RESULTS OF OPERATIONS: SECOND QUARTER 2026 VERSUS SECOND QUARTER 2025 Net Sales. Consolidated net sales for the second quarter of 2026 decreased by $6.6 million or 1%, when compared with the second quarter of 2025. Automotive net sales for the second quarter of 2026 were $560.2 million, a decrease compared with automotive net sales of $578.1 million in the second quarter of 2025. This reflects lower global light vehicle production and a 10% decrease in total mirror unit shipments in the second quarter of 2026, compared to the second quarter of 2025. The below table represents the Company's auto-dimming mirror unit shipments for the three months ended June 30, 2026, and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % Change 2026 2025 % Change North American Interior Mirrors 2,349 2,221 6% 4,621 4,470 3% North American Exterior Mirrors 1,627 1,524 7% 3,028 2,895 5% Total North American Mirror Units 3,976 3,746 6% 7,649 7,365 4% International Interior Mirrors 3,928 5,313 (26)% 8,438 10,453 (19)% International Exterior Mirrors 2,511 2,517 —% 5,182 5,300 (2)% Total International Mirror Units 6,439 7,830 (18)% 13,620 15,753 (14)% Total Interior Mirrors 6,277 7,534 (17)% 13,059 14,923 (12)% Total Exterior Mirrors 4,138 4,041 2% 8,210 8,194 —% Total Auto-Dimming Mirror Units 10,416 11,575 (10)% 21,269 23,118 (8)% Note: Percent change and amounts may not total due to rounding. Premium Audio Product net sales increased during the second quarter of 2026 to $51.7 million compared to $44.5 million in the second quarter of 2025. Other net sales were $39.4 million in the second quarter of 2026, compared to $35.2 million in the second quarter of 2025, an increase of 12%. Other net sales for the second quarter of 2026 included security and access control sales of $2.7 million, an increase of $2.5 million over the second quarter of 2025, primarily generated from the Company's BioConnect subsidiary acquired on July 1, 2025. Dimmable aircraft window sales increased during the second quarter of 2026 to $6.5 million, compared to $4.0 million in the same quarter of last year. Fire protection sales were $8.3 million in the second quarter of 2026, compared to $8.1 million in the same quarter of last year. Cost of Goods Sold. For the second quarter of 2026, the Company's consolidated gross margin was 37.0% compared to 34.2% in the same quarter last year. The quarter over quarter increase in the gross margin resulted primarily from approximately $18 million of IEEPA tariff reimbursements received during the quarter, that reduced cost of goods sold as well as favorable product mix, which was partially offset by commodity price increases and the reduction in overall sales levels compared to the second quarter of last year. The Company recognized refunds of tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") during the second quarter of 2026. As of June 30, 2026, the Company had received approximately $38 million of IEEPA tariff reimbursements, of which approximately $18 million was recorded as a reduction of cost of goods sold. Since the inception of the IEEPA tariffs, the Company has directly paid approximately $42 million of such tariffs, excluding amounts incurred indirectly through suppliers, which was partially offset by approximately $5 million of recoveries from customers. The Company continues to evaluate and pursue tariff refund opportunities where appropriate; however, the availability, amount, and timing of any additional refunds remain uncertain and are subject to ongoing legal, regulatory, and administrative developments. Operating Expenses. Consolidated operating expenses were $99.7 million in the second quarter of 2026, compared to $106.8 million in the second quarter of 2025. The quarter over quarter decrease was primarily due to prior year severance costs. On a non-GAAP basis, adjusted operating expenses were $99.3 million in the second quarter of 2026, 31 compared to $97.5 million in the second quarter of 2025, when excluding the impact of acquisition related costs, severance costs, and purchase price step-up charges in each of the quarters, for comparability. Engineering, research and development expenses ("E, R&D") for the second quarter of 2026 decreased by $2.2 million, when compared with the second quarter of 2025, primarily due to lower engineering related professional fees. Selling, general and administrative expenses ("S, G & A") increased by $1.5 million for the second quarter of 2026, compared to the second quarter of 2025. S, G & A was approximately 8% of net sales in the second quarter of 2026, compared to 7% in the second quarter of 2025. Other (Loss) Income, Net. Total Other loss, net for the second quarter of 2026 was $4.5 million, when compared with total Other loss, net, of $3.0 million for the second quarter of 2025. The quarter over quarter increase in Other loss was driven by an impairment charge of $9.4 million related to one of the Company's technology investments and an increase in credit loss reserves related to loans receivable of $2.9 million each, during the second quarter of 2026 partially offset by higher investment income and gains on asset sales. Provision for Income Taxes. The effective tax rate was 16.5% for, and an income tax expense of $22.6 million was recorded in, the second quarter of 2026, compared to an effective tax rate of 17.2% for, and an income tax expense of $19.8 million recorded in, the same quarter of 2025. Generally, effective tax rates for the Company differ from statutory federal income tax rates due to provisions for state and local income taxes, the FDDEI deduction, and research and development tax credits. Net Income Attributable to Gentex Corporation. Net income attributable to Gentex for the second quarter of 2026 was $114.7 million, an increase of 19% compared to net income attributable to Gentex of $96.0 million in the second quarter of 2025. Non-GAAP consolidated net income attributable to Gentex was $122.9 million in the second quarter of 2026, compared to $110.9 million in the second quarter of 2025, when adjusting for the impact of impairment charges, acquisition related costs, severance costs, and inventory purchase price step-up charges in each of the quarters, for comparability. Earnings Per Share Attributable to Gentex Corporation. The Company had earnings per diluted share attributable to Gentex for the second quarter of 2026 of $0.54, which compared to earnings per diluted share attributable to Gentex of $0.43 for the second quarter of 2025. Quarter over quarter earnings per diluted share attributable to Gentex were also positively impacted by the increase in sales and improved profitability of the Company, partially offset by other losses incurred in the second quarter of 2026. On a non-GAAP basis, adjusted earnings per diluted share were $0.58 for the second quarter of 2026, compared to $0.50 for the second quarter of 2025, excluding the impact of impairment charges, acquisition related costs, severance costs, and inventory purchase price step-up charges in each of the quarters, for comparability. SIX MONTHS ENDED JUNE 30, 2026 VERSUS SIX MONTHS ENDED JUNE 30, 2025 On April 1, 2025, the Company completed its acquisition of VOXX. As such VOXX results were only consolidated with the Company's for the last three months of the six months ended June 30, 2025. During the six months ended June 30, 2026, VOXX's results have been included for the entire period. Net Sales. Net sales for the six months ended June 30, 2026, increased by $92.1 million or 7%, when compared with the same period in 2025, despite light vehicle production that declined 2% in the Company's primary markets period over period. The increase was primarily driven by the inclusion of VOXX results for the full six-month period in 2026, compared to only three months in the comparable 2025 period. Automotive net sales declined $1.0 million or 0.1%, when comparing the six months ended June 30, 2026 to the same period in 2025. Sales during the six months ended June 30, 2026, were negatively impacted by lower sales into the China market, as well as lower sales in Europe due to vehicle mix and certain customer-specific product challenges. There was an 8% decrease in automotive mirror unit shipments in the six months ended June 30, 2026, to 21.3 million units, compared with 23.1 million units in the same period in 2025, which was driven by a 12% period over period decrease in interior auto-dimming mirror unit shipments. VOXX automotive net sales contributed $27.8 million as a result of being included in the consolidated Company results for the full year to date period. Premium Audio Product net sales increased to $103.6 million for the six months ended June 30, 2026, from $44.5 million for the six months ended June 30, 2025. This increase was primarily attributable to the timing of the VOXX acquisition, which occurred on April 1, 2025. Accordingly, the six months ended June 30, 2025 included Premium Audio Product net sales only for the period from April 1, 2025 through June 30, 2025, and did not include comparable sales for the three months ended March 31, 2025. Premium Audio Products also generated positive operating income during the six months ended June 30, 2026, reflecting the continued benefits of integration activities, operating improvements, and cost management initiatives implemented following the VOXX acquisition. 32 Other net sales were $82.2 million for the six months ended June 30, 2026, compared to $48.1 million in the same period of 2025, an increase of 71% (due in part to the inclusion of VOXX sales for the entire six month period, compared to only three months being included in the same prior year period). Other net sales for the six months ended June 30, 2026, included biometric product sales of $5.7 million, primarily generated from the Company's BioConnect subsidiary acquired on July 1, 2025. Fire protection sales were $17.1 million in the six months ended June 30, 2026, compared to $14.8 million in the same period of last year. Dimmable aircraft window sales increased during the six months ended June 30, 2026 to $14.9 million, compared to $8.9 million in the same period of last year. Cost of Goods Sold. As a percentage of net sales, cost of goods sold decreased to 64.6% for the six months ended June 30, 2026, versus 66.2% in the same period last year. The improvement in the gross margin for the six months ended June 30, 2026 was driven by tariff refunds, purchasing cost reductions, improved product mix, and operational efficiencies. The Company recognized refunds of tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") during the second quarter of 2026. As of June 30, 2026, the Company had received approximately $38 million of IEEPA tariff reimbursements, of which approximately $18 million was recorded as a reduction of cost of goods sold. Since the inception of the IEEPA tariffs, the Company has directly paid approximately $42 million of such tariffs, excluding amounts incurred indirectly through suppliers, which was partially offset by approximately $5 million of recoveries from customers. The Company continues to evaluate and pursue tariff refund opportunities where appropriate; however, the availability, amount, and timing of any additional refunds remain uncertain and are subject to ongoing legal, regulatory, and administrative developments. Operating Expenses. Total operating expenses were $204.6 million in the six months ended June 30, 2026, an increase of 10% or $19.1 million, compared to $185.5 million for the same period in 2025. The increase was primarily attributable to the acquisition of VOXX, which contributed approximately $18.9 million of additional operating expenses as a result of being included in the Company's consolidated results for the full six-month period in 2026, compared to only three months in the comparable 2025 period. The increase also included $2.8 million of impairment charges and severance expenses of $1.0 million. E, R & D for the six months ended June 30, 2026 increased by $3.5 million, compared to the same period in 2025, primarily due to increased staffing costs, engineering-related professional fees, and the acquisition of VOXX, which was completed on April 1, 2025. As a result, VOXX-related research and development expenses were included in the Company's consolidated results for the full six-month period in 2026, compared to only three months in the comparable 2025 period. . S, G & A for the six months ended June 30, 2026 increased $21.4 million to $99.8 million, when compared to $78.4 million for the same period in 2025. S, G & A was approximately 8% of net sales in the six months ended June 30, 2026, and approximately 6% of net sales in the same period in 2025. S, G & A increased on a period over period basis primarily due to the VOXX acquisition, as VOXX was included in the Company's operations for the entire six month year to date period, compared to only three months of the same prior year six month period. Total Other (Loss) Income, Net. Total other loss, net, for the six months ended June 30, 2026, was $10.1 million, compared to a net loss of $2.4 million for the same period last year. During the six months ended June 30, 2026, the total other loss, net, included impairments of $12.2 million related to two of the Company's technology investments, as well as credit loss reserves of $5.0 million related to loans receivable. In comparison, the six months ended June 30, 2025, included a loss of $6.2 million resulting from a loss due to impairment of one of the Company's technology investments. Provision for Income Taxes. The effective tax rate was 16.6% for the six months ended June 30, 2026, compared to 16.8% for the same period of 2025. Generally, effective tax rates for the Company differ from statutory federal income tax rates, due to provisions for state and local income taxes, the FDDEI deduction, and research and development tax credits. Net Income Attributable to Gentex Corporation. Net income attributable to Gentex Corporation for the six months ended June 30, 2026 increased by $22.2 million or 12% to $213.1 million, compared to $190.5 million in the same period last year. The increase in net income for the six months ended June 30, 2026, was primarily the result of higher income from operations partially offset by higher operating expenses compared to the same prior period. Earnings Per Share Attributable to Gentex Corporation. The Company had earnings per diluted share attributable to Gentex for the six months ended June 30, 2026 of $1.00, compared to earnings per diluted share of $0.85 for the six months ended June 30, 2025. NON-GAAP FINANCIAL MEASURES: Financial information for the three and six months ended June 30, 2026 is provided in accordance with GAAP. In addition, the Company believes that it is useful for the three and six months ended June 30, 2026 to provide certain non-GAAP measures, including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Income from Operations, Adjusted Other (Loss) Income, Adjusted Net Income Attributable to Gentex Corporation, and 33 Adjusted Earnings per Share, with the adjustments set forth in the "Reconciliation of Non-GAAP Measures" table below. This non-GAAP financial information allows investors to evaluate current performance in the Company's business in relation to historical performance by excluding the impact of certain inventory purchase price step-up adjustment, impairment charges, acquisition related costs, and severance costs set forth in the table below. Beginning in the first quarter of 2026, the Company revised its non-GAAP presentation to include Adjusted Other (Loss) Income. As a result, prior period non-GAAP measures presented herein have been revised to conform to current presentation. Management believes the revised presentation enhances period over period comparability and provides investors with a more consistent review of Company performance. These revisions affect only the presentation of non-GAAP measures and do not affect the Company's previously reported GAAP results. The Company believes that the presentation of these non-GAAP financial measures provides insight into the Company's core performance and trends with respect to the same. Management of the Company similarly uses such non-GAAP financial measures in assessing the business internally. A reconciliation of Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Income from Operations, Adjusted Other (Loss) Income, Adjusted Net Income Attributable to Gentex Corporation, and Adjusted Earnings per Share to the most directly comparable GAAP measures is provided in the "Reconciliation of non-GAAP Measures" tables below. Like all non-GAAP financial measures, these non-GAAP measures are intended to supplement, not to replace, GAAP measures. All non-GAAP financial measures are subject to inherent limitations because not all of the expenses required by GAAP are included. 34 Reconciliation of Non-GAAP Measures (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Gross Profit - GAAP 240,997,727 225,290,903 469,624,641 417,024,490 Inventory purchase price step-up adjustments pursuant to ASC 805 $ — 2,498,442 — 2,498,442 Adjusted Gross Profit - (Non-GAAP) $ 240,997,727 $ 227,789,345 $ 469,624,641 $ 419,522,932 Gross Margin - GAAP 37.0 % 34.2 % 35.4 % 33.8 % Adjusted Gross Margin - (Non-GAAP) 37.0 % 34.6 % 35.4 % 34.0 % Operating Expenses - GAAP $ 99,659,333 $ 106,770,768 $ 204,626,328 $ 185,517,249 Less: Impairment Charge - Intangible Assets — — 2,800,000 — Acquisition Related Costs — 2,473,051 — 2,473,051 Severance Costs 362,871 6,784,136 1,085,413 9,673,248 Adjusted Operating Expenses - (Non-GAAP) $ 99,296,462 $ 97,513,581 $ 200,740,915 $ 173,370,950 Income from Operations - GAAP $ 141,338,394 $ 118,520,135 $ 264,998,313 $ 231,507,241 Less: Inventory purchase price step-up adjustments pursuant to ASC 805 — 2,498,442 — 2,498,442 Impairment Charge - Intangible Assets — — 2,800,000 — Acquisition Related Costs — 2,473,051 — 2,473,051 Severance Costs 362,871 6,784,136 1,085,413 9,673,248 Adjusted Income from Operations - (Non-GAAP) $ 141,701,265 $ 130,275,764 $ 268,883,726 $ 246,151,982 Other (Loss) Income - GAAP $ (4,509,704) $ (3,049,996) $ (10,122,061) $ (2,409,520) Less: Impairment Charge - Technology Investment (9,423,773) (6,182,000) (12,163,239) (6,182,000) Adjusted Other (Loss) Income - (Non-GAAP) $ 4,914,069 $ 3,132,004 $ 2,041,178 $ 3,772,480 Adjusted Net Income and Adjusted Earnings per Share: Adjusted Net Income Attributable to Gentex Corporation and Adjusted Earnings per Share are also presented as supplemental measures of the Company's performance for the same reasons set forth above. Adjusted Net Income is defined as Net Income adjusted for inventory purchase price step-up adjustment, impairment charges, acquisition related costs and severance costs during the second quarter of 35 2026 and 2025, as applicable. Adjusted Earnings per Share is defined as Adjusted Net Income divided by weighted average diluted shares outstanding. Reconciliation of Non-GAAP Measures (continued) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net Income Attributable to Gentex Corporation - GAAP $ 114,689,417 $ 96,039,584 $ 213,144,560 $ 190,913,629 Inventory purchase price step-up adjustments pursuant to ASC 805, net of tax — 2,068,710 — 2,077,779 Impairment Charges - Intangible Assets, net of tax — — 2,335,618 — Acquisition Related Costs, net of tax — 2,047,686 — 2,056,663 Severance Costs, net of tax 302,816 5,617,265 905,396 8,044,561 Impairment Charges - Technology Investment, net of tax 7,864,154 5,118,696 10,145,956 5,141,136 Adjusted Net Income Attributable to Gentex Corporation - (Non-GAAP) $ 122,856,387 $ 110,891,941 $ 226,531,530 $ 208,233,768 Adjusted Earnings Per Share: Basic $ 0.58 $ 0.50 $ 1.06 $ 0.92 Diluted $ 0.58 $ 0.50 $ 1.06 $ 0.92 36 FINANCIAL CONDITION: The Company's cash and cash equivalents as of June 30, 2026 were $233.4 million, an increase of $87.8 million, compared to $145.6 million as of December 31, 2025. The increase was primarily due to cash flows from operations, including increases in accounts payable and accrued liabilities, partially offset by cash outflows related to share repurchases, dividend payments, capital expenditures, and investment purchases during the six months ended June 30, 2026. Short-term investments as of June 30, 2026 were $9.4 million, an increase from $5.4 million as of December 31, 2025, and long-term investments were $238.5 million as of June 30, 2026, down from $273.0 million as of December 31, 2025. Accounts receivable as of June 30, 2026 increased approximately $17.8 million compared to December 31, 2025, primarily due to the timing of customer payments during the six months ended June 30, 2026. Inventories as of June 30, 2026 were $519.0 million, compared to $516.3 million as of December 31, 2025, primarily due to an increase in work-in-process inventory at June 30, 2026. Accounts payable as of June 30, 2026 decreased approximately $0.7 million to $248.3 million, compared to December 31, 2025, primarily driven by timing of payments within the period. Accrued liabilities as of June 30, 2026 increased approximately $18.4 million compared to December 31, 2025, primarily due to an increase in income taxes payable. Cash flow from operating activities for the six months ended June 30, 2026 increased $7.0 million to $321.7 million, compared with $314.6 million during the same period last year, primarily due to changes in working capital. Operating cash flow for the first six months of 2026 was the highest first-half operating cash flow in the Company's history. The Company continues to benefit from strong profitability, disciplined working capital management, and cash generation, which supported ongoing investments in growth initiatives, share repurchases, and dividend payments during the period. Capital expenditures for the six months ended June 30, 2026 were approximately $36.2 million, compared with approximately $67.8 million for the same period last year. The decrease was in part due to the timing of completion and commencement of projects. The Company believes its existing and planned facilities are suitable, adequate, and have sufficient capacity to support current operations and anticipated near-term business needs. The Company continues to evaluate its longer-term facility requirements as part of its ongoing strategic planning process. Based on current product mix, the Company estimates it has annual manufacturing capacity of approximately 42 million to 45 million interior automatic-dimming mirror units and 19 million to 22 million exterior mirror units. The Company continually evaluates equipment capacity and invests in additional equipment as needed to support customer demand and future growth. Management believes that current working capital, long-term investments, internally generated cash flow, available borrowing capacity under its Credit Agreement, and overall creditworthiness will be sufficient to fund anticipated operating, investing, and financing needs for the foreseeable future, including existing contractual obligations and commitments. The following is a summary of working capital and long-term investments: June 30, 2026 December 31, 2025 Working Capital $ 825,814,209 $ 740,891,499 Fixed Income Long-Term Investments 103,069,593 108,145,410 Total $ 928,883,802 $ 849,036,909 The Company has a previously announced share repurchase plan under which the Board of Directors has authorized the repurchase of shares of the Company's common stock, which remains a part of the broader publicly disclosed capital allocation strategy. Future share repurchases may vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including, but not limited to, the market price of the stock, anti-dilutive effect of repurchases, and available cash). During the three and six months ended June 30, 2026, the Company repurchased 2,696,740 and 5,949,436 shares respectively. The Company has 29,912,872 shares remaining under the plan as of June 30, 2026, as is further detailed in Part II, Item 2 of this Form 10-Q. 37 BUSINESS UPDATE During the second quarter of 2026, the Company continued to execute on strategic growth initiatives across its Automotive Products and Premium Audio segments. More than 75% of the Company's automotive product launches during the quarter included advanced-feature content, led by HomeLink®, Full Display Mirror® ("FDM"), Driver Monitoring Systems ("DMS"), In-Cabin Monitoring Systems ("ICMS"), and advanced exterior mirror programs. FDM adoption continued to expand globally through new vehicle platform launches. First-half 2026 FDM shipments remained consistent with the Company's previously communicated expectation of year-over-year growth of approximately 200,000 to 400,000 units. The Company also expanded shipments of its DMS and ICMS technologies through new vehicle launches with BMW and Kia and continued to advance discussions with additional customers. Within the Premium Audio segment, the Company continued integration activities following the acquisition of VOXX and made progress toward previously established profitability objectives through operational improvement initiatives, cost management efforts, and product innovation. During the quarter, Klipsch and Onkyo introduced several new products, while the VOXX and PAC businesses continued to develop new product categories and customer relationships intended to support future growth. The Company also continued advancing plans for a manufacturing facility in Morocco to support increasing customer demand for regional production capabilities in Europe. During the quarter, the Company signed a letter of intent, selected a site location, and continued development activities toward a targeted start of production in 2028. The Company remains focused on innovation, operational efficiency, quality, gross margin expansion, operating expense management, and disciplined capital allocation. Investments in emerging technologies and product categories, including dimmable visors and sunroofs, fourth-generation FDM, DMS and ICMS technologies, advanced manufacturing capabilities, and other market expansion initiatives, are expected to support future growth opportunities. In addition, the Company continued to advance its electronics contract manufacturing initiative. Increased interest in localized manufacturing has generated opportunities to leverage the Company's electronics manufacturing expertise. The Company currently manufactures between 40 million and 50 million electronic modules annually for customers across the automotive, fire protection, aerospace, and medical device industries. The Company remains engaged with prospective customers regarding advanced electronics manufacturing opportunities and expects to continue development activities related to potential future program awards. PRODUCT UPDATE Mirror Systems In 2024, the United Nations Economic Commission for Europe ("UN ECE") established the Task Force on Glare Prevention ("TF-GP") to evaluate the impact of glare from vehicle headlamps on road safety and to consider potential regulatory and technical recommendations related to glare mitigation. The task force is assessing the prevalence and effects of headlamp glare and developing recommendations intended to improve driver visibility and safety. The Company believes its auto-dimming rearview mirror technologies may be well-positioned to address certain glare-reduction objectives that could result from future industry standards or regulatory developments Camera Systems Gentex's Full Display Mirror® (FDM) continues to be a key contributor to revenue and remains one of the Company's most successful advanced vision products. FDM combines a traditional auto-dimming rearview mirror with an integrated digital display and camera system, allowing drivers to switch between a conventional reflective mirror and a live video view from a rear-facing camera. This dual-mode functionality provides a wider, less obstructed field of vision while maintaining the familiarity and safety benefits of a traditional mirror. The ability to seamlessly revert to mirror mode remains an important feature for both customer preference and vehicle safety requirements. Since its initial production launch in 2015, FDM has evolved to include additional imaging and display capabilities. In 2020, the Company introduced Digital Video Recording (DVR) functionality, enabling simultaneous recording from forward- and rear-facing cameras. In 2025, Gentex launched its next-generation FDM platform featuring Dynamic View Assist, which uses higher-resolution imaging and advanced software to automatically optimize the displayed view based on driving conditions. Features include dynamic view expansion, reverse-view enhancement, and picture-in-picture functionality designed to improve driver awareness and usability. Building on its expertise in optics, cameras, displays, and image processing, Gentex has also developed camera-based visibility solutions that extend beyond rear vision applications. These systems can integrate video feeds from multiple vehicle-mounted cameras, including cameras housed within exterior mirrors, to provide enhanced rearward and sideward visibility. As vehicle architectures continue to evolve and regional regulations increasingly permit camera- 38 based visibility systems, Gentex remains well-positioned to support a range of customer requirements with both traditional mirror-based and camera-enabled solutions. The Company's Driver Monitoring Systems (DMS) and In-Cabin Monitoring Systems (ICMS) continue to progress in line with our long-term growth expectations. These technologies utilize advanced camera and sensing systems to monitor driver attention, occupant presence, and in-cabin activity in support of vehicle safety objectives and emerging regulatory requirements. During the second quarter of 2026, we began shipping DMS and ICMS products on new vehicle programs with BMW and Kia, while continued shipments to Rivian, Volvo, and Polestar contributed to year-over-year revenue growth. We continue to expand our customer base and believe these technologies represent meaningful opportunities for long-term growth as in-cabin sensing adoption increases across the automotive industry. While camera-based visibility technologies are expected to gain broader adoption over time, we believe mirrors remain a highly effective, reliable, and cost-efficient solution for many applications. Nevertheless, we continue to invest in camera, imaging, sensing, and display technologies to support evolving customer requirements and emerging vehicle architectures. As adoption of camera-based systems, advanced driver assistance technologies, and automated driving features continues to increase, competition within these markets is expected to grow. Connected Car HomeLink® remains the automotive industry's leading vehicle-to-home automation solution and is one of the Company's longest-standing and most widely adopted products. Integrated into the vehicle, HomeLink® enables drivers to conveniently operate garage doors, security gates, home lighting, and other radio-frequency-controlled devices through in-vehicle controls. Its broad compatibility, ease of use, and proven reliability have contributed to widespread adoption across a diverse range of vehicle platforms and manufacturers. Building on the success of HomeLink®, the Company introduced HomeLink Connect®, a smartphone-enabled platform that expands vehicle-to-home connectivity through cloud-based integration. HomeLink Connect® allows users to trigger customized home automation functions directly from the vehicle, including control of smart locks, security systems, thermostats, lighting, and other connected devices. By leveraging smartphone and cloud connectivity, the platform provides automakers with a flexible and secure approach to home automation without requiring integration of third-party software into vehicle systems. In 2021, Volkswagen became the first automaker to launch a Bluetooth®-enabled mirror integrated with HomeLink Connect® functionality. The Company has also expanded its connectivity portfolio through its Integrated Toll Module® (ITM®), a vehicle-integrated tolling solution developed in partnership with TransCore. ITM® enables motorists to access electronic tolling networks without the need for a traditional windshield-mounted transponder, allowing toll collection functionality to be seamlessly incorporated into the vehicle. The Company's mirror-mounted solution simplifies travel across tolling networks while supporting interoperability across transportation systems in North America. Today, ITM® is featured on multiple Audi platforms as well as the Mercedes-Benz EQS. In recognition of its innovation and commercial success, ITM® received an Automotive News PACE Award in 2020. The Company continues to invest in advanced biometric technologies designed to enhance vehicle security, personalization, and connected services. Its biometric authentication platform utilizes iris recognition technology to securely identify vehicle occupants and enable personalized vehicle settings, including mirror positions, seating configurations, infotainment preferences, and climate controls. The technology also has potential applications in vehicle access, start authorization, tolling transactions, and future mobility services. Over time, the Company intends to leverage biometric authentication across multiple product platforms, including HomeLink® and HomeLink Connect®, to further enhance convenience, security, and personalization for vehicle occupants. As vehicles become increasingly connected and software-defined, the Company believes its expertise in electronics, sensing, connectivity, and integrated vehicle systems positions it to address evolving customer requirements while expanding opportunities beyond its traditional mirror product portfolio. Dimmable Products The Company's dimmable glass technologies support both aerospace and automotive applications. The Company's variable dimmable window technology is currently featured on the Boeing 787 Dreamliner family and has also been selected for the Boeing 777X and Airbus A350 programs. Production shipments for the Boeing 777X began in 2019, while Airbus commenced production of aircraft equipped with the Company's optional dimmable window technology on the A350 platform in 2021. The Company continues to engage with aircraft manufacturers regarding additional opportunities for its dimmable window technology and related aerospace applications. These programs demonstrate the Company's ability to leverage its expertise in electro-optical technologies across multiple transportation markets. The Company continues to expand its portfolio of dimmable glass technologies beyond aerospace and traditional automotive mirror applications. During 2026, the Company was awarded its first production program for its Dimmable 39 Visor technology, with start of production currently expected in 2027. The product leverages the Company's electrochromic technology to reduce glare while maintaining driver visibility and represents a new application of the Company's core dimmable glass expertise. The Company also continues to advance development of its Large Area Device ("LAD") technologies for automotive glazing applications, including panoramic roof and other large-area dimmable glass solutions. Current development efforts remain focused on product performance, durability, and manufacturing scalability as the Company works toward future commercialization opportunities Medical In 2020, the Company unveiled an innovative lighting technology for medical applications that was co-developed with Mayo Clinic. This new lighting concept represents the collaboration of a global, high-technology electronics company with a world leader in health care. The Company's new intelligent lighting system combines ambient room lighting with camera-controlled, adaptive task lighting to optimize illumination for surgical and patient-care environments. The Company continues to further develop and work on the intelligent medical lighting system in order to assess system performance and work toward obtaining any necessary approvals. In November 2023, in the ordinary course of business, the Company acquired certain technology assets from eSight. The technology acquired provides the most advanced and versatile low-vision smart glasses available for those with visual impairments and is compatible with more than 20 eye conditions including Macular Degeneration, Diabetic Retinopathy, and Stargardt disease. Biometric Products The Company continues to expand its presence in the biometric authentication market through strategic acquisitions and investments that leverage its expertise in optics, imaging, sensing, and software technologies. Biometric solutions are increasingly being adopted across automotive, security, healthcare, aerospace, and enterprise applications to enhance security, improve user convenience, and enable personalized experiences. In 2024, the Company acquired GalvanEyes, LLC, the managing partner and 50% owner of the BioCenturion joint venture. BioCenturion develops biometric authentication solutions designed to secure physical and digital environments through advanced identity verification technologies. The business possesses a substantial intellectual property portfolio, including more than 100 granted and pending patents, supporting secure, high-speed, touchless authentication across multiple industries and use cases. The Company's acquisition of VOXX International on April 1, 2025, included a majority ownership interest in EyeLock®, a leader in iris biometric authentication technology. Following the subsequent acquisition of the remaining EyeLock® interest in August 2025, the Company obtained full ownership of both EyeLock® and BioCenturion. These acquisitions provide the Company with access to a robust portfolio of biometric technologies and intellectual property that can be applied across its automotive, aerospace, medical, and security markets. The Company believes iris recognition remains one of the most secure and accurate forms of biometric authentication and offers significant opportunities for future product integration and expansion. In July 2025, the Company further strengthened its biometric platform through the acquisition of BioConnect, a provider of multi-modal biometric authentication and identity management solutions. BioConnect serves customers across a variety of industries, offering secure access control solutions for both physical facilities and digital environments. The acquisition expands the Company's software and identity management capabilities and complements its existing biometric technologies. The Company believes the combination of biometric hardware, software, and identity management solutions positions it to participate in the growing demand for secure authentication technologies across a broad range of industries. As digital security requirements continue to evolve, the Company intends to leverage these capabilities to develop new applications and enhance existing products through the integration of advanced biometric authentication and identity management technologies. Fire Protection During 2025, the Company began shipments of its PLACE® product line. PLACE® is a suite of advanced smoke and carbon monoxide alarms designed to enhance residential safety through room-specific functionality and mobile application connectivity. The product line incorporates an industry-first low-frequency sounder intended to improve alarm effectiveness for certain populations, including children, deep sleepers, and individuals with hearing impairments, and is designed to support evolving residential safety standards and code requirements. The Company believes the PLACE® 40 product portfolio expands its presence in the residential safety market while leveraging its long-standing expertise in fire protection technologies. Premium Audio Products As a result of the VOXX acquisition completed on April 1, 2025, the Company expanded its portfolio of consumer technology, premium audio, and connected home products. The acquired product lines complement the Company's existing businesses and provide opportunities to further expand its presence in adjacent consumer and residential technology markets. Following the acquisition of VOXX International Corporation on April 1, 2025, the Company continues to integrate and expand its premium audio, consumer technology, and connected home product offerings. During the first quarter of 2026, the Company's premium audio brands, including Klipsch®, Onkyo®, and Integra®, launched several new products that were featured at CES 2026, including The Fives®, The Sevens®, and The Nines® powered speaker systems. During the second quarter of 2026, the Company's premium audio brands continued to introduce new products across multiple categories. Klipsch launched products including limited-edition offerings such as the kO-R2 and Odyssey edition Detroit Bluetooth speaker, as well as the Rebellion bookshelf loudspeaker within its Heritage Series portfolio. Onkyo introduced the Muse high-power amplifier and limited-edition 80th Anniversary Creator Series powered monitors. The Company believes these product introductions reflect its continued focus on innovation, product development, and brand expansion across its premium audio portfolio as it works to realize the strategic and financial benefits of the VOXX acquisition. OTHER Automotive revenues represented approximately 86% of the Company's total revenue during the six months ended June 30, 2026, consisting of interior and exterior electrochromic automatic-dimming rearview mirrors and other automotive electronics. The Company continues to experience changes in regional vehicle production and customer demand patterns, including ongoing competitive pressures and lower production levels within certain international markets, particularly China. The Company has been, is being, and will continue to be impacted by tariffs, trade regulatory actions, and changes in international trade policies as further explained below. The Company continues to experience pricing pressure from automotive customers and competitors, in addition to tariff increases, raw material cost increases, labor cost increases, and logistics cost increases, which will continue to cause downward pressure on its sales and profit margins. The Company works continuously to offset these tariff costs, supply chain issues, and inflationary pressures with engineering and purchasing cost reductions, productivity improvements, increases in unit sales volume, and negotiations with customers to reduce the impact of the same, but there is no assurance the Company will be successful in doing so in the future. Because the Company sells its products throughout the world, and automotive manufacturing is highly dependent on economic conditions, the Company is affected by uncertain economic conditions that reduce demand for its products, including the current inflationary environment and tariffs. The Company is likewise affected by industry-wide parts shortages and global supply constraints and labor shortages. The Company believes that its patents and trade secrets provide it with a competitive advantage in dimmable devices, electronics, and other features that it offers for the automotive, premium audio, fire protection, aerospace, medical, consumer electronics, and access and control, and biometrics industries. Claims of patent infringement, however, can be costly and time-consuming to address. To that end, the Company obtains intellectual property rights in the ordinary course of business to strengthen its intellectual property portfolio and to minimize risks of infringement. The Company does not have any significant off-balance sheet arrangements or commitments that have not been recorded in its Unaudited Condensed Consolidated Financial Statements. 41 OUTLOOK The Company's light vehicle production forecasts for the third quarter of 2026 and full years 2026 and 2027 are based on the mid-July 2026 Mobility Global outlook for North America, Europe, Japan/Korea, and China (see table below). Based on this outlook, global light vehicle production is expected to decline approximately 2% in the third quarter of 2026 compared to the same prior-year period and approximately 3% for the full year 2026 compared to 2025. While global light vehicle production is currently expected to remain relatively flat in 2027, the Company anticipates continued weakness in its primary automotive markets of North America, Europe, and Japan/Korea. Any forecasted growth in global vehicle production is expected to be driven primarily by emerging markets, including China and other developing regions. Forecasted vehicle production volumes for the third quarter of 2026 and calendar years 2026 and 2027 are presented in the table below. Light Vehicle Production (per S&P Global Mobility mid-July light vehicle production forecast) (in Millions) Region Q3 2026 Q3 2025 % Change Calendar Year 2027 Calendar Year 2026 Calendar Year 2025 2027 vs 2026 % Change 2026 vs 2025 % Change North America 3.87 3.97 (3) % 15.02 15.06 15.27 — % (1) % Europe 3.85 3.87 (1) % 16.88 16.90 17.05 — % (1) % Japan and Korea 2.92 2.93 — % 11.42 11.95 12.07 (4) % (1) % China 8.11 8.36 (3) % 31.93 31.58 33.10 1 % (5) % Total Light Vehicle Production 18.75 19.13 (2) % 75.25 75.49 77.49 — % (3) % Based on actual results for the first six months of 2026, the updated Mobility Global light vehicle production forecast, and the Company's current expectations for its Automotive, Premium Audio, and Other product categories, the Company is updating certain elements of its full-year 2026 guidance, as outlined below. The updated guidance reflects the anticipated impact of all known tariffs in effect as of July 24, 2026. 2026 Annual Guidance (as of July 24, 2026) •Consolidated Revenue: $2.65 – $2.75 billion (no change) •Gross Margin: 34.5% – 35.5% (previously 34% - 35%) •Operating Expenses (excluding severance and impairments): $405 – $415 million (previously $410 - $420m) •Tax Rate: 16% – 17% (previously 16% - 18%) •Capital Expenditures: $115 – $125 million (previously $125 - $140 million) •Depreciation & Amortization: $100 – $110 million (no change) Based on the mid‑July 2026 Mobility Global light‑vehicle production forecast and the Company’s expectations for Automotive, Premium Audio, and Other Product sales, the Company continues to expect calendar-year 2027 revenue to range between $2.80 billion and $2.90 billion. Ongoing uncertainties remain, including: prolonged and intensifying trade wars, including the impacts of tariffs already in place, and potential additional future tariffs, trade restrictions, and retaliatory measures; the conflict involving Iran; the Ukraine-Russia war; the Israel-Hamas war; light vehicle production levels; impacts of regulation changes; automotive plant shutdowns; vehicle sales rates, especially in Europe, Asia and North America; OEM strategies and cost pressures; supply chain constraints: customer inventory management and the impact of potential automotive customer (including their Tier 1 suppliers) and supplier bankruptcies; etc., all of which are disrupting and will further disrupt shipments to customers, disrupt global capital flows, and heighten market volatility. In accordance with the previously announced share repurchase plan, the Company will consider the appropriateness of continuing to repurchase additional shares of common stock in the future in support of the capital allocation strategy, but share repurchases will vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including the market price of the stock, anti-dilutive effect of repurchases, and available cash). As of June 30, 2026, the Company had 29.9 million shares remaining available for repurchase under the previously announced share repurchase plan. 42 CRITICAL ACCOUNTING POLICIES: The preparation of the Company’s consolidated condensed financial statements contained in this report, which have been prepared in accordance with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates these estimates. Estimates are based on historical experience and/or on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that may not be readily apparent from other sources. Historically, actual results have not been materially different from the Company’s estimates. However, actual results may differ from these estimates under different assumptions or conditions. The Company has identified critical accounting policies used in determining estimates and assumptions in the amounts reported in its Management’s Discussion and Analysis of Financial Condition and Results of Operations herein and in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025.