We are exposed to financial market risks, including changes in interest rates and currency exchange rates. To mitigate these risks, we may utilize derivative financial instruments, among other strategies. We do not use derivative financial instruments for speculative purposes. Interest Rate Risk The exposure to market risk for changes in interest rates relates primarily to our variable rate debt obligations and one variable rate operating lease. We have used interest rate swap agreements and forward swaps to reduce our exposure to changes in interest rates. We enter into these arrangements with counterparties that are significant financial institutions with whom we generally have other financial arrangements. We are exposed to credit risk should these counterparties not be able to perform their obligations. The following table is a summary of our interest rate swap agreements as of June 30, 2026: Notional Amount Fair Value Effective Date Expiration Date Fixed Rate Floating Rate (Unaudited) (In thousands) $ 52,287 $ 2,506 7/15/2022 7/15/2032 2.86 % 1 Month SOFR 87,500 (110 ) 8/1/2024 8/1/2026 4.36 % 1 Month SOFR As of June 30, 2026, we had $827.3 million of variable rate debt obligations, of this amount, $687.5 million is not fixed through interest rate swaps. If Secured Overnight Funding Rate (“SOFR”) were to increase 100 basis points, the increase in interest expense on the variable rate debt would decrease future earnings and cash flows by $5.5 million annually (after consideration of the effect of the above derivative contracts). Certain senior mortgages have an anticipated repayment date and a maturity date. If these senior mortgages are not repaid by the anticipated repayment date the interest rate on these mortgages would increase from the current fixed rate. We are using the anticipated repayment date for our maturity schedule. Additionally, our insurance subsidiaries’ fixed income investment portfolios expose us to interest rate risk. This interest rate risk is the price sensitivity of a fixed income security to changes in interest rates. As part of our insurance companies’ asset and liability management, actuaries estimate the cash flow patterns of our existing liabilities to determine their duration. These outcomes are compared to the characteristics of the assets that are currently supporting these liabilities assisting management in determining an asset allocation strategy for future investments that management believes will mitigate the overall effect of interest rates. We use derivatives to hedge our equity market exposure to indexed annuity products sold by our Life Insurance company. These contracts earn a return for the contract holder based on the change in the value of the S&P 500 index between annual index point dates. We buy and sell listed equity and index call options and call option spreads. The credit risk is with the party in which the options are written. The net option price is paid up front and there are no additional cash requirements or additional contingent liabilities. These contracts are held at fair market value on our balance sheet. As of June 30, 2026 and March 31, 2026, these derivative hedges had a net market value of $5.3 million and $8.9 million, respectively, with notional amounts of $266.6 million and $310.1 million, respectively. Of these derivative instruments, $11.2 million and $26.5 million are included in Investments, other and are offset by $5.9 million and $17.6 million, which are included in Accounts payable and accrued expenses as of June 30, 2026 and March 31, 2026, respectively on the consolidated balance sheets. Although the call options are employed to be effective hedges against our policyholder obligations from an economic standpoint, they do not meet the requirements for hedge accounting under GAAP. Accordingly, the call options are marked to fair value on each reporting date with the change in fair value, plus or minus, included as a component of net investment and interest income. The change in fair value of the call options includes the gains or losses recognized at the expiration of the option term and the changes in fair value for open contracts. 60 Foreign Currency Exchange Rate Risk The exposure to market risk for changes in foreign currency exchange rates relates primarily to our Canadian business. Approximately 5.5% and 5.3% of our revenue was generated in Canada during the first three months of fiscal 2027 and 2026, respectively. The result of a 10% change in the value of the U.S. dollar relative to the Canadian dollar would not be material to net income. We typically do not hedge any foreign currency risk since the exposure is not considered material. Cautionary Statements Regarding Forward-Looking Statements This Quarterly Report contains “forward-looking statements” regarding future events and our future results of operations. We may make additional written or oral forward-looking statements from time to time in filings with the SEC or otherwise. We believe such forward-looking statements are within the meaning of the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such statements may include, but are not limited to: •the risk associated with potential future pandemics or similar events on system members or customers; •the impact of the economic environment on demand for our products and the cost and availability of debt and capital; •estimates of capital expenditures; •plans for future operations, products or services, financing needs, and strategies; •our perceptions of our legal positions and anticipated outcomes of government investigations and pending litigation against us; •liquidity and the availability of financial resources to meet our needs, goals and strategies; •plans for new business, storage occupancy, growth rate assumptions, pricing, costs, and access to capital and leasing markets; •the impact of our compliance with environmental laws and cleanup costs; •the impact of any future legislation or regulatory guidance on our tax position; •our beliefs regarding our sustainability practices; •our used vehicle disposition strategy; •the sources and availability of funds for our rental equipment and self-storage expansion and replacement strategies and plans; •our plan to expand our U-Haul storage affiliate program; •that additional leverage can be supported by our operations and business; •the availability of alternative vehicle manufacturers; •the availability and economics of electric vehicles for our rental fleet; •our estimates of the residual values of our equipment fleet; •our plans with respect to off-balance sheet arrangements; •our plans to continue to invest in the U-Box program; •our ability to expand our breadth and reach of the U-Box program; •the impact of interest rate and foreign currency exchange rate changes on our operations; •the sufficiency of our capital resources; •the sufficiency of capital of our insurance subsidiaries; 61 •inflationary pressures and/or imposition of tariffs that may challenge our ability to maintain or improve upon our operating margin; •our belief that we have the financial resources needed to meet our business plans; •our belief that we will maintain a high level of real estate capital expenditures in fiscal 2027; •expectations regarding the potential impact to our information technology infrastructure and on our financial performance and business operations of technology, cybersecurity or data security breaches, including any related costs, fines or lawsuits, and our ability to continue ongoing operations and safeguard the integrity of our information technology infrastructure, data, and employee, customer and vendor information, as well as assumptions relating to the foregoing; •our ability to increase transaction volume and improve pricing, product, and utilization for self-moving equipment rentals; •our ability to maintain or increase adequate levels of new investment for our rental equipment fleet; •our ability to complete current projects, increase occupancy in our existing portfolio of locations, and acquire new locations; •our ability to expand our Life Insurance segment in the senior market; •our ability to grow our agency force, expand our product offerings, and pursue business acquisition opportunities in our Life Insurance segment; •our belief that fiscal 2027 investments will be funded largely through debt financing, external lease financing, private placement and cash from operations; and •our plan to expand owned storage properties and our belief that such development projects will be funded through a combination of internally generated funds, corporate debt and with borrowings against existing properties as they operationally mature. The words “believe,” “expect,” “anticipate,” “plan,” “may,” “will,” “could,” “estimate,” “project” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could significantly affect results include, without limitation, •the degree and nature of our competition; •our leverage; •general economic conditions; fluctuations in our costs to maintain and update our fleet and facilities; •the limited number of manufacturers that supply our rental trucks; •our ability to effectively hedge our variable interest rate debt; •that we are controlled by a small contingent of stockholders; •fluctuations in quarterly results and seasonality; •changes in, and our compliance with, government regulations, particularly environmental regulations and regulations relating to motor carrier operations; •outcomes of litigation; •our reliance on our third party dealer network; •liability claims relating to our rental vehicles and equipment; •our ability to attract, motivate and retain key employees; 62 •reliance on our automated systems and the internet; •our credit ratings; •our ability to recover under reinsurance arrangements; and •other factors described in our Annual Report on Form 10-K in Item 1A, Risk Factors, and in this Quarterly Report or the other documents we file with the SEC. The above factors, as well as other statements in this Quarterly Report and in the Notes to Consolidated Financial Statements, could contribute to or cause such risks or uncertainties, or could cause our stock price to fluctuate dramatically. Consequently, the forward-looking statements should not be regarded as representations or warranties by us that such matters will be realized. We assume no obligation to update or revise any of the forward-looking statements, whether in response to new information, unforeseen events, changed circumstances or otherwise, except as required by law.