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

Regulatory authorities also have authority with respect to the Company’s ability to recover its electricity and natural gas supply costs, as incurred by Unitil Energy, Fitchburg, Unitil Power, Northern Utilities, Bangor and NorthernMaine Utilities.Natural. If the Company is unable to recover a significant amount of these costs, or if the Company’s recovery of these costs is significantly delayed, the Company’s financial condition, results of operations, or cash flows could be adversely affected.

The terms of the Company’s and its subsidiaries’ indebtedness impose various restrictions on the Company’s business operations, including the ability of the Company and its subsidiaries to incur additional indebtedness. These restrictions could adversely affect the Company’s financial condition, results of operations, and cash flows. The Company’s existing credit facility also provides for restrictions on, among other things, the Company’s and its subsidiaries’ ability to permit liens or incur indebtedness, and restrictions on the Company’s ability to merge or consolidate with another entity or change its line of business, and includes a financial covenant that the Company’s Funded Debt to Capitalization (as each term is defined in the Credit Facility) cannot exceed 65%, tested on a quarterly basis. See sections titled Liquidity, Commitments and Capital Requirements in Part II, Item 7 (Management’s Discussion and Analysis of Financial Condition and Results of Operations) and Note 4 (Debt and Financing Arrangements) to the accompanying Consolidated Financial Statements for a more detailed discussion of these restrictions.

As part of the Company’s business strategy, the Company has made and may make acquisitions to add complementary companies, assets, services or products, and from time to time may enter into other strategic transactions such as investments and joint ventures. For example, on July 8, 2024, the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) amongcompleted the Company, PHC Utilities, Inc., an Ohio corporation (the “Seller”), and Hearthstone Utilities, Inc., d/b/a Hope Companies, Inc., an Ohio corporation, pursuant to which the Company agreed to acquire all the issued and outstanding shares of capital stockacquisitions of Bangor Natural Gas Company, a Maine corporation, from the Seller, for $70.9 million in cash, subject to adjustment as set forth in the Purchase Agreement (the transaction, the “Bangor Transaction”). The acquisition closedCompany on January 31, 2025 and Maine Natural Gas Corporation on October 31, 2025.

In the future, the Company may not be able to find suitable acquisition candidates, and may not be able to complete acquisitions or other strategic transactions on favorable terms, or at all. In some cases, the costs of such acquisitions or other strategic transactions may be substantial, and there is no assurance that the Company will realize expected synergies and potential monetization opportunities for the Company’s acquisitions, or a favorable return on investment for strategic investments.

The Company purchases natural gas from U.S. domestic and Canadian supply sources largely under contracts of one year or less. On occasion, the Company purchases natural gas from producers and marketers on the spot market. The U.S. presidential administration has proposed the implementationimplemented of a number of tariffs, including tariffs on energy imports from Canada, which could significantly increase the cost of natural gas in the U.S., potentially decreasing customer demand for natural gas. The Company may also need to obtain natural gas from other sources, when possible. Any of these factors may adversely affect the Company’s financial condition or results of operations.

Unitil’s principal business is the local distribution of electricity and natural gas to approximately 198,500215,100 customers throughout its service territory in the states of New Hampshire, Massachusetts and Maine. Unitil is the parent company of threefive wholly-owned distribution utilities:

Fitchburg, which provides both electric and natural gas service in the greater Fitchburg area of north central Massachusetts; and iii) Northern Utilities, which provides natural gas service in southeastern New Hampshire and portions of southern and central Maine, including the city of Portland and the Lewiston-Auburn area.

Unitil Energy, FitchburgFitchburg, Northern Utilities, Bangor and NorthernMaine UtilitiesNatural are collectively referred to as the “distribution utilities.” Together, the distribution utilities serve approximately 109,400110,100 electric customers and 89,100105,000 natural gas customers in their service territories. The distribution utilities are local “wires and pipes” operating companies.

Unitil had an investment in Net Utility Plant of $1,539.6$1.8 millionbillion at December 31, 2024.2025. Unitil’s total revenue was $494.8$536.0 million in 2024,2025, which includes revenue to recover the approved cost of purchased electricity and natural gas in rates on a fully reconciling basis. As a result of this reconciling rate structure, the Company’s earnings are not affected by changes in the cost of purchased electricity and natural gas. Earnings from Unitil’s utility operations are derived from the return on investment in the threefive distribution utilities and Granite State.

The Company’s other subsidiaries include Unitil Service, which provides, at cost, a variety of administrative and professional services to Unitil’s affiliated companies, Unitil Resources, the Company’s non-regulated subsidiary, which currently does not have any activity, and Unitil Realty, which owns and manages the Company’s corporate office in Hampton, New Hampshire and also owns land for future use in Kingston, New Hampshire.Hampshire on which Unitil Energy’s solar facility is located, which became operational in May 2025, and Unitil Water which currently does not have any activity. Unitil’s consolidated net income includes the earnings of the holding company and these subsidiaries.

Unitil is subject to comprehensive regulation by federal and state regulatory authorities. Unitil and its subsidiaries are subject to regulation as a holding company system by the FERC under the Energy Policy Act of 2005 with regard to certain bookkeeping, accounting and reporting requirements. Unitil’s utility operations related to wholesale and interstate energy business activities are also regulated by the FERC. Unitil’s distribution utilities are subject to regulation by the applicable state public utility commissions, with regard to their rates, issuance of securities and other accounting and operational matters: Unitil Energy is subject to regulation by the NHPUC; Fitchburg is subject to regulation by the MDPU; and Northern Utilities is regulated by the NHPUC and MPUC; and Bangor and Maine Natural are regulated by the MPUC. Granite State, Unitil’s interstate natural gas transmission pipeline, is subject to regulation by the FERC with regard to its rates and operations. Because Unitil’s primary operations are subject to rate regulation, the regulatory treatment of various matters could significantly affect the Company’s operations, financial position, and cash flows.

Unitil’sUnitil distributionEnergy, utilitiesFitchburg, Northern Utilities and Maine Natural’s non-Augusta service area deliver electricity and/or natural gas to all customers in their service territories, at rates established under traditional cost of service regulation. Under this regulatory structure, Unitil’s distribution utilities are provided the opportunity to recover the cost of providing distribution service to their customers based on a historical or forward test year, and earn a return on their capital investment in utility assets. In addition, the Company’s distribution utilities and its natural gas transmission pipeline company also may recover certain base rate costs, including capital project spending and enhanced reliability and vegetation management programs, through annual step adjustments and cost tracker rate mechanisms. Bangor and Maine Natural’s Augusta Service Area deliver natural gas customers at rates established under alternative rate plans, which provide multi-year rate changes designed to approximate market-based rates.

The Company’s electric and gas sales in Massachusetts and New Hampshire are decoupled. Revenue decoupling is the term given to the elimination of the dependency of a utility’s distribution revenue on the volume of electricity or gas sales. The difference between distribution revenue amounts billed to customers and the targeted revenue decoupling amounts is recognized as an increase or a decrease in Accrued Revenue, which forms the basis for resetting rates for future cash recoveries from, or credits to, customers. These revenue decoupling targets may be adjusted as a result of rate cases and other authorized adjustments that the Company files with the MDPU and NHPUC. Fitchburg has been subject to revenue decoupling since 2011. Unitil Energy has been subject to revenue decoupling since June 1, 2022. As a result of Unitil Energy now being subject to revenue decoupling, as of June 1, 2022, revenue decoupling now applies to substantially all of Unitil’s total annual electric sales volumes. Substantially all of Northern Utilities’ gas sales volumes in New Hampshire have been subject to decoupling since August 1, 2022. The Company's electric and gas sales in New Hampshire and Massachusetts are now largely decoupled. Northern Utilities’ gas sales volumes in Maine are not subject to decoupling.

The Company's earnings discussion includes Adjusted Net Income, a non-GAAP financial measure referencing the Company’s 20242025 GAAP Net Income adjusted for certain transaction costs related to the Company's acquisitionacquisitions of Bangor Natural Gas Company (Bangortransaction closed on January 31, 2025), whichMaine itNatural disclosedGas previouslyCorporation in(transaction 2024.closed on October 31, 2025), Aquarion Water Company of Massachusetts, Inc., Aquarion Water Company of New Hampshire, Inc., and Abenaki Water Co., Inc. (the Aquarion Companies) (pending certain regulatory approvals and satisfaction of closing conditions). The Company's management believes that the transaction costs related to the acquisitionacquisitions of Bangor, Maine Natural and the Aquarion Companies, which are included in Operation and Maintenance expense on the Consolidated Statements of Earnings, are not indicative of the Company's ongoing costs and not directly related to the ongoing operations of the business and therefore are not an indicator of baseline operating performance.

ElectricGas GAAP Gross Margin was $78.1$142.3 million in 2023,2025, an increase of $4.7$22.2 million compared to 2022.2024. The increase was driven primarily by higher rates and customer growth of $5.3$32.2 million, partially offset by higher depreciation and amortization expenseof $10.0 million. The increases attributable to Bangor and Maine Natural for gas operating revenue, cost of $0.6gas million.sales and depreciation and amortization for 2025 were $36.2 million, $19.6 million and $3.3 million, respectively.

Gas Adjusted Gross Margin (a non-GAAP financial measure) was $166.9$199.1 million in 2024,2025, an increase of $12.4$32.2 million compared to 2023.2024. The increase was driven primarily by higher rates, and customer growth. Gas Adjusted Gross Margin included $16.6 million related to Bangor and Maine Natural in 2025.

Operation and Maintenance (O&M) expenses increased $2.0$14.9 million in 20242025 compared to 2023,2024, reflecting higher labor costs of $2.5 million, partially offset by lower utility operating costs of $0.5$6.1 million, higher labor and other costs of $5.5 million and higher acquisition costs of $3.3 million. O&M expenses included $4.2 million of utility operating costs for Bangor and Maine Natural in 2025.

Depreciation and Amortization expense increased $8.7$12.6 million in 20242025 compared to 2023,2024, reflecting higher depreciation rates from recent base rate cases, additional depreciation associated with higher levels of utility plant in service and higher amortization of rate case and other deferred costs. Depreciation and Amortization expense included $3.3 million related to Bangor and Maine Natural in 2025.

Taxes Other Than Income Taxes increased $1.4 million in 20242025 compared to 2023,2024, reflecting higher local property taxes on higher utility plant in service associated with the Company’s completed acquisitions of Bangor and higherMaine payroll taxes.Natural.

Interest Expense, Net increased $0.6$7.4 million in 20242025 compared to 20232024 primarily reflecting higher interest on higher levels of long-termdebt debtfrom the acquisitions of Bangor and higherMaine interestNatural onand short-term borrowings, partially offset by higherlower interest income on regulatory assets and other.allowance for funds used during construction.

Other Expense (Income), Net increaseddecreased $0.2$1.2 million in 20242025 compared to 2023,2024, reflecting higherlower retirement benefit costs.

20232024 Compared to 20222023—The Company’s GAAP Net Income was $45.2$47.1 million, or $2.82$2.93 in Earnings Per Share (EPS),EPS, for the year ended December 31, 2023,2024, an increase of $3.8$1.9 million in Net Income, or $0.23$0.11 in EPS, compared to 2022.2023. The Company’s earnings in 2023 reflect higher Electric and Gas Adjusted GrossNet MarginsIncome (a non-GAAP financial measure), partiallywas offset$47.8 bymillion, or $2.97 in EPS, for the year ended December 31, 2024, an increase of $2.6 million, or $0.15 in EPS, compared to 2023. The Company’s earnings in 2024 reflect higher operatingrates expenses.and customer growth.

The decrease in Total Electric Operating Revenue of $58.2$11.9 million, or 19.0%,4.8%, in 20242025 compared to 20232024 reflects lower costs of electric sales,sales due to the increase in the amount of electricity purchased by customers directly from third-party suppliers, which are tracked and reconciled costs as a pass-through to customers, partially offset by higher electric distribution rates and higher sales of electricity.rates.

Kilowatt-hour Sales—Unitil’s total electric kilowatt-hour (kWh) sales increaseddecreased 1.3%0.6% in 20242025 compared to 2023.2024. Sales to Residential customers increased 1.6%4.1% reflecting colder weather for heating purposes in the first and salesfourth quarter of 2025 compared to C&Ithe customerssame increased 1.1%periods in 2024 comparedand tocustomer 2023,growth, reflectingpartially warmeroffset by cooler weather for cooling purposes in the secondthird quarter of 20242025 compared to the same period in 2023,2024. andSales to C&I customers decreased 4.0% in 2025 compared to 2024, reflecting the loss of a large industrial customer in the Fitchburg area in 2025, partially offset by customer growth. Based on weather data collected in the Company’s electric service areas, on average there were 12.2%13.7% more Heating Degree days and 6.6% less Cooling Degree Days in 20242025 compared to 2023.2024. As of December 31, 2024,2025, the number of electric customers served increased by approximately 990610 over the previous year. Sales margins derived from decoupled unit sales are not sensitive to changes in electric kWh sales, although those sales margins are sensitive to changes in the number of customers served. Substantially all of the Company's electric kWh sales volumes are decoupled.

Unitil’s total electric kWh sales decreasedincreased 3.2%1.3% in 20232024 compared to 2022.2023. Sales to Residential customers decreasedincreased 4.6%1.6% and sales to C&I customers decreasedincreased 2.1%1.1% in 20232024 compared to 2022.2023, Thereflecting decreaseswarmer weather for cooling purposes in electricthe kWhsecond salesquarter reflectof lower2024 averagecompared usage,to partiallythe offsetsame byperiod in 2023, and customer growth. Based on weather data collected in the Company’s electric service areas, on average there were 12.2% more Cooling Degree Days in 2024 compared to 2023. As of December 31, 2023,2024, the number of electric customers served increased by approximately 350990 over the previous year.

Therm Sales—Unitil’s total gas therm sales decreasedincreased 1.5%26.6% in 20232025 compared to 2022.2024. Sales to Residential customers decreasedincreased 3.8%34.0% and sales to C&I customers decreasedincreased 0.9%24.8% in 20232025 compared to 2022.2024, Thereflecting decreasescolder inwinter weather and customer growth. Total gas therm sales reflectincluded warmer40.0 wintermillion weathertherms related to Bangor and Maine Natural in 2023 compared to 2022, partially offset by customer growth.2025. Based on weather data collected in the Company’s gas service areas, on average there were 6.5%12.2% fewerhigher Effective Degree Days (EDD) in 20232025 compared to 2022.2024. The Company estimates that weather-normalized gas therm sales for Northern Utilities’Utilities' Maine division, the Company’sCompany's onlylargest non-decoupled gas service area, increased 3.0%3.5% in 20232025 compared to 2022.2024. As of December 31, 2023,2025, the number of gas customers served increased by approximately 95015,930 over the previous year.year, with 15,360 customers at Bangor and Maine Natural. Sales margins derived from decoupled unit sales (currently representing approximately 43%38% of total annual therm sales volume) are not sensitive to changes in gas therm sales, although those sales margins are sensitive to changes in the number of customers served. In 2025, there were 2.7% more EDD than normal. In 2024, there were 9.5% fewer EDD than normal.

Cost of Electric Sales—Cost of Electric Sales includes the cost of electric supply as well as other energy supply related restructuring costs, including power supply buyout costs,costs and spending on energy efficiency programs. Cost of Electric Sales decreased $61.4$19.2 million, or 30.3%,13.6%, in 20242025 compared to 2023.2024. This decrease reflects lower wholesale electricity prices and an increase in the amount of electricity purchased by customers directly from third-party suppliers, partially offset by higher electricwholesale sales.electricity prices. The Company reconciles and recovers the approved Cost of Electric Sales in its rates at cost on a pass through basis and therefore changes in approved expenses do not affect earnings.

In 2023,2024, Cost of Electric Sales increaseddecreased $3.3$61.4 million, or 1.7%,30.3%, compared to 2022.2023. This increasedecrease reflects higherlower wholesale electricity prices, partially offset by lower electric salesprices and an increase in the amount of electricity purchased by customers directly from third-party suppliers.suppliers, partially offset by higher electric sales.

Cost of Gas Sales—Cost of Gas Sales includes the cost of natural gas purchased to supply the Company’s total gas supply requirements as well as other energy supply related costs and spending on energy efficiency programs. Cost of Gas Sales decreasedincreased $16.5$20.9 million, or 17.2%,26.3%, in 20242025 compared to 2023.2024. This decreaseincrease reflects lowerhigher gas sales,sales lowerprimarily wholesalefrom gasthe commodity pricesBangor and anMaine increaseNatural in the amount of gas purchased by customers directly from third-party suppliers.acquisitions. The Company reconciles and recovers the approved Cost of Gas Sales in its rates at cost on a pass through basis and therefore changes in approved expenses do not affect earnings.

In 2023,2024, Cost of Gas Sales decreased $25.3$16.5 million, or 20.8%,17.2%, compared to 2022.2023. This decrease reflects lower gas sales, lower wholesale gas commodity prices,prices partiallyand offsetan by a decreaseincrease in the amount of gas purchased by customers directly from third-party suppliers.

Operation and Maintenance—O&M expense includes electric and gas utility operating costs, and the operating costs of the Company’s other subsidiaries. Total O&M expenses increased $2.0$14.9 million, or 2.6%,19.2%, in 20242025 compared to 2023,2024, reflecting higher labor costs of $2.5 million, partially offset by lower utility operating costs of $0.5$6.1 million, higher labor and other costs of $5.5 million and higher acquisition costs of $3.3 million. O&M expenses included $4.2 million of utility operating costs for Bangor and Maine Natural in 2025.

In 2023,2024, total O&M expenses increased $1.9$2.0 million, or 2.6%, compared to 2022,2023, reflecting higher labor costs of $2.5 million, partially offset by lower utility operating costs of $1.2 million, higher professional fees of $0.4 million and higher labor costs of $0.3$0.5 million.

Depreciation and Amortization—Depreciation and Amortization expense increased $8.7$12.6 million, or 12.9%,16.6%, in 20242025 compared to 2023,2024, reflecting higher depreciation rates from recent base rate cases, additional depreciation associated with higher levels of utility plant in service and higher amortization of rate case and other deferred costs. Depreciation and Amortization expense included $3.3 million related to Bangor and Maine Natural in 2025.

In 2023,2024, Depreciation and Amortization expense increased $4.8$8.7 million, or 7.7%,12.9%, compared to 2022,2023, reflecting higher depreciation rates from recent base rate cases, additional depreciation associated with higher levels of utility plant in service and higher amortization of rate case and other deferred costs.

Taxes Other Than Income Taxes—Taxes Other Than Income Taxes increased $1.4 million, or 4.9%,4.7%, in 20242025 compared to 2023,2024, reflecting higher local property taxes on higher utility plant in service associated with the Company’s completed acquisitions of Bangor and higherMaine payroll taxes.Natural.

In 2023,2024, Taxes Other Than Income Taxes increased $2.6$1.4 million, or 10.0%,4.9%, compared to 2022,2023, reflecting higher local property taxes on higher utility plant in service and higher payroll, excise and otherpayroll taxes.

Interest Expense, Net—Interest expense is presented in the Consolidated Financial Statements net of interest income. Interest expense is mainly comprised of interest on long-term debt and short-term borrowings (See Note 4 (Debt and Financing Arrangements) to the accompanying Consolidated Financial Statements). Certain reconciling rate mechanisms used by the Company’s distribution utilities give rise to regulatory assets and regulatory liabilities on which interest is calculated.

Other (Income) Expense, Net—Other Expense (Income), Net decreased $2.4$1.2 million in 20232025 compared to 2022,2024, reflecting lower retirement benefit costs.

There have been no material changes to the risk factors disclosed in the Company’s Form 10-K for the year-ended December 31, 2025 as filed with the SEC on February 9, 2026.2026, except as set forth below.

Unitil’s principal business is the local distribution of electricityelectricity, natural gas and gaswater throughout its service territory in the states of New Hampshire, Massachusetts and Maine. Unitil is the parent company of five wholly owned energy distribution utilities and two wholly owned water distribution utilities:

Bangor Natural Gas Company (Bangor), which provides gas service in the Bangor area of central Maine; and v) Maine Natural Gas Corporation (Maine Natural), which provides gas service in southern and central Maine, including the greater Portland region, as well as the capital city of Augusta.

Unitil Energy, Fitchburg, Northern Utilities, Bangor and Maine Natural are collectively referred to as the “energy distribution utilities.” Together, the energy distribution utilities serve approximately 110,100 electric customers and 105,000 gas customers.

At MarchJune 31,30, 2026, Unitil had an investment in Net Utility Plant of $1.8$1.9 billion. Earnings from Unitil’s utility operations are derived primarily from the return on investment in the utility assets of the five energy distribution utilities, the two water distribution utilities and Granite State. Unitil’s total operating revenue includes revenue to recover the approved cost of purchased electricity and gas in rates on a fully reconciling basis. As a result of this reconciling rate structure, the Company’s earnings are not directly affected by changes in the cost of purchased electricity and gas.

Unitil is subject to comprehensive regulation by federal and state regulatory authorities. Unitil and its energy distribution subsidiaries are subject to regulation as a holding company system by the FERC under the Energy Policy Act of 2005 regarding certain bookkeeping, accounting and reporting requirements. Unitil’s utility operations related to wholesale and interstate energy business activities also are regulated by the FERC. Unitil’s energy distribution utilities are subject to regulation by the applicable state public utility commissions with regard to their rates, issuance of securities and other accounting and operational matters: Unitil Energy is subject to regulation by the New Hampshire Public Utilities Commission (NHPUC); Fitchburg is subject to regulation by the Massachusetts Department of Public Utilities (MDPU); Northern Utilities is regulated by the NHPUC and the Maine Public Utilities Commission (MPUC); Bangor is subject to regulation by the MPUC; and Maine Natural is subject to regulation by the MPUC. Unitil's water distribution utilities are subject to regulation by the NHPUC with regard to their rates, issuance of securities and other accounting and operational matters. Granite State, Unitil’s interstate gas transmission pipeline, is subject to regulation by FERC regarding its rates and operations. Because Unitil’s primary operations are subject to rate regulation, the regulatory treatment of various matters could significantly affect the Company’s operations and financial position.

UnitilPrimarily Energy,all Fitchburg,of NorthernUnitil's Utilitiesdistribution and Maine Natural's non-Augusta service areasubsidiaries deliver electricityelectricity, natural gas and/or natural gaswater to all customers in their service territory, at rates established under cost of service regulation. Under this regulatory structure, Unitil’s distribution utilities are provided the opportunity to recover the cost of providing distribution service to their customers based on a test year, and to earn a reasonable return on their capital investment in utility assets. In addition, the Company’s distribution utilities and its natural gas transmission pipeline company may recover certain base rate costs, including capital project spending and enhanced reliability and vegetation management programs, through annual step adjustments and cost tracking rate mechanisms. Bangor and Maine Natural’s Augusta Service Area deliver natural gas to their customers at rates established under alternative rate plans, which provide multi-year rate changes designed to approximate market-based rates.

The following section of MD&A compares the results of operations for each of the two fiscal periods ended MarchJune 31,30, 2026 and MarchJune 31,30, 2025 and should be read in conjunction with the accompanying unaudited Consolidated Financial Statements and the accompanying Notes to unaudited Consolidated Financial Statements included in Part I, Item 1 of this report, which are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).

The Company's earnings discussion includes Adjusted Net Income, a non-GAAP financial measure referencing the Company’s 2026 and 2025 GAAP Net Income adjusted for certain transaction costs related to the Company's acquisitions of Bangor Natural Gas Company (purchase completed as of January 31, 2025), Maine Natural Gas Corporation (Maine Natural) (purchase completed as of October 31, 2025), Aquarion Water Company of Massachusetts, Inc., Aquarion Water Company of New Hampshire, Inc., and Abenaki Water Co., Inc. (the Aquarion Companies) (seepurchase Notecompleted 7as -of RegulatoryJune Matters30, to the accompanying Consolidated Financial Statements2026). The Company's management believes that the transaction costs related to the acquisitions of Bangor, Maine Natural and the Aquarion Companies, which are included in Operation and Maintenance expense on the Consolidated Statements of Earnings, are not indicative of the Company's ongoing costs and not directly related to the ongoing operations of the business and therefore are not an indicator of baseline operating performance.

Electric GAAP Gross Margin was $21.3$23.0 million in the three months ended MarchJune 31,30, 2026, an increase of $1.7$5.0 million compared to the same period in 2025. Electric GAAP Gross Margin was $44.3 million in the six months ended June 30, 2026, an increase of $6.7 million compared to the same period in 2025. The three-month period increase was driven by higher rates and customer growth of $2.8$5.8 million, partially offset by higher depreciation and amortization expense of $0.4$0.8 million. The six-month period increase was driven by higher rates of $8.6 million, partially offset by higher depreciation and amortization expense of $1.2 million and a one-time reduction of FERC transmission revenue of $0.7 million (see Note 7 Regulatory Matters: FERC Transmission Formula Rate Proceedings).

Gas GAAP Gross Margin was $67.1$25.0 million in the three months ended MarchJune 31,30, 2026, an increase of $10.0$1.8 million compared to the same period in 2025. Gas GAAP Gross Margin was $92.1 million in the six months ended June 30, 2026, an increase of $11.8 million compared to the same period in 2025. The increase in the three-month period was driven by higher rates and customer growth of $10.3$3.4 million, partially offset by higher depreciation and amortization of $1.6 million. The increase in the six-month period was driven by higher rates and customer growth of $13.2 million, the favorable effects of colder winter weather in 2026 of $0.9$1.4 million, partially offset by higher depreciation and amortization of $1.2$2.8 million. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the three months ended MarchJune 31,30, 2026 was $18.3$4.2 million, $12.3$1.5 million and $0.7$0.8 million, respectively, related to Maine Natural. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the six months ended June 30, 2026 was $22.5 million, $13.8 million and $1.5 million, respectively, related to Maine Natural.

The Company’s Net Income was $33.2$4.7 million, or $1.85$0.26 in Earnings Per Share (EPS) for the firstsecond quarter of 2026, an increase of $5.7$0.7 million in Net Income, or $0.16$0.01 in EPS, compared to the firstsecond quarter of 2025. The Company's Adjusted Net Income (a non-GAAP financial measure), which excluded transaction-related costs in connection with the acquisitions of Bangor, Maine Natural Gas and the Aquarion Companies, was $33.8$5.2 million, or $1.88$0.29 in EPS for the firstsecond quarter of 2026,2026. anAdjusted increaseNet ofIncome $5.4increased million,$0.5 ormillion $0.14and was unchanged in EPS,EPS when compared to the firstsecond quarter of 2025.

Electric Adjusted Gross Margin (a non-GAAP financial measure) was $29.6$31.6 million and $61.2 million in the firstthree quarterand six months ended June 30, 2026, respectively, increases of 2026, an increase of $2.1$5.8 million and $7.9 million, respectively, compared to the same periodperiods in 2025. The increase in the three-month period reflects higher rates and customer growth of $5.8 million. The increase in the six-month period reflects higher rates of $2.8$8.6 millionmillion, partially offset by a one-time reduction of FERC transmission revenue of $0.7 million (see Note 7 Regulatory Matters: FERC Transmission Formula Rate Proceedings).

Gas Adjusted Gross Margin (a non-GAAP financial measure) was $82.1$40.6 million and $122.7 million in the firstthree quarterand six months ended June 30, 2026, respectively, increases of 2026, an increase of $11.2$3.4 million and $14.6 million, respectively, compared to the same periodperiods in 2025,2025. The increase in the three-month period reflects higher rates and customer growth of $3.4 million. The increase in the six-month period was driven by higher rates and customer growth of $10.3$13.2 million and the favorable effects of colder winter weather in 2026 of $0.9$1.4 million. Included in the Gas Adjusted Gross Margin for the three and six months ended MarchJune 31,30, 2026 was $6.0$2.7 million and $8.7 million, respectively, related to Maine Natural.

Operation and Maintenance (O&M) expenses increased $0.8$2.5 million and $3.3 million in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025. The increase in the three-month period reflects higher utility operating costs of $1.1$1.6 million, and higher labor and other costs of $1.4 million, partially offset by lower acquisition costs of $0.3$0.5 million. The increase in the six-month period reflects higher utility operating costs of $2.6 million, and higher labor and other costs of $1.5 million, partially offset by lower acquisition costs of $0.8 million. Included in O&M expenseexpenses for the three and six months ended MarchJune 31,30, 2026 waswere $1.3$1.4 million and $2.7 million, respectively, related to Maine Natural. Excluding O&M expenses for Maine Natural and transaction costs, O&M expenses for legacy operations would have decreasedincreased by $0.2$1.6 million and $1.4 million for the three and six months ended MarchJune 31,30, 2026.2026, respectively.

Depreciation and Amortization expense increased $1.6$2.4 million and $4.0 million in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025. The increase in the three-month period reflects higher levels of utility plant in service, and higher amortization of recoverable storm costs and other deferred costs. The increase in the six-month period reflects higher levels of utility plant in service and higher amortization of recoverable storm costs, partially offset by lower amortization of other deferred costs. Included in Depreciation and Amortization for the three and six months ended MarchJune 31,30, 2026 was $0.7$0.8 million and $1.5 million, respectively, related to Maine Natural.

Taxes Other Than Income Taxes increased $1.2$2.2 million and $3.4 million in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025. TheThese increaseincreases reflectsreflect higher local property taxes on higher utility plant in service and higher payroll taxes. Included in Taxes Other Than Income Taxes for the three and six months ended MarchJune 31,30, 2026 waswere $0.4 million and $0.8 million, respectively, related to Maine Natural.

Interest Expense, Net increased $1.7$1.1 million and $2.8 million in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025, primarily reflecting higher levels of short-term borrowings and long-term debt, partially offset by lower interest expense on regulatory liabilities.

Other Expense (Income), Net decreased $0.1 million and $0.2 million in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025, primarily from lower retirement benefit costs.

Provision for Income Taxes increased $2.4$0.4 million and $2.8 million in the three and six months ended MarchJune 31,30, 2026, respectively, compared with the same periodperiods in 2025, reflecting higher pre-tax earnings in 2026.

At its January 2026, April 2026 and AprilJuly 2026 meetings, the Unitil Corporation Board of Directors declared quarterly dividends on the Company’s common stock of $0.475 per share. These quarterly dividends result in a current effective annualized dividend rate of $1.90 per share, representing an unbroken record of quarterly dividend payments since trading began in Unitil’s common stock.

Electric Operating Revenues and Electric Adjusted Gross Margin (a non-GAAP financial measure) - The following table details Total Electric Operating Revenues and Electric Adjusted Gross Margin for the three and six months ended MarchJune 31,30, 2026 and 2025:

Total Electric Operating Revenue increased $5.3$10.7 million, or 8.8%21.0%, and $16.0 million, or 14.4%, in the three and six months ended MarchJune 31,30, 20262026, respectively, compared to the same periodperiods in 2025,2025. reflectingThe increase in the three-month period reflects higher electric distribution rates and higher costs of electric sales, which are tracked and reconciled to costs that are passed through directly to customers. The increase in the six-month period reflects higher electric distribution rates, and higher costs of electric sales due to the decrease in the amount of electricity purchased by customers directly from third-party suppliers,sales, which are tracked and reconciled to costs that are passed through directly to customers, partially offset by a one-time reduction of FERC transmission revenue.

Electric Adjusted Gross Margin (a non-GAAP financial measure) was $29.6$31.6 million and $61.2 million for the three and six months ended MarchJune 31,30, 2026, anrespectively, increaseincreases of $2.1$5.8 million and $7.9 million, respectively, compared withto the same periodperiods in 2025. The increase in the three-month period reflects higher rates and customer growth of $5.8 million. The increase in the six-month period reflects higher rates of $2.8$8.6 millionmillion, partially offset by a one-time reduction of FERC transmission revenue of $0.7 million (see Note 7 Regulatory Matters: FERC Transmission Formula Rate Proceedings).

Kilowatt-hour Sales - Unitil’s total electric kWh sales increased 0.3% and decreased 1.6% in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Sales to Residential customers increased 3.1% in the three months ended MarchJune 31,30, 2026, compared to the same period in 2025.2025, reflecting customer growth. Sales to Commercial and Industrial (C&I) customers decreased 1.5% in the three months ended June 30, 2026, compared to the same period in 2025, reflecting the loss of a large industrial customer in the Fitchburg service area in 2025, partially offset by customer growth. Sales to Residential customers increased 2.1%2.5% in the threesix months ended MarchJune 31,30, 2026, compared to the same period in 2025, reflecting colder winter weather for heating purposes in 20262026, and customer growth. Sales to Commercial and Industrial (C&I) customers decreased 7.6%4.8% in the threesix months ended MarchJune 31,30, 2026, compared to the same period in 2025, reflecting the loss of a large industrial customer in the Fitchburg service area in 2025, partially offset by customer growth. As of MarchJune 31,30, 2026, the number of electric customers increased by approximately 550510 over the previous year. Sales margins derived from decoupled unit sales are not sensitive to changes in electric kWh sales. Substantially all of the Company’s electric kWh sales volumes are decoupled.

The following table details total kWh sales for the three and six months ended MarchJune 31,30, 2026 and 2025 by major customer class:

Gas Operating Revenues and Adjusted Gross Margin (a non-GAAP financial measure) - The following table details Total Gas Operating Revenues and Gas Adjusted Gross Margin for the three and six months ended MarchJune 31,30, 2026 and 2025:

Total Gas Operating Revenue increased $40.8$3.7 million, or 36.9%,7.2%, and increased $44.5 million, or 27.4%, in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025. The increase in the three-month period includes $18.3$4.2 million of gas operating revenue for Maine Natural, higher rates and customer growth, partially offset by lower costs of gas sales for legacy gas operations, which are tracked and reconciled costs that are passed through directly to customers. The increase in the six-month period includes $22.5 million of gas operating revenue for Maine Natural, higher rates and customer growth, the favorable impact of colder winter weather in 2026 and higher costs of gas sales, which are tracked and reconciled costs that are passed through directly to customers.

Therm Sales - Unitil’s total gas therm sales increased 13.4%8.8% and 12.0% in the three-monththree periodand six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025. In the firstsecond quarter of 2026, sales to Residential and C&I customers increased 14.8%9.6% and 13.0%,8.7%, respectively, compared to the same period in 2025, reflecting customer growth and colder spring weather in 2026. In the first six months of 2026, sales to Residential and C&I customers increased 13.4% and 11.6%, respectively, compared to the same period in 2025, reflecting colder winter weather in 2026 and customer growth. Included in the total gas therm sales increases were 10.64.2 million therms and 14.8 million therms for the three and six months ended MarchJune 31,30, 2026, respectively, related to Maine Natural. Based on weather data collected in the Company’s gas service areas, on average there were 1.9%2.3% higher effective degree days in the first quartersix months of 2026 compared to the same period in 2025. As of MarchJune 31,30, 2026, the number of gas customers increased by approximately 7,1406,600 over the previous year. Included in this increase was 6,400 customers related to Maine Natural. Sales margins derived from decoupled unit sales (currently representing approximately 38% of total annual therm sales volume) are not sensitive to changes in gas therm sales, although those sales margins are sensitive to changes in the number of customers served.

The following table details total therm sales for the three and six months ended MarchJune 31,30, 2026 and 2025 by major customer class:

The Company transported 62.95.7 million therms and 68.6 million therms in the firstthree threeand six months ofended 2026June 30, 2026, respectively, to two electric generation facilities in Maine. As these facilities were charged fixed fees and utilized third-party energy suppliers for natural gas, the therms were not included in the above table.

Cost of Electric Sales - Cost of Electric Sales includes the cost of electric supply and spending on energy efficiency programs. Cost of Electric Sales increased $3.2$4.9 million, or 9.8%,19.4%, and $8.1 million, or 14.0%, in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025. ThisThe increase in the three-month period reflects ahigher decreasewholesale electricity prices. The increase in the six-month period reflects higher wholesale electricity prices and energy efficiency spending, and an increase in the amount of electricity purchased by customers directly from third-party suppliers and an increase of energy efficiency spending, partially offset by lower wholesale electricity prices.suppliers. Because the Company reconciles and recovers the approved Cost of Electric Sales in its rates at cost on a pass-through basis, changes in approved expenses do not affect earnings.

Cost of Gas Sales - Cost of Gas Sales includes the cost to supply the Company’s total gas requirements and spending on energy efficiency programs. Cost of Gas Sales increased $29.6$0.3 million, or 74.6%,2.1%, and $29.9 million, or 55.3%, in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025. ThisThe increase in the three-month period reflects higher gas therm sales, including $1.5 million at Maine Natural, partially offset by lower wholesale gas commodity prices. The increase in the six-month period reflects higher wholesale gas commodity prices and higher gas therm sales, including $12.3$13.8 million forat Maine Natural. Because the Company reconciles and recovers the approved Cost of Gas Sales in its rates at cost on a pass-through basis, changes in approved expenses do not affect earnings.

Operation and Maintenance (O&M) - O&M expense includes electric and gas utility operating costs, and the operating cost of the Company’s corporate and other business activities. O&M expenses increased $0.8$2.5 million, or 3.5%,11.7%, and $3.3 million, or 7.5%, in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025. The increase in the three-month period reflects higher utility operating costs of $1.1$1.6 million, and higher labor and other costs of $1.4 million, partially offset by lower acquisition transactioncosts of $0.5 million. The increase in the six-month period reflects higher utility operating costs of $0.3$2.6 million, and higher labor and other costs of $1.5 million, partially offset by lower acquisition costs of $0.8 million. Included in O&M expenseexpenses for the three and six months ended MarchJune 31,30, 2026 waswere $1.3$1.4 million and $2.7 million, respectively, related to Maine Natural. Excluding O&M expenses for Maine Natural and transaction costs, O&M expenses for legacy operations would have decreasedincreased by $0.2$1.6 millionmillion, or 7.5%, and $1.4 million, or 3.2%, for the three and six months ended MarchJune 31,30, 2026.2026, respectively.

Depreciation and Amortization - Depreciation and Amortization expense increased $1.6$2.4 million, or 7.4%,11.0%, and $4.0 million, or 9.2%, in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025. The increase in the three-month period reflects higher levels of utility plant in service, and higher amortization of recoverable storm costs and other deferred costs. The increase in the six-month period reflects higher levels of utility plant in service and higher amortization of recoverable storm costs, partially offset by lower amortization of other deferred costs. Included in Depreciation and Amortization for the three and six months ended MarchJune 31,30, 2026 was $0.7$0.8 million and $1.5 million, respectively, related to Maine Natural.

Taxes Other Than Income Taxes - Taxes Other Than Income Taxes increased $1.2$2.2 million, or 15.2%,33.3%, and $3.4 million, or 23.4%, in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025. TheThese increaseincreases reflectsreflect higher local property taxes on higher utility plant in service and higher payroll taxes. Included in Taxes Other Than Income Taxes for the three and six months ended MarchJune 31,30, 2026 waswere $0.4 million and $0.8 million, respectively, related to Maine Natural.

Other Expense (Income), Net - Other Expense (Income), Net decreased $0.1 million and $0.2 million in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025, primarily from lower retirement benefit costs.

Provision for Income taxesTaxes - Federal and State Income Taxes increased $2.4$0.4 million and $2.8 million in the three and six months ended MarchJune 31,30, 2026, respectively, compared with the same periodperiods in 2025, reflecting higher pre-tax earnings in 2026.

Unitil’s utility subsidiaries operate several reconciling rate mechanisms to recover specifically identified costs on a pass-through basis. These reconciling rate mechanisms track costs and revenue on a monthly basis. In any given month, this tracking and reconciling process will produce either an under-collected or an over-collected position. In accordance with the energy and water distribution utilities’ rate tariffs, interest is accrued on these balances and will produce either interest income or interest expense. Consistent with regulatory precedent, interest income is recorded on an under-collection of costs which creates a regulatory asset to be recovered in future periods when rates are reset. Interest expense is recorded on an over-collection of costs, which creates a regulatory liability to be refunded in future periods when rates are reset.

Interest Expense, Net increased $1.7$1.1 million, or 18.7%,11.8%, and $2.8 million, or 15.2%, in the three and six months ended MarchJune 31,30, 2026, respectively, compared to the same periodperiods in 2025, primarily reflecting higher levels of short-term borrowings and long-term debt, partially offset by lower interest expense on regulatory liabilities.

On June 3, 2025, the Company entered into an at-the-market equity offering program (the ATM program) with sales agents under which the Company may, from time to time, offer and sell shares of Unitil's common stock having an aggregate offering price of up to $50 million. Sales of common stock under the ATM program, if any, are made pursuant to a shelf registration statement on Form S-3 (File No. 333-287753) and a related prospectus supplement filed with the Securities and Exchange Commission. As of MarchJune 31,30, 2026, the Company had sold an aggregate of 27,620239,662 shares under the ATM program for net proceeds of $1.4$12.3 million. As of MarchJune 31,30, 2026, approximately $48.5$37.5 million remains available for future sales under the program. There were no212,042 shares sold under the ATM program for net proceeds of $10.8 million during the threesix months ended MarchJune 31,30, 2026.

The Company and its subsidiaries are individually and collectively members of the Unitil Cash Pool (Cash Pool). The Cash Pool is the financing vehicle for day-to-day cash borrowing and investing. The Cash Pool allows for an efficient exchange of cash among the Company and its subsidiaries. The interest rates charged to the subsidiaries for borrowing from the Cash Pool are based on actual interest costs from lenders under the Company’s revolving Credit Facility (as defined below). As of MarchJune 31,30, 2026, MarchJune 31,30, 2025 and December 31, 2025, the Company and all of its subsidiaries were in compliance with the regulatory requirements to participate in the Cash Pool.

On September 29, 2022, the Company entered into a Third Amended and Restated Credit Agreement with a syndicate of lenders (collectively, the “Credit Facility”), which amended and restated the prior facility in full, and on January 29, 2025, the Company executed an amendment that increased the borrowing limit from $200 million to $275 million and extended the maturity date from September 29, 2027 to September 29, 2028. Unitil may borrow under the Credit Facility through September 29, 2028, with the option for two additional one‑year extensions under certain conditions. The Credit Facility provides for a $275 million borrowing limit, including a $25 million sublimit for standby letters of credit, and permits Unitil to increase the borrowing limit by up to an additional $75 million under certain circumstances. Borrowings under the Credit Facility may bear interest at various rate options, including a daily fluctuating rate equal to the forward‑looking one‑month SOFR term rate (as administered by the Federal Reserve Bank of New York), plus 0.1000%, plus a margin ranging from 1.125% to 1.375% based on Unitil’s credit rating.

The Company utilizes the Credit Facility for cash management purposes related to its short-term operating activities. Total gross borrowings were $112.9$174.5 million for the threesix months ended MarchJune 31,30, 2026. Total gross repayments were $110.6$238.0 million for the threesix months ended MarchJune 31,30, 2026. The following table details the borrowing limits, amounts outstanding and amounts available under the Credit Facility as of MarchJune 31,30, 2026, MarchJune 31,30, 2025 and December 31, 2025:

The Credit Facility contains customary terms and conditions for credit facilities of this type, including affirmative and negative covenants. There are restrictions on, among other things, Unitil’s and its subsidiaries’ ability to incur liens or incur indebtedness, and restrictions on Unitil’s ability to merge or consolidate with another entity or change its line of business. The affirmative and negative covenants under the Credit Facility shall apply to Unitil until the Credit Facility terminates and all amounts borrowed under Credit Facility are paid in full (or, with respect to letters of credit, they are cash-collateralized). The only financial covenant in the Credit Facility provides that Unitil’s Funded Debt to Capitalization (as each term is defined in the Credit Facility) cannot exceed 65%, tested on a quarterly basis. At MarchJune 31,30, 2026, MarchJune 31,30, 2025 and December 31, 2025, the Company was in compliance with the covenants contained in the Credit Facility in effect on those dates.

On April 30, 2026, Fitchburg issued $23.0 million of Notes due 2036 at 5.62% and $17.0 million of Notes due 2041 at 5.87%. Fitchburg used the net proceeds to refinance existing debt and for general corporate purposes. Approximately $0.2$0.3 million of costs associated with this issuance will bewere recorded as a reduction of Long-Term Debt on the Consolidated Balance Sheet in the second quarter of 2026.

On OctoberJune 31,30, 2025,2026, the Company entered into aan Amended and Restated senior unsecured delayed-draw term loan facility with Thethe Bank of Nova Scotia.Scotia, Thewhich proceedsamended and restated the previous facility entered into on October 31, 2025. Tranche A in the agreement equals the aggregate commitment of the $86.0 million facility were used to fund the acquisition of Maine Natural Gas on October 31, 2025.2025 and has a maturity date of October 31, 2026. As of June 30, 2026, the Company’s Tranche A borrowings outstanding were $86.0 million. Tranche B in the agreement equals the aggregate commitment of $50.0 million used to fund the acquisition of the Aquarion Water companies on June 30, 2026 and has a maturity date of June 30, 2027. As of June 30, 2026, the Company’s Tranche B borrowings outstanding were $42.6 million. The facility provides that the Company has an option for determining whether interest on loans under the facility will bear interest based on a Base Rate plus an applicable margin of 0.25% or based on a one-month Term SOFR plus a SOFR adjustment of 0.10% plus an applicable margin of 1.25%. The Base Rate is equal to the highest of the (a) Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by The Bank of Nova Scotia as its "prime rate", or (c) one-month Term SOFR plus a SOFR adjustment of 0.10% plus 1.00%. The facility has a maturity date of October 31, 2026.

Unitil and its utility subsidiaries, Fitchburg, Unitil Energy, Northern Utilities, and Granite State currently are rated “BBB+”, and Bangor isand Maine Natural are rated “BBB” by Standard & Poor’s Ratings Services. Unitil and Granite State currently are rated “Baa2”, and Fitchburg, Unitil Energy and Northern Utilities are currently rated “Baa1” by Moody's Investors Services.

The Company provides limited guarantees on certain energy and gas storage management contracts entered into by the energy distribution utilities. The Company’s policy is to limit the duration of these guarantees. As of MarchJune 31,30, 2026, there were $50.3 million of guarantees outstanding.

Northern Utilities and Bangor enter into asset management agreements under which Northern Utilities and Bangor release certain gas pipeline and storage assets, sell to an asset manager and subsequently repurchase the gas over the course of the gas heating season at the same price at which they sold the gas to the asset manager. There was $1.2$8.3 million of natural gas storage inventory and corresponding obligations at MarchJune 31,30, 2026 related to these asset management agreements. The amount of natural gas inventory released in March 2026, which was payable in April 2026, was $1.7 million and was recorded in Accounts Payable at March 31, 2026.

The Company and its subsidiaries do not currently use, and are not dependent on the use of, off-balance sheet financing arrangements such as securitization of receivables or obtaining access to assets or cash through special purpose entities or variable interest entities. Unitil’s subsidiaries conduct a portion of their operations in leased facilities, and lease some of their vehicles, machinery and office equipment under both capital and operating lease arrangements. As of MarchJune 31,30, 2026, there were $50.3 million of guarantees on certain energy and natural gas storage management contracts entered into by the energy distribution utilities outstanding. See Note 4 (Debt and Financing Arrangements) to the accompanying Consolidated Financial Statements.

The preparation of the Company’s financial statements in conformity with generally accepted accounting principles in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In making those estimates and assumptions, the Company sometimes is required to make difficult, subjective and/or complex judgments about the effect of matters that are inherently uncertain and for which different estimates that could reasonably have been used could have resulted in material differences in its financial statements. If actual results were to differ significantly from those estimates, assumptions and judgments, the financial position of the Company could be materially affected and the results of operations of the Company could be materially different than reported. As of MarchJune 31,30, 2026, the Company’s critical accounting policies and estimates had not changed significantly from December 31, 2025. See Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in the Company’s 2025 Annual Report on Form 10-K for additional information.