The following discussion and analysis of the financial condition and results of our operations should be read together with the financial statements and related notes of Floor & Decor Holdings, Inc. and Subsidiaries included in Part I, Item 1, “Financial Statements” of this Quarterly Report and with our audited financial statements and the related notes included in our Annual Report. As used in this Quarterly Report, except where the context otherwise requires or where otherwise indicated, the terms “Floor & Decor,” “Company,” “we,” “our,” or “us” refer to Floor & Decor Holdings, Inc. and its subsidiaries, and “Spartan” refers to our subsidiary Spartan Surfaces, LLC. Overview Founded in 2000, Floor & Decor is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories and seller of commercial surfaces with 281 warehouse-format stores and five small-format standalone design studios across 39 states as of June 25, 2026. We believe our unique approach to selling hard surface flooring and our consistent and disciplined culture of innovation and reinvestment create a differentiated business model in the hard surface flooring category. We believe that we offer the broadest in-stock assortment of laminate and vinyl, tile, wood, and natural stone flooring and installation materials and decorative accessories, as well as adjacent categories, at everyday low prices. This positions us as the one-stop destination for our customers’ entire hard surface flooring needs. We appeal to a variety of customers, including Pros and homeowners, which are comprised of DIY and BIY customers. During the twenty-six weeks ended June 25, 2026, we opened 11 new warehouse-format stores, ending the quarter with 281 warehouse-format stores and five design studios. We operate on a 52- or 53-week fiscal year ending the Thursday on or preceding December 31. The following discussion contains references to the thirteen and twenty-six weeks ended June 25, 2026 and June 26, 2025, respectively. Key Performance Indicators We consider a variety of performance and financial measures in assessing the performance of our business. The key performance and financial measures we use to determine how our business is performing are comparable store sales, the number of new store openings, gross profit and gross margin, operating income, and EBITDA and Adjusted EBITDA. For definitions and a discussion of how we use our key performance indicators, see the “Key Performance Indicators” section of Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report. See “Non-GAAP Financial Measures” below for a discussion of how we define EBITDA and Adjusted EBITDA and a reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP. Other key financial terms we use include net sales and selling, general and administrative (“SG&A”) expenses. For definitions and a discussion of how we use other key financial terms, see the “Other Key Financial Definitions” section of Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report. Results of Operations Results of operations for any period should not be considered indicative of future results. See Part II, Item 1A, “Risk Factors” for information about the potential impacts that risks, such as declines in economic conditions that affect the residential housing market and consumer spending for hard surface flooring, interest rates, inflation, global supply chain disruptions, regulatory and political conditions, tariffs and trade policy, and geopolitical instability, among others, may have on our results of operations and overall financial performance for future periods. 19 Table of Contents The following tables summarize key components of our results of operations for the periods indicated: Thirteen Weeks Ended June 25, 2026 June 26, 2025 Increase (Decrease) dollars in thousands Amount % of Net Sales Amount % of Net Sales $ % Net sales $ 1,250,270 100.0 % $ 1,214,150 100.0 % $ 36,120 3.0 % Cost of sales 647,151 51.8 681,462 56.1 (34,311) (5.0) % Gross profit 603,119 48.2 532,688 43.9 70,431 13.2 % Selling, general and administrative expenses 479,135 38.3 450,794 37.1 28,341 6.3 % Operating income 123,984 9.9 81,894 6.8 42,090 51.4 % Interest (income) expense, net (2,278) (0.2) 1,076 0.1 (3,354) NM Loss on extinguishment of debt 1,328 0.1 — — 1,328 NM Income before income taxes 124,934 10.0 80,818 6.7 44,116 54.6 % Income tax expense 29,064 2.3 17,640 1.5 11,424 64.8 % Net income $ 95,870 7.7 % $ 63,178 5.2 % $ 32,692 51.7 % Twenty-six Weeks Ended June 25, 2026 June 26, 2025 Increase (Decrease) dollars in thousands Amount % of Net Sales Amount % of Net Sales $ % Net sales $ 2,402,548 100.0 % $ 2,374,890 100.0 % $ 27,658 1.2 % Cost of sales 1,291,978 53.8 1,334,034 56.2 (42,056) (3.2) % Gross profit 1,110,570 46.2 1,040,856 43.8 69,714 6.7 % Selling, general and administrative expenses 934,190 38.9 894,733 37.6 39,457 4.4 % Operating income 176,380 7.3 146,123 6.2 30,257 20.7 % Interest (income) expense, net (1,145) — 2,624 0.2 (3,769) NM Loss on extinguishment of debt 1,328 — — — 1,328 NM Income before income taxes 176,197 7.3 143,499 6.0 32,698 22.8 % Income tax expense 40,618 1.7 31,443 1.3 9,175 29.2 % Net income $ 135,579 5.6 % $ 112,056 4.7 % $ 23,523 21.0 % NM – Not meaningful Thirteen Weeks Ended Twenty-six Weeks Ended June 25, 2026 June 26, 2025 June 25, 2026 June 26, 2025 Comparable store sales (2.1) % 0.4 % (2.9) % (0.7) % Comparable average ticket 0.8 % 3.8 % 1.4 % 3.0 % Comparable transactions (2.9) % (3.3) % (4.2) % (3.5) % Number of warehouse-format stores 281 257 281 257 Adjusted EBITDA (in thousands) (1) $ 151,967 $ 150,153 $ 273,460 $ 279,974 Adjusted EBITDA (% of net sales) (1) 12.2 % 12.4 % 11.4 % 11.8 % (1)Refer to “Non-GAAP Financial Measures” further below for a reconciliation of Adjusted EBITDA to net income. 20 Table of Contents Net Sales Net sales during the thirteen weeks ended June 25, 2026 increased $36.1 million, or 3.0%, compared to the corresponding prior year period primarily due to sales from the 24 new warehouse-format stores that we opened since June 26, 2025, partially offset by a decrease in comparable store sales of 2.1%. The comparable store sales decline during the period of 2.1%, or $24.4 million, was due to a 2.9% decrease in comparable transactions, partially offset by a 0.8% increase in comparable average ticket. Non-comparable sales increased $60.5 million from the corresponding prior year period primarily driven by new stores. Net sales during the twenty-six weeks ended June 25, 2026 increased $27.7 million, or 1.2%, compared to the corresponding prior year period primarily due to sales from the 24 new warehouse-format stores that we opened since June 26, 2025, partially offset by a decrease in comparable store sales of 2.9%. The comparable store sales decline during the period of 2.9%, or $65.1 million, was due to a 4.2% decrease in comparable transactions, partially offset by a 1.4% increase in comparable average ticket. Non-comparable sales increased $92.8 million from the corresponding prior year period primarily driven by new stores. We believe the decreases in comparable transactions during the thirteen and twenty-six weeks ended June 25, 2026 were largely driven by the continued impact of low existing home sales and low consumer sentiment. The increases in comparable average ticket during the thirteen and twenty-six weeks ended June 25, 2026 were primarily due to strategic price increases. We estimate that retail sales during the thirteen and twenty-six weeks ended June 25, 2026 were approximately 45% from homeowners and 55% from Pros compared to approximately 50% from homeowners and 50% from Pros during the thirteen and twenty-six weeks ended June 26, 2025. Gross Profit and Gross Margin Gross profit during the thirteen weeks ended June 25, 2026 increased $70.4 million, or 13.2%, compared to the corresponding prior year period. Gross margin increased to 48.2%, up approximately 430 basis points from 43.9% in the corresponding prior year period. The increase in gross profit and gross margin was primarily driven by a $56.2 million, or 450 basis points, one-time benefit from the recognition of IEEPA tariff refunds. The remaining increase in gross profit was primarily attributable to the 3.0% increase in net sales. Gross profit during the twenty-six weeks ended June 25, 2026 increased $69.7 million, or 6.7%, compared to the corresponding prior year period. Gross margin increased to 46.2%, up approximately 240 basis points from 43.8% in the corresponding prior year period. The increase in gross profit and gross margin was primarily driven by a $56.2 million, or 230 basis points, one-time benefit from the recognition of IEEPA tariff refunds. The remaining increase in gross profit was primarily attributable to the 1.2% increase in net sales. Selling, General and Administrative Expenses SG&A expenses during the thirteen weeks ended June 25, 2026 increased $28.3 million, or 6.3%, compared to the corresponding prior year period. The increase in SG&A expenses was primarily driven by the 24 new stores that we opened since June 26, 2025, which increased compensation and occupancy costs. The increase also reflects higher incentive compensation related to the recognition of IEEPA tariff refunds. SG&A expenses for non-comparable stores increased $26.7 million and for comparable stores decreased $13.7 million. As a percentage of net sales, SG&A expenses increased by approximately 120 basis points to 38.3% from 37.1% in the corresponding prior year period. This increase was primarily attributable to incentive compensation related to the recognition of IEEPA tariff refunds, as well as the addition of new stores and deleverage from a decrease in comparable store sales. SG&A expenses during the twenty-six weeks ended June 25, 2026 increased $39.5 million, or 4.4%, compared to the corresponding prior year period. The increase in SG&A expenses was primarily driven by the 24 new stores that we opened since June 26, 2025, which increased compensation and occupancy costs. The increase also reflects higher incentive compensation related to the recognition of IEEPA tariff refunds. SG&A expenses for non-comparable stores increased $48.1 million and for comparable stores decreased $22.7 million. As a percentage of net sales, SG&A expenses increased by approximately 130 basis points to 38.9% from 37.6% in the corresponding prior year period. This increase was primarily attributable to the addition of new stores and deleverage from a decrease in comparable store sales, as well as incentive compensation related to the recognition of IEEPA tariff refunds. 21 Table of Contents Interest (Income) Expense, Net Net interest income during the thirteen weeks ended June 25, 2026 was $2.3 million compared to net interest expense of $1.1 million during the corresponding prior year period. The change was primarily attributable to statutory interest on refunded IEEPA tariffs and increased interest income earned on larger cash balances. Net interest income during the twenty-six weeks ended June 25, 2026 was $1.1 million compared to net interest expense of $2.6 million during the corresponding prior year period. The change was primarily attributable to statutory interest on refunded IEEPA tariffs and increased interest income earned on larger cash balances. Income Tax Expense Income tax expense was $29.1 million during the thirteen weeks ended June 25, 2026 compared to $17.6 million during the thirteen weeks ended June 26, 2025. The effective tax rate was 23.3% for the thirteen weeks ended June 25, 2026 compared to 21.8% in the corresponding prior year period. The effective tax rate increase during the thirteen weeks ended June 25, 2026 was primarily due to a decrease in federal tax credits. Income tax expense was $40.6 million during the twenty-six weeks ended June 25, 2026 compared to $31.4 million during the twenty-six weeks ended June 26, 2025. The effective tax rate was 23.1% for the twenty-six weeks ended June 25, 2026 compared to 21.9% in the corresponding prior year period. The effective tax rate increase during the twenty-six weeks ended June 25, 2026 was primarily due to a decrease in excess tax benefits related to stock-based compensation awards. Non-GAAP Financial Measures EBITDA and Adjusted EBITDA are key metrics used by management and our Board of Directors to assess our financial performance and enterprise value. We believe that EBITDA and Adjusted EBITDA are useful measures, as they eliminate certain items that are not indicative of our core operating performance and facilitate comparisons on a consistent basis from period to period. We also use Adjusted EBITDA as a basis to determine covenant compliance with respect to our 2026 ABL Facility and 2026 Term Loan Facility (together, the “2026 Credit Facilities”), to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors, and other interested parties as performance measures to evaluate companies in our industry. EBITDA and Adjusted EBITDA are supplemental measures of financial performance that are not required by or presented in accordance with GAAP. We define EBITDA as net income before interest, loss on extinguishment of debt, taxes, and depreciation and amortization. We define Adjusted EBITDA as net income before interest, loss on extinguishment of debt, taxes, and depreciation and amortization adjusted to eliminate the impact of non-cash stock-based compensation expense and certain items that we do not consider indicative of our core operating performance. See below for a reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP. EBITDA and Adjusted EBITDA are non-GAAP measures of our financial performance and should not be considered as alternatives to net income as a measure of financial performance or any other performance measure derived in accordance with GAAP, and they should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of liquidity or free cash flow for management’s discretionary use. In addition, these non-GAAP measures exclude certain non-recurring and other charges. Each of these non-GAAP measures has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses or realize benefits that are the same as or similar to items eliminated in calculating EBITDA and Adjusted EBITDA, such as stock-based compensation expense, fair value adjustments related to contingent earn-out liabilities, tariff refunds, and other adjustments. Definitions and calculations of EBITDA and Adjusted EBITDA differ among companies in the retail industry, and therefore EBITDA and Adjusted EBITDA disclosed by us may not be comparable to the metrics disclosed by other companies. 22 Table of Contents For the periods presented, the following table reconciles EBITDA and Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP: Thirteen Weeks Ended Twenty-six Weeks Ended in thousands June 25, 2026 June 26, 2025 June 25, 2026 June 26, 2025 Net income $ 95,870 $ 63,178 $ 135,579 $ 112,056 Depreciation and amortization (1) 62,885 59,337 123,613 118,724 Interest (income) expense, net (2,278) 1,076 (1,145) 2,624 Loss on extinguishment of debt (2) 1,328 — 1,328 — Income tax expense 29,064 17,640 40,618 31,443 EBITDA 186,869 141,231 299,993 264,847 Stock-based compensation expense (3) 7,504 8,922 15,873 15,502 Tariff refunds (4) (42,406) — (42,406) — Other (5) — — — (375) Adjusted EBITDA $ 151,967 $ 150,153 $ 273,460 $ 279,974 (1)Excludes amortization of deferred financing costs, which is included as part of interest (income) expense, net. (2)Represents loss on debt extinguishment in connection with the June 2026 refinancing of our 2016 Term Loan Facility and 2016 ABL Facility. (3)Represents non-cash charges related to stock-based compensation programs, which vary from period to period depending on the timing of awards and forfeitures. (4)Represents IEEPA tariff refunds recognized in cost of sales and associated SG&A expenses. Statutory interest on tariff refunds is included within interest (income) expense, net in the table above. (5)Other adjustments include amounts management does not consider indicative of our core operating performance. The amount for the twenty-six weeks ended June 26, 2025 relates to the change in the fair value of the contingent earn-out liability. Liquidity and Capital Resources Liquidity is provided primarily by cash flows from operations and our $800.0 million 2026 ABL Facility. Unrestricted liquidity as of June 25, 2026 was $942.4 million, consisting of $320.6 million in cash and cash equivalents and $621.8 million immediately available for borrowing under the 2026 ABL Facility without violating any covenants thereunder. Our liquidity is generally not seasonal. Our primary cash needs are for merchandise inventories, payroll, store rent, and other operating expenses and capital expenditures associated with opening new stores and remodeling existing stores as well as information technology, e-commerce, store support center, and distribution center infrastructure. We also use cash for the payment of taxes and interest and, as applicable, share repurchases and acquisitions. We expect that cash generated from operations together with cash on hand, the availability of borrowings under our 2026 Credit Facilities, and if necessary, additional funding through other forms of external financing, will be sufficient to meet liquidity requirements, anticipated capital expenditures, discretionary share repurchases, and payments due under our 2026 Credit Facilities for the next twelve months and the foreseeable future. Total capital expenditures in fiscal 2026 are planned to be between approximately $240 million to $275 million and are expected to be funded primarily by cash generated from operations. Our capital needs may change in the future due to changes in our business, new opportunities that we choose to pursue, or other factors. We currently expect the following for capital expenditures in fiscal 2026 (projected amounts are based on the gross costs that we expect to accrue for these investments on the Condensed Consolidated Balance Sheets in fiscal 2026, which may include amounts incurred but not yet settled in cash during the period): •invest approximately $140 million to $165 million to open 20 warehouse-format stores, relocate stores, and begin construction on stores opening after fiscal 2026; •invest approximately $60 million to $65 million in existing stores and new and existing distribution centers; and •invest approximately $40 million to $45 million in information technology infrastructure, e-commerce, and other store support center initiatives. 23 Table of Contents On April 23, 2026, the Company’s Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $400.0 million of the Company’s common stock. Repurchases will be made at the Company’s discretion and will depend on a variety of factors, including business, economic, and market conditions. The share repurchase program has no expiration date and does not obligate the Company to repurchase any shares under the program. As of June 25, 2026, the Company had remaining authorization under the share repurchase program of $334.3 million. For additional information related to the Company’s share repurchase program, refer to Note 6, “Stockholders’ Equity” to our condensed consolidated financial statements included in this Quarterly Report. Cash Flow Analysis A summary of our operating, investing, and financing activities is shown in the following table: Twenty-six Weeks Ended in thousands June 25, 2026 June 26, 2025 Net cash provided by operating activities $ 278,447 $ 155,276 Net cash used in investing activities (136,673) (160,827) Net cash used in financing activities (70,456) (5,242) Net increase (decrease) in cash and cash equivalents $ 71,318 $ (10,793) Net Cash Provided by Operating Activities Cash provided by operating activities consists primarily of (i) net income adjusted for non-cash items, including depreciation and amortization, stock-based compensation, and deferred income taxes and (ii) changes in working capital. Net cash provided by operating activities during the twenty-six weeks ended June 25, 2026 and June 26, 2025 was $278.4 million and $155.3 million, respectively. The increase in net cash provided by operating activities was primarily driven by changes in inventory and trade accounts payable, partially offset by an increase in receivables, net. Net Cash Used in Investing Activities Investing activities typically consist primarily of capital expenditures for new store openings and existing store remodels, including leasehold improvements, racking, fixtures, vignettes, design centers, and new infrastructure and information systems. Net cash used in investing activities during the twenty-six weeks ended June 25, 2026 and June 26, 2025 was $136.7 million and $160.8 million, respectively. The decrease in net cash used in investing activities was due to a decrease in capital expenditures primarily driven by changes in the type of new store construction and store size optimization. Net Cash Used in Financing Activities Financing activities consist primarily of borrowings and related repayments under our term loan and ABL facilities, payments for repurchase of common stock, tax payments related to the vesting or exercise of stock-based compensation awards, proceeds from the exercise of stock options and our employee stock purchase program, and payments of contingent earn-out consideration. Net cash used in financing activities during the twenty-six weeks ended June 25, 2026 and June 26, 2025 was $70.5 million and $5.2 million, respectively. The increase in net cash used in financing activities was primarily driven by repurchases of common stock. Our Credit Facilities On June 24, 2026, the Company refinanced its senior secured term loan facility due February 14, 2027 with a new $200.0 million senior secured term loan facility due June 24, 2033. On June 24, 2026, the Company also refinanced its senior secured ABL facility maturing on August 4, 2027 with a new senior secured ABL facility maturing on June 24, 2031 in the same aggregate principal amount of $800.0 million. In connection with these refinancing transactions, the Company recognized a $1.3 million loss on extinguishment of debt during the thirteen weeks ended June 25, 2026. For additional information regarding the refinancing of the 2016 Term Loan Facility and 2016 ABL Facility, please refer to Note 3, “Debt” to our condensed consolidated financial statements included in this Quarterly Report. 24 Table of Contents As of June 25, 2026, total 2026 Term Loan Facility debt outstanding was $200.0 million, and no amounts were outstanding under our 2026 ABL Facility. For additional information regarding our 2026 Term Loan Facility and 2026 ABL Facility, including applicable covenants and other details, please refer to Note 3, “Debt” to our condensed consolidated financial statements included in this Quarterly Report. Credit Ratings Our credit ratings are periodically reviewed by rating agencies. As of June 25, 2026, our Standard & Poor’s issuer credit rating of BB with a stable outlook and Moody’s issuer credit rating of Ba3 with a stable outlook remain unchanged from December 25, 2025. These ratings and our current credit condition affect, among other things, our ability to access new capital. Negative changes to these ratings may result in more stringent covenants and higher interest rates under the terms of any new debt. Our credit ratings could be lowered or rating agencies could issue adverse commentaries in the future, which could have a material adverse effect on our business, financial condition, results of operations, and liquidity. In particular, a weakening of our financial condition, including an increase in our leverage or decrease in our profitability or cash flows, could adversely affect our ability to obtain necessary funds, result in a credit rating downgrade or change in outlook, or otherwise increase our cost of borrowing. U.S. Tariffs and Global Economy The current geopolitical environment, particularly related to existing and potential changes in global trade and tariffs, has created uncertainty surrounding the future state of the global economy and related impacts to our supply chain. In 2025, the U.S. government imposed significant additional tariffs on products from most countries where we source products. On February 20, 2026, the U.S. Supreme Court invalidated tariffs imposed under the authority of IEEPA. On March 4, 2026, the U.S. Court of International Trade ordered CBP to begin refunding all tariffs imposed under IEEPA. On April 20, 2026, CBP launched a formal process for submitting IEEPA refund claims, through which the Company filed its refund claims. As of June 25, 2026, the Company had received approximately $7 million in tariff refund payments. Subsequent to June 25, 2026, the Company has received substantially all expected IEEPA tariff refunds. For additional information regarding these tariff refunds, please refer to Note 5, “Commitments and Contingencies” to our condensed consolidated financial statements included in this Quarterly Report. As a result of the Supreme Court IEEPA ruling, the U.S. government has implemented and continues working to implement new tariffs using other authorities to maintain continuity in its tariff policy. While the elimination of IEEPA tariffs has had a favorable impact on gross margin, the imposition of additional tariffs may offset such benefits and could adversely affect our financial results. Furthermore, the impact of increased tariffs on the economy, as well as the broader geopolitical environment, including tensions in the Middle East, have and in the future may negatively impact consumer demand for our products, which may also have an adverse impact on sales. Critical Accounting Policies and Estimates Our consolidated financial statements have been prepared in accordance with GAAP, which requires management to make estimates and assumptions that affect reported amounts. The estimates and assumptions are based on historical experience and other factors management believes to be reasonable. These estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. For a description of our critical accounting policies and estimates, refer to Part II, Item 7, “Critical Accounting Policies and Estimates” in our Annual Report. There have been no material changes to our critical accounting policies and estimates as disclosed in our Annual Report. See Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” to our condensed consolidated financial statements included in this Quarterly Report, which describes recent accounting pronouncements adopted by us.