Interest Rate Sensitivity Our exposure to market risk for changes in interest rates relates primarily to our financial debt and foreign currencies. As of June 30, 2026, we did not have any financial investments that were exposed to interest rate risk. Debt At certain points in time we are exposed to the impact of interest rate fluctuations, primarily in the form of variable rate borrowings from the Amended Credit Agreement, which is described in Note 7, Debt, in the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. As of June 30, 2026, we had $165.0 million of debt outstanding, all of which was from the Amended Credit Agreement. Through the end of our fiscal year 2026, the average daily outstanding amount was $182.6 million with a high of $205.0 million and a low of $165.0 million. As of June 30, 2026 we have not entered into any derivative instruments to hedge the impact of the changes in variable interest rates under our Amended Credit Agreement. The following table presents hypothetical changes in interest expense for the year ended June 30, 2026, on the outstanding borrowings under the Amended Credit Agreement as of June 30, 2026, that are sensitive to changes in interest rates (in thousands): Change in interest expense given a decrease in interest rate of X bps* Average outstanding Change in interest expense given an increase in interest rate of X bps* Description (100 bps) (50 bps) as of June 30, 2026 100 bps 50 bps Debt $ (1,826 ) $ (913 ) $ 182,634 $ 1,826 $ 913 * Underlying interest rate was 5.77% as of June 30, 2026. Exchange Rate Sensitivity A majority of our sales and our expenses are denominated in U.S. Dollars. While we conduct sale transactions and incur certain operating expenses in foreign currencies and expect to continue to do so, we do not anticipate that foreign exchange gains or losses will be significant, in part because of our foreign exchange risk management process discussed below. Foreign Exchange Forward Contracts We record all derivatives on the balance sheet at fair value. From time to time, we enter into foreign exchange forward contracts to mitigate the effect of gains and losses generated by the foreign currency forecast transactions related to certain operating expenses and re-measurement of certain assets and liabilities denominated in foreign currencies. Changes in the fair value of these foreign exchange forward contracts are offset largely by re-measurement of the underlying foreign currency denominated assets and liabilities. As of June 30, 2026 and June 30, 2025, foreign exchange forward currency contracts not designated as hedging instruments had the total notional principal amounts of $68.0 million and $57.2 million, respectively. Changes in the fair value of derivatives are recognized in “other income (expense), net.” For the fiscal years ended June 30, 2026, 2025, and 2024, the consolidated statements of operations included net losses of $4.0 million, net gains of $1.0 million, and net losses of $0.3 million, respectively from these contracts. There were no foreign exchange forward currency contracts that were designated as hedging instruments at June 30, 2025 and 2024. Zero-Cost Collar Contracts Changes in the fair value of our zero-cost collar contracts are recorded as a component of “Accumulated other comprehensive loss” in the consolidated balance sheets. Amounts recorded in “Accumulated other comprehensive loss” related to the changes in the fair value of these derivatives are reclassified to the consolidated statement of operations in the same period that the underlying hedged transaction affects earnings. As of June 30, 2026, zero-cost collar contracts designated as cash flow hedges had a total notional principal amount of $82.5 million and unrealized losses of $1.8 million. For the year ended June 30, 2026, these contracts had realized net losses of $0.7 million that were reclassified to the consolidated statement of operations. As of June 30, 2025, there were no outstanding zero-cost collar contracts that were designated as hedging instruments. Foreign Currency Transactions For the fiscal years ended June 30, 2026, 2025 and 2024 we recognized foreign currency transaction net gains of $2.5 million, net losses of $1.8 million, and net gains of $0.6 million, respectively. 46