Earnings release
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Keurig Dr Pepper Reports Q3 Results and Reaffirms Guidance for 2026 Drove Healthy Q3 Net Sales Momentum, with Growth Across all Legacy KDP Segments Delivered Q3 Diluted EPS Increase of More Than 20% FRISCO, TX and BURLINGTON, MA ( November 3, 2026) – Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the third quarter of 2026 and reaffirmed its full year guidance. Reported GAAP Basis Adjusted Basis1 Q3 YTD Q3 YTD Net Sales $7.34 bn $18.63 bn $7.34 bn $18.63 bn % vs prior year 70.6% 53.9% 70.1% 53.0% Diluted EPS $0.59 $0.85 $0.66 $1.65 % vs prior year 20.4% (33.1)% 22.2% 13.1% Commenting on the performance, CEO Tim Cofer stated, "We are pleased with our third quarter results, which featured meaningful net sales and EPS growth, along with healthy free cash flow. Our refreshment beverages portfolio maintained its double- digit sales growth momentum and we drove solid results in coffee, led by strong JDE Peet’s profitability. Notably, we achieved these results while stepping up investment behind our brands and capabilities to position our two future companies for success. As we enter the final stretch of the year, we are on track to deliver our 2026 financial commitments and we remain focused on achieving the remaining milestones to enable our planned separation.” Third Quarter Consolidated Results Net sales for the third quarter increased 70.6% to $7.3 billion and, on a constant currency basis, net sales advanced 70.1%. Excluding the contribution from the JDE Peet’s acquisition, legacy KDP net sales increased 8.6%, driven by volume/mix growth of 6.5% and favorable net price realization of 2.1%. GAAP operating income increased 34.0% to $1.3 billion, including an unfavorable year -over-year impact of items affecting comparability, primarily due to acquisition and integration- related costs. Adjusted operating income increased 52.5% to $1.7 billion and totaled 22.7% of net sales. The Adjusted operating income growth was driven by net sales growth and productivity savings, partially offset by the impact of inflationary pressures and higher SG&A expenses, including increased marketing. GAAP and Adjusted operating income also included a $99 million benefit from tariff refunds in the quarter. GAAP net income attributable to common shareholders increased 22.4% to $810 million, or $0.59 per diluted share, including an unfavorable year-over-year impact of items affecting comparability. Adjusted net income attributable to common shareholders increased 22.1% to $905 million and Adjusted diluted EPS increased 22.2% to $0.66. GAAP and Adjusted EPS growth were driven by the operating income increase, partly offset by higher non- operating expense, interest expense, non- controlling interest, and earnings allocated to preferred investors. Operating cash flow for the third quarter was $1.04 billion and free cash flow totaled $1.01 billion. 1 Adjusted financial metrics presented in this release are non-G AAP, excluding items affecting comparability. Adjusted growth rates are non-GAAP, excluding items affecting comparability and presented on a constant currency basis. See reconciliations of GAAP results to Adjusted results on a constant currency basis in the accompanying tables. The Company does not provide reconciliations of for ward- looking non- GAAP measures to GAAP measures, due to the inability to predict the amount and timing of impacts outside of the Company's control on certain items, such as non- cash gains or losses resulting from mark -to-market adjustments of derivative instruments, among others, which could be material. Reconciling such items would require unreasonable efforts. EXHIBIT 99.1
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Third Quarter Segment Results U.S. Refreshment Beverages Net sales for the third quarter increased 10.9% to $3.0 billion, driven by volume/mix growth of 7.2% and f avorable net price realization of 3.7%. GAAP operating income increased 2.2% to $820 million, including an unfavorable year -over-year impact of items affecting comparability. Adjusted operating income increased 8.3% to $884 million and totaled 29.1% of net sales. Adjusted operating income growth was driven by net sales growth and productivity savings, partially offset by the impact of inflationary pressures and higher SG&A expenses, including increased marketing. U.S. Coffee Net sales for the third quarter increased 2.7% to $1.0 billion. V o lume/mix growth of 6.9% was partially offset by unfavorable net price realization of 4.2%. GAAP operating income increased 34.6% to $319 million, including a favorable year-over-year impact of items affecting comparability. Adjusted operating income increased 11.4% to $353 million and totaled 34.7% of net sales. The Adjusted operating income growth was primarily driven by the benefit from tariff refunds, as well as volume/mix growth, productivity savings, and cost synergies. These factors more than offset unfavorable net price realization, the impact of inflationary pressures, and increased marketing. JDE Peet’s Net sales for the third quarter were $2.6 billion. GAAP operating income was $289 million, including an unfavorable impact of items affecting comparability, primarily due to acquisition and integration- related costs. Adjusted operating income was $480 million and totaled 18.1% of net sales. The JDE Peet’s acquisition closed on April 1, and therefore the segment contribution was wholly incremental to the Company on a year-over-year basis. KDP International Net sales for the third quarter increased 11.0% to $644 million. On a constant currency basis, net sales increased 7.6%, driven by favorable net price realization of 5.7% and volume/mix growth of 1.9%. GAAP operating income increased 3.3% to $158 million, including a favorable year -over-year impact from currency translation. Adjusted operating income declined 0.6% to $160 million and totaled 24.8% of net sales. The Adjusted operating income decline was driven by cost pressures, including the Mexico beverage tax, and increased marketing, which offset net sales growth and productivity savings. 2026 Guidance The 2026 guidance provided below is presented on a constant currency, non- GAAP basis. The Company does not provide reconciliations of such forward- looking non-GAAP measures to GAAP measures, due to the inability to predict the amount and timing of impacts outside of the Company's control on certain items, such as non- cash gains or losses resulting from mark -to-market adjustments of derivative instruments, among others, which could be material. Reconciling such items would require unreasonable efforts. For 2026, KDP expects net sales of $25.9-$26.4 billion and constant currency Adjusted diluted EPS growth in a low-double-digit range. This guidance now includes approximately $8.3-$8.4 billion in net sales and a 7 to 8 percentage point EPS growth contribution from the JDE Peet’s acquisition, as well as 3-5% constant currency EPS growth for KDP's legacy business, due to revised expectations for U.S. Coffee. At current exchange rates, foreign currency translation is forecasted to approximate a one half of one percentage point tailwind to 2026 full year net sales and EPS growth.
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Investor Contact: Investor Relations T: 888-340-5287 / IR@kdrp.com Media Contact: Katie Gilroy T: 781-418-3345 / katie.gilroy@kdrp.com ABOUT KEURIG DR PEPPER Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company with more than 150 owned, licensed and partner brands that meet a wide range of needs and occasions. Our North American refreshment beverage business holds leadership positions across carbonated soft drinks, water, juice and mixers with a portfolio of iconic brands such as Dr Pepper®, Canada Dry®, Mott’s®, A&W®, Peñafiel®, GHOST®, 7UP®, Snapple®, Clamato® and Core Hydration®. Our global coffee business spans more than 100 markets and includes the leading Keurig® single‑serve brewing system in the U.S. and Canada, along with powerhouse brands such as Peet’s, L’OR and Jacobs, and other regional coffee leaders. Our more than 50,000 employees aim to enhance the experience of every beverage and coffee occasion while making a positive impact for people, communities and the planet. Learn more at www.keurigdrpepper.com and follow us @KeurigDrPepper on LinkedIn and Instagram. FORWARD LOOKING STATEMENTS Certain statements contained herein are "forward- looki ng statements" within the meaning of applicable securities laws and regulations. These forward- looking statements include those preceded by, followed by or that include the words such as "outlook," "guidance," "anticipate," "enable," "expect," "believe," "could," "confident," "estimate," "feel," "continue," "ongoing," "forecast," "intend," "may," "on track," "plan," "positioned," "potential," "project," "should," "target," "will," "would" and similar words, phrases, or expressions and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These statements are based on the current expectations of our management, are not predictions of actual performance, and actual results may differ materially. Forward-looking statements are subject to a number of risks and uncertainties, including the factors disclosed in our Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (the “SEC”). Our actual financial performance could differ materially from the projections in the forward- looking statements due to a variety of factors, including, but not limited to, (i) the inherent uncertainty of estimates, forecasts and projections, (ii) global economic uncertainty or economic downturns, (iii) tariffs or the imposition of new tariffs, trade wars, barriers or restrictions, sanctions, geopolitical disturbances and conflicts, or threats of such actions and related uncertainty, (iv) the risk that our financial performance may be better or worse than anticipated, (v) risks related to the completion of the separation of our beverage and coffee portfolios in the anticipated timeframe or at all, (vi) our incurrence of significant debt or our entry into other funding alternatives, in each case, in connection with the acquisition of JDE Peet’s, which may result in dilution to our stockholders or introduce complexity to our capital structure, (vii) additional risks associated with the acquisition of JDE Peet's and those geographies, countries and associated governments where JDE Peet's currently operates, (viii) our ability to successfully integrate JDE Peet's into our business, or that such integration may be more difficult, time- consuming or costly than expected, (ix) constraints on management’s attention to operating and growing our business during the execution of the integration of JDE Peet's and the separation, (x) the potential downgrade of our credit ratings as a result of debt incurred and/or assumed in connection with the acquisition of JDE Peet’s and the separation, (xi) the possibility of negative impacts on business relationships in connection with the acquisition of JDE Peet’s and the separation, (xii) the risk that the separation incurs significant additional costs, (xiii) the risk of potential litigation and regulatory actions, (xiv) risks related to negative effects of the acquisition of JDE Peet’s and the pendency of the separation on our share price and (xv) the ability to achieve the anticipated strategic and financial benefits from the separation. We are under no obligation to update, modify or withdraw any forward -looking statements, except as required by applicable law.
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NON-GAAP FINANCIAL MEASURES This release includes certain non-GAAP financial measures, which differ from results using U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP financial measures should be considered as supplements to and should not be considered replacements for, or superior to, the GAAP measures. These measures may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define the non-GAAP financial measure in the same way. Non-GAAP financial measures typically exclude certain charges, including one-time costs that are not expected to occur routinely in future periods, described by the Company as "items affecting comparability". Refer to page A- 6 for the Company's description of items affecting comparability for each period presented. The Company uses non- GAAP financial measures to evaluate our operating and financial performance and to compare such performance to that of prior periods and to the performance of our competitors. Additionally, we use non- GAAP financial measures in making operational and financial decisions and in our budgeting and planning process. We believe that providing non-GAAP financial measures to investors helps investors evaluate our operating performance, profitability and business trends in a way that is consistent with how management evaluates such performance. Adjusted gross profit. Adjusted gross profit is defined as Net sales less Cost of sales, as adjusted for items affecting comparability as described on page A-6. Management believes that Adjusted gross profit is useful for investors in evaluating the Company’s operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability. Adjusted operating income. Adjusted operating income is defined as Income from operations, as adjusted for items affecting comparability as described on page A-6. Management believes that Adjusted operating income is useful for investors in evaluating the Company’s operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability. Adjusted net income. Adjusted net income is defined as Net income, as adjusted for items affecting comparability as described on page A- 6. Management believes that Adjusted net income is useful for investors in evaluating the Company’s operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability. Adjusted diluted EPS. Adjusted diluted EPS is defined as Diluted EPS, as adjusted for items affecting comparability as described on page A- 6. Management believes that Adjusted diluted EPS is useful for investors in providing period-to-period comparisons of the results of our operations since it adjusts for certain items affecting overall comparability. Adjusted gross margin. Adjusted gross margin is defined as Adjusted gross profit divided by Net sales. Management believes that Adjusted gross margin is useful for investors as supplemental measures to evaluate our operating performance and ability to manage ongoing costs. Adjusted operating margin. Adjusted operating margin is defined as Adjusted Income from operations divided by Net sales. Management believes that Adjusted operating margin is useful for investors as supplemental measures to evaluate our operating performance and ability to manage ongoing costs. Adjusted interest expense . Adjusted interest expense is defined as Interest expense, net, as adjusted for items affecting comparability as described on page A-6. Management believes that Adjusted interest expense is useful for investors in evaluating our performance and establishing expectations for the impacts of interest expenses. Adjusted EBITDA. Adjusted EBITDA is defined as EBITDA, as adjusted for items affecting comparability as described on page A-6. EBITDA is defined as Net income as adjusted for interest expense, net; provision for income taxes; depreciation expense; amortization of intangibles; and other amortization. Management believes that Adjusted EBITDA is useful for investors in evaluating the Company's operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability.
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Management leverage ratio. Management leverage ratio is defined as KDP's total principal amounts of debt less cash and cash equivalents, divided by Adjusted EBITDA. Management believes that the Management leverage ratio is useful for investors in evaluating the Company’s liquidity and assessing the Company's ability to meet its financial obligations. Free cash flow. Free cash flow is defined as net cash provided by operating activities adjusted for purchases of property, plant and equipment, proceeds from sales of property, plant and equipment, and certain items excluded for comparison to prior year periods. Management uses this measure to evaluate the company’s performance and make resource allocation decisions. Financial measures presented on a constant currency basis. Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability, calculated on a constant currency basis by converting our current period local currency financial results using the prior period foreign currency exchange rates. Because our reporting currency is the U.S. Dollar, the value of financial measures presented in U.S. Dollar will be affected by changes in currency exchange rates. Therefore, we present certain financial measures on a constant currency basis for greater comparability.
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Third Quarter First Nine Months (in millions, except per share data) 2026 2025 2026 2025 Net sales $ 7,344 $ 4,306 $ 18,629 $ 12,104 Cost of sales 3,819 1,966 9,940 5,524 Gross profit 3,525 2,340 8,689 6,580 Selling, general, and administrative expenses 2,137 1,344 5,876 3,892 Other operating expense (income), net 55 1 96 (6) Income from operations 1,333 995 2,717 2,694 Interest expense, net 474 188 1,091 516 Gain on sale of equity method investment (400) — (400) — Other expense (income), net 47 (45) 152 (52) Income before provision for income taxes 1,212 852 1,874 2,230 Provision for income taxes 260 190 442 504 Net income 952 $ 662 1,432 $ 1,726 Less: Net income attributable to non-controlling interests 70 — 138 — Net income attributable to KDP 882 662 1,294 1,726 Less: Net income allocated to Preferred Investors 72 — 135 — Net income attributable to common shareholders $ 810 $ 662 $ 1,159 $ 1,726 Earnings per common share: Basic $ 0.60 $ 0.49 $ 0.85 $ 1.27 Diluted 0.59 0.49 0.85 1.27 Weighted average common shares outstanding: Basic 1,360.8 1,358.5 1,360.2 1,358.0 Diluted 1,366.1 1,362.9 1,364.9 1,362.7 KEURIG DR PEPPER INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) A-1
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September 30, December 31, (in millions, except share and per share data) 2026 2025 Assets Current assets: Cash and cash equivalents $ 1,290 $ 1,026 Restricted cash and restricted cash equivalents 16 18 Trade accounts receivable, net 2,523 1,671 Inventories 3,767 1,733 Prepaid expenses and other current assets 2,018 818 Total current assets 9,614 5,266 Property, plant, and equipment, net 6,094 3,230 Equity method investments 1,358 1,660 Goodwill 29,780 20,247 Intangible assets, net 37,888 23,725 Deferred tax assets 214 36 Other non-current assets 1,924 1,295 Total assets $ 86,872 $ 55,459 Liabilities, convertible preferred stock, and equity Current liabilities: Accounts payable $ 6,223 $ 2,996 Accrued expenses 2,636 1,379 Structured payables 982 25 Short-term borrowings and current portion of long-term obligations 7,270 3,105 Other current liabilities 1,440 785 Total current liabilities 18,551 8,290 Long-term obligations 21,595 13,036 Deferred tax liabilities 8,798 5,526 Other non-current liabilities 3,879 3,091 Total liabilities 52,823 29,943 Convertible preferred stock, $0.01 par value, 4,500,000 shares authorized, 4,500,000 and 0 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively. Liquidation preference of $4,500 million as of September 30, 2026 4,418 — Stockholders' equity: Preferred stock, $0.01 par value, 10,500,000 shares authorized, no shares issued as of September 30, 2026 and December 31, 2025 — — Common stock, $0.01 par value, 2,000,000,000 shares authorized, 1,360,940,119 and 1,358,663,795 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively 14 14 Additional paid-in capital 19,839 19,778 Retained earnings 5,842 5,622 Accumulated other comprehensive (loss) income (269) 102 Total stockholders' equity 25,426 25,516 Non-controlling interests 4,205 — Total equity 29,631 25,516 Total liabilities, convertible preferred stock, and equity $ 86,872 $ 55,459 KEURIG DR PEPPER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) A-2
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First Nine Months (in millions) 2026 2025 Operating activities: Net income $ 1,432 $ 1,726 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 527 336 Amortization of intangibles 286 101 Amortization of inventory step-up 361 15 Other amortization expense 125 117 Provision for sales returns 132 42 Deferred income taxes (177) (39) Employee stock-based compensation expense 95 70 Amortization of deferred financing costs 115 15 Gain on sale of equity method investment (400) — Loss (gain) on disposal of property, plant, and equipment 69 (3) Unrealized (gain) loss on foreign currency (9) 7 Unrealized gain on derivatives (165) (127) Settlements of interest rate contracts 70 — Earnings of equity method investments (58) (62) Earned equity from distribution arrangements (16) (21) Other, net 63 (12) Changes in assets and liabilities, excluding the effects of business acquisitions: Trade accounts receivable (131) (16) Inventories 160 (533) Income taxes receivable and payable, net 119 (27) Other current and non-current assets (138) (183) Accounts payable and accrued expenses (41) (140) Other current and non-current liabilities (199) 13 Net change in operating assets and liabilities (230) (886) Net cash provided by operating activities 2,220 1,279 Investing activities: Acquisitions of businesses, net of cash acquired (16,633) (114) Proceeds from sale of equity method investment 400 — Purchases of property, plant, and equipment (457) (338) Proceeds from sales of property, plant, and equipment 145 14 Purchases of intangibles (4) (16) Other, net (2) 64 Net cash used in investing activities $ (16,551) $ (390) KEURIG DR PEPPER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) A-3
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First Nine Months (in millions) 2026 2025 Financing activities: Proceeds from issuance of Notes $ 6,108 $ 2,000 Repayments of Notes (400) (529) Net repayment of commercial paper (968) (225) Proceeds from Delayed Draw T erm Loan 3,626 — Repayment of term loans (405) (990) Net proceeds from issuance of convertible preferred stock 4,395 — Net proceeds from sale of non-controlling interest 3,899 — Proceeds from structured payables 650 23 Repayments of structured payables (696) (34) Cash dividends paid to common shareholders (938) (937) Cash dividends paid to Preferred Investors (107) — Distributions paid to non-controlling interest holders (64) — Repurchases of common stock, inclusive of excise tax obligation — (9) T ax withholdings related to net share settlements (34) (29) Payments on finance leases (146) (96) Deferred financing charges paid (44) (103) Other, net (5) (5) Net cash provided by (used in) financing activities 14,871 (934) Cash, cash equivalents, restricted cash, and restricted cash equivalents: Net change from operating, investing, and financing activities 540 (45) Effect of exchange rate changes (278) 6 Beginning balance 1,044 608 Ending balance $ 1,306 $ 569 KEURIG DR PEPPER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) A-4
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Third Quarter First Nine Months (in millions) 2026 2025 2026 2025 Net sales U.S. Refreshment Beverages $ 3,033 $ 2,735 $ 8,557 $ 7,718 U.S. Coffee 1,018 991 2,793 2,816 KDP International 644 580 1,828 1,570 JDE Peet's 2,649 — 5,451 — Total net sales $ 7,344 $ 4,306 $ 18,629 $ 12,104 Income from operations U.S. Refreshment Beverages $ 820 $ 802 $ 2,398 $ 2,202 U.S. Coffee 319 237 628 672 KDP International 158 153 395 386 JDE Peet's 289 — 227 — Unallocated corporate costs (253) (197) (931) (566) Total income from operations $ 1,333 $ 995 $ 2,717 $ 2,694 KEURIG DR PEPPER INC. RECONCILIATION OF SEGMENT INFORMATION (UNAUDITED) A-5
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The Company reports its financial results in accordance with U.S. GAAP . However, management believes that certain non-GAAP financial measures that reflect the way management evaluates the business may provide investors with additional information regarding the Company's results, trends and ongoing performance on a comparable basis. Specifically, investors should consider the following with respect to our financial results: Adjusted: Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability. Items affecting comparability: Defined as certain items that are excluded for comparison to prior year periods, adjusted for the tax impact as applicable. T ax impact is determined based upon an approximate rate for each item. For each period, management adjusts for (i) the unrealized mark-to-market impact of derivative instruments not designated as hedges in accordance with U.S. GAAP that do not have an offsetting risk reflected within the financial results, as well as the unrealized mark-to-market impact of our Vita Coco investment prior to its sale in the first quarter of 2025; (ii) the amortization associated with definite-lived intangible assets; (iii) the amortization of the deferred financing costs associated with the DPS Merger and JDE Peet's Acquisition; (iv) the amortization of the fair value adjustment of the senior unsecured notes obtained as a result of the DPS Merger and JDE Peet's Acquisition; (v) stock compensation expense and the associated windfall tax benefit attributable to the matching awards made to employees who made an initial investment in KDP; (vi) transaction costs for significant business combinations (completed or abandoned), excluding costs related to the JDE Peet's Acquisition; (vii) non-cash changes in deferred tax liabilities related to goodwill and intangible assets as a result of tax rate or apportionment changes; and (viii) other certain items that are excluded for comparison purposes to prior year periods. For the first nine months of 2026, the other certain items excluded for comparison purposes include (i) productivity expenses; (ii) restructuring adjustments associated with the 2023 CEO Succession and Associated Realignment; (iii) costs related to significant non-routine legal matters, including the antitrust litigation; (iv) restructuring expenses associated with the Network Optimization program; (v) integration expenses associated with the Dyla acquisition; (vi) the change in our mandatory redemption liability for GHOST ; (vii) the impacts of various transactions with Chobani; (viii) acquisition, integration, and financing costs associated with the acquisition of JDE Peet's and subsequent spin of Global Coffee Co.; (ix) the impact of the step-up of acquired inventory associated with acquisitions; (x) Legacy JDE Peet’s transformation activities and corporate actions; (xi) Legacy JDE Peet’s ERP system implementation and upgrade expenses; (xii) Legacy JDE Peet’s losses and costs associated with divestitures; and (xiii) the reassessment of the allocation of convertible preferred dividends for items affecting comparability. The acquisition, integration, and financing costs associated with the acquisition of JDE Peet's and subsequent spin of Global Coffee Co. category includes (i) transaction costs; (ii) integration costs; (iii) costs to obtain proceeds to close the JDE Peet's Acquisition; (iv) costs to manage the FX risk associated with the purchase price, and (v) Day 1 post-combination share-based compensation expense associated with Legacy JDE Peet’s share awards. In connection with the acquisition of JDE Peet's, we entered into financing arrangements and incurred deferred financing costs associated with these agreements. Further, we executed certain FX forward contracts to protect against negative foreign exchange movement against the Euro-denominated purchase price prior to the close of the JDE Peet's Acquisition. KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED) A-6
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For the preferred dividends, the Preferred Investors are entitled to participate in dividends declared or paid on the common shares on an as-converted basis. Beginning in the second quarter of 2026, net income attributable to common shareholders is computed under the two-class method in periods when the Preferred Investors’ participation on an as-converted basis exceeds the preferred dividends related to the Convertible Preferred Stock. The reassessment of the allocation of convertible preferred dividends for items affecting comparability caption reflects any adjustment required if the adjusted net income attributable to KDP is used if the Preferred Investors’ participation on an as-converted basis exceeds the preferred dividends related to the Convertible Preferred Stock. For the first nine months of 2025, the other certain items excluded for comparison purposes include (i) productivity expenses; (ii) restructuring expenses associated with the 2023 CEO Succession and Associated Realignment; (iii) costs related to significant non-routine legal matters, including the antitrust litigation; (iv) restructuring expenses associated with the Network Optimization program; (v) the impact of the step-up of acquired inventory associated with acquisitions; (vi) integration expenses associated with the GHOST and Dyla acquisitions; (vii) the change in our mandatory redemption liability for GHOST ; and (viii) non-cash changes in deferred tax liabilities related to goodwill and other intangible assets as a result of tax rate or apportionment changes. Constant currency adjusted: Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability, calculated on a constant currency basis by converting our current period local currency financial results using the prior period foreign currency exchange rates. For the third quarter and first nine months of 2026 and 2025, the supplemental financial data set forth below includes reconciliations of adjusted and constant currency adjusted financial measures to the applicable financial measure presented in the unaudited condensed consolidated financial statements for the same period. KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED) A-7
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(in millions, except %) Gross profit Gross margin Income from operations Operating margin Third Quarter of 2026 Reported $ 3,525 48.0 % $ 1,333 18.2 % Items Affecting Comparability: Productivity — 6 Mark-to-market 2 (56) Amortization of intangibles — 125 Stock compensation — 2 Non-routine legal matters — 6 Restructuring - Network Optimization — 2 Chobani transactions — 51 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. 2 124 Integration of acquisitions, excluding JDE Peet’s — 1 Inventory step-up 47 47 Transaction costs, excluding JDE Peet's — 1 Legacy JDE Peet's transformation activities and corporate actions — 19 Legacy JDE Peet's ERP system implementation and upgrade expenses — 9 Adjusted $ 3,576 48.7 % $ 1,670 22.7 % Impact of foreign currency — % — % Constant currency adjusted 48.7 % 22.7 % Third Quarter of 2025 Reported $ 2,340 54.3 % $ 995 23.1 % Items Affecting Comparability: Productivity 35 47 Mark-to-market (27) (40) Amortization of intangibles — 33 Stock compensation — 4 Non-routine legal matters — 9 Restructuring - Network Optimization 1 26 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. — 13 Integration of acquisitions, excluding JDE Peet’s — 4 Adjusted $ 2,349 54.6 % $ 1,091 25.3 % KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED) Refer to pages A-11 and A-12 for reconciliations of reported net sales to constant currency net sales and adjusted income from operations to constant currency adjusted income from operations. A-8
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Third Quarter of 2026 Reported $ 474 $ (400) $ 47 $ 1,212 $ 260 21.5 % $ 882 $ (72) $ 0.59 Items Affecting Comparability: Productivity — — — 6 (2) 8 0.01 Mark-to-market (142) — — 86 27 59 0.04 Amortization of intangibles — — — 125 30 95 0.07 Stock compensation — — — 2 — 2 — Amortization of fair value of debt adjustment (24) — — 24 6 18 0.01 Amortization of deferred financing costs (2) — — 2 — 2 — Non-routine legal matters — — — 6 2 4 — Restructuring - 2023 CEO Succession and Associated Realignment — — — — (2) 2 — Restructuring - Network Optimization — — 2 2 — — Chobani transactions — 400 (19) (330) (86) (244) (0.18) Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. (8) — — 132 46 86 0.06 Change in mandatory redemption liability for GHOST — — (24) 24 7 17 0.01 Integration of acquisitions, excluding JDE Peet’s — — — 1 1 — — Inventory step-up — — 47 16 31 0.02 Transaction costs, excluding JDE Peet's — — — 1 (5) 6 — Legacy JDE Peet's transformation activities and corporate actions — — — 19 9 10 0.01 Legacy JDE Peet's ERP system implementation and upgrade expenses — — — 9 2 7 0.01 T otal items affecting comparability 298 — 4 1,368 312 986 r s Reassessment of net income allocated to Preferred Investors for items affecting comparability (9) (0.01) Adjusted $ 298 $ — $ 4 $ 1,368 $ 312 22.8 % $ 986 $ (81) $ 0.66 Impact of foreign currency — % Constant currency adjusted 22.8 % (in millions, except % and per share data) Interest expense, net Gain on sale of equity method investment Other expense (income), net Income before provision for income taxes Provision for income taxes Effective tax rate Net income attributable to KDP Net income allocated to Preferred Investors Diluted earnings per share KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED) Diluted earnings per common share may not foot due to rounding. A-9
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Third Quarter of 2025 Reported $ 188 $ — $ (45) $ 852 $ 190 22.3 % $ 662 $ — $ 0.49 Items Affecting Comparability: Productivity — — — 47 14 33 0.02 Mark-to-market (7) — — (33) (5) (28) (0.02) Amortization of intangibles — — — 33 10 23 0.02 Stock compensation — — — 4 1 3 — Amortization of fair value of debt adjustment (3) — — 3 1 2 — Non-routine legal matters — — — 9 2 7 — Restructuring - Network Optimization — — — 26 7 19 0.01 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. (5) — 28 (10) (2) (8) (0.01) Change in mandatory redemption liability for GHOST — — (20) 20 5 15 0.01 Integration of acquisitions, excluding JDE Peet’s — — — 4 (3) 7 0.01 Inventory step-up — — — — (3) 3 — Adjusted $ 173 $ — $ (37) $ 955 $ 217 22.7 % $ 738 $ — $ 0.54 Change - adjusted 72.3 % 33.6 % 22.2 % Impact of foreign currency — % (0.5) % — % Change - constant currency adjusted 72.3 % 33.1 % 22.2 % (in millions, except % and per share data) Interest expense, net Gain on sale of equity method investment Other expense (income), net Income before provision for income taxes Provision for income taxes Effective tax rate Net income attributable to KDP Net income allocated to Preferred Investors Diluted earnings per share KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED) Diluted earnings per common share may not foot due to rounding. A-10
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Third Quarter of 2026 Reported - Income from Operations $ 820 $ 319 $ 158 $ 289 $ (253) $ 1,333 Items Affecting Comparability: Productivity — — 1 — 5 6 Mark-to-market — — — 2 (58) (56) Amortization of intangibles 12 23 1 89 — 125 Stock compensation — — — — 2 2 Non-routine legal matters — — — — 6 6 Restructuring - Network Optimization — 1 — — 1 2 Chobani transactions 51 — — — — 51 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. — 10 — 27 87 124 Integration of acquisitions, excluding JDE Peet’s 1 — — — — 1 Inventory step-up — — — 47 — 47 Transaction costs, excluding JDE Peet's — — — — 1 1 Legacy JDE Peet's transformation activities and corporate actions — — — 17 2 19 Legacy JDE Peet's ERP system implementation and upgrade expenses — — — 9 — 9 Adjusted - Income from Operations $ 884 $ 353 $ 160 $ 480 $ (207) $ 1,670 Third Quarter of 2025 Reported - Income from Operations $ 802 $ 237 $ 153 $ — $ (197) $ 995 Items Affecting Comparability: Productivity — 35 — — 12 47 Mark-to-market — — — — (40) (40) Amortization of intangibles 9 22 2 — — 33 Stock compensation — — — — 4 4 Non-routine legal matters — 1 — — 8 9 Restructuring - Network Optimization 3 22 — — 1 26 Integration of acquisitions, excluding JDE Peet’s 2 — — — 2 4 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. — — — — 13 13 Adjusted - Income from Operations $ 816 $ 317 $ 155 $ — $ (197) $ 1,091 Change - adjusted 8.3 % 11.4 % 3.2 % N/A 5.1 % 53.1 % Impact of foreign currency — % — % (3.8) % N/A — % (0.6) % Change - constant currency adjusted 8.3 % 11.4 % (0.6) % N/A 5.1 % 52.5 % (in millions, except %) U.S. Refreshment Beverages U.S. Coffee KDP International JDE Peet's Unallocated corporate costs Total KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION INCOME FROM OPERATIONS - CONSOLIDATED AND SEGMENTS (UNAUDITED) A-11
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Reported Impact of Foreign Currency Constant Currency Third Quarter of 2026 Change in net sales U.S. Refreshment Beverages 10.9 % — % 10.9 % U.S. Coffee 2.7 — 2.7 KDP International 11.0 (3.4) 7.6 JDE Peet's N/A N/A N/A Total change in net sales 70.6 (0.5) 70.1 Reported Items Affecting Comparability Adjusted Impact of Foreign Currency Constant Currency Adjusted Third Quarter of 2026 Operating margin U.S. Refreshment Beverages 27.0 % 2.1 % 29.1 % — % 29.1 % U.S. Coffee 31.3 3.4 34.7 — 34.7 KDP International 24.5 0.3 24.8 (0.1) 24.7 JDE Peet's 10.9 7.2 18.1 N/A N/A Total operating margin 18.2 4.5 22.7 — 22.7 Reported Items Affecting Comparability Adjusted Third Quarter of 2025 Operating margin U.S. Refreshment Beverages 29.3 % 0.5 % 29.8 % U.S. Coffee 23.9 8.1 32.0 KDP International 26.4 0.3 26.7 JDE Peet's N/A N/A N/A Total operating margin 23.1 2.2 25.3 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CHANGE IN NET SALES AND OPERATING MARGIN - CONSOLIDATED AND SEGMENTS (UNAUDITED) A-12
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First Nine Months of 2026 Reported $ 8,689 46.6 % $ 2,717 14.6 % Items Affecting Comparability: Productivity 1 30 Mark-to-market (14) (109) Amortization of intangibles — 286 Stock compensation — 11 Non-routine legal matters — 12 Restructuring - 2023 CEO Succession and Associated Realignment — 1 Restructuring - Network Optimization 7 32 Chobani transactions — 51 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. 11 530 Integration of acquisitions, excluding JDE Peet’s — 5 Inventory step-up 361 361 Transaction costs, excluding JDE Peet's — 1 Legacy JDE Peet's transformation activities and corporate actions 3 38 Legacy JDE Peet's ERP system implementation and upgrade expenses — 19 Legacy JDE Peet's losses and costs associated with divestitures — 1 Adjusted $ 9,058 48.6 % $ 3,986 21.4 % Impact of foreign currency — % — % Constant currency adjusted 48.6 % 21.4 % First Nine Months of 2025 Reported $ 6,580 54.4 % $ 2,694 22.3 % Items Affecting Comparability: Productivity 95 126 Mark-to-market (70) (89) Amortization of intangibles — 101 Stock compensation — 10 Non-routine legal matters — 17 Restructuring - Network Optimization 2 38 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. — 13 Integration of acquisitions, excluding JDE Peet’s 1 35 Inventory step-up 17 17 Transaction costs, excluding JDE Peet's — 4 Adjusted $ 6,625 54.7 % $ 2,966 24.5 % (in millions, except %) Gross profit Gross margin Income from operations Operating margin KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED) Refer to pages A-16 through A-18 for reconciliations of reported net sales to constant currency net sales and adjusted income from operations to constant currency adjusted income from operations. A-13
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First Nine Months of 2026 Reported $ 1,091 $ (400) $ 152 $ 1,874 $ 442 23.6 % $ 1,294 $ (135) $ 0.85 Items Affecting Comparability: Productivity — — — 30 8 22 0.02 Mark-to-market (145) — — 36 24 12 0.01 Amortization of intangibles — — — 286 65 221 0.16 Stock compensation — — — 11 3 8 0.01 Amortization of fair value of debt adjustment (51) — — 51 13 38 0.03 Amortization of deferred financing costs (4) — — 4 1 3 — Non-routine legal matters — — — 12 3 9 0.01 Restructuring - 2023 CEO Succession and Associated Realignment — — — 1 — 1 — Restructuring - Network Optimization — — — 32 9 23 0.02 Chobani transactions — 400 (19) (330) (86) (244) (0.18) Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. (110) — (116) 756 147 609 0.45 Change in mandatory redemption liability for GHOST — (70) 70 19 51 0.04 Integration of acquisitions, excluding JDE Peet’s — — — 5 2 3 — Inventory step-up — 361 99 262 0.19 Transaction costs, excluding JDE Peet's — — — 1 1 — — Legacy JDE Peet's transformation activities and corporate actions — — — 38 9 29 0.02 Legacy JDE Peet's ERP system implementation and upgrade expenses — — — 19 4 15 0.01 Legacy JDE Peet's losses and costs associated with divestitures — — — 1 — 1 — Change in deferred tax liabilities related to goodwill and intangible assets — — — — (27) 27 0.02 Adjusted $ 781 $ — $ (53) $ 3,258 $ 735 22.6 % $ 2,385 $ (135) $ 1.65 Impact of foreign currency — % Constant currency adjusted 22.6 % (in millions, except % and per share data) Interest expense, net Gain on sale of equity method investment Other expense (income), net Income before provision for income taxes Provision for income taxes Effective tax rate Net income attributable to KDP Net income allocated to Preferred Investors Diluted earnings per share KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED) Diluted earnings per common share may not foot due to rounding. A-14
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First Nine Months of 2025 Reported $ 516 $ — $ (52) $ 2,230 $ 504 22.6 % $ 1,726 $ — $ 1.27 Items Affecting Comparability: Productivity — — — 126 32 94 0.07 Mark-to-market 14 — (32) (71) (9) (62) (0.05) Amortization of intangibles — — — 101 26 75 0.06 Stock compensation — — — 10 3 7 — Amortization of fair value of debt adjustment (11) — — 11 3 8 0.01 Amortization of deferred financing costs (1) — — 1 — 1 — Non-routine legal matters — — — 17 4 13 0.01 Restructuring - Network Optimization — — — 38 10 28 0.02 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. (5) — 28 (10) (2) (8) (0.01) Change in mandatory redemption liability for GHOST — — (60) 60 15 45 0.03 Integration of acquisitions, excluding JDE Peet’s — — — 35 4 31 0.02 Inventory step-up — — 17 1 16 0.01 Transaction costs, excluding JDE Peet's — — — 4 1 3 — Change in deferred tax liabilities related to goodwill and intangible assets — — — — (2) 2 — Adjusted $ 513 $ — $ (116) $ 2,569 $ 590 23.0 % $ 1,979 $ — $ 1.45 Change - adjusted 52.2 % 20.5 % 13.8 % Impact of foreign currency 0.4 % (0.8) % (0.7) % Change - Constant currency adjusted 52.6 % 19.7 % 13.1 % (in millions, except % and per share data) Interest expense, net Gain on sale of equity method investment Other expense (income), net Income before provision for income taxes Provision for income taxes Effective tax rate Net income attributable to KDP Net income allocated to Preferred Investors Diluted earnings per share KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED) Diluted earnings per common share may not foot due to rounding. A-15
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First Nine Months of 2026 Reported - Income from Operations $ 2,398 $ 628 $ 395 $ 227 $ (931) $ 2,717 Items Affecting Comparability: Productivity — 1 1 — 28 30 Mark-to-market — — — (25) (84) (109) Amortization of intangibles 37 67 6 176 — 286 Stock compensation — — — — 11 11 Non-routine legal matters — — — — 12 12 Restructuring - 2023 CEO Succession and Associated Realignment — — — — 1 1 Restructuring - Network Optimization 10 20 — — 2 32 Chobani transactions 51 — — — — 51 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. — 61 — 99 370 530 Integration of acquisitions, excluding JDE Peet’s 4 — — — 1 5 Inventory step-up — — — 361 — 361 Transaction costs, excluding JDE Peet's — — — — 1 1 Legacy JDE Peet's transformation activities and corporate actions — — — 36 2 38 Legacy JDE Peet's ERP system implementation and upgrade expenses — — — 19 — 19 Legacy JDE Peet's losses and costs associated with divestitures — — — 1 — 1 Adjusted - Income from Operations $ 2,500 $ 777 $ 402 $ 894 $ (587) $ 3,986 (in millions, except %) U.S. Refreshment Beverages U.S. Coffee KDP International JDE Peet's Unallocated corporate costs Total KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION INCOME FROM OPERATIONS - CONSOLIDATED AND SEGMENTS (UNAUDITED) A-16
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First Nine Months of 2025 Reported - Income from Operations $ 2,202 $ 672 $ 386 $ — $ (566) $ 2,694 Items Affecting Comparability: Productivity — 95 — — 31 126 Mark-to-market — — — — (89) (89) Amortization of intangibles 25 69 7 — — 101 Stock compensation — — — — 10 10 Non-routine legal matters — 1 — — 16 17 Restructuring - Network Optimization 4 32 — — 2 38 Integration of acquisitions, excluding JDE Peet’s 25 — — — 10 35 Inventory step-up 17 — — — — 17 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. — — — 13 13 Transaction costs, excluding JDE Peet's — — — — 4 4 Adjusted - Income from Operations $ 2,273 $ 869 $ 393 $ — $ (569) $ 2,966 Change - adjusted 10.0 % (10.6) % 2.3 % N/A 3.2 % 34.4 % Impact of foreign currency — % — % (6.1) % N/A (0.4) % (0.8) % Change - constant currency adjusted 10.0 % (10.6) % (3.8) % N/A 2.8 % 33.6 % (in millions, except %) U.S. Refreshment Beverages U.S. Coffee KDP International JDE Peet's Unallocated corporate costs Total KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION INCOME FROM OPERATIONS - CONSOLIDATED AND SEGMENTS (UNAUDITED) A-17
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Reported Impact of Foreign Currency Constant Currency First Nine Months of 2026 Change in net sales U.S. Refreshment Beverages 10.9 % — % 10.9 % U.S. Coffee (0.8) — (0.8) KDP International 16.4 (6.8) 9.6 JDE Peet's N/A N/A N/A Total change in net sales 53.9 (0.9) 53.0 Reported Items Affecting Comparability Adjusted Impact of Foreign Currency Constant Currency Adjusted First Nine Months of 2026 Operating margin U.S. Refreshment Beverages 28.0 % 1.2 % 29.2 % — % 29.2 % U.S. Coffee 22.5 5.3 27.8 — 27.8 KDP International 21.6 0.4 22.0 — 22.0 JDE Peet's 4.2 12.2 16.4 N/A N/A Total operating margin 14.6 6.8 21.4 — 21.4 Reported Items Affecting Comparability Adjusted First Nine Months of 2025 Operating margin U.S. Refreshment Beverages 28.5 % 1.0 % 29.5 % U.S. Coffee 23.9 7.0 30.9 KDP International 24.6 0.4 25.0 JDE Peet's N/A N/A N/A Total operating margin 22.3 2.2 24.5 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CHANGE IN NET SALES AND OPERATING MARGIN - CONSOLIDATED AND SEGMENTS (UNAUDITED) A-18
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Free cash flow is defined as net cash provided by operating activities adjusted for purchases of property, plant, and equipment, proceeds from sales of property, plant, and equipment, and certain items excluded for comparison to prior year periods. For the third quarter of 2026 and 2025, there were no certain items excluded for comparison to prior year periods. First Nine Months (in millions) 2026 2025 Net cash provided by operating activities $ 2,220 $ 1,279 Purchases of property, plant, and equipment (457) (338) Proceeds from sales of property, plant, and equipment 145 14 Free Cash Flow $ 1,908 $ 955 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION FREE CASH FLOW (UNAUDITED) A-19
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The Company reports its financial results in accordance with U.S. GAAP . In this section, management has included pro forma EBITDA, pro forma adjusted EBITDA, and pro forma management leverage ratio, each of which is a non- GAAP financial measure. Management believes that these pro forma non-GAAP financial measures provide useful information about the Company’s pro forma operating results. These pro forma non-GAAP financial measures are not an alternative to the unaudited pro forma statements of income prepared in accordance with U.S. GAAP and should be considered in addition to, and not as a substitute or superior to, such pro forma financial information. Using only the pro forma non-GAAP financial measures to analyze its performance would have material limitations because their calculation is based on our subjective determination regarding the nature and classification of events and circumstances that investors may find significant. For each of these pro forma non-GAAP financial measures, a reconciliation of the differences between the pro forma non-GAAP measure and the most directly comparable pro forma U.S. GAAP measure has been provided. As a result, the method used to calculate the Company's pro forma non-GAAP financial measures may differ from the methods used by other companies to calculate their non-GAAP measures. Specifically, investors should consider the following with respect to our unaudited pro forma financial results: Adjusted: Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability. Items affecting comparability: Defined as certain items that are excluded for comparison to prior year periods, adjusted for the tax impact as applicable. T ax impact is determined based upon an approximate rate for each item. For each period, management adjusts for (i) the unrealized mark-to-market impact of derivative instruments not designated as hedges in accordance with U.S. GAAP that do not have an offsetting risk reflected within the financial results; (ii) the amortization associated with definite-lived intangible assets; (iii) the amortization of the deferred financing costs associated with the DPS Merger and JDE Peet’s Acquisition; (iv) the amortization of the fair value adjustment of the senior unsecured notes obtained as a result of the DPS Merger and JDE Peet’s Acquisition; (v) stock compensation expense and the associated windfall tax benefit attributable to the matching awards made to employees who made an initial investment in KDP or JDE Peet’s prior to the Acquisition; (vi) transaction costs for significant business combinations (completed or abandoned), excluding costs related to the JDE Peet’s Acquisition; (vii) non-cash changes in deferred tax liabilities related to goodwill and intangible assets as a result of tax rate or apportionment changes; and (viii) other certain items that are excluded for comparison purposes to prior year periods. For the trailing twelve months ended September 30, 2026, the other certain items excluded for comparison purposes include (i) productivity expenses; (ii) costs related to significant non-routine legal matters, including the antitrust litigation; (iii) restructuring expenses associated with the Network Optimization program; (iv) restructuring adjustments associated with the 2023 CEO Succession and Associated Realignment; (v) impairment of intangible assets; (vi) legacy JDE Peet’s transformation activities and corporate actions; (vii) legacy JDE Peet’s ERP system implementation and upgrade expenses; (viii) activity related to JDE Peet’s total return equity swaps, which were not representative of the Company’s go-forward activities; (ix) the impact of the step-up of acquired inventory associated with acquisitions; (x) integration expenses associated with the GHOST and Dyla acquisitions; (xi) the change in our mandatory redemption liability for GHOST ; (xii) the impacts of various transactions with Chobani; (xiii) acquisition, integration, and financing costs associated with the anticipated acquisition of JDE Peet's and subsequent spin of Global Coffee Co; (xiv) legacy JDE Peet’s impacts from prior acquisitions; and (xv) legacy JDE Peet's losses and costs associated with divestitures. Pro Forma Adjusted EBITDA. Pro Forma Adjusted EBITDA is defined as Pro Forma EBITDA, as adjusted for items affecting comparability as described above. Pro Forma EBITDA is defined as Net income as adjusted for interest expense, net; provision for income taxes; depreciation expense; amortization of intangibles; and other amortization. Management believes that Pro Forma Adjusted EBITDA is useful for investors in evaluating the Company’s operating results and understanding the Company’s operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability. Pro Forma Management Leverage Ratio. Pro Forma Management leverage ratio is defined as the Company’s total unaudited pro forma principal amounts of Long-term obligations less cash and cash equivalents, divided by Pro Forma Adjusted EBITDA. Management believes that the Pro Forma Management leverage ratio is useful for investors in evaluating the Company’s liquidity and assessing the Company’s ability to meet its financial obligations. KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - PRO FORMA COMBINED (UNAUDITED) A-20
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(in millions, except for ratio) Last Twelve Months PRO FORMA ADJUSTED EBITDA RECONCILIATION - LAST TWELVE MONTHS Pro forma net income $ 1,796 Pro forma interest expense, net 1,609 Pro forma provision for income taxes 329 Pro forma depreciation expense 755 Pro forma other amortization 168 Pro forma amortization of intangibles 496 Pro forma EBITDA 5,153 Items affecting comparability: Productivity $ 85 Mark-to-market (100) Stock compensation 23 Non-routine legal matters 16 Restructuring - 2023 CEO Succession and Associated Realignment 2 Restructuring - Network Optimization 47 Impairment of intangible assets 79 Chobani transactions (330) Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. 855 Change in mandatory redemption liability for GHOST 224 Integration of acquisitions, excluding JDE Peet’s 10 Inventory step-up 361 Transaction costs, excluding JDE Peet's 9 Legacy JDE Peet's transformation activities and corporate actions 207 Legacy JDE Peet's ERP system implementation and upgrade expenses 37 Legacy JDE Peet's total return equity swaps (15) Legacy JDE Peet's prior acquisition impacts 151 Legacy JDE Peet's losses and costs associated with divestitures 8 Pro forma Adjusted EBITDA $ 6,822 September 30, 2026 Principal amounts of: Commercial paper notes $ 1,242 Senior unsecured notes 24,805 Delayed draw term loan 3,188 Total principal amounts 29,235 Less: Cash and cash equivalents 1,290 Total principal amounts less cash and cash equivalents $ 27,945 September 30, 2026 Pro forma Management Leverage Ratio 4.1 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION PRO FORMA ADJUSTED EBITDA AND MANAGEMENT LEVERAGE RATIO (UNAUDITED) A-21
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(in millions) Fourth Quarter of 2025 First Quarter of 2026 Second Quarter of 2026 Third Quarter of 2026 Last Twelve Months Pro forma net income $ 355 $ 279 $ 210 $ 952 $ 1,796 Pro forma interest expense, net 383 416 336 474 1,609 Pro forma provision for income taxes 48 (74) 95 260 329 Pro forma depreciation expense 175 167 208 205 755 Pro forma other amortization 43 34 48 43 168 Pro forma amortization of intangibles 123 124 124 125 496 Pro forma EBITDA $ 1,127 $ 946 $ 1,021 $ 2,059 $ 5,153 Items affecting comparability: Productivity $ 56 $ 13 $ 10 $ 6 $ 85 Mark-to-market 26 (109) 39 (56) (100) Stock compensation 8 9 4 2 23 Non-routine legal matters 4 4 2 6 16 Restructuring - 2023 CEO Succession and Associated Realignment 1 1 — — 2 Restructuring - Network Optimization 15 23 7 2 47 Impairment of intangible assets 79 — — — 79 Chobani transactions — — — (330) (330) Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. 188 220 323 124 855 Change in mandatory redemption liability for GHOST 154 24 22 24 224 Integration of acquisitions, excluding JDE Peet’s 5 2 2 1 10 Inventory step-up — — 314 47 361 Transaction costs, excluding JDE Peet's 8 — — 1 9 Legacy JDE Peet's transformation activities and corporate actions 112 57 19 19 207 Legacy JDE Peet's ERP system implementation and upgrade expenses 8 10 10 9 37 Legacy JDE Peet's total return equity swaps (15) — — — (15) Legacy JDE Peet's prior acquisition impacts — 151 — — 151 Legacy JDE Peet's losses and costs associated with divestitures 2 5 1 — 8 Pro forma Adjusted EBITDA $ 1,778 $ 1,356 $ 1,774 $ 1,914 $ 6,822 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION PRO FORMA ADJUSTED EBITDA - LAST TWELVE MONTHS (UNAUDITED) A-22
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KDP Historical (As Reported) Historical JDE Peet's as Converted Transaction Accounting Adjustments Note Pro Forma Combined Fourth Quarter of 2025 Net sales $ 4,499 $ 3,081 $ (46) (a) $ 7,534 Cost of sales 2,080 2,109 (23) (b) 4,166 Gross profit 2,419 972 (23) 3,368 Selling, general, and administrative expenses 1,459 734 106 (c) 2,299 Impairment of intangible assets 78 1 — 79 Other operating expense, net 1 29 — 30 Income from operations 881 208 (129) 960 Interest expense, net 238 31 114 (d), (e) 383 Other expense (income), net 186 (12) — 174 Income before provision for income taxes 457 189 (243) 403 Provision for income taxes 104 15 (71) (f), (g), (h) 48 Net income $ 353 $ 174 $ (172) $ 355 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CONDENSED COMBINED STATEMENT OF INCOME - PRO FORMA (UNAUDITED) A-23
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KDP (As Reported) Presentation Historical JDE Peet's Presentation Historical JDE Peet's (Euro) Reclassifications (Euro) Historical Reclassified JDE Peet's (Euro) Accounting Policy and Conversion Adjustments (Euro) Note Historical Reclassified and Converted Total (Euro) Historical JDE Peet's (USD) Fourth Quarter of 2025 Net sales 2,649 (2) iv, vii 2,647 3,081 Revenue 2,649 — Cost of sales 1,854 (42) iv, v, vi 1,812 2,109 Cost of sales 1,854 — Gross profit Gross profit 795 — 795 40 835 972 Selling, general, and administrative expenses 637 (6) ii, iv, v, vii 631 734 Selling, general, and administrative expenses 674 (37) Impairment of intangible assets 1 — 1 1 Selling, general, and administrative expenses — 1 Other operating expense (income), net 33 (8) v, vii, viii 25 29 Selling, general, and administrative expenses — 33 Income from operations Operating profit 121 3 124 54 178 208 Interest expense, net 57 (30) iii, iv, v, vi, vii, viii 27 31 Finance income (323) 6 Finance expense 318 56 Other (income) expense, net (54) 44 i, iii, iv, vii (10) (12) Selling, general, and administrative expenses — 2 Finance expense — (56) Share of net profit (loss) of associates 5 (5) Income before provision for income taxes Profit before income taxes 121 — 121 40 161 189 Provision for income taxes 24 (11) i, ii, iii, iv, v, vi, viii 13 15 Income tax expense 24 — Net income attributable to KDP Profit for the period 97 — 97 51 148 174 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION HISTORICAL JDE PEET'S STATEMENT OF INCOME (UNAUDITED) A-24
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(in millions, except %) Gross profit Gross margin Income from operations Operating margin Fourth Quarter of 2025 Pro forma $ 3,368 44.7 % $ 960 12.7 % Items Affecting Comparability: Productivity 41 55 Mark-to-market 14 26 Amortization of intangibles — 15 Stock compensation — 8 Non-routine legal matters — 4 Restructuring - 2023 CEO Succession and Associated Realignment — 1 Restructuring - Network Optimization 2 24 Impairment of intangible assets — 79 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. — 45 Integration of acquisitions, excluding JDE Peet’s — 5 Transaction costs, excluding JDE Peet's — 8 Legacy JDE Peet's transformation activities and corporate actions — 112 Legacy JDE Peet's ERP system implementation and upgrade expenses — 8 Pro forma Adjusted $ 3,425 45.5 % $ 1,350 17.9 % KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - PRO FORMA (UNAUDITED) A-25
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Fourth Quarter of 2025 Pro forma $ 383 $ 174 $ 403 $ 48 11.9 % $ 355 Items Affecting Comparability: Productivity — — 55 12 43 Mark-to-market (44) — 70 9 61 Amortization of intangibles — — 15 2 13 Stock compensation — — 8 1 7 Amortization of fair value of debt adjustment (4) — 4 1 3 Non-routine legal matters — — 4 1 3 Restructuring - 2023 CEO Succession and Associated Realignment — — 1 — 1 Restructuring - Network Optimization — — 24 5 19 Impairment of intangible assets — — 79 19 60 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. (18) (51) 114 12 102 Change in mandatory redemption liability for GHOST — (154) 154 37 117 Integration of acquisitions, excluding JDE Peet’s — — 5 5 — Inventory step-up — — — 1 (1) Transaction costs, excluding JDE Peet's — — 8 23 (15) Legacy JDE Peet's transformation activities and corporate actions — — 112 31 81 Legacy JDE Peet's ERP system implementation and upgrade expenses — — 8 2 6 Legacy JDE Peet's total return equity swaps — 15 (15) — (15) Legacy JDE Peet's losses and costs associated with divestitures — (2) 2 1 1 Pro forma Adjusted $ 317 $ (18) $ 1,051 $ 210 20.0 % $ 841 (in millions, except % and per share data) Interest expense, net Other expense (income), net Income before provision for income taxes Provision for income taxes Effective tax rate Net income KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - PRO FORMA (UNAUDITED) A-26
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KDP Historical (As Reported) Historical JDE Peet's as Converted Transaction Accounting Adjustments Note Pro Forma Combined First Quarter of 2026 Net sales $ 3,976 $ 2,864 $ (21) (a) $ 6,819 Cost of sales 1,878 2,011 (24) (b) 3,865 Gross profit 2,098 853 3 2,954 Selling, general, and administrative expenses 1,342 816 69 (c) 2,227 Income from operations 756 37 (66) 727 Interest expense, net 281 32 103 (d), (e) 416 Other expense (income), net 118 (12) — 106 Income before provision for income taxes 357 17 (169) 205 Provision for income taxes 87 (115) (46) (f), (g), (h) (74) Net income $ 270 $ 132 $ (123) $ 279 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CONDENSED COMBINED STATEMENT OF INCOME - PRO FORMA (UNAUDITED) A-27
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KDP (As Reported) Presentation Historical JDE Peet's Presentation Historical JDE Peet's (Euro) Reclassifications (Euro) Historical Reclassified JDE Peet's (Euro) Accounting Policy and Conversion Adjustments (Euro) Note Historical Reclassified and Converted Total (Euro) Historical JDE Peet's (USD) First Quarter of 2026 Net sales 2,447 (2) vi 2,445 2,864 Revenue 2,447 — Cost of sales 1,749 (32) vi 1,717 2,011 Cost of sales 1,749 — Gross profit Gross profit 698 — 698 34 732 857 Selling, general, and administrative expenses 711 (14) ii, v, vii 697 816 Selling, general, and administrative expenses 720 (9) Other operating expense (income), net 9 (9) vii, viii — — Selling, general, and administrative expenses — 9 Income from operations Operating profit (22) — (22) 57 35 40 Interest expense, net 20 7 iii, v, vi, vii, viii 27 32 Finance income (27) 5 Finance expense 37 5 Other (income) expense, net (10) — i, iii, vii (10) (12) Finance income — (5) Finance expense — (5) Income before provision for income taxes Profit before income taxes (12) — (32) 47 15 17 Provision for income taxes (96) (2) i, ii, iii, vi, viii (98) (115) Income tax expense (96) — — Net income Profit for the period (12) — 64 49 113 132 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION HISTORICAL JDE PEET'S STATEMENT OF INCOME (UNAUDITED) A-28
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(in millions, except %) Gross profit Gross margin Income from operations Operating margin First Quarter of 2026 Pro forma Consolidated $ 2,954 43.3 % $ 727 10.7 % Items Affecting Comparability: Productivity 1 14 Mark-to-market (40) (109) Amortization of intangibles — 14 Stock compensation — 9 Non-routine legal matters — 4 Restructuring - 2023 CEO Succession and Associated Realignment — 1 Restructuring - Network Optimization 4 23 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. 6 89 Integration of acquisitions, excluding JDE Peet’s — 2 Legacy JDE Peet's transformation activities and corporate actions — 57 Legacy JDE Peet's ERP system implementation and upgrade expenses — 10 Legacy JDE Peet's prior acquisition impacts — 151 Pro forma Adjusted $ 2,925 42.9 % $ 992 14.5 % KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - PRO FORMA (UNAUDITED) A-29
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(in millions, except % and per share data) Interest expense, net Other expense (income), net Income before provision for income taxes Provision for income taxes Effective tax rate Net income First Quarter of 2026 Pro forma Consolidated $ 416 $ 106 $ 205 $ (74) (36.1) %$ 279 Items Affecting Comparability: Productivity — — 14 3 11 Mark-to-market (1) — (108) (7) (101) Amortization of intangibles — — 14 2 12 Stock compensation — — 9 6 3 Amortization of fair value of debt adjustment (3) — 3 1 2 Non-routine legal matters — — 4 1 3 Restructuring - 2023 CEO Succession and Associated Realignment — — 1 — 1 Restructuring - Network Optimization — — 23 4 19 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. (99) (111) 299 39 260 Change in mandatory redemption liability for GHOST — (24) 24 5 19 Integration of acquisitions, excluding JDE Peet’s — — 2 — 2 Legacy JDE Peet's transformation activities and corporate actions — — 57 11 46 Legacy JDE Peet's ERP system implementation and upgrade expenses — — 10 2 8 Legacy JDE Peet's prior acquisition impacts — — 151 155 (4) Legacy JDE Peet's losses and costs associated with divestitures — (5) 5 1 4 Pro forma Adjusted $ 313 $ (34) $ 713 $ 149 20.9 % $ 564 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - PRO FORMA (UNAUDITED) A-30
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(in millions, except %) Gross profit Gross margin Income from operations Operating margin Second Quarter of 2026 Reported $ 3,066 41.9 % $ 628 8.6 % Items Affecting Comparability: Productivity — 10 Mark-to-market 7 39 Amortization of intangibles — 124 Stock compensation — 4 Non-routine legal matters — 2 Restructuring - Network Optimization 3 7 Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. 3 318 Integration of acquisitions, excluding JDE Peet’s — 2 Inventory step-up 314 314 Legacy JDE Peet's transformation activities and corporate actions 3 19 Legacy JDE Peet's ERP system implementation and upgrade expenses — 10 Legacy JDE Peet's losses and costs associated with divestitures — 1 Adjusted $ 3,396 46.5 % $ 1,478 20.2 % KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED) A-31
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(in millions, except % and per share data) Interest expense, net Other (income) expense, net Income before provision for income taxes Provision for income taxes Effective tax rate Net income attributable to KDP Net income allocated to Preferred Investors Diluted earnings per share Second Quarter of 2026 Reported $ 336 $ (13) $ 305 $ 95 31.1 % $ 142 $ (82) $ 0.04 Items Affecting Comparability: Productivity — — 10 7 3 — Mark-to-market (2) — 41 — 41 0.03 Amortization of intangibles — — 124 28 96 0.07 Stock compensation — — 4 2 2 — Amortization of fair value of debt adjustment (24) — 24 6 18 0.01 Amortization of deferred financing costs (2) — 2 1 1 — Non-routine legal matters — — 2 — 2 — Restructuring - 2023 CEO Succession and Associated Realignment — — — 2 (2) — Restructuring - Network Optimization — — 7 3 4 — Acquisition, integration, and financing costs - Acquisition of JDE Peet's and Spin of Global Coffee Co. (3) (5) 326 64 262 0.19 Change in mandatory redemption liability for GHOST — (22) 22 7 15 0.01 Integration of acquisitions, excluding JDE Peet’s — — 2 1 1 — Inventory step-up — — 314 83 231 0.17 Transaction costs, excluding JDE Peet's — — — 6 (6) — Legacy JDE Peet's transformation activities and corporate actions — — 19 — 19 0.01 Legacy JDE Peet's ERP system implementation and upgrade expenses — — 10 2 8 0.01 Legacy JDE Peet's losses and costs associated with divestitures — — 1 — 1 — Change in deferred tax liabilities related to goodwill and intangible assets — — — (27) 27 0.02 Adjusted $ 305 $ (40) $ 1,213 $ 280 23.1 % $ 865 $ (82) $ 0.57 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED) A-32
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The following adjustments have been made to prepare the unaudited pro forma financial information to give the effect to the following: • Application of the acquisition method of accounting under the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 805, Business Combinations (“ASC 805”), where assets and liabilities of JDE Peet’s will be recorded by KDP at their respective fair values at the date of completion of the JDE Peet's Acquisition; • Adjustments to reflect the following debt and equity transactions used to raise proceeds for the JDE Peet's Acquisition; ▪ Delayed Draw T erm Loan of $3.6 billion. ▪ Senior Unsecured Notes of approximately $6 billion. ▪ JV Investment of $4 billion. ▪ Issuance of Convertible Preferred Stock of $4.5 billion. • Adjustments to reflect transactions costs in connection with the JDE Peet's Acquisition; and • Adjustments to reflect the related tax effects for the preliminary pro forma adjustments. Acquisition Adjustments: (a) Elimination of Net sales between KDP and JDE Peet’s as part of the JDE Peet’s Acquisition. The transactions are assumed to be at-market. (b) Reflects the adjustments to Cost of sales related to (i) preliminary fair value step-up adjustment to inventory, which is reflected in Cost of sales during the year as the related inventory is expected to be sold within twelve months following the closing of the JDE Peet’s Acquisition, (ii) the removal of JDE Peet’s historical amortization and depreciation expense recorded within Cost of sales during the period, (iii) the addition of depreciation expense recorded within Cost of sales from acquired Property, plant, and equipment and (iv) elimination of Cost of sales between KDP and JDE Peet’s that are eliminated as part of the JDE Peet’s Acquisition (the transactions are assumed to be at-market). (c) Reflects the adjustments to Selling, general, and administrative expenses (“SG&A”), (i) including the removal of JDE Peet’s portion of historical amortization and depreciation expense recorded in SG&A, (ii) the addition of amortization expense related to definite-lived brands, customer and distributor relationships, and acquired technology recorded within SG&A, (iii) the addition of depreciation expense related to Property, plant, and equipment, (iv) recognition of expenses for estimated transaction costs and (v) recognition of post combination stock-based compensation expense. KDP is still in the process of evaluating the fair value of the definite-lived intangible assets. Any resulting change in the fair value would have a direct impact on amortization expense. The amortization of definite-lived intangible assets is calculated on a straight-line basis. The amortization is based on the periods over which the economic benefits of the intangible assets are expected to be realized, which are subject to adjustment as additional information becomes available. (d) Reflects the adjustment to Interest expense, net related to the preliminary fair value adjustment to JDE Peet’s historical debt. (e) Reflects the Interest expense and amortization of issuance costs related to the Debt Financing Transactions in connection with the JDE Peet’s Acquisition: KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION TRANSACTION ACCOUNTING ADJUSTMENTS - PRO FORMA (UNAUDITED) A-33
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(f) T o record the income tax impact of the pro forma transaction accounting adjustments, excluding non- deductible transaction costs and non-deductible stock compensation, utilizing the blended statutory income tax rates, based on regional pre-tax data provided, of approximately 25% for the three months ended March 31, 2026, December 31, 2025 and September 30, 2025. Deductibility of estimated transaction costs was analyzed under US income tax law. Transaction costs deemed facilitative are non-deductible for US federal income tax purposes. Stock compensation is non-deductible under Netherlands local tax law and therefore, no tax benefit has been recorded as a pro forma income tax adjustment. Because the tax rates used for the unaudited pro forma condensed combined financial information are estimated, the blended rate will likely vary from the actual effective rate in periods subsequent to completion of the JDE Peet’s Acquisition. This determination is preliminary and subject to change based upon the final determination of the fair value of the acquired assets and assumed liabilities. (g) Represents the estimated tax impact of income allocated from a taxable entity to a non-taxable entity related to non-controlling interest within the Pod Manufacturing JV, which is not subject to federal income tax. (h) Represents certain nonrecurring tax expenses related to implementing the Pod Manufacturing JV investment structure, including withholding taxes and the recognition of a valuation allowance on specific deferred tax assets. KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION TRANSACTION ACCOUNTING ADJUSTMENTS - PRO FORMA (UNAUDITED) A-34
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The historical financial statements of JDE Peet’s have been converted from IFRS to U.S. GAAP . As IFRS differs in certain respects from U.S. GAAP , the following adjustments have been made to align JDE Peet’s historical accounting policies under IFRS to KDP’s accounting policies under U.S. GAAP for purposes of this pro forma presentation: (i) Record the difference in pension accounting treatment from IFRS Accounting Standards to U.S. GAAP , and corresponding deferred tax adjustment. (ii) Reflect the tax effects of adjustments made to conform with U.S. GAAP , including items related to intra- entity transfers of inventory, recognition of deferred taxes on non-qualifying assets, the reversal of backward tracing, outside basis differences, and uncertain tax positions. (iii) Reflect the impact of business combination foreign exchange and fair value interest rate hedges not eligible for hedge accounting under U.S. GAAP , reclassifying amounts from other comprehensive income to the statement of income. (iv) Reflect difference in hyperinflationary accounting from IFRS Accounting Standards to U.S. GAAP for operations in Turkey. Under U.S. GAAP , the financial statements of a foreign operation in a highly inflationary economy are remeasured as if the parent’s reporting currency were its functional currency. (v) Reclassify the operating lease amortization expense and finance charges to operating lease cost. Under U.S. GAAP , lessees distinguish between finance leases and operating leases for reporting purposes. For operating leases, the right-of-use asset and corresponding lease liability are recognized on the balance sheet, and the related lease expense is presented on a straight-line basis. (vi) Record the impact of accounting for leases embedded in revenue arrangements under U.S. GAAP . U.S. GAAP uses a rule-based classification model to categorize lessor leases as either operating, direct financing, or sales-type leases. The adjustment reclassifies certain leases from operating leases under IFRS Accounting Standards to sales-type leases under U.S. GAAP . (vii) Reflect the reclassifications of historical JDE Peet’s financial statement line items to conform to the expected financial statement line items of the combined company following the JDE Peet’s Acquisition. (viii) Reflect the reclassification of certain trade payables as structured payables in order to conform to KDP’s accounting policy along with the corresponding reclassification of related expenses in the statement of income. KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION ACCOUNTING POLICY AND CONVERSION ADJUSTMENTS - PRO FORMA (UNAUDITED) A-35