For a discussion identifying risk factors and other important factors that could cause actual results to differ materially from those anticipated, see the discussions under Part I, Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025, and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Notes to Consolidated Financial Statements” in this Quarterly Report on Form 10-Q. Except as set forth below, there have been no material changes to the Risk Factors described in Part I “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025 as filed with the SEC. Increased exposure to Broker Liability Claims. In recent years, there has been a very significant increase throughout the United States in the number of, and potential loss exposure associated with, claims asserted against freight brokers in connection with accidents involving motor carriers the freight broker has engaged and contracted with to haul a shipment. The claims asserted against freight brokers often involve claims of negligent selection of the motor carrier who was involved in the relevant accident. Within the transportation logistics industry, these matters are often referred to as “Broker Liability Claims.” On May 14, 2026, the U.S. Supreme Court issued its decision in Montgomery v. Caribe Transport II, LLC, in which the Company is not a party, holding that the Broker Liability Claim at issue fell within the “safety exception” under the FAAAA and therefore is not preempted by the FAAAA. The decision narrowed a freight broker’s ability to rely on federal preemption as a defense to Broker Liability Claims and may increase the frequency, severity and potential loss associated with such claims. Following the decision, others in our industry have faced Broker Liability Claims resulting in Nuclear Verdicts in excess of $100 million. Any Broker Liability Claim brought against the Company could result in a Nuclear Verdict or a substantial settlement, and no assurance can be given that insurance maintained by the Company or recoveries from other parties to such claims will be available or sufficient to cover any such liabilities. An increase in the frequency or severity of Broker Liability Claims, the unfavorable development of an existing Broker Liability Claim or a Nuclear Verdict or settlement in excess of available insurance could have a material adverse effect on Landstar’s business, cost of insurance and claims and its results of operations.