Market Newsdesk

Q1 2026
EPS Exceeded Guidance Range, Both Revenue and GM At the High End of Guidance Range Issued on February 12, 2026

Company Q2 2026 Guidance: Revenues to Increase 10.0% to 13.0% QoQ, Gross Margin is Expected to be around 32%. Profit per Diluted ADS to be 8.6 Cents to 10.3 Cents

• Q1 2026 revenues were $199.0 million, a slight sequential decline of 2.0%, reaching the high end of guidance range of 2.0% to 6.0% decrease QoQ
• Q1 GM reached 30.4%, at the high end of guidance of flat to slightly down from 30.4% in the previous quarter
• Q1 2026 after-tax profit was $8.0 million, or 4.6 cents per diluted ADS, exceeding the guidance range of 2.0 to 4.0 cents
• Himax Q2 2026 revenues to increase 10.0% to 13.0% QoQ. GM to be around 32%. Profit per diluted ADS to be in the range of 8.6 cents to 10.3 cents
• Himax expects upward momentum through the remainder of 2026, supported by a meaningful number of new automotive projects scheduled to enter MP in 2H26. The positive outlook is also supported by the anticipated growth in non-driver IC businesses, particularly Tcon and WiseEye AI
• Himax remains confident in its long-term automotive display IC growth prospects, underpinned by its leading technology portfolio, broad and diversified customer base, strong design-win pipeline across DDIC and TDDI, and substantial lead over competitors
• Despite automotive market headwinds, Himax continues to enjoy strong growth momentum in automotive Tcon. Particularly in solutions featuring local dimming functionality, backed by hundreds of secured design-wins across a broad and diversified customer base, Himax is well positioned for sustained growth
• Himax expects revenues from AI and AR glasses applications to grow substantially over the next few years

TAINAN, Taiwan, May 07, 2026 (GLOBE NEWSWIRE) — Himax Technologies, Inc. (Nasdaq: HIMX) (“Himax” or “Company”), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, announced its financial results for the first quarter 2026 ended March 31, 2026.

“We expect upward momentum through the remainder of 2026, supported by a meaningful number of new automotive projects scheduled to enter mass production in the second half, a view consistent with our outlook from last quarter’s call. The positive outlook is also supported by the anticipated growth in our non-driver IC businesses, particularly Tcon and WiseEye AI. Despite ongoing macro uncertainty, Himax continues to expand beyond its traditional display IC business, focusing on key growth areas including smart glasses, ultralow power AI and CPO. These emerging technologies present significant growth opportunities that help diversify our revenue base into areas with attractive gross margin profiles and profitability while also strengthening our overall competitiveness.” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.

First Quarter 2026 Financial Results

Himax net revenues registered $199.0 million, representing a slight sequential decline of 2.0%, reaching the high end of its guidance range of a decline of 2.0% to 6.0%. Gross margin was 30.4%, also at the high end of Company’s guidance of flat to slightly down from 30.4% in the previous quarter. Q1 profit per diluted ADS was 4.6 cents, exceeding the guidance range of 2.0 to 4.0 cents.

Revenue from large display drivers came in at $24.2 million, representing an increase of 11.7% from the previous quarter, outperforming Company’s guidance range of a single-digit increase sequentially. This was primarily driven by better-than-expected restocking of high-end TV ICs by a leading panel maker. Sales of large panel driver ICs accounted for 12.2% of total revenues for the quarter, compared to 10.7% last quarter and 11.6% a year ago.

Revenue from the small and medium-sized display driver segment totaled $135.8 million, reflecting a slight decline of 2.4% sequentially amid a typical low season. In line with guidance, Q1 automotive driver sales, including both traditional DDIC and TDDI, declined double digits sequentially, reflecting Lunar New Year seasonality, customers’ inventory control following two consecutive quarters of restocking, and the tapering of automotive subsidy programs in major markets including China and the US. In contrast, revenues for smartphone, covering both LCD and OLED products, increased sequentially primarily due to new OLED solutions that began mass production with a top-tier panel maker for a leading smartphone brand’s mainstream model. Q1 tablet IC sales also increased sequentially, driven by renewed demand for mainstream models from leading customers following several quarters of softness, as well as the commencement of IC shipments for a customer’s new premium OLED tablet. The small and medium-sized driver IC segment accounted for 68.2% of total sales for the quarter, compared to 68.5% in the previous quarter and 70.0% a year ago.

Q1 non-driver sales reached $39.0 million, a 7.7% decrease from the previous quarter, reflecting a decline in ASIC Tcon shipments to a leading projector customer, along with a moderation in automotive Tcon shipments following several quarters of solid growth. However, underlying demand for Himax’s automotive Tcon business remains robust, supported by a strong pipeline of hundreds of design-win projects poised to enter mass production in the coming quarters. Non-driver products accounted for 19.6% of total revenues, as compared to 20.8% in the previous quarter and 18.4% a year ago.

First quarter operating expenses were $50.3 million, a decrease of 8.4% from the previous quarter but an increase of 9.9% compared to the same period last year. Both the quarter-over-quarter and year-over-year changes were primarily driven by differences in tape-out expenses, reflecting the timing of major project tape-outs. The year-over-year increase was also attributable to salary expenses and the appreciation of the NT dollar against the U.S. dollar. Against a backdrop of ongoing macroeconomic challenges, Himax continues to maintain strict cost and expense discipline, while strategically investing in selected non-driver IC areas with compelling growth potential, some of which are poised to ramp meaningfully starting in 2027.

First quarter operating profit was $10.2 million, representing an operating margin of 5.1%, compared to 3.4% in the previous quarter and 9.2% for the same period last year. The sequential increase was the result of lower operating expenses. The year-over-year decline reflected the lower sales and gross margin, coupled with higher operating expenses. First-quarter after-tax profit was $8.0 million, or 4.6 cents per diluted ADS, compared to $6.3 million, or 3.6 cents per diluted ADS last quarter, and down from $20.0 million, or 11.4 cents in the same period last year.

Balance Sheet and Cash Flow

Himax had $287.6 million of cash, cash equivalents and other financial assets as of March 31, 2026. This compares to $281.0 million at the same time last year and $286.2 million a quarter ago. As of March 31, 2026, Himax had $27.0 million in long-term unsecured loans, with $6.0 million being the current portion.

Himax’s quarter-end inventories as of March 31, 2026 were $151.7 million, slightly lower than $152.7 million last quarter but higher than $129.9 million the same period last year. Having maintained lean inventory levels in prior years, Himax made a strategic decision about a year ago to selectively loosen inventory control in response to an industry-wide shift toward tight supply. Accounts receivable at the end of March 2026 was $190.9 million, down from $200.9 million last quarter and $217.5 million a year ago. DSO was 86 days at the quarter end, as compared to 88 days last quarter and 91 days a year ago. First quarter capital expenditures were $2.9 million, versus $4.0 million last quarter and $5.2 million a year ago. First quarter capex was mainly for R&D-related equipment for Himax’s IC design business.

Prior to today’s call, Himax announced an annual cash dividend of 25.2 cents per ADS, totaling $44 million and payable on July 10, 2026, with a payout ratio of 100% of the previous year’s profit. The high payout ratio reflects Company’s healthy balance sheet and positive outlook for cashflow generation over the next few years. For business areas where Himax has in-house manufacturing capacity such as WLO and LCoS, existing capacity is in place to support the strong growth anticipated for the next few years. Himax will continue to focus on maintaining a healthy balance sheet and driving sustainable long-term growth, while delivering shareholder value through high dividends and share repurchases.

Outstanding Share

As of March 31, 2026, Himax had 174.4 million ADS outstanding, unchanged from last quarter. On a fully diluted basis, the total number of ADS outstanding for the first quarter was 174.4 million.

Q2 2026 Outlook

The rapid rise in AI demand is placing unprecedented strain on memory chip supply, impacting many non-AI applications. This, in turn, has led to capacity tightness across foundry, packaging, and testing in mature process nodes where Himax is anchored, putting upward pressure on Company’s cost structure. Rising gold prices have further compounded these cost pressures. With cost pressure expected to persist, Himax is actively working with customers on pricing adjustments to share rising costs, with some price increases already taking effect in Q2.

Market conditions remain dynamic, compounded by ongoing geopolitical tensions, and the market’s visibility remains limited on both consumer electronics and automotive for the second half of the year. That said, as indicated in Himax’s last earnings call, the first quarter marked the trough with the second quarter recovery tracking as anticipated, primarily driven by customer inventory restocking. Himax expects upward momentum through the remainder of 2026, supported by a meaningful number of new automotive projects scheduled to enter mass production in the second half, a view consistent with Himax’s outlook from last quarter’s call. The positive outlook is also supported by the anticipated growth in Himax’s non-driver IC businesses, particularly Tcon and WiseEye AI.

In the display IC business for automotive, Himax remains confident in its long-term growth prospects, as automotive is an area relatively insulated from memory price impact compared to consumer electronics products such as smartphone and notebook. The long-term positive outlook is underpinned by Himax’s leading technology portfolio, broad and diversified customer base, strong design-win pipeline across DDIC and TDDI, and substantial lead over competitors. Himax’s display IC portfolio spans a comprehensive range of solutions which enable novel and stylish automotive displays. Such technologies include automotive Tcon with advanced local dimming functionality, LTDI for ultra-large displays, advanced Tcon solutions for state-of-the-art head-up displays, as well as automotive OLED and Micro LED technologies. Customer adoption of these advanced display technologies continues to accelerate across new vehicle models, driving higher content value per vehicle for Himax and creating new growth momentum for Himax’s automotive display IC business in the years ahead.

Despite ongoing macro uncertainty, Himax continues to expand beyond its traditional display IC business, focusing on key growth areas including smart glasses, ultralow power AI and CPO. These emerging technologies present significant growth opportunities that help diversify Himax’s revenue base into areas with attractive gross margin profiles and profitability while also strengthening its overall competitiveness.

Smart glasses market is a key strategic focus area that Himax is quite optimistic about. Himax is uniquely positioned as one of the few companies with both ultralow power AI capabilities and microdisplay, both critical for smart glasses. WiseEye provides ultralow power always-on AI sensing capabilities, targeting a broad range of smart glasses, while its LCoS microdisplay solutions enable display functionality critical for AR glasses with see-through displays. Himax is pleased to share that a leading brand has adopted its WiseEye for its smart glasses, with mass production expected later this year and additional prominent brands are expected to follow.

In microdisplays for AR glasses, built on the debut of Himax’s proprietary Front-lit LCoS microdisplay at Display Week last year, the Company returned to Display Week 2026 with a new-generation upgrade that significantly enhances contrast, dynamic range, and optical efficiency. These advances, driven by Himax’s proprietary technologies, deliver a substantial increase in contrast performance while effectively eliminating the “postcard effect” commonly seen for microdisplays in dark environments. Himax’s Front-lit LCoS solution offers an optimal balance among weight, size, resolution, image quality, power consumption, and cost, positioning it as a compelling choice for AR glasses.

For both WiseEye and LCoS microdisplay, supported by expanding customer engagements across technology heavyweights and smart glasses specialists globally, Himax is increasingly optimistic about the new space, even compared to just a few quarters ago. Himax expects revenues from AI and AR glasses applications to grow substantially over the next few years.

In the field of Co-Packaged Optics (CPO), together with FOCI, Himax’s strategic partner, the Company continues to make steady progress on both the Gen 1 and Gen 2 products as planned. The Gen 1 solution, supporting 1.6T and 3.2T transmission bandwidth, is now ready with small quantity shipments expected to commence in the second half of this year. Meanwhile, the Gen 2 solution, targeting 6.4T bandwidth with significant volume potential, is nearing completion of customer product validation for AI data center applications. Building on this momentum, Himax and FOCI’s main goal for 2026 is to achieve mass-production readiness, with only limited shipments expected during the year, followed by an accelerating volume ramp starting 2027.

At the same time, in close partnership with FOCI, Himax and FOCI continue to advance multiple future-generation high-speed optical transmission technologies and CPO architectures in collaboration with leading global customers and partners, focusing on higher fiber channels, more advanced optical designs, and enhanced optical precision to meet the explosive bandwidth demands of HPC and AI data center applications.

In early March, FOCI completed a NT$3.16 billion rights issue to support R&D, equipment purchases and preparations for CPO mass production. Himax, already a shareholder through two earlier tranches of share offerings in 2023 and 2024, participated in the rights issue, which not only demonstrates Company’s continued support for its partner and further strengthens collaboration between the two companies, but also underscores that advancing CPO technology requires highly integrated efforts through close collaboration and joint development. With an average acquisition cost of NT$120.6 per share, Himax’s equity stake, representing 5.36% of FOCI, now totals NT$4.96 billion (US$156 million) as of May 7 when the market closed at NT$815 per share.

Himax’s FOCI investment has been booked as a “financial asset measured at fair value through other comprehensive income” on the balance sheet since day one of investment. As such, based on accounting rules, FOCI’s share price fluctuations are recognized in Himax’s books as “accumulated other comprehensive income”, a balance sheet item under owners’ equity and do not affect its profit and loss. Likewise, upon disposal, any resulting gain or loss will be recognized only on the balance sheet through change of retained earnings and, again, will have no impact on the profit and loss. This accounting treatment Himax chose underscores its long-term commitment to the FOCI investment. Himax expects CPO to become a major revenue and profit contributor in the years ahead.

Display Driver IC Businesses

LDDIC

In Q2 2026, Himax anticipates large display driver IC sales to decrease by high-teens quarter-over-quarter, attributable to customers pulling forward their inventory purchases for TV applications in prior quarters. In contrast, both monitor and notebook IC products are poised for sequential increases due to higher legacy product shipments to key customers.

Looking ahead to the notebook market, Himax’s focus is on premium models featuring OLED displays and LCD displays with touch functionality. Himax offers a full spectrum of IC solutions for both LCD and OLED notebooks, including DDIC, Tcon, touch controller, and TDDI, enabling Himax to provide customers with a comprehensive one-stop solution while increasing its content per device. Himax continues to see strong design-in momentum particularly in OLED for notebooks, where rising memory prices are depressing lower-end demand and accelerating the shift to premium segments. The scheduled ramp-up of new Gen 8.6 OLED fabs later this year and in 2027 in China adds another tailwind, further driving higher OLED adoption in notebooks.

SMDDIC

Q2 small and medium-sized display driver IC business is expected to increase high-teens from last quarter. Q2 automotive driver IC sales, including TDDI and traditional DDIC, are set to increase by double digit quarter-over-quarter. Both DDIC and TDDI sales are expected to increase sequentially, driven mainly by broad-based replenishment from panel customers with lean inventories, as well as the ramp-up of new TDDI and DDIC projects for a leading panel customer.

Despite global softness in automotive sales, Himax’s long-term competitive position remains solid, supported by hundreds of design wins already secured across TDDI, DDIC, Tcon, and an expanding OLED portfolio. In addition, Himax is deepening its well-established supply chain in Taiwan while expanding across China, Singapore, Japan, Korea and Malaysia. This ensures production flexibility and cost competitiveness, while also addressing customers’ geopolitical considerations. Himax continues to lead the global automotive display market with a 40% share in DDIC, well over half in TDDI, and an even higher market share in local dimming Tcon.

Himax also continues to lead in automotive display IC innovation, pioneering solutions across a wide range of panel types while addressing diverse design requirements and cost considerations. Recent evidence of such efforts is Himax’s LTDI technology for ultra-large touch displays where multiple projects have entered mass production in several car brands across different continents. After years of engagement with customers globally, Himax expects meaningful revenue contributions from LTDI starting this year. Himax’s integrated single-chip solution combining TDDI and local dimming Tcon represents another such innovation. Targeting smaller and lower resolution automotive touch displays, it delivers a compelling option for cost- and space-constrained applications without compromising performance. Design-in activities continue to expand globally, with multiple projects underway across leading panel customers, Tier 1s and OEMs.

Looking ahead, the accelerating adoption of OLED displays in automotive creates significant opportunities for Himax. Company’s ASIC OLED DDIC and Tcon solutions have already been in mass production for several years, with continued customer adoption. Himax now also offers new standard DDIC and Tcon products to support scalable deployment. In parallel, collaborations are underway with leading panel makers on new custom ASICs, positioning Himax well to address diverse customer requirements across a wide range of automotive display applications. Together, these efforts position Himax to capture increasing semiconductor content as premium automotive displays evolve from LCD to OLED.

In addition, Himax’s advanced OLED touch ICs are a key pillar of its automotive OLED portfolio, delivering industry-leading signal-to-noise performance and high-precision multi-finger touch capability, enabling reliable operation even when wearing thick gloves or with wet fingers. Himax’s OLED touch ICs started mass production in 2024. Since then, they have been increasingly adopted by leading panel makers and end customers across Korea, China, the U.S., and Europe. Multiple new projects are poised to enter mass production in the coming quarters.

Moving to smartphone IC sales, Himax expects Q2 smartphone revenue, covering both LCD and OLED products, to decrease quarter over quarter following the initial ramp up of an OLED IC for a leading smartphone brand’s mainstream model in the prior quarter. For tablet ICs, Q2 sales are expected to increase sequentially, driven by customers’ early pull-in demand against the backdrop of rising memory price sentiment in the market, with ongoing shipments for a customer’s premium OLED tablet also contributing to sequential growth.

Non-Driver Product Categories

Q2 non-driver IC revenues are expected to increase by double-digit sequentially.

Timing Controller (Tcon)

Himax anticipates Q2 2026 Tcon sales to increase by double-digit quarter over quarter. Himax’s automotive Tcon business is expected to deliver decent double-digit growth in Q2, driven by shipments from prior design-wins across the board. Despite automotive market headwinds, Himax continues to enjoy strong growth momentum in automotive Tcon. Particularly in solutions featuring local dimming functionality, backed by hundreds of secured design-wins across a broad and diversified customer base, Himax is well positioned for sustained growth. In Q2, Himax expects Tcon to account for over 12% of total sales, with more than half contributed by automotive Tcon.

Meanwhile, head-up displays are poised to become an integral part of new-generation smart cockpits, driving demand for sophisticated Tcon technologies, an area where Himax holds a strong leadership position. Himax’s multifunctional Tcon not only delivers excellent contrast, eliminating the “postcard effect” often seen in HUDs, it also supports full-area selectable local de-warping to correct image distortion caused by windshield curvature and/or projection angle. In addition, integrated On-Screen Display function ensures that critical safety information remains visible even when the system is malfunctioning and/or powered down. Together, these features make Himax’s Tcon a compelling solution for customers’ HUD applications, as evidenced by fast expanding design-in activities with leading panel makers and Tier 1 players. This growing HUD pipeline positions Himax well for broader deployment and meaningful revenue contribution starting in 2027.

WiseEye

^TM

Ultralow Power AI Sensing

On the update of WiseEye™ ultralow power AI sensing solution, a cutting-edge ultralow power AI sensing total solution, targeting endpoint device markets. WiseEye stands out due to its industry-leading, ultralow power design, operating at merely a few milliwatts, combined with an extremely compact size, on-device AI inferencing, and 24/7 always-on image and voice sensing. This combination enables advanced AI capabilities in endpoint devices that were once constrained by power and size limitations and has already been widely adopted across a wide range of applications, including notebooks, surveillance systems, access control devices, palm vein authentication, smart home solutions, and smart glasses, with further customer engagements currently underway.

Regarding WiseEye modules, design-in activities continue to expand, driven by their plug-and-play architecture, combined with ultralow power consumption and on-device AI capabilities. These features help developers accelerate innovation and scale their products from prototypes to commercial deployment. This broad applicability has led to adoption across a wide range of domains, including smart access control, space management, computer monitor, automotive, and bicycle applications. In particular, Himax’s PalmVein module is rapidly securing design wins, offering a touchless, high-security solution with high accuracy and advanced liveness detection. Combined with GDPR-compliant architecture, one of the world’s strictest data privacy laws, Himax’s PalmVein solution ensures robust data privacy and protection of user biometric information through privacy centric on-device processing. Himax is seeing growing PalmVein module adoption across applications such as smart access control, workforce management, and smart door locks, with multiple projects progressing toward mass production in the coming quarters.

Meanwhile, WiseEye is gaining broad market recognition in smart glasses as a compact, ultralow power, always-on perceptual front end. WiseEye supports both outward-facing environmental sensing, mainly object classification and scene understanding, and inward-facing capabilities, including eyeball tracking and iris authentication, delivering environment-aware vision AI and responsive, low-latency human–machine interaction for smart glasses. This combination of capabilities makes WiseEye ideally suited for wearable devices requiring real-time responsiveness with minimal battery impact and is a key factor driving design-in momentum among smart glasses players.

LCoS

On Himax’s latest advancement in LCoS microdisplay technology, at Display Week 2026 this week in Los Angeles, Himax showcased its ultra-luminous, high-contrast miniature Dual-Edge Front-lit LCoS microdisplay. Himax was also invited to deliver an in-depth presentation at the symposium, highlighting its recognized expertise and leadership in LCoS microdisplay technology. Himax’s LCoS solution is a full color microdisplay that integrates illumination optics and LCoS panel into an exceptionally compact form factor of just 0.09 cc and 0.2 grams, delivering up to 350,000 nits of brightness and 1 lumen output at just 200 mW total power consumption. It can also be configured for high-brightness, low-power, green-only mode and frictionlessly switched back upon command from the central processor, allowing for improved power efficiency across different ambient light conditions while supporting customers’ cost targets. In addition, its ultra-high luminance ensures excellent visibility in bright environments, while Himax’s proprietary technologies significantly enhance contrast and reduce the “postcard effect” frequently observed in low-light conditions.

Himax is currently working closely with multiple waveguide partners across China, Europe, Israel, Japan, Taiwan, and the U.S. to bundle these technologies into display systems for AR glasses, streamlining system integration and driving future design-in opportunities. Himax will provide further updates in due course.

Second Quarter 2026 Guidance
Net Revenue:	Increase 10.0% to 13.0% QoQ
Gross Margin:	Around 32%, depending on final product mix
Profit:	8.6 cents to 10.3 cents per diluted ADS

Q2 gross margin guidance mainly reflects a more favorable product mix, with increased sales from higher-margin non-driver products and reduced sales from lower-margin products.

HIMAX TECHNOLOGIES FIRST QUARTER 2026 EARNINGS CONFERENCE CALL
DATE:	Thursday, May 7, 2026
TIME:	U.S.	8:00 a.m. EDT
	Taiwan	8:00 p.m.
Live Webcast (Video and Audio):	https://www.zucast.com/webcast/VEYCPnbP
Toll Free Dial-in Number (Audio Only):	Hong Kong 2112-1444 Taiwan 0080-119-6666 Australia 1-800-015-763 Canada 1-877-252-8508 China (1) 4008-423-888 China (2) 4006-786-286 Singapore 800-492-2072 UK 0800-068-8186 United States (1) 1-800-811-0860 United States (2) 1-866-212-5567
Dial-in Number (Audio Only):	Taiwan Domestic Access 02-3396-1191 International Access +886-2-3396-1191
Participant PIN Code:	1404507#

If you choose to attend the call by dialing in via phone, please enter the Participant PIN Code 1404507# after the call is connected. A replay of the webcast will be available beginning two hours after the call on www.himax.com.tw. This webcast can be accessed by clicking on this link or visiting Himax’s website, where it will remain available until May 7, 2027.

About Himax Technologies, Inc.

Himax Technologies, Inc. (NASDAQ: HIMX) is a leading global fabless semiconductor solution provider dedicated to display imaging processing technologies. The Company’s display driver ICs and timing controllers have been adopted at scale across multiple industries worldwide including TVs, PC monitors, laptops, mobile phones, tablets, automotive, ePaper devices, industrial displays, among others. As the global market share leader in automotive display technology, the Company offers innovative and comprehensive automotive IC solutions, including traditional driver ICs, advanced in-cell Touch and Display Driver Integration (TDDI), local dimming timing controllers (Local Dimming Tcon), Large Touch and Display Driver Integration (LTDI) and OLED display technologies. Himax is also a pioneer in tinyML visual-AI and optical technology related fields. The Company’s industry-leading WiseEye^TM Ultralow Power AI Sensing technology which incorporates Himax proprietary ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm has been widely deployed in consumer electronics and AIoT related applications. Himax optics technologies, such as diffractive wafer level optics, LCoS microdisplays and 3D sensing solutions, are critical for facilitating emerging AR/VR/metaverse technologies. Additionally, Himax designs and provides touch controllers, OLED ICs, LED ICs, EPD ICs, power management ICs, and CMOS image sensors for diverse display application coverage. Founded in 2001 and headquartered in Tainan, Taiwan, Himax currently employs around 2,200 people from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country offices in China, Korea, and the U.S. Himax has 2,564 patents granted and 331 patents pending approval worldwide as of March 31, 2026.

http://www.himax.com.tw

Forward Looking Statements

Factors that could cause actual events or results to differ materially from those described in this conference call include, but are not limited to, the effect of the Covid-19 pandemic on the Company’s business; general business and economic conditions and the state of the semiconductor industry; market acceptance and competitiveness of the driver and non-driver products developed by the Company; demand for end-use applications products; reliance on a small group of principal customers; the uncertainty of continued success in technological innovations; our ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; changes in estimated full-year effective tax rate; shortage in supply of key components; changes in environmental laws and regulations; changes in export license regulated by Export Administration Regulations (EAR); exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; our ability to collect accounts receivable and manage inventory and other risks described from time to time in the Company’s SEC filings, including those risks identified in the section entitled “Risk Factors” in its Form 20-F for the year ended December 31, 2025 filed with the SEC, as may be amended.

Company Contacts:

Karen Tiao, Head of IR/PR

Himax Technologies, Inc.
Tel: +886-2-2370-3999
Fax: +886-2-2314-0877
Email: [email protected]
www.himax.com.tw

Mark Schwalenberg, Director

Investor Relations – US Representative

MZ North America
Tel: +1-312-261-6430
Email: [email protected]
www.mzgroup.us

-Financial Tables-

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Profit or Loss
(These interim financials do not fully comply with IFRS because they omit all interim disclosure required by IFRS)
(Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data)
	Three Months Ended March 31,								3 Months Ended December 31 ,
	2026				2025				2025
Revenues
Revenues from third parties, net	$	199,003			$	215,095			$	203,071
Revenues from related parties, net		10				38				10
		199,013				215,133				203,081
Costs and expenses:
Cost of revenues		138,568				149,581				141,378
Research and development		38,179				34,987				41,647
General and administrative		6,027				5,557				7,434
Sales and marketing		6,079				5,202				5,793
Total costs and expenses		188,853				195,327				196,252
Operating income		10,160				19,806				6,829
Non operating income:
Interest income		1,979				2,312				2,289
Changes in fair value of financial assets at fair value through profit or loss		139				(17	)			1,001
Foreign currency exchange gains (losses), net		(51	)			345				(82	)
Finance costs		(807	)			(903	)			(839	)
Share of losses of associates		(881	)			(742	)			(818	)
Other gains		–				3,205				–
Other income		9				17				52
		388				4,217				1,603
Profit before income taxes		10,548				24,023				8,432
Income tax expense		2,109				3,841				1,698
Profit for the period		8,439				20,182				6,734
Profit attributable to noncontrolling interests		(450	)			(195	)			(398	)
Profit attributable to Himax Technologies, Inc. stockholders	$	7,989			$	19,987			$	6,336
Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders	$	0.046			$	0.114			$	0.036
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders	$	0.046			$	0.114			$	0.036
Basic Weighted Average Outstanding ADS		174,426				174,913				174,475
Diluted Weighted Average Outstanding ADS		174,426				175,072				174,475

Himax Technologies, Inc.
IFRS Unaudited Condensed Consolidated Statements of Financial Position
(Amounts in Thousands of U.S. Dollars)
	March 31, 2026				March 31, 2025				December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	259,693			$	275,445			$	257,504
Financial assets at amortized cost		3,881				2,286				2,714
Financial assets at fair value through profit or loss		24,036				3,253				26,004
Accounts receivable, net (including related parties)		190,940				217,549				200,876
Inventories		151,671				129,867				152,675
Income taxes receivable		41				717				492
Restricted deposit		568,200				503,700				568,200
Other receivable from related parties		18				11				22
Other current assets		56,941				37,760				56,845
Total current assets		1,255,421				1,170,588				1,265,332
Financial assets at fair value through profit or loss		25,587				23,524				26,516
Financial assets at fair value through other comprehensive income		76,252				29,985				56,836
Equity method investments		10,254				8,061				10,212
Property, plant and equipment, net		118,501				120,538				120,031
Deferred tax assets		21,865				20,872				22,268
Goodwill		28,138				28,138				28,138
Other intangible assets, net		2,146				619				2,565
Restricted deposit		–				30				–
Refundable deposits		172,706				215,271				185,247
Other non-current assets		18,012				17,854				17,875
		473,461				464,892				469,688
Total assets	$	1,728,882			$	1,635,480			$	1,735,020
Liabilities and Equity
Current liabilities:
Short-term unsecured borrowings	$	–			$	602			$	140
Current portion of long-term unsecured borrowings		6,000				6,000				6,000
Short-term secured borrowings		568,200				503,700				568,200
Accounts payable		128,307				105,610				138,683
Income taxes payable		15,758				12,785				14,357
Other payable to related parties		–				–				364
Contract liabilities-current		2,986				5,176				3,322
Other current liabilities		54,443				50,443				68,443
Total current liabilities		775,694				684,316				799,509
Long-term unsecured borrowings		21,000				27,000				22,500
Deferred tax liabilities		709				557				727
Other non-current liabilities		8,541				7,489				10,145
		30,250				35,046				33,372
Total liabilities		805,944				719,362				832,881
Equity
Ordinary shares		107,010				107,010				107,010
Additional paid-in capital		115,136				115,722				115,850
Treasury shares		(9,760	)			(5,546	)			(9,760	)
Accumulated other comprehensive income		49,774				7,874				36,704
Retained earnings		651,577				684,587				643,588
Equity attributable to owners of Himax Technologies, Inc.		913,737				909,647				893,392
Noncontrolling interests		9,201				6,471				8,747
Total equity		922,938				916,118				902,139
Total liabilities and equity	$	1,728,882			$	1,635,480			$	1,735,020

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
	Three Months Ended March 31,								Three Months Ended December 31 ,
	2026				2025				2025
Cash flows from operating activities:
Profit for the period	$	8,439			$	20,182			$	6,734
Adjustments for:
Depreciation and amortization		5,938				5,156				6,725
Share-based compensation expenses		98				100				140
Losses on disposals and scrap of property, plant and equipment, net		4				(3,205	)			10
Changes in fair value of financial assets at fair value through profit or loss		(139	)			17				(1,001		)
Interest income		(1,979	)			(2,312	)			(2,289		)
Finance costs		807				903				839
Income tax expense		2,109				3,841				1,698
Share of losses of associates		881				742				818
Inventories write downs		3,041				4,444				3,959
Unrealized foreign currency exchange losses		440				441				268
		19,639				30,309				17,901
Changes in:
Accounts receivable (including related parties)		9,934				13,083				(47		)
Inventories		(2,047	)			24,435				(18,696		)
Other receivable from related parties		4				2				(6		)
Other current assets		1,774				(978	)			(8,108		)
Accounts payable		(10,380	)			(7,250	)			10,275
Other payable to related parties		(364	)			–				364
Contract liabilities		(334	)			735				919
Other current liabilities		(14,544	)			(3,763	)			12,653
Other non-current liabilities		21				71				21
Cash generated from operating activities		3,703				56,644				15,276
Interest received		585				438				4,112
Interest paid		(596	)			(835	)			(949		)
Income tax refunded (paid), net		318				(200	)			(1,630		)
Net cash provided by operating activities		4,010				56,047				16,809
Cash flows from investing activities:
Acquisitions of property, plant and equipment		(2,858	)			(5,221	)			(3,991		)
Acquisitions of intangible assets		(104	)			(52	)			(20		)
Acquisitions of financial assets at amortized cost		(1,145	)			–				(2,700		)
Proceeds from disposal of financial assets at amortized cost		–				2,000				–
Acquisitions of financial assets at fair value through profit or loss		(9,508	)			(6,160	)			(7,605		)
Proceeds from disposal of financial assets at fair value through profit or loss		10,257				5,017				2,323
Acquisitions of financial assets at fair value through other comprehensive income		(6,385	)			(2,500	)			–
Acquisition of a subsidiary, net of cash paid		–				–				(584		)
Acquisitions of equity method investment		(244	)			–				1,030
Decrease in refundable deposits		10,270				10,283				22
Net cash provided by (used in) investing activities		283				3,367				(11,525		)
Cash flows from financing activities:
Purchase of treasury shares		–				–				(630		)
Prepayments for purchase of treasury shares		–				–				(370		)
Proceeds from issuance of new shares by subsidiaries		–				–				31
Purchases of subsidiary shares from noncontrolling interests		–				–				(127		)
Proceeds of short-term unsecured borrowings		–				612				–
Repayments of short-term unsecured borrowings		(140	)			–				(1,125		)
Repayments of long-term unsecured borrowings		(1,500	)			(1,500	)			(1,916		)
Proceeds from short-term secured borrowings		580,900				484,300				543,760
Repayments of short-term secured borrowings		(580,900	)			(484,300	)			(543,760		)
Payment of lease liabilities		(518	)			(1,448	)			(579		)
Guarantee deposits refunded		–				–				(1		)
Net cash used in financing activities		(2,158	)			(2,336	)			(4,717		)
Effect of foreign currency exchange rate changes on cash and cash equivalents		54				219				(153		)
Net increase in cash and cash equivalents		2,189				57,297				414
Cash and cash equivalents at beginning of period		257,504				218,148				257,090
Cash and cash equivalents at end of period	$	259,693			$	275,445			$	257,504

Costa Mesa, CA, May 07, 2026 (GLOBE NEWSWIRE) — Real Messenger Corporation (“Real Messenger” or the “Company”) (Nasdaq: RMSG), an innovative chat-based platform reimagining real estate connections, today announced that it received a formal notification from The Nasdaq Stock Market LLC (“Nasdaq”) dated May 6, 2026, notifying the Company that it has regained compliance with Nasdaq Listing Rule 5550(a)(2), which requires listed securities to maintain a minimum bid price of $1.00 per share (the “Nasdaq Minimum Bid Price Requirement”).

On March 13, 2026, the Company had received a letter from Nasdaq, notifying the Company that it was not in compliance with the Nasdaq Minimum Bid Price Requirement, because the closing bid price of the Company’s class A ordinary shares was below $1 per share for the last 30 consecutive business days (i.e. from January 29, 2026 to March 12, 2026).

Nasdaq has now determined that, for the last 10 consecutive business days, from April 22, 2026 to May 5, 2026, the closing bid price of the Company’s class A ordinary shares was at or above $1.00 per share, and accordingly, the Company has regained compliance with Listing Rule 5550(a)(2), and the prior minimum bid price deficiency matter is now closed.

About Real Messenger Corporation

Real Messenger Corporation (Nasdaq: RMSG) is a real estate technology platform headquartered in Costa Mesa, CA. Founded in 2022, Real Messenger is transforming real estate engagement by connecting agents, buyers, sellers, and other industry participants within a unified, social platform. With users across 35 countries, Real Messenger’s primary reach is in the U.S., with notable growth in key markets such as the U.K. and Australia.

With over 1 million users, Real Messenger is building a vibrant global community, creating a dynamic space for real estate connections, insights, and experiences. In recognition of its impact, Real Messenger was named to the 2023 HousingWire Tech 100 list, and its CEO, Thomas Ma, was honored in Inman’s “Best of Proptech” awards in 2023.

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should” “would,” “plan,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other performance metrics and projections of market opportunity. These statements are based on various assumptions, whether or not identified in this communication and on the current expectations of Real Messenger’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Real Messenger. Some important factors that could cause actual results to differ materially from those in any forward-looking statements could include changes in domestic and foreign business, market, financial, political and legal conditions.

If any of these risks materialize or Real Messenger’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Real Messenger does not presently know, or that Real Messenger currently believes are immaterial that could also cause actual results to differ from those contained in the forward- looking statements. In addition, forward-looking statements reflect Real Messenger’s current expectations, plans and forecasts of future events and views as of the date hereof. Nothing in this communication should be regarded as a representation by any person that the forward- looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein and the risk factors of Real Messenger described in Real Messenger’s Form 20-F initially filed with the SEC on July 31, 2025, as amended, including those under “Risk Factors” therein. Real Messenger anticipates that subsequent events and developments will cause its assessments to change. However, while Real Messenger may elect to update these forward-looking statements at some point in the future, Real Messenger specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Real Messenger’s assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Contacts

Real Messenger Corporation
[email protected]

• Phase 1 clinical trial of SL-325 enrollment complete; data expected in the second quarter of 2026 –
• Phase 2 clinical trial of SL-325 in patients with Crohn’s disease expected to initiate in the third quarter of 2026 –

AUSTIN, Texas and DURHAM, N.C., May 07, 2026 (GLOBE NEWSWIRE) — Shattuck Labs, Inc. (Shattuck or the Company) (NASDAQ: STTK), a clinical-stage biotechnology company pioneering the development of potential first-in-class monoclonal and bispecific DR3 blocking antibodies for the treatment of patients with inflammatory and immune-mediated diseases, today reported financial results for the first quarter ended March 31, 2026 and provided recent business highlights.

“We are pleased to have completed enrollment in our Phase 1 clinical trial of SL-325, and are looking forward to sharing a comprehensive data set on all single ascending dose and multiple ascending dose cohorts from this study in the second quarter of 2026, including safety and tolerability, pharmacokinetics, receptor occupancy, duration of receptor occupancy, pharmacodynamics, and immunogenicity data,” said Taylor Schreiber, M.D., Ph.D., Chief Executive Officer of Shattuck.

DR3 Program Development in 2026

Shattuck’s lead product candidate, SL-325, is a potentially first-in-class and best-in-mechanism DR3 blocking antibody for the treatment of Crohn’s disease, ulcerative colitis, and other inflammatory and immune-mediated diseases. Recent updates and anticipated upcoming milestones for SL-325, and Shattuck’s other DR3 blocking antibodies, include:

• The Phase 1 trial evaluating the safety, tolerability, immunogenicity, and pharmacokinetics (PK) of SL-325 in healthy volunteers is ongoing and will determine the recommended Phase 2 dose and dosing schedule.
  • Enrollment of all six single-ascending dose cohorts and all three multiple-ascending dose cohorts of the trial is now complete, with participant follow-up, data collection, and data analysis ongoing.
  • Shattuck plans to present safety and tolerability, PK, receptor occupancy, duration of receptor occupancy, pharmacodynamics, and immunogenicity data from this trial in the second quarter of 2026.
• Subject to positive Phase 1 data and regulatory alignment, Shattuck expects to initiate a Phase 2 clinical trial of SL-325 in patients with Crohn’s disease in the third quarter of 2026.
• Shattuck continues to develop multiple DR3-based bispecific antibodies. Shattuck’s lead bispecific antibody has entered IND-enabling activities. This bispecific antibody was designed to inhibit both the DR3/TL1A axis and another biologically relevant target for the treatment of patients with inflammatory and immune-mediated diseases. Shattuck plans to disclose the targets of its lead bispecific product candidate, supporting preclinical data, and expected development timelines in the second quarter of 2026.

Upcoming Events

• Shattuck plans to participate in the following upcoming event(s). Details will be included on the
  Events & Presentations
  section of the Company’s website.
  • Leerink Partners Therapeutics Forum 2026 (Boston, MA), July 14-15, 2026. Management will participate in one-on-one meetings.

First Quarter 2026 Financial Results

• Cash and Cash Equivalents and Investments: As of March 31, 2026, cash and cash equivalents and short-term investments were $90.4 million, as compared to $60.9 million as of March 31, 2025.
• Research and Development (R&D) Expenses: R&D expenses were $10.9 million for the quarter ended March 31, 2026, as compared to $9.9 million for the quarter ended March 31, 2025.
• General and Administrative (G&A) Expenses: G&A expenses were $4.6 million for the quarter ended March 31, 2026, as compared to $4.5 million for the quarter ended March 31, 2025.
• Net Loss: Net loss was $14.8 million for the quarter ended March 31, 2026, or $0.13 per basic and diluted share, as compared to a net loss of $13.7 million for the quarter ended March 31, 2025, or $0.27 per basic and diluted share.

Financial Guidance

As of March 31, 2026, cash and cash equivalents were approximately $90.4 million. Shattuck’s current cash and cash equivalents, assuming the full exercise of the outstanding common stock warrants, are expected to fund operations into 2029. This cash runway guidance is based on the Company’s current operational plans and excludes any additional capital that may be received (other than from the exercise of the common stock warrants), proceeds from business development transactions, and/or additional costs associated with clinical development activities that may be undertaken.

About SL-325

SL-325 is a potential first-in-class Death Receptor 3 (DR3) blocking antibody designed to achieve a complete and durable blockade of the clinically validated DR3/TL1A pathway. Shattuck’s preclinical studies demonstrate high affinity binding and superior activity over TL1A antibodies, and offer a data-driven rationale for targeting the TNF receptor, DR3, versus its ligand, TL1A. SL-325 is a fully Fc-silenced, humanized immunoglobulin G monoclonal antibody with a favorable safety profile in non-human primates, currently being evaluated in a Phase 1 clinical trial.

About Shattuck Labs, Inc.

Shattuck Labs, Inc. is a clinical-stage biotechnology company pioneering the development of potentially first-in-class monoclonal and bispecific DR3 blocking antibodies for the treatment of patients with inflammatory and immune-mediated diseases. Shattuck’s expertise in protein engineering and the development of novel TNF receptor therapeutics come together in its lead program, SL-325, a potentially first-in-class DR3 antagonist antibody designed to achieve a more complete blockade of the clinically validated DR3/TL1A pathway. The Company has offices in both Austin, Texas and Durham, North Carolina. For more information, please visit: www.ShattuckLabs.com.

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, Shattuck’s expectations regarding: plans for its preclinical studies, clinical trials and research and development programs, particularly with respect to SL-325; the anticipated timing of release of data from the Company’s ongoing Phase 1 clinical trial of SL-325; the anticipated timing of initiation of a Phase 2 clinical trial of SL-325 in patients with Crohn’s disease; the clinical benefit, safety and tolerability of SL-325; anticipated development of additional preclinical pipeline candidates; the timing of nomination, release of preclinical data and development timelines of a lead bispecific antibody candidate; and expectations regarding the time period over which the Company’s capital resources will be sufficient to fund its anticipated operations. Words such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “develop,” “plan” or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to it on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in Shattuck’s filings with the U.S. Securities and Exchange Commission (SEC)), many of which are beyond its control and subject to change. Actual results could be materially different. Risks and uncertainties include: global macroeconomic conditions and related volatility; expectations regarding the initiation, progress, and expected results of the Company’s preclinical studies, clinical trials and research and development programs; expectations regarding the timing, completion and outcome of the Company’s preclinical studies and clinical trials; the unpredictable relationship between preclinical study results and clinical study results; the timing or likelihood of regulatory filings and approvals; liquidity and capital resources, including the time period over which current capital resources are expected to the fund the Company’s operations; and other risks and uncertainties identified in Shattuck’s Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent disclosure documents filed with the SEC. Shattuck claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. The Company expressly disclaims any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as required by law.

The Company intends to use the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.

Investor & Media Contact:

Andrew Neill
Chief Financial Officer
Shattuck Labs, Inc.
[email protected]

FINANCIAL INFORMATION

SHATTUCK LABS, INC.

CONDENSED BALANCE SHEETS

(unaudited)

(In thousands)

	March 31, 2026			December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	90,419		$	54,192
Investments		—			23,873
Prepaid expenses and other current assets		3,334			4,410
Total current assets		93,753			82,475
Property and equipment, net		5,353			6,114
Investment in related party		1,000			1,000
Other assets		2,015			1,437
Total assets	$	102,121		$	91,026
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	1,253		$	2,101
Accrued expenses		2,996			4,951
Total current liabilities		4,249			7,052
Non-current operating lease liabilities		2,037			1,584
Total liabilities		6,286			8,636
Commitments and contingencies (Note 5)
Stockholders’ equity:
Common stock		7			7
Additional paid in capital		541,124			512,906
Accumulated other comprehensive income		—			6
Accumulated deficit		(445,296	)		(430,529	)
Total stockholders’ equity		95,835			82,390
Total liabilities and stockholders’ equity	$	102,121		$	91,026

SHATTUCK LABS, INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(In thousands, except share and per share amounts)

	Three Months Ended March 31,
		2026			2025
Revenue	$	—		$	—
Operating expenses:
Research and development		10,946			9,919
General and administrative		4,599			4,470
Expense from operations		15,545			14,389
Loss from operations		(15,545	)		(14,389	)
Other income (expense):
Interest income		779			689
Other expense		(1	)		(2	)
Total other income		778			687
Net loss	$	(14,767	)	$	(13,702	)
Unrealized loss on investments		(6	)		(2	)
Comprehensive loss	$	(14,773	)	$	(13,704	)
Net loss per share – basic and diluted	$	(0.13	)	$	(0.27	)
Weighted-average shares outstanding – basic and diluted		112,234,551			50,965,815

ATLANTA, May 07, 2026 (GLOBE NEWSWIRE) — Gray
Media,
Inc.
(“Gray”)
(NYSE:
GTN) announced today that its Board of Directors has authorized a quarterly cash dividend of $0.08 per share of its common stock and Class A common stock. The dividend is payable on June 30, 2026, to shareholders of record at the close of business on June 15, 2026.

About
Gray
Media:

We are a multimedia company headquartered in Atlanta, Georgia. We are the nation’s largest owner of top-rated local television stations and digital assets serving 120 full-power television markets that collectively reach approximately 37% of US television households. The portfolio includes 81 markets with the top-rated television station and 103 markets with the first and/or second highest rated television station in average all-day ratings across the 119 of such markets that were measured by Nielsen in 2025. We also own the largest Telemundo Affiliate group with 47 markets and Gray Digital Media, a full-service digital agency offering national and local clients digital marketing strategies with the most advanced digital products and services. Our additional media properties include video production companies Raycom Sports, Tupelo Media Group, and PowerNation Studios, and studio production facilities Assembly Atlanta and Third Rail Studios.

Forward-Looking Statements:

This press release contains certain forward-looking statements that are based largely on Gray’s current expectations and reflect various estimates and assumptions by Gray. These statements are statements other than those of historical fact and may be identified by words such as “estimates”, “expect,” “anticipate,” “will,” “implied,” “assume” and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond Gray’s control include Gray’s inability to provide expected future payment of dividends, and other future events. Gray is subject to additional risks and uncertainties described in Gray’s quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the “Risk Factors,” and management’s discussion and analysis of financial condition and results of operations sections contained therein, which reports are made publicly available via its website, www.graymedia.com. Any forward-looking statements in this communication should be evaluated in light of these important risk factors. This press release reflects management’s views as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this communication beyond the date hereof, whether as a result of new information, future events or otherwise.

# # #

Gray Contacts:

Alan Gould, Vice President, Investor Relations, (404) 266-8333, [email protected]

• First-quarter sales growth of 5% on a reported basis
• First-quarter Reconstructive sales grew 11% on a reported basis
• Reiterating full-year 2026 revenue, adjusted EBITDA, adjusted EPS, and Free Cash Flow Conversion guidance

Dallas, TX, May 07, 2026 (GLOBE NEWSWIRE) — Enovis™ Corporation (“Enovis” or “the Company”) (NYSE: ENOV), an innovation-driven medical technology growth company, today announced its financial results for the first quarter ended April 3, 2026. The Company will host an investor conference call and live webcast to discuss these results today at 8:30 am ET.

First Quarter 2026 Financial Results

Enovis’ first-quarter net sales of $589 million grew 5% on a reported basis and 3% on an organic basis from the same quarter in 2025. First quarter results reflect continued execution in P&R and Recon, stable end markets, and encouraging momentum in new product introductions, offset by the impact of fewer selling days. Compared to the same quarter in 2025, net sales in Recon grew 11% on a reported basis and 6% on an organic basis, and P&R was flat on a reported basis and 1% on an organic basis.

Enovis also reported first-quarter net loss of $8 million, or 1.4% of sales, and adjusted EBITDA of $104 million, or 17.6% of sales.

The Company reported first-quarter 2026 net loss of $0.15 per share and adjusted net earnings per diluted share of $0.89.

“Our first-quarter results reflect solid execution and continued progress advancing our innovation-led strategy,” said Damien McDonald, Chief Executive Officer of Enovis. “Growth in the quarter was supported by contributions from recent product launches which enhance our competitive positioning and expand our addressable market.

At the same time, we are operating in a dynamic macroeconomic and geopolitical environment, and we remain focused on disciplined execution. Our priorities – commercial execution and innovation, operational excellence, and financial discipline – position us well to navigate near-term uncertainty while continuing to invest in long-term growth. We remain confident in our strategy and our ability to deliver sustainable performance and value for patients and shareholders over time.”

2026 Financial Outlook

Enovis reaffirms financial expectations for 2026. Revenue is expected to approximate $2.31-2.37 billion, which incorporates 4-6% organic revenue growth. Adjusted EBITDA is expected to be in a range of $425-435 million. The guidance ranges for revenue and adjusted EBITDA are based on current exchange rates. Full-year adjusted earnings per share is expected to be in the range of $3.52 to $3.73. Full year free cash flow conversion is expected to be 25% or higher.

Conference call and Webcast

Investors can access the webcast via a link on the Enovis website, www.enovis.com. For those planning to participate on the call, please dial (800) 715-9871 (U.S. callers) and (646) 307-1963 (International callers) and use conference ID 3314793. A link to a replay of the call will also be available on the Enovis website later in the day.

About Enovis

Enovis™ (NYSE: ENOV) is a global medical technology innovator dedicated to improving lives by developing clinically differentiated solutions that enhance patient outcomes and restore motion for life. We partner with the brightest minds in health to advance care that is smarter, personalized, and more effective, while improving operational efficiency for surgeons and clinicians around the world. Enovis solutions impact the well-being of millions of patients wherever they are on their pathway to health. Discover more about Enovis at www.enovis.com.

Availability of Information on the Enovis Website

Investors and others should note that Enovis routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Enovis Investor Relations website. While not all of the information that the Company posts to the Enovis Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in Enovis to review the information that it shares on ir.enovis.com.

Forward-Looking Statements

This press release includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning Enovis’ plans, goals, objectives, outlook, expectations and intentions, and other statements that are not historical or current fact. Forward-looking statements are based on Enovis’ current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause Enovis’ results to differ materially from current expectations include, but are not limited to, risks related to Enovis’ integration of Lima; the impact of public health emergencies and global pandemics; disruptions in the global economy caused by escalating geopolitical tensions including in connection with the ongoing conflicts between Russia and Ukraine and in the Middle East; macroeconomic conditions, including the impact of inflationary pressures; changes in government trade policies, including the implementation of tariffs; the impact of a shutdown of the U.S. government or any future shutdowns; supply chain disruptions; increasing energy costs and availability concerns, particularly in the European market; other impacts on Enovis’ business and ability to execute business continuity plans; and the other factors detailed in Enovis’ reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K under the caption “Risk Factors,” as well as the other risks discussed in Enovis’ filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. Enovis disclaims any duty to update the information herein.

Non-GAAP Financial Measures

Enovis has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America (“non-GAAP”). These non-GAAP financial measures may include one or more of the following: adjusted net income from continuing operations (“Adjusted net income”), Adjusted net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted gross profit, and Adjusted gross profit margin.

Adjusted net income
and Adjusted net income per diluted share exclude net income attributable to noncontrolling interest from continuing operations, net of taxes; the effect of Loss from discontinued operations, net of taxes; restructuring charges; Medical Device Regulation (“MDR”) fees and other costs; strategic transaction costs; stock-based compensation; acquisition-related intangible asset amortization; strategic purchase of economic interest on future royalty payments; and property plant and equipment step-up depreciation; goodwill impairment charges; non-cash Other (income) expense, net; and include the tax effect of adjusted pre-tax income at applicable tax rates and other tax adjustments. Enovis also presents Adjusted net income margin, which is subject to the same adjustments as Adjusted net income.

Adjusted EBITDA represents Adjusted net income excluding all Other (income) expense, net; interest, taxes, and depreciation and other amortization. Enovis presents Adjusted EBITDA margin, which is subject to the same adjustments as Adjusted EBITDA.

Adjusted gross profit represents gross profit excluding depreciation step-up of acquired fixed assets and the impact of restructuring charges. Adjusted gross profit margin is subject to the same adjustments as Adjusted gross profit.

Organic sales growth calculates sales growth period over period, after excluding the impact of acquisitions, divestitures, and foreign exchange rate fluctuations.
.

Free cash flow represents cash flow from operating activities less purchases of property, plant and equipment net of proceeds from sale of certain properties. Free cash flow conversion represents free cash flow divided by adjusted net income.

These non-GAAP financial measures assist Enovis management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete restructuring plans that are fundamentally different from the ongoing productivity improvements of the Company. Enovis management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release. Enovis does not provide reconciliations of adjusted EBITDA or adjusted earnings per share on a forward-looking basis to the closest GAAP financial measures, as such information is not available without unreasonable efforts on a forward-looking basis due to uncertainties regarding, and the potential variability of, reconciling items excluded from these measures. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period.  

Kyle Rose
Vice President, Investor Relations
Enovis Corporation
+1-917-734-7450
[email protected]

Enovis Corporation

Condensed Consolidated Statements of Operations

Dollars in thousands, except per share data

(Unaudited)

		Three Months Ended
		April 3, 2026				April 4, 2025
Net sales		$	589,151			$	558,834
Cost of sales			223,666				226,605
Gross profit			365,485				332,229
Gross profit margin			62.0	%			59.5	%
Selling, general and administrative expense			282,810				269,019
Research and development expense			31,533				28,528
Amortization of acquired intangibles			41,904				41,812
Purchase of royalty interest			—				35,777
Restructuring charges			2,708				3,862
Operating income (loss)			6,530				(46,769	)
Operating income (loss) margin			1.1	%		(8.4)        %
Interest expense, net			9,169				9,188
Other (income) expense , net			(3,273	)			1,392
Income (loss) from continuing operations before income taxes			634				(57,349	)
Income tax expense (benefit)			9,045				(1,769	)
Net loss from continuing operations			(8,411	)			(55,580	)
Loss from discontinued operations, net of taxes			(39	)			(125	)
Net loss			(8,450	)			(55,705	)
Net loss margin		(1.4)        %				(10.0)        %
Less: net income attributable to noncontrolling interest from continuing operations – net of taxes			314				261
Net loss attributable to Enovis Corporation		$	(8,764	)		$	(55,966	)
Net income (loss) per share – basic and diluted
Continuing operations		$	(0.15	)		$	(0.98	)
Discontinued operations		$	—			$	—
Consolidated operations		$	(0.15	)		$	(0.98	)

Enovis Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

Dollars in millions, except per share data

(Unaudited)

	Three Months Ended
	April 3, 2026				April 4, 2025
Adjusted Net Income and Adjusted Net Income Per Share
Net Loss (GAAP)	$	(8.5	)		$	(55.7	)
Net loss margin (GAAP)	(1.4)        %				(10.0)        %
Net income attributable to noncontrolling interest from continuing operations – net of taxes		(0.3	)			(0.3	)
Loss from discontinued operations, net of taxes		—				0.1
Net loss from continuing operations attributable to Enovis Corporation(1) (GAAP)	$	(8.7	)		$	(55.8	)
Restructuring charges – pretax(2)		2.7				3.9
MDR and other costs – pretax(3)		1.2				3.2
Amortization of acquired intangibles – pretax		41.9				41.8
PPE step-up depreciation – pretax(4)		0.7				0.6
Strategic transaction costs – pretax(5)		11.0				12.1
Purchase of royalty interest(6)		—				35.8
Stock-based compensation		8.7				7.4
Other (income) expense, net(7)		(1.0	)			1.4
Tax adjustment(8)		(5.0	)			(13.0	)
Adjusted net income from continuing operations (non-GAAP)(9)	$	51.6			$	37.3
Adjusted net income margin from continuing operations (9)		8.8	%			6.7	%
Weighted-average shares outstanding – diluted (GAAP)		57,313				56,792
Net loss per share – diluted from continuing operations (GAAP)	$	(0.15	)		$	(0.98	)
Adjusted weighted-average shares outstanding – diluted (non-GAAP)		57,996				57,374
Adjusted net income per share – diluted from continuing operations (non-GAAP)(9)	$	0.89			$	0.65

<sup>__________

(1)</sup> Net loss from continuing operations attributable to Enovis Corporation for the respective periods is calculated using Net loss from continuing operations less the continuing operations component of the income attributable to noncontrolling interest, net of taxes.
⁽²⁾ Restructuring charges includes immaterial expenses classified as Cost of sales on the Company’s Condensed Consolidated Statements of Operations for the three months ended April 4, 2025. There were no similar charges for the three months ended April 3, 2026.
⁽³⁾ MDR and other costs includes (i) $0.8 million for the three months ended April 3, 2026 and $2.5 million for the three months ended April 4, 2025 in non-recurring costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union for devices which were introduced to the market prior to the regulation and (ii) $0.4 million for the three months ended April 3, 2026 and $0.7 million for the three months ended April 4, 2025 of expenses to resolve certain infrequent, non-recurring regulatory or other legal matters. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.
⁽⁴⁾ Includes $0.7 million in PPE step-up depreciation in connection with acquired businesses for the three months ended April 3, 2026 and $0.6 million for the three months ended April 4, 2025.
⁽⁵⁾ Strategic transaction costs includes: (i) $7.4 million for the three months ended April 3, 2026 and $8.7 million for the three months ended April 4, 2025, respectively, related to non-recurring integration costs associated with the Lima Acquisition, which includes payroll and retention costs for roles to be eliminated or that are dedicated to integration activities, professional and consulting fees specifically incurred to consummate the acquisition and advise and facilitate on post-acquisition integration matters including legal entity consolidation, costs associated with rebranding and marketing acquired business under Enovis name, such as marketing materials, trade show redesign costs and product labeling, and integration related costs associated with sales agent and distributor network rationalization, including contract termination and retention expenses, supply chain and portfolio integration, and quality management system consolidation, (ii) $3.4 million for the three months ended April 3, 2026 and $2.9 million for the three months ended April 4, 2025 of non-recurring (non-Lima) acquisition integration costs and other non-recurring project costs for global ERP rationalization and shared service center start-up, and (iii) $0.2 million for the three months ended April 3, 2026 and $0.5 million for the three months ended April 4, 2025 related to the Separation of our former fabrication technology business. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.
⁽⁶⁾ Purchase of royalty interest represents the one-time, up-front expense incurred by the Company to acquire the economic rights to future royalties under product development agreements in connection with the termination of such agreements as part of a strategic shift to a new product development model. The Company believes that excluding the impact of such expense enhances comparability between periods, provides investors with a clear and meaningful view of our underlying business trends and aligns with how management evaluates the ongoing business performance.
⁽⁷⁾ Other (income) expense, net includes the fair value gain adjustment for non-designated cross currency swaps in 2026. Includes the final fair value loss adjustment for the Contingent Acquisition Shares issued in the first quarter of 2025.
⁽⁸⁾ The effective tax rates used to calculate adjusted net income and adjusted net income per share were 21.3% for the three months ended April 3, 2026 and 23.1% for the three months ended April 4, 2025.
⁽⁹⁾ For the three months ended April 3, 2026, we revised our definition of Adjusted Net Income and Adjusted Net Income Per Diluted Share to no longer adjust for inventory step-up charges. Adjusted Net Income in prior periods has been revised to reflect this change for consistency of presentation along with its impact on the effective tax rate which has been revised from 23.4%, as presented in our Form 8-K for the period ended April 4, 2025, to 23.1%. Accordingly, Adjusted Net Income for the three months ended April 4, 2025 has been revised from $45.6 million, or $0.50 per diluted share, as presented in our Form 8-K for the period ended April 4, 2025, to $37.3 million, or $0.65 per diluted share, reflecting the removal of a $12.1 million adjustment for inventory step-up in connection with acquired businesses, resulting in a corresponding reduction to Adjusted net income margin from continuing operations for the three months ended April 4, 2025 from 8.3%, as presented in our Form 8-K for the period ended April 4, 2025, to 6.7%.

Enovis Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

Dollars in millions

(Unaudited)

	Three Months Ended
	April 3, 2026				April 4, 2025
	(Dollars in millions)
Net loss (GAAP)	$	(8.5	)		$	(55.7	)
Net loss margin (GAAP)	(1.4)        %				(10.0)        %
Loss from discontinued operations, net of taxes		—				0.1
Income tax expense (benefit)		9.0				(1.8	)
Other (income) expense, net		(3.3	)			1.4
Interest expense, net		9.2				9.2
Operating income (loss) (GAAP)	$	6.5			$	(46.8	)
Adjusted to add:
Restructuring charges(1)		2.7				3.9
MDR and other costs(2)		1.2				3.2
Strategic transaction costs(3)		11.0				12.1
Stock-based compensation		8.7				7.4
Depreciation and other amortization		31.4				29.6
Amortization of acquired intangibles		41.9				41.8
Purchase of royalty interest(4)		—				35.8
Adjusted EBITDA (non-GAAP)(5)	$	103.6			$	87.1
Adjusted EBITDA margin (non-GAAP) (5)		17.6	%			15.6	%

<sup>__________

(1)</sup> Restructuring charges includes immaterial expenses classified as Cost of sales on the Company’s Condensed Consolidated Statements of Operations for the three months ended April 4, 2025. There were no similar charges for the three months ended April 3, 2026.
⁽²⁾ MDR and other costs includes (i) $0.8 million for the three months ended April 3, 2026 and $2.5 million for the three months ended April 4, 2025, respectively, in non-recurring costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union for devices which were introduced to the market prior to the regulation and (ii) $0.4 million for the three months ended April 3, 2026 and $0.7 million for the three months ended April 4, 2025 of expenses to resolve certain infrequent, non-recurring regulatory or other legal matters. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.
⁽³⁾ Strategic transaction costs includes: (i) $7.4 million for the three months ended April 3, 2026 and $8.7 million for the three months ended April 4, 2025 related to non-recurring integration costs associated with the Lima Acquisition, which includes payroll and retention costs for roles to be eliminated or that are dedicated to integration activities, professional and consulting fees specifically incurred to consummate the acquisition and advise and facilitate on post-acquisition integration matters including legal entity consolidation, costs associated with rebranding and marketing acquired business under Enovis name, such as marketing materials, trade show redesign costs and product labeling, and integration related costs associated with sales agent and distributor network rationalization, including contract termination and retention expenses, supply chain and portfolio integration, and quality management system consolidation, (ii) $3.4 million for the three months ended April 3, 2026 and $2.9 million for the three months ended April 4, 2025 of non-recurring (non-Lima) acquisition integration costs and other non-recurring project costs for global ERP rationalization and shared service center start-up, and (iii) $0.2 million for the three months ended April 3, 2026 and $0.5 million for the three months ended April 4, 2025 related to the Separation of our former fabrication technology business. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.
⁽⁴⁾ Purchase of royalty interest represents the one-time, up-front expense incurred by the Company to acquire the economic rights to future royalties under product development agreements in connection with the termination of such agreements as part of a strategic shift to a new product development model. The Company believes that excluding the impact of such expense enhances comparability between periods, provides investors with a clear and meaningful view of our underlying business trends and aligns with how management evaluates the ongoing business performance.
⁽⁵⁾ For the three months ended April 3, 2026, we revised our definition of Adjusted EBITDA to no longer adjust for inventory step-up charges. Adjusted EBITDA in prior periods has been revised to reflect this change for consistency of presentation. Accordingly, Adjusted EBITDA for the three months ended April 4, 2025 has been revised from $99.2 million, as presented in our Form 10-Q for the period ended April 4, 2025, to $87.1 million, reflecting the removal of a $12.1 million adjustment for inventory step-up in connection with acquired businesses, resulting in a corresponding reduction to Adjusted EBITDA margin for the three months ended April 4, 2025 from 17.7%, as presented in our Form 10-Q for the period ended April 4, 2025, to 15.6%.

Enovis Corporation

Reconciliation of Gross Margin (GAAP) to Adjusted Gross Margin (non-GAAP)

Dollars in millions

(Unaudited)

	Three Months Ended
	April 3, 2026				April 4, 2025
Net sales	$	589.2			$	558.8
Gross profit	$	365.5			$	332.2
Gross profit margin (GAAP)		62.0	%			59.5	%
Gross profit (GAAP)	$	365.5			$	332.2
PPE step-up depreciation		0.6				0.5
Adjusted gross profit (Non-GAAP)(1)	$	366.1			$	332.8
Adjusted gross profit margin (Non-GAAP)(1)		62.1	%			59.6	%

^__________

⁽¹⁾ For the three months ended April 3, 2026, we revised our definition of Adjusted gross profit to no longer adjust for inventory step-up charges. Adjusted gross profit in prior periods has been revised to reflect this change for consistency of presentation. Accordingly, Adjusted gross profit for the three months ended April 4, 2025 has been revised from $344.9 million, as presented in our Form 8-K for the period ended April 4, 2025, to $332.8 million, reflecting the removal of a $12.1 million adjustment for inventory step-up in connection with acquired businesses, resulting in a corresponding reduction to Adjusted gross profit margin for the three months ended April 4, 2025 from 61.7%, as presented in our Form 8-K for the period ended April 4, 2025, to 59.6%.

Enovis Corporation

Condensed Consolidated Balance Sheets

Dollars in thousands, except share amounts

(Unaudited)

	April 3, 2026				December 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	33,129			$	36,389
Trade receivables, less allowance for credit losses of $30,219 and $25,609		444,206				442,786
Inventories, net		602,543				584,379
Prepaid expenses		49,517				42,283
Other current assets		110,286				101,222
Current portion of assets held for sale		—				—
Total current assets		1,239,681				1,207,059
Property, plant and equipment, net		519,721				507,063
Goodwill		711,903				718,299
Intangible assets, net		1,192,487				1,236,713
Lease asset – right of use		74,500				72,256
Other assets		93,964				93,347
Total assets	$	3,832,256			$	3,834,737
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$	35,000			$	35,000
Accounts payable		213,622				187,531
Accrued liabilities		360,043				375,943
Current portion of liabilities held for sale		—				—
Total current liabilities		608,665				598,474
Long-term debt, less current portion		1,290,970				1,261,793
Non-current lease liability		59,324				58,000
Other liabilities		393,805				424,568
Total liabilities		2,352,764				2,342,835
Equity:
Common stock, $0.001 par value; 133,333,333 shares authorized; 57,553,143 and 57,194,781 shares issued and outstanding as of April 3, 2026 and December 31, 2025, respectively		58				57
Additional paid-in capital		3,056,849				3,048,414
Accumulated deficit		(1,476,227	)			(1,467,463	)
Accumulated other comprehensive loss		(103,759	)			(91,363	)
Total Enovis Corporation equity		1,476,921				1,489,645
Noncontrolling interest		2,571				2,257
Total equity		1,479,492				1,491,902
Total liabilities and equity	$	3,832,256			$	3,834,737

Enovis Corporation

Condensed Consolidated Statements of Cash Flows

Dollars in thousands

(Unaudited)

	Three Months Ended
	April 3, 2026				April 4, 2025
Cash flows from operating activities:
Net loss	$	(8,450	)		$	(55,705	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		73,355				71,435
Stock-based compensation expense		8,750				7,407
Non-cash interest expense		1,788				1,348
Fair value loss on contingent acquisition shares		—				1,787
Deferred income tax benefit		(37,711	)			(1,769	)
Loss (gain) on sale of property, plant and equipment		(75	)			(527	)
Changes in operating assets and liabilities:
Trade receivables, net		(4,347	)			(15,977	)
Inventories, net		(22,072	)			(23,295	)
Accounts payable		26,887				4,189
Other operating assets and liabilities		(14,174	)			9,511
Net cash provided by (used in) operating activities		23,951				(1,596	)
Cash flows from investing activities:
Purchases of property, plant and equipment and intangibles		(52,804	)			(43,262	)
Payments for acquisitions, net of cash received, and investments		(291	)			(18,858	)
Cash received upon settlement of derivatives		—				1,601
Net cash used in investing activities		(53,095	)			(60,519	)
Cash flows from financing activities:
Repayments of borrowings under term credit facility		(8,750	)			(5,000	)
Proceeds from borrowings on revolving credit facilities and other		72,000				72,000
Repayments of borrowings on revolving credit facilities and other		(35,516	)			(10,438	)
Payments of tax withholding for stock-based awards		(943	)			(3,447	)
Proceeds from issuance of common stock, net		628				341
Deferred consideration payments and other		(1,396	)			(2,265	)
Net cash provided by financing activities		26,023				51,191
Effect of foreign exchange rates on Cash and cash equivalents		(139	)			1,217
Decrease in Cash and cash equivalents		(3,260	)			(9,707	)
Cash and cash equivalents, beginning of period		36,389				48,167
Cash and cash equivalents, end of period	$	33,129			$	38,460

Enovis Corporation

GAAP Net Sales and Growth Rate Summary

Dollars in millions

(Unaudited)

	Three Months Ended
	April 3, 2026			April 4, 2025			Growth Rate			Constant Currency Growth Rate (1)			Organic Growth Rate (2)
	(In millions)
Prevention & Recovery:
U.S. Bracing & Support	$	114.9		$	115.1		(0.2)        %			(0.2)        %			(0.2)        %
U.S. Other P&R		55.9			66.6		(16.2)        %			(16.2)        %			2.9	%
International P&R		101.3			90.9		11.4	%		2.4	%		0.9	%
Total Prevention & Recovery		272.0			272.6		(0.2)        %			(3.2)        %			1.0	%
Reconstructive:
U.S. Reconstructive		149.2			137.9		8.2	%		8.2	%		8.2	%
International Reconstructive		167.9			148.4		13.2	%		3.0	%		3.0	%
Total Reconstructive		317.1			286.3		10.8	%		5.5	%		5.5	%
Total	$	589.2		$	558.8		5.4	%		1.2	%		3.3	%

                                  
⁽¹⁾ Constant currency growth rate represents sales growth excluding the impact of foreign exchange rate fluctuations based on prior year sales valued at the current period foreign currency rates.
⁽²⁾ Excludes the impact of foreign exchange rate fluctuations and acquisitions/divestitures, thus providing a measure of change due to factors such as price, product mix and volume.

Enovis Corporation

Change in Net Sales

Dollars in millions

(Unaudited)

	Net Sales
	Prevention and Recovery							Reconstructive						Total Enovis
	$				Change %			$			Change %			$				Change %
For the three months ended April 4, 2025	$	272.6						$	286.3					$	558.8
Components of Change:
Existing Businesses(1)		2.6			1.0	%			15.8		5.5	%			18.4			3.3	%
Acquisitions(2)		1.3			0.5	%			—		—	%			1.3			0.2	%
Divestitures(3)		(12.7	)		(4.7)        %				—		—	%			(12.7	)		(2.3)        %
Foreign Currency Translation(4)		8.2			3.0	%			15.2		5.3	%			23.4			4.2	%
		(0.6	)		(0.2)        %				31.0		10.8	%			30.4			5.4	%
For the three months ended April 3, 2026	$	272.0						$	317.2					$	589.2

                                  
⁽¹⁾ Excludes the impact of foreign exchange rate fluctuations and acquisitions/divestitures, thus providing a measure of change due to factors such as price, product mix and volume.
⁽²⁾ Represents the incremental sales as a result of acquisitions of businesses for twelve months from the acquisition date. Excludes (i) acquisitions of former distribution partners as such transactions primarily represent a shift from a third-party distribution model to a direct sales model, and (ii) acquisitions of intellectual property as such transactions involve the purchase of technologies that have not been commercialized.
⁽³⁾ Represents the decrease in sales as a result of divestitures of businesses for twelve months from the divestiture date.
⁽⁴⁾ Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.

BOSTON HEIGHTS, Ohio, May 07, 2026 (GLOBE NEWSWIRE) — Arhaus, Inc. (“Arhaus” or the “Company”) (NASDAQ: ARHS), a premium home furnishing brand known for responsibly sourced, artisan-crafted products and heirloom-quality design, reported first quarter results for the period ended March 31, 2026.

First Quarter
2026
Highlights


Compared to the first quarter of 2025:

• Net revenue increased 0.9% to $314 million
• Gross margin decreased 1.0% to $114 million
• Selling, general and administrative expenses increased 1.9% to $112 million
• Net and comprehensive income decreased 54.5% to $2 million
• Adjusted EBITDA decreased 3.1% to $18 million
• Comparable Delivered Sales
  ⁽¹⁾ decreased 1.7%
• Comparable Written Sales
  ⁽²⁾ decreased 5.7%

John Reed, Co-Founder and Chief Executive Officer, said:
“We achieved the highest first-quarter net revenue in Arhaus history, reflecting the strength of our operating model, the resilience of our client base, and the disciplined execution of our team. While broader macro uncertainty created some near-term pressure on Comparable Written Sales, we saw meaningful improvement as the quarter progressed and remain confident in our long-term strategy, differentiated product leadership, and the significant opportunity ahead for Arhaus.”

Michael Lee, Chief Financial Officer, said:
“While the operating environment is challenging, we remain disciplined in how we are managing the business, with a focus on controlling costs, prioritizing high-return investments, and maintaining flexibility while continuing to invest in the long-term growth of Arhaus. Based on the strength of our business and improving Comparable Written Sales trends, we remain confident in our full-year 2026 outlook and we are reaffirming our guidance. We want to thank our teams across Arhaus for their continued dedication and execution, and our shareholders for their ongoing support as we remain focused on driving long-term shareholder value.”

Business Highlights

First quarter net revenue was $314 million, an increase of 0.9% year-over-year and above the midpoint of the Company’s guidance range.

Comparable Delivered Sales⁽¹⁾ decreased 1.7% in the first-quarter, above the midpoint of the Company’s guidance range. Comparable Written Sales⁽²⁾ decreased 5.7% in the first-quarter.

Showroom Highlights

At the end of the first quarter of 2026, Arhaus operated 107 Showrooms across 31 states. In April, the Company opened a new Traditional Showroom in Ashburn, Virginia and in early May, Arhaus completed an expansion of its Park Meadows, Colorado showroom.

For 2026, the Company continues to expect to complete approximately 10 to 14 Total Showroom Projects⁽³⁾, consisting of 4 to 6 new openings and 6 to 8 relocations, renovations, or expansions, representing Net Unit Growth⁽⁴⁾ of mid-single-digits for the year.

Balance Sheet and Liquidity

As of March 31, 2026, the Company reported the following:

• No long-term debt.
• Cash and cash equivalents totaled $177 million, a 30.1% decrease from December 31, 2025 to March 31, 2026. This primarily reflects the $49 million special cash dividend paid in March.
• Net merchandise inventory of $369 million, a 9.0% increase from December 31, 2025 to March 31, 2026.
• Client deposits of $271 million, a 15.0% increase from December 31, 2025 to March 31, 2026.
• Net cash used in operating activities totaled $10 million for the three months ended March 31, 2026.
• Net cash used in investing activities was $16 million for the three months ended March 31, 2026. Company-funded capital expenditures⁽⁵⁾ were $13 million and landlord contributions were $3 million.

Special Cash Dividend 

On February 17, 2026, the Board of Directors of the Company declared a special cash dividend on the Company’s Class A and Class B common stock of $0.35 per share. This was paid on March 31, 2026, to shareholders of record at the close of business on March 18, 2026.

Outlook

The Company is reaffirming its full-year 2026 outlook and providing second quarter 2026 guidance. While the Company continues to operate in a challenging environment, the Company remains confident in its full-year 2026 outlook.

As a reminder, the Company is also lapping a particularly strong second quarter in the prior year, where the Company successfully brought operations of its Dallas Distribution Center in-house which ramped ahead of schedule. This transition enabled the Company to convert strong first quarter demand into net revenue more efficiently and at a higher volume than expected. As a result, second quarter performance should be viewed in the context of this strong prior-year comparison.

Additionally, the Company’s current outlook does not include any benefit from potential IEEPA tariff refunds. As there is greater clarity and confirmation regarding those refunds, the Company will evaluate any impact and update guidance if necessary.

		Full-Year 2026		Q2 2026
Net revenue		$1.43 billion to $1.47 billion		$350 million to $370 million
Net revenue growth		3.7% to 6.6%		(2.4)% to 3.2%
Comparable delivered sales(1)		0% to 3%		(5)% to 0%
Net income(6)		$66 million to $75 million		$19 million to $24 million
Adjusted EBITDA(7)		$150 million to $161 million		$40 million to $49 million
Other Estimates
Company-funded capital expenditures(5)		$70 million to $90 million
Depreciation & amortization		$50 million to $55 million
Fully diluted shares		~ 142 million
Effective tax rate		~ 28.2%
Showroom openings		4 to 6 new Showrooms
Total Showroom Projects(3)		10 to 14 Showroom Projects
Net Unit Growth(4)		Mid-Single-Digit

<sub>⁽¹⁾
Comparable Delivered Sales previously referred to as “Comparable Growth” is a key performance indicator and is defined as the year-over-year percentage change of the dollar value of orders delivered (based on purchase price), net of the dollar value of returns (based on amount credited to client), from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.


⁽²⁾
Comparable Written Sales previously referred to as “Demand Comparable Growth” is a key performance indicator and is defined as the year-over-year percentage change of written sales from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.


⁽³⁾
Total Showroom Projects is defined as the number of Showroom projects completed during the period, including new Showroom openings, relocations, remodels, and expansions. The Company considers all Showroom projects integral to its long-term growth strategy, with each evaluated based on strategic relevance and expected return on investment.


⁽⁴⁾
Net Unit Growth reflects the percentage change in total Showroom count during the period, calculated as new Showroom openings net of Showroom closures or relocations that do not increase total unit count.


⁽⁵⁾
Company-funded capital expenditures is defined as total net cash used in investing activities less landlord contributions.


⁽⁶⁾ U.S. GAAP net income (loss).


⁽⁷⁾ We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. These items include, but are not limited to, future share-based compensation expense, income taxes, interest income, and transaction costs. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort.</sub>

Updates to Disclosures and Reporting


Investor Relations Materials
An Investor Relations presentation has been issued in conjunction with the Company’s first-quarter results in alignment with the Company’s earnings. This can be accessed online at http://ir.arhaus.com.

Comparable Sales Metrics
As previously shared, the Company refined the naming and presentation of its comparable sales metrics.

Comparable Delivered Sales⁽¹⁾ previously referred to as “Comparable Growth” is a key performance indicator and is defined as the year-over-year percentage change of the dollar value of orders delivered (based on purchase price), net of the dollar value of returns (based on amount credited to client), from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.

Comparable Written Sales⁽²⁾ previously referred to as “Demand Comparable Growth” is a key performance indicator and is defined as the year-over-year percentage change of written sales from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.

Showroom Growth and Real Estate Disclosures
As previously shared, the Company has made enhancements to its Showroom growth and real estate disclosures. These updates provide additional context on the Company’s long-term Showroom strategy and economics.

Additional detail is provided in the Company’s Investor Relations presentation which is available on the Company’s website at http://ir.arhaus.com. Supporting schedules are included in this earnings release.

Additional Schedules
As previously shared, the Company is providing additional schedules. Supplemental schedules related to Showroom growth, real estate activity, and comparable sales metrics are included in the earnings release and Investor Relations presentation.

Conference Call

You are invited to listen to Arhaus’ conference call to discuss the first quarter 2026 financial results scheduled for today, May 7, 2026, at 8:30 a.m. Eastern Time. The call will be available over the Internet on our website (http://ir.arhaus.com) or by dialing (877) 407-3982 within the U.S., or 1 (201) 493-6780, outside the U.S. The conference ID number is 13758506.

A recorded replay of the conference call will be available within approximately three hours of the conclusion of the call and can be accessed online at http://ir.arhaus.com for approximately twelve months.

About Arhaus

Founded in 1986 by Chief Executive Officer John Reed and his father, Arhaus is a premium home furnishings brand built on a simple idea: furniture and décor should be responsibly sourced, lovingly made, and built to last. Arhaus operates a vertically integrated model, designing and sourcing products directly from skilled artisans and carefully selected manufacturing partners around the world, including domestic upholstery production at its own North Carolina manufacturing facility. This approach enables Arhaus to offer a highly exclusive and customizable assortment of heirloom-quality furniture and décor designed to be used and enjoyed for generations.

With more than 100 Showroom locations across the United States, Arhaus’ integrated omni-channel model connects every client touchpoint, from Showroom and interior design to eCommerce and catalog, allowing Arhaus to meet clients wherever and however they choose to shop while delivering a highly personalized client-first experience from discovery through delivery.

For more information, please visit www.arhaus.com.

Investor Contact:

Tara Atwood-Saja
Vice President, Investor Relations
(440) 439-7700
[email protected]

Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. GAAP, this press release and related tables include adjusted EBITDA, adjusted EBITDA as a percentage of net revenue, and Free Cash Flow, which present operating results on an adjusted basis.

We use non-GAAP measures to help assess the performance of our business, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with U.S. GAAP, we believe that providing these non-GAAP financial measures is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of non-recurring items. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. These non-U.S. GAAP measures are not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. These measures should only be read together with the corresponding U.S. GAAP measures. Please refer to the reconciliations of adjusted EBITDA and Free Cash Flow to the most directly comparable financial measures prepared in accordance with U.S. GAAP below.

Forward-Looking Statements

Certain statements contained herein, including statements under the heading “Outlook” are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws.

Forward-looking statements can generally be identified by the use of forward-looking terminology, including, but not limited to, “may,” “could,” “seek,” “guidance,” “predict,” “potential,” “likely,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “forecast,” or variations of these terms and similar expressions, or the negative of these terms or similar expressions. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond our control that could cause our actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to manage and maintain the growth rate of our business; our ability to obtain quality merchandise in sufficient quantities; challenges with the planning or implementation of our technology upgrades, including a new enterprise resource planning system; disruption in our receiving and distribution system, including delays in the integration of our distribution centers and the possibility that we may not realize the anticipated benefits of multiple distribution centers; effects of new or proposed tariffs and changes to international trade policies and agreements; the possibility of cyberattacks and our ability to maintain adequate cybersecurity systems and procedures; loss, corruption and misappropriation of data and information relating to clients and employees; changes in and compliance with applicable data privacy rules and regulations; risks as a result of constraints in our supply chain or disruptions due to geopolitical events such as acts of war and/or terrorism or other hostilities; a failure of our vendors to meet our quality standards; declines in general economic conditions that affect consumer confidence and consumer spending that could adversely affect our revenue; our ability to anticipate changes in consumer preferences; risks related to maintaining and increasing Showroom traffic and sales; our ability to compete in our market; our ability to adequately protect our intellectual property; compliance with applicable governmental regulations; effectively managing our eCommerce sales channel and digital marketing efforts; our reliance on third-party transportation carriers and risks associated with freight and transportation costs; and compliance with SEC rules and regulations as a public reporting company. These factors should not be construed as exhaustive. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Arhaus, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited, amounts in thousands, except share and per share data)
		March 31, 2026			December 31, 2025
Assets
Current assets
Cash and cash equivalents		$	177,111		$	253,356
Restricted cash			3,224			3,124
Accounts receivable, net			432			663
Merchandise inventory, net			369,457			338,806
Prepaid and other current assets			31,619			25,425
Total current assets			581,843			621,374
Operating right-of-use assets			408,763			391,274
Financing right-of-use assets			32,744			33,275
Property, furniture and equipment, net			322,038			316,216
Deferred tax assets			18,863			19,545
Goodwill			10,961			10,961
Other noncurrent assets			2,308			2,101
Total assets		$	1,377,520		$	1,394,746
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	67,925		$	78,360
Accrued taxes			6,544			10,322
Accrued wages			14,851			20,879
Accrued other expenses			40,379			46,781
Client deposits			271,229			235,943
Current portion of operating lease liabilities			64,475			60,115
Current portion of financing lease liabilities			964			862
Total current liabilities			466,367			453,262
Operating lease liabilities, long-term			482,109			467,226
Financing lease liabilities, long-term			52,166			52,374
Other long-term liabilities			4,193			3,656
Total liabilities		$	1,004,835		$	976,518
Commitments and contingencies (Note 9)
Stockholders’ equity
Class A shares, par value $0.001 per share (600,000,000 shares authorized, 54,912,375 shares issued and 54,206,609 outstanding as of March 31, 2026; 54,565,242 shares issued and 53,969,149 outstanding as of December 31, 2025)			54			54
Class B shares, par value $0.001 per share (100,000,000 shares authorized, 87,115,600 shares issued and outstanding as of March 31, 2026; 87,115,600 shares issued and outstanding as of December 31, 2025)			87			87
Retained earnings			162,209			210,365
Additional paid-in capital			210,335			207,722
Total stockholders’ equity			372,685			418,228
Total liabilities and stockholders’ equity		$	1,377,520		$	1,394,746

Arhaus, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited, amounts in thousands, except share and per share data)
		Three months ended
		March 31,
			2026				2025
Net revenue		$	314,276			$	311,372
Cost of goods sold			199,841				195,785
Gross margin			114,435				115,587
Selling, general and administrative expenses			112,195				110,058
Loss on disposal of assets			104				108
Income from operations		$	2,136			$	5,421
Interest income, net			(454	)			(573	)
Other income			(847	)			(86	)
Income before taxes			3,437				6,080
Income tax expense			1,214				1,198
Net and comprehensive income		$	2,223			$	4,882
Net and comprehensive income per share, basic
Weighted-average number of common shares outstanding, basic			140,966,908				140,361,588
Net and comprehensive income per share, basic		$	0.02			$	0.03
Net and comprehensive income per share, diluted
Weighted-average number of common shares outstanding, diluted			141,741,874				141,090,633
Net and comprehensive income per share, diluted		$	0.02			$	0.03

Arhaus, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited, amounts in thousands)
		Three months ended
		March 31,
			2026				2025
Cash flows from operating activities
Net income		$	2,223			$	4,882
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization			12,370				11,362
Amortization of operating lease right-of-use asset			11,851				10,046
Amortization of deferred financing fees, interest on finance lease in excess of principal paid and interest on operating leases			7,844				6,902
Equity based compensation			2,645				1,595
Deferred tax assets			682				(358	)
Amortization of cloud computing arrangements			752				413
Loss on disposal of assets			104				108
Gain on insurance claims			(583	)			—
Changes in operating assets and liabilities
Accounts receivable			231				202
Merchandise inventory			(30,651	)			(4,393	)
Prepaid and other assets			(7,167	)			(380	)
Other noncurrent liabilities			515				(377	)
Accounts payable			(11,895	)			(8,685	)
Accrued expenses			(16,059	)			(3,209	)
Operating lease liabilities			(17,852	)			(13,926	)
Client deposits			35,286				42,333
Net cash (used in) provided by operating activities			(9,704	)			46,515
Cash flows from investing activities
Purchases of property, furniture and equipment			(16,880	)			(27,621	)
Insurance proceeds			1,000				—
Net cash used in investing activities			(15,880	)			(27,621	)
Cash flows from financing activities
Principal payments under finance leases			(184	)			(212	)
Repurchase of shares for payment of withholding taxes for equity based compensation			(867	)			(1,458	)
Cash dividend payments			(49,510	)			(239	)
Net cash used in financing activities			(50,561	)			(1,909	)
Net (decrease) increase in cash, cash equivalents and restricted cash			(76,145	)			16,985
Cash, cash equivalents and restricted cash
Beginning of period			256,480				200,929
End of period		$	180,335			$	217,914
Supplemental disclosure of cash flow information
Interest paid in cash		$	1,287			$	1,258
Interest received in cash			1,818				1,938
Income taxes paid in cash			681				541
Noncash investing activities:
Purchases of property, furniture and equipment in current liabilities			8,688				6,648

Arhaus, Inc. and Subsidiaries Reconciliation of Net Income to Adjusted EBITDA (Unaudited, amounts in thousands)
		Three months ended
		March 31,
			2026				2025
Net and comprehensive income		$	2,223			$	4,882
Interest income, net			(454	)			(573	)
Income tax expense			1,214				1,198
Depreciation and amortization			12,370				11,362
EBITDA			15,353				16,869
Equity based compensation			2,645				1,595
Other expenses (1)			—				108
Adjusted EBITDA		$	17,998			$	18,572
Net revenue		$	314,276			$	311,372
Net and comprehensive income as a % of net revenue			0.7	%			1.6	%
Adjusted EBITDA as a % of net revenue			5.7	%			6.0	%

_{⁽¹⁾ Other expenses represent costs and investments not indicative of ongoing business performance, such as loss on disposal of assets.}

Arhaus, Inc. and Subsidiaries Reconciliation of Free Cash Flow (Unaudited, amounts in thousands)
		Three months ended
		March 31,
			2026				2025
Net cash (used in) provided by operating activities		$	(9,704	)		$	46,515
Net cash used in investing activities		$	(15,880	)		$	(27,621	)
Free cash flow		$	(25,584	)		$	18,894

Free Cash Flow is defined as net cash provided by operating activities less net cash used in investing activities.

Arhaus, Inc. and Subsidiaries Supplemental Comparable Metrics Schedules (Unaudited)

Supplemental Comparable Metrics Schedules


Comparable Written Sales
⁽²⁾
by Quarter and Year-to-Date

The table below represents Comparable Written Sales⁽²⁾ on a quarterly and year-to-date basis for fiscal year 2026. Comparable Written Sales⁽²⁾ reflects written sales trends during the period and is measured using a 13-month comparable Showroom definition, consistent with historical disclosure.

Comparable Written Sales previously referred to as “Demand Comparable Growth” is a key performance indicator and is defined as the year-over-year percentage change of written sales from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.

2026		Comparable Written Sales (Quarter-to-Date)		Comparable Written Sales (Year-to-Date)
First Quarter		(5.7)%		(5.7)%

Comparable Delivered Sales
⁽¹⁾
by Quarter and Year-to-Date
The table below represents Comparable Delivered Sales⁽¹⁾ on a quarterly and year-to-date basis for fiscal year 2026. Comparable Delivered Sales⁽¹⁾ reflects revenue recognized during the period and is measured using a 15-month comparable Showroom definition, consistent with historical disclosure.

Comparable Delivered Sales previously referred to as “Comparable Growth” is a key performance indicator and is defined as the year-over-year percentage change of the dollar value of orders delivered (based on purchase price), net of the dollar value of returns (based on amount credited to client), from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.

2026		Comparable Delivered Sales (Quarter-to-Date)		Comparable Delivered Sales (Year-to-Date)
First Quarter		(1.7)%		(1.7)%

Due to differences in order timing, backlog, and revenue recognition, Comparable Written Sales⁽²⁾ and Comparable Delivered Sales⁽¹⁾ use different comparable Showroom eligibility thresholds. Comparable Written Sales⁽²⁾ metrics use a 13-month definition to reflect written sales trends, while Comparable Delivered Sales⁽¹⁾ metrics use a 15-month definition to reflect revenue recognition consistency.

Arhaus, Inc. and Subsidiaries Supplemental Showroom Schedules (Unaudited)

Supplemental Showroom Schedules


Showroom Portfolio Composition
The table below represents the composition of the Showroom Portfolio by format and operating footprint as of each period presented:

		March 31, 2026		December 31, 2025
Traditional Showrooms		90		90
Design Studios		9		9
Lofts		8		8
Total Showrooms		107		107
Total gross square footage (in thousands)		1,835		1,836
Showrooms with interior designers		96		97
Total interior designers		146		142
States where we operate		31		31

Geographic Showroom Footprint
The table below represents the number of Showrooms in each U.S. state in which the Company operates as of March 31, 2026.

Locations		Showrooms		Locations		Showrooms
Alabama		1		Missouri		1
Arizona		2		Montana		1
California		16		New Hampshire		1
Colorado		6		New Jersey		5
Connecticut		3		New York		4
Florida		9		North Carolina		4
Georgia		3		Ohio		9
Illinois		4		Oklahoma		1
Indiana		1		Pennsylvania		4
Kansas		1		South Carolina		1
Kentucky		3		Tennessee		1
Louisiana		1		Texas		8
Maryland		4		Utah		1
Massachusetts		3		Virginia		4
Michigan		3		Wisconsin		1
Minnesota		1

Showroom
Maturity
Mix
The table below represents the composition of the Showroom portfolio by maturity as of the period presented.

March 31, 2026
Maturity Bucket		Definition		% of Portfolio			# of Showrooms
< 12 Months		Opened within Last 12 Months		6%			7
12-24 Months		Opened 12 to 24 Months		18%			19
24-36 Months		Opened 24 to 36 Months		12%			13
> 36 Months		Mature Showrooms		64%			68
Total				100 %			107

The elevated proportion of newer showrooms reflects increased openings and relocations over the past several years and supports embedded future revenue growth as locations mature; Maturity is measured from Showroom opening date or relocation reopening date; Includes Traditional Showrooms, Design Studios, and Lofts; Excludes temporary closures.

Illustrative Unit Economics (Targets)
The table below represents targeted Showroom unit economics at maturity, based on internal underwriting assumptions and historical performance.

Metric		Traditional Showroom		Design Studio
		(~ 17 K sq ft)		(~ 6 K sq ft)
Net Revenue Maturity		> $10M		Lower than Traditional
Contribution Margin (pre-D&A)		~32%		~35%
Cash Payback		< 2 years		< 2 years
Company-funded capital expenditures		~$4 – 6M		Lower
Revenue Maturity		Year 3		Year 3

Company-funded capital expenditures represents the total net cash used in investing activities less landlord contributions; Targets reflect performance at full maturity; Assumptions are informed by historical performance, internal underwriting, and recent Showroom cohorts.

Total Showroom Projects
⁽³⁾
The table below represents the total Showroom project pipeline for fiscal year 2026, consistent with the Company’s guidance.

Guidance Full-Year 2026
Project Type		Definition		# of Projects
New Openings		New Showroom openings		4 to 6
Relocations		Relocation of existing Showrooms		4 to 5
Renovations/Expansions		Refreshes of remodels and Expansions of existing Showrooms		2 to 3
Total Showroom Projects (3)				10 to 14

Total Showroom Projects⁽³⁾ are expected to be within the Company’s full-year 2026 guidance range. For competitive reasons, the Company does not disclose the specific locations of planned Total Showroom Projects⁽³⁾. The Company provides additional detail on Showroom activity following completion as part of its regular quarterly disclosures.

SCOTTSDALE, Ariz., May 07, 2026 (GLOBE NEWSWIRE) — LifeStance Health Group, Inc. (Nasdaq: LFST), one of the nation’s largest providers of outpatient mental healthcare, today announced financial results for the first quarter ended March 31, 2026.

(All results compared to prior-year comparative period, unless otherwise noted)

2026 Highlights and FY 2026 Outlook

• Revenue of $403.5 million increased 21% compared to revenue of $333.0 million
• Clinician base increased 11% to 8,349 clinicians, a sequential net increase of 309 in the first quarter
• First quarter visit volumes increased 18% to 2.5 million
• Net income of $14.2 million compared to net income of $0.7 million
• Adjusted EBITDA of $51.1 million compared to Adjusted EBITDA of $34.6 million
• Net cash provided by operations of $33.1 million in the first quarter
• Free Cash Flow generation of $22.3 million in the first quarter
• For full year 2026, raising revenue expectations to $1.640 billion to $1.680 billion, Center Margin expectations to $547 million to $571 million, and Adjusted EBITDA of $200 million to $220 million

“We delivered an exceptional quarter to begin the year, highlighted by strong revenue growth of 21%, net income growth of $13.5 million, and Adjusted EBITDA growth of 48%,” said Dave Bourdon, CEO of LifeStance. “Our performance demonstrates that our differentiated model is meeting the societal trend of growing demand for mental healthcare. We also took an important step forward in our commitment to clinical excellence by announcing an outcomes study on approximately 180,000 LifeStance patients that showed roughly three quarters reported clinically significant improvement in anxiety and depression.”

Financial Highlights
		Q1 2026				Q1 2025				Y/Y
(in millions)
Total revenue		$	403.5			$	333.0				21	%
Income from operations			22.3				1.6			NM
Center Margin			135.9				109.8				24	%
Net income			14.2				0.7			NM
Adjusted EBITDA			51.1				34.6				48	%
As % of Total revenue:
Income from operations			5.5	%			0.5	%
Center Margin			33.7	%			33.0	%
Net income			3.5	%			0.2	%
Adjusted EBITDA			12.7	%			10.4	%
NM – not meaningful

(All results compared to prior-year period, unless otherwise noted)

• Revenue grew 21% to $403.5 million. Revenue growth in the first quarter was driven primarily by higher visit volumes from net clinician growth, improved clinician productivity, and higher total revenue per visit.
• Income from operations was $22.3 million and net income was $14.2 million.
• Center Margin grew 24% to $135.9 million, or 33.7% of total revenue.
• Adjusted EBITDA increased 48% to $51.1 million, or 12.7% of total revenue. Adjusted EBITDA as a percentage of revenue increased in the first quarter as a result of higher total revenue per visit, lower center costs as a percentage of revenue, and improved operating leverage from revenue growing faster than general and administrative expenses.

Balance Sheet, Cash Flow, and Capital Allocation

For the three months ended March 31, 2026, LifeStance generated $33.1 million cash flow from operations. The Company ended the first quarter with cash of $194.8 million and net long-term debt of $262.5 million.

2026 Guidance

LifeStance is providing the following outlook for 2026:

• The Company is raising full year revenue to $1.640 billion to $1.680 billion, Center Margin to $547 million to $571 million, and Adjusted EBITDA to $200 million to $220 million.
• For the second quarter of 2026, the Company expects total revenue of $405 million to $425 million, Center Margin of $135 million to $147 million, and Adjusted EBITDA of $50 million to $60 million.

Conference Call, Webcast Information, and Presentations

LifeStance will hold a conference call today, May 7, 2026 at 8:30 a.m. Eastern Time to discuss the first quarter 2026 results. Investors who wish to participate in the call should dial 1-800-715-9871, domestically, or 1-646-307-1963, internationally, approximately 10 minutes before the call begins and provide conference ID number 8795477 or ask to be joined into the LifeStance call. A real-time audio webcast can be accessed via the Events and Presentations section of the LifeStance Investor Relations website (https://investor.lifestance.com), where related materials will be posted prior to the conference call.

About LifeStance Health Group, Inc.

Founded in 2017, LifeStance (Nasdaq: LFST) is reimagining mental health. We are one of the nation’s largest providers of virtual and in-person outpatient mental healthcare for children, adolescents and adults experiencing a variety of mental health conditions. Our mission is to help people lead healthier, more fulfilling lives by improving access to trusted, affordable, and personalized mental healthcare. LifeStance and its supported practices employ over 8,300 psychiatrists, advanced practice nurses, psychologists and therapists and operates across 33 states and more than 550 centers. To learn more, please visit www.LifeStance.com.

We routinely post information that may be important to investors on the “Investor Relations” section of our website at investor.lifestance.com. We encourage investors and potential investors to consult our website regularly for important information about us.

Forward-Looking Statements

Statements in this press release and on the related teleconference that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements. These statements include, but are not limited to, statements with respect to: full year and second quarter guidance and management’s related assumptions; business plans and objectives; our share repurchase authorization and repurchases thereunder; and other statements contained in this press release that are not historical facts. When used in this press release and on the related teleconference, words such as “may,” “will,” “should,” “could,” “intend,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” “predict,” “project,” “seek” and similar expressions as they relate to us are intended to identify forward-looking statements. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: if reimbursement rates paid by third-party payors are reduced or if third-party payors otherwise restrain our ability to obtain or deliver care to patients, our business could be materially harmed; we may not grow at the rates we historically have achieved or at all, even if our key metrics may imply future growth, including if we are unable to successfully execute on our growth initiatives and business strategies; if we fail to manage our growth effectively, our expenses could increase more than expected, our revenue may not increase proportionally or at all, and we may be unable to execute on our business strategy; our ability to recruit new clinicians and retain existing clinicians; we conduct business in a heavily regulated industry and if we fail to comply with these laws and government regulations, we could incur penalties or be required to make significant changes to our operations or experience adverse publicity, which could have a material adverse effect on our business, results of operations and financial condition; we are dependent on our relationships with supported practices, which we do not own, to provide healthcare services, and our business would be harmed if those relationships were disrupted or if our arrangements with these entities became subject to legal challenges; we operate in a competitive industry, and if we are not able to compete effectively, our business and financial performance would be harmed; the impact on us of healthcare reform legislation and other changes in the healthcare industry and in healthcare spending is currently unknown, but may harm our business; if our or our vendors’ security measures fail or are breached and unauthorized access to our employees’, patients’ or partners’ data is obtained, our systems may be perceived as insecure, we may incur significant liabilities, including through private litigation or regulatory action, our reputation may be harmed, and we could lose patients and partners; our business depends on our ability to effectively invest in, implement improvements to and properly maintain the uninterrupted operation and data integrity of our information technology and other business systems; our existing indebtedness could adversely affect our business and growth prospects; and other risks and uncertainties set forth under “Risk Factors” included in the reports we have filed or will file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings made with the Securities and Exchange Commission. LifeStance does not undertake to update any forward-looking statements made in this press release to reflect any change in management’s expectations or any change in the assumptions or circumstances on which such statements are based, except as otherwise required by law.

Non-GAAP Financial Information

This press release contains certain non-GAAP financial measures, including Center Margin, Adjusted EBITDA, and Adjusted EBITDA margin. Tables showing the reconciliation of these non-GAAP financial measures to the comparable GAAP measures are included at the end of this release. Management believes these non-GAAP financial measures are useful in evaluating the Company’s operating performance, and may be helpful to securities analysts, institutional investors and other interested parties in understanding the Company’s operating performance and prospects. This press release also refers to Free Cash Flow, which is calculated as net cash provided by (used in) operating activities less purchases of property and equipment. Management believes Free Cash Flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after investments in property and equipment, can be used for future growth. These non-GAAP financial measures, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance. Therefore, the Company’s non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP, such as net income or income from operations.

Center Margin and Adjusted EBITDA anticipated for the second quarter of 2026 and full year 2026 are calculated in a manner consistent with the historical presentation of these measures at the end of this release. Reconciliation for the forward-looking second quarter of 2026 and full year 2026 Center Margin, Adjusted EBITDA guidance and Free Cash Flow is not being provided, as LifeStance does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation. As such, LifeStance management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results.

Management acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results.

Consolidated Financial Information and Reconciliations

CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except for par value)
		March 31, 2026				December 31, 2025
CURRENT ASSETS
Cash and cash equivalents		$	194,797			$	248,642
Patient accounts receivable, net			122,916				95,710
Prepaid expenses and other current assets			38,198				71,848
Total current assets			355,911				416,200
NONCURRENT ASSETS
Property and equipment, net			161,468				161,583
Right-of-use assets			151,526				149,720
Intangible assets, net			175,141				177,665
Goodwill			1,296,999				1,293,346
Other noncurrent assets			4,837				5,419
Total noncurrent assets			1,789,971				1,787,733
Total assets		$	2,145,882			$	2,203,933
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		$	4,292			$	6,122
Accrued payroll expenses			117,306				143,327
Other accrued expenses			52,408				42,187
Operating lease liabilities, current			47,369				45,544
Other current liabilities			18,357				14,782
Total current liabilities			239,732				251,962
NONCURRENT LIABILITIES
Long-term debt, net			262,459				265,927
Operating lease liabilities, noncurrent			148,821				148,553
Deferred tax liability, net			16,408				16,408
Other noncurrent liabilities			1,046				68
Total noncurrent liabilities			428,734				430,956
Total liabilities		$	668,466			$	682,918
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock – par value $0.01 per share; 25,000 shares authorized as of March 31, 2026 and December 31, 2025; 0 shares issued and outstanding as of March 31, 2026 and December 31, 2025			—				—
Common stock – par value $0.01 per share; 800,000 shares authorized as of March 31, 2026 and December 31, 2025; 387,813 and 388,318 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively			3,878				3,883
Additional paid-in capital			2,267,921				2,325,758
Accumulated deficit			(794,383	)			(808,626	)
Total stockholders’ equity			1,477,416				1,521,015
Total liabilities and stockholders’ equity		$	2,145,882			$	2,203,933

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) (In thousands, except per share amounts)
		Three Months Ended March 31,
		2026				2025
TOTAL REVENUE		$	403,476			$	332,970
OPERATING EXPENSES
Center costs, excluding depreciation and amortization shown separately below			267,544				223,179
General and administrative expenses			100,330				94,431
Depreciation and amortization			13,318				13,756
Total operating expenses		$	381,192			$	331,366
INCOME FROM OPERATIONS		$	22,284			$	1,604
OTHER EXPENSE
Loss on remeasurement of contingent consideration			(5	)			—
Transaction costs			(544	)			—
Interest expense, net			(1,793	)			(3,073	)
Other expense			(182	)			(1	)
Total other expense		$	(2,524	)		$	(3,074	)
INCOME (LOSS) BEFORE INCOME TAXES			19,760				(1,470	)
INCOME TAX (PROVISION) BENEFIT			(5,517	)			2,179
NET INCOME		$	14,243			$	709
EARNINGS PER SHARE
Basic			0.04				0.00
Diluted			0.04				0.00
Weighted-average shares outstanding
Basic			387,264				383,272
Diluted			395,084				390,666
NET INCOME		$	14,243			$	709
OTHER COMPREHENSIVE LOSS
Unrealized losses on cash flow hedge, net of tax			—				(317	)
COMPREHENSIVE INCOME		$	14,243			$	392

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)
		Three Months Ended March 31,
		2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	14,243			$	709
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			13,318				13,756
Non-cash operating lease costs			10,717				10,231
Stock-based compensation			15,201				18,584
Amortization of discount and debt issue costs			251				251
Other, net			129				357
Change in operating assets and liabilities, net of businesses acquired:
Patient accounts receivable, net			(26,953	)			(8,568	)
Prepaid expenses and other current assets			33,779				(4,515	)
Accounts payable			(1,017	)			(77	)
Accrued payroll expenses			(26,362	)			(17,540	)
Operating lease liabilities			(9,955	)			(11,894	)
Other accrued expenses			9,758				(4,386	)
Net cash provided by (used in) operating activities		$	33,109			$	(3,092	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment			(10,767	)			(7,168	)
Acquisitions of businesses, net of cash acquired			(3,144	)			—
Net cash used in investing activities		$	(13,911	)		$	(7,168	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of long-term debt			—				(1,813	)
Taxes related to net share settlement of equity awards			(23,936	)			(8,162	)
Repurchases of common stock			(49,107	)			—
Net cash used in financing activities		$	(73,043	)		$	(9,975	)
NET DECREASE IN CASH AND CASH EQUIVALENTS			(53,845	)			(20,235	)
Cash and cash equivalents – beginning of period			248,642				154,571
CASH AND CASH EQUIVALENTS – END OF PERIOD		$	194,797			$	134,336
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest, net		$	77			$	4,382
Cash paid for taxes, net of refunds		$	349			$	609
SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING AND FINANCING ACTIVITIES
Contingent consideration incurred in acquisitions of businesses		$	1,008			$	—
Acquisition of property and equipment included in liabilities		$	2,489			$	2,348

RECONCILIATION OF INCOME FROM OPERATIONS TO CENTER MARGIN
		Three Months Ended March 31,
		2026				2025
(in thousands)
Income from operations		$	22,284			$	1,604
Adjusted for:
Depreciation and amortization			13,318				13,756
General and administrative expenses(1)			100,330				94,431
Center Margin		$	135,932			$	109,791

	(1)		Represents salaries, wages and employee benefits for our executive leadership, finance, human resources, marketing, billing and credentialing support and technology infrastructure and stock-based compensation for all employees.

 

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
		Three Months Ended March 31,
		2026				2025
(in thousands)
Net income		$	14,243			$	709
Adjusted for:
Interest expense, net			1,793				3,073
Depreciation and amortization			13,318				13,756
Income tax provision (benefit)			5,517				(2,179	)
Loss on remeasurement of contingent consideration			5				—
Stock-based compensation expense			15,201				18,584
Loss on disposal of assets			182				1
Transaction costs(1)			544				—
Executive transition costs			—				185
Litigation costs(2)			(197	)			205
Strategic initiatives(3)			86				—
Real estate optimization and restructuring charges(4)			—				(45	)
Amortization of cloud-based software implementation costs(5)			418				357
Adjusted EBITDA		$	51,110			$	34,646

	(1)		Primarily includes capital markets advisory, consulting, accounting and legal expenses related to the underwritten public offering of shares of our common stock by certain selling stockholders completed in the first quarter of 2026.
	(2)		Litigation costs, net of insurance recoveries, include only those costs which are considered non-recurring and outside of the ordinary course of business based on the following considerations, which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) the complexity of the case (e.g., complex class action litigation), (iii) the nature of the remedy(ies) sought, including the size of any monetary damages sought, (iv) the counterparty involved, and (v) our overall litigation strategy. During each of the three months ended March 31, 2026 and 2025, litigation costs included cash expenses related to certain litigation matters, including a privacy class action litigation, and for the three months ended March 31, 2025, a compensation model class action litigation.
	(3)		Strategic initiatives consist of expenses directly related to evaluating and implementing a critical enterprise-wide scalable electronic health resources system in connection with our significant expansion. Strategic initiatives represents costs, such as third-party consulting costs and one-time costs, that are not part of our ongoing operations related to this enterprise-wide system. We considered the frequency and scale of this enterprise upgrade when determining that the expenses were not normal, recurring operating expenses.
	(4)		Real estate optimization and restructuring charges consist of cash expenses and non-cash charges related to our real estate optimization initiative, which included certain asset impairment and disposal costs, certain gains and losses related to early lease terminations, and exit and disposal costs related to our real estate optimization initiative to consolidate our physical footprint during 2023. As the decision to close these centers was part of a significant strategic project driven by a historic shift in behavior, the magnitude of center closures was greater than what would be expected as part of ordinary business operations and did not constitute normal recurring operating activities. During the three months ended March 31, 2025, real estate optimization and restructuring charges consisted of certain gains and losses related to early lease terminations of previously abandoned real estate leases in 2023.
	(5)		Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within general and administrative expenses included in our unaudited consolidated statements of operations and comprehensive income.