COCO 10-K & 10-Q changes, risk factors and insider trading

Our coconut water accounted for 96% of our revenue for the year ended December 31, 2024.2025. We believeexpect that sales of our coconut water will continue to constitute a significant portion of our revenue, income and cash flow for the foreseeable future. Any material negative change to consumer demand for our products or coconut water generally or failure to grow the coconut water category could materially and adversely affect our business, financial condition, results of operations and cash flows. We are also subject to the risk of overly relying upon a few large customers (whether serviced directly or through distributors) in a particular market due to the concentration that exists in retail ownership in our key markets and our significant privatePrivate labelLabel business with several large retailers. We cannot be certain that consumer and retail customer demand for our other existing and future products will expand to reduce this reliance on coconut water and allow such products to represent a larger percentage of our revenue than they do currently. Accordingly, any factor adversely affecting demand or sales of our coconut water or coconut water generally or a negative decision by a major retailer, could have a material adverse effect on our business, financial condition, results of operations and cash flows. For example, in 2023, we started the discontinuation of the private label coconut water and coconut oil supply relationship with one of our significant customers asdiscontinued the termsPrivate requiredLabel tococonut retain the business were contrary to our long term margin targets. While we continued theoil supply relationship forin aearly significant2024, portionand ofwe theiralso privateexperienced labelan impact in Private Label coconut water needsnet sales in 20242025 atwith thethis customer'scustomer request,due we are expectingto the loss of furthersome regions that we previously serviced for this customer. However, this customer duringhas 2024.requested to restart supply in early 2026 for one of those lost regions. We will continue to service their needs if we are asked and it aligns with our long-term margin targets. Generally, privatethe labelPrivate Label business is rebid regularly, and adjustments are often made to the regional areas serviced, or a complete transfer of the business to another supplier. These changes can be abrupt and difficult to predict.

Our supply chain is heavily reliant on third-party partners, and our success is dependent upon our ability to maintain our relationships with existing partners and enter into new arrangements in the future. Any changes to the relationships with our existing partners, including deprioritizing or experiencing delays in our production, or terminating the relationship could adversely affect our business. Furthermore, if we need to find an alternative or new manufacturing or co-packing partner, we would need to spend a significant amount of time and resources to ensure the new partner can meet our standards for quality control and have the necessary capabilities, responsiveness, high-quality service and financial stability, among other things, that align with our values and mission. We may need to assist that manufacturing or co-packing partner in purchasing and installing packaging and processing capability which may further delay and increase the financial costs of including them in our supply network and increase the financial risk of that relationship. Although we do not rely on our co-packing partners for the sourcing of raw materials, we face similar risks related to the operations and quality of services provided by such partners. Continued growth in demand could require the addition of new capacity and partners and there is no guarantee that such additions will be as cost competitive as our current suppliers. If we are unable to manage our supply chain effectively and ensure that our products are available to meet consumer demand, we may not have the ability to pursue our growth strategy, our sales mightmay decrease, and our business, financial condition, results of operations and cash flows may be materially adversely affected.

Our independent shipping partners transport our products from the country of origin or from our domestic co-packing partners, which are then received by, and subsequently distributed fromfrom, our third party warehousing and fulfillment service providers to our distributors and retail-direct customers by our third party transportation partners or customer pickup. We depend in large part on the orderly operation of this receiving and distribution process from these third party partners, which depends, in turn, on timely arrival of products from ports or co-packers, availability of outbound and inbound shipping, real-time tracking information on our products location, and effective operations at the warehouses or distribution centers and the ports through which our products flow. Any increase in transportation costs (including increases in fuel costs), increased shipping costs or shipping transit times, increased warehouse costs, issues with overseas shipments or port or supplier-side delays, reductions in the transportation capacity of carriers, labor strikes or shortages in the transportation industry, disruptions to the national and international transportation infrastructure, decreased warehouse availability including due to labor shortages, and unexpected delivery interruptions or delays may increase the cost of, and adversely impact, our logistics, and our ability to provide quality and timely service to our distributors or retail-direct customers. For example, in 2024 we experienced instability in pricing for ocean freight caused by geopolitical disruption of shipping lanes due to ocean carriers avoiding the Gulf of Aden and the Red Sea, due primarily to concerns that Houthi forces, based in Yemen, may attack freighters. We experienced spot cost increases for ocean freight routes from Asia, and then more significant cost increases when carriers began to route away from the Suez Canal, which also led to challenges in ocean freight availability and transit times, impacting our available inventory. The inability to fulfill or any delays in processing customer or consumer orders from the warehousing or fulfillment centers of our providers, or any quality issues could result in the loss of consumers, retail partners or distributors, or the issuances of penalties, refunds or credits, and may also adversely affect our reputation.

Furthermore, international instability, including volatility in global oil marketsmarkets, ongoing geopolitical tensions or ongoing geopoliticaltrade tensions, including the imposition of tariffs, may affect our supply chain, impacting our ratescosts and our capacity to timely supply our products. As disclosed above, our shipping routes and costs, have been impacted by ocean carriers avoiding the Red Sea and Gulf of Aden, due to concerns that Houthi forces based in Yemen have been attacking freighters. It is hard to predict where ocean freight rates and capacity will be in the future and what long-term rates could be. A significant partMost of our business relies on shipping prepackaged coconut water from sourcing countries to our countries of sale so we are very dependent on shipping container prices and service levels and cost increases in shipping and the imposition of tariffs have materially impacted our financial results in recent years. Due to the price sensitivity of our products, we may not be able to pass such increases on to our customers. Any such disruption or unanticipated event may cause significant interruptions or delays in our business and the reduction or loss of inventory may render us unable to fulfill customer orders in a timely manner, or at all, which could materially adversely affect our business, financial condition, results of operations and cash flows.

Maintaining adequate inventory requires significant attention to and monitoring of: market trends, local market demands; performance of our raw material suppliers and manufacturers, our logistics suppliers and distributors; the impact of tariffs and trade restrictions; and the collection of data to enable efficient forecasting and inventory management. Although we seek to forecast and plan our product needs sufficiently in advance of anticipated requirements to facilitate reserving production time at our manufacturing and co-packing partners, and arranging for the availability and supply of packaging and ingredient materials, our product takes many weeks to arrive at our warehouses from our manufacturing partners, which reduces our flexibility to react to short term or unexpected consumer demand changes, or changes andin transit times, as it can require planning as much as six months in advance to coordinate all materials for production. As we expand our operations, it may be more difficult to effectively manage our inventory as the complexity increases. In any cases where consumers might not have access to our products, our reputation and brands could be harmed, and consumers may be less likely to recommend our products in the future. If we are not successful in managing our inventory balances, it could have a material adverse effect on our business, financial conditions, results of operations and cash flows.

The coconuts from which our products are sourced, and the harvesting and transportation of them to our manufacturing partners, are vulnerable to adverse weather conditions and natural disasters, such as floods, droughts, earthquakes, hurricanes, typhoons, pestilence and other shortages and disease, as well as political events and other conditions which can adversely impact quantity and quality, leading to reduced coconut yields and quality, which in turn could reduce the available supply of, or increase the price of, our raw materials. Our manufacturing partners may have general difficulties in obtaining raw materials, particularly coconut derived products, due to our high quality standards. Our current manufacturing partners operate in the Philippines, Sri Lanka, Malaysia, Thailand, Brazil, Vietnam, and Indonesia, and source coconuts from owned trees and networks of many independent small farmers, while some of our co-packers operate in Canada, Mexico, the U.S., and the U.K. and source co-packing materials from these regions. Thus, while we attempt to mitigate the risk by sourcing in multiple geographic areas, the supply of coconuts and other ingredients and materials may be particularly affected by any adverse events in these countries or regions. Any disruption in the ability of our manufacturing partners to source coconuts or other raw materials from their local suppliers to produce our finished goods would result in lower sales volumes and increased costs, and may have a material adverse effect on our business, financial condition, results of operations and cash flows if the necessary supply cannot be replaced in a timely manner or at all.

Our financial performance is largely dependent on our Americas operating segment, which accounted for approximately 86%83% of consolidated total net revenue in fiscal year 2024.2025. Because the Americas segment is more mature and produces the majority of our operating cash flows, any slowdown or decline in this segment may adversely affect our business, financial condition, results of operations and cash flow. Our International segment may be unable to make up any significant shortfall if our Americas segment, specifically the U.S. market, were to slow or decline, and our business and financial results could be adversely affected.

A decision by either of our largest retail customer or distributor, or any other major distributor or retail customer, whether motivated by marketing strategy, competitive conditions, financial difficulties or otherwise, to decrease significantly the quantity or breadth of product purchased from us, or to change their manner of doing business with us and their support of our products, could substantially reduce our revenue and have a material adverse effect on our business, financial condition, results of operations and cash flows. For example, as previously disclosed, in 2023 we agreed to start to discontinue the privatePrivate labelLabel coconut water and coconut oil supply relationship with one of our significant customers as the terms required to retain the business were contrary to our long term margin targets. While we continued the supply relationship for a significant portion of their privatePrivate labelLabel coconut water needs in 2024 at the customer's request, in 2025, we are expecting in 2025experienced the loss of further regions that we serviced for this customer in 2024.2024, resulting in a decline in Private Label volume growth in 2025. We have been asked to service one of the regions that we lost starting in 2026, which illustrates the uncertainty in the Private Label segment. In addition, any store closings or changes in retail strategy by our retail customers, particularly our largest retail customer, could reduce the number of stores or regions carrying our products, or stores may purchase a smaller amount of our products and/or may reduce the retail floor space designated for our products. If any negative change in our relationship with our largest distributor and retail customer or other customers occurs, any other disputes with key customers arose, if we were to lose placement and support of any of our key customers or if any of our key customers consolidate and/or gain greater market power, our business, financial condition, results of operations and cash flows would be materially adversely affected. In addition, we may be similarly adversely impacted if any of our key customers, particularly our largest distributor and retail customer, experience any operational difficulties or generate less traffic.

We expect competition in the natural, organic and functional food and beverage industry to continue to increase. We believe that our ability to compete successfully in this market depends upon many factors both within and beyond our control. If we fail to compete successfully in this market, our business, financial condition, results of operations and cash flows would be materially and adversely affected.

The success of any future acquisitions will be dependent upon our ability to effectively integrate the acquired products and operations into our business. Integration can be complex, expensive and time-consuming. The failure to successfully integrate acquired products or businesses in a timely and cost-effective manner could materially adversely affect our business, prospects, results of operations and financial condition. The diversion of our management’s attention and any difficulties encountered in any integration process could also have a material adverse effect on our ability to manage our business. In addition, the integration process could result in the loss of key employees, the disruption of ongoing businesses, litigation, tax costs or inefficiencies, or inconsistencies in standards, any of which could adversely affect our ability to maintain the appeal of our brands and our relationships with customers, employees or other third parties or our ability to achieve the anticipated benefits or synergies of such acquisitions and could harm our financial performance.

•unfavorable changes or proposed changedchanges in U.S. trade policies, including with respect to treaties, tariffs, quotas, trade barriers or other export or import restrictions, including navigating the changing relationships between countries such as the U.S. and China and between the U.K. and the European Union ("EU");

ForIn example, in 20242025 the politicalU.S. unrestgovernment in the Gulf of Aden and Red Sea regions caused ocean freight carriers to reroute away from the Suez Canal, which resulted in longer transit times, increased ocean freight costs and shortages in ocean freight capacity, all of which affected our operations. Recently, there have been discussions about potentialimplemented tariffs and other import related fees on goods, including thosecoconut importedwater from China, MexicoAsia and Canada,Brazil, andwhich whilewere theultimately specificswaived arelater unclear,in if2025. If tariffs or other import related fees are implemented on goods from these countries, or other countries where the Company does business, they may raise the Company's cost of importation of coconut water and require the Company to adjust its pricing or strategy. An inability to effectively manage these risks associated with our international operations could adversely impact our business and financial results. For more information see the risk factor captioned “If we encounter problems or interruptions with our supply chain, our costs may increase and our or our customers’ ability to deliver our products to market could be adversely affected, impacting our business and profitability.”

In recent years, there has been an increase in attention to and regulation of data protection and data privacy across the globe, including the FTC’s increasingly active approach to enforcing data privacy in the U.S., as well as the enactment of the EU’s General Data Protection Regulation (“GDPR”), which took effect in May 2018, the U.K.’s transposition of GDPR into its domestic laws, which took effect September 2021, the California Privacy Rights Act (“CPRA”), which took effect January 1, 2023 and expands the California Consumer Privacy Act (“CCPA”) of 2020, Virginia’s Consumer Data Protection Act, which also took effect January 1, 2023, and similar comprehensive privacy laws adopted in other states and jurisdictions including Colorado, Connecticut, and Utah. Additionally, Indiana, Montana, Oregon, Tennessee, Texas, Kentucky, Maryland, Minnesota, New Hampshire, New Jersey and Rhode Island have adopted similar laws takingthat took effect in 2025 or will take effect at different dates through 2025 and 2026. Additional U.S. states are considering passing similar data laws. On a federal level, the U.S. Congress has introduced several iterations of a federal comprehensive privacy law. If a federal privacy law passed, it would likely supersede the new state privacy laws and establish uniform privacy protections across the country.

In May 2020, we entered into a five-yearOur credit facility ("2020 Credit Facility") with Wells Fargo Bank, National Association,Association which(the we“Credit amendedFacility”), matures in February 2030 and extended for five years on February 14, 2025, consistingconsists of a revolving line of credit,credit which currentlythat provides for committed borrowings of $60 million. As of December 31, 2024,2025, we have no outstanding debt under our 2020 Credit Facility. Our ability to make principal and interest payments on and to refinance any indebtedness we incur in the future will depend on our ability to generate cash in the future. This, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond our control. If our business does not generate sufficient cash flow from operations, in the amounts projected or at all, or if future borrowings are not available to us in amounts sufficient to fund our other liquidity needs including working capital needs or acquisition needs, our financial condition and results of operations may be adversely affected. If we cannot generate sufficient cash flow from operations to make scheduled principal amortization and interest payments on our future debt obligations, we may need to refinance all or a portion of our indebtedness on or before maturity, sell assets, delay vendor payments and capital expenditures, or seek additional equity investments. If we are unable to refinance any of our indebtedness on commercially reasonable terms or at all or to effect any other action relating to our indebtedness on satisfactory terms or at all, our business may be harmed.

Our 2020 Credit Facility imposes certain terms and restrictive covenants of these borrowings and the terms of any future indebtedness will likely impose similar restrictions. The 2020 Credit Facility contains, and agreements governing any future indebtedness may contain, a number of covenants which put some limits on our ability to, among other things:

The 2020 Credit Facility also requires us to maintain a specified total leverage ratio, fixed charge coverage ratio and asset coverage ratio and our ability to meet these financial ratios may be affected by events beyond our control, and we may not satisfy such a test. A breach of the covenants in the 2020 Credit Facility or any agreements governing future debt obligations could result in a default under such agreements. By reason of cross-acceleration or cross-default provisions, other indebtedness may then become immediately due and payable. Our assets or cash flows may not be sufficient to fully repay borrowings under our outstanding debt instruments if accelerated upon an event of default. If amounts owed are accelerated because of a default and we are unable to pay such amounts, our lenders may have the right to assume control of substantially all of the assets securing the indebtedness.

Borrowings under the 2020 Credit Facility accrue interest at variable rates and expose us to interest rate risk. Interest rates may fluctuate in the future. Although we have explored in the past various hedging strategies, we do not currently hedge our interest rate exposure under the 2020 Credit Facility. As a result, interest rates under the agreement or other variable rate debt obligations could be higher or lower than current levels. If interest rates increase, our debt service obligations on any future variable rate indebtedness could be significant.

Based upon our shares of common stock outstanding as of December 31, 2024,2025, our executive officers, directors and shareholders who own more than 5% of our outstanding share capital, in the aggregate, beneficially own overapproximately 30% of our outstanding shares of common stock. These shareholders, acting together, are able to significantly influence all matters requiring shareholder approval, including the election and removal of directors and approval of any merger, consolidation or sale of all or substantially all of our assets.

As a public benefit corporation, we may be less attractive as a takeover target than a traditional company would be, and, therefore, your ability to realize your investment through a sale may be limited. Under Delaware law, a public benefit corporation cannot merge or consolidate with another entity if, as a result of such merger or consolidation, the surviving entity’s charter “does not contain the identical provisions identifying the public benefit or public benefits,” unless the transaction receives approval from two-thirdsa majority of the target public benefit corporation’s outstanding votingshares shares.entitled to vote thereon. Additionally, public benefit corporations may also not be attractive targets for activists or hedge fund investors because new directors wouldmust stillbalance havestockholders’ topecuniary considerinterests, the best interests of those materially affected by the corporation’s conduct, and givethe appropriate weight to thespecific public benefit(s) alongidentified with shareholder value, and shareholders committed toin the publiccharter. benefitStockholders meeting the statutory ownership thresholds can enforce this balancing duty through derivative suits. Further, bybecause requiringDelaware thatpublic benefit corporate law requires boards of directors of public benefit corporations considerto balance additional constituencies otherand thanthe maximizingcorporation’s shareholder value, Delawarespecified public benefitbenefits, corporation lawit could potentially make it easier for a board to reject a hostile bid,bid eventhat where the takeover would provideoffers the greatest short-term financial yield to investors.investors but is inconsistent with that balancing. Additionally, being a public benefit corporation may result in a different assessment of potential acquisitions than a traditional corporation and may limit the suitable pool of such targets.

Our branded portfolio is led by our Vita Coco brand, which is the leader in the coconut water category in the U.S., and also includes coconut oil, juice, and milk offerings. Our otherportfolio brandsalso include Ever & Ever, a sustainably packaged water, andincludes PWR LIFT, a protein-infused fitness drink. We also previously offered Runa, a plant-based energy drink inspired by the guayusa plant native to Ecuador, which we ceased selling in December 2023.2023 Weand impaired all remaining assets in September 2025. Additionally, we supply privatePrivate labelLabel products to key retailers in both the coconut water and coconut oil categories.categories Additionally, weand generate revenue from bulk product sales to beverage and food companies.

We source our coconut water from a diversified global network of 17approximately 16 factories across sevensix countries supported by thousands of coconut farmers. As we do not own any of these factories, our supply chain is a fixed asset-lite model designed to better react to changes in the market or consumer preferences. We also work with co-packers across four countries to support local packaging and repacking of our products and to better service our customers’ needs.

Vita Coco is available in over 35 countries, with our primary markets in North America, the U.K.,United Kingdom, and Germany. Our primary markets for privatePrivate labelLabel are North America and Europe. Our products are distributed primarily through club, food, drug, mass, convenience, e-commerce, and foodservicefood service channels. Our products are also available in a variety of on-premise locations such as corporate offices, fitness clubs, airports, and educational institutions.

We also experienced significant inflation and instability on transportation costs over the past threefour years, which affected our costs and margins significantly. Although we saw these transportation costs return to near pre-pandemic levels in the middle of 2023, in 2024, we saw significant cost increases and supply constraints caused by recent geopolitical disruption. We expectexperienced instability in pricing toand continueincreased causedtransit by recent geopolitical disruption of shipping lanestimes, due to ocean carriers avoiding the Gulf of Aden and Red Sea regions due primarily to concerns that Houthi forces, based in Yemen, may attack freighters. We experienced spot cost increases for ocean freight routes from Asia, and then more significant cost increases when carriers began to route away from the Suez Canal. As a result, beginningBeginning in the late spring of 2024 and for most of thethat summer, we were challenged to secure the ocean container capacity that we needed. InDuring early2025, Octoberwe 2024,saw theperiodic eastcost coastsurges ports of the U.S. experienced a labor strike that temporarily shut those ports, resulting in some delays even after the ports reopened. While a deal has been announced to enter into a new labor agreement, and no port disruption is expected, it is unclear if a final agreement has been ratified, so some disruption risk remains. When disruptions like port strikes are anticipated, theon ocean freight carrierscosts maythat issuewere noticesunexpected, ofalthough impendinggenerally surchargesthrough the year saw a decline in rates ending the year closer to bepre-pandemic applied if the disruption occurs, which creates uncertainty as to our actual expected costs.levels. The changes in shipping container prices and service levels and cost increases in shipping and port congestion related costs have materially impacted our financial results in recent years.years and may do so in the future. Due to the price sensitivity of our products, we may not be able to pass such increases on to our customers without impacting our volume, revenue, margins, and operating results and we have no certainty when these pressures may lessen. The Company is continuing to monitor the situation carefully to understand any future potential impact on its people and business.

Coconut water accounted for 96% of our revenue for the year ended December 31, 20242025 and we believe that sales of coconut water will continue to be a significant portion of our business in the foreseeable future. The coconut water category has been growing steadily in recent years and our Vita Coco brand has successfully retained over 40% market share in the U.S. and over 82%80% market share in the U.K. in this category. We are also a significant supplier of privatePrivate labelLabel coconut water and coconut oil products in the U.S. and Europe. Any material negative change to consumer demand for our products or coconut water generally, failure to grow the coconut water category, or loss of significant privatePrivate labelLabel demand, could adversely affect our business. Consumer demand between branded products and privatePrivate labelLabel may vary over time. In order to meet this consumer demand for our products, we also are subject to the risk of overly relying upon our largest customers for both our branded and privatePrivate labelLabel business. ForOne example,of inour 2023,significant wecustomers starteddiscontinued the discontinuationPrivate of the private label coconut water andLabel coconut oil supply relationship within oneearly of2024, our significant customers as the terms required to retain the business were contrary to our long term margin targets. Whileand we continuedalso theexperienced supplyan relationshipimpact forin aPrivate significant portion of their private labelLabel coconut water needsnet sales in 20242025 atwith thethis customer'scustomer request,due we are expectingto the loss of furthersome regions that we previously serviced for this customer. However, this customer duringhas 2024.requested to restart supply in early 2026 for one of those lost regions. We will continue to service their needs if we are asked and it aligns with our long-term margin targets. Any loss of business or changes in our relationships with our key customers can impact our operating results in future periods, as may changes in consumer demand for privatePrivate labelLabel versus branded products.

The beverage industry is subject to shifting consumer preferences which present opportunities for new beverage occasions, tastes and functional benefits. Our future success is therefore partially dependent on our ability to identify these trends and develop products and brands that effectively meet those needs. We also invest in sales and marketing and execute our sales strategy to develop and deepen consumers’ connection to our brand and new products and to create category growth and increase our branded share. Our innovation efforts focus on developing and marketing product extensions, improving upon the quality and taste profiles of existing products, and introducing new products or brands to meet evolving consumer needs. For example, in 2024 we introduced Vita Coco Treats, a refreshingly sweet, flavorful coconutmilk-basedcoconut milk-based drink for consumers looking for an indulgent treat. In 2025, we intend to expandexpanded distribution of Vita Coco Treats to select retailers nationwide.

To aid the growth of our business, we intend to continue improving our operational efficiency and leverage our brand position across channels, and therefore have a balanced approach to investment and development of capabilities in retail and e-commerce execution. Our DSD network is an important asset in executing physical retail programs and ensuring product availability and visibility in the U.S. In 2024,2025, we offeredcontinued moreto prioritize multi-packs in coconut water in U.S. retail to increase consumption with core consumers, and increased distribution of our other product offerings. Managing our DSD network requires relationship building and communication as to plans, and alignment of goals and interests, and we are not always a top priority for our DSD network. We also continue to expand our business in e-commerce, including our DTC business, and look to adapt our approaches as consumer and retail behavior changes to ensure we remain competitive and visible regardless of channel.

Cost of goods sold includes the costs of the products sold to customers, inbound and outbound shipping and handling costs, freight and duties,duties (including tariffs), shipping and packaging supplies, and warehouse fulfillment costs.

•International—The International segment is comprised of our operations primarily in Europe, the Middle East, and the Asia Pacific regions.regions, which includes our sourcing entity.

•Other—This product category consists of all other products, which included Runa (until we ceased selling it in December 2023), and includes Ever & Ever and PWR LIFT product offerings, Vita Coco product extensions beyond coconut water, such as coconut milk products, including Vita Coco Treats; PWR LIFT; Ever & Ever; Runa (until the Company ceased selling in December 2023); Vita Coco coconut oil sold internationally; and other revenue transactions (e.g., bulk product sales). For these products, control is transferred upon customer receipt, at which point thewe Company recognizesrecognize the transaction price for the product as revenue.

The increase in net sales was driven by higher coconut water CE volumes across both the Americas and International segments, including Vita Coco Coconut Water volume growth of 5.8%21.3% and improvedincreased Vita Coco Coconut Water pricing due to reduced retailer promotional activity,pricing, partially offset by thereduced transitionPrivate ofLabel privatewater labelvolume oildue business.to lost regions with key retailers.

Americas net sales increased by $12.1$66.4 million, or 2.8%, to $442.3 million for the year ended December 31, 2024, from $430.2 million for the year ended December 31, 2023,15.0%, primarily driven by CE volume growth of 2.7%11.2% with additional benefit from branded pricing. These increases were partially offset by a decline in privatePrivate labelLabel volumesales duein tocertain the transition outregions of private label oil at a key customer, and supply constraints impacting private label coconut water.retailers.

Vita Coco Coconut Water net sales increased by $26.1$81.0 million, or 8.2%,23.6%, to $343.3 million for the year ended December 31, 2024, from $317.2 million for the year ended December 31, 2023. The increase was primarily driven byreflecting a combination of increased CE volume growth and benefits from net pricing actions.

International net sales increased by $10.3$27.3 million, or 16.3%, to $73.7 million for the year ended December 31, 2024 from $63.4 million for the year ended December 31, 2023. The increased sales were37.1%, driven by 33.7% CE volume growth of 12.8%,growth, with notable growth in the Europe,United theKingdom Middle East("U.K.") and Africa ("EMEA") region,Germany, in addition to benefits from net pricing actions.

Vita Coco Coconut Water net sales increased by $8.5$21.6 million, or 20.3%,43.0%, to $50.3 million for the year ended December 31, 2024, from $41.8 million for the year ended December 31, 2023. The increased sales was driven byreflecting higher CE volume, primarily in the European region,Europe, and benefits from net pricing actions. These increases were partially offset by volume decreases in the Asia Pacific region ("APAC").

Private Label net sales increased by $0.6$6.6 million, or 3.3%,34.3%, primarily due to $19.3 million for the year ended December 31, 2024, as compared to $18.7 million for the year ended December 31, 2023, which was driven by CE volume growth in EMEA, which wasEurope, partially offset by CEthe volumeloss declineof Private Label coconut oil sales in shipmentsthe fromAsia APAC.Pacific region.

For the year ended December 31, 2025, we recorded an unrealized gain of $4.7 million related to mark-to-market changes on outstanding forward foreign currency exchange contracts, with the gains related to contracts hedging the Brazilian real and Thai baht, partially offset by losses on the British Pound, Euro, and Canadian dollar. During the year ended December 31, 2024, we recorded an unrealized loss of $8.2 millionmillion, forprimarily therelated mark-to-market changes in the fair value on theto outstanding derivative instruments for forward foreign currency exchange contracts, with the largest loss for the year ended December 31, 2024 related to the contracts hedging the Brazilian real, partially offset by gains inon the British Pound, Euro, and Canadian dollar. During the year ended December 31, 2023, we recorded an unrealized loss of $0.9 million relating to outstanding derivative instruments for forward foreign currency exchange contracts. All forward foreign currency exchange contracts were entered into to hedge some of our exposures to the British pound, Canadian dollar, Brazilian real, Malaysian ringgit, Euro, and Thai baht.

Foreign currency loss was $1.6$1.0 million for the year ended December 31, 2024, asmillion, compared to a $0.3$1.6 million loss for the prior year endeddriven December 31, 2023. The change in both years was a result ofby movements in various foreign currency exchange rates related toon transactions denominated in currencies other than the functional currency.

Income tax expense was $14.8$21.7 million forin the year ended December 31, 2024, as2025 compared to $11.3$14.8 million forin the yearprior ended December 31, 2023.year. The effective combined federal, statestate, and foreign tax rate increased to 21.0%23.3% from 19.5%21.0% for the years ended December 31, 20242025 and 2023,2024, respectively.

(c)Reflects otheran non-recurringexpense expenseswaiver relatedof tocertain costs associated with twoa secondary offeringsoffering in which Verlinvest Beverages SA sold shares of the Company. The shares were sold in an underwritten public offering, which closed on May 26, 2023 and a block trade that was executed on November 9, 2023. The Company did not receive any proceeds from the sale of the shares.

(d)For the year ended December 31, 2025, the amount reflects $2.4 million related to a one-time 2023 incentive program that is measured based on full-year 2025 performance relative to 2022 structured differently from our other ongoing employee incentive programs, $1.2 million of overlapping rent expense related to our New York City office, $0.2 million of impairment loss related to Runa, and a gain of $0.2 million from a sale of intellectual property. For the year ended December 31, 2024, the amount reflects the write-off of prepayments made to a supplier for inventory orders. In November 2024, we learned that the supplier failed to produce the orders placed and paused operations. Further, the supplier did not provide a refund for such orders. For the year ended December 31, 2023, the amount relates to the impairment loss of assets held for sale.

Considering recent market conditions and our business assumptions, we have reevaluated our operating cash flows and cash requirements and believe that current cash, cash equivalents, future cash flows from operating activities and cash available under our 2020 Credit Facility will be sufficient to meet our anticipated cash needs, including working capital needs, capital expenditures and contractual obligations for at least 12 months from the issuance date of the condensed consolidated financial statements included herein and the foreseeable future.

During the year ended December 31, 2024,2025, cash provided by operating activities decreasedincreased $64.3$4.3 million as compared to the year ended December 31, 2023.2024. The decrease in cash provided by operating activities was substantially driven by an increase in inventory purchases to rebuild inventory to improved levels to better support the business, and the timing of certain working capital payments, partly offset by higher cash generation fromwas driven by the businessincrease growth.in net income after adjusting for non-cash items and a minor improvement in working capital.

During the year ended December 31, 20242025 as compared to the year ended December 31, 2023,2024, cash used in investing activities increased $0.4$7.3 millionmillion. The increase was primarily due to equipmentleasehold purchasesimprovements related to the new New York, London, and technologySingapore related capital expenditures.offices.

During the year ended December 31, 20242025 compared to the year ended December 31, 2023,2024, net cash used by financing activities increaseddecreased $14.6$0.8 million, primarily driven by fewer share repurchases that occurred in 20242025 andcompared lowerto proceeds from stock award exercises.2024. See Note 14, Stockholders' Equity, for further discussion on share repurchases.

In May 2020, the Company entered into the 2020 Credit Facility with Wells Fargo Bank, National Association consisting of a revolving line of credit, which currently provides for committed borrowings of $60 million. On February 14, 2024,2025, the 2020 Credit Facility was amendedamended, andextending extendedthe formaturity five years,years with an amended maturity date ofto February 13, 2030.

Starting in December 2022, borrowings on the 2020 Credit Facility bear interest at rates based on either: 1) a fluctuating rate per annum determined to be the sum of Daily Simple Secured Overnight Financing Rate ("SOFR") plus a spread defined in the credit agreement (the "Spread"); or 2) a fixed rate per annum determined to be the sum of the Term SOFR plus the Spread. The Spread ranges from 1.00% to 1.75%, which is based on the Company’s leverage ratio (as defined in the credit agreement) for the immediately preceding fiscal quarter as defined in the credit agreement. In addition, through February 13, 2025, the Company was subject to an unused commitment fee ranging from 0.10% and 0.20% on the unused amount of the line of credit in the year ended December 31, 2024,credit, with the rate based on the Company’s leverage ratio (as defined in the credit agreement). Beginning onStarting February 14, 2025, the unused commitment fees will rangeranged from 0.125%0.13% toand 0.225%.0.23% on the unused amount of the line of credit, with the rate being based on the Company’s leverage ratio (as defined in the credit agreement).

There were no amounts drawn on the RevolvingCredit Facility as of December 31, 20242025 and December 31, 2023,2024, respectively. As of December 31, 2024,2025, we were compliant with all financial covenants.

We periodically enter into vehicle loans. Interest rate on these vehicle loans range from 4.56% to 5.68%. The outstanding balance on the vehicle loans as of December 31, 20242025 was less than $0.1 million.immaterial.

We have contractual obligations to repay indebtedness and required interest payments and unused commitment fees under our RevolvingCredit Facility and vehicle loans. As of December 31, 2024,2025, we had no outstanding balance on the RevolvingCredit Facility. Any future outstanding balances on the RevolvingCredit Facility will be required to be repaid by February 2030.

We lease certain assets under noncancelable operating leases, which expire through 2025.2034 The leases relate primarilyrelating to our office space in addition to machinery and equipment.spaces. Future minimum commitments under these leases are $0.418.6 million as of December 31, 2024.2025.

The Company provides trade promotions and sales discounts to its customers and distributors. Since these sales promotions and sales discounts do not meet the criteria for a distinct good or service, they are primarily accounted for as a reduction of revenue and include payments to customers and distributors for performing activities on our behalf, such as payments for in-store displays, payments to gain distribution of new products, payments for shelf space and discounts to promote lower retail prices. These consolidated financial statements include accruals for these promotionpromotions and discounts. The accruals are made for invoices that have not yet been received as of year-end and are recorded as a reduction of sales, and are based on contract terms and our historical experience with similar programs and require management judgementjudgment with respect to estimating customer and consumer participation and performance levels.

TheWe Company hashave determined that there are three reporting units for purposes of testing goodwill for impairment. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. In performing the qualitative assessment, the Company reviews factors both specific to the reporting units and to the Company as a whole, such as financial performance, macroeconomic conditions, industry and market considerations, and the fair value of each reporting unit at the last valuation date. If the Company elects this option and believes, as a result of the qualitative assessment, that it is more likely than not that the carrying value of each of the reporting units exceeds their fair value, the quantitative impairment test is required; otherwise, no further testing is required.

Please refer to Part I, Item 1A. "Risk Factors" of our Form 10-K for the fiscal year ended December 31, 2025 for a description of certain significant risks and uncertainties to which our business, financial condition and results of operations are subject. We provide below the material changes to our risk factors described in our Annual Report as of MarchJune 31,30, 2026. If any of these risks or others not specified materialize, our business, financial condition and results of operations could be materially and adversely affected:

The ongoing military conflict involving Iran and related disruption in the Middle East, may adversely affect our business, supply chain, financial condition, and results of operations.

U.S. and Israeli military operations against Iran, which commenced in February 2026, have caused significant disruption to global energy markets and supply chains, contributing to increased oil prices, inflationary pressures, and heightened market volatility. The disruption to energy shipments through the Strait of Hormuz has increased fuel and energy costs and created uncertainty in fuel availability for our suppliers and their manufacturing operations. These conditions could increase our cost of operations, creatingcreate inflationary pressures on our cost of goods and could constrain the production of finished goods we source from those facilities. TheAlthough there have been diplomatic efforts and efforts to reopen or normalize shipping through the Strait of Hormuz, the implementation, durability and effectiveness of any such arrangements remain uncertain, and shipping, energy and commodity markets may continue to experience volatility or renewed disruption. We also rely on logistics providers with transit routes through, or otherwise affected by, the region, and the imposition of additional sanctions, cyberattacks, further escalation or additional military action, renewed restrictions on maritime traffic, delays in restoring normal shipping flows, or other governmental or market responses could have an adverse effect on the global supply chain, energy markets, commodity prices, currency exchange rates, financial markets and overall macroeconomic environment in which we operate, and could result in material increases in our costs, delays in product delivery and reduced customer demand. The duration and scope of the conflict and related market and supply chain disruptions remain uncertain, and our business and financial condition, results of operations and cash flows may be materially adversely affected.

As of MarchJune 31,30, 2026, we sourcesourced our products from a diversified global network of approximately 1620 factories,factories and co-packers, supported by coconut farmers across sixthe countries.world. As we dodid not own any of these facilities, our supply chain is a fixed asset-lite model designed to better service our customers and react to changes in the market or consumer preferences.

Vita Coco is available in over 35 countries, with our primary markets located in North America, the United Kingdom,Kingdom ("U.K."), and Germany. Our primary markets for Private Label are North America and Europe. Our products are distributed primarily through club, food, drug, mass, convenience, e-commerce and food service channels. Our products are also available in a variety of on-premise locations such as corporate offices, fitness clubs, airports, and educational institutions.

We believe that our performance and future success depend on a number of factors that present significant opportunities for us. For changes to such factors from those described in the Form 10-K under the heading “Key Factors Affecting our Performance” please see below and the risks and challenges discussed in "Risk Factors" in Part I,II, Item 1A. “Risk Factors” of this Form 10-Q and ourPart I, Item 1A of the Form 10-K.

•Our global supply chain is subject to risks arising from geopolitical instability, including the ongoing military conflict involving Iran, as well as volatility in interest rates, foreign exchange rates, and our cost of goods including raw materials, factory costs, and transportation costs. The extent and duration of these conditions, and their ultimate impact on our business, results of operations, financial condition, and liquidity, cannot be determined with precision. For a further discussion of the risks and challenges posed by these events, please see "Risk Factors" in Part I,II, Item 1A. “Risk Factors”1A of this Form 10-Q and Part II, Item 1A of our Form 10-K.

•On February 20, 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unlawful. TheFollowing the ruling, U.S. Customs and Border Protection opened("CBP") established a portal on April 20, 2026process for tariffimporters refundto claims.seek Therefunds Companyof haspreviously filedpaid refundtariffs. We submitted claims for eligible tariff payments made in prior periods and, during the three months ended June 30, 2026, received tariff refunds totaling approximately $15.6 millionmillion. The refunds were recognized as a reduction of cost of goods sold and favorably impacted gross profit, operating income, net income, and diluted earnings per share for the three and six months ended June 30, 2026. The refunds represent the recovery of tariffs paid in 2025.prior The timing of any refundsperiods and whetherprovided alla claimsone-time willbenefit beto acceptedour areresults uncertain. Accordingly, no recovery has been recognized induring the accompanying financial statements.quarter. The administration has announced its intent to impose additional tariffs under other statutory authorities. While new tariffs announced to date have not materiallyhad impacteda material adverse impact on us, the scope, duration, scope, and impact of future tariff policies remain uncertain and could materially and adversely affect our business, financial condition, and results of operations.operations, and cash flows. We will continue to monitor the evolving tariff environmentdevelopments and may pursue pricing adjustments,actions, sourcing modifications, and other cost-mitigation measures,measures; buthowever, there can be no assurance that wesuch actions will fully mitigateoffset the impact of future tariff changes or related economic effects.

•Our sales to one of our major customers include branded and Private Label product. As discussed in theour Form 10-K, the Private Label coconut oil business with this customer discontinued in early 2024 and we also experienced an impact in Private Label coconut water sales in 2025 with this customer due to the loss of some regions that we previously serviced for this customer. In early 2026, at the request of this customer, we restarted supply to one of those lost regions. We will continue to service their needsneeds, if we areas asked and as it aligns with our long-term targets. For a further discussion of the risks and challenges posed by these events, please see "Risk Factors" in Part I, Item 1A. “Risk Factors” of the Form 10-K.10-K and Part II, Item 1A of this Form 10-Q.

We are subject to federal and state income taxes in the United StatesU.S. and taxes in foreign jurisdictions in which we operate. We recognize deferred tax assets and liabilities based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates. We regularly assess the need to record a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

•Americas—The Americas segment is comprised of our operations in the Americas region, primarily in the United StatesU.S. and Canada.

•International—The International segment is comprised of our operations primarily in Europe, the Middle East, and the Asia Pacific regions, which includes the Company’sour procurement arm.

•Vita Coco Coconut Water—This product category consists of all branded coconut water product offerings under the Vita Coco labels, where the majority ingredient is coconut water. For these products, control is transferred upon customer receipt, at which point thewe Company recognizesrecognize the transaction price for the product as revenue.

•Private Label —This product category consists of all Private Label product offerings, which includes coconut water and coconut oil. The CompanyWe determined the production and distribution of Private Label products represents a distinct performance obligation. Since there is no alternative use for these products and thewe Company hashave the right to payment for performance completed to date, thewe Company recognizesrecognize the revenue for the production of these Private Label products over time as the productionproducts become available for open purchase orders occurs, which may be prior to any shipment.

•Other—This product category consists of all other products, which includes Vita Coco product extensions beyond coconut water, consisting of coconut milk products, including Vita Coco Treats; and PWR LIFT product offerings; Vita Coco coconut oil sold internationally; and other revenue transactions (e.g., bulk product sales). For these products, control is transferred upon customer receipt, at which point we recognize the transaction price for the product as revenue.

Comparison of the Three and Six Months Ended MarchJune 31,30, 2026 and 2025

The following table summarizes our results of operations for the three and six months ended MarchJune 31,30, 2026 and 2025, respectively:

For the three months ended MarchJune 31,30, 2026, the primary driver of the consolidated net sales increaseincreased of28.1%, 37.3%primarily wasdriven by strong Vita Coco Coconut Water volume growth inacross both the Americas and International segments. Vita Coco Coconut Water net sales increased 41.6%,20.9%, underpinned by a case equivalents ("CE") volume increase of 32.0%15.0% driven by increased demanddemand, particularly within the International segment, and improved net pricing. The growth was partially offset by the slight timing shift of a significant retailer promotionpromotion, towhich occurred primarily in the first quarter inof 2026 andcompared improved net pricing. In 2025, the retailer promotion fell more heavily into the second quarter.quarter of 2025. Private Label net sales increased 28.1%82.8% driven predominantly by growtha inCE thevolume Internationalincrease segment.of 78.1%, while Other category growthnet wassales 5.4%.increased 9.6%.

The following table provides a comparative summary of the percentage change in our volume in CE for the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 2025, by operating segment and product category:

NetFor salesthe three and six months ended June 30, 2026, the increase in theOther Americasnet segment increased $35.6 million, or 31.6%. The increasesales was primarily driven by CE volume growth of 29.4% ofin Vita Coco Coconut Water, with slower growth rates in Private Label and Other.Treats.

Net sales from Other products decreased $0.1during million, or 36.6% forboth the three and six months ended MarchJune 31,30, 2026,2026 compared to the sameprior-year periodperiods, inreflecting thelower priorsales year.volumes across certain non-core product offerings.

For the three months ended MarchJune 31,30, 2026, the increase in consolidated gross profit increased $23.7 million, or 49.3%,was primarily driven by increasedthe recognition of the tariff refunds, higher sales, increasedfavorable pricing, and lower ocean freight rates,and finished goods costs, partially offset by higher finished goods and domestic logistics costscosts. alongFor withthe legacysix months ended June 30, 2026, the increase in gross profit was primarily driven by the recognition of the tariff impacts associated with inventory sold during the period compared to the prior year period. Gross margin was 39.9% compared to 36.7% in the prior year period. The increase resulted fromrefunds, higher pricingsales, favorable pricing, and lower ocean freight rates, slightly offset by the impact of higher-cost inventory flowing through cost of goods sold.costs.

For the three months ended MarchJune 31,30, 2026, the increase in SG&A increased $9.4 million, or 32.8%, compared to the three months ended March 31, 2025.The increase was primarily driven by higher people‑related expenses of $3.6$4.1 million, reflecting increased incentive compensation, headcount growth, and stock‑basedstock-based compensation, as well as a $3.6$2.0 million increase in marketing expense to support sales growth initiatives and expansion into new markets. InFor addition,the six months ended June 30, 2026, the increase in SG&A was primarily driven by higher people-related costs of approximately $7.7 million, a $5.7 million increase in marketing investments and a distributor‑related expensesexpense increasedincrease $2.0 of $2.1 million.

For each of the three months ended MarchJune 31,30, 2026 and 2025, we recorded gains of $2.8 million for2026, the mark-to-market changeschange in fair value onof theour outstanding derivative instruments for forward foreign currency exchange contracts,contracts withwas less favorable than in the largestprior gainyear forperiod, primarily driven by unfavorable movements in the threefair monthsvalues ended March 31, 2026 related to the hedging contracts for theof Brazilian Real.Real and Thai Baht hedge contracts.

Interest IncomeIncome, net

For the three months ended MarchJune 31,30, 2026, interestthe change in other income, net remainedwas consistentimmaterial. comparedFor the six months ended June 30, 2026, the change in other income, net is due to the sale of intellectual property in the prior year period.

For the threesix months ended MarchJune 31,30, 2026 and 2025, our effective tax rate was 18.6%21.5% and 22.5%,20.5%, respectively. The effective tax rate for the current period is lower than the U.S. statutory rate of 21% primarily as a result of discrete items recorded during the period. The effective tax rate for the period ending March 31, 2025 was higher than the U.S. federal statutory rate of 21%21.0%, primarily asdue ato resultthe geographic mix of stateearnings incomeacross taxesjurisdictions forwith thedifferent U.S.tax entity.rates. The changeincrease in the effective tax ratesrate betweencompared to the periodsprior-year isperiod was primarily attributable to thea impactlower ofbenefit from discrete itemstax compareditems, tolargely thedriven priorby yearreduced periodtax andbenefits geographicalassociated mixwith ofstock-based earnings.compensation awards.

(c)The three and six months ended MarchJune 31,30, 2025 other adjustments includeincluded $0.6 million and $1.2 million, respectively, related to a one-time 2023 incentive program thatestablished isin 2023 and measured based on full-year 2025 performance and is structured differently from our other ongoing employee incentive programs,performance, and $0.4 million and $0.7 million, respectively, of non-cashoverlapping rent chargesexpense relatedassociated towith our new New York City officeoffice. thatThe overlapsix-month withperiod ourwas current New York City office rent charges. These amounts werepartially offset by $0.1 million of partial recoveries of prepaid inventory from a supplier (refer to the 2025 Form 10-K for further details) and a gain of $0.2 million gain from a sale of intellectual property.

Since our inception, we have financed our operations primarily through cash generated from our business operations and proceeds on borrowings through our credit facilities and term loans. We had $201.9$278.6 million and $196.9 million of cash and cash equivalents as of MarchJune 31,30, 2026 and December 31, 2025, respectively. From time to time, we may supplement our liquidity needs with incremental borrowing capacity under the Credit Facility.

During the threesix months ended MarchJune 31,30, 2026, cash provided by operating activities increased $25.4$84.5 million compared to the threesix months ended MarchJune 31,30, 2025. The higher cash generationincrease was driven by thea $13.6$41.8 million increaserise in net incomeincome, after adjusting for non-cash itemsitems, and approximatelya $11.8$42.7 million improvement in working capitalcapital, improvement.primarily attributable to the timing of vendor invoices and inventory sales exceeding inventory purchases. Net income benefited from $15.6 million in tariff refunds and $0.6 million of related interest income.

During the threesix months ended MarchJune 31,30, 2026, cash used in investing activities was $0.5$0.6 million compared to $0.6$1.5 million for the threesix months ended MarchJune 31,30, 2025. The decrease of cash used for investing activities was primarily due to the absence of leasehold improvements related spend on our new offices during the threesix months ended MarchJune 31,30, 2025 partly offset by higher expenditures on new software implementations during the current quarter.2025.

During the threesix months ended MarchJune 31,30, 2026 compared to the threesix months ended MarchJune 31,30, 2025, net cash used by financing activities increased by $8.8$4.8 million, primarily driven by higher volume and price of share repurchases in the threesix months ended MarchJune 31,30, 2026 compared to the prior year period, partially offset by increased proceeds from the exercise of stock options. See Note 10, Stockholders' Equity, in our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, for further discussion on share repurchases.

In May 2020, the Companywe entered into the Credit Facility, which currently provides for committed borrowings of $60 million. On February 14, 2025, the Credit Facility was amended, extending the maturity five years to February 13, 2030.

Starting in December 2022, borrowings on the Credit Facility bear interest at rates based on either: 1) a fluctuating rate per annum determined to be the sum of Daily Simple SOFR plus the Spread; or 2) a fixed rate per annum determined to be the sum of the Term SOFR plus the Spread. The Spread ranges from 1.00% to 1.75%, which is based on the Company’sour leverage ratio (as defined in the credit agreement) for the immediately preceding fiscal quarter as defined in the credit agreement. In addition, through February 13, 2025, thewe Company waswere subject to an unused commitment fee ranging from 0.10% and 0.20% on the unused amount of the line of credit, with the rate based on the Company’sour leverage ratio (as defined in the credit agreement). Starting February 14, 2025, the unused commitment fees ranged from 0.13% and 0.23% on the unused amount of the line of credit, with the rate being based on the Company’sour leverage ratio (as defined in the credit agreement).

There were no drawn amounts on the Credit Facility as of MarchJune 31,30, 2026 and December 31, 2025, respectively. As of MarchJune 31,30, 2026, we were compliant with all financial covenants.

Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Significant Judgments and Estimates” in the Form 10-K and the notes to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. During the threesix months ended MarchJune 31,30, 2026, there were no material changes to our critical accounting policies from those discussed in the Form 10-K.