ADMA BIOLOGICS, INC.

Previous wording

We are also developing a pipeline of plasma-derived therapeutics, including a product related to its issued U.S. Patent Nos. 10,259,865, 11,084,870, 11,897,943 and 12,612,450 pertaining to methods of treatment and prevention ofS. pneumoniae infection using an immunoglobulin manufactured to contain standardized antibodies toS. pneumoniae serotypes. We have successfully completed production of a pilot-scale batch and are conducting animal studies for ourS. pneumoniae hyperimmune globulin program, SG-001. We anticipate submitting a pre-Investigational New Drug (“IND”) package to the FDA in fiscal year 2026, which could enable us to progress development of SG-001 directly into a registrational clinical trial.

Current wording

We are also developing a pipeline of plasma-derived therapeutics, including a product related to our issued U.S. Patent Nos. 10,259,865, 11,084,870, 11,897,943 and 12,612,450 pertaining to methods of treatment and prevention of S. pneumoniae infection using an immunoglobulin manufactured to contain standardized antibodies to S. pneumoniae serotypes. We have successfully completed production of a pilot-scale batch and are conducting animal studies for our S. pneumoniae hyperimmune globulin program, SG-001. During the third quarter of 2026, we submitted a pre-Investigational New Drug (“IND”) package to the FDA. In October 2026, we received constructive feedback from the FDA on our pre-IND meeting package regarding the proposed clinical development strategy, including key elements of the planned clinical study. The FDA also indicated that our proposed assay would be acceptable for product testing, subject to appropriate validation. Based on the FDA’s feedback, we intend to incorporate the FDA’s recommendations into the final clinical protocol and advance preparations for an IND submission. We believe the preclinical findings and recently received FDA feedback on our pre-IND meeting package support continued development of SG-001.

Previous wording

Beginning in the second half of 2025 and continuing into 2026, new FDA-approved IVIG products, and other pharmaceutical products which compete with certain IVIG product uses, entered the market with aggressive pricing tactics, including extended payment terms, rebates and discounts. This has led to increases in raw material plasma supply and finished goods inventory across the distribution network. This created competitive intensity and distribution recalibration across the industry which has impacted our results for the first half of 2026, mainly as it relates to BIVIGAM, but broadly across the IVIG complex. If this trend of competitive pricing tactics continues, future results and market adoption for our products may be adversely impacted.

Current wording

Beginning in the second half of 2025 and continuing in 2026, new FDA-approved non-ADMA IVIG products, and other pharmaceutical products which compete with certain IVIG product uses entered the market with aggressive pricing tactics, including extended payment terms, rebates and discounts. This has led to increases in raw material plasma supply and finished goods inventory across the distribution network. This created competitive intensity and distribution recalibration across the industry which has impacted our results for the first three quarters of 2026, mainly as it relates to BIVIGAM, but broadly across the IVIG complex. If this trend of competitive pricing tactics continues, future results and market adoption for our products may be adversely impacted.

Previous wording

ASCENIV is approved for the treatment of PIDD or PI, a class of inherited genetic disorders that causes a deficient or absent immune system in adults and children ages two and above. Our pivotal Phase III clinical trial in 59 PIDD patients met the primary endpoint of no Serious Bacterial Infections (“SBI”) reported during 12 months of treatment. Secondary efficacy endpoints further demonstrated the benefits of ASCENIV in the low incidence of infection, therapeutic antibiotic use, reduced days missed from work, school and daycare and reduced unscheduled medical visits and hospitalizations. We believe this clinical data together with the FDA approval of ASCENIV for the treatment of PIDD better positions ADMA to potentially further evaluate ASCENIV in immune-compromised patients infected with or at-risk for RSV infection or potentially other respiratory viral pathogens at an appropriate time. In the future, we may elect to work with the FDA and the immunology and infectious disease community to design an appropriate clinical trial to evaluate the use of ASCENIV in this patient population. Following FDA approval in April 2019, commercial sales of ASCENIV commenced in October 2019 and in 2023 we commenced manufacturing ASCENIV at the 4,400 liter production scale. This expansion has improved the product’s margin profile and increased plant production capacity as fewer batches are needed to support our revenue goals. ASCENIV’s prescriber and patient base continued to expand during 2024 and 2025, which drove record end-user utilization for this product. These elevated demand trends have sustained into 2026, and we currently expect that this product’s rapid growth will continue throughout 2026 and beyond.

Current wording

ASCENIV is approved for the treatment of PIDD or PI, a class of inherited genetic disorders that causes a deficient or absent immune system in adults and children ages two and above. Our pivotal Phase III clinical trial in 59 PIDD patients met the primary endpoint of no Serious Bacterial Infections reported during 12 months of treatment. Secondary efficacy endpoints further demonstrated the benefits of ASCENIV in the low incidence of infection, therapeutic antibiotic use, reduced days missed from work, school and daycare and reduced unscheduled medical visits and hospitalizations. We believe this clinical data together with the FDA approval of ASCENIV for the treatment of PIDD better positions ADMA to potentially further evaluate ASCENIV in immune-compromised patients infected with or at-risk for RSV infection or potentially other respiratory viral pathogens at an appropriate time. In the future, we may elect to work with the FDA and the immunology and infectious disease community to design an appropriate clinical trial to evaluate the use of ASCENIV in this patient population. Following FDA approval in April 2019, commercial sales of ASCENIV commenced in October 2019 and in 2023 we commenced manufacturing ASCENIV at the 4,400 liter production scale. This expansion has improved the product’s margin profile and increased plant production capacity as fewer batches are needed to support our revenue goals. ASCENIV’s prescriber and patient base continued to expand during 2024 and 2025, which drove record end-user utilization for this product. These elevated demand trends have sustained during the first three quarters of 2026, and we currently expect that this product’s rapid growth will continue in the fourth quarter of 2026 and beyond.

Previous wording

In May 2026, we announced that the FDA approved the expansion of ASCENIV’s label to include the pediatric setting for those two years of age and older.

Current wording

In May 2026, we announced that the FDA approved the expansion of ASCENIV’s label in the United States to include the pediatric setting for those two years of age and older.

Previous wording

BIVIGAM is a plasma-derived IVIG product that contains a broad range of antibodies similar to those found in normal human plasma. These antibodies are directed against bacteria and viruses and help to protect PI patients against serious infections. BIVIGAM is a purified, sterile, ready-to-use preparation of concentrated human Immunoglobulin G antibodies indicated for the treatment of PI, a group of genetic disorders. This includes, but is not limited to, the humoral immune defect in common variable immunodeficiency, X-linked agammaglobulinemia, congenital agammaglobulinemia, Wiskott-Aldrich syndrome and severe combined immunodeficiency. Based on recent estimates, these disorders are no longer considered to be very rare, with as many as one in every 2,000 people in the United States having some form of PI.

Current wording

BIVIGAM is a plasma-derived IVIG product that contains a broad range of antibodies similar to those found in normal human plasma. These antibodies are directed against bacteria and viruses and help to protect PI patients against serious infections. BIVIGAM is a purified, sterile, ready-to-use preparation of concentrated human Immunoglobulin G antibodies indicated for the treatment of PI, a group of genetic disorders. This includes, but is not limited to, the humoral immune defect in common variable immunodeficiency, X-linked agammaglobulinemia, congenital agammaglobulinemia, Wiskott-Aldrich syndrome and severe combined immunodeficiency. Based on recent estimates, these disorders are no longer considered to be very rare, with as many as one in every 1,200 people in the United States having some form of PI.

Previous wording

In December 2023, we announced that the FDA approved the expansion of BIVIGAM’s label in the United States to now include the pediatric setting for those two years of age and older.

Current wording

In December 2023, we announced that the FDA approved the expansion of BIVIGAM’s label in the United States to include the pediatric setting for those two years of age and older.

Previous wording

We recorded total revenues of $124.4 million for the three months ended June 30, 2026, as compared to $122.0 million for the three months ended June 30, 2025, an increase of $2.4 million, or approximately 2.0%. Revenues by product for the three months ended June 30, 2026 and 2025 were as follows:

Current wording

We recorded total revenues of $141.1 million for the three months ended September 30, 2026, as compared to $134.2 million for the three months ended September 30, 2025, an increase of $6.9 million, or approximately 5.1%. Revenues by product for the three months ended September 30, 2026 and 2025 were as follows:

Previous wording

Cost of product revenue was $38.1 million for the three months ended June 30, 2026, as compared to $54.8 million for the three months ended June 30, 2025. This decrease is primarily attributable to lower volume of BIVIGAM and lower product losses, partially offset by the increase in ASCENIV volume.

Current wording

Cost of product revenue was $41.2 million for the three months ended September 30, 2026, as compared to $58.6 million for the three months ended September 30, 2025. This decrease is primarily attributable to the lack of normal source plasma sales and lower BIVIGAM sales volume in 2026, partially offset by higher ASCENIV sales volume.

Previous wording

For the three months ended June 30, 2026, we had gross profit of $86.3 million, as compared to $67.2 million for the same period of a year ago, which represents gross margin in the second quarter of 2026 of 69.4%, as compared to 55.1% in the second quarter of 2025. The improvement in gross margin is primarily driven by the favorable product mix, along with the margin benefits of the yield enhancement manufacturing process.

Current wording

For the three months ended September 30, 2026, we had gross profit of $99.9 million, as compared to $75.6 million for the same period of a year ago, which represented gross margin in the third quarter of 2026 of 70.8%, as compared to 56.3% in the third quarter of 2025. The improvement in gross margin is primarily driven by the favorable product mix with proportionally higher sales of ASCENIV at a higher margin, along with the margin benefits of the yield enhancement manufacturing process.

Previous wording

Research and development expenses totaled $6.0 million for thesecond quarter of 2026, as compared to $1.0 million for thesecond quarter of 2025. The increase of $5.0 million is mainly due to the ramp-up of clinical development and trial activities related to our SG-001 development project.

Current wording

Research and development expenses totaled $4.5 million for the third quarter of 2026, as compared to $1.5 million for the third quarter of 2025. The increase of $3.0 million is mainly attributed to the research and development activities associated with SG-001.

Previous wording

Plasma center operating expenses, which primarily consist of compensation and benefits for plasma center management and administrative staff, decreased from $1.2 million for the three months ended June 30, 2025 to $1.0 million for the three months ended June 30, 2026, primarily due to the sale of three plasma centers in the first quarter of 2026.

Current wording

Plasma center operating expenses, which primarily consist of compensation and benefits for plasma center management and administrative staff, decreased from $1.3 million for the three months ended September 30, 2025 to $1.1 million for the three months ended September 30, 2026, primarily due to the sale of three plasma centers in the first quarter of 2026 and lower related operating costs.

Previous wording

Amortization expense mainly pertains to internally developed software and was $0.1 million and less than $0.1 million for the three months ended June 30, 2026 and 2025, respectively.

Current wording

Amortization expense mainly pertains to internally developed software and was less than $0.1 million for both the three months ended September 30, 2026 and 2025.

Previous wording

Selling, general and administrative (“SG&A”) expenses were $26.7 million for the three months ended June 30, 2026. This increase of $4.5 million, or 20.4%, was primarily driven by higher employee-related costs, increased software maintenance costs and higher professional and legal fees associated with ongoing litigation and related matters and strategic initiatives supporting corporate growth.

Current wording

Selling, general and administrative (“SG&A”) expenses were $26.6 million for the three months ended September 30, 2026, as compared to $21.8 million for the three months ended September 30, 2025. This increase of $4.8 million, or 21.9%, was primarily driven by higher employee-related costs, increased software costs and higher professional and legal fees associated with ongoing litigation and related matters.

Previous wording

Interest and other income for the three months ended June 30, 2026 was $1.2 million, as compared to $0.4 million for the three months ended June 30, 2025, driven by the higher average cash balances in 2026 and refinement of our cash investment strategy.

Current wording

Interest and other income for the three months ended September 30, 2026 was $1.3 million, as compared to $0.4 million for the three months ended September 30, 2025, driven by the higher average cash balances in 2026 and refinement of our cash investment strategy.

Previous wording

Interest expense for the three months ended June 30, 2026 was $3.4 million, as compared to $1.8 million for the three months ended June 30, 2025. This increase of $1.6 million was driven by the March 2026 borrowing under our credit facility to support the accelerated share repurchase agreement (the "ASR Agreement").

Current wording

Interest expense for the three months ended September 30, 2026 was $3.4 million, as compared to $1.7 million for the three months ended September 30, 2025. This increase of $1.7 million was driven by the March 2026 borrowing under our current credit facility with JPMorgan Chase Bank, N.A. and certain other lenders party thereto (“JPMorgan”) to support the accelerated share repurchase agreement (the "ASR Agreement").

Previous wording

We recognized no loss on extinguishment of debt for the three months ended June 30, 2026, as compared to a loss of $1.2 million for the three months ended June 30, 2025. Loss on extinguishment of debt recorded during the three months ended June 30, 2025 was driven by the early partial paydown of debt outstanding under our former senior secured credit facility with Ares Capital Corporation and certain affiliated credit funds (the “Ares Credit Agreement”).

Current wording

Loss on extinguishment of debt recorded during the three months ended September 30, 2025 was driven by the prepayment penalties and write-off of the remaining unamortized debt issuance costs and discounts associated with our former senior secured credit facility with Ares Capital Corporation and certain affiliated credit funds (the “Ares Credit Agreement”).

Previous wording

Other expense was less than $0.1 million for the three months ended June 30, 2026 and $0.1 million for the three months ended June 30, 2025.

Current wording

Other expense was less than $0.1 million for both the three months ended September 30, 2026 and 2025.

Previous wording

The provision for income taxes of $12.4 million for the three months ended June 30, 2026 represented an effective tax rate of 24.7%, as compared to the provision of $5.9 million for the three months ended June 30, 2025, with an effective tax rate of 14.7%. The increase was primarily driven by lower year-over-year excess tax benefits on stock-based compensation.

Current wording

The provision for income taxes of $15.7 million for the three months ended September 30, 2026 represented an effective tax rate of 24.0%, as compared to the provision of $11.1 million for the three months ended September 30, 2025, with an effective tax rate of 23.3%. The increase was primarily driven by lower year-over-year excess tax benefits on stock-based compensation.

Previous wording

The following table presents a summary of the changes in our results of operations for the six months ended June 30, 2026, compared to the six months ended June 30, 2025:

Current wording

The following table presents a summary of the changes in our results of operations for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025:

Previous wording

We recorded total revenues of $238.9 million for the six months ended June 30, 2026, as compared to $236.8 million for the six months ended June 30, 2025, an increase of $2.1 million, or approximately 0.9%. Revenues by product for the six months ended June 30, 2026 and 2025 were as follows:

Current wording

We recorded total revenues of $380.0 million for the nine months ended September 30, 2026, as compared to $371.0 million for the nine months ended September 30, 2025, an increase of $9.0 million, or approximately 2.4%. Revenues by product for the nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

The increase in total revenue was primarily driven by the $40.8 million increase in ASCENIV volume reflecting robust and continued market acceptance. This increase was offset by the $36.4 million decrease in the volume of BIVIGAM driven by the competitive pressures in the standard immune globulin industry.

Current wording

The increase in total revenue for the nine months ended September 30, 2026 as compared to the prior-year period was primarily driven by the $70.1 million increase in ASCENIV volume reflecting robust and continued market acceptance. This increase was offset by the $44.8 million decrease in BIVIGAM volume due to the market penetration of non-ADMA IVIG products and by the reduction of $16.8 million in sales of normal source plasma.

Previous wording

Cost of product revenue was $71.9 million for the six months ended June 30, 2026, as compared to $108.5 million for the six months ended June 30, 2025. This decrease is primarily attributable to lower volume of BIVIGAM and lower product losses, partially offset by the increase in ASCENIV volume.

Current wording

Cost of product revenue was $113.0 million for the nine months ended September 30, 2026, as compared to $167.1 million for the nine months ended September 30, 2025. This decrease is primarily attributable to the lack of normal source plasma sales and lower BIVIGAM sales volume in 2026, partially offset by higher ASCENIV sales volume.

Previous wording

For the six months ended June 30, 2026, we had gross profit of $167.0 million, as compared to $128.3 million for the same period of a year ago, which represents gross margin in the first half of 2026 of 69.9%, as compared to 54.2% in the first half of 2025. The improvement in gross margin is primarily driven by favorable product mix in 2026, along with the margin benefits of the yield enhancement manufacturing process optimizations.

Current wording

For the nine months ended September 30, 2026, we had gross profit of $266.9 million, as compared to $203.9 million for the same period of a year ago, which represents gross margin of 70.3%, as compared to 55.0% for the same period of 2025. The improvement in gross margin is primarily driven by favorable product mix with proportionally higher sales of ASCENIV at a higher margin in 2026, along with the margin benefits of the yield enhancement manufacturing process optimizations.

Previous wording

Research and development expenses totaled $8.6 million for the six months ended June 30, 2026, as compared to $1.9 million for the six months ended June 30, 2025. The increase is mainly due to the ramp-upof clinical development and clinical trial activities related to our SG-001 development project.

Current wording

Research and development expenses totaled $13.1 million for the nine months ended September 30, 2026, as compared to $3.4 million for the nine months ended September 30, 2025. The increase is mainly due to the ramp-up of clinical development and clinical trial activities related to SG-001.

Previous wording

Plasma center operating expenses, which primarily consist of compensation and benefits for plasma center management and administrative staff, decreased from $2.4 million for the six months ended June 30, 2025 to $2.1 million for the six months ended June 30, 2026. The decrease is primarily due to the sale of three plasma centers in the first quarter of 2026.

Current wording

Plasma center operating expenses, which primarily consist of compensation and benefits for plasma center management and administrative staff, decreased from $3.7 million for the nine months ended September 30, 2025 to $3.1 million for the nine months ended September 30, 2026. The decrease is primarily due to the sale of three plasma centers in the first quarter of 2026 and lower related operating costs.

Previous wording

Amortization expense mainly pertains to internally developed software and was $0.1 million and less than $0.1 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Amortization expense mainly pertains to internally developed software and was $0.2 million and $0.1 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Gain on sale of plasma centers was $8.0 million for the six months ended June 30, 2026, as result of the sale of three of our plasma centers completed during the first quarter of 2026.

Current wording

Gain on sale of plasma centers was $8.0 million for the nine months ended September 30, 2026, as a result of the sale of three of our plasma centers completed during the first quarter of 2026.

Previous wording

SG&A expenses were $53.5 million for the six months ended June 30, 2026, an increase of $7.2 million as compared to the six months ended June 30, 2025. The increase is primarily driven by the increase in personnel costs, including stock-based compensation, and an increase in professional and consulting fees associated with ongoing litigation and related matters and strategic initiatives supporting corporate growth.

Current wording

SG&A expenses were $80.0 million for the nine months ended September 30, 2026, an increase of $11.9 million as compared to $68.1 million for the nine months ended September 30, 2025. The increase is primarily driven by the increase in personnel costs, including stock-based compensation, and an increase in professional and consulting fees associated with ongoing litigation and related matters and costs associated with strategic initiatives supporting corporate growth.

Previous wording

Interest and other income for the six months ended June 30, 2026 was $2.3 million, as compared to $1.0 million for thesix months ended June 30, 2025, driven by the higher average cash balances in 2026 and refinement of our cash investment strategy.

Current wording

Interest and other income for the nine months ended September 30, 2026 was $3.6 million, as compared to $1.4 million for the nine months ended September 30, 2025, driven by the higher average cash balances in 2026 and refinement of our cash investment strategy.

Previous wording

Interest expense for the six months ended June 30, 2026 was $5.5 million, as compared to $3.8 million for the six months ended June 30, 2025, driven by higher average outstanding debt balances under our senior secured credit facility.

Current wording

Interest expense for the nine months ended September 30, 2026 was $9.0 million, as compared to $5.5 million for the nine months ended September 30, 2025, driven by higher average outstanding debt balances under our senior secured credit facility with JPMorgan.

Previous wording

We recognized no loss on extinguishment of debt during the six months ended June 30, 2026. Loss on extinguishment of debt of $1.2 million recognized during the six months ended June 30, 2025 was driven by the early partial paydown of debt outstanding under the Ares Credit Agreement.

Current wording

We recognized no loss on extinguishment of debt during the nine months ended September 30, 2026. Loss on extinguishment of debt of $3.3 million recognized during the nine months ended September 30, 2025 was driven by the early partial paydown of debt outstanding under the Ares Credit Agreement.

Previous wording

Other expense was $0.2 million for the six months ended June 30, 2025 and 2026.

Current wording

Other expense was $0.2 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

The provision for income taxes of $24.2 million for the six months ended June 30, 2026 represented an effective tax rate of 22.6%, as compared to the provision of $12.4 million for the six months ended June 30, 2025, with an effective tax rate of 16.9%. The increase in income tax expense is driven by lower excess tax benefits on stock-based compensation.

Current wording

The provision for income taxes of $39.9 million for the nine months ended September 30, 2026 represented an effective tax rate of 23.1%, as compared to the provision of $23.5 million for the nine months ended September 30, 2025, with an effective tax rate of 19.4%. The increase in expense is driven by an increase in net income and lower year-over-year excess tax benefits on stock-based compensation.

Previous wording

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA and Adjusted Net Income

Current wording

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net Income and Adjusted Basic Earnings Per Share (“EPS”)

Previous wording

EBITDA, Adjusted EBITDA and Adjusted net income are important non-GAAP financial measures used by our management and our board of directors (our “Board”) to assess our operating performance. We use EBITDA, Adjusted EBITDA and Adjusted net income as key performance measures because we believe that they facilitate operating performance comparisons from period to period that exclude, in the case of Adjusted net income, items that are expected to be non-recurring, and in the case of EBITDA and Adjusted EBITDA, potential differences driven by the impact of variations of non-cash items such as depreciation and amortization, as well as, in the case of Adjusted EBITDA, stock-based compensation or certain one-time and non-recurring items. In addition, we believe that EBITDA, Adjusted EBITDA and Adjusted net income and similar measures are widely used by investors, securities analysts, ratings agencies and other parties in evaluating companies in our industry as a measure of financial performance and debt-service capabilities. See below for a reconciliation of our EBITDA, Adjusted EBITDA and Adjusted net income to net income, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Current wording

EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted Basic EPS are important non-GAAP financial measures used by our management and our board of directors (our “Board”) to assess our operating performance. We use EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted Basic EPS as key performance measures because we believe that they facilitate operating performance comparisons from period to period that exclude, in the case of Adjusted net income, items that are expected to be non-recurring, and in the case of EBITDA and Adjusted EBITDA, potential differences driven by the impact of variations of non-cash items such as depreciation and amortization, as well as, in the case of Adjusted EBITDA, stock-based compensation or certain one-time and non-recurring items, and in the case of Adjusted Basic EPS, the impact of the adjustments reflected in Adjusted Net Income on basic weighted-average outstanding shares. In addition, we believe that EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted Basic EPS and similar measures are widely used by investors, securities analysts, ratings agencies and other parties in evaluating companies in our industry as a measure of financial performance and debt-service capabilities. See below for a reconciliation of our (i) EBITDA, Adjusted EBITDA, and Adjusted net income to net income and (ii) Adjusted Basic EPS to basic earnings per common share, in each case, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Previous wording

Because EBITDA, Adjusted EBITDA and Adjusted net income are measures not deemed to be in accordance with U.S. GAAP and are susceptible to varying calculations, our EBITDA, Adjusted EBITDA and Adjusted net income may not be comparable to similarly titled measures of other companies, including companies in our industry, because other companies may calculate EBITDA, Adjusted EBITDA and Adjusted net income in a different manner than we calculate these measurements. Although we use Adjusted EBITDA as one of several financial measures to assess our operating performance, our use is limited as we exclude certain significant operating expenses. EBITDA, Adjusted EBITDA and Adjusted net income are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income, net income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. The following table presents the reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:

Current wording

Because EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted Basic EPS are measures not deemed to be in accordance with U.S. GAAP and are susceptible to varying calculations, our EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted Basic EPS may not be comparable to similarly titled measures of other companies, including companies in our industry, because other companies may calculate EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted Basic EPS in a different manner than we calculate these measurements. Although we use Adjusted EBITDA as one of several financial measures to assess our operating performance, our use is limited as we exclude certain significant operating expenses. EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted Basic EPS are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income, net income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP.

Previous wording

The following table presents the reconciliation of Net income to Adjusted net income for the three and six months ended June 30, 2026 and 2025:

Current wording

The following table presents the reconciliation of net income to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Adjusted EBITDA increased for the three and six months ended June 30, 2026, as compared to the same period of a year ago, by $11.1 million and $22.8 million, respectively. The improvement is primarily due to the increase in operating income.

Current wording

Adjusted EBITDA increased for each of the three and nine months ended September 30, 2026, as compared to the same periods of a year ago, by $18.5 million and $41.3 million, respectively. The improvement is primarily due to the increase in operating income.

Previous wording

(a) Add-backs reflected during the three and six months ended June 30,2025 exclude estimated tax effect of $0.3 million and $1.4 million, respectively. Add-backs reflected during the three months and six months ended June 30,2026 were tax affected using the respective effective tax rates.

Current wording

(a) Add-backs reflected during the three and nine months ended September 30, 2025 exclude estimated tax effect of $0.6 million and $2.1 million, respectively. Add-backs reflected during the three months and nine months ended September 30, 2026 were tax affected using the respective effective tax rates.

Previous wording

At June 30, 2026, we had working capital of $452.4 million, primarily consisting of $239.3 million of inventory, cash and cash equivalents of $136.0 million and $138.2 million of accounts receivable, partially offset by current liabilities of $75.8 million, as compared to working capital at December 31, 2025 of $397.0 million, primarily consisting of $206.5 million of inventory, cash and cash equivalents of $87.6 million and accounts receivable of $158.4 million, partially offset by current liabilities of $69.5 million. Our material cash requirements are primarily comprised of:

Current wording

At September 30, 2026, we had working capital of $480.6 million, primarily consisting of $266.1 million of inventory, cash and cash equivalents of $124.6 million and $169.2 million of accounts receivable, partially offset by current liabilities of $95.3 million, as compared to working capital at December 31, 2025 of $397.0 million, primarily consisting of $206.5 million of inventory, cash and cash equivalents of $87.6 million and accounts receivable of $158.4 million, partially offset by current liabilities of $69.5 million. Our material cash requirements are primarily comprised of: