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PSQ Holdings, Inc. Announces First Quarter 2026 Financial Results

First Quarter Revenue Growth of 167%

First Quarter Operating Expense Reduction of 18%

First Quarter Revenue Per Headcount Improves 287%

BOZEMAN, Mont.–(BUSINESS WIRE)–
PSQ Holdings, Inc. (NYSE: PSQH) (the “Company”), a payments and financial infrastructure company, today reported financial results for the first quarter 2026.

FIRST QUARTER 2026 HIGHLIGHTS

• Net revenue from continuing operations, which includes the financial technology (“fintech”) segment, for the quarter ended March 31, 2026 was $8.2 million compared to $3.1 million for the first quarter ended March 31, 2025, a 167% increase compared to the prior year period.

• Operating expense (defined as general and administrative, sales and marketing, and research and development expense) for the quarter ended March 31, 2026 decreased $2.0 million or a decrease of 18% compared to the prior year period.

• Operating loss for the quarter ended March 31, 2026 was $6.1 million, an improvement of $3.2 million or 34% compared to $9.3 million for the quarter ended March 31, 2025.

• Operating cash burn for the quarter ended March 31, 2026 was $4.1 million, an improvement of $2.3 million or 36% compared to $6.4 million for the quarter ended March 31, 2025.

• Income from discontinued operations, net of tax for the quarter ended March 31, 2026 was $26,710 compared to $2.4 million loss for the first quarter of 2025.

• Net loss for the quarter ended March 31, 2026 was $6.5 million, an increase of $2.0 million, or 45%, compared to a net loss of $4.4 million for the quarter ended March 31, 2025. This was primarily driven by a $7.1 million decrease in gains related to changes in the fair value of warrant and earnout liabilities.

• Loss per share for the quarter ended March 31, 2026 increased to $0.12 compared to $0.10 for the first quarter of 2025, a 20% increase, primarily driven by the change in fair value of the warrant and earnout liabilities.

• Revenue per headcount for quarter ended March 31, 2026 was $173,583 compared to $44,864 for the three months ended March 31, 2025, an improvement of 287%.

• Non-GAAP operating loss (a Non-GAAP measure) for the quarter ended March 31, 2026 was $0.9 million compared to $2.8 million in the prior year period, an improvement of 70%.

The definitions and reconciliations of Non-GAAP operating loss to GAAP operating Income loss are provided under the heading Non-GAAP measures at the end of this release.

Dusty Wunderlich, Chairman & CEO of PSQ Holdings, commented, “Q1 2026 was our strongest quarter ever, and the numbers tell the story. Revenue up 167% year over year, operating expenses down 18%, Payments Gross Merchandise Volume (GMV) exceeding $186 million, a record for us, Credit GMV up 32%, and revenue per employee up 287%, proof that doing more with less is not a talking point, it is how we operate, and we intend to keep pushing that number higher.”

“AI is doing exactly what we believed it would, making us more efficient, more capable, and, frankly, better at our jobs. We were early to adopt machine learning, deploying it in underwriting back in 2021, and we have been expanding its use across engineering, finance, and risk management ever since. A lean team with the right tools can do remarkable things, and that 287% improvement in revenue per employee is the proof.”

“We are in the business of earning trust from merchants who need a payments and financial infrastructure partner they can count on. That is not something you claim; it is something you demonstrate quarter after quarter. Q1 is us demonstrating it. The priorities have not changed: grow revenue responsibly, reduce cash burn, and get to profitability. We are executing, the model is working, and the opportunity ahead is significant.”

OPERATIONAL RESTRUCTURING

Over the past two quarters, the Company has executed a comprehensive operational restructuring in conjunction with its strategic repositioning as a pure-play financial technology company. Staff reductions of 41%, implemented from September 2025 through March 2026, combined with the winding down of the Marketplace segment and reductions in corporate operating expenses and contractor and consulting agreements, are expected to result in annualized cash savings of approximately $8.0 million. The results of these efforts are reflected in the Company’s Q1 2026 operating metrics: operating expenses declined 18% year over year, headcount decreased from 68 to 47 full-time employees, and revenue per headcount improved 287% to $173,583. The Company views these improvements not as a one-time reset, but as the foundation of a more capital-efficient operating model designed to support sustained revenue growth with disciplined cost management.

FINANCIAL REVIEW

Balance Sheet & Liquidity

• As of March 31, 2026, the Company had $11.8 million of restricted cash and cash and cash equivalents, which included $0.2 million related to discontinued operations.

• The Company had an outstanding principal balance of $7.4 million on its $10.0 million revolving line of credit as of March 31, 2026. The Company draws on this credit line to fund new consumer loan and lease originations, and repays it as those loans are collected or sold to third parties.

Discontinued Operations

• Net revenues from discontinued operations, which includes the Brands and Marketplace business segments, for the quarter ended March 31, 2026 was $3.7 million compared to $3.7 million for the quarter ended March 31, 2025. Brands revenue comprised 98% of the net revenues from discontinued operations for the quarter ended March 31, 2026, compared to 88% in the prior year period.

Note: Beginning with the third quarter 2025 reporting period both the Brands and Marketplace business segments are being shown as discontinued operations in the Company’s financial statements.Results from discontinued operations are provided within the financial tables at the end of this release.

BRANDS DIVESTITURE UPDATE

The Company continues to actively pursue the sale of its Brands segment, which includes EveryLife. The sale process remains ongoing, and management expects to enter into a definitive agreement during the first half of 2026. Proceeds from the transaction are expected to be redeployed to the balance sheet in support of the Company’s Financial Technology operations.

FINANCIAL LEADERSHIP TRANSITION

As previously announced on April 7, 2026, James Rinn stepped down as Chief Financial Officer effective April 30, 2026. The Board appointed Michael Pena as Chief Financial Officer and Krista Wenzel as Chief Accounting Officer, both effective May 1, 2026.

First Quarter 2026 Conference Call and Webcast

Management will host a teleconference and webcast to discuss its first quarter 2026 results today, May 7, 2026 at 9:00 a.m. ET. The conference call can be accessed live through a link on the PSQ Holdings Investor Relations website at investors.publicsquare.com. During the webcast, the company will take both inbound questions received ahead of the call and questions from equity research analysts. Additionally, you can participate in the conference call by dialing (800) 715-9871 domestically or (646) 307-1963 internationally, and referencing conference ID #6209150. Attendees should log in to the webcast or dial in approximately 15 minutes before the start time of the call.

About PSQ Holdings

PSQ Holdings (NYSE: PSQH) is a payments and financial infrastructure company. We build and operate financial infrastructure in highly regulated environments for industries underserved by traditional financial institutions, including businesses, campaigns, and nonprofits that depend on reliable, compliant payment solutions. For more information, visit publicsquare.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and for purposes of the “safe harbor” provisions under the United States Private Securities Litigation Reform Act of 1995. Any statements other than statements of historical fact contained herein are forward-looking statements. Such forward-looking statements include, but are not limited to, expectations, hopes, beliefs, intentions, plans, prospects, financial results or strategies regarding PublicSquare, anticipated product launches, our products and markets, future financial condition, expected future performance and market opportunities of PublicSquare. Forward-looking statements generally are identified by the words “anticipate,” “could,” “expect,” “future,” “intend,” “may,” “might,” “strategy,” “target,” “opportunity,” “plan,” “project,” “possible,” “potential,” “project,” “predict,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, and in this press release, include statements about our expected revenue, revenue growth, operating expenses, anticipated growth, ability to achieve profitability, our plans for the Brands and Marketplace segments, and our outlook; however, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including, without limitation: (i) unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of our operations, (ii) changes in the competitive industries and markets in which PublicSquare operates, variations in performance across competitors, changes in laws and regulations affecting PublicSquare’s business and changes in the combined capital structure, (iii) the ability to implement business plans, growth, marketplace and other expectations, and identify and realize additional opportunities, (iv) risks related to PublicSquare’s limited operating history, the rollout and/or expansion of its business and the timing of expected business milestones, (v) risks related to PublicSquare’s potential inability to achieve or maintain profitability and generate significant revenue, (vi) the ability to raise capital on reasonable terms as necessary to develop its products in the timeframe contemplated by PublicSquare’s business plan, (vii) the ability to execute PublicSquare’s anticipated business plans and strategy, (viii) the ability of PublicSquare to enforce its current or future intellectual property, including patents and trademarks, along with potential claims of infringement by PublicSquare of the intellectual property rights of others, (ix) actual or potential loss of key influencers, media outlets and promoters of PublicSquare’s business or a loss of reputation of PublicSquare or reduced interest in the mission and values of PublicSquare and the segment of the consumer marketplace it intends to serve, (x) because the payment processing and credit agreements are terminable at will without notice, merchants that have signed agreements to use PublicSquare’s payment processing services may terminate those services or otherwise fail to utilize the services at the expected volume, (xi) the risk of economic downturn, increased competition, a changing regulatory landscape and related impacts that could occur in the highly competitive consumer marketplace, both online and through “bricks and mortar” operations, (xii) the risk of PublicSquare being unable to sell its Brands segment, in a timely manner, at desirable prices, or at all, and (xiii) risks associated with the Company’s ability to execute on its plans to reposition into a Fintech-forward business, including the Company’s pursuit of any money transmitter licenses. The foregoing list of factors is not exhaustive. Recipients should carefully consider such factors and the other risks and uncertainties described and to be described in PublicSquare’s public filings with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Recipients are cautioned not to put undue reliance on forward-looking statements, and PublicSquare does not assume any obligation to, nor does it intend to, update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. PublicSquare gives no assurance that PublicSquare will achieve its expectations.

PSQ HOLDINGS, INC. Condensed Consolidated Balance Sheets
	March 31, 2026				December 31, 2025
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	10,057,059			$	14,644,384
Restricted cash		1,589,586				1,119,580
Accounts receivable, net		1,932,629				1,630,987
Lease receivable, net		93,810				156,516
Loans held for investment, net of allowance for credit losses of $768,235 and $778,704 as of March 31, 2026 and December 31, 2025, respectively		6,876,900				6,148,072
Lease merchandise, net of accumulated depreciation of $1,000,916 and $938,959 as of March 31, 2026 and December 31, 2025, respectively		486,490				960,024
Interest receivable		246,370				250,450
Prepaid expenses and other current assets		2,266,149				2,450,321
Current assets held for sale (Note 4)		3,868,785				4,407,921
Total current assets		27,417,778				31,768,255
Loans held for investment, net of allowance for credit losses of $154,694 and $150,702 as of March 31, 2026 and December 31, 2025, respectively, non-current		1,198,913				1,189,832
Lease merchandise, net of accumulated depreciation of $94,163 and $72,335 as of March 31, 2026 and December 31, 2025, respectively, non-current		235,839				329,463
Property and equipment, net		156,992				187,262
Intangible assets, net		13,793,270				14,573,323
Goodwill		10,930,978				10,930,978
Operating lease right-of-use assets		591,169				669,356
Deposits		29,939				29,939
Total assets	$	54,354,878			$	59,678,408
Liabilities and stockholders’ equity
Current liabilities:
Revolving line of credit	$	7,404,248			$	6,174,546
Accounts payable		5,145,602				5,351,651
Accrued expenses		1,461,783				1,205,386
Operating lease liabilities, current portion		333,899				323,842
Current liabilities held for sale (Note 4)		1,893,180				2,612,041
Total current liabilities		16,238,712				15,667,466
Convertible promissory notes, related party (Note 10)		20,000,000				20,000,000
Convertible promissory notes		8,449,500				8,449,500
Earn-out liabilities		501,500				540,000
Warrant liabilities		572,000				1,230,250
Operating lease liabilities		267,732				354,286
Total liabilities		46,029,444				46,241,502
Commitments and contingencies (Note 16)
Stockholders’ equity
Preferred stock, $0.0001 par value; 50,000,000 authorized shares; no shares issued and outstanding as of March 31, 2026 and December 31, 2025		—				—
Class A Common Stock, $0.0001 par value; 500,000,000 authorized shares; 48,726,402 shares and 46,492,639 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively		4,873				4,650
Class C Common Stock, $0.0001 par value; 40,000,000 authorized shares; zero and 3,213,678 shares issued and outstanding as of March 31, 2026, and December 31, 2025, respectively		—				321
Additional paid in capital		171,287,594				169,944,031
Accumulated deficit		(162,967,033	)			(156,512,096	)
Total stockholders’ equity		8,325,434				13,436,906
Total liabilities and stockholders’ equity	$	54,354,878			$	59,678,408

PSQ HOLDINGS, INC. Condensed Consolidated Statements of Operations
	For the Three Months Ended March 31,
		2026				2025
Revenues, net	$	8,158,417			$	3,050,785
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization expense shown below)		3,599,955				630,009
General and administrative		6,615,164				8,260,744
Sales and marketing		1,604,807				1,538,462
Research and development		624,095				1,030,222
Depreciation and amortization		1,848,044				906,824
Total costs and expenses		14,292,065				12,366,261
Operating loss		(6,133,648	)			(9,315,476	)
Other (expense) income:
Other (expense) income, net		(97,280	)			309,819
Changes in fair value of earn-out liabilities		38,500				450,000
Changes in fair value of warrant liabilities		658,250				7,381,500
Interest expense, net		(947,469	)			(868,457	)
Loss before income taxes from continuing operations		(6,481,647	)			(2,042,614	)
Income tax expense		—				(8,240	)
Loss from continuing operations		(6,481,647	)			(2,050,854	)
Income / (loss) from discontinued operations, net of tax		26,710				(2,396,491	)
Net loss	$	(6,454,937	)		$	(4,447,345	)
Continuing operations loss per common share, basic and diluted	$	(0.12	)		$	(0.05	)
Discontinued operations income/(loss) per common share, basic and diluted		—				(0.05	)
Net loss per common share, basic and diluted	$	(0.12	)		$	(0.10	)
Weighted average shares outstanding, basic and diluted (1)		54,027,862				42,953,447
(1) Pre-funded warrants, issued in December 2025, can be exercised for little consideration (an exercise price per share equal to $0.0001 per share), and 5,018,184 remain unexercised as of March 31, 2026.

PSQ HOLDINGS, INC. Condensed Consolidated Statements of Cash Flows
	For the Three Months Ended March 31,
		2026				2025
Cash Flows from Operating Activities
Net loss	$	(6,454,937	)		$	(4,447,345	)
Adjustment to reconcile net loss to net cash used in operating activities:
Changes in fair value of warrant liabilities		(658,250	)			(7,381,500	)
Changes in fair value of earn-out liabilities		(38,500	)			(450,000	)
Share-based compensation		1,365,556				3,622,845
Amortization of step-up in loans held for investment		—				169,607
Provision for credit losses on loans held for investment		194,269				661,963
Origination of loans and leases for resale		(13,460,365	)			(7,869,448	)
Proceeds from sale of loans and leases for resale		15,554,070				8,931,822
Gain on sale of loans and leases		(2,093,706	)			(1,062,374	)
Impairment (recovery) of lease merchandise		(50,192	)			—
Depreciation and amortization		1,848,044				1,211,110
Non-cash operating lease expense		78,187				41,485
Changes in operating assets and liabilities:
Accounts receivable		(312,613	)			(226,613	)
Lease receivable		62,706				—
Interest receivable		4,080				75,070
Inventory		371,311				230,837
Prepaid expenses and other current assets		180,492				53,034
Deposits		18,445				(6,905	)
Accounts payable		(611,889	)			(373,712	)
Accrued expenses		103,323				425,259
Deferred revenue		(151,700	)			4,083
Operating lease liabilities		(76,498	)			(41,485	)
Net cash used in operating activities		(4,128,167	)			(6,432,267	)
Cash flows from Investing Activities
Additions to lease merchandise, net of disposals		242,666				(1,106,117	)
Software development costs		(671,284	)			(656,658	)
Principal paydowns on loans held for investment		3,210,956				4,532,763
Disbursements for loans held for investment		(4,143,133	)			(4,577,597	)
Net cash used in investing activities		(1,360,795	)			(1,807,609	)
Cash flows from Financing Activities
Proceeds from revolving line of credit		4,440,659				2,270,331
Repayments on revolving line of credit		(3,210,955	)			(2,343,207	)
Net disbursement for closing costs from private equity transaction		(22,091	)			—
Net cash provided by/(used in) financing activities		1,207,613				(72,876	)
Net decrease in cash, cash equivalents and restricted cash		(4,281,349	)			(8,312,752	)
Cash, cash equivalents and restricted cash, beginning of period		16,117,319				36,589,607
Cash, cash equivalents and restricted cash, end of the period	$	11,835,970			$	28,276,855
Cash and cash equivalents from continued operations	$	10,057,059			$	28,039,959
Restricted cash from continued operations		1,589,586				236,896
Cash and cash equivalents from discontinued operations		189,325				—
Total cash, cash equivalents and restricted cash, end of the period	$	11,835,970			$	28,276,855
Supplemental Cash Flow Information
Cash paid for interest for convertible notes and revolving line of credit	$	947,469			$	868,457

Discontinued Operations

The following table summarizes the key components of the operating results of the discontinued operations within the Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025:

	For the three months ended March 31, 2026								For the three months ended March 31, 2025
	Marketplace				Brands				Marketplace				Brands
Revenues, net	$	85,567			$	3,581,557			$	428,649			$	3,270,187
Cost of revenues (exclusive of depreciation and amortization shown below)		597				—				104,310				1,926
Cost of goods sold (exclusive of depreciation and amortization shown below)		1,344				2,245,274				412				2,072,862
Operating costs		42,282				1,258,056				1,490,789				2,098,113
Depreciation and amortization		—				—				269,261				35,025
Operating income/(loss)		41,344				78,227				(1,436,123	)			(937,739	)
Other expense, net		(15,000	)			(77,861	)			(22,629	)			—
Income tax expense		—				—				—				—
Income/(Loss) from discontinued operations, net of tax	$	26,344			$	366			$	(1,458,752	)		$	(937,739	)

Assets and liabilities of segments classified as held for sale in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, consist of the following:

	March 31, 2026			December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	189,325		$	353,355
Accounts receivable, net		83,342			72,372
Inventory		2,293,892			2,665,203
Prepaid expenses and other current assets		219,666			215,986
Intangible assets, net		1,072,762			1,072,762
Deposits		9,798			28,243
Total assets held for sale	$	3,868,785		$	4,407,921
Liabilities
Current liabilities:
Accounts payable	$	440,802		$	854,889
Accrued expenses		284,819			357,183
Deferred revenue		1,167,559			1,399,969
Total liabilities held for sale	$	1,893,180		$	2,612,041

The cash flows related to the discontinued operations have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows. The following table presents cash flow for the discontinued segments.

	For the Three Months Ended March 31,
		2026				2025
Net cash used in operating activities	$	(343,389	)		$	(873,842	)

Non-GAAP Financial Measures

The non-GAAP financial measures below have not been calculated in accordance with GAAP and should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We caution investors that non-GAAP financial information, by its nature, departs from traditional accounting conventions. Therefore, its use can make it difficult to compare our current results with our results from other reporting periods and with the results of other companies.

Our management uses these non-GAAP financial measures, in conjunction with GAAP financial measures, as an integral part of managing our business and to, among other things: (i) monitor and evaluate the performance of our business operations and financial performance; (ii) facilitate internal comparisons of the historical operating performance of our business operations; (iii) facilitate external comparisons of the results of our overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of our management team; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.

For the periods presented, we define non-GAAP operating loss as GAAP operating loss, adjusted to exclude, as applicable, certain expenses as presented in the table below:

	For the Three Months Ended March 31,
		2026				2025
Reconciliation:
GAAP operating loss	$	(6,133,648	)		$	(9,315,476	)
Non-GAAP adjustments:
Corporate costs not allocated to segments		(2,063,978	)			(1,971,372	)
Share-based compensation expense		(1,365,556	)			(3,622,845	)
Depreciation and amortization		(1,848,044	)			(906,824	)
Non-GAAP operating loss	$	(856,070	)		$	(2,814,435	)

	For the three months ended March 31,
		2026			2025
Revenue per headcount:	$	173,583		$	44,864

 

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Krispy Kreme Reports First Quarter 2026 Financial Results Demonstrating Significant Progress on Turnaround

Reduces net leverage, expands adjusted EBITDA margin, and delivers positive free cash flow

CHARLOTTE, N.C.–(BUSINESS WIRE)–
Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme”, “KKI”, or the “Company”) today reported financial results for the quarter ended March 29, 2026.

First Quarter 2026 Highlights (vs Q1 2025)

• Net revenue of $367.0 million declined 2.2%, reflecting the strategic closure of underperforming doors completed in the third quarter of 2025

• Systemwide sales of $485.3 million increased 0.7% in constant currency excluding sales attributable to the now-ended McDonald’s USA partnership

• GAAP net loss of $22.7 million improved $10.7 million

• Adjusted EBITDA of $33.1 million increased 38.0%

• Cash provided by operating activities of $20.2 million increased $41.0 million, free cash flow of $11.4 million increased $58.1 million

“The first quarter highlighted significant progress across every pillar of our turnaround plan. We reduced net leverage, increased adjusted EBITDA margin by 260 basis points, and delivered positive free cash flow. We also closed two refranchising transactions, expanded access to our fresh doughnuts in the U.S. quarter-over-quarter, and accelerated the outsourcing of U.S. logistics, which is now complete. Strong consumer demand during recent holidays such as Valentine’s Day and St. Patrick’s Day also demonstrated that we remain a top choice for gifting, sharing, and celebrating,” said Krispy Kreme CEO Josh Charlesworth.

“We expect this momentum to continue through 2026, driven by profitable growth in the U.S. with key strategic partners, higher digital sales, and international expansion. For the full year, we are issuing guidance for net revenue and adjusted EBITDA, updating our net leverage reduction target, and reaffirming our outlook for systemwide sales growth.”

Turnaround Plan

The Company’s comprehensive turnaround plan, announced in August 2025, is designed to deleverage the balance sheet and deliver sustainable, profitable growth. The four components of the plan, along with progress on each, are as follows:

1. Refranchising: Improve financial flexibility through refranchising international markets and the joint venture in the Western U.S.
   1. Refranchised the Company’s operations in Japan in March 2026.

   2. Refranchised the joint venture in the Western U.S. in March 2026.

2. Improving Return on Invested Capital: Reduce capital intensity by using existing assets and focusing on franchise development.
   1. Capital expenditures decreased 66% in the first quarter of 2026 compared to the year-ago period.

   2. Opened 26 shops during the first quarter of 2026, nearly all of which are franchised.

   3. Entered into a franchise agreement to expand into the Netherlands in late 2026.

3. Expanding Margins: Expand margins through greater operational efficiency, including outsourcing U.S. logistics.
   1. Consolidated adjusted EBITDA margin increased from 6.4% to 9% year-over-year, including a 480 basis point increase in the U.S. segment.

   2. Completed outsourcing of U.S. logistics in April 2026.

4. Driving Sustainable, Profitable Growth: Pursue U.S. growth based upon sustainable and profitable revenue streams.
   1. Added 276 doors in the U.S. with strategic partners during the first quarter of 2026 on top of the 200 doors added in the fourth quarter of 2025.

   2. Average U.S. revenue per door per week (“APD”) increased year-over-year 16.7% to $685.

Financial Highlights		Quarter Ended
$ in millions, except per share data		March 29, 2026				March 30, 2025				Change
GAAP:
Net revenue		$	367.0			$	375.2				(2.2	)%
Net loss		$	(22.7	)		$	(33.4	)			32.1	%
Net loss attributable to KKI		$	(22.8	)		$	(33.3	)			31.5	%
Diluted loss per share (1)		$	(0.16	)		$	(0.22	)		$	0.06
Non-GAAP (2):
Organic revenue growth			(2.6	)%			(1.0	)%		(160) bps
Adjusted net loss, diluted		$	(7.8	)		$	(8.8	)			12.0	%
Adjusted EBITDA		$	33.1			$	24.0				38.0	%
Adjusted EBITDA margin			9.0	%			6.4	%		260 bps
Adjusted EPS		$	(0.05	)		$	(0.05	)		$	—
(1) Reflects a change from the amount previously reported for the quarter ended March 30, 2025, from $(0.20) to $(0.22). See Note 2 to the Company’s Annual Report on Form 10-K for the year ended December 28, 2025.
(2) Non-GAAP figures. See “Key Performance Indicators and Non-GAAP Measures” and “Reconciliation of Non-GAAP Financial Measures.”

Key Operating Metrics		Quarter Ended
$ in millions		March 29, 2026				March 30, 2025				Change
Global points of access			15,125				17,982			(15.9	)%
Sales per hub (U.S.) trailing four quarters		$	5.1			$	4.8			6.3	%
Sales per hub (International) trailing four quarters		$	9.9			$	9.8			1.0	%
Digital sales as a percent of retail sales			18.9	%			16.9	%		200 bps

First Quarter 2026 Consolidated Results (vs Q1 2025)

Krispy Kreme’s results reflect continued progress in improving U.S. profitability and wider adoption of the capital-light international franchise model.

Net revenue was $367.0 million in the first quarter of 2026, a decline of 2.2% or $8.2 million. Organic revenue decreased by 2.6%, primarily driven by a global points of access decline of 2,857, or 15.9%, reflecting the strategic closure of underperforming doors, including approximately 2,400 doors attributable to the now-ended McDonald’s USA partnership, that was completed in the third quarter of 2025. Systemwide sales were $485.3 million in the first quarter of 2026, a decline of 1.0% in constant currency. Excluding the impact of sales from the McDonald’s USA doors in the year-ago period, systemwide sales increased 0.7%.

GAAP net loss improved to $22.7 million, compared to the prior year first quarter net loss of $33.4 million. GAAP loss per share, diluted improved to $0.16, compared to loss per share, diluted of $0.22 in the prior year first quarter.

Adjusted EBITDA increased 38.0% to $33.1 million. Adjusted EBITDA margin increased to 9.0% from 6.4%, positively impacted by productivity initiatives, SG&A savings, and the removal of costs relating to McDonald’s USA.

Adjusted net loss, diluted, was $7.8 million, up from a loss of $8.8 million in the prior year first quarter, and adjusted EPS was $(0.05), consistent with the prior year first quarter.

Diluted weighted average common shares outstanding were 172.0 million, compared to 170.3 million for the prior year first quarter.

First Quarter 2026 Segment Results (vs Q1 2025 unless otherwise stated)

U.S.: In the U.S. segment, net revenue declined by 6.3% to $221.6 million, primarily due to strategic door closures, which also led to an organic revenue decline of 4.0% year-over-year. APD increased year-over-year 16.7% year-over-year and 3.8% quarter-over-quarter to $685, driven by the addition of higher volume doors with strategic partners along with the exit of lower volume, unprofitable doors.

U.S. adjusted EBITDA increased by 60.6% to $25.5 million. Adjusted EBITDA margin increased 480 basis points year-over-year to 11.5%. These results demonstrated meaningful improvement as a result of the turnaround plan initiatives.

International: In the International segment, net revenue increased by 4.7% to $125.3 million with a foreign currency translation benefit of $10.5 million, partially offset by the refranchising of Japan. Organic revenue increased by 0.4%, primarily due to growth in Canada and Mexico.

International segment adjusted EBITDA decreased by 2.9% to $14.5 million driven by the refranchising of Japan. Adjusted EBITDA margin decreased by 90 basis points to 11.6% due to lower adjusted EBITDA in Australia and Canada.

Market Development: In the Market Development segment, net revenue increased by 6.4% to $20.2 million, including the impact of refranchising. Organic revenue declined by 4.3%, as growth in royalty revenue was more than offset by the timing of equipment sales in the quarter.

Market Development adjusted EBITDA increased by 5.3% to $11.6 million. Adjusted EBITDA margin decreased 60 basis points to 57.5%, driven by changes in the regional mix of product sales.

Balance Sheet and Capital Expenditures

During the first quarter of 2026, the Company invested $8.8 million, or 2.4% of net revenue, in capital expenditures, primarily in the U.S. to support infrastructure repairs and maintenance. Overall, the Company has reduced investment in building new hubs in favor of leveraging existing excess capacity for growth where available.

As of the end of the first quarter of 2026, the Company’s net leverage ratio was 5.5x, reflecting a 1.2x reduction compared to the fourth quarter of 2025. The Company had total available liquidity of $303 million as of March 29, 2026, which includes $74 million of cash and cash equivalents as well as undrawn capacity of $229 million under its credit facilities. The Company was in compliance with all financial covenants as of March 29, 2026.

Refranchising

On March 2, 2026, the Company closed its previously disclosed agreement for Unison Capital, Inc. to purchase its operations in Japan. Cash proceeds from this transaction were approximately $70 million and were used for debt pay down after transaction-related fees and expenses.

The Company expects one to two additional international refranchising deals in 2026 as it prioritizes identifying the right partners to maximize value and position itself for long-term profitable growth.

In the U.S., as previously disclosed, the Company reduced its ownership position in its Western U.S. joint venture (“WKS KK”) with its long-standing partner WKS Restaurant Group, to a 20% minority stake. The transaction resulted in the WKS KK franchisee owning more than 70 shops across the Western U.S. and servicing approximately 1,000 fresh delivery locations with strategic partners. The franchisee agreed to develop additional shops and plans to expand Krispy Kreme’s fresh delivery footprint over the next several years. The total amount payable to the Company in connection with the transaction is approximately $90 million, including $53 million in cash received at closing on March 23, 2026. Following transaction‑related fees and expenses, the cash proceeds were used to reduce net debt, with the remaining consideration structured as a note payable over time.

For fiscal 2025, approximately 25% of the Company’s systemwide sales came from franchise-operated locations. Through refranchising efforts, Krispy Kreme expects nearly 50% of systemwide sales to be generated by franchisees beginning fiscal 2027.

2026 Financial Outlook

The Company is providing the following annual financial guidance, which includes the impact of the refranchising transactions described above but not any future transactions:

• Net revenue of $1.25 billion to $1.35 billion (new)

• Systemwide sales up 2% to 4% year-over-year in constant currency

• Open at least 100 shops, nearly all of which are expected to be franchised

• Adjusted EBITDA⁽¹⁾ of $140 million to $150 million (new)

• Capital expenditures of $50 million to $60 million

• Free cash flow⁽¹⁾ of more than $15 million (updated)

• Net leverage ratio⁽¹⁾ below 5.5x (updated)

(1) Non-GAAP figures. The Company does not reconcile forward-looking non-GAAP measures. See “Key Performance Indicators and Non-GAAP Measures.”

Definitions

The following definitions apply to terms used throughout this press release:

• Systemwide Sales: Reflects global sales of all Krispy Kreme products, whether operated by the Company or franchisees, excluding mix, equipment, and royalty revenue. Sales from franchisees are reported to the Company by such franchisees and are not included in Company revenues. Growth in systemwide sales represents the change in one period from the same period in the prior year on a constant currency basis. The Company believes systemwide sales information is important because it is indicative of the health of the Company’s brand and aids in understanding the Company’s financial performance.
• Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define Global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, and fresh delivery doors (which includes Krispy Kreme branded cabinets and merchandising units within high traffic grocery and convenience stores, quick service or fast casual restaurants, club memberships, and drug stores), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitor global points of access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type.
• Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any global point of access. We define hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the applicable reporting period.
• Hubs with Spokes: Reflects hubs currently producing fresh doughnuts for other Fresh Shops, Carts and Food Trucks, or fresh delivery doors, and excludes hubs not currently producing fresh doughnuts for other shops, Carts and Food Trucks, or fresh delivery doors.
• Sales Per Hub: Sales per hub equals fresh revenues from hubs with spokes, divided by the average number of hubs with spokes at the end of each of the five most recent quarters.
• Fresh Revenues from Hubs with Spokes: Fresh revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, fresh delivery doors, and digital channels and excludes sales from Cookie Bakeries and Branded Sweet Treats (through the date of the Insomnia Cookies Holdings, LLC (“Insomnia Cookies”) deconsolidation and Branded Sweet Treats exit, respectively). Fresh revenues from hubs with spokes equals the fresh revenues derived from hubs with spokes.
• Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment.

Conference Call

Krispy Kreme will host a public conference call and webcast at 8:30 AM Eastern Time today to discuss its results for the first quarter 2026. A slide presentation will be available prior to the start time on the investor relations section of the Company’s website at investors.krispykreme.com.

To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay of the webcast will be available on the website within 24 hours after the call. This earnings press release and related materials will also be available on the investor relations section of the Company’s website.

About Krispy Kreme

Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in more than 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.X.com/KrispyKreme.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by use of forward-looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “guidance,” “outlook,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “pursue,” “strive,” “look forward,” or the negative of these words, comparable terminology, or other references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included in this press release. We consider the assumptions and estimates on which forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from any material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents;our ability to execute our business strategy, including our turnaround plan and growth through international development with strategic partners and profitable expansion of our fresh delivery and digital channels; our ability to realize the anticipated benefits from past or potential future strategic transactions (including refranchising); failure by our franchisees, subfranchisees, or third-party service providers to operate effectively and in compliance with our standards and applicable law; any harm to our reputation or brand image; negative impacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends;our ability to open new and maintain existing shops and points of access both domestically and internationally; disruptions to our and our franchisees’ supply chain, including the loss of or failure to perform by single-source or limited suppliers, vendors, distributors, or manufacturers; our significant indebtedness and our ability to meet the financial and other covenants under our credit facilities; changes in the cost of raw materials and fuel or other commodities, including due to import and export requirements (including tariffs), inflation, fluctuations in foreign exchange rates, or heightened geopolitical tensions (including the recent Iran conflict); our ability to recruit and retain key personnel; failure to develop or maintain effective internal control over financial reporting or disclosure controls and procedures; adverse regulatory actions or publicity concerning food or occupational safety, food quality, health, and other issues or regulatory investigations, enforcement actions, or material litigation; and other risks and uncertainties described under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission (the “SEC”) and in other filings the Company makes from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law.

Key Performance Indicators and Non-GAAP Measures

This press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP and operating measures include organic revenue growth/(decline), adjusted EBITDA, adjusted EBITDA margin, adjusted net loss, diluted, adjusted EPS, free cash flow, net debt, fresh revenue from hubs with spokes, sales per hub and systemwide sales. We believe these non-GAAP and operating measures are useful in evaluating our operating performance. Management believes these measures are important indicators of operations because they exclude items that may not be indicative of our core operating results and provide a better baseline for analyzing trends in our underlying business, and they are consistent with how business performance is planned, reported and assessed internally by management and the Company’s Board of Directors. We monitor the key business metrics and non-GAAP metrics set forth herein to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. These non-GAAP and operating measures are not standardized, and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, the non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC and not to rely on any single financial measure.

The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty or without unreasonable effort non-recurring items, such as those reflected in our reconciliation of historic numbers. The variability of these items is unpredictable and may have a significant impact on the forward-looking non-GAAP financial measures presented.

See “Reconciliation of Non-GAAP Financial Measures” below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

Krispy Kreme, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share amounts)
	Quarter Ended
	March 29, 2026 (13 weeks)				March 30, 2025 (13 weeks)
Net revenues
Product sales	$	357,438			$	366,479
Royalties and other revenues		9,596				8,705
Total net revenues		367,034				375,184
Product and distribution costs		88,330				90,736
Operating expenses		188,106				198,843
Selling, general and administrative expense		58,033				59,405
Marketing expenses		10,119				10,239
Pre-opening costs		194				929
Other asset impairments		1,888				162
Gain on refranchising, net		(8,885	)			—
Other expenses, net		759				1,238
Depreciation and amortization expense		32,115				33,901
Operating loss		(3,625	)			(20,269	)
Interest expense, net		15,624				16,196
Other non-operating income, net		(159	)			(393	)
Loss before income taxes		(19,090	)			(36,072	)
Income tax expense/(benefit)		3,583				(2,667	)
Net loss		(22,673	)			(33,405	)
Net income/(loss) attributable to noncontrolling interest		111				(121	)
Net loss attributable to Krispy Kreme, Inc.	$	(22,784	)		$	(33,284	)
Net loss per share:
Common stock — Basic	$	(0.16	)		$	(0.22	)
Common stock — Diluted	$	(0.16	)		$	(0.22	)
Weighted average shares outstanding:
Basic		172,019				170,291
Diluted		172,019				170,291

Krispy Kreme, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
	As of
	(Unaudited) March 29, 2026				December 28, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	74,218			$	42,390
Restricted cash		490				501
Accounts receivable, net		53,462				61,611
Inventories		27,218				26,877
Taxes receivable		10,983				10,854
Current assets held for sale		1,886				13,294
Prepaid expense and other current assets		18,606				18,927
Total current assets		186,863				174,454
Property and equipment, net		383,289				460,935
Goodwill, net		669,271				712,264
Other intangible assets, net		733,102				797,749
Operating lease right of use assets, net		337,452				395,523
Investments in unconsolidated entities		22,084				7,413
Noncurrent assets held for sale		—				31,056
Other assets		54,494				13,565
Total assets	$	2,386,555			$	2,592,959
LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	58,716			$	65,977
Current operating lease liabilities		44,739				51,213
Accounts payable		130,713				134,384
Accrued liabilities		120,637				99,805
Current liabilities held for sale		—				13,535
Structured payables		91,169				92,366
Total current liabilities		445,974				457,280
Long-term debt, less current portion		829,653				911,852
Noncurrent operating lease liabilities		341,276				395,895
Deferred income taxes, net		97,203				96,236
Noncurrent liabilities held for sale		—				11,816
Other long-term obligations and deferred credits		39,186				42,919
Total liabilities		1,753,292				1,915,998
Commitments and contingencies
Mezzanine equity:
Redeemable noncontrolling interest		—				24,181
Total mezzanine equity		—				24,181
Shareholders’ equity:
Common stock, $0.01 par value; 300,000 shares authorized as of both March 29, 2026 and December 28, 2025; 172,280 and 171,555 shares issued and outstanding as of March 29, 2026 and December 28, 2025, respectively		1,721				1,716
Additional paid-in capital		1,471,361				1,473,644
Shareholder note receivable		(1,306	)			(1,791	)
Accumulated other comprehensive income/(loss), net of income tax		4,180				(2,059	)
Retained deficit		(844,170	)			(821,387	)
Total shareholders’ equity attributable to Krispy Kreme, Inc.		631,786				650,123
Noncontrolling interest		1,477				2,657
Total shareholders’ equity		633,263				652,780
Total liabilities, mezzanine equity, and shareholders’ equity	$	2,386,555			$	2,592,959

Krispy Kreme, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
	Quarter Ended
	March 29, 2026 (13 weeks)				March 30, 2025 (13 weeks)
CASH FLOWS PROVIDED BY/(USED FOR) OPERATING ACTIVITIES:
Net loss	$	(22,673	)		$	(33,405	)
Adjustments to reconcile net loss to net cash provided by/(used for) operating activities:
Depreciation and amortization expense		32,115				33,901
Deferred and other income taxes		(709	)			(10,668	)
Other asset impairments and lease termination charges		1,889				162
Loss on disposal of property and equipment		458				189
Gain on refranchising, net		(8,885	)			—
Share-based compensation		4,639				2,603
Change in accounts and notes receivable allowances		434				202
Inventory write-off		(14	)			848
Other		533				1,225
Change in operating assets and liabilities, excluding business acquisitions and divestitures, and foreign currency translation adjustments		12,379				(15,891	)
Net cash provided by/(used for) operating activities		20,166				(20,834	)
CASH FLOWS PROVIDED BY/(USED FOR) INVESTING ACTIVITIES:
Purchase of property and equipment		(8,784	)			(25,897	)
Proceeds from disposals of assets		24				—
Net proceeds from refranchising transactions		111,411				—
Purchase of minority interests		(2,600	)			—
Other investing activities		—				86
Net cash provided by/(used for) investing activities		100,051				(25,811	)
CASH FLOWS (USED FOR)/PROVIDED BY FINANCING ACTIVITIES:
Proceeds from the issuance of debt		72,750				182,500
Repayment of long-term debt and lease obligations		(159,679	)			(115,622	)
Payment of financing costs		—				—
Proceeds from structured payables		57,398				118,908
Payments on structured payables		(58,650	)			(142,868	)
Capital contribution by shareholders, net of loans issued		130				—
Distribution to shareholders		—				(5,961	)
Payments for repurchase and retirement of common stock		(402	)			(123	)
Distribution to noncontrolling interest		350				(36	)
Net cash (used for)/provided by financing activities		(88,103	)			36,798
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(297	)			(301	)
Net increase/(decrease) in cash, cash equivalents and restricted cash		31,817				(10,148	)
Cash, cash equivalents and restricted cash at beginning of period		42,891				29,315
Cash, cash equivalents and restricted cash at end of period	$	74,708			$	19,167
Net cash provided by/(used for) operating activities	$	20,166			$	(20,834	)
Less: Purchase of property and equipment		(8,784	)			(25,897	)
Free cash flow	$	11,382			$	(46,731	)

Krispy Kreme, Inc.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(in thousands, except per share amounts)

We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBITDA, both on a consolidated and at the segment level, is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects adjusted EBITDA as a percentage of net revenues.

We define “Adjusted Net Loss, Diluted” as net loss attributable to common shareholders, adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent, or non-core income and expense items. “Adjusted EPS” is adjusted net loss, diluted converted to a per share amount.

Adjusted EBITDA, adjusted EBITDA margin, adjusted net loss, diluted, and adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally.

	Quarter Ended
(in thousands)	March 29, 2026				March 30, 2025
Net loss	$	(22,673	)		$	(33,405	)
Interest expense, net		15,624				16,196
Income tax expense/(benefit)		3,583				(2,667	)
Share-based compensation		4,639				2,603
Employer payroll taxes related to share-based compensation		17				166
Other non-operating income, net (1)		(159	)			(393	)
Strategic initiatives (2)		7,200				2,353
Acquisition and integration expenses (3)		—				71
New market penetration expenses (4)		—				75
Shop closure expenses, net (5)		32				272
Restructuring and severance expenses (6)		394				108
Gain on refranchising (7)		(8,885	)			—
Other (8)		1,209				4,700
Amortization of acquisition related intangibles (9)		7,808				7,661
Depreciation expense and amortization of right of use assets		24,307				26,240
Consolidated Adjusted EBITDA	$	33,096			$	23,980

	Quarter Ended
(in thousands)	March 29, 2026				March 30, 2025
Segment Adjusted EBITDA:
U.S.	$	25,549			$	15,911
International		14,472				14,897
Market Development		11,634				11,047
Corporate		(18,559	)			(17,875	)
Consolidated Adjusted EBITDA	$	33,096			$	23,980

	Quarter Ended
(in thousands, except per share amounts)	March 29, 2026				March 30, 2025
Net loss	$	(22,673	)		$	(33,405	)
Share-based compensation		4,639				2,603
Employer payroll taxes related to share-based compensation		17				166
Other non-operating income, net (1)		(159	)			(393	)
Strategic initiatives (2)		7,200				2,353
Acquisition and integration expenses (3)		—				71
New market penetration expenses (4)		—				75
Shop closure expenses, net (5)		32				272
Restructuring and severance expenses (6)		394				108
Gain on refranchising (7)		(8,885	)			—
Other (8)		1,209				4,700
Amortization of acquisition related intangibles (9)		7,808				7,661
Tax impact of adjustments (10)		3,424				6,830
Tax specific adjustments (11)		(675	)			—
Net (income)/loss attributable to noncontrolling interest		(111	)			121
Adjusted net loss attributable to common shareholders – Basic	$	(7,780	)		$	(8,838	)
Additional income attributed to noncontrolling interest due to subsidiary potential common shares		—				2
Adjusted net loss attributable to common shareholders – Diluted	$	(7,780	)		$	(8,836	)
Basic weighted average common shares outstanding		172,019				170,291
Dilutive effect of outstanding common stock options, RSUs, and PSUs	—					—
Diluted weighted average common shares outstanding		172,019				170,291
Adjusted net loss per share attributable to common shareholders:
Basic	$	(0.05	)		$	(0.05	)
Diluted	$	(0.05	)		$	(0.05	)

(1)	Primarily foreign translation gains and losses in each period. The quarter ended March 30, 2025 also consists of equity method income from Insomnia Cookies following the divestiture of a controlling interest in Insomnia Cookies during fiscal 2024.
(2)	The quarter ended March 29, 2026 consists primarily of $4.2 million of costs associated with the evaluation and execution of refranchising certain equity markets as well as $2.9 million in costs associated with the transition to third party logistics in the U.S., of that amount $1.6 million is related to non-cash impairments. The quarter ended March 30, 2025 consists primarily of $2.4 million of costs associated with preparing for and executing the U.S. national expansion (including McDonald’s).
(3)	Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period.
(4)	Consists of start-up costs associated with entry into new countries in which the Company’s brands had not previously operated, including Brazil and Spain.
(5)	Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment.
(6)	The quarter ended March 29, 2026  and the quarter ended March 30, 2025 consist primarily of costs associated with restructuring of the U.S. and U.K. businesses.
(7)	Includes gains and losses on the deconsolidation of assets and liabilities associated with the refranchising of Krispy Kreme shops.
(8)	The quarter ended March 29, 2026 consists primarily of $0.8 million of legal fees related to shareholder derivative litigation. The quarter ended March 30, 2025 consists primarily of $4.4 million in costs related to remediation of the 2024 cybersecurity incident, including fees for cybersecurity experts and other advisors.
(9)	Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations.
(10)	Tax impact of adjustments calculated applying the applicable statutory rates. The quarters ended March 29, 2026 and March 30, 2025 also include the impact of disallowed executive compensation expense.
(11)	Consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations.

Krispy Kreme, Inc.
Segment Reporting (Unaudited)
(in thousands, except percentages or otherwise stated)
	Quarter Ended
	March 29, 2026			March 30, 2025
Net revenues:
U.S.	$	221,550		$	236,544
International		125,258			119,635
Market Development		20,226			19,005
Total net revenues	$	367,034		$	375,184

Organic revenue growth/(decline) measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenue growth/(decline)” as the growth/(decline) in revenues, excluding (i) the impact of revenues of acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of shops through refranchising, and (v) the impact of revenues generated during the 53^rd week for those fiscal years that have a 53^rd week based on our fiscal calendar.

Q1 2026 Organic Revenue (in thousands, except percentages)	U.S.				International				Market Development				Total Company
Total net revenues in first quarter of fiscal 2026	$	221,550			$	125,258			$	20,226			$	367,034
Total net revenues in first quarter of fiscal 2025		236,544				119,635				19,005				375,184
Total net revenues (decline)/growth		(14,994	)			5,623				1,221				(8,150	)
Total net revenues (decline)/growth %		-6.3	%			4.7	%			6.4	%			-2.2	%
Less: Impact of refranchising		(5,860	)			(5,349	)			2,127				(9,082	)
Adjusted net revenues in first quarter of fiscal 2025		230,684				114,286				21,132				366,102
Adjusted net revenue (decline)/growth		(9,134	)			10,972				(906	)			932
Adjusted net revenue (decline)/growth %		(4.0	)%			9.6	%			(4.3	)%			0.3	%
Impact of foreign currency translation		—				(10,501	)			—				(10,501	)
Organic revenue (decline)/growth	$	(9,134	)		$	471			$	(906	)		$	(9,569	)
Organic revenue (decline)/growth %		-4.0	%			0.4	%			-4.3	%			-2.6	%

Fresh revenues from hubs with spokes and sales per hub are defined above.

	Trailing Four Quarters Ended				Fiscal Year Ended
(in thousands, unless otherwise stated)	March 29, 2026				December 28, 2025				December 29, 2024
U.S.:
Revenues	$	898,056			$	913,050			$	1,058,736
Non-fresh revenues (1)		(2,577	)			(2,454	)			(3,161	)
Fresh revenues from Insomnia Cookies and hubs without spokes (2)		(139,896	)			(154,151	)			(307,665	)
Fresh revenues from hubs with spokes		755,583				756,445				747,910
Sales per hub (millions)		5.1				4.7				4.9
International:
Fresh revenues from hubs with spokes (3)	$	540,711			$	535,088			$	519,102
Sales per hub (millions) (4)		9.9				9.7				9.9

(1)	Includes licensing royalties from customers for use of the Krispy Kreme brand.
(2)	Includes Insomnia Cookies revenues (through the date of deconsolidation) and fresh revenues generated by hubs without spokes.
(3)	Total International net revenues is equal to fresh revenues from hubs with spokes for that business segment.
(4)	International sales per hub comparative data has been restated in constant currency based on current exchange rates.

Krispy Kreme, Inc.
Global Points of Access (Unaudited)
	Global Points of Access
	Quarter Ended				Fiscal Year Ended
	March 29, 2026		March 30, 2025		December 28, 2025
U.S.: (1)
Hot Light Theater Shops	176		238		235
Fresh Shops	46		67		68
Fresh Delivery Doors(2)	5,949		10,186		7,160
Total	6,171		10,491		7,463
International: (1)
Hot Light Theater Shops	47		48		52
Fresh Shops	448		518		527
Carts, Food Trucks, and Other(3)	17		17		18
Fresh Delivery Doors	3,630		4,469		4,225
Total	4,142		5,052		4,822
Market Development: (1)
Hot Light Theater Shops	177		108		113
Fresh Shops	1,246		1,104		1,130
Carts, Food Trucks, and Other(3)	30		30		29
Fresh Delivery Doors	3,359		1,197		1,637
Total	4,812		2,439		2,909
Total Global Points of Access (as defined)	15,125		17,982		15,194
Total Hot Light Theater Shops	400		394		400
Total Fresh Shops	1,740		1,689		1,725
Total Shops	2,140		2,083		2,125
Total Carts, Food Trucks, and Other	47		47		47
Total Fresh Delivery Doors (2)	12,938		15,852		13,022
Total Global Points of Access (as defined)	15,125		17,982		15,194

(1)	During the first quarter of fiscal 2026, certain points of access moved from the U.S. and International segments to Market Development.
(2)	During fiscal 2025 we exited approximately 2,400 McDonald’s USA fresh delivery doors related to termination of the Business Relationship Agreement with McDonald’s USA.
(3)	Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of access in this category are primarily found in international locations in airports and train stations.

Krispy Kreme, Inc.
Global Hubs (Unaudited)
	Hubs
	Quarter Ended				Fiscal Year Ended
	March 29, 2026		March 30, 2025		December 28, 2025
U.S.: (1)
Hot Light Theater Shops (2)	160		234		223
Doughnut Factories	6		6		6
Total	166		240		229
Hubs with Spokes	106		162		159
Hubs without Spokes	60		78		70
International: (1)
Hot Light Theater Shops (2)	41		39		43
Doughnut Factories	11		14		14
Total	52		53		57
Hubs with Spokes	52		53		57
Market Development: (1)
Hot Light Theater Shops (2)	171		106		111
Doughnut Factories	29		27		26
Total	200		133		137
Total Hubs (3)	418		426		423

(1)	During the first quarter of fiscal 2026, certain hubs moved from the U.S. and International segments to Market Development.
(2)	Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location.
(3)	The decrease in total Hubs is driven by Hub optimization in the U.S.

Krispy Kreme, Inc.
Net Debt and Leverage (Unaudited)
(in thousands, except leverage ratio)
	As of
	(Unaudited) March 29, 2026				December 28, 2025
Current portion of long-term debt	$	58,716			$	65,977
Long-term debt, less current portion		829,653				911,852
Total long-term debt, including debt issuance costs		888,369				977,829
Add back: Debt issuance costs		2,569				2,904
Total long-term debt, excluding debt issuance costs		890,938				980,733
Less: Cash and cash equivalents		(74,218	)			(42,390	)
Net debt	$	816,720			$	938,343
Adjusted EBITDA – trailing four quarters		149,369				140,253
Net leverage ratio	5.5 x				6.7 x

Category: Financial News

Source: Krispy Kreme

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507816117/en/

Investor Relations and Media

ICR for Krispy Kreme, Inc.

[email protected]

KEYWORDS: North Carolina United States North America

INDUSTRY KEYWORDS: Food/Beverage Retail

MEDIA:

Posted on May 7, 2026 6:49 am

CHIMERA INVESTMENT CORPORATION EARNINGS SUPPORTS $0.45 DIVIDEND IN VOLATILE MARKETS

CHIMERA INVESTMENT CORPORATION EARNINGS SUPPORTS $0.45 DIVIDEND IN VOLATILE MARKETS

NEW YORK–(BUSINESS WIRE)–
Chimera Investment Corporation (NYSE: CIM) today announced its financial results for the first quarter ended March 31, 2026.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260507696662/en/

Executive Summary:

Metric	Value
Q1 2026 GAAP Net Income (Loss)	$(65) million, or $(0.78) per diluted common share
Earnings Available for Distribution (1)	$46 million, or $0.54 per diluted common share
GAAP Book Value per common share	$18.34 per common share
Economic Return (2)	(4.6)%
(1) Earnings available for distribution per adjusted diluted common share is a non-GAAP measure. See additional discussion on page 6.
(2) Our economic return is measured by the change in GAAP book value per common share plus common stock dividend.

Business Highlights:

• Generated strong Earnings Available for Distribution from both Investment Portfolio and Residential Origination segments.

• Portfolio optimization, designed to enhance earnings power, accounted for nearly two-thirds of the change in book value.

Investment Portfolio Segment

• Redeemed 8 securitizations collateralized by $1.5 billion of seasoned reperforming loans.
  • Sold $1.2 billion of seasoned reperforming loans.

  • Retained $287 million in our Loans Held for Investment.

  • Redeployed $195 million of capital into Agency RMBS.

• Committed to purchase $187 million of newly originated loans from HomeXpress to launch a securitization program.

Residential Origination Segment

• Originated volume of $884 million, up 39% vs prior year period¹ demonstrating platform scale and capacity.

• $11 million of EBTDA representing an annualized EBTDA ROE of 16.8%.

• Product mix remained stable with consumer Non-QM representing 39%, Investor Loans 57%, and QM at 4%.

“We generated solid earnings across the business and fully covered our dividend, despite the volatile environment,” said Phillip J. Kardis II, President and CEO. “We continued to reposition the portfolio toward higher-return opportunities. With flexibility in the business platform and balance sheet, along with our origination pipeline, we are well-positioned as we move through the year.”

1 Reflects HomeXpress standalone results. HomeXpress was acquired on October 1, 2025 and is not included in Chimera’s consolidated results prior to that date.

First Quarter 2026 Earnings Call

Chimera Investment Corporation will host a conference call and live audio webcast to discuss the results at 8:30 AM ET on Thursday, May 7, 2026.

Call-in Number:

• U.S. Toll Free: (866) 604-1613

• International: (201) 689-7810

• Webcast: https://www.chimerareit.com/news-events/ir-calendar

Conference Call Replay:

• U.S. Toll Free: (877) 660-6853

• International: (201) 612-7415

• Conference ID: 13759190

• A replay of the call will be available for a limited time and can be accessed via the dial-in numbers above or through the webcast archive on the company’s website.

Other Information

Chimera is a diversified real estate company that invests in, originates, and manages primarily residential real estate assets. The assets we may invest in for ourselves and manage for others through our wholly-owned subsidiary Palisades Advisory Services, LLC, include residential mortgage loans, Non-Agency RMBS, Agency RMBS, RTLs, Investor Loans, MSRs and other real estate-related assets such as Agency CMBS, junior liens and HELOCs, equity appreciation rights, and reverse mortgages. Also, through our wholly-owned subsidiary, HomeXpress Mortgage Corp., we primarily originate non-QM residential mortgage loans (both consumer loans and Investor Loans) as well as a smaller amount of QM residential mortgage loans. Chimera was incorporated in Maryland on June 1, 2007 and started trading on the NYSE in November 2007, and is structured as an internally managed real estate investment trust, or REIT, for U.S. federal income tax purposes.

CHIMERA INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands, except share and per share data)
	(Unaudited)
	March 31, 2026				December 31, 2025
Assets:
Cash and cash equivalents	$	476,218			$	278,582
Non-Agency RMBS, at fair value (net of allowance for credit losses of $46 million and $43 million, respectively)		756,055				817,280
Agency MBS, at fair value		5,228,464				3,463,485
Loans held for investment, at fair value		8,227,800				9,803,615
Loans held-for-sale, at fair value		700,597				896,117
Accrued interest receivable		76,362				78,691
Other assets		438,624				408,291
Interests in MSR financing receivables		39,773				37,294
Derivatives, at fair value, net		35,486				25,187
Total assets (1)	$	15,979,379			$	15,808,542
Liabilities:
Secured financing agreements ($8.2 billion and $7.4 billion pledged as collateral, respectively, and includes $292 million and $299 million at fair value, respectively)	$	6,987,171			$	6,031,182
Securitized debt, collateralized by Non-Agency RMBS ($203 million and $210 million pledged as collateral, respectively)		65,035				66,579
Securitized debt at fair value, collateralized by Loans held for investment ($7.6 billion and $9.4 billion pledged as collateral, respectively)		5,430,192				6,721,302
Long term debt		252,040				251,528
Payable for investments purchased		611,501				3,267
Accrued interest payable		36,618				43,032
Dividends payable		40,974				34,891
Accounts payable and other liabilities		92,089				82,308
Derivatives, at fair value, net		—				1,759
Total liabilities (1)	$	13,515,620			$	13,235,848
Stockholders’ Equity:
Preferred Stock, par value of $0.01 per share, 100,000,000 shares authorized:
8.00% Series A cumulative redeemable: 5,800,000 shares issued and outstanding, respectively ($145,000 liquidation preference)	$	58			$	58
8.00% Series B cumulative redeemable: 13,000,000 shares issued and outstanding, respectively ($325,000 liquidation preference)		130				130
7.75% Series C cumulative redeemable: 10,400,000 shares issued and outstanding, respectively ($260,000 liquidation preference)		104				104
8.00% Series D cumulative redeemable: 8,000,000 shares issued and outstanding, respectively ($200,000 liquidation preference)		80				80
Common stock: par value $0.01 per share; 166,666,667 shares authorized, 83,645,571 and 83,402,145 shares issued and outstanding, respectively		836				834
Additional paid-in-capital		4,432,076				4,429,009
Accumulated other comprehensive income		137,737				146,295
Cumulative earnings		4,527,700				4,571,610
Cumulative distributions to stockholders		(6,634,962	)			(6,575,426	)
Total stockholders’ equity	$	2,463,759			$	2,572,694
Total liabilities and stockholders’ equity	$	15,979,379			$	15,808,542
(1) The Company’s Consolidated Statements of Financial Condition include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Chimera Investment Corporation). As of March 31, 2026, and December 31, 2025, total assets of consolidated VIEs were $7,524,605 and $9,215,343, respectively, and total liabilities of consolidated VIEs were $5,316,717 and $6,533,891, respectively.

CHIMERA INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
(Unaudited)
	For the Quarters Ended
	March 31, 2026				March 31, 2025
Net interest income:
Interest income (1)	$	219,295			$	190,616
Interest expense (2)		144,293				121,397
Net interest income		75,002				69,219
Increase in provision for credit losses		2,824				3,387
Other income (losses):
Net unrealized gains (losses) on derivatives		18,150				(6,469	)
Realized gains on derivatives		2,870				82
Periodic interest on derivatives, net		1,834				4,135
Net gains (losses) on derivatives		22,854				(2,252	)
Investment management and advisory fees		7,165				8,936
Interest income from investment in MSR financing receivables, net (3)		2,311				—
Net unrealized gains (losses) on financial instruments at fair value		(37,536	)			128,895
Net realized losses on sales of investments		(40,428	)			—
Gains (losses) on extinguishment of debt		(38,858	)			2,122
Other investment losses		(910	)			(417	)
Gain on origination and sale of loans, net		21,385				—
Total other income (losses)		(64,017	)			137,284
Other expenses:
Compensation and benefits (4)		26,706				13,085
General and administrative expenses		12,161				6,907
Servicing and asset manager fees		5,522				7,431
Depreciation, amortization, and impairment expense		9,649				951
Transaction expenses		98				5,688
Total other expenses		54,136				34,062
Income (loss) before income taxes		(45,974	)			169,052
Income tax (benefit) expense		(2,064	)			1,755
Net income (loss)	$	(43,910	)		$	167,297
Dividends on preferred stock		21,097				21,357
Net income (loss) available to common shareholders	$	(65,007	)		$	145,940
Net income (loss) per share available to common shareholders:
Basic	$	(0.78	)		$	1.79
Diluted	$	(0.78	)		$	1.77
Weighted average number of common shares outstanding:
Basic		83,661,145				81,350,497
Diluted		83,661,145				82,394,218
(1) Includes interest income of consolidated VIEs of $129,069 and $144,402 for the quarters ended March 31, 2026 and 2025 respectively.
(2) Includes interest expense of consolidated VIEs of $63,879 and $69,651 for the quarters ended March 31, 2026 and 2025, respectively.
(3) Includes interest income from investment in MSR financing receivables of a consolidated VIE of $1,395 for the quarter ended March 31, 2026. The Company did not hold any interests in MSR financing receivables for the quarter ended March 31, 2025.
(4) Includes a related-party, non-cash imputed compensation expense from the Palisades Acquisition of $341 during both quarters ended March 31, 2026 and 2025, respectively.

CHIMERA INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(dollars in thousands, except share and per share data)
(Unaudited)
	For the Quarters Ended
	March 31, 2026				March 31, 2025
Comprehensive income (loss):
Net income (loss)	$	(43,910	)		$	167,297
Other comprehensive loss:
Unrealized losses on available-for-sale securities, net		(11,698	)			(1,679	)
Reclassification adjustment for net losses included in net income for other-than-temporary credit impairment losses		3,140				—
Other comprehensive loss	$	(8,558	)		$	(1,679	)
Comprehensive income (loss) before preferred stock dividends	$	(52,468	)		$	165,618
Dividends on preferred stock	$	21,097			$	21,357
Comprehensive income (loss) available to common stock shareholders	$	(73,565	)		$	144,261

Earnings available for distribution

Earnings available for distribution is a non-GAAP measure and is defined as GAAP net income (loss) excluding (i) unrealized gains or losses on financial instruments carried at fair value with changes in fair value recorded in earnings, (ii) realized gains or losses on the sales of investments, (iii) gains or losses on the extinguishment of debt, (iv) changes in the provision for credit losses, (v) unrealized gains or losses on derivatives, (vi) realized gains or losses on derivatives, (vii) transaction expenses, (viii) stock compensation expenses for retirement eligible awards, (ix) amortization of intangibles, depreciation and impairment expenses, net of any tax impact (x) non-cash imputed compensation expense related to business acquisitions, and (xi) other gains and losses on equity investments.

Non-cash imputed compensation expense reflects the portion of the consideration paid in the Palisades Acquisition that pursuant to the seller’s contractual arrangements is distributable to the seller’s legacy employees (who are now our employees) and that for GAAP purposes is recorded as non-cash imputed compensation expense with an offsetting entry recorded as non-cash contribution from a related party to our shareholders’ equity. The excluded amounts do not include any normal, recurring compensation paid to our employees.

Transaction expenses are primarily comprised of costs only incurred at the time of execution of our securitizations, certain structured secured financing agreements, and business combination transactions and include costs such as underwriting fees, legal fees, diligence fees, accounting fees, bank fees and other similar transaction-related expenses. These costs are all incurred prior to or at the execution of the transaction and do not recur. Recurring expenses, such as servicing fees, custodial fees, trustee fees and other similar ongoing fees are not excluded from Earnings available for distribution. We believe that excluding these costs is useful to investors as it is generally consistent with our peer group’s treatment of these costs in their non-GAAP measures presentation, mitigates period to period comparability issues tied to the timing of securitization and structured finance transactions, and is consistent with the accounting for the deferral of debt issuance costs prior to the fair value election option made by us. In addition, we believe it is important for investors to review this metric which is consistent with how management internally evaluates the performance of the Company. Stock compensation expense charges incurred on awards to retirement eligible employees is reflected as an expense over a vesting period (generally 36 months) rather than reported as an immediate expense.

We may hold long and/or short positions in TBA securities through transactions commonly referred to as “dollar roll” transactions. Under U.S. GAAP, these transactions are accounted for as derivatives and are carried at fair value. Changes in the fair value of TBA positions consist of two components: (i) drop income (expense) and (ii) mark-to-market adjustments. For financial statement presentation purposes, drop income (expense) is reported within Periodic interest on derivatives, net, while mark-to-market adjustments are reported within Net unrealized gains (losses) on derivatives. Together with any realized gains and losses, these amounts are included in Net gains (losses) on derivatives in our Consolidated Statements of Operations. Management includes drop income (expense) in EAD because it views drop income (expense) as the economic equivalent of net interest income on the underlying Agency securities, reflecting the difference between the implied interest earned and the implied financing cost over the period from trade date to settlement date. This treatment is consistent with how management evaluates the Company’s investment performance and how we believe our investors analyze our investment performance.

We view Earnings available for distribution as one measure of our investment portfolio’s ability to generate income for distribution to common stockholders. Earnings available for distribution is one of the metrics, but not the exclusive metric, that our Board of Directors uses to determine the amount, if any, of dividends on our common stock. Other metrics that our Board of Directors may consider when determining the amount, if any, of dividends on our common stock include, among others, REIT taxable income, dividend yield, book value, cash generated from the portfolio, reinvestment opportunities and other cash needs. To maintain our qualification as a REIT, U.S. federal income tax law generally requires that we distribute at least 90% of our REIT taxable income (subject to certain adjustments) annually. Earnings available for distribution, however, is different than REIT taxable income. For example, differences between Earnings available for distribution and REIT taxable income generally may result from whether the REIT uses mark-to-market accounting for GAAP purposes, accretion of market discount or OID and amortization of premium, and differences in the treatment of securitizations for GAAP and tax purposes, among other items. Further, REIT taxable income generally does not include earnings of our domestic TRSs unless such income is distributed from current or accumulated earnings and profits. The determination of whether we have met the requirement to distribute at least 90% of our annual REIT taxable income is not based on Earnings available for distribution and Earnings available for distribution should not be considered as an indication of our REIT taxable income, a guaranty of our ability to pay dividends, or as a proxy for the amount of dividends we may pay. We believe Earnings available for distribution helps us and investors evaluate our financial performance period over period without the impact of certain non-recurring transactions. Therefore, Earnings available for distribution should not be viewed in isolation and is not a substitute for or superior to net income or net income per basic share computed in accordance with GAAP. In addition, our methodology for calculating Earnings available for distribution may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and accordingly, our Earnings available for distribution may not be comparable to the Earnings available for distribution reported by other REITs.

The following table provides GAAP measures of net income and net income per diluted share available to common stockholders for the periods presented and details with respect to reconciling the line items to Earnings available for distribution and related per average diluted common share amounts. Earnings available for distribution is presented on an adjusted dilutive shares basis.

	For the Quarters Ended
	March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
	(dollars in thousands, except per share data)
GAAP net income (loss) available to common stockholders	$	(65,007	)		$	6,501			$	(21,997	)		$	14,024			$	145,940
Adjustments (1):
Net unrealized (gains) losses on financial instruments at fair value		37,536				17,138				36,995				(6,971	)			(128,895	)
Net realized (gains) losses on sales of investments		40,428				23,268				(1,991	)			1,915				—
Gain (loss) on extinguishment of debt		38,858				(20	)			—				—				(2,122	)
Increase in provision for credit losses		2,824				5,322				2,587				4,409				3,387
Net unrealized (gains) losses on derivatives		(18,150	)			(27,303	)			7,907				2,554				6,469
Realized (gains) losses on derivatives		(2,870	)			17,495				(2,015	)			17,954				(82	)
Transaction expenses		98				625				9,931				390				5,688
Stock Compensation expense for retirement eligible awards		2,023				(449	)			(506	)			(501	)			1,432
Depreciation, amortization, and impairment expense (2)		9,649				4,332				948				949				951
HomeXpress acquisition intangible amortization tax impact (3)		(863	)			(837	)			—				—				—
Non-cash imputed compensation related to business acquisition		341				341				341				341				341
Other investment (gains) losses		910				(1,252	)			(1,945	)			(2,953	)			417
Earnings available for distribution	$	45,777			$	45,161			$	30,255			$	32,111			$	33,526
GAAP net income (loss) per diluted common share	$	(0.78	)		$	0.08			$	(0.27	)		$	0.17			$	1.77
Earnings available for distribution per adjusted diluted common share	$	0.54			$	0.53			$	0.37			$	0.39			$	0.41
(1) As a result of the business combinations, we updated the determination of earnings available for distribution to exclude non-recurring acquisition-related transaction expenses, non-cash amortization of intangibles and depreciation expenses, and non-cash imputed compensation expenses. These expenses are excluded as they relate to our business combinations and are not directly related to our income-generating activities.
(2) Non-cash amortization of intangibles and depreciation expenses related to acquisitions.
(3) Tax impact on non-cash amortization of intangibles and depreciation expenses related to business combinations.

At March 31, 2026, the Company’s reportable segments include (i) Investment Portfolio and (ii) Residential Origination. The Investment Portfolio segment consists of the Company’s investments and third-party advisory services activities. The Residential Origination segment consists of the stand-alone mortgage origination business of HomeXpress that originates Non-QM residential mortgage loans (both consumer loans and Investor Loans), and other Non-Agency and Agency mortgage loan products. The segment information presented below reflects the Company’s current reportable segment structure. The segment information for the three months ended March 31, 2025 has been recast to conform to the current period presentation following the Company’s segment reevaluation in the fourth quarter of 2025 in connection with the HomeXpress Acquisition.

Segment Results of Operations

The following tables present, for each reportable segment, revenues, the measure of segment profit or loss, and significant segment expenses that are regularly reviewed by the Chief Operating Decision Maker (“CODM”). Segment results are prepared on the same basis as the Company’s consolidated financial statements and are reconciled to consolidated amounts below:

		For the Quarter Ended
		March 31, 2026											March 31, 2025
		(dollars in thousands)
		Investment Portfolio				Residential Origination			Total				Investment Portfolio				Residential Origination			Total
Net interest income:
Interest income		$	205,346			$	13,949		$	219,295			$	190,616			$	—		$	190,616
Interest expense			134,169				10,124			144,293				121,397				—			121,397
Net interest income			71,177				3,825			75,002				69,219				—			69,219
Increase in provision for credit losses			2,824				—			2,824				3,387				—			3,387
Other income (losses):
Net unrealized gains (losses) on derivatives			18,150				—			18,150				(6,469	)			—			(6,469	)
Realized gains derivatives			2,870				—			2,870				82				—			82
Periodic interest on derivatives, net			1,834				—			1,834				4,135				—			4,135
Net gains (losses) on derivatives			22,854				—			22,854				(2,252	)			—			(2,252	)
Investment management and advisory fees			7,165				—			7,165				8,936				—			8,936
Interest income from investment in MSR financing receivables, net			2,311				—			2,311				—				—			—
Net unrealized gains (losses) on financial instruments at fair value			(37,536	)			—			(37,536	)			128,895				—			128,895
Net realized gains (losses) on sales of investments			(40,428	)			—			(40,428	)			—				—			—
Gains (losses) on extinguishment of debt			(38,858	)			—			(38,858	)			2,122				—			2,122
Other investment gains (losses)			(910	)			—			(910	)			(417	)			—			(417	)
Gain on origination and sale of loans, net			—				21,385			21,385				—				—			—
Total other income (losses)			(85,402	)			21,385			(64,017	)			137,284				—			137,284
Other expenses:
Compensation and benefits			15,066				11,640			26,706				13,085				—			13,085
General and administrative expenses			10,035				2,126			12,161				6,907				—			6,907
Servicing and asset manager fees			5,522				—			5,522				7,431				—			7,431
Depreciation, amortization, and impairment expense			6,222				3,427			9,649				951				—			951
Transaction expenses			98				—			98				5,688				—			5,688
Total other expenses			36,943				17,193			54,136				34,062				—			34,062
Income (loss) before income taxes			(53,991	)			8,017			(45,974	)			169,052				—			169,052
Income tax (benefit) expense			(2,106	)			42			(2,064	)			1,755				—			1,755
Net income (loss)			(51,885	)			7,975			(43,910	)			167,297				—			167,297
Dividends on preferred stock			21,097				—			21,097				21,357				—			21,357
Net income (loss) available to common shareholders		$	(72,982	)		$	7,975		$	(65,007	)		$	145,940			$	—		$	145,940

Investment Portfolio Segment

The following tables provide a summary of the Company’s MBS portfolio, within our Investment Portfolio Segment, at March 31, 2026 and December 31, 2025.

	March 31, 2026
	Principal or Notional Value at Period-End (dollars in thousands)			Weighted Average Amortized Cost Basis			Weighted Average Fair Value			Weighted Average Coupon			Weighted Average Yield at Period-End (1)
Non-Agency RMBS
Senior	$	840,273		$	42.44		$	57.79		5.7	%		20.9	%
Subordinated		401,798			45.23			48.62		3.9	%		9.1	%
Interest-only		2,377,673			6.07			3.16		1.0	%		4.0	%
Agency RMBS
Pass-through		4,892,200			99.08			99.43		5.2	%		5.3	%
CMO		310,288			99.93			100.47		4.8	%		4.9	%
Interest-only		364,411			5.01			3.95		0.8	%		5.4	%
Agency CMBS
Project loans		39,680			101.51			89.43		3.4	%		3.3	%
Interest-only		122,454			2.59			2.04		0.7	%		13.1	%
(1) Bond Equivalent Yield at period end.

	December 31, 2025
	Principal or Notional Value at Period-End (dollars in thousands)			Weighted Average Amortized Cost Basis			Weighted Average Fair Value			Weighted Average Coupon			Weighted Average Yield at Period-End (1)
Non-Agency RMBS
Senior	$	852,887		$	42.78		$	59.21		5.7	%		20.3	%
Subordinated		453,269			48.99			51.47		4.2	%		9.3	%
Interest-only		2,428,976			6.03			3.25		0.8	%		4.4	%
Agency RMBS
Pass-through		3,096,299			97.79			99.52		5.0	%		5.3	%
CMO		330,871			99.94			100.31		5.1	%		5.1	%
Interest-only		367,866			5.07			4.04		0.6	%		6.5	%
Agency CMBS
Project loans		39,693			101.52			81.98		3.4	%		3.3	%
Interest-only		123,375			2.67			2.11		0.7	%		13.0	%
(1) Bond Equivalent Yield at period end.

At March 31, 2026 and December 31, 2025, the secured financing agreements collateralized by MBS, Loans held for investment, and LHFS had the following remaining maturities and borrowing rates.

	March 31, 2026							December 31, 2025
	(dollars in thousands)
	Principal (1)			Weighted Average Borrowing Rates		Range of Borrowing Rates		Principal (1)			Weighted Average Borrowing Rates		Range of Borrowing Rates
Overnight	$	—		N/A		N/A		$	—		N/A		N/A
1 to 29 days		2,631,766		4.22%		3.79% – 6.93%			2,630,804		4.15%		3.93% – 6.76%
30 to 59 days		2,054,467		3.94%		3.79% – 7.40%			781,654		4.86%		3.94% – 6.54%
60 to 89 days		534,202		4.19%		3.80% – 6.43%			722,995		4.75%		3.90% – 6.54%
90 to 119 days		94,307		5.65%		4.54% – 6.43%			263,081		6.78%		5.37% – 6.97%
120 to 180 days		482,730		6.17%		4.54% – 8.38%			96,153		5.47%		5.36% – 6.54%
180 days to 1 year		897,869		6.73%		4.98% – 8.15%			810,443		6.03%		4.77% – 8.38%
1 to 2 years		300,355		4.98%		4.98% – 5.38%			733,206		6.79%		4.98% – 8.15%
2 to 3 years		—		—%		—% – —%			—		—%		—% – —%
Total	$	6,995,696		4.65%				$	6,038,336		5.02%
(1) The values for secured financing agreements in the table above is net of $155 thousand and $271 thousand of deferred financing costs as of March 31, 2026 and December 31, 2025, respectively.

Investment Portfolio Segment

	March 31, 2026			December 31, 2025			March 31, 2026			December 31, 2025
Portfolio Composition	Amortized Cost						Fair Value
Non-Agency RMBS	5.1	%		5.5	%		5.3	%		5.8	%
Senior	2.8	%		2.9	%		3.4	%		3.6	%
Subordinated	1.3	%		1.6	%		1.4	%		1.6	%
Interest-only	1.0	%		1.0	%		0.5	%		0.6	%
Agency RMBS	36.4	%		24.1	%		36.4	%		24.2	%
Pass-through	34.1	%		21.6	%		34.1	%		21.8	%
CMO	2.2	%		2.4	%		2.2	%		2.3	%
Interest-only	0.1	%		0.1	%		0.1	%		0.1	%
Agency CMBS	0.3	%		0.3	%		0.3	%		0.2	%
Project loans	0.3	%		0.3	%		0.2	%		0.2	%
Interest-only	0.0	%		0.0	%		0.1	%		0.1	%
Loans held for investment	57.9	%		69.8	%		57.7	%		69.5	%
Interests in MSR financing receivables	0.3	%		0.3	%		0.3	%		0.3	%
Fixed-rate percentage of portfolio	87.7	%		86.5	%		87.3	%		86.1	%
Adjustable-rate percentage of portfolio	12.3	%		13.5	%		12.7	%		13.9	%

The following table summarizes certain characteristics of our consolidated assets and liabilities at March 31, 2026 and December 31, 2025.

	March 31, 2026			December 31, 2025
	(dollars in thousands)
Interest earning assets at period-end (1)	$	14,952,689		$	15,017,791
Interest bearing liabilities at period-end	$	12,734,438		$	13,070,591
GAAP Leverage at period-end	5.2:1			5.1:1
GAAP Leverage at period-end (recourse)	2.9:1			2.4:1
(1) Excludes cash and cash equivalents.

Economic Net Interest Income – Investment Portfolio Segment

Our Economic net interest income for our Investment Portfolio Segment is a non-GAAP financial measure that equals GAAP net interest income adjusted for net periodic interest on derivatives, interest income from Residential Origination segment and interest income from investment in MSR financing receivables, and excludes interest earned on cash and interest expense from Residential Origination segment. For the purpose of computing economic net interest income and ratios relating to cost of funds measures throughout this section, interest expense includes net payments on our derivatives, which is presented as a part of Net gains (losses) on derivatives in our Consolidated Statements of Operations. Interest rate swaps, Interest rate caps and Swap futures are used to manage the increase in interest paid on secured financing agreements in a rising rate environment. Presenting the net contractual interest payments on interest rate derivatives with the interest paid on interest-bearing liabilities reflects our total contractual interest payments. We believe this presentation is useful to investors because it depicts the economic value of our investment strategy by showing all components of interest expense and net interest income of our investment portfolio. However, Economic net interest income should not be viewed in isolation and is not a substitute for net interest income computed in accordance with GAAP. Where indicated, interest expense, adjusting for any interest earned on cash, is referred to as Economic interest expense. Where indicated, net interest income reflecting net periodic interest on derivatives and any interest earned on cash, is referred to as Economic net interest income.

The following table reconciles the Economic net interest income to GAAP net interest income and Economic interest expense to GAAP interest expense for the periods presented.

	GAAP Interest Income			Interest Income on Mortgage Loan Origination				Other (1)				Economic Interest Income			GAAP Interest Expense			Periodic Interest On Derivatives, net & Interest Expense on Mortgage Loan Origination				Economic Interest Expense			GAAP Net Interest Income			Periodic Interest On Derivatives, net			Other (1)				Net Interest Income on Mortgage Loan Origination				Economic Net Interest Income
For the Quarter Ended March 31, 2026	$	219,295		$	(13,706	)		$	(472	)		$	205,117		$	144,293		$	(11,958	)		$	132,335		$	75,002		$	1,834		$	(472	)		$	(3,582	)		$	72,782
For the Quarter Ended December 31, 2025	$	220,328		$	(12,355	)		$	(3,540	)		$	204,433		$	154,150		$	(15,101	)		$	139,049		$	66,178		$	5,422		$	(3,540	)		$	(2,676	)		$	65,384
For the Quarter Ended September 30, 2025	$	209,100		$	—			$	(2,204	)		$	206,896		$	144,089		$	(5,751	)		$	138,338		$	65,011		$	5,751		$	(2,204	)		$	—			$	68,558
For the Quarter Ended June 30, 2025	$	201,297		$	—			$	(2,002	)		$	199,295		$	135,287		$	(5,067	)		$	130,220		$	66,010		$	5,067		$	(2,002	)		$	—			$	69,075
For the Quarter Ended March 31, 2025	$	190,616		$	—			$	(1,050	)		$	189,566		$	121,397		$	(4,135	)		$	117,262		$	69,219		$	4,135		$	(1,050	)		$	—			$	72,304
(1) Primarily interest income on cash and cash equivalents from our Investment Portfolio and Residential Origination segments and interest income from investment in MSR financing receivables.

The table below shows our average earning assets held, interest earned on assets, yield on average interest earning assets, average debt balance, economic interest expense, economic average cost of funds, economic net interest income and net interest rate spread for the periods presented.

	For the Quarters Ended
	March 31, 2026									December 31, 2025									March 31, 2025
	(dollars in thousands)									(dollars in thousands)									(dollars in thousands)
	Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost
Assets:
Interest-earning assets (1)(4):
Agency RMBS (3)	$	3,658,521		$	43,775		5.2	%		$	2,975,920		$	40,159		5.4	%		$	627,478		$	7,158		5.6	%
Agency CMBS		40,251			415		4.1	%			40,391			417		4.1	%			41,607			548		5.3	%
Non-Agency RMBS (3)		699,370			24,225		13.8	%			763,957			24,735		12.9	%			987,344			28,269		11.5	%
Loans held for investment		9,308,041			134,391		5.8	%			10,027,070			139,102		5.5	%			11,091,882			153,591		5.5	%
MSR(5)		38,221			2,311		3.2	%			38,221			20		0.2	%			N/A			N/A		N/A
Total	$	13,744,404		$	205,117		6.0	%		$	13,845,559		$	204,433		5.9	%		$	12,748,311		$	189,566		5.9	%
Liabilities and stockholders’ equity:
Interest-bearing liabilities (2)(4):
Secured financing agreements collateralized by:
Agency RMBS (3)	$	3,827,937		$	29,723		3.7	%		$	2,913,324		$	27,523		4.3	%		$	487,288		$	4,730		4.6	%
Agency CMBS		31,182			299		3.8	%			30,899			329		4.3	%			29,972			338		4.5	%
Non-Agency RMBS (3)		463,374			6,043		5.2	%			491,472			6,217		5.1	%			647,628			9,569		5.9	%
Loans held for investment		1,457,771			24,423		6.7	%			1,533,349			26,141		6.8	%			1,828,760			27,450		6.0	%
Securitized Debt		6,621,547			65,482		4.0	%			7,177,468			72,474		4.0	%			7,636,038			71,701		3.8	%
Long Term Debt (3)		259,750			6,365		9.8	%			259,750			6,365		9.8	%			139,750			3,474		9.9	%
Total	$	12,661,561		$	132,335		4.2	%		$	12,406,262		$	139,049		4.5	%		$	10,769,436		$	117,262		4.4	%
Economic net interest income/net interest rate spread				$	72,782		1.8	%					$	65,384		1.4	%					$	72,304		1.5	%
Net interest-earning assets/net interest margin	$	1,082,843					2.1	%		$	1,439,297					1.9	%		$	1,978,875					2.3	%
Ratio of interest-earning assets to interest bearing liabilities		1.09									1.12									1.18
(1) Interest-earning assets at amortized cost.
(2) Interest includes periodic interest on derivatives, net.
(3) These amounts have been adjusted to reflect the daily outstanding averages for which the financial instruments were held during the period.
(4) This table excludes interest-bearing assets and liabilities of our Residential Origination segment. Our Residential Origination segment includes average assets of $719 million, average liabilities of $674 million, interest income of $14 million, interest expense of $10 million, and net interest income of $4 million.
(5) The average balance amount represents committed capital by us during the period. Average Yield has been normalized for one-time EPO payments received during the quarter.

The table below shows our Net income (loss) and Economic net interest income as a percentage of average stockholder’ equity and Earnings available for distribution as a percentage of average common stockholders’ equity, and Average Tangible Common Equity. Return on average equity is defined as our GAAP net income (loss) as a percentage of average equity. Average equity is defined as the average of our beginning and ending stockholders’ equity balance for the period reported. Economic net interest income and Earnings available for distribution are non-GAAP measures as defined in previous sections. Tangible Common Equity is a non-GAAP measure and is defined below.

	Return on Average Equity			Economic Net Interest Income/Average Equity (1)			Earnings available for distribution/Average Common Equity			Earnings available for distribution/Average Tangible Common Equity
	(Ratios have been annualized)
For the Quarter Ended March 31, 2026	(6.97	)%		13.03	%		11.53	%		13.24	%
For the Quarter Ended December 31, 2025	4.41	%		10.75	%		11.00	%		11.91	%
For the Quarter Ended September 30, 2025	(0.09	)%		10.56	%		7.26	%		7.44	%
For the Quarter Ended June 30, 2025	5.38	%		10.49	%		7.54	%		7.72	%
For the Quarter Ended March 31, 2025	25.89	%		11.19	%		8.10	%		8.32	%
(1) Includes our Economic Net Interest Income and Average equity on our Investment Portfolio.

Tangible Common Equity is a non-GAAP measure and is defined as Total stockholders’ equity available to common stockholders less intangible assets and goodwill related to the business acquisitions. We believe that this measure helps our management and investors understand our capital adequacy and changes from period to period in our common stockholders’ equity exclusive of changes of intangible assets. The following table presents a reconciliation of Total Stockholders’ Equity to Tangible Common Equity as of the following periods.

	As of
	March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
	(dollars in thousands, except share and per share data)
Total stockholders’ equity	$	2,463,759			$	2,572,694			$	2,571,238			$	2,624,530			$	2,644,064
Less: Liquidation Preference on Preferred stock		(930,000	)			(930,000	)			(930,000	)			(930,000	)			(930,000	)
Total stockholders’ equity available to common stockholders	$	1,533,759			$	1,642,694			$	1,641,238			$	1,694,530			$	1,714,064
Less: Intangibles		(104,760	)			(114,246	)			(18,124	)			(18,971	)			(19,818	)
Less: Goodwill		(95,342	)			(95,342	)			(22,152	)			(22,152	)			(22,152	)
Total Intangibles & Goodwill		(200,102	)			(209,588	)			(40,276	)			(41,123	)			(41,970	)
Tangible Common Equity	$	1,333,657			$	1,433,106			$	1,600,962			$	1,653,407			$	1,672,094

Investment Portfolio Segment

The following table presents changes to Accretable Discount (net of premiums) as it pertains to our Non-Agency RMBS portfolio, excluding premiums on interest-only investments, during the previous five quarters on our investment portfolio segment.

	For the Quarters Ended
	(dollars in thousands)
Accretable Discount (Net of Premiums)	March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
Balance, beginning of period	$	79,422			$	89,297			$	108,412			$	110,861			$	117,203
Accretion of discount		(9,756	)			(8,795	)			(10,803	)			(8,253	)			(7,705	)
Purchases		—				—				—				—				—
Sales		(7,241	)			(4,224	)			(10,786	)			188				—
Elimination in consolidation		—				—				—				—				—
Transfers from/(to) credit reserve, net		(2,460	)			3,144				2,474				5,616				1,363
Balance, end of period	$	59,964			$	79,422			$	89,297			$	108,412			$	110,861

Residential Origination Segment

• NET INCOME OF $8 MILLION FOR THE QUARTER ENDED MARCH 31, 2026.

• EBTDA OF $11 MILLION FOR THE QUARTER ENDED MARCH 31, 2026.

• FUNDED PRODUCTION VOLUME OF $884 MILLION FOR THE QUARTER ENDED MARCH 31, 2026.

Earnings Before Taxes, Depreciation and Amortization

In managing our Residential Origination segment, management additionally uses Earnings Before Taxes, Depreciation and Amortization, or EBTDA, a non-GAAP measure, as a supplemental performance measure to evaluate the underlying operating efficiency and scalability of the business. EBTDA is defined as GAAP Net Income of the Residential Origination Segment, adjusted for federal and state tax provisions; and non-cash items such as intangibles amortization and depreciation. In our current model where we sell all the loans we originate and purchase from correspondents on a servicing-released basis, the economics are driven by origination income and loan sale activity, net and personnel-based costs. EBTDA helps isolate core operating results by excluding the effects of capital structure, non-cash depreciation and amortization, and tax attributes that can vary period to period. This measure allows management to assess margin performance, expense discipline, and incremental profitability as loan volumes fluctuate, and supports internal decision-making related to staffing levels, compensation structures, and growth initiatives. We believe this presentation is useful to investors because it provides investors with important information concerning the operating performance of our Residential Origination Segment exclusive of certain non-cash and other costs. However, EBTDA should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP.

The following table provides a reconciliation from GAAP net income to common stockholders for our residential origination segment to a non-GAAP measure of EBTDA for the period presented.

	For the Quarter Ended
	March 31, 2026
	(dollars in thousands)
	Residential Origination
Net income available to common shareholders	$	7,975
Adjustments:
Income tax expense		42
Amortization of intangibles and depreciation expenses		3,427
Earnings Before Taxes, Depreciation and Amortization	$	11,444

Disclaimer

In this press release references to “we,” “us,” “our,” “Chimera,” or “the Company” refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates. This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including as related to the expected impact. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “goal,” “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “would,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: our ability to obtain funding on favorable terms and access the capital markets; our ability to achieve optimal levels of leverage and effectively manage our liquidity; changes in inflation, the yield curve, interest rates and mortgage prepayment rates; our ability to manage credit risk related to our investments and comply with the Dodd-Frank Act and related laws and regulations relating to credit risk retention for securitizations; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; the concentration of properties securing our securities and residential loans in a small number of geographic areas; our ability to execute on our business and investment strategy; our ability to determine accurately the fair market value of our assets; changes in our industry, the general economy or geopolitical conditions, including the ongoing conflicts involving the U.S. in the Middle East; our ability to successfully integrate and realize the anticipated benefits of any acquisitions, including the acquisition of HomeXpress; our ability to originate or acquire quality and profitable loans at an appropriate and consistent cost; our ability to sell the loans that we originate or acquire; our ability to refinance or obtain additional liquidity for borrowing; our ability to manage, maintain and expand our relationships with our clients, the independent mortgage brokers and bankers; our ability to operate our investment management and advisory services and manage any regulatory rules and conflicts of interest; the degree to which our hedging strategies may or may not be effective; our ability to effect our strategy to securitize residential mortgage loans; our ability to compete with competitors and source target assets at attractive prices; the ability of servicers and other third parties to perform their services at a high level and comply with applicable law and expanding regulations; our dependence on information technology and its susceptibility to cyber-attacks; the development, proliferation and use of artificial intelligence; our ability to find and retain qualified executive officers and key personnel; our ability to comply with extensive government regulation, including, but not limited to, federal and state consumer lending regulations; the impact of and changes in governmental regulations, tax law and rates, accounting guidance, refinancing and borrowing guidelines and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; our ability to maintain our classification as a real estate investment trust for U.S. federal income tax purposes; the volatility of the market price and trading volume of our shares; and our ability to make distributions to our stockholders in the future.

Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these, and other risk factors, is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

Readers are advised that any financial information in this press release is based on Company data available at the time of this press release and, in certain circumstances, may not have been audited by the Company’s independent auditors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507696662/en/

Investor Relations

888-895-6557

[email protected]

www.chimerareit.com

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Professional Services Residential Building & Real Estate Finance Construction & Property REIT Banking

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