Earnings release
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BOB’S DISCOUNT FURNITURE ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS Net Revenue Increased 10.3% Comparable Sales Increased 3.8% Opened 11 New Stores Reaffirms Full Year 2026 Financial Outlook MANCHESTER, Conn. - Bob’s Discount Furniture, Inc. (NYSE:BOBS) (“We”, “our”, the “Company”, “Bob’s Discount Furniture” or “Bob’s”) today announced financial results for the third fiscal quarter ended September 27, 2026. “We delivered another strong quarter, with sales growth, market share gains and margin expansion underscoring the strength and resilience of our model,” said Bill Barton, President and Chief Executive Officer. “Customers continue to respond to our combination of everyday value, differentiated products and omnichannel capabilities. Industry demand trends remained relatively stable during the quarter, whilecustomers continued to respond to our value proposition. Despite ongoing cost pressures across parts of the business, our teams executed with discipline and delivered strong results. We were particularly pleased with the performance of our newest stores, including our successful entry into the Nashville market, and remain confident in our ability to grow profitably while bringing Bob’s to new customers and markets.” Third Quarter of Fiscal Year 2026 • Net revenue of $680.4 million increased 10.3% from $616.9 million in the third quarter of fiscal year 2025 driven by new stores and comparable sales growth. • The Company opened 11 new stores and ended the quarter with 229 stores in 28 states. • Comparable sales growth of 3.8% was driven by higher average order value (“AOV”) and increased eCommerce traffic, partially offset by lower in-store traffic. • Through the third quarter of fiscal year 2026, the Company received approval for $46.4 million in International Emergency Economic Powers Act (“IEEPA”) tariff refunds. Of this amount, the Company recognized $4.9 million of tariff refunds in cost of sales in the third quarter related to inventory previously sold. For the year-to-date period, the Company recognized $42.8 million of tariff refunds in cost of sales and $1.5 million in interest income. • Gross profit increased 11.3% to $316.0 million in the third quarter of fiscal year 2026, which is inclusive of $4.9 million in IEEPA tariff refunds discussed above, resulting in gross margin of 46.4%. Excluding the IEEPA tariff refunds, adjusted gross margin* decreased to 45.7% compared to 46.0% in the prior year period due to higher inventory and fuel-related costs and increased tariffs, partially offset by favorable product mix shift into the “Best” product category relative to historical levels, higher delivery margins and selective pricing actions. • Selling, general and administrative expenses (“SG&A”) increased 7.6% to $250.1 million in the third quarter of fiscal year 2026 due to payroll-related expenses for new stores, higher occupancy costs associated with new and existing stores, an increase in marketing spend due to greenfield store expansion and higher depreciation expense, partially offset by lower incentive compensation compared to elevated levels in the prior-year period. SG&A as a percentage of revenue decreased to 36.7% compared to 37.7% in the prior year period due to broad-based expense leverage on higher sales performance and the drivers discussed above. • Net income increased 28.8% to $41.7 million compared to $32.3 million in the third quarter of fiscal year 2025. Adjusted net income* increased 18.5% to $38.8 million compared to $32.7 million in the third quarter of fiscal year 2025. • Diluted net income per share was $0.31 and adjusted diluted net income per share* was $0.28. • Adjusted EBITDA* increased 17.6% to $75.5 million or 11.1% of net revenue compared to $64.2 million or 10.4% of net revenue in the third quarter of fiscal year 2025. *See Non-GAAP Financial Measures and Reconciliation of GAAP to Non-GAAP Financial Measures below for further information. All Non-GAAP Financial Measure exclude IEEPA tariff refunds, and related interest income as applicable.
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Balance Sheet and Liquidity • Total liquidity of $287.9 million, comprised of cash and cash equivalents of $109.9 million and available borrowing capacity of $178.0 million at September 27, 2026. • Inventories were $373.6 million as of the end of the third quarter of fiscal year 2026, an increase of 6.7% compared to year end. • Net cash provided by operating activities was $204.8 million in the year-to-date period, an increase of $86.0 million compared to the prior year, primarily driven by higher net income and the timing of accounts payable. • Investments in capital expenditures, net of tenant allowances of $70.7 million in the year-to-date period was primarily associated with our new store program and early development of a new distribution center in Georgia. Recent Developments The Company has reaffirmed its top- and bottom-line guidance for full fiscal year 2026 financial operating results, presented in the table below. Within our outlook, net income reflects the tariff refund received year to date, whereas adjusted EBITDA and adjusted net income do not. In addition, the Company now expects pre-opening expenses of approximately $23 million, compared to prior expectations of approximately $26 million, and an effective tax rate of approximately 28% compared to prior expectations of approximately 27%. Fiscal year 2026 includes 53 weeks. The “53rd week” is expected to deliver $46.0 million in net revenues, $4.4 million in net income and $6.2 million in adjusted EBITDA. Fiscal Year 2026 Net revenues $2,600 to $2,625 million Comparable sales growth 1.5% to 2.5% Net income $145 to $153 million Adjusted EBITDA $255 to $265 million Adjusted net income $121 to $129 million Other estimates: Net capital expenditures $110 to $115 million Pre-opening expenses Approximately $23 million Effective tax rate Approximately 28% New store count Approximately 20 FD shares outstanding Approximately 135 million Comparable sales growth is a key performance indicator that measures performance during the current reporting period against the performance of the comparable store sales and of the eCommerce sales in the corresponding period of the previous fiscal year. Comparable sales growth excludes net sales from the non-comparable 53rd week. See Non-GAAP Financial Measures for definitions of Adjusted EBITDA and Adjusted net income. Net capital expenditures represents capital expenditures net of tenant allowances. FD shares outstanding reflects expected average fully diluted shares outstanding for fiscal year 2026. Conference Call A conference call to discuss fiscal year 2026 third quarter financial results is scheduled for today, November 5, 2026, at 8:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-0779 (international callers dial 1-201-389- 0914) approximately 10 minutes prior to the start of the call. The conference call will be webcast and once available, a recorded replay can be accessed online at ir.mybobs.com for six months. About Bob’s Discount Furniture Bob’s Discount Furniture is a high-growth, national omnichannel retailer of value home furnishings with 229 showrooms as of September 27, 2026 across 28 U.S. states. Since our founding in 1991, we have built our ethos as a trusted and reliable brand offering superior value and service, without compromising on quality or style. Our business model is anchored in delivering furniture at “Everyday Low Prices,” and at the heart of Bob’s success is not just the value of our furniture, but the team members who bring our promise to life every day. From showroom to living room, it’s our people who make Bob’s feel like home. Our belief that everyone deserves a home they love is reflected in how we operate daily and the appreciation we have for our people and communities. From our in-store guest experience specialists who create a no-pressure, no-gimmicks shopping experience, to our distribution and logistics teams who enable fast, reliable fulfillment, Bob’s is built on the dedication of our team members nationwide. For more information, please visit www.mybobs.com. (1) (2) (2) (3) (4) (1) (2) (3) (4)
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Contacts Investor Relations Contact: Edward Plank, Vice President, Investor Relations & Strategy IR@mybobs.com Media Contact: BobsPR@icrinc.com Non-GAAP Financial Measures In addition to the results provided in accordance with U.S. GAAP, this earnings release and related tables include adjusted gross profit, adjusted gross margin, adjusted net income, adjusted EBITDA, and adjusted diluted net income per share, which present operating results on an adjusted basis. We define adjusted gross profit as gross profit adjusted to eliminate the impact of certain items that we do not consider indicative of our core operating performance and adjusted gross margin as adjusted gross profit as a percentage of net sales. We define adjusted net income as net income adjusted to eliminate the impact of certain items that we do not consider indicative of our core operating performance and the tax effect related to those items. We define adjusted diluted net income per share as adjusted net income divided by weighted average shares outstanding. We define adjusted EBITDA as net income before interest expense, interest income, income tax expense/(benefit), and depreciation and amortization, adjusted for items that are not indicative of the operating performance of the business. We believe that excluding certain items from our GAAP results allows management to better understand our financial performance from period to period. Moreover, we believe these non-GAAP financial measures provide our stakeholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. We use these non-GAAP measures to evaluate the effectiveness of our business strategies, to make budgeting decisions, to evaluate our performance in connection with compensation decisions and to compare our performance against that of peer companies using similar measures. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. These non-U.S. GAAP measures are not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. These measures should only be read together with the corresponding U.S. GAAP measures. Please refer to the reconciliations of adjusted gross profit to gross profit, adjusted net income and adjusted EBITDA to net income and adjusted diluted net income per share to diluted net income per share, the most directly comparable financial measures prepared in accordance with U.S. GAAP, below. Forward-Looking Statements Certain statements contained herein, including statements under the headings “Recent Developments”, are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements can generally be identified by words such as “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “contemplate” and other similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements include, but are not limited to, statements concerning: our expected financial operating results for fiscal year 2026; plans to open new stores, expand into new regions and increase market share; and plans to increase brand awareness and increase comparable sales. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, factors and assumptions described in “Risk Factors” in our Annual Report on Form 10-K, including those relating to, among other things: • our reliance on foreign manufacturing, suppliers and imports for our products; • the significant competition within our industry; • our ability to successfully anticipate or respond to changes in consumer preferences;
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• global economic conditions and the effect of economic pressures and other business factors on discretionary consumer spending; • the impact of current and future tariffs on our business; • managing the challenges associated with our planned new store growth; • failures by our third-party suppliers or the unavailability of suitable suppliers at reasonable prices; • failures of our vendors to meet our quality standards or applicable regulatory frameworks; • disruption in our distribution capabilities or supply chain; • our ability to protect our intellectual property rights; • compliance with applicable governmental regulations; • our ability to protect the privacy and security of information related to our customers, us, our employees or others; • disruption in our information systems; and • our ability to effectively manage our eCommerce platform and digital marketing efforts. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.
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Bob’s Discount Furniture, Inc. Condensed Consolidated Balance Sheets (Unaudited, amounts in thousands, except share and per share amounts) September 27, 2026 December 28, 2025 Assets Current assets Cash and cash equivalents $ 109,881 $ 53,202 Restricted cash 10,175 9,412 Accounts receivable 25,763 17,590 Inventories 373,583 350,284 Prepaids and other current assets 53,549 40,871 Total current assets 572,951 471,359 Property and equipment, net 403,078 328,827 Operating lease right-of-use assets 682,584 641,529 Intangible assets 179,100 179,100 Goodwill 181,699 181,699 Deferred offering costs — 3,981 Other assets 7,301 5,260 Total assets $ 2,026,713 $ 1,811,755 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 303,984 $ 260,610 Self-insurance reserves 31,699 27,959 Accrued expenses 57,646 66,211 Customer deposits 83,319 70,740 Current portion of Term Loan — 1,750 Finance lease liabilities, current portion 14,306 15,201 Operating lease liabilities, current portion 110,365 100,563 Total current liabilities 601,319 543,034 Term Loan — 337,430 Finance lease liabilities, noncurrent portion 69,052 44,254 Operating lease liabilities, noncurrent portion 725,477 678,800 Deferred income taxes 48,138 43,306 Other long-term liabilities 9,090 1,011 Total long-term liabilities 851,757 1,104,801 Total liabilities 1,453,076 1,647,835 Commitments and Contingencies Stockholders' Equity Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding at September 27, 2026; $0.01 par value, 50,000 shares authorized, no shares issued or outstanding at December 28, 2025 — — Common stock, $0.0001 par value, 445,000,000 shares authorized, 130,691,406 shares issued and outstanding at September 27, 2026; $0.0001 par value, 300,000,000 shares authorized, 119,777,765 shares issued and 110,530,029 outstanding at December 28, 2025 13 11 Additional paid-in capital 440,256 199,796 Treasury stock shares, at cost, — and 9,247,736 shares at September 27, 2026 and December 28, 2025, respectively — (67,336) Retained earnings 133,368 31,449 Total stockholders' equity 573,637 163,920 Total liabilities and stockholders' equity $ 2,026,713 $ 1,811,755
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Bob's Discount Furniture, Inc. Consolidated Statements of Operations and Comprehensive Income (Unaudited, amounts in thousands, except per share amounts) Three-Month Fiscal Period Ended September 27, 2026 September 28, 2025 Increase (Decrease) Amount % of Net Revenues Amount % of Net Revenues Amount % Net revenues $ 680,436 100.0 % $ 616,919 100.0 % $ 63,517 10.3 % Cost of sales 364,398 53.6 % 333,092 54.0 % 31,306 9.4 % Gross profit 316,038 46.4 % 283,827 46.0 % 32,211 11.3 % Selling, general, and administrative 250,090 36.7 % 232,362 37.7 % 17,728 7.6 % Pre-opening expenses 6,896 1.0 % 6,788 1.1 % 108 1.6 % Net loss (gain) on disposal of fixed assets — — % 2 — % (2) NM Total operating expenses 256,986 37.7 % 239,152 38.8 % 17,834 7.5 % Operating income 59,052 8.7 % 44,675 7.2 % 14,377 32.2 % Interest expense 1,616 0.2 % 1,077 0.2 % 539 50.0 % Interest income (631) — % (839) (0.2)% (208) (24.8)% Other expense (income), net 950 0.1 % (30) — % (980) NM Total other expense, net 1,935 0.3 % 208 — % 1,727 NM Income before taxes 57,117 8.4 % 44,467 7.2 % 12,650 28.4 % Income tax expense 15,467 2.3 % 12,125 2.0 % 3,342 27.6 % Net income and comprehensive income$ 41,650 6.1 % $ 32,342 5.2 % 9,308 28.8 % Basic net income per share $ 0.32 $ 0.29 Diluted net income per share $ 0.31 $ 0.29 NM refers to a value that is not meaningful. (1) (1)
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Bob's Discount Furniture, Inc. Consolidated Statements of Operations and Comprehensive Income (Unaudited, amounts in thousands, except per share amounts) Nine-Month Fiscal Period Ended September 27, 2026 September 28, 2025 Increase (Decrease) Amount % of Net Revenues Amount % of Net Revenues Amount % Net revenues $ 1,878,102 100.0 % $ 1,719,212 100.0 % $ 158,890 9.2 % Cost of sales 986,493 52.5 % 934,401 54.4 % 52,092 5.6 % Gross profit 891,609 47.5 % 784,811 45.6 % 106,798 13.6 % Selling, general, and administrative 720,230 38.3 % 662,968 38.6 % 57,262 8.6 % Pre-opening expenses 17,169 0.9 % 15,157 0.9 % 2,012 13.3 % Net loss (gain) on disposal of fixed assets 44 — % (134) — % 178 NM Restructuring charges — — % 292 — % (292) (100.0)% Insurance recoveries (667) — % (4,497) (0.3)% (3,830) (85.2)% Total operating expenses 736,776 39.2 % 673,786 39.2 % 62,990 9.3 % Operating income 154,833 8.3 % 111,025 6.5 % 43,808 39.5 % Interest expense 18,808 1.0 % 3,201 0.2 % 15,607 NM Interest income (2,444) (0.1)% (1,502) (0.1)% 942 62.7 % Other expense (income), net (381) — % (653) — % (272) (41.7)% Total other expense, net 15,983 0.9 % 1,046 0.1 % 14,937 NM Income before taxes 138,850 7.4 % 109,979 6.4 % 28,871 26.3 % Income tax expense 36,886 2.0 % 29,282 1.7 % 7,604 26.0 % Net income and comprehensive income$ 101,964 5.4 % $ 80,697 4.7 % 21,267 26.4 % Basic net income per share $ 0.80 $ 0.73 Diluted net income per share $ 0.76 $ 0.72 NM refers to a value that is not meaningful. (1) (1)
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Bob's Discount Furniture, Inc. Consolidated Statements of Cash Flows (Unaudited, amounts in thousands) Nine-Month Fiscal Period Ended September 27, 2026 September 28, 2025 Cash flows from operating activities Net income $ 101,964 $ 80,697 Adjustments to reconcile net income to net cash provided by operating activities Stock-based compensation expense 2,369 2,789 Transaction losses 2,192 2,210 Depreciation and amortization 58,821 52,084 Non-cash interest expense 10,925 66 Loss (gain) on disposal of fixed assets 44 (134) Non-cash lease costs 58,020 56,798 Deferred income taxes 4,833 4,878 Change in reserve for product warranties 79 650 Changes in operating assets and liabilities Accounts receivable (10,365) (4,055) Inventories (23,299) (37,346) Prepaids and other current assets (12,678) (5,581) Other assets (2,147) (832) Accounts payable 40,844 (7,453) Accrued expenses (4,841) (1,802) Customer deposits 12,579 12,481 Operating leases (42,595) (36,702) Other long-term liabilities 8,016 — Net cash provided by operating activities 204,761 118,748 Cash flows from investing activities Purchase of property and equipment (90,240) (57,989) Net cash used in investing activities (90,240) (57,989) Cash flows from financing activities Principal payments on Term Loan (350,000) — Proceeds from Line of Credit 122,000 3,000 Principal payments on Line of Credit (122,000) (3,000) Principal payments on financing lease obligations (13,971) (8,341) Net proceeds related to exercise of employee stock options 1,304 1,194 Payments for the acquisition of treasury stock (50) (1,110) Proceeds from issuance of common stock, net of underwriter discounts 310,915 — Payments for fractional shares (45) — Payments of initial public offering costs (5,232) (313) Net cash used in financing activities (57,079) (8,570) Net increase in cash, cash equivalents, and restricted cash 57,442 52,189 Cash, cash equivalents, and restricted cash beginning of period 62,614 80,558 Cash, cash equivalents, and restricted cash end of period $ 120,056 $ 132,747 Supplemental disclosure of cash flow data Cash paid for interest $ 5,581 $ 1,763 Supplemental disclosure of noncash investing and financing activities Assets acquired under financing leases $ 37,712 $ 25,423 Purchase of property and equipment included in accounts payable 24,225 13,169 Deferred offering costs included in accounts payable — 1,225 Employees cashless exercising of stock options 19 2,550
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Bob's Discount Furniture, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited, amounts in thousands, except per share amounts) Three-Month Fiscal Period Ended Nine-Month Fiscal Period Ended September 27, 2026 September 28, 2025 September 27, 2026 September 28, 2025 Net revenues $ 680,436 $ 616,919 $ 1,878,102 $ 1,719,212 Adjusted gross profit and margin Gross profit $ 316,038 $ 283,827 $ 891,609 $ 784,811 Gross margin 46.4 % 46.0 % 47.5 % 45.6 % IEEPA tariff refunds in cost of sales (4,887) — (42,750) — Adjusted gross profit $ 311,151 $ 283,827 $ 848,859 $ 784,811 Adjusted gross margin 45.7 % 46.0 % 45.2 % 45.6 % Represents the IEEPA tariff refunds recognized in the three and nine-month fiscal periods ended September 27, 2026. Three-Month Fiscal Period Ended Nine-Month Fiscal Period Ended September 27, 2026 September 28, 2025 September 27, 2026 September 28, 2025 Net revenues $ 680,436 $ 616,919 $ 1,878,102 $ 1,719,212 Adjusted net income Net income $ 41,650 $ 32,342 $ 101,964 $ 80,697 Restructuring charges — — — 292 Insurance recoveries — — (667) (4,497) Net loss (gain) on disposal of fixed assets — 2 44 (134) IEEPA tariff refunds and related interest income (4,918) — (44,291) — Debt issuance costs acceleration — — 10,720 — Management fee — 515 2,000 1,531 Contract termination benefit — — (1,923) — Other expenses, net 950 — 751 554 Tax effect of adjustments 1,092 (131) 9,029 571 Adjusted net income $ 38,774 $ 32,728 $ 77,627 $ 79,014 Adjusted net income as % of net revenue 5.7 % 5.3 % 4.1 % 4.6 % Adjusted EBITDA Net income $ 41,650 $ 32,342 $ 101,964 $ 80,697 Interest expense 1,616 1,077 18,808 3,201 Interest income (631) (839) (2,444) (1,502) Income tax expense 15,467 12,125 36,886 29,282 Depreciation and amortization 20,524 18,019 58,821 52,084 Stock-based compensation expense 815 967 2,369 2,789 Restructuring charges — — — 292 Insurance recoveries — — (667) (4,497) Net loss (gain) on disposal of fixed assets — 2 44 (134) IEEPA tariff refunds (4,887) — (42,750) — Management fee — 515 2,000 1,531 Contract termination benefit — — (1,923) — Other expenses, net 950 — 751 554 Adjusted EBITDA $ 75,504 $ 64,208 $ 173,859 $ 164,297 Adjusted EBITDA as % of revenue 11.1 % 10.4 % 9.3 % 9.6 % (1) (1) (1) (2) (3) (4) (5) (6) (3) (4) (5)
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Bob's Discount Furniture, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited, amounts in thousands, except per share amounts) Represents the IEEPA tariff refunds and related interest income recognized in the three and nine-month fiscal periods ended September 27, 2026. Interest income related to the IEEPA tariff refund claims was not material for the three-month fiscal period ended September 27, 2026. Interest income related to the IEEPA tariff refund claims was $1.5 million in the nine-month fiscal period ended September 27, 2026. Represents the acceleration of debt issuance costs in connection with the repayment of the Term Loan in the nine-month fiscal period ended September 27, 2026. Represents management fees paid in accordance with our Advisory Agreement with our controlling stockholder, which terminated in connection with our initial public offering (“IPO”). Activity for the nine-month fiscal period ended September 27, 2026 reflects a termination fee of $2.0 million associated with the Advisory Agreement. Represents the acceleration of a bonus from our financing partner due to the termination of the agreement. Other expenses. net represents income and costs that are not indicative of ongoing business operations and performance, including, but not limited to, third-party professional fees related to our IPO, a litigation settlement, bankruptcy settlements and senior termination benefits. Represents the IEEPA tariff refunds excluding interest income recognized in the three and nine-month fiscal periods ended September 27, 2026. Three-Month Fiscal Period Ended Nine-Month Fiscal Period Ended September 27, 2026 September 28, 2025 September 27, 2026 September 28, 2025 Adjusted diluted net income per share Diluted net income per share $ 0.31 $ 0.29 $ 0.76 $ 0.72 Restructuring charges — — — — Insurance recoveries — — (0.01) (0.04) Net loss (gain) on disposal of fixed assets — — — — IEEPA tariff refunds and related interest income (0.04) — (0.33) — Debt issuance costs acceleration — — 0.08 — Management fee — — 0.02 0.01 Contract termination benefit — — (0.02) — Other expenses, net — — 0.01 — Tax effect of adjustments 0.01 — 0.07 0.01 Adjusted diluted net income per share $ 0.28 $ 0.29 $ 0.58 $ 0.70 Diluted weighted average shares outstanding 136,226,988 112,892,175 133,325,435 112,753,472 Represents the IEEPA tariff refunds and related interest income recognized in the three and nine-month fiscal periods ended September 27, 2026. Represents the acceleration of debt issuance costs in connection with the pay down of the Term Loan in the nine-month fiscal period ended September 27, 2026. Represents management fees paid in accordance with our Advisory Agreement with our controlling stockholder, which terminated in connection with the consummation of our proposed IPO. See "Certain Relationships and Related Party Transactions - Advisory Agreement." Activity for the nine-month fiscal period ended September 27, 2026 reflects the per share impact of a termination fee of $2.0 million associated with the Advisory Agreement. Represents the acceleration of a bonus from our financing partner due to the termination of the agreement. Other expenses, net represents income and costs that are not indicative of ongoing business operations and performance, including, but not limited to, third-party professional fees related our initial public offering, a litigation settlement, bankruptcy settlements, and senior termination benefits. (1) (2) (3) (4) (5) (6) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5)