When used in this Quarterly Report, unless otherwise indicated, the terms the “Company,” “Celsius,” “we,” “us” and “our” refer to Celsius Holdings, Inc. and its consolidated subsidiaries. Definitions of key terms can be found in the Master Glossary. Unless otherwise noted, tabular dollars are presented in thousands, except per share amounts. Cautionary Note Regarding Forward-Looking Statements This Quarterly Report contains forward-looking statements that are based on the current expectations of our Company about future events within the meaning of the Private Securities Litigation Reform Act of 1995. While we have specifically identified certain information as being forward-looking in the context of its presentation, we caution you that all statements contained in this Quarterly Report that are not clearly historical in nature are forward-looking. These forward-looking statements can be identified by words such as “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and their negative or other variations or comparable terminology. Through the use of such words and similar expressions, we intend to clearly express that the information deals with possible future events and is forward-looking in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Particular uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include, without limitation: •Our ability to successfully integrate businesses that we may acquire, achieve the expected benefits of such acquisitions and to manage multiple brands across our product portfolio; •Our ability to maintain a strong relationship with Pepsi or any of our other distributors, including our ability to successfully execute our responsibilities under the Captaincy and the A&R Distribution Agreements; •The increased ownership stake and additional Board representation by Pepsi may allow it to exert greater influence over our strategic and governance decisions; •The impact of the consolidation of retailers, wholesalers and distributors in the industry; •Our reliance on key distributor partnerships; •The potential impact of terminating distributor relationships, including exposure to contractual, statutory or regulatory claims, increased costs, litigation risk and intensified competitive pressures; •Our ability to maintain strong relationships with our customers and with co-packers to manufacture our products; •Our failure to accurately estimate demand for our products; •The impact of changes in inventory management practices by our customers or distributors, including inventory reductions or other inventory optimization initiatives; •The impact of increases in cost or shortages of raw materials or increases in costs of co-packing; •Our ability to successfully estimate demand and/or generate demand through the use of third parties, including celebrities and social media influencers, and the risk of negative publicity, litigation or regulatory enforcement action arising from such relationships; •Our ability to successfully develop, commercialize and time the introduction of new products and innovations, and the impact of any failure to do so on our competitive position, net sales and results of operations; •The impact of additional labeling or warning requirements or limitations on the marketing or sale of our products; •Our ability to successfully expand outside of the U.S., execute management’s plans and objectives for future international operations and the impact of U.S. and international laws, including export and import controls and other risk exposure; •Our ability to successfully complete or manage strategic transactions, successfully integrate and manage our acquired businesses, brands or bottling operations or successfully realize a significant portion of the anticipated benefits of our strategic transactions; •The potential negative impact that we could realize as a result of businesses that we may acquire; •Liabilities of businesses that we may acquire that are not known to us; •Our ability to protect our brand, trademarks, proprietary rights and our other intellectual property, and the impact of third parties attempting to create products that attempt to replicate our product attributes; •The impact of internal and external cyber-security threats and breaches, including risks arising from emerging artificial intelligence-enabled threats; •Our ability to comply with data privacy and personal data protection laws; •Our ability to effectively manage future growth; •The impact of global or regional catastrophic events on our operations and ability to grow; 40 •The impact of any actions by the U.S. Food and Drug Administration regarding the manufacture, composition/ingredients, packaging, marketing/labeling, storage, transportation and/or distribution of our products, or any required or elective recall of our products from distribution; •The outcomes of regulatory investigations, proceedings or actions by U.S. or foreign governmental authorities, including the Federal Trade Commission, state attorneys general and international regulatory bodies, and the impact of any adverse outcomes on our business, brand, results of operations and cash flows; •The impact of any actions by any regulatory bodies on our advertising; •The impact of current and potential litigation matters, whether or not successful, on our brand, reputation, results of operations, and cash flows; •The impact of changes in U.S. and international tax laws and regulations on our results of operations, cash flows, and financial condition; •Our ability to effectively compete in the functional beverage product industry and the strength of such industry; •The impact of changes in economic conditions in the domestic and international markets in which we operate; •The impact of changes in consumer product and shopping preferences; •The impact of changes in government regulation and our ability to comply with existing and emerging regulation concerning energy drinks, including climate-disclosure and environmental-reporting requirements; •The potential effects of tariffs, macroeconomic instability or inflationary pressures on our supply chain, operating costs and consumer demand; •Our ability to execute any share repurchase program, including the timing, amount and funding of any repurchases and the potential impact of such repurchases on our liquidity and the trading price of our Common Stock; •Our ability to meet market expectations for our financial performance, including any financial outlook or guidance we may provide, and the impact of any failure to do so on our stock price, reputation, results of operations, and cash flows; •Other statements regarding our future operations, financial condition, prospects and business strategies; and •Those factors contained in this Quarterly Report under the heading, "Risk Factors". Forward-looking statements and information involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in or reasonably inferred from, such statements, including without limitation, the risks and uncertainties disclosed or referenced in Part I, Item 1A Risk Factors and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report. Therefore, caution should be taken not to place undue reliance on any such forward-looking statements. Much of the information in this Quarterly Report that looks toward future performance is based on various factors and important assumptions about future events that may or may not actually occur. As a result, our operations and financial results in the future could differ materially and substantially from those we have discussed in the forward-looking statements included in this Quarterly Report. We assume no obligation (and specifically disclaim any such obligation) to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. 41 Our Business Executive-Level Overview Celsius is a functional energy drink company operating in the U.S. and internationally. Our portfolio consists of three brands: CELSIUS®, our core functional energy brand; Alani Nu®, a wellness-focused energy and nutrition brand acquired in April 2025; and Rockstar®, an established energy brand with a strong heritage, acquired in August 2025. Together, these brands form a differentiated, multi-brand platform designed to serve distinct consumers, occasions and energy needs, supporting functional performance, better-for-you formulations and active lifestyles. CELSIUS® is a functional energy brand offering products across a range of formats, including ready-to-drink, on-the-go powder and hydration, designed to support active and wellness-oriented lifestyles for consumers who are 18 years and older. Our products are widely available throughout the U.S. and in select Canadian territories across a broad range of retail outlets, including grocery stores, natural product stores, convenience stores, fitness centers, mass retailers, vitamin specialty stores and through e-commerce platforms. Moreover, our products are offered in select markets in Europe, the Middle East and the Asia-Pacific region as we have continued to expand our global presence. Alani Nu expands our portfolio further into wellness and nutrition, broadening our reach across consumers, occasions and product formats, with a product range spanning energy drinks, pre-workout formulas, protein beverages and supplements. With a strong following among Gen Z and female consumers, who are 18 years and older, Alani Nu enhances our ability to connect with key consumer segments, strengthens our innovation pipeline and supports continued expansion. Rockstar Energy strengthens our total energy portfolio by adding both full-sugar and zero-sugar offerings that complement our existing brands. With established brand equity, Rockstar enhances our ability to serve core energy consumers who are 18 years and older. Together, our brands enable a portfolio-led approach to serving diverse consumer preferences across performance, lifestyle and traditional energy occasions. We engage in developing, manufacturing, processing, marketing, selling and distributing Celsius, Alani Nu and Rockstar products. Our operational model strategically relies primarily on co-packers for the manufacture and supply of our products, leveraging their specialized expertise and scalable production capabilities. Additionally, we utilize our in-house manufacturing facility to complement our strategic use of co-packers. This approach allows us to maintain flexibility in responding to market demands and to focus our resources on innovation, marketing and expanding our distribution channels. We continuously assess and work to optimize our supply chain to ensure quality, consistency and timely delivery to our customers. Building on the long-term distribution arrangement that we originally established with Pepsi in August 2022, we entered into a series of transactions on the Closing Date of the Pepsi Transactions that expanded our strategic partnership. These included (i) the Rockstar Acquisition, (ii) the issuance of Series B Preferred Stock and amendment of the existing Series A Preferred Stock and (iii) the execution of the A&R Distribution Agreements, which designate Pepsi as the primary distributor of our Alani Nu and Rockstar products in the U.S. and Canada. Under the enhanced commercial arrangement, Pepsi has agreed to use commercially reasonable efforts to sell and distribute our full portfolio of products in the U.S. in accordance with the Captaincy. On May 21, 2026, the Company entered into the Channel Transition Amendment, which transferred additional territory rights of certain former Alani Nu distributors to Pepsi. Pepsi agreed to reimburse the Company for related distributor termination fees of $81.1 million, with amounts received by the Company from Pepsi contractually restricted for use solely to satisfy the related termination obligations. The additional territories being distributed by Pepsi are subject to the terms and conditions of the A&R Distribution Agreements. As of June 30, 2026, the Company had received the entire $81.1 million from Pepsi and had utilized substantially all of it under the Channel Transition Amendment. Impact of Macroeconomic Trends The imposition of tariffs, including U.S. tariffs imposed or threatened to be imposed on other countries and any tariffs imposed by such countries, have impacted and could continue to impact our supply chain, including the cost of certain raw materials and packaging, including aluminum. In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were unlawful, and those duties were subsequently terminated. While this may present a potential refund opportunity, the pathway and timing of any such refunds remain uncertain. The current administration has since imposed alternative tariffs under other statutory authority, and we continue to monitor developments. Any supply chain constraints, inflationary impacts, or reduced consumer demand as a result of such tariffs or ongoing macroeconomic uncertainty could impact our results. 42 Similarly, the ongoing conflict in the Middle East, including tensions involving Iran, has impacted and could continue to impact our operations through increased fuel, energy and transportation costs, as well as supply chain disruptions and increased cost of aluminum. Although we sell products in the Middle East, revenue from that region is not material to our overall results, and we do not anticipate the conflict to have a meaningful direct impact on our net sales. The rapidly changing nature of global trade policies, tariff regulations, geopolitical developments and other aspects of the macroeconomic environment make it difficult to reasonably estimate potential future impacts on our cost structure and results of operations. Impact of One Big Beautiful Bill Act On July 4, 2025, the OBBBA was signed into law in the U.S. The legislation introduced a wide array of changes to the U.S. corporate tax system, including permanent extensions of certain provisions of the Tax Cuts and Jobs Act of 2017 and substantial modifications to the international tax regime applicable to U.S. multinational corporations. Significant provisions include the permanent restoration of 100% bonus depreciation for qualifying property, changes to the global intangible low-taxed income regime, now referred to as net CFC tested income, the treatment of foreign tax credits, and the foreign-derived intangible income deduction. We evaluated the applicable OBBBA provisions and incorporated their impact into our June 30, 2026 financial statements. The impact of the OBBBA provisions is not expected to have a material impact on our 2026 annual effective tax rate. Results of Operations Three months ended June 30, 2026 compared to three months ended June 30, 2025 Revenue For the three months ended June 30, 2026, revenue was approximately $817.9 million, an increase of $78.6 million or 10.6%, from $739.3 million for the three months ended June 30, 2025. Revenue in North America was approximately $790.7 million, representing 96.7% of total revenue for the three months ended June 30, 2026. International revenue was $27.2 million, an increase of 9.8% from the prior year period. Our international markets have continued to expand, driven by new market launches and continued investment in distribution, marketing and strategic partnerships to support long-term growth. Celsius For the three months ended June 30, 2026, revenue attributable to the Celsius brand was approximately $387.0 million, compared to $438.1 million for the three months ended June 30, 2025, a decrease of $51.1 million, or 11.7%. This decrease was primarily driven by increased trade and promotional investment as a percentage of revenue, shipment timing related to inventory rebalancing, softness in the club channel and a planned moderation in innovation activity, as well as SKU optimization initiatives implemented in conjunction with the integration of our acquisitions and Alani Nu’s distribution transition. The optimization actions resulted in an initial reduction in average SKUs ahead of anticipated space gains. Alani Nu For the three months ended June 30, 2026, revenue attributable to the Alani Nu brand was approximately $364.4 million, compared to $301.2 million for the three months ended June 30, 2025, an increase of $63.2 million, or 21.0%. This increase was primarily driven by strong demand, successful innovation and distribution expansion, partially offset by discontinued non-core SKUs and an increase in promotional activity as a percentage of revenue. Rockstar For the three months ended June 30, 2026, revenue attributable to the Rockstar brand was approximately $66.5 million. As Rockstar was acquired on August 28, 2025, there was no comparable revenue for the prior-year period. Gross Profit For the three months ended June 30, 2026, gross profit increased by $12.8 million to $393.7 million, an increase of 3.4%, from $380.9 million for the three months ended June 30, 2025. Gross profit margin decreased to 48.1% for the three months ended June 30, 2026 from 51.5% for the three months ended June 30, 2025. The decrease in gross profit margin was primarily driven by higher promotional and incentive activity as a percentage of revenue and channel mix. This decrease was partially offset by ongoing improvements from our integration of acquired businesses and the absence of inventory step-up expense in 2026 related to the Alani Nu Acquisition. 43 Selling, General and Administrative Expenses Selling, general and administrative expenses for the three months ended June 30, 2026 were $237.6 million, a decrease of $0.3 million, or 0.1%, from $237.9 million for the three months ended June 30, 2025. The decrease reflects a favorable comparison to the prior-year period, which included acquisition-related transaction costs and the remeasurement of contingent consideration related to the Alani Nu Acquisition, not present in the current period. This favorable comparison was offset primarily by increases in sales and marketing expenses in the current period, related to the incremental costs associated with the expansion of our portfolio from one brand to three brands. Distributor Termination Fees For the three months ended June 30, 2026, we recorded $80.9 million of distributor termination fees related to the termination of certain former Alani Nu distributors primarily in connection with the Channel Transition Amendment. There were no comparable expenses during the three months ended June 30, 2025. Total Other Expense, net Total other expense was $5.7 million for the three months ended June 30, 2026, compared to total other expense of $13.5 million for the three months ended June 30, 2025, reflecting a decrease in other expense of $7.8 million. The change in total other expense primarily reflects a $6.5 million decrease in interest expense as a result of our debt repayment and subsequent refinancing that took place in the fourth quarter of 2025. Provision for Income Taxes The effective income tax rate for the three months ended June 30, 2026 was 20.5% compared to 22.9% in the comparable prior year period. The decrease in the effective tax rate was due primarily to increased income in tax jurisdictions with lower tax rates than the U.S. and permanent differences related to stock compensation. The effective tax rate for the three months ended June 30, 2026 varied from the U.S. statutory rate due primarily to the jurisdictional mix of earnings and permanent tax differences related to stock compensation. We are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. Our tax returns for tax years beginning 2021 remain subject to potential examination by the taxing authorities. Net Income Attributable to Common Stockholders Net income attributable to common stockholders for the three months ended June 30, 2026 was $36.4 million, representing basic EPS of $0.14 based on a basic weighted average of 254.8 million shares outstanding. In comparison, for the three months ended June 30, 2025, net income attributable to common stockholders was $85.7 million, representing basic EPS of $0.33 based on a weighted average of 257.8 million shares outstanding. Diluted EPS was $0.14 and $0.33 for the three months ended June 30, 2026 and 2025, respectively. The decrease in net income attributable to common stockholders for the three months ended June 30, 2026 was primarily driven by distributor termination fees related to the termination of certain former Alani Nu distributors and by dividends on our Series B Preferred Stock, which was not outstanding in the prior year period. This impact was partially offset by the increase in revenue and gross profit. Other factors contributing to the trends driving net income and EPS are discussed earlier in this section. 44 Six months ended June 30, 2026 compared to six months ended June 30, 2025 Revenue For the six months ended June 30, 2026, revenue was approximately $1,600.5 million, an increase of $532.0 million, or 49.8%, from $1,068.5 million for the six months ended June 30, 2025. Revenue in North America was approximately $1,538.0 million, representing 96.1% of total revenue for the six months ended June 30, 2026. International revenue was $62.5 million an increase of 31.5% from the prior year period. Our international markets have continued to expand, driven by new market launches and continued investment in distribution, marketing and strategic partnerships to support long-term growth. Celsius For the six months ended June 30, 2026, revenue attributable to the Celsius brand was approximately $735.0 million, compared to $767.3 million for the six months ended June 30, 2025, a decrease of $32.3 million, or 4.2%. While revenue grew in the first quarter of 2026, this was offset by increased trade and promotional investment as a percentage of revenue, shipment timing related to inventory rebalancing, softness in the club channel and a planned moderation in innovation activity, as well as SKU optimization initiatives implemented in conjunction with the integration of our acquisitions and Alani Nu’s distribution transition. The optimization actions resulted in an initial reduction in average SKUs ahead of anticipated space gains. Alani Nu For the six months ended June 30, 2026, revenue attributable to the Alani Nu brand was approximately$732.4 million, compared to $301.2 million for the six months ended June 30, 2025, an increase of $431.3 million, or 143.2%. This increase was primarily attributable to the inclusion of a full six months of Alani Nu revenue in the current-year period, as compared to one quarter of revenue in the prior-year period following the Alani Nu Acquisition on April 1, 2025. Alani Nu benefited from strong demand and successful innovation as well as distribution expansion, partially offset by discontinued non-core SKUs, and an increase in promotional activity as a percentage of revenue. Rockstar For the six months ended June 30, 2026, revenue attributable to the Rockstar brand was approximately $133.1 million. As Rockstar was acquired on August 28, 2025, there is no comparable prior-year period. Gross Profit For the six months ended June 30, 2026, gross profit increased by $218.5 million to $771.8 million, an increase of 39.5%, from $553.2 million for the six months ended June 30, 2025. Gross profit margin decreased to 48.2% for the six months ended June 30, 2026 from 51.8% for the six months ended June 30, 2025. The decrease in gross profit margin was primarily driven by higher promotional and incentive activity as a percentage of revenue and channel mix. This decrease was partially offset by ongoing improvements from our integration of acquired businesses and the absence of inventory step-up expense in 2026 related to the Alani Nu Acquisition. Selling, General and Administrative Expenses Selling, general and administrative expenses for the six months ended June 30, 2026 were $472.2 million, an increase of $114.0 million, or 31.8%, from $358.2 million for the six months ended June 30, 2025. The increase was primarily driven by incremental costs associated with the expansion of our portfolio from one brand to three brands, including increased investment in brand awareness and marketing initiatives, higher employee and professional service costs and other expenses associated with supporting and marketing three brands. The current period also reflected charges of $25.5 million related to an ongoing legal matter. These increases were partially offset by a decrease in deal and transaction costs that were higher in the prior year in connection with completing the Alani Nu Acquisition and the prior year remeasurement of contingent consideration related to the Alani Nu Acquisition. Distributor Termination Fees For the six months ended June 30, 2026, we recorded $85.3 million of distributor termination fees related to the termination of certain former Alani Nu distributors. There were no comparable expenses during the six months ended June 30, 2025. 45 Total Other Expense, net Total other expense was $7.2 million for the six months ended June 30, 2026, compared to total other expense of $4.5 million for the six months ended June 30, 2025, reflecting an expense increase of $2.6 million. The changes in total other expense were primarily driven by an increase in interest expense related to our outstanding debt, reflecting a full six months of interest expense for the current-year period whereas the prior year period included material outstanding debt only in the second quarter of 2025, as well as a decrease in interest income as a result of lower average cash balances. These changes were partially offset by a $7.8 million increase in other income, net, primarily reflecting sales of Rockstar products for which we acted as an agent under a transition services agreement during the six months ended June 30, 2026. This arrangement is transitional in nature, with no comparable activity in the prior-year period. Provision for Income Taxes The effective income tax rate for the six months ended June 30, 2026 was 20.1% compared to 24.2% in the comparable prior year period. The decrease in the effective tax rate was due primarily to increased income in tax jurisdictions with lower tax rates than the U.S. and permanent differences related to stock compensation. The effective tax rate for the six months ended June 30, 2026 varied from the U.S. statutory rate due primarily to the jurisdictional mix of earnings and permanent tax differences related to stock compensation. Net Income Attributable to Common Stockholders Net income attributable to common stockholders for the six months ended June 30, 2026 was $121.4 million, representing basic EPS of $0.47 based on a basic weighted average of 255.9 million shares outstanding. In comparison, for the six months ended June 30, 2025, net income attributable to common stockholders was $119.9 million, representing basic EPS of $0.49 based on a weighted average of 246.5 million shares outstanding. Diluted EPS was $0.47 and $0.48 for the six months ended June 30, 2026 and 2025, respectively. The increase in net income attributable to common stockholders for the six months ended June 30, 2026 was primarily driven by higher revenue and gross profit resulting from the inclusion of a full six months of operations for all three brands, compared with the prior-year period, which included only one quarter of Alani Nu and no Rockstar operations. This increase was partially offset by distributor termination fees related to the termination of certain former Alani Nu distributors, increased costs related to an ongoing legal matter and by dividends on our Series B Preferred Stock, which was not outstanding in the prior year period. Other factors contributing to the trends driving net income and EPS are discussed earlier in this section. Liquidity and Capital Resources General As of June 30, 2026, we had unrestricted cash and cash equivalents of approximately $631.2 million and net working capital of $832.3 million. Our primary sources of liquidity are cash flows from operations, our existing cash balances and, if needed, our $100.0 million Revolving Credit Facility. Our principal uses of cash are expected to include purchases of inventories, funding increases in accounts receivable and other assets, capital expenditures, payments of accounts payable, income taxes, dividends paid on our Preferred Stock and required debt service costs. We may also use cash for stock repurchases and other strategic or contractual obligations. We believe that our existing cash balances, cash flows from operations and available borrowing capacity under our Revolving Credit Facility will be sufficient to meet our working capital requirements, capital expenditure needs, contractual obligations and other anticipated cash requirements for at least the next twelve months and for the foreseeable future. On July 15, 2026, subsequent to the end of the reporting period, we entered into the Second Refinancing Amendment, which amended the Credit Agreement to reduce the applicable interest rate under the Term Loan Facility by 0.25%, with a potential additional reduction of 0.25% should the Company achieve certain public corporate or corporate family ratings on an ongoing basis. All other material terms of the Credit Agreement, including the applicable interest rate with respect to the Revolving Credit Facility, remain unchanged. In connection with the Second Refinancing Amendment, the Company repaid the remaining outstanding balance of the $694.8 million Term Loan Facility using all of the proceeds from a new $694.8 million term loan under the Term Loan Facility, which bears interest at the reduced interest rate provided by the Second Refinancing Amendment. No prepayment penalties were incurred in connection with the refinancing. The refinancing is expected to reduce the Company’s borrowing costs and further enhance its financial flexibility. 46 Cash flows for the six months ended June 30, 2026 and 2025 Cash provided by operating activities Cash provided by operating activities totaled $296.3 million for the six months ended June 30, 2026 compared to $147.1 million cash provided by operating activities for the six months ended June 30, 2025. The $149.2 million increase in operating cash flows primarily reflects higher revenue and gross profit resulting from the inclusion of a full six months of operations for all three brands, compared with the prior-year period, which included only one quarter of Alani Nu and no Rockstar operations. Operating cash flows also benefited from improved customer collections following the completion of the Alani Nu and Rockstar integrations and the resulting reduction in accounts receivables, net, as well as higher accrued promotional allowance and accounts payable, primarily reflecting the timing of payments. These increases were partially offset by the net cash effects of distributor termination activity under the A&R Distribution Agreement. The Company received $64.2 million from Pepsi during the six months ended June 30, 2026 related to a receivable recognized as of December 31, 2025, and utilized this amount together with $141.1 million of restricted cash on hand from Pepsi since December 31, 2025 along with the Company's own cash, to fund the settlement of accrued distributor termination fees. Additionally, an $81.9 million increase in inventory, reflecting increased investment to support anticipated demand, including for limited-time offerings, negatively impacted cash flows for the period. Cash used in investing activities Cash used in investing activities totaled $24.7 million for the six months ended June 30, 2026, compared to cash used in investing activities of $1,276.5 million for the six months ended June 30, 2025, a decrease of $1,251.8 million. The decrease was primarily attributable to the absence of acquisition activity in the current-year period. Cash used in investing activities during the current-year period primarily related to purchases of property, plant and equipment. Cash used in financing activities Cash used in financing activities totaled $176.4 million for the six months ended June 30, 2026, compared to $852.3 million cash provided by financing activities for the same period in 2025, representing a $1,028.7 million decrease. The decrease was primarily attributable to $900.0 million of proceeds from the Term Loan Facility received during the six months ended June 30, 2025 in connection with the Alani Nu Acquisition, with no comparable proceeds in the current-year period. The decrease was further driven by Common Stock repurchases under our share repurchase program of $124.4 million, as well as $14.5 million of dividends paid on Series B Preferred Stock and an $11.2 million payment for the portion of contingent consideration up to the acquisition-date fair value, each of which had no comparable activity in the prior year period. Off Balance Sheet Arrangements As of June 30, 2026 and December 31, 2025, we had no off balance sheet arrangements. Critical Accounting Policies and Estimates Our Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions that affect the reported amounts in our Condensed Consolidated Financial Statements. Critical accounting policies and estimates are those that management believes are the most important to the portrayal of our financial condition, results of operations and cash flows, and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and that have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. Judgments and uncertainties may result in materially different amounts being reported under different conditions or using different assumptions. There have been no material changes to our critical accounting policies or estimates from those described in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report. 47