Alliance Laundry Holdings Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share amounts)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT)

(in thousands)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise indicated)

Note 1 -Basis of Presentation and Significant Accounting Policies

Description of Business

Alliance Laundry Holdings Inc. (“ALH” or the “Company”), through its wholly owned subsidiaries Alliance Laundry Holdings LLC ("Alliance Holdings") and Alliance Laundry Systems LLC ("Alliance Laundry") is the world’s largest designer and manufacturer of commercial laundry systems, serving a diverse and resilient range of global end markets. The Company engineers and produces one of the most high quality, reliable commercial laundry systems in the industry. Our products range from small-chassis washers and dryers to large-chassis laundry equipment with load capacities of up to 400 pounds. Our small-chassis systems utilize smaller frame designs, while our large-chassis systems are constructed on frames built to withstand significant load sizes.

Stockholders' Equity and Capital Structure Changes

On September 25, 2025, the Company’s board of directors and stockholders approved a 142-for-1 stock split of the company’s issued and outstanding shares of common stock, including the shares of common stock underlying outstanding stock options. This stock split was effected on September 26, 2025. All issued and outstanding share and per share amounts of common stock and stock options included in the accompanying consolidated financial statements have been retroactively adjusted to reflect this stock split for all periods presented. The par value of the common stock was not adjusted as a result of the split and retained a par value of $0.01 per share. Accordingly, an amount equal to the par value of the additional shares issued resulting from the stock split was reclassified from additional paid-in capital to common stock. Additionally, on September 25, 2025 the board of directors retired and cancelled all treasury shares.

On September 25, 2025, ALH Holding Inc. filed a Certificate of Amendment to its Certificate of Incorporation to amend the authorized shares to 2,000,000,000 shares of common stock and 100,000,000 shares of preferred stock.

Initial Public Offering

The Company’s registration statement on Form S-1 related to its initial public offering (“IPO”) was declared effective on September 30, 2025 and the Company’s common stock began trading on the New York Stock Exchange on October 9, 2025. The Company's final prospectus (the “IPO Prospectus”) was filed with the SEC on October 9, 2025. On October 10, 2025 (the “IPO Closing Date”), the Company closed its IPO pursuant to which 43,195,120 shares of its common stock were sold, which includes the issuance and sale of 24,390,243 shares by the Company and the sale by a selling stockholder of 18,804,877 shares, which includes the full exercise of the underwriters’ option to purchase 5,634,146 additional shares, at a price to the public of $22.00 per share. The Company received net proceeds of approximately $505.7 million, after deducting the underwriting discounts and commissions and other offering expenses of approximately $30.8 million.

Deferred Offering Costs

Deferred offering costs, which consist of direct incremental legal, accounting, consulting and other fees relating to the IPO are capitalized. As of September 30, 2025, there were $7.6 million of deferred offering costs recorded within Prepaid expenses and other current assets on the Company’s Condensed Consolidated Balance Sheets.

Basis of Presentation

The interim condensed consolidated financial statements of ALH and consolidated subsidiaries have been prepared by the Company and are unaudited. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted as permitted for reporting of interim financial statements. The interim condensed consolidated financial statements are unaudited; however, in the opinion of management, such interim condensed consolidated financial statements reflect all adjustments, consisting solely of normal and recurring adjustments, necessary for a fair statement of its financial position, results of operations, and cash flows for the interim periods presented. The condensed consolidated financial statements as presented should be read in conjunction with our audited consolidated financial statements presented in our IPO Prospectus for the Year Ended December 31, 2024. Results for interim periods are not necessarily indicative of future results.

Significant Accounting Policies

A comprehensive discussion of our critical accounting policies and management estimates is included in our audited consolidated financial statements for the year ended December 31, 2024.

Allowance for Credit Losses - Equipment Financing Receivables

The allowance for credit losses is an estimate of losses inherent to the Company’s equipment financing receivables portfolio. The Company’s estimate includes accounts that have been individually identified as impaired and estimated credit losses over a pool of receivables where it is probable that certain receivables in the pool are impaired but that the individual accounts cannot yet be identified. When determining estimates of probable credit loss or whether an account is impaired, management takes into consideration numerous quantitative and qualitative factors such as historical loss experience, credit risk, portfolio duration and economic conditions. The Company determined that there is a limited correlation between expected credit losses and forecasted economic conditions based on a correlation analysis performed to compare historical losses to various economic conditions, such as real gross domestic product, inflation rate and unemployment rate. On an ongoing basis, the Company monitors credit quality based on past-due status as there is a meaningful correlation between the past-due status of customers and the risk of credit loss.

The Company determines that an equipment financing receivable is impaired when it is expected that it will be unable to collect all amounts due according to the contractual terms of the loan or lease. These equipment financing receivables are collateral–dependent and measurement of impairment is based upon the estimated fair value of collateral. The determination of the allowance for credit losses is based on an analysis of historical loss experience and reflects an amount which, in the Company’s judgment, is adequate to provide for probable credit losses. When a financing receivable is non-performing, aged greater than 89 days and the Company has exhausted all efforts of collection, the receivable is deemed to be uncollectible and is charged off and deducted from the allowance. The allowance is increased for recoveries and by charges to earnings.

Fair Value of Other Financial Instruments

Current accounting guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. It also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with the guidance, fair value measurements are classified under the following hierarchy:

•Level 1 - Quoted prices for identical instruments in active markets.

•Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.

•Level 3 - Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.

When available, the Company uses quoted market prices to determine fair value and classifies such measurements within Level 1. In some cases where market prices are not available, the Company makes use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3.

Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable.

New Accounting Pronouncements to be Adopted

In December 2023, the FASB issued ASU No 2023-09 Income Taxes (“Topic 740”): Improvements to Income Tax Disclosures Topic 740. The new guidance is intended to enhance the transparency of income tax disclosures, primarily related to rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024. This guidance is effective on a prospective basis, though retrospective application is permitted. The Company will adopt this standard beginning with the Form 10-K for the fiscal year ending December 31, 2025 and expects no impact to our consolidated financial condition or results of operations.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement (Subtopic 220-40): Reporting Comprehensive Income—Expense Disaggregation Disclosures, which enhances certain disclosure requirements related to expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, selling, general and administrative expenses, and research and development). This guidance is effective for the Company for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. This ASU will only affect our disclosures and will not change the expense captions the Company presents on its Consolidated Statements of Comprehensive Income.

Note 2 –Net Revenues

Net revenues by reportable segment and major type of good or service were as follows:

Equipment and service parts

The Company offers a full line of stand-alone laundry washers and dryers and related service parts. These products range from small residential washers and dryers to large commercial laundry equipment. Revenue from equipment and service part sales is recognized when the Company satisfies a performance obligation by transferring control of a product to a customer. Transfer of control generally takes place upon shipment to the customer. Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for the products transferred. Sales are generally made with 30 –120 day terms. The resulting receivables are recorded on the Condensed Consolidated Balance Sheets under Accounts receivable, net and Accounts receivable, net restricted for securitization investors for those receivables that are sold to a securitization entity.

Sales incentive programs such as cash discounts, customer promotional allowances, and volume rebates are used to promote the sale of equipment and other products. The Company estimates its variable consideration related to sales incentive programs using the most likely amount. Revenues are recorded net of sales incentive allowances, and are based on factors specific to each customer’s program such as expected sales volume and rebate percentages. The Company maintains an accrual at the end of each period for the unpaid amount the customer is expected to earn related to such programs. As of September 30, 2025 and December 31, 2024, the related accrual balances were $24.7 million and $23.1 million, respectively. The accruals are recorded in Other current liabilities in the Condensed Consolidated Balance Sheets.

Shipping and handling costs associated with freight after control of a product has transferred to a customer are accounted for as fulfillment costs. The Company accrues for the shipping and handling costs in the same period that the related revenue is recognized.

The Company offers standard, limited warranties on its products. These warranties provide assurance that the product will function as expected and are not separate performance obligations. The Company accounts for estimated warranty costs as a liability when control of the product transfers to the customer.

The Company sells an extended warranty to its customers that is a separate performance obligation as the Company stands by ready to perform additional warranty work not covered by the standard warranty. The Company defers the extended warranty revenue until the period covered by the extended warranty begins, and then recognizes extended warranty revenue ratably over the coverage period. The extended warranty contract liability was $1.0 million at September 30, 2025 and $1.0 million at December 31, 2024.

The Company collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with revenue producing transactions between the Company and its customers. The Company excludes these taxes from Net revenues.

Equipment financing

The Company offers an equipment financing program to end-customers who are primarily laundromat owners in order to finance their purchase of new equipment. Typical terms for equipment financing receivables range fromtwo toten years. Interest income on finance receivables is recorded as earned over the life of the loan. See Note 5 - Securitization Activities for further discussion regarding asset-backed financing.

Other

Other revenue consists primarily of company-owned laundromat proceeds, scrap sales, field service revenue and technology fee revenue. Revenue from these sources is typically recognized at point of sale or when the service is performed.

Note 3 -Acquisitions

On August 1, 2025, the Company acquired certain assets net of liabilities of Metropolitan Laundry Machinery Sales Inc. ("Metropolitan Laundry"), a leading distributor of laundry equipment headquartered in South Richmond Hill, New York servicing the metro New York area. Prior to the acquisition, the Company had a preexisting relationship with Metropolitan Laundry in the normal course of business. At the acquisition date, the Company had a receivable of $1.1 million that was settled in connection with the acquisition.

On September 1, 2024, the Company paid cash to acquire certain assets net of liabilities of L&R Laundry, LLC DBA Alliance Laundry Equipment (“L&R Laundry”), a premier provider of solutions for on-premises laundries and laundromats, headquartered in Salt Lake City, Utah. Prior to the acquisition, the Company had a preexisting relationship with L&R Laundry in the normal course of business. At the acquisition date, the Company had a receivable of $2.1 million that was settled in connection with the acquisition.

On July 1, 2024, the Company paid cash to acquire certain assets net of liabilities of Star Distributing Commercial Laundry Equipment, Inc. (“Star Distributing”), a leader in providing solutions for on-premises laundries, laundromats, and multi-housing applications and its parts business in Nashville, Tennessee. Prior to the acquisition, the Company had a preexisting relationship with Star

Distributing in the normal course of business. At the acquisition date, the Company had a receivable of $1.1 million that was settled in connection with the acquisition.

The following table summarizes the aggregate purchase price allocation of the estimated fair value of assets acquired and liabilities assumed as of the acquisition date for these acquisitions.

Goodwill and Intangible assets related to acquisitions are included in the North America reportable segment and are deductible for tax purposes over a 15 year period. The acquired customer relationship intangible assets were assigned a useful life ofseven years. Goodwill recognized in connection with these acquisitions reflects the strategic and synergistic benefits expected be realized. The fair values of assets acquired and liabilities assumed for the acquisition completed during the nine months ended September 30, 2025 are preliminary. These amounts are subject to adjustment pending fair value valuations for intangible assets, including customer relationship intangibles, and the determination of final working capital adjustments, which the Company expects to complete within one year from the respective acquisition dates. The fair values of assets acquired and liabilities assumed for acquisitions completed during the nine months ended September 30, 2024 are final.

From the date of acquisition through September 30, 2025, the Consolidated Statements of Comprehensive Income reflected contributions from companies acquired during the year of approximately $0.7 million in Net revenues and $0.1 million in Net income. From the date of acquisition through September 30, 2024, the Consolidated Statements of Comprehensive Income reflected contributions from companies acquired during the year of approximately $2.6 million in Net revenues and $0.6 million in Net income.

Note 4 -Other Expenses/(Income), net

The following table presents a summary of Other expenses, net, as shown in the Condensed Consolidated Statements of Comprehensive Income.

Foreign exchange losses on intercompany loans, net result from intercompany loans where the lender or borrower’s functional currency differs from the loan denomination currency.

See Note 12 - Debt for further information regarding debt issuance cost write-offs and amendment expenses.

Note 5 -Asset Backed Facilities

Securitized Equipment Financing

The Company maintains an internal financing organization primarily to assist end-user laundromat locations in financing Company-branded equipment through the Company’s distributors in the United States and Canada. Alliance Laundry originates and administers the sale of equipment financing receivables through a special-purpose bankruptcy remote subsidiary, Alliance Laundry Equipment Receivables 2015 LLC (“ALER 2015”), and a trust (a qualified special purpose entity or “QSPE”), Alliance Laundry Equipment Receivables Trust 2015-A (“ALERT 2015A”). These transactions are financed by a revolving credit facility (the “Asset Backed Equipment Facility”) backed by equipment financing receivables originated by the Company. Alliance Laundry is permitted, from time to time, to sell certain equipment financing receivables to its special-purpose subsidiary, which in turn transfers them to the trust. On May 1, 2025, the Company entered into an amendment to the Asset Backed Equipment Facility to increase the facility limit from a lender committed amount of $460.0 million to $500.0 million, with an additional uncommitted increase of $30.0 million available. The amendment extended the term until May 1, 2028 and removed theadjustment spread of 10 basis points. As a result, the Company incurred $1.6 million of fees which were capitalized and included in Debt issuance costs, net line of the Condensed Consolidated Balance Sheets. These costs are being amortized over thethree-year life of the facility, which approximates the effective interest method.

The trust finances the acquisition of equipment financing receivables through borrowings under the Asset Backed Equipment Facility in the form of funding notes which are limited to an advance rate of approximately 88%. Under the Asset Backed Equipment Facility, interest payments on the variable funding notes are paid monthly at an interest rate equal to the daily simple SOFR ("Secured Overnight Financing Rate") rate plus a margin of 120 basis points, which was equivalent to 5.4% at September 30, 2025. If an event of default occurs, the otherwise applicable interest rate for the Asset Backed Equipment Facility will be increased by an amount equal to 200 basis points per annum. The lenders also earn an unused facility fee of 0.35% of the unfunded portion of each lender's commitment amount prior to a rapid amortization event or event of default.

The equipment financing receivables typically have interest rates ranging primarily from Prime plus 0.25% to Prime plus 4.75% for variable rate equipment financing receivables and 4.50% to 11.50% for fixed-rate equipment financing receivables. The average interest rate for all equipment financing receivables at September 30, 2025 was 8.81% with terms ranging primarily fromtwo toten years. The weighted-average remaining expected life of equipment financing receivables held by the trust was approximately 3.4 years at September 30, 2025. All equipment financing receivables allow the holder to prepay outstanding principal amounts without penalty.

Securitized Receivables Financing

Alliance Laundry, through a special-purpose bankruptcy remote subsidiary, Alliance Laundry Trade Receivables LLC (“ALTR LLC”), utilizes a revolving credit facility (the “Asset Backed Trade Receivables Facility”) backed by trade receivables originated by the Company. Under the Asset Backed Trade Receivables Facility, Alliance Laundry originates and simultaneously sells its trade receivables to its special-purpose subsidiary. On June 30, 2022, the Company entered an amendment to the Asset Backed Trade Receivables Facility to extend the term of the agreement until June 30, 2025, and increase the facility limit of $100.0 million to $120.0 million. On May 1, 2025, the Company entered into an amendment to the Asset Backed Trade Receivables Facility, which extended the agreement until May 1, 2028. After May 1, 2028, ALTR LLC will not be permitted to request new borrowings, and the outstanding borrowings will amortize over 180 days with any remaining balance due at maturity. The Company incurred $0.3 million of fees in connection with the amendment which were capitalized and included in the Debt issuance costs, net line of the Condensed Consolidated Balance Sheets. These costs are being amortized over thethree-year revolving life of the facility, which approximates the effective interest method.

Under the Asset Backed Trade Receivables Facility, interest payments on the variable funding notes are paid monthly at an interest rate equal to the daily 1-month SOFR rate plus a margin of 110 basis points, which was 5.2% as of September 30, 2025. The lender also earns an unused facility fee of 0.35% of the unfunded portion of each lender's commitment amount. The Company consolidates the trust, including the assets and liabilities associated with the sale of accounts and equipment financing receivables, into its Consolidated Financial Statements.

The Company follows accounting standards relating to the consolidation of variable interest entities and accounting for transfers of financial assets. In evaluating the variable interest entity accounting guidance, the Company evaluated if the trust should be consolidated. The Company has concluded that it is the primary beneficiary of the trust as (1) it has the power to direct the activities of the trust that most significantly impact the trust's economic performance and (2) the Company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the trust. As a result, the Company consolidates the trust in these financial statements.

Note 6 -Securitization Activities

The following lines of the Company’s Condensed Consolidated Balance Sheets are specific to the Company’s securitization and are restricted for securitization investors only:

•Restricted cash - for securitization investors

•Accounts receivable - restricted for securitization investors

•Equipment financing receivables, net - restricted for securitization investors (current and long-term)

•Asset backed borrowings - owed to securitization investors (current and long-term)

Certain aspects of the Company’s retained interest in the assets of the trust constitute intercompany positions which are eliminated in the preparation of the Company’s Condensed Consolidated Balance Sheets. Trust receivables underlying the Company’s retained interest are recorded in Accounts receivable, net - restricted for securitization investors and Equipment financing receivables, net - restricted for securitization investors.

Restricted Cash - for Securitization Investors

To protect the noteholders of the trust, additional collateral in the form of a cash reserve equal to 1.0% of the equipment financing receivable balances is maintained as well as a yield account for lower fixed rate loans. Additionally, collection accounts to facilitate the collection and disbursement of funds are maintained separately for accounts receivable and equipment financing receivables. The following table presents the components of restricted cash for securitization investors.

Securitization Activities

The Company transfers accounts receivable and equipment financing receivables to its special-purpose bankruptcy remote subsidiaries in the ordinary course of business as part of its ongoing securitization activities. The Company receives a combination of cash and residual interests in the transferred assets in its securitization transactions.

The following table presents the Company’s residual interests in Accounts Receivable - restricted for securitization investors.

The following table presents the Company’s residual interests in Equipment financing receivables, net - restricted for securitization investors.

Asset Backed Borrowings - Owed to Securitization Investors

The asset backed borrowings owed to securitization investors in the Company’s Condensed Consolidated Balance Sheets represent the third-party noteholders’ interest in accounts receivable and equipment financing receivables.

Credit Quality of Equipment Financing Receivables

Interest income is accrued as earned on outstanding balances. Fees earned and incremental direct costs incurred upon origination of equipment financing are not significant for any period presented. Past due balances of equipment financing receivables represent the principal balance of loans and leases held with any payment amounts between 30 and 89 days past the contractual payment due date. Non-performing equipment financing receivables represent loans and leases that are generally more than 89 days delinquent. The allowance is measured on a collective basis for equipment financing receivables with similar risk characteristics. The Company does not accrue interest income on non-performing equipment financing receivables. Finance income for non-performing equipment financing receivables is recognized on a cash basis.

The following tables, shown in thousands, present an aging analysis of past due, non-performing, and current equipment financing receivables by class and origination year:

The Company elected to exclude accrued interest receivable from the amortized cost basis. Accrued interest was $2.2 million as of September 30, 2025 and December 31, 2024, which we report in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets.

The following tables present activity in the allowance for losses related to equipment financing receivables held on the Condensed Consolidated Balance Sheets. Refer to Note 2 to the consolidated financial statements included in our audited consolidated financial statements for the year ended December 31, 2024 for further discussion of our allowance for credit losses.

Other Trust Items

The Company incurred $1.9 million of capitalized debt issuance costs associated with the refinancing of Asset Backed Facilities in 2025. The following table presents the amortization expense related to debt issuance costs.

Note 7 -Inventories

The following table summarizes our inventories as of September 30, 2025 and December 31, 2024.

Note 8 -Derivative Financial Instruments

Derivative instruments are accounted for at fair value. The accounting for changes in the fair value of a derivative depends on the intended use, designation and type of the derivative instrument. The Company does not designate any of its derivatives as hedges and, as such, records all changes in fair values as a component of earnings. Cash flow activity associated with the Company's derivative financial instruments is recorded in Cash flows from operating activities on the Consolidated Statement of Cash Flows.

Using derivative instruments means assuming counterparty credit risk. Counterparty credit risk relates to the loss the Company could incur if a counterparty were to default on a derivative contract. The Company primarily deals with investment grade counterparties and monitors its overall credit risk and exposure to individual counterparties. The Company does not anticipate nonperformance by any counterparties. The amount of counterparty credit exposure is the unrealized gains, if any, on such derivative contracts. The Company does not require, nor does it post collateral, or security, on such contracts.

The Company is exposed to certain risks relating to its ongoing business operations. As a result, the Company enters into derivative transactions to manage these exposures. The primary risks managed through the use of derivative instruments are fluctuations in interest rates, foreign currency exchange rates and commodity prices. Fluctuations in these rates and prices can affect the Company’s operating results and financial condition. The Company manages the exposure to these market risks through operating and financing activities and through the use of derivative financial instruments. The Company does not enter derivative financial instruments for trading or speculative purposes.

Interest Rate Risk.

Borrowings outstanding under the Term Loan totaled $1,940.0 million at September 30, 2025. Borrowings under the Term Loan bear interest, at the option of Alliance Laundry, at a rate equal to an applicable margin plus (a) the adjusted base rate or (b) the eurocurrency rate (both rates as defined in the Credit Agreement). The applicable margins for the Term Loan are currently 1.25% with respect to adjusted base rate loans and 2.25% with respect to SOFR loans. An assumed 10% increase/decrease in the SOFR interest rate in effect at September 30, 2025 would increase/decrease annual interest expense $4.9 million on the non-hedged portion of the borrowing.

Effective September 3, 2024, the Company entered into $600.0 million interest rate swap agreements to hedge a portion of our interest rate risk related to our long-term borrowings. Under these swaps, which mature on September 1, 2027, the Company pays a fixed rate of 3.61% and receives or pays monthly interest payments based upon a comparison to the one-month SOFR rate.

Effective April 1, 2025, the Company entered into a $150.0 million interest rate swap agreement to hedge a portion of our interest rate risk related to our long-term borrowings. Under the swap, which matures on April 3, 2028, the Company pays a fixed rate of 3.36% and receives or pays monthly interest payments based upon a comparison to the one-month SOFR rate.

Interest rate caps are in place as part of the Asset Backed Facilities to limit the Company’s exposure to interest rate increases which may adversely affect the overall performance of the Company’s equipment financing activities. The interest rate cap strike rates are 5.19%,5.00% and 7.00%.

Foreign Currency Risk.

The Company has manufacturing, sales, and distribution facilities in the Czech Republic, China and Thailand. The Company also has various sales and distribution facilities in Brazil, France, Spain, Italy, Germany and the United Arab Emirates. The Company also makes investments and enters into transactions denominated in foreign currencies. The vast majority of the Company’s international sales from its domestic operations are denominated in U.S. dollars. However, the Company is exposed to transactional and translational foreign exchange risk related to its foreign operations.

Regarding transactional foreign exchange risk, the Company from time to time enters into certain forward exchange contracts to reduce the variability of the earnings and cash flow impacts of foreign denominated receivables and payables. The Company does not designate these contracts as hedge transactions. Accordingly, the mark-to-market impact of these contracts is recorded each period to earnings. At September 30, 2025, the Company was not managing any foreign currency contracts.

The Company’s primary translation exchange risk exposures are the euro, Czech koruna, and Thai baht. Amounts invested in non-U.S. based subsidiaries are translated into U.S. dollars at the exchange rate in effect at period end. The resulting translation adjustments are recorded in accumulated other comprehensive income as foreign currency translation adjustments.

Commodity Risk

The Company is subject to the effects of changing raw material and component costs caused by movements in underlying commodity prices. The Company purchases raw materials and components for production, including stainless steel, carbon steel, motors, and electronic controls. These materials contain various commodities such as nickel, zinc, aluminum, and copper. The Company generally buys these raw materials and components based upon market prices that are established with the vendor as part of the procurement process.

From time to time, the Company enters into contracts with its vendors to lock in commodity prices for various periods to limit its near-term exposure to fluctuations in raw material and component prices. In addition, the Company enters into commodity forward contracts, for commodities such as nickel, copper and aluminum, to reduce the variability on its earnings and cash flows of purchasing raw materials containing such commodities. The Company does not designate these contracts as hedge transactions. Accordingly, the mark-to-market impacts of these contracts are recorded each period to current earnings. At September 30, 2025, the Company was managing $0.1 million notional value of copper forward contracts and $0.8 million notional value of nickel forward contracts. At December 31, 2024, the Company was managing $1.7 million notional value of nickel forward contracts.

The Company presents its derivatives at gross fair values in the Condensed Consolidated Balance Sheets and does not maintain derivative contracts which would require financial instrument or collateral balances. The following tables summarize the fair value of the Company’s outstanding derivative contracts included within the Condensed Consolidated Balance Sheets.

The following table presents the combined cash and non-cash effects of derivative instruments on the Company’s Condensed Consolidated Statements of Comprehensive Income.

Note 9 -Other Current Liabilities

The following table presents the major components of Other current liabilities.

Note 10 -Income Taxes

During the three months ended September 30, 2025 and 2024 the Company calculated its effective tax rate to be 23.4% and 18.3%, respectively. During the nine months ended September 30, 2025 and 2024 the Company calculated its effective tax rate to be 23.5% and 22.3%, respectively. The increase in the effective tax rate is primarily due to impact of the limitation of the deductibility of officer compensation under IRC Section 162(m) in 2025.

At the end of each interim period, the Company makes an estimate of the effective tax rate expected to be applicable for the full fiscal year and the impact of discrete items, if any, and adjusts the quarterly rate as necessary.

The Company has approximately $4.9 million and $4.5 million of unrecognized tax benefits as of September 30, 2025 and December 31, 2024, respectively, which, if recognized, would impact the effective tax rate. The Company’s policy is to accrue interest and penalties related to unrecognized tax benefits in income tax expense. As of September 30, 2025 and December 31, 2024, accrued interest and penalties related to the reserve for uncertain tax positions were $1.0 million and $0.8 million, respectively.

Tax years which remain subject to examination by tax authorities for the Company’s significant tax jurisdictions include 2019 and after for the United States and Luxembourg and 2021 and after for Belgium and the Czech Republic.

On July 4, 2025, Public Law No: 119-21, the One Big Beautiful Bill Act (OBBBA) was enacted in the United States. This bill amends key business tax provision including the “GILTI” provision, other international provisions, interest deduction limitations and reinstates the ability to currently expense research and experimental expenditures. The impacts of OBBBA are reflected in our results for the quarter ended September 30, 2025, and there was no material impact on our provision for income taxes. We expect certain provisions of the OBBBA will change the timing of cash tax payments in the current fiscal year and future periods.

Note 11 –Product Warranties

The Company offers product warranties to its Commercial and Commercial In-Home customers depending upon the specific product type and the product use. Standard product warranties vary fromone toseven years. The standard warranty program includes replacement of defective components. Additionally, the standard warranty covers labor costs for repairs solely related to Commercial In-Home equipment.

The Company records an estimate for future warranty related costs based on the projected incident rates of occurrence and projected cost per incident. The carrying amount of the Company’s warranty liability is adjusted as necessary based on an analysis of these and other factors.

The following table presents the changes in the carrying amount of the total product warranty liability.

Product warranty of $28.3 million, $26.6 million and $23.3 million is recorded in Other current liabilities in the Condensed Consolidated Balance Sheets as of September 30, 2025, December 31, 2024 and September 30, 2024, respectively. Product warranty of $33.4 million, $25.2 million and $24.8 million is recorded in Other long-term liabilities in the Condensed Consolidated Balance Sheets as of September 30, 2025, December 31, 2024 and September 30, 2024, respectively.

Note 12 -Debt

The following table presents the Company’s debt, other than debt related to securitization activities discussed in Note 5 - Asset Backed Facilities and Note 6 - Securitization Activities.

Credit Facility

On August 19, 2024, Alliance Holdings entered into a credit agreement, by and among the Alliance Holdings, Alliance Laundry as the Borrower (“Borrower”), the lenders party thereto and Citibank, as Administrative Agent (the “Credit Agreement”). The Credit Agreement provides for (i) an initial Term Loan facility (the “Term Loan”) in the aggregate principal amount of $2,075.0 million and (ii) an initial revolving credit facilities (the “RCF” and, together with the Term Loan, the “Credit Facility”) of $250.0 million principal amount of revolving commitments, with $225.0 million issuable in U.S. Dollars or Euros and $25.0 million issuable in Thai Baht, with a $102.0 million sub-limit for issuance of letters of credit and a $25.0 million sub-limit for swingline loans. The Term Loan was issued with an original issue discount of 50 basis points. Interest was payable no less frequently than quarterly at the rate of SOFR plus 3.5% (or the applicable base rate plus 2.5%), with a 0.0% SOFR floor. Interest under the RCF accrued at the rate of SOFR plus 3.25% (or the applicable base rate plus 2.25%).

On February 20, 2025, we finalized an amendment to our Credit Agreement, which reduced the applicable margin on the Term Loan and RCF. The result was an interest rate on our Term Loan of SOFR plus 2.75% and an interest rate on our RCF of SOFR plus 2.50%. Additionally, we incorporated opportunities for further margin reductions contingent upon achieving improvements in our leverage ratio. The company incurred $1.0 million of fees in connection with the amendment. These fees were expensed and included in Other Expenses/(Income), net in the Condensed Consolidated Statement of Comprehensive Income.

On August 21, 2025, we finalized an amendment to our Credit Agreement, which reduced the applicable margin on the Term Loan and RCF. The result is an interest rate on our Term Loan of SOFR plus a margin of 2.25% and an interest rate on our RCF of SOFR plus a margin of 2.25%. Additionally, we incorporated opportunities for further margin reductions contingent upon achieving improvements in our leverage ratio and rating agency upgrades. The company incurred $1.1 million of fees in connection with the amendment. As of September 30, 2025, the interest rate under the RCF was 6.53%. Additionally, a commitment fee based upon the Company’s leverage ratio is charged on the unused portion of the commitments under the RCF. As of September 30, 2025, the commitment fee was 0.25%.

On September 22, 2025, the Company made a voluntary repayment of the Term Loan of $135.0 million.

The Term Loan matures on August 19, 2031, and it requires installment principal repayments equal to 1.00% of the aggregate principal per annum, paid quarterly, with the outstanding balance due on the maturity date. The Credit Agreement requires certain mandatory prepayments, including from asset sales and, beginning with the fiscal year ending December 31, 2025, annual prepayments of the Term Loan with 50% of the Company’s Excess Cash Flow, which steps down to 25% if the Company’s net leverage ratio is below 4.75:1 and to 0% if the net leverage ratio is below 4.5:1. Excess Cash Flow is defined in the Credit Agreement as consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted for the net change in working capital for the fiscal year, less other specified deductions such as debt and debt service payments, and interest and taxes paid in cash. Working capital is defined as current assets excluding cash and cash equivalents less current liabilities excluding current portion of long term debt and various other adjustments. Outstanding balances are fully prepayable on a voluntary basis, in whole or in part, without premium or penalty. The RCF matures on August 19, 2029, and it does not require any installment principal repayments or mandatory commitment reductions. Outstanding balances under the RCF are fully prepayable on a voluntary basis, in whole or in part, and commitments may be terminated, in whole or in part, in each case without premium or penalty. Obligations under the Credit Agreement are secured by substantially all assets of the Company.

The Credit Agreement contains covenants that are customary for similar credit arrangements, including, among other things, covenants relating to: (i) financial reporting and notification, (ii) payment of obligations, (iii) compliance with applicable laws, (iv) notification of certain events, and (v) certain covenants limiting the ability of the Borrower and its subsidiaries to, among other things, sell or transfer assets, consummate fundamental changes, incur or guarantee indebtedness or liens, make investments, or enter into transactions with affiliates. The Company is in compliance with all covenants as of September 30, 2025.

The RCF is available, subject to certain conditions, for general corporate purposes in the ordinary course of business and for other transactions permitted under the Credit Agreement. A portion of the RCF not in excess of $102.2 million is available for the issuance of letters of credit. There wereno letters of credit outstanding and the RCF was not drawn as of September 30, 2025 and December 31, 2024.

Other Debt

As discussed in greater detail in Note 6 - Securitization Activities, the Company had total debt outstanding of $601.0 million and $553.8 million related to its securitization activities as of September 30, 2025 and December 31, 2024, respectively.

Debt Issuance Costs and Original Issue Discount

The following table presents a summary of other disclosure items related to the Company’s debt, which are recorded in interest expense, net line of our Condensed Consolidated Statement of Comprehensive Income:

Note 13 –Accumulated Other Comprehensive Income/(Loss)

The following tables present the changes in Accumulated other comprehensive income/(loss) by component, net of tax.

Note 14 -Stock Based Compensation

The following table presents a summary of the Company’s stock option activity.

For the nine months ended September 30, 2025, the company issued 572,143 time-based vesting options and 572,143 performance-based vesting options.

At September 30, 2025, the Company had approximately $3.5 million of total unrecognized compensation cost related to non-vested, time-based stock options granted. That cost is expected to be recognized over a weighted average period of 3.51 years. Additionally, the Company had approximately $16.0 million of total unrecognized compensation cost related to non-vested performance-based stock option grants as of September 30, 2025. No expense was recognized for these awards during the period, as the performance condition was not yet considered probable. However, following the completion of the IPO, which satisfies the performance condition, the full expense will be recognized in the three month period ended December 31, 2025.

On September 25, 2025, the Company’s board of directors and stockholders terminated the 2015 Stock Option Plan and approved the 2025 Omnibus Incentive Compensation Plan. No further awards will be granted under the 2015 Stock Option Plan, but existing awards will continue to vest and be exercisable in accordance with the plan terms. Upon determination of the offering price on October 8, 2025, the initial share pool of the 2025 Plan and the 2025 Employee Stock Purchase Plan was determined to be 9,864,490 and 2,959,347 shares of the Common Stock, respectively.

Note 15 -Earnings Per Share

Basic net income per share of common stock is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share of common stock is computed by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all dilutive potential shares of common stock, which include, if dilutive, outstanding stock awards. The computation of diluted earnings per share excludes the effect of the potential exercise of stock-based awards, including Stock Options, when the effect of the potential exercise would be anti-dilutive. The dilutive impact of the stock options is determined by applying the treasury stock method.

Basic and diluted net income per share of common stock were calculated as follows:

(a) For the three-month period ended September 30, 2024, the Company reported a net loss. As a result,1,258,783 potentially dilutive common shares were considered anti-dilutive and were therefore excluded from the calculation of diluted earnings per share.

Stock Split

All earnings per share amounts for prior periods presented have been retroactively adjusted to reflect the 142-for-1 stock split effected on September 26, 2025. Outstanding stock options have been proportionately adjusted accordingly. See Note 1 - Basis of Presentation and Significant Accounting Policies for further information.

Note 16 -Segment Information

The Company’s Chief Operating Decision Maker (CODM) is our Chief Executive Officer. The Company operates throughtwo reportable segments in accordance with ASC 280, Segment Reporting: North America (United States and Canada) and International (all other global markets). This structure reflects how the CODM evaluates performance and allocates resources. Across both reportable segments, we manufacture and sell commercial laundry equipment suitable for diverse applications, ranging from small chassis products installed in laundromats, multi-housing facilities and residential settings, to large industrial units designed for institutional laundry applications.

The CODM uses Adjusted EBITDA as the primary measure of segment profit and loss to evaluate the Company’s financial performance against expected results and to allocate resources, including capital investment and potential acquisitions. Adjusted EBITDA is a non-GAAP financial measure that is defined as net income excluding interest income/expense, income taxes, depreciation and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, such as refinancing and debt related costs, share- based compensation, strategic transaction costs, foreign exchange on intercompany loans and other non-recurring items which management believes are not indicative of the Company’s ongoing operating performance. Management believes Adjusted EBITDA is the best measure to help users of its financial statements evaluate our operating performance and facilitates more meaningful comparisons with industry peers. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.

Assets are physically maintained primarily in the United States, Czech Republic, and Thailand. Total assets by segment are not presented in the table below as the CODM is not provided total assets by reportable segment as the CODM does not evaluate, manage, or measure performance of segments using total assets.

The following table presents the results of operations for the Company’s reportable segments, reconciled to consolidated Income before taxes:

(1)Consists of Cost of sales, Cost of sales - related parties and Equipment financing expenses.

(2)Other segment items for each reportable segment includes:

North America - engineering, sales and marketing, information technology, and certain other overhead expenses.

International - engineering, sales and marketing, information technology, and certain other overhead expenses.

Note 17 -Supplier Financing Arrangements

The Company entered into a supplier financing arrangement with a third-party financial institution which allows participating suppliers the ability to request early payment for eligible receivables due from the Company at their sole discretion. The Company’s obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by a suppliers’ decision to sell amounts under the arrangement. Payment terms with our suppliers, which we deem to be commercially reasonable, range from 0 to 120 days. Outstanding payment obligations subject to the Company's supplier finance program at September 30, 2025 and December 31, 2024 were $10.2 million and $12.0 million, respectively, are included in Accounts payable in the Condensed Consolidated Balance Sheets.

The following tables present the changes in outstanding obligations under supplier financing arrangements:

Note 18 -Commitments and Contingencies

The Company is subject to various other claims and contingencies arising out of the normal course of business, including those relating to governmental investigations and proceedings, commercial transactions, product liability, employee related matters, antitrust, safety, health, taxes, environmental and other matters. Litigation is subject to many uncertainties and the outcome of individual litigated matters is not predictable with assurance. It is possible that some litigation matters for which reserves have not been established could be decided unfavorably to us, and that any such unfavorable decisions could have a material adverse effect on our financial condition, results of operations and cash flows.

Note 19 -Related Parties

The Company has entered into various transactions with related parties. The Company’s Board of Directors has members that are employees of BDT & MSD Partners, LLC ("BDT"), which the Company paid $0.2 million for the nine months ended September 30, 2025 and 2024, respectively. Management fees are classified as Selling, general and administrative expenses in the Company's Condensed Consolidated Statements of Comprehensive Income. During the quarter ended September 30, 2024, and in connection with the Company’s refinancing, an arrangement fee of $5.2 million was paid to BDT from the proceeds of the Term Loan. Entities affiliated with BDT hold a controlling interest in a vendor that the Company purchases raw materials from. The Company made purchases of $4.9 million and $4.6 million from this vendor during the nine months ended September 30, 2025 and 2024, respectively, included in inventory and cost of sales. As of September 30, 2025 and December 31, 2024, the Company had amounts due to this vendor of $1.7 million and $1.3 million, respectively, included in Accounts payable - related parties in the Condensed Consolidated Balance Sheets.

Note 20 -Subsequent Events

The Company evaluates events occurring subsequent to the date of the financial statements in determining the accounting for and disclosure of transactions and events that affect the financial statements.

The net proceeds of $505.7 million from our initial public offering along with cash on-hand were used to repay $525.0 million of our indebtedness outstanding under the Term Loan on October 17, 2025.