allowance, along with a lower tax shortfall related to stock-based compensation.

Previous wording

U.S. Retail sales increased by $22.2 million, or 10.5%, during the thirteen weeks ended September 27, 2025, compared to the thirteen weeks ended September 28, 2024. The increase in U.S. Retail sales resulted from a 7.1% increase in comparable store sales, as well as growth in our store base. The increase in comparable store sales was driven by higher transactions and average basket.

Current wording

U.S. Retail sales increased by $23.5 million, or 11.2%, during the thirteen weeks ended April 4, 2026, compared to the thirteen weeks ended March 29, 2025. The increase in U.S. Retail sales resulted from a 6.4% increase in comparable store sales and growth in our store base. The increase in comparable store sales was driven by higher average basket and transactions.

Previous wording

U.S. Retail segment profit increased by $2.0 million, or 1.5%, during the thirty-nine weeks ended September 27, 2025, compared to the thirty-nine weeks ended September 28, 2024. The increase in U.S. Retail segment profit primarily reflects higher profit from our comparable stores, partially offset by the impact of new stores.

Current wording

U.S. Retail segment profit increased by $3.7 million, or 9.6%, during the thirteen weeks ended April 4, 2026, compared to the thirteen weeks ended March 29, 2025. The increase in U.S. Retail segment profit primarily reflects higher profit from our comparable stores, partially offset by the impact of new stores.

Previous wording

Adjusted net income is defined asnet (loss) income excluding the impact of loss on extinguishment of debt, IPO-related stock-based compensation expense, transaction costs, foreign currency exchange rate impacts, executive transition costs, certain other adjustments, the tax effect on the above adjustments andthe excess tax shortfall (benefit) from stock-based compensation. We define Adjusted net income per diluted share as Adjusted net income divided by adjusted diluted weighted average common shares outstanding.

Current wording

Adjusted net income is defined asnet loss excluding the impact of loss on extinguishment of debt, IPO-related stock-based compensation expense, transaction costs, foreign currency exchange rate impacts, certain other adjustments, the tax effect on the above adjustments andthe excess tax shortfall from stock-based compensation. We define Adjusted net income per diluted share as Adjusted net income divided by adjusted diluted weighted average common shares outstanding.

Previous wording

Adjusted EBITDA is defined as net (loss) income excluding the impact of interest expense, net, income tax (benefit) expense, depreciation and amortization, loss on extinguishment of debt, stock-based compensation expense, lease intangible asset expense, executive transition costs, transaction costs, foreign currency exchange rate impacts and certain other adjustments. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net sales, expressed as a percentage.

Current wording

Adjusted EBITDA is defined as net loss excluding the impact of interest expense, net, income tax benefit, depreciation and amortization, loss on extinguishment of debt, stock-based compensation expense, lease intangible asset expense, transaction costs, foreign currency exchange rate impacts and certain other adjustments. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net sales, expressed as a percentage.

Previous wording

A reconciliation of GAAP net (loss) income and GAAP net (loss) income per diluted share to Adjusted net income and Adjusted net income per diluted share is presented in the table below:

Current wording

A reconciliation of GAAP net loss and GAAP net loss per diluted share to Adjusted net income and Adjusted net income per diluted share is presented in the table below:

Previous wording

(2)Removes the effects of the loss on extinguishment of debt in relation to the full redemption of the Notes and repayment of all outstanding amounts under the 2021 Term Loan Facility on September 18, 2025, the partial redemption of the Notes on February 6, 2025 and March 4, 2024, and the repricing of outstanding borrowings under the 2021 Term Loan Facility on January 30, 2024.

Current wording

(2)Removes the effect of loss on extinguishment of debt in relation to the partial redemption of our Senior Secured Notes on February 6, 2025.