Technology

FLEX REPORTS FOURTH QUARTER AND FISCAL 2026 RESULTS

Published

2 days ago

May 5, 2026

Reported Q4 net sales of $7.5 billion, and full-year net sales of $27.9 billion, up 17% and 8%, respectively, versus the prior year.Delivered Q4 GAAP operating margin of 5.0%, and adjusted operating margin of 6.7%, our sixth consecutive quarter with an adjusted operating margin of 6% or greater.Delivered full-year GAAP operating margin of 4.9%, and adjusted operating margin of 6.3%, another record for Flex.Reported Q4 GAAP EPS of $0.67, and adjusted EPS of $0.93.Reported full-year GAAP EPS of $2.33, and adjusted EPS of $3.30.

AUSTIN, Texas, May 5, 2026 /PRNewswire/ — Flex (NASDAQ: FLEX) today announced results for its fourth quarter and fiscal year ended March 31, 2026.

“Our strong finish to FY 2026 reflects disciplined execution and a clear strategy, supported by targeted acquisitions and capital investments aligned to Flex’s long-term growth opportunities,” said Revathi Advaithi, CEO of Flex.

Fourth Quarter Fiscal Year 2026 GAAP Summary:

Net Sales: $7.5 billionGAAP Operating Income: $372 millionGAAP Net Income: $250 millionGAAP Earnings Per Share: $0.67Cash provided by Operating Activities: $413 million

Fourth Quarter Fiscal Year 2026 Non-GAAP Summary:

Adjusted Operating Income: $500 millionAdjusted Net Income: $348 millionAdjusted Earnings Per Share: $0.93Free Cash Flow: $212 million

Fiscal Year 2026 GAAP Summary:

Net Sales: $27.9 billionGAAP Operating Income: $1,368 millionGAAP Net Income: $880 millionGAAP Earnings Per Share: $2.33Cash provided by Operating Activities: $1,685 million

Fiscal Year 2026 Non-GAAP Summary:

Adjusted Operating Income: $1,764 millionAdjusted Net Income: $1,248 million Adjusted Earnings Per Share: $3.30Free Cash Flow: $1,060 million

An explanation and reconciliation of GAAP financial measures to non-GAAP financial measures is presented in Schedules II and V attached to this press release.

First Quarter Fiscal Year 2027 Guidance:

Net Sales: $7.35 billion to $7.65 billion, growth of 14% at the midpointAdjusted Operating Income: $469 million to $499 million*Adjusted EPS: $0.86 to $0.92*, growth of 24% at the midpointInterest & Other: approximately $65 millionAdjusted income tax rate: 21%*Weighted average shares outstanding: approximately 374 million

Fiscal Year 2027 Guidance†:

Net Sales: $32.3 billion to $33.8 billion, growth of 18% at the midpointAdjusted Operating Margin: 7.0% to 7.1%*Adjusted EPS: $4.21 to $4.51*, growth of 32% at the midpointAdjusted income tax rate: 21%*

*This is a forward-looking non-GAAP financial measure that cannot be reconciled to its equivalent GAAP financial measure without unreasonable effort for the reasons set forth in Schedule V attached to this press release.

†Reflects expected results for the full fiscal year and does not give effect to the planned spin-off of the Cloud and Power Infrastructure segment announced today.

Webcast and Conference Call

The Flex management team will host a conference call tomorrow, May 6, 2026 at 7:30 AM (CT) / 8:30 AM (ET), to review fourth quarter and fiscal year 2026 results. A live webcast of the event and slides will be available on the Flex Investor Relations website at http://investors.flex.com. An audio replay and transcript will also be available after the event on the Flex Investor Relations website.

About Flex

Flex (Reg. No. 199002645H) is the manufacturing partner of choice that helps leading brands design, build, and manage products that improve the world. With a global footprint spanning 30 countries, Flex delivers advanced manufacturing and supply chain solutions, innovative products and technology, and lifecycle services that support customers from concept to scale. In the AI era, Flex is helping customers accelerate data center deployment by solving power, heat, and scale challenges through cutting-edge power and cooling technology and scalable IT infrastructure solutions.

Contacts

Investors & Analysts
Michelle Simmons
Senior Vice President, Global Investor Relations and Public Relations
(669) 242-6332
Michelle.Simmons@flex.com

Media & Press
publicrelations@flex.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause the actual outcomes and results to differ materially from those anticipated by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These risks include: that we may not achieve our expected future operating results; risks related to our ability to successfully execute our strategic priorities, including the planned spin-off of our Cloud and Power Infrastructure segment into an independent, publicly traded company, and to achieve the anticipated benefits of such transaction, including risks that the spin-off may not be completed on the anticipated timeline or at all, that the spin-off may not achieve its intended benefits, that the transaction may have an adverse impact on existing business relationships, and that the costs of the spin-off may be greater than anticipated; the effects that the current and future macroeconomic environment, including inflationary pressures, currency volatility, stagflation, slower economic growth or recession, and high or rising interest rates, could have on our business and demand for our products; geopolitical uncertainties and risks, including impacts from trade conflicts, the termination and renegotiation of international trade agreements and trade policies, a further escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, or the ongoing conflicts between Russia and Ukraine and in the Middle East, including recent developments in Iran, any of which could lead to disruption, instability, and volatility in global markets and negatively impact our operations and financial performance; supply chain disruptions, including those involving suppliers who are sole or primary sources, logistical constraints, manufacturing interruptions or delays, or the failure to accurately forecast customer demand; the impact of fluctuations in the pricing or availability of raw materials and components, including semiconductors, labor and energy; our dependence on industries that continually produce technologically advanced products with short product life cycles; the short-term nature of our customers’ commitments and rapid changes in demand may cause supply chain issues, excess and obsolete inventory and other issues which adversely affect our operating results; our dependence on a small number of customers; risks associated with acquisitions and divestitures, including the possibility that we may not fully realize their projected benefits, including the acquisition of Electrical Power Products, Inc., and other events that could adversely impact the anticipated benefits of the acquisition, including industry or economic conditions outside of our control; our industry is extremely competitive; that the expected revenue and margins from recently launched programs may not be realized; the challenges of effectively managing our operations, including our ability to control costs and manage changes in our operations; the possibility that benefits of our restructuring actions may not materialize as expected; a breach of our IT or physical security systems, or violation of data privacy laws, may cause us to incur significant legal and financial exposure and adversely affect our operations; hiring and retaining key personnel; that recent changes or future changes in tax laws in certain jurisdictions where we operate could materially impact our tax expense; litigation and regulatory investigations and proceedings; the impact and effects on our business, results of operations and financial condition of union disputes or other labor disruptions as well as unforeseen or catastrophic events; the effects that current and future credit and market conditions could have on the liquidity and financial condition of our customers and suppliers, including any impact on their ability to meet their contractual obligations to us and our ability to pass through costs to our customers; the success of certain of our activities depends on our ability to protect our intellectual property rights and we may be exposed to claims of infringement, misuse or breach of license agreements; physical and operational risks from natural disasters, severe weather events, or climate change; we may be exposed to product liability and product warranty liability; we may be exposed to financially troubled customers or suppliers; our compliance with legal and regulatory requirements; changes in laws, regulations, or policies that may impact our business, including those related to trade policy and tariffs and climate change; our ability to meet sustainability, including environmental, social and governance, expectations or standards or achieve sustainability goals.

Additional information concerning these and other risks is described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K and in our subsequent filings with the U.S. Securities and Exchange Commission. Additional information concerning risks related to the planned spin-off is described in the separate press release issued today. Flex assumes no obligation to update any forward-looking statements, which speak only as of the date they are made.

SCHEDULE I

FLEX

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)

Three-Month Periods Ended

March 31, 2026

March 31, 2025

GAAP:

Net sales

$ 7,477

$ 6,398

Cost of sales

6,747

5,807

Restructuring charges

Gross profit

702

563

Selling, general and administrative expenses

289

234

Restructuring and impairment charges

Intangible amortization

Operating income

372

305

Interest expense

Interest income

Other charges (income), net

(13)

Equity in earnings (losses) of unconsolidated affiliates

(5)

—

Income before income taxes

315

279

Provision for (benefit from) income taxes

Net income

$ 250

$ 222

GAAP EPS

Diluted earnings per share

$ 0.67

$ 0.57

Diluted shares used in computing per share amounts

374

389

See Schedule II for the reconciliation of GAAP to non-GAAP financial measures. See the accompanying notes
on Schedule V attached to this press release.

FLEX

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)

Twelve-Month Periods Ended

March 31, 2026

March 31, 2025

GAAP:

Net sales

$ 27,914

$ 25,813

Cost of sales

25,288

23,584

Restructuring charges

Gross profit

2,567

2,159

Selling, general and administrative expenses

1,052

904

Restructuring and impairment charges

Intangible amortization

Operating income

1,368

1,169

Interest expense

215

218

Interest income

Other charges (income), net

(14)

Equity in earnings (losses) of unconsolidated affiliates

(31)

(3)

Income before income taxes

1,143

1,023

Provision for (benefit from) income taxes

263

185

Net income

$ 880

$ 838

GAAP EPS

Diluted earnings per share

$ 2.33

$ 2.11

Diluted shares used in computing per share amounts

378

398

See Schedule II for the reconciliation of GAAP to non-GAAP financial measures. See the accompanying notes
on Schedule V attached to this press release.

SCHEDULE II

FLEX

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except per share amounts and percentages)

Three-Month Periods Ended

March 31, 2026

March 31, 2025

GAAP operating income and margin %

$ 372

5.0 %

$ 305

4.8 %

Intangible amortization

Stock-based compensation

Restructuring and impairment charges

Customer related asset impairment

—

Legal and other

Non-GAAP operating income and margin %

$ 500

6.7 %

$ 396

6.2 %

GAAP provision for income taxes

$ 65

$ 57

Intangible amortization benefit

Other tax related adjustments

Non-GAAP provision for income taxes

$ 93

$ 65

GAAP net income

$ 250

$ 222

Intangible amortization

Stock-based compensation

Restructuring and impairment charges

Customer related asset impairment

—

Legal and other

Interest and other, net

(2)

(20)

Adjustments for taxes

(28)

(8)

Non-GAAP net income

$ 348

$ 285

Diluted earnings per share:

GAAP

$ 0.67

$ 0.57

Non-GAAP

$ 0.93

$ 0.73

Free Cash Flow:

Net cash provided by operating activities

$ 413

$ 433

Purchases of property and equipment

(202)

(112)

Proceeds from the disposition of property and equipment

Free Cash Flow

$ 212

$ 325

See the accompanying notes on Schedule V attached to this press release.

FLEX

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except per share amounts and percentages)

Twelve-Month Periods Ended

March 31, 2026

March 31, 2025

GAAP operating income and margin %

$ 1,368

4.9 %

$ 1,169

4.5 %

Intangible amortization

Stock-based compensation

142

125

Restructuring and impairment charges

135

Customer related asset impairment (recoveries)

(2)

Legal and other

Non-GAAP operating income and margin %

$ 1,764

6.3 %

$ 1,459

5.7 %

GAAP provision for income taxes

$ 263

$ 185

Intangible amortization benefit

Other tax related adjustments

Non-GAAP provision for income taxes

$ 332

$ 243

GAAP net income

$ 880

$ 838

Intangible amortization

Stock-based compensation

142

125

Restructuring and impairment charges

135

Customer related asset impairment (recoveries)

(2)

Legal and other

Equity in losses of unconsolidated affiliates

—

Interest and other, net

(15)

Adjustments for taxes

(69)

(58)

Non-GAAP net income

$ 1,248

$ 1,055

Diluted earnings per share:

GAAP

$ 2.33

$ 2.11

Non-GAAP

$ 3.30

$ 2.65

Free Cash Flow:

Net cash provided by operating activities

$ 1,685

$ 1,505

Purchases of property and equipment

(633)

(438)

Proceeds from the disposition of property and
equipment

Free Cash Flow

$ 1,060

$ 1,082

See the accompanying notes on Schedule V attached to this press release.

SCHEDULE III

FLEX

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

As of March 31, 2026

As of March 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$ 2,389

$ 2,289

Accounts receivable, net of allowance for doubtful accounts

4,679

3,671

Contract assets

1,063

616

Inventories

5,845

5,071

Other current assets

2,356

1,194

Total current assets

16,332

12,841

Property and equipment, net

2,505

2,330

Operating lease right-of-use assets, net

659

562

Goodwill

1,369

1,341

Other intangible assets, net

283

343

Other non-current assets

912

964

Total assets

$ 22,060

$ 18,381

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Bank borrowings and current portion of long-term debt

$ —

$ 1,209

Accounts payable

8,055

5,147

Accrued payroll and benefits

671

560

Deferred revenue and customer working capital advances

2,156

1,957

Other current liabilities

1,134

977

Total current liabilities

12,016

9,850

Long-term debt, net of current portion

3,751

2,483

Operating lease liabilities, non-current

565

456

Other non-current liabilities

584

590

Total liabilities

16,916

13,379

Total shareholders’ equity

5,144

5,002

Total liabilities and shareholders’ equity

$ 22,060

$ 18,381

SCHEDULE IV

FLEX

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

Twelve-Month Periods
Ended

March 31, 2026

March 31, 2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$ 880

$ 838

Depreciation, amortization and other impairment charges

563

539

Changes in working capital and other, net

242

128

Net cash provided by operating activities

1,685

1,505

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment

(633)

(438)

Proceeds from the disposition of property and equipment

Acquisitions of businesses, net of cash acquired

(40)

(405)

Proceeds from divestiture of businesses, net of cash held in divested businesses

(4)

(21)

Other investing activities, net

(3)

Net cash used in investing activities

(672)

(838)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from bank borrowings and long-term debt

1,251

499

Payments of bank borrowings, long-term debt and other financing liabilities

(1,217)

(58)

Payments for repurchases of ordinary shares

(944)

(1,257)

Other financing activities, net

(14)

(5)

Net cash used in financing activities

(924)

(821)

Effect of exchange rates on cash and cash equivalents

(31)

Net (decrease) increase in cash and cash equivalents

100

(185)

Cash and cash equivalents, beginning of year

2,289

2,474

Cash and cash equivalents, end of year

$ 2,389

$ 2,289

SCHEDULE V

FLEX AND SUBSIDIARIES
NOTES TO SCHEDULES I and II

To supplement Flex’s unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including non-GAAP operating income, non-GAAP net income and non-GAAP net income per diluted share. These supplemental measures exclude certain legal and other charges, restructuring charges, customer-related asset impairments (recoveries), stock-based compensation expense, intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Flex’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Flex’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company’s performance.

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company’s operating performance on a period-to-period basis because such items are not, in our view, related to the Company’s ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Also, when evaluating potential acquisitions, we exclude certain items described below from consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results;the ability to better identify trends in the Company’s underlying business and perform related trend analysis;a better understanding of how management plans and measures the Company’s underlying business; andan easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.

We present forward‑looking non‑GAAP financial measures in our first quarter and full year fiscal 2027 guidance, including adjusted operating income, adjusted operating margin, adjusted income tax rate, and adjusted EPS. We do not provide a reconciliation of these measures to the most directly comparable GAAP measures because the information necessary to do so is not available without unreasonable effort due to the inherent variability, complexity, and uncertainty in forecasting certain items required for such a reconciliation. These items may include restructuring charges and impairment charges, among others. The information that is unavailable could be material and could significantly affect our GAAP results.

The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share units granted to employees and assumed in business acquisitions. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results.

Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.

Restructuring and impairment charges include severance charges at existing sites and corporate SG&A functions as well as asset impairment, and other charges related to the closures and consolidations of certain operating sites and targeted activities to restructure the business. These costs also include asset impairment charges related to assets significantly impacted by the geopolitical events on the basis of management’s best estimate of the recoverable value of assets. These costs may vary in size based on the Company’s initiatives, are not directly related to ongoing or core business results, and do not reflect expected future operating expenses. These costs are excluded by the Company’s management in assessing current operating performance and forecasting its earnings trends and are therefore excluded by the Company from its non-GAAP measures.

During the three and twelve-month periods ended March 31, 2026, the Company recognized approximately $47 million and $84 million of restructuring charges, respectively, most of which related to employee severance. During the three and twelve-month periods ended March 31, 2025, the Company recognized $30 million and $84 million of restructuring charges, respectively, most of which related to employee severance.

During the three and twelve-month periods ended March 31, 2026, the Company recognized $5 million and $51 million, respectively, in asset impairments, inventory write-downs and other charges as a result of an August 21, 2025 missile strike on the Company’s Mukachevo, Ukraine operations located in Western Ukraine. The August 21, 2025 missile strike represents an unusual and infrequent event as hostilities related to the Russian invasion of Ukraine have been primarily focused in Eastern Ukraine. The missile strike caused substantial destruction, disrupted Mukachevo’s normal operations and Flex initiated contingency manufacturing plans at alternative manufacturing facilities. The Company expects additional immaterial near-term inefficiencies as Mukachevo’s operations are restored.

Customer related asset impairments (recoveries) may consist of non-cash impairments of property and equipment to estimated fair value for customers from whom we have disengaged or are in the process of disengaging as well as additional provisions for doubtful accounts receivable for customers that are experiencing financial difficulties and inventory that is considered non-recoverable that is written down to net realizable value. In subsequent periods, the Company may recover a portion of the costs previously incurred related to assets impaired or reduced to net realizable value. During the three and twelve-month periods ended March 31, 2026, the Company recognized zero and $2 million of customer related asset recoveries, respectively. During the three and twelve-month periods ended March 31, 2025, the Company recognized approximately $4 million and $2 million of customer related asset impairments, respectively. These costs are excluded by the Company’s management in assessing current operating performance and forecasting its earnings trends and are therefore excluded by the Company from its non-GAAP measures.

Legal and other consist primarily of costs not directly related to core business results and may include matters relating to commercial disputes, government regulatory and compliance, intellectual property, antitrust, tax, employment or shareholder issues, product liability claims and other costs such as acquisition, portfolio optimization related costs and asset impairment. These costs are excluded by the Company’s management in assessing current operating performance and forecasting its earnings trends and are therefore excluded by the Company from its non-GAAP measures. During the three and twelve-month periods ended March 31, 2026, the Company incurred approximately $26 million and $53 million, respectively, primarily related to the planned spin-off of its Cloud and Power Infrastructure segment into a separate publicly traded company combined with other portfolio optimization costs. During the three and twelve-month periods ended March 31, 2025, the Company incurred $4 million and $9 million, respectively, related to asset impairment and acquisitions costs.

Equity in losses of unconsolidated affiliates consists of various other types of items that are not directly related to ongoing or core business results, such as significant gains or losses associated with certain non-core investments. The Company excludes these items because they are not related to the Company’s ongoing operating performance or do not affect core operations. Excluding these amounts provides investors with a basis to compare Company performance against the performance of other companies without this variability. During the twelve-month period ended March 31, 2026, the Company recognized approximately $25 million of equity in losses from a reduced valuation of a certain non-core investment fund. No such event occurred in the fiscal year 2025.

Interest and other, net consist of various other types of items that are not directly related to ongoing or core business results, such as the gain or losses related to certain divestitures, currency translation reserve write-offs upon liquidation of certain legal entities, debt extinguishment costs and impairment charges or gains associated with certain non-core investments. The Company excludes these items because they are not related to the Company’s ongoing operating performance or do not affect core operations. During the twelve-month period ended March 31, 2026, the Company incurred $16 million predominantly related to an impairment of a non-core unconsolidated cost method investment. During the twelve-month period ended March 31, 2025, the Company realized a $19 million bargain purchase gain from an acquisition where the fair value of identifiable assets was in excess of the purchase consideration. Excluding these amounts provides investors with a basis to compare Company performance against the performance of other companies without this variability.

Adjustments for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable. Effective in fiscal year 2026, the Company adopted an annual normalized tax rate for the purpose of determining the tax effect of non-GAAP adjustments. In estimating the normalized tax rate, the Company utilizes a full-year projection of earnings that considers the mix of earnings across tax jurisdictions, existing tax positions and other significant tax matters.

During the three and twelve-month periods ended March 31, 2026, the Company recognized a $28 million and $69 million net tax benefit, respectively, and during the three and twelve-month periods ended March 31, 2025, the Company recognized a $8 million and $58 million net tax benefit, respectively, related to the tax effects of various adjustments. During the twelve-month period ended March 31, 2026, the Company incurred a charge to income tax expense of $19 million related to the resolution of a tax dispute with a foreign tax authority related to fiscal years 2010 through 2020.

Free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to repay debt obligations, make investments, fund acquisitions, repurchase company shares and for certain other activities. The Company’s free cash flow is defined as cash flows from operating activities, less net purchases of property and equipment and proceeds from the disposition of property and equipment (“net capital expenditures”), allowing us to present free cash flow on a consistent basis for investors.

During the three and twelve-month periods ended March 31, 2026, the Company recognized $212 million and $1,060 million of free cash inflow, respectively. During the three and twelve-month periods ended March 31, 2025, the Company recognized $325 million and $1,082 million of free cash inflow, respectively. Free cash flow is not a measure of liquidity under U.S. GAAP, and may not be defined and calculated by other companies in the same manner.

View original content to download multimedia:https://www.prnewswire.com/news-releases/flex-reports-fourth-quarter-and-fiscal-2026-results-302763098.html

SOURCE Flex

Technology

OppFi Reports First Quarter 2026 Results, Record Quarterly Revenue

Published

5 hours ago

May 7, 2026

Total revenue increased 8.3% year over year to $151.9 million, a Company record for the first quarter

Net income increased 165.0% year over year to $54.0 million

Adjusted net income1 decreased 11.2% year over year to $30.0 million

Board approves new $40 million Share Repurchase Program

CHICAGO, May 7, 2026 /PRNewswire/ — OppFi Inc. (NYSE: OPFI) (“OppFi” or the “Company”), a tech-enabled digital finance platform that partners with banks to offer financial products and services to everyday Americans, today reported financial results for the first quarter ended March 31, 2026.

“Operationally, OppFi had a healthy start to 2026, generating record first-quarter revenue, which reflects the strength of our core operations. Strategically, we believe 2026 is a pivotal year of investment for OppFi as we evolve the business with the transformative combination of OppFi’s digital-first platform and BNC’s national bank charter. This initiative unlocks significant opportunities for growth and product diversification. Combining our operations under unified regulatory supervision by the OCC and Federal Reserve simplifies and strengthens our compliance and risk management, which positions us for long-term scalability and sustainable growth,” said Todd Schwartz, CEO and Executive Chairman of OppFi. Our new share repurchase program reflects our continued confidence in OppFi’s long-term growth prospects, our commitment to returning value to our stockholders and belief that our stock currently trades at a significant discount to its underlying value,” Todd Schwartz added.

(1) Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below for a detailed description and reconciliation of such non-GAAP financial measures to their most directly comparable GAAP financial measures.

Financial Summary

The following table presents a summary of OppFi’s results for the three months ended March 31, 2026 and 2025 (in thousands, except per share data)†. Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

Three Months Ended March 31,

Change

(Unaudited)

2026

2025

Total revenue(1)

$ 151,881

$ 140,268

8.3 %

Net income

$ 54,038

$ 20,390

165.0 %

Net income (loss) attributable to OppFi Inc.

$ 28,401

$ (11,372)

349.7 %

Adjusted net income(2)

$ 30,045

$ 33,817

(11.2) %

Basic EPS

$ 1.06

$ (0.48)

321.0 %

Diluted EPS(3)

$ 0.56

$ (0.48)

215.7 %

Adjusted EPS(2,3)

$ 0.35

$ 0.38

(9.3) %

† The financial results do not reflect the simplification of OppFi’s corporate structure to collapse its prior Up-C structure, which occurred after the end of the quarter.

(1) Total revenue is calculated as the sum of interest on finance receivables and other revenue.

(2) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below for a detailed description and reconciliation of such non-GAAP financial measures to their most directly comparable GAAP financial measures.

(3) Diluted EPS calculated on a GAAP basis excludes dilutive securities, including Class V Voting Stock, restricted stock units, performance stock units, and stock options in any periods in which their inclusion would have an antidilutive effect.

Key Performance Metrics

The following table represents key quarterly metrics as of and for the three months ended March 31, 2026 and 2025 (in thousands, except percentage metrics).

As of and for the Three Months Ended

(Unaudited)

March 31, 2026

March 31, 2025

Total net originations(a)

$ 175,975

$ 189,168

Total retained net originations(a)

$ 151,449

$ 168,963

Ending receivables(b)

$ 444,922

$ 406,579

Net charge-offs as % of total revenue(c)

42.5 %

34.6 %

Net charge-offs as % of average receivables, annualized(c)

55.5 %

47.0 %

Average yield, annualized(d)

130.7 %

135.8 %

Auto-approval rate(e)

79 %

(a) Total net originations are defined as gross originations net of transferred balance on refinanced loans, while total retained net originations are defined as the portion of total net originations with respect to which the Company ultimately purchased a receivable from bank partners.

(b) Ending receivables are defined as the unpaid principal balances of loans at the end of the reporting period.

(c) Net charge-offs as a percentage of total revenue and net charge-offs as a percentage of average receivables represent total charge-offs from the period less recoveries as a percentage of total revenue and as a percentage of average receivables. Net charge-offs as a percentage of average receivables is presented as an annualized metric. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible.

(d) Average yield is defined as total revenue from the period as a percent of average receivables and is presented as an annualized metric.

(e) Auto-approval rate is calculated by taking the number of approved loans that are not decisioned by a loan processor or underwriter (auto-approval) divided by the total number of loans approved.

Share Repurchase Program

During the three months ended March 31, 2026, OppFi repurchased 1,040,699 shares of Class A Common Stock, which were held as treasury stock, for an aggregate purchase price of $9.9 million at an average purchase price per share of $9.54. As of March 31, 2026, $11.0 million of the repurchase authorization under the Company’s prior repurchase program remained available. On May 6, 2026, the Board of Directors of OppFi approved a new share repurchase program under which the Company may repurchase up to $40 million of its Class A Common Stock. This new program replaces the Company’s prior share repurchase program, which was terminated.

Repurchases under the new program may be made from time to time on the open market, through privately negotiated transactions, or via other methods, in accordance with applicable securities laws and other relevant legal requirements. The timing and amount of repurchases will depend on market conditions, share price, trading volume and other factors. The new program does not obligate the Company to repurchase any specific dollar amount or number of shares, and it may be extended, modified, suspended or discontinued at any time.

Conference Call

Management will host a conference call today at 9:00 a.m. ET to discuss OppFi’s financial results and business outlook. The webcast of the conference call will be made available on the Investor Relations page of the Company’s website.

The conference call can also be accessed with the following dial-in information:

Domestic: (800) 579-2543International: (785) 424-1789Conference ID: OPPFI

An archived version of the webcast will be available on OppFi’s website.

About OppFi

OppFi (NYSE: OPFI) is a tech-enabled digital finance platform that partners with banks to offer financial products and services to everyday Americans. Through this transparent and responsible platform, which emphasizes financial inclusion and exceptional customer experience, the Company assists consumers who are underserved by traditional financing options in building improved financial health. OppLoans by OppFi maintains a 4.4/5.0 star rating on Trustpilot based on over 5,500 reviews, positioning the Company among the top consumer-rated financial platforms online. OppFi also holds a 35% equity interest in Bitty Holdings, LLC (“Bitty”), a credit access company that provides revenue-based financing and other working capital solutions to small businesses. For additional information, please visit oppfi.com.

Important Additional Information will be Filed with the SEC

In connection with the proposed transaction between OppFi and BNCCORP, Inc. (“BNCC”), OppFi will file with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 (the “registration statement”), which will contain a proxy statement of BNCC and a prospectus of OppFi (the “proxy statement/prospectus”), and OppFi may file with the SEC other relevant documents regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS CAREFULLY AND IN THEIR ENTIRETY AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BY OPPFI, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT OPPFI, BNC AND THE PROPOSED TRANSACTION. A definitive copy of the proxy statement/prospectus will be mailed to stockholders of BNCC when that document is final. Investors and security holders will be able to obtain the registration statement and the proxy statement/prospectus, as well as other filings containing information about OppFi, free of charge from OppFi or from the SEC’s website when they are filed by OppFi. The documents filed by OppFi with the SEC may be obtained free of charge at OppFi’s website, at https://investors.oppfi.com/financials/sec-filings/default.aspx, or by requesting them by mail at 130 E. Randolph Street, Suite 3400, Chicago, IL 60601 or by email at corporate.secretary@oppfi.com.

Participants in a Solicitation

This communication is not a solicitation of a proxy from any security holder of BNCC or OppFi. However, OppFi, BNCC and certain of their respective directors and executive officers may be deemed to be participants in a solicitation of proxies from the stockholders of BNCC in respect of the proposed transaction. Information about OppFi’s directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2025 and other documents filed by OppFi with the SEC. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available. Free copies of this document may be obtained as described in the preceding paragraph.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities of OppFi or a solicitation of any vote or approval with respect to the proposed transaction by OppFi or BNCC, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

Contacts:

Investor Relations:
Mike Gallentine
Head of Investor Relations
mgallentine@oppfi.com

Media Relations:
media@oppfi.com

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “opportunity,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “possible,” “continue,” “positions,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi’s expectations with respect to its full year 2026 guidance, the future performance of OppFi’s platform and underwriting models, statements regarding OppFi’s proposed acquisition of BNCC, including the anticipated timing, structure, benefits and strategic rationale of such transactions, OppFi’s expectations with respect to the geographic expansion and product diversification that may come from the acquisition, and expectations for OppFi’s growth and future financial performance. These forward-looking statements are based on OppFi’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, the impact of general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, the impact of tariffs, and tightening of credit markets on OppFi’s business; the impact of challenging macroeconomic and marketplace conditions; the impact of stimulus or other government programs; risks related to the proposed acquisition of BNCC including the risk that the transactions may not be completed in a timely manner or at all and the risk of integration or execution challenges; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether OppFi will be subject to AB 539; whether OppFi’s bank partners will continue to lend in California and whether OppFi’s financing sources will continue to finance the purchase of participation rights in loans originated by OppFi’s bank partners in California; OppFi’s ability to scale and grow the Bitty business; the impact that events involving financial institutions or the financial services industry generally, such as actual concerns or events involving liquidity, defaults, or non-performance, may have on OppFi’s business; risks related to any material weakness in OppFi’s internal controls over financial reporting; the ability of OppFi to grow and manage growth profitably and retain its key employees; risks related to new products; risks related to evaluating and potentially consummating acquisitions; concentration risk; risks related to OppFi’s ability to comply with various covenants in its corporate and warehouse credit facilities; risks related to potential litigation; changes in applicable laws or regulations, including, but not limited to, impacts from the One Big Beautiful Bill Act; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in OppFi’s filings with the United States Securities and Exchange Commission, in particular, contained in the section captioned “Risk Factors.” OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures that are unaudited and do not conform to GAAP, such as Adjusted EBT, Adjusted Net Income, and Adjusted EPS. Adjusted EBT is defined as Net Income, adjusted for (1) income tax expense; (2) change in fair value of warrant liabilities; (3) other adjustments, net; and (4) other income. Adjusted Net Income is defined as Adjusted EBT as defined above, adjusted for taxes assuming a tax rate for each period presented that reflects the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. Adjusted EPS is defined as Adjusted Net Income as defined above, divided by weighted average diluted shares outstanding, which represents shares of both classes of common stock outstanding and includes the impact of dilutive securities, such as restricted stock units, performance stock units, and stock options. These non-GAAP financial measures have not been prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. See “Reconciliation of Non-GAAP Financial Measures” below for reconciliations for OppFi’s non-GAAP financial measures to the most directly comparable GAAP financial measures.

First Quarter Results of Operations

Consolidated Statements of Operations

The following table present consolidated results of operations for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share data). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

Three Months Ended March 31,

Change

(Unaudited)

2026

2025

Revenue:

Interest and loan related income

$ 150,526

$ 139,118

$ 11,408

8.2 %

Other revenue

1,355

1,150

205

17.8

151,881

140,268

11,613

8.3

Change in fair value of finance receivables

(64,583)

(49,458)

(15,125)

30.6

Net revenue

87,298

90,810

(3,512)

(3.9)

Expenses:

Salaries and employee benefits

14,254

13,778

476

3.5

Direct marketing costs

10,385

10,288

0.9

Interest expense and amortized debt issuance costs

8,510

10,247

(1,737)

(17.0)

Professional fees

7,264

4,199

3,065

73.0

Technology costs

3,329

2,961

368

12.4

Payment processing fees

1,658

1,630

1.7

Occupancy

871

1,039

(168)

(16.2)

Depreciation and amortization

591

1,760

(1,169)

(66.4)

General, administrative and other

5,074

2,416

2,658

110.0

Total expenses

51,936

48,318

3,618

7.5

Income from operations

35,362

42,492

(7,130)

(16.8)

Other income (expense):

Change in fair value of warrant liabilities

21,295

(21,607)

42,902

198.6

Income from equity method investment

1,120

1,076

4.1

Other income

232

152

191.1

Income before income taxes

58,009

22,041

35,968

163.2

Income tax expense

3,971

1,651

2,320

140.5

Net income

54,038

20,390

33,648

165.0

Less: net income attributable to noncontrolling interest

25,637

31,762

(6,125)

(19.3)

Net income (loss) attributable to OppFi Inc.

$ 28,401

$ (11,372)

$ 39,773

349.7 %

Earnings (loss) per common share attributable to OppFi Inc.:

Earnings (loss) per common share:

Basic

$ 1.06

$ (0.48)

Diluted

$ 0.56

$ (0.48)

Weighted average common shares outstanding:

Basic

26,778,432

23,691,769

Diluted

86,195,269

23,691,769

Condensed Consolidated Balance Sheets

The following table presents consolidated balance sheets as of March 31, 2026 and December 31, 2025 (in thousands). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

(Unaudited)

March 31,

December 31,

Change

2026

2025

Assets

Cash and restricted cash

$ 99,920

$ 93,263

$ 6,657

7.1 %

Finance receivables at fair value

502,558

546,236

(43,678)

(8.0)

Equity method investment

19,145

19,076

0.4

Other assets

98,364

95,515

2,849

3.0

Total assets

$ 719,987

$ 754,090

$ (34,103)

(4.5) %

Liabilities and stockholders’ equity

Accounts payable and accrued expenses

$ 41,610

$ 46,171

$ (4,561)

(9.9) %

Other liabilities

45,975

51,235

(5,260)

(10.3)

Total debt

284,260

321,353

(37,093)

(11.5)

Warrant liabilities

5,160

26,455

(21,295)

(80.5)

Total liabilities

377,005

445,214

(68,209)

(15.3)

Total stockholders’ equity

342,982

308,876

34,106

11.0

Total liabilities and stockholders’ equity

$ 719,987

$ 754,090

$ (34,103)

(4.5) %

Condensed Consolidated Statement of Cash Flows

The following table presents the consolidated statement of cash flows for the three months ended March 31, 2026 and 2025 (in thousands). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

Three Months Ended March 31,

Change

(Unaudited)

2026

2025

Net cash provided by operating activities

$ 90,779

$ 83,740

$ 7,039

8.4 %

Net cash used in investing activities

(21,436)

(34,241)

12,805

(37.4)

Net cash used in financing activities

(62,686)

(47,019)

(15,667)

33.3

Net increase in cash and restricted cash

$ 6,657

$ 2,480

$ 4,177

168.4 %

Financial Capacity and Capital Resources

As of March 31, 2026, OppFi had $63.9 million in unrestricted cash, an increase of $14.4 million from December 31, 2025. As of March 31, 2026, OppFi had an additional $240.7 million of unused debt capacity under our financing facilities for future availability, representing a 46% overall undrawn capacity, an increase from $203.6 million as of December 31, 2025. The increase in undrawn debt was driven primarily by a decrease in the utilization of revolving lines of credit. Including total financing commitments of $525.0 million and cash and restricted cash on the balance sheet of $99.9 million, OppFi had approximately $624.9 million in funding capacity as of March 31, 2026.

Reconciliation of Non-GAAP Financial Measures

The following tables present reconciliations of non-GAAP financial measures for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share data). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

Adjusted EBT and Adjusted Net Income

Comparison of the three months ended March 31, 2026 and 2025

Three Months Ended March 31,

Change

(Unaudited)

2026

2025

Net income

$ 54,038

$ 20,390

$ 33,648

165.0 %

Income tax expense

3,971

1,651

2,320

140.5

Other income

(232)

(80)

(152)

191.1

Change in fair value of warrant liabilities

(21,295)

21,607

(42,902)

(198.6)

Other adjustments, net(a)

3,035

609

2,426

398.4

Adjusted EBT

39,517

44,177

(4,660)

(10.5)

Less: pro forma taxes(b)

9,472

10,360

(888)

(8.6)

Adjusted net income

$ 30,045

$ 33,817

$ (3,772)

(11.2) %

Adjusted earnings per share

$ 0.35

$ 0.38

Weighted average diluted shares outstanding

86,195,269

87,991,698

(a) For the three months ended March 31, 2026, other adjustments, net of $3.0 million included $1.7 million in expenses related to stock compensation, $1.0 million in expenses related to corporate development, $0.2 million in expenses related to severance, and $0.1 million in expenses related to legal matters. For the three months ended March 31, 2025, other adjustments, net of $0.6 million included $1.3 million in expenses related to stock compensation, $0.3 million in expenses related to severance, $0.3 million in expenses related to legal matters, and $0.2 million in expenses related to an adjustment to the Company’s outstanding lease obligations, partially offset by a $1.4 million addback related to the partial forgiveness of remaining expenses related to OppFi Card’s exit activities. The sum of the individual components of other adjustments, net may not equal the total presented due to the use of rounded numbers for disclosure purposes.

(b) Assumes a tax rate of 23.97% for the three months ended March 31, 2026 and 23.45% for the three months ended March 31, 2025, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes.

Adjusted Earnings Per Share

Comparison of the three months ended March 31, 2026 and 2025

Three Months Ended March 31,

(Unaudited)

2026

2025

Weighted average Class A common stock outstanding

26,778,432

23,691,769

Weighted average Class V voting stock outstanding

58,694,615

62,698,935

Dilutive impact of restricted stock units

556,584

1,341,739

Dilutive impact of performance stock units

12,994

62,377

Dilutive impact of stock options

152,644

196,878

Weighted average diluted shares outstanding

86,195,269

87,991,698

Three Months Ended March 31,

(In thousands, except share and per share data)

2026

2025

(Unaudited)

Per Share

Weighted average diluted shares outstanding

86,195,269

87,991,698

Net income

$ 54,038

$ 0.63

$ 20,390

$ 0.23

Income tax expense

3,971

0.05

1,651

0.02

Other income

(232)

—

(80)

—

Change in fair value of warrant liabilities

(21,295)

(0.25)

21,607

0.25

Other adjustments, net(a)

3,035

0.04

609

0.01

Adjusted EBT

39,517

0.46

44,177

0.50

Less: pro forma taxes(b)

9,472

0.11

10,360

0.12

Adjusted net income

$ 30,045

$ 0.35

$ 33,817

$ 0.38

View original content to download multimedia:https://www.prnewswire.com/news-releases/oppfi-reports-first-quarter-2026-results-record-quarterly-revenue-302764741.html

SOURCE OppFi

Technology

AAON Reports First Quarter 2026 Results with Record Sales and Backlog, Robust Earnings Growth, and Raises Full-Year Guidance

Published

5 hours ago

May 7, 2026

First Quarter 2026 Results
(All comparisons are year-over-year, unless otherwise noted)

Delivered record sales and accelerated earnings growth on strong demand and expanding production throughputNet sales grew 54.3% to a record $496.9 millionOperating margins reflected early benefits from improving utilization, with margin improvement expected to build as capacity absorption improvesGAAP diluted EPS increased 37.1% to $0.48 reflecting strong earnings growth on higher volumeTotal backlog increased 107.4% to a record $2.1 billion, driven by continued strength from the data center market

Raises 2026 Outlook

2026 outlook now reflects revenue growth of 40%-45%% and gross margins of approximately 27-28%, supported by record backlog, expanded capacity, and improving operational execution

TULSA, Okla., May 7, 2026 /PRNewswire/ — AAON, INC. (NASDAQ-AAON), a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to customers and owners, today announced its results for the first quarter of 2026.

First Quarter 2026 Results

Net sales for the first quarter of 2026 increased 54.3% to $496.9 million, from $322.1 million in the first quarter of 2025. This growth was driven by strong demand across both the AAON and BASX brands, and accelerating production throughput made possible by investments made in capacity and operational execution. BASX-branded sales increased 72.4% to $228.6 million, reflecting continued strength in data center cooling demand, higher production volumes, and increased utilization of recently commissioned capacity. AAON-branded sales increased 41.6% to $268.4 million, supported by a strong backlog and accelerating production rates. Booking activity remained solid across both brands, supporting continued share gains and elevated backlog levels. BASX-branded products ended the quarter with backlog up 160.0%, while AAON‑branded bookings demonstrated continued resilience in a softer market environment.

Gross profit margin in the quarter was 25.1%, compared to 26.8% in the prior-year period. The year‑over‑year decline reflected unabsorbed fixed costs associated with recent capacity investments, temporary outsourcing used to support accelerated growth, and transitory price and cost timing dynamics. These effects are intentional and temporary, and are expected to unwind as internal capacity scales and utilization improves.

Selling, general and administrative expenses as a percent of sales declined 220 basis points to 13.7%, demonstrating strong operating leverage and disciplined cost management.

Earnings per diluted share were $0.48, an increase of 37.1% from $0.35 in the first quarter of 2025.

“First‑quarter results demonstrate strong earnings growth driven by higher volume, improved execution, and continued share gains,” said President and CEO Matt Tobolski. “We delivered record sales, improved cash flow, and higher production throughput across our manufacturing network. Importantly, the additional volume we are taking on is carrying attractive incremental contribution, allowing earnings to grow while we intentionally sequence margin improvement during this phase of capacity ramp.

“Our backlog provides exceptional visibility, particularly across the BASX-brand, and positions us to drive continued growth as we move through the year. At the same time, increasing utilization across existing capacity is expected to support margin improvement over time as fixed costs are absorbed, equipment comes fully online, and productivity continues to improve.

“As we progress through 2026, our priorities are clear and unchanged. Drive throughput, convert backlog, and deliver disciplined margin progression over time. We have built the foundation, and we are now focused on converting that foundation into durable earnings power and long-term returns.”

Backlog

March 31, 2026

December 31, 2025

March 31, 2025

(in thousands)

AAON-branded products

$ 509,806

$ 526,350

$ 403,863

BASX-branded products

1,619,649

1,302,145

623,006

$ 2,129,455

$ 1,828,495

$ 1,026,869

Total backlog increased 107.4% year-over-year to $2.13 billion, and increased 16.5% sequentially. The sequential growth was driven entirely by the BASX brand, with backlog increasing 24.4% from the prior quarter. Sustained data center demand and BASX’s custom-engineered solutions continue to support share gains. As planned, AAON-branded products backlog declined sequentially 3.1%, reflecting a deliberate increase in production to address extended lead times, with manufacturing output exceeding order intake during the quarter. Order activity of AAON equipment remained solid, supporting continued share gains despite softer end-market conditions.

2026 Outlook

Dr. Tobolski concluded, “We are encouraged by the start of the year and the momentum we are seeing across the business. Backlog and demand remain exceptionally strong, providing the visibility and stability needed to maintain a sharp focus on execution, production ramp‑up, and customer fulfillment. We are pleased with the benefits we are starting to see from operational investments, and we have meaningful opportunity ahead to further increase production volumes and enhance productivity, which support improved results over time.

“We now expect 2026 sales to grow 40%-45%, with gross margin of 27%-28%, reflecting intentional ramp decisions early in the year and improving margin as utilization and productivity increases through the year. We anticipate SG&A expenses as a percentage of sales will be 14%-15% and expect depreciation and amortization expenses of $95-$100 million.”

Current

Prior

Metric

FY26

YoY Sales Growth

40%-45%

18%-20%

Gross Profit Margin

27%-28%

29%-31%

SG&A as a % of sales

14%-15%

~16%

Depreciation & Amortization

$95M-$100M

Segment Results

AAON Oklahoma

Three Months Ended

(in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Net sales

$ 243,967

$ 215,503

$ 161,838

Gross profit

$ 64,272

$ 59,168

$ 40,600

Gross profit margin

26.3 %

27.5 %

25.1 %

Net sales for the AAON Oklahoma segment totaled $244.0 million, an increase of 50.7% year-over-year, driven by a strong starting backlog and ongoing production enhancements that improved backlog conversion despite a challenging industry environment. First‑quarter 2026 results also benefited from an easier year‑over‑year comparison, as the prior‑year period was disrupted by the industry’s refrigerant transition, contributing to regained market share.

Gross margin for the segment was 26.3%, compared to 25.1% in the first quarter of 2025. Overhead expenses associated with the new Memphis facility impacted segment margin by $9.8 million. Excluding these costs, segment margins were 29.6%. During the quarter, the segment was impacted by elevated outsourcing levels, price‑cost timing dynamics, and tariff‑related costs, all of which are temporary and do not change the long-term earnings power of the segment.

AAON Coil Products

Three Months Ended

(in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Net sales

$ 117,611

$ 102,619

$ 94,023

Gross profit

$ 28,302

$ 21,827

$ 29,858

Gross profit margin

24.1 %

21.3 %

31.8 %

Net sales for the AAON Coil Products segment totaled $117.6 million, up 25.1% compared to the same period last year. Growth was driven primarily by BASX-branded liquid cooling sales of $93.2 million, up 40.5% during the period, while AAON‑branded sales declined 11.8% year-over-year.

AAON Coil Products gross margin was 24.1%, declining year-over-year from 31.8%, but increasing sequentially from 21.3%. The sequential margin expansion reflected improved operating leverage on higher throughput at the Longview facility, including a favorable mix of higher-margin BASX sales.

BASX

Three Months Ended

(in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Net sales

$ 135,358

$ 106,095

$ 66,193

Gross profit

$ 32,391

$ 28,775

$ 15,906

Gross profit margin

23.9 %

27.1 %

24.0 %

Net sales for the BASX segment increased 104.5% to $135.4 million from $66.2 million in the prior-year period. The year-over-year growth reflected strong demand for data center equipment, supported by robust order intake and elevated backlog levels. Increased production from the Company’s new Memphis facility played a key role by expanding capacity and driving higher sales volumes.

BASX segment gross margin was 23.9%, unchanged from the prior-year period. Margin stability reflected strong volume growth, offset by incremental resources and investments to support future growth and share gains. These incremental costs also contributed to the sequential margin contraction.

Balance Sheet & Cash Flow

As of March 31, 2026, the company had cash, cash equivalents and restricted cash of $1.1 million and a balance on its revolving credit facility of $425.2 million. Andy Cheung, CFO and Treasurer, commented, “During the first quarter, operating cash flow totaled $34.0 million, representing the highest level since the third quarter of 2024. This improvement reflected higher earnings and enhanced working capital efficiency. Capital expenditures totaled $52.9 million, primarily reflecting continued investments in incremental capacity to support future growth. As improvements in profitability and productivity continue, we expect these trends to support stronger cash flow and a healthier balance sheet over time.”

Conference Call

The company will host a conference call and webcast this morning at 9:00 a.m. EST to discuss the first quarter of 2026 results and outlook. The conference call will be accessible via dial-in for those who wish to participate in Q&A as well as a listen-only webcast. The dial-in is accessible at 1-888-880-3330. To access the listen-only webcast, please register at https://app.webinar.net/x89XOEkP41z. On the next business day following the call, a replay of the call will be available on the company’s website at https://aaon.com/investors.

About AAON

Founded in 1988, AAON is a global leader in HVAC solutions for commercial, industrial and data center indoor environments. The company’s industry-leading approach to designing and manufacturing highly configurable and custom-made equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. Its highly engineered equipment is sold under the AAON and BASX brands. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit www.aaon.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “should”, “will”, and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause results to differ materially from those in the forward-looking statements include (1) the timing and extent of changes in raw material and component prices, (2) the effects of fluctuations in the commercial/industrial new construction market, (3) the timing and extent of changes in interest rates, as well as other competitive factors during the year, and (4) general economic, market or business conditions. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in any forward-looking statements, see “Risk Factors” and “Forward Looking Statements” in AAON’s Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by AAON’s Quarterly Reports on Form 10-Q, and AAON’s Current Reports on Form 8-K.

Contact Information

Joseph Mondillo
Director of Investor Relations & Corporate Strategy
Phone: (617) 877-6346
Email: joseph.mondillo@aaon.com

AAON, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

Three Months Ended March 31,

2026

2025

(in thousands, except per share data)

Net sales

$ 496,936

$ 322,054

Cost of sales

371,971

235,690

Gross profit

124,965

86,364

Selling, general and administrative expenses

67,906

51,293

Gain on disposal of assets

—

(40)

Income from operations

57,059

35,111

Interest expense

(5,055)

(2,802)

Other income, net

174

Income before taxes

52,081

32,483

Income tax provision

12,266

3,191

Net income

$ 39,815

$ 29,292

Earnings per share:

Basic EPS

$ 0.49

$ 0.36

Diluted EPS

$ 0.48

$ 0.35

Cash dividends declared per common share:

$ 0.10

Weighted average shares outstanding:

Basic

81,756,604

81,472,351

Diluted

83,179,954

83,351,536

AAON, Inc. and Subsidiaries

Segment Net Sales and Profit

(Unaudited)

Three Months Ended March 31,

2026

2025

(in thousands)

AAON Oklahoma

External sales

$ 243,967

$ 161,838

Inter-segment sales

44,509

3,839

Eliminations

(44,509)

(3,839)

Net sales

243,967

161,838

Cost of sales1

179,695

121,238

Gross profit

64,272

40,600

AAON Coil Products

External sales

$ 117,611

$ 94,023

Inter-segment sales

6,818

3,579

Eliminations

(6,818)

(3,579)

Net sales

117,611

94,023

Cost of sales1

89,309

64,165

Gross profit

28,302

29,858

BASX

External sales

$ 135,358

$ 66,193

Inter-segment sales

(2)

Eliminations

(43)

Net sales

135,358

66,193

Cost of sales1

102,967

50,287

Gross profit

32,391

15,906

Consolidated gross profit

$ 124,965

$ 86,364

1 Presented after intercompany eliminations.

The reconciliation between consolidated gross profit to consolidated income from operations is as follows:

Consolidated gross profit

$ 124,965

$ 86,364

Less: Selling, general and administrative expenses

67,906

51,293

Add: gain on disposal of assets

—

(40)

Consolidated income from operations

$ 57,059

$ 35,111

AAON, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

March 31,
2026

December 31,
2025

2026

2025

Assets

(in thousands, except share and per share data)

Current assets:

Cash and cash equivalents

$ 13

Restricted cash

1,087

1,226

Accounts receivable, net

290,161

314,387

Income tax receivable

19,691

27,445

Inventories, net

313,203

261,151

Contract assets, net

298,368

247,037

Prepaid expenses and other

21,177

17,921

Total current assets

943,700

869,180

Property, plant and equipment, net

654,857

631,262

Intangible assets, net and goodwill

171,913

165,799

Right of use assets

17,335

17,988

Other long-term assets

1,907

2,281

Total assets

$ 1,789,712

$ 1,686,510

Liabilities and Stockholders’ Equity

Current liabilities:

Short-term obligations of NMTC1

7,535

Accounts payable

160,139

110,437

Accrued liabilities

136,731

132,213

Contract liabilities

55,229

80,670

Total current liabilities

359,634

330,855

Debt, long-term

425,154

398,320

Deferred tax liabilities

34,899

30,313

Other long-term liabilities

27,038

23,299

New markets tax credit obligations1

8,778

8,738

Commitments and contingencies (Note 19)

Stockholders’ equity:

Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued

—

Common stock, $.004 par value, 200,000,000 shares authorized, 81,851,483 and 81,691,075 issued and outstanding at March 31, 2026 and December 31, 2025, respectively

327

Additional paid-in capital

71,913

64,358

Retained earnings

861,969

830,300

Total stockholders’ equity

934,209

894,985

Total liabilities and stockholders’ equity

$ 1,789,712

$ 1,686,510

1 Held by variable interest entities

AAON, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended March 31,

2026

2025

Operating Activities

(in thousands)

Net income

$ 39,815

$ 29,292

Adjustments to reconcile net income to net cash provided by (used in) operating activities

Depreciation and amortization

20,903

18,943

Amortization of debt issuance costs

Amortization of right of use assets

(Recoveries of) Provision for losses on accounts receivable, net of adjustments

(120)

Provision for excess and obsolete inventories, net of write-offs

701

Share-based compensation

7,696

4,021

Other

—

(45)

Deferred income taxes

4,586

5,976

Changes in assets and liabilities:

Accounts receivable

24,346

(17,631)

Income tax receivable

7,754

(3,323)

Inventories

(52,753)

(11,489)

Contract assets

(51,331)

(53,235)

Prepaid expenses and other long-term assets

(1,487)

(2,703)

Accounts payable

50,375

21,625

Contract liabilities

(25,441)

1,508

Extended warranties

4,387

Accrued liabilities and other long-term liabilities

4,483

(2,412)

Net cash provided by (used in) operating activities

33,994

(9,214)

Investing Activities

Capital expenditures

(45,127)

(46,723)

Grant proceeds received

1,650

—

Proceeds from sale of property, plant and equipment

—

Acquisition of intangible assets

(7,808)

(3,717)

Principal payments from note receivable

—

Net cash used in investing activities

(51,285)

(50,388)

Financing Activities

Borrowings of debt

252,867

235,925

Payments of debt

(226,033)

(138,411)

Payment related to financing costs

(1,395)

—

Stock options exercised

3,062

4,356

Repurchase of stock – open market

—

(31,536)

Repurchases of stock – LTIP plans (Note 17)

(3,203)

(6,768)

Cash dividends paid to stockholders

(8,146)

(8,095)

Net cash provided by financing activities

17,152

55,471

Net decrease in cash, cash equivalents, and restricted cash

(139)

(4,131)

Cash, cash equivalents, and restricted cash, beginning of period

1,239

6,514

Cash, cash equivalents, and restricted cash, end of period

$ 1,100

$ 2,383

Use of Non-GAAP Financial Measures

To supplement the company’s consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), additional non-GAAP financial measures are provided and reconciled in the following tables. The company believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results. The company believes that this non-GAAP financial measure enhances the ability of investors to analyze the company’s business trends and operating performance as they are used by management to better understand operating performance. Since adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures and are susceptible to varying calculations, adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin, as presented, may not be directly comparable with other similarly titled measures used by other companies.

Non-GAAP Adjusted Net Income

The company defines non-GAAP adjusted net income as net income adjusted for any infrequent events, such as litigation settlements, net of profit sharing and tax effect, in the periods presented.

The following table provides a reconciliation of net income (GAAP) to non-GAAP adjusted net income for the periods indicated:

Three Months Ended March 31,

2026

2025

(in thousands)

Net income, a GAAP measure

$ 39,815

$ 29,292

Add: Memphis incentive fee1

—

2,700

Profit sharing effect2

—

(230)

Tax effect

—

(627)

Non-GAAP adjusted net income

$ 39,815

$ 31,135

Non-GAAP adjusted earnings per diluted share

$ 0.48

$ 0.37

1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.

EBITDA

EBITDA (as defined below) is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator of a company’s ability to internally fund operations. The company defines EBITDA as net income, plus (1) depreciation and amortization, (2) interest expense (income), net and (3) income tax expense. EBITDA is not a measure of net income or cash flows as determined by GAAP. EBITDA margin is defined as EBITDA as a percentage of net sales.

The company’s EBITDA measure provides additional information which may be used to better understand the company’s operations. EBITDA is one of several metrics that the company uses as a supplemental financial measurement in the evaluation of its business and should not be considered as an alternative to, or more meaningful than, net income, as an indicator of operating performance. Certain items excluded from EBITDA are significant components in understanding and assessing a company’s financial performance. EBITDA, as used by the company, may not be comparable to similarly titled measures reported by other companies. The company believes that EBITDA is a widely followed measure of operating performance and is one of many metrics used by the company’s management team and by other users of the company’s consolidated financial statements.

Adjusted EBITDA is calculated as EBITDA adjusted by items in non-GAAP adjusted net income, above, except for taxes, as taxes are already excluded from EBITDA.

The following table provides a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and Adjusted EBITDA (non-GAAP) for the periods indicated:

Three Months Ended March 31,

2026

2025

(in thousands)

Net income, a GAAP measure

$ 39,815

$ 29,292

Depreciation and amortization

20,903

18,943

Interest expense, net

5,055

2,802

Income tax expense

12,266

3,191

EBITDA, a non-GAAP measure

$ 78,039

$ 54,228

Add: Memphis incentive fee1

—

2,700

Profit sharing effect2

—

(230)

Adjusted EBITDA, a non-GAAP measure

$ 78,039

$ 56,698

Adjusted EBITDA margin

15.7 %

17.6 %

1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.

Non-GAAP Adjusted Selling, General and Administrative Expenses

The following table provides a reconciliation of selling, general and administrative expenses (GAAP) to adjusted selling, general and administrative expenses (non-GAAP) for the periods indicated:

Three Months Ended March 31,

2026

2025

(in thousands)

Non-GAAP Adjusted Selling, General and Administrative Expenses

SG&A, a GAAP measure

$ 67,906

$ 51,293

Less: Memphis Incentive Fee1

—

2,700

Profit Sharing effect2

—

(230)

Non-GAAP adjusted SG&A expenses

$ 67,906

$ 48,823

As a percent of sales

13.7 %

15.2 %

1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.

View original content to download multimedia:https://www.prnewswire.com/news-releases/aaon-reports-first-quarter-2026-results-with-record-sales-and-backlog-robust-earnings-growth-and-raises-full-year-guidance-302765303.html

SOURCE AAON

Technology

Tetrous® Wins “Most Exciting New Product” Award at Shoulder 360™

Published

5 hours ago

May 7, 2026

Following its ACE (Advancing Cutting-Edge) Award win in 2024, Tetrous is recognized once again, this time by Shoulder 360™ for its EnFix® product line.

LOS ANGELES, May 7, 2026 /PRNewswire/ — Tetrous, Inc., an emerging leader in orthopedic sports medicine innovation, today announced it has been awarded “Most Exciting New Product” at Shoulder 360, recognizing the company’s continued advancement in solutions for bone-to-tendon healing.

This latest honor builds on Tetrous’ earlier recognition at the AOSSM Annual Meeting, where the company received the prestigious ACE (Advancing Cutting-Edge) Award in 2024—a distinction given to breakthrough technologies with the potential to meaningfully improve patient outcomes in sports medicine. Shoulder 360™ is the pre-eminent forum meeting annually to educate the spectrum of health care providers caring for patients with shoulder disorders.

Tetrous’ product line, including EnFix RC®, EnFix TAC-O®, EnFix TAC-T®, and EnFix ACL™, is designed to address longstanding challenges in orthopedic soft tissue repair, particularly in procedures such as rotator cuff repair, where failure rates remain a significant concern. Restoring the bone-to-tendon interface, known as the enthesis, ultimately determines healing and long-term success.

Tetrous offers the only demineralized bone fiber (DBF) implant designed specifically for placement within bone at the bone-tendon interface, supplying the biological drivers for repair. When the mineral component is removed from allograft bone, the bone morphogenic proteins (i.e. growth factors) are exposed, allowing them to help stimulate new tissue formation. The peg design of EnFix allows surgeons to place the implant directly into the bone at the repair site, while the internal cannulation allows bone marrow cells to access the implant and initiate healing.

Significant Commercial Progress
Since receiving its prior “technology” award, Tetrous has demonstrated significant commercial and clinical progress:

Expanded to more than 100 surgeon users with three times year over year surgeon growthSurpassed 3,500 implanted devices, reflecting strong clinical adoptionExpanded clinical use of EnFix across multiple anatomical enthesesCompleted first cases with EnFix ACL for Anterior Cruciate Ligament ReconstructionScaled distribution internationally, with active markets in the United States, Australia, and New Zealand, and planned expansion into Taiwan

Raffy Mirzayan, MD, DOCS Health, Clinical Professor of Orthopaedic Surgery at USC Keck School of Medicine, Los Angeles, and Co-Founder of Shoulder360 said: “Shoulder360 was proud to award the ‘Most Exciting New Product/Service Award’ for 2026 to Tetrous. The winner of the award is voted on by surgeon attendees. Tetrous stood out for its efforts to highlight Enthesis healing with its exciting new EnFix product.”

“The rapid pace of adoption we’ve seen in the past year is incredibly encouraging,” said John Bojanowski, Director and Chief Commercial Officer. “Surpassing 3,500 implants and expanding internationally are strong indicators that surgeons recognize the value of what Tetrous is bringing to the OR.”

“Our recognition at Shoulder 360 reflects the growing confidence from surgeons who are recognizing that we have introduced a differentiated solution that can complete the healing triad of (a) fixation, (b) structure and, now with Tetrous, (c) biology – leading to better outcomes for patients,” said Bradley Patt, PhD, Co-founder, Director and CEO.

About Tetrous, Inc.
Founded in 2019, Tetrous, Inc. utilizes next generation advanced technologies for enthesis repair in sports medicine applications. The EnFix family of demineralized bone fiber implants includes EnFix RC®, EnFix TAC® and EnFix ACL™, designed to enhance the natural healing response by supporting biologic reformation at the bone-to-tendon junction. By focusing on clinically validated technologies that reduce failure rates, accelerate recovery, and restore function, Tetrous is helping surgeons achieve consistent, evidence-based results that translate into both short-term return to normal activities and long-term positive outcomes for patients.

Tetrous enjoys significant IP protection for its EnFix family of products with multiple issued patents and, additionally, has an exclusive license to the demineralized bone fiber technology used in its products for sports medicine applications from TheraCell, an ISTO Biologics Company.

Tetrous®, EnFix®, EnFix RC®, EnFix TAC® and EnFix ACL™ are trademarks of Tetrous, Inc.

For more information visit Tetrous, Inc., and follow us on LinkedIn.

Media Contact:
Ronda Taylor
Tetrous, Inc.
331-307-7499
rtaylor@tetrous.com

Product Information:
John Bojanowski
Tetrous, Inc.
331-307-7499
jbojanowski@tetrous.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/tetrous-wins-most-exciting-new-product-award-at-shoulder-360-302764891.html

SOURCE Tetrous