(dollars in thousands except per share data) Overview Biglari Holdings Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance and reinsurance, licensing and media, restaurants, and oil and gas. Biglari Holdings is founded and led by Sardar Biglari, Chairman and Chief Executive Officer of the Company. Biglari Holdings’ management system combines decentralized operations with centralized financial decision-making. Operating decisions for the various business units are made by their respective managers. All major investment and capital allocation decisions are made for the Company and its subsidiaries by Mr. Biglari. Net earnings (loss) are disaggregated in the table that follows. Amounts are recorded after deducting income taxes. Second Quarter First Six Months 2026 2025 2026 2025 Operating businesses: Restaurant $ 6,234 $ 4,555 $ 8,272 $ 6,744 Insurance 2,001 1,399 4,886 2,600 Oil and gas 5,714 849 6,621 9,147 Brand licensing (62) (198) 54 (465) Interest expense (4,192) (656) (8,473) (1,349) Total operating businesses 9,695 5,949 11,360 16,677 Corporate and other (5,090) (3,530) (9,638) (6,819) Investment partnership gains (losses) 27,927 46,194 17,676 6,768 Investment gains (losses) 7,394 2,318 5,997 1,030 Net earnings (loss) $ 39,926 $ 50,931 $ 25,395 $ 17,656 24 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) Restaurants Our restaurant businesses, which include Steak n Shake and Western Sizzlin, comprise 428 company-operated and franchise restaurants as of June 30, 2026. Steak n Shake Western Sizzlin Company- operated Franchise Partner Traditional Franchise Company- operated Franchise Total Total stores as of December 31, 2025 131 179 94 3 28 435 Corporate stores transitioned (4) 4 — — — — Net restaurants opened (closed) (1) — (4) (1) (1) (7) Total stores as of June 30, 2026 126 183 90 2 27 428 Total stores as of December 31, 2024 146 173 107 3 29 458 Corporate stores transitioned (2) 2 — — — — Net restaurants opened (closed) (1) (1) (7) — — (9) Total stores as of June 30, 2025 143 174 100 3 29 449 As of June 30, 2026, eight of the 126 company-operated Steak n Shake stores were closed. Of the eight locations, Steak n Shake plans to reopen two locations and sell or lease six locations. 25 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) Restaurant operations are summarized below. Second Quarter First Six Months 2026 2025 2026 2025 Revenue Net sales $ 45,648 $ 46,858 $ 85,995 $ 88,473 Franchise partner fees 23,141 20,150 43,682 37,289 Franchise royalties and fees 3,350 3,128 6,476 6,617 Other revenue 2,588 1,875 4,720 3,981 Total revenue 74,727 72,011 140,873 136,360 Restaurant cost of sales Cost of food 15,203 33.3 % 14,167 30.2 % 27,868 32.4 % 26,631 30.1 % Labor costs 13,749 30.1 % 14,020 29.9 % 26,607 30.9 % 27,460 31.0 % Occupancy and other 12,175 26.7 % 11,852 25.3 % 24,117 28.0 % 23,706 26.8 % Total cost of sales 41,127 40,039 78,592 77,797 Selling, general and administrative General and administrative 12,348 16.5 % 12,776 17.7 % 24,184 17.2 % 24,704 18.1 % Marketing 4,539 6.1 % 4,865 6.8 % 9,966 7.1 % 8,097 5.9 % Other expenses (income) 92 0.1 % (1,207) (1.7) % 247 0.2 % (913) (0.7) % Total selling, general and administrative 16,979 22.7 % 16,434 22.8 % 34,397 24.4 % 31,888 23.4 % Impairments — — % 1,251 1.7 % — — % 1,251 0.9 % Depreciation and amortization 6,958 9.3 % 6,612 9.2 % 13,988 9.9 % 13,102 9.6 % Interest on finance leases and obligations 1,400 1,240 2,757 2,573 Earnings before income taxes 8,263 6,435 11,139 9,749 Income tax expense 2,029 1,880 2,867 3,005 Contribution to net earnings $ 6,234 $ 4,555 $ 8,272 $ 6,744 Cost of food, labor costs, and occupancy and other costs are expressed as a percentage of net sales. General and administrative, marketing, other expenses, impairments, and depreciation are expressed as a percentage of total revenue. Net sales for the second quarter and first six months of 2026 were $45,648 and $85,995, respectively, representing a decrease of $1,210 or 2.6% and $2,478 or 2.8%, compared to the second quarter and first six months of 2025, respectively. Total revenue decreased due to fewer company-operated units in 2026 compared to 2025. Steak n Shake’s domestic same-store sales increased 11.9% during the second quarter of 2026. For company-operated units, sales to the end customer are recorded as revenue generated by the Company, but for franchise partner units, only our share of the restaurant’s profits, along with certain fees, are recorded as revenue. Because we derive most of our revenue from our share of the profits, revenue will decline as we transition from company-operated units to franchise partner units. Fees generated by our franchise partners were $23,141 during the second quarter of 2026, as compared to $20,150 during the second quarter of 2025. Franchise partner fees were $43,682 and $37,289 during the first six months of 2026 and 2025, respectively. Franchise partner same-store sales increased 14.5%. 26 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) The franchise royalties and fees generated by the traditional franchising business were $3,350 during the second quarter of 2026, as compared to $3,128 during the second quarter of 2025. Franchise royalties and fees during the first six months of 2026 were $6,476 as compared to $6,617 during the first six months of 2025. There were 90 Steak n Shake traditional units open on June 30, 2026, as compared to 100 units open on June 30, 2025. The cost of food at company-operated units during the second quarter of 2026 was $15,203 or 33.3% of net sales, as compared to $14,167 or 30.2% of net sales during the second quarter of 2025. The cost of food at company-operated units during the first six months of 2026 was $27,868 or 32.4% of net sales, as compared to $26,631 or 30.1% of net sales during the first six months of 2025. The increase was primarily because of Steak n Shake materially enhancing the quality of its food ingredients. The labor costs at company-operated restaurants during the second quarter of 2026 were $13,749 or 30.1% of net sales, as compared to $14,020 or 29.9% of net sales in the second quarter of 2025. Labor costs at company-operated restaurants during the first six months of 2026 were $26,607 or 30.9% of net sales, as compared to $27,460 or 31.0% of net sales in 2025. Labor costs expressed as a percentage of net sales remained consistent with 2025. General and administrative expenses during the second quarter of 2026 were $12,348 or 16.5% of total revenue, as compared to $12,776 or 17.7% of total revenue in the second quarter of 2025. General and administrative expenses during the first six months of 2026 were $24,184 or 17.2% of total revenue, as compared to $24,704 or 18.1% of total revenue in the first six months of 2025. General and administrative expenses in 2026 remained consistent with 2025. The Company recorded no impairment charges in the second quarter and first six months of 2026 and recorded $1,251 in the first six months of 2025 related to underperforming stores. Interest on obligations under leases was $2,757 during 2026 versus $2,573 during 2025. To better convey the performance of the franchise partnership model, the table below shows the underlying sales, cost of food, labor costs, and other restaurant costs of the franchise partners. We believe the unaudited franchise partner information is useful to readers, as they have a direct effect on Steak n Shake’s profitability. Second Quarter First Six Months 2026 2025 2026 2025 Revenue Net sales and other $ 107,214 $ 89,856 $ 203,238 $ 170,173 Restaurant cost of sales Cost of food $ 34,444 32.1 % $ 26,719 29.7 % $ 63,819 31.4 % $ 50,138 29.5 % Labor costs 26,456 24.7 % 23,256 25.9 % 51,107 25.1 % 44,746 26.3 % Occupancy and other 19,372 18.1 % 17,937 20.0 % 39,560 19.5 % 34,602 20.3 % Total cost of sales $ 80,272 $ 67,912 $ 154,486 $ 129,486 The Company’s consolidated financial statements do not include data in the table above. Figures are shown for information purposes only. Insurance We view our insurance businesses as possessing two activities: underwriting and investing. Underwriting decisions are the responsibility of the unit managers, whereas investing decisions are the responsibility of our Chairman and CEO, Sardar Biglari. Our business units are operated under separate local management. Biglari Holdings’ insurance operations consist of First Guard, Southern Pioneer, and Biglari Reinsurance. 27 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) Underwriting results of our insurance operations are summarized below. Second Quarter First Six Months 2026 2025 2026 2025 Underwriting gain attributable to: First Guard $ 1,617 $ 2,091 $ 3,188 $ 3,306 Southern Pioneer 943 (857) 2,255 (1,359) Other — — 96 — Pre-tax underwriting gain 2,560 1,234 5,539 1,947 Income tax expense 538 259 1,164 409 Net underwriting gain $ 2,022 $ 975 $ 4,375 $ 1,538 Earnings of our insurance operations are summarized below. Second Quarter First Six Months 2026 2025 2026 2025 Premiums written $ 17,524 $ 17,403 $ 36,032 $ 36,425 Premiums earned $ 17,693 $ 17,166 $ 35,494 $ 34,931 Insurance losses 10,550 11,672 20,506 23,677 Underwriting expenses 4,583 4,260 9,449 9,307 Pre-tax underwriting gain 2,560 1,234 5,539 1,947 Other income and expenses Investment income 717 839 1,368 1,676 Other income (expenses) (301) (280) (690) (293) Total other income 416 559 678 1,383 Earnings before income taxes 2,976 1,793 6,217 3,330 Income tax expense 975 394 1,331 730 Contribution to net earnings $ 2,001 $ 1,399 $ 4,886 $ 2,600 Insurance premiums and other on the consolidated statement of earnings includes premiums earned, investment income, other income, and commissions. 28 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) First Guard First Guard is a direct underwriter of commercial truck insurance, primarily selling physical damage and nontrucking liability insurance to truckers. First Guard’s insurance products are marketed primarily through direct response methods via the Internet or by telephone. First Guard’s cost-efficient direct response marketing methods enable it to be a low-cost insurer. A summary of First Guard’s underwriting results follows. Second Quarter First Six Months 2026 2025 2026 2025 Amount % Amount % Amount % Amount % Premiums written $ 9,195 $ 9,098 $ 18,241 $ 18,307 Premiums earned $ 9,195 100.0 % $ 9,098 100.0 % $ 18,241 100.0 % $ 18,307 100.0 % Insurance losses 5,992 65.2 % 4,624 50.8 % 11,899 65.2 % 10,906 59.6 % Underwriting expenses 1,586 17.2 % 2,383 26.2 % 3,154 17.3 % 4,095 22.4 % Total losses and expenses 7,578 82.4 % 7,007 77.0 % 15,053 82.5 % 15,001 82.0 % Pre-tax underwriting gain $ 1,617 $ 2,091 $ 3,188 $ 3,306 First Guard produced an underwriting gain in the second quarter and first six months of 2026. Its underwriting gain decreased $474 in the second quarter of 2026 compared to 2025. Southern Pioneer Southern Pioneer underwrites garage liability and commercial property insurance, as well as homeowners and dwelling fire insurance. A summary of Southern Pioneer’s underwriting results follows. Second Quarter First Six Months 2026 2025 2026 2025 Amount % Amount % Amount % Amount % Premiums written $ 8,329 $ 8,305 $ 17,791 $ 18,118 Premiums earned $ 8,498 100.0 % $ 8,068 100.0 % $ 17,253 100.0 % $ 16,624 100.0 % Insurance losses 4,558 53.6 % 7,048 87.4 % 8,607 49.9 % 12,771 76.8 % Underwriting expenses 2,997 35.3 % 1,877 23.3 % 6,391 37.0 % 5,212 31.4 % Total losses and expenses 7,555 88.9 % 8,925 110.7 % 14,998 86.9 % 17,983 108.2 % Pre-tax underwriting gain (loss) $ 943 $ (857) $ 2,255 $ (1,359) Southern Pioneer produced an underwriting gain in the first six months of 2026 of $2,255, representing an increase of $3,614 compared to 2025. 29 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) A summary of net investment income attributable to our insurance operations follows. Second Quarter First Six Months 2026 2025 2026 2025 Interest, dividends and other investment income: First Guard $ 392 $ 424 $ 724 $ 850 Southern Pioneer 263 402 578 791 Biglari Reinsurance 62 13 66 35 Pre-tax investment income 717 839 1,368 1,676 Income tax expense 151 176 287 352 Net investment income $ 566 $ 663 $ 1,081 $ 1,324 We consider investment income as a component of our aggregate insurance operating results. However, we consider investment gains and losses, whether realized or unrealized, as non-operating. Oil and Gas A summary of revenues and earnings of our oil and gas operations follows. Second Quarter First Six Months 2026 2025 2026 2025 Oil and gas revenues $ 11,260 $ 7,498 $ 20,396 $ 17,428 Oil and gas production costs 4,147 2,880 8,071 6,926 Depreciation, depletion and accretion 2,391 3,111 5,265 6,367 General and administrative expenses 2,447 1,184 3,772 2,487 Total cost and expenses 8,985 7,175 17,108 15,780 Gain on sale of properties 4,803 794 4,803 10,117 Earnings before income taxes 7,078 1,117 8,091 11,765 Income tax expense 1,364 268 1,470 2,618 Contribution to net earnings $ 5,714 $ 849 $ 6,621 $ 9,147 Our oil and gas business is highly dependent on oil and natural gas prices. It is expected that the prices of oil and gas commodities will remain volatile, which will be reflected in our financial results. 30 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) Abraxas Petroleum Abraxas Petroleum operates oil and gas properties in the Permian Basin. Earnings for Abraxas Petroleum are summarized below. Second Quarter First Six Months 2026 2025 2026 2025 Oil and gas revenues $ 7,296 $ 4,161 $ 13,422 $ 10,051 Oil and gas production costs 2,321 2,095 5,055 4,541 Depreciation, depletion and accretion 821 1,777 2,120 3,710 General and administrative expenses 1,788 716 2,376 1,365 Total cost and expenses 4,930 4,588 9,551 9,616 Gain on sale of properties 4,803 794 4,803 10,117 Earnings before income taxes 7,169 367 8,674 10,552 Income tax expense 1,398 88 1,636 2,468 Contribution to net earnings $ 5,771 $ 279 $ 7,038 $ 8,084 Abraxas Petroleum’s revenue increased $3,371, or 33.5% during the first six months of 2026 compared to 2025, primarily due to an increase in prices. During the first six months of 2026 and 2025, Abraxas Petroleum recorded a gain of $4,803 and $10,117, respectively, from selling undeveloped reserves to an unaffiliated party to conduct development activities; however, Abraxas Petroleum will not be required to fund any exploration expenditures on the undeveloped properties. Southern Oil Southern Oil primarily operates oil and natural gas properties offshore in Louisiana state waters. Earnings for Southern Oil are summarized below. Second Quarter First Six Months 2026 2025 2026 2025 Oil and gas revenues $ 3,964 $ 3,337 $ 6,974 $ 7,377 Oil and gas production costs 1,826 785 3,016 2,385 Depreciation, depletion and accretion 1,570 1,334 3,145 2,657 General and administrative expenses 659 468 1,396 1,122 Total cost and expenses 4,055 2,587 7,557 6,164 Earnings (loss) before income taxes (91) 750 (583) 1,213 Income tax expense (benefit) (34) 180 (166) 150 Contribution to net earnings $ (57) $ 570 $ (417) $ 1,063 Southern Oil’s revenue decreased $403, or 5.5% during the first six months of 2026 compared to 2025. The revenue decline was primarily due to reduced production during 2026 compared to 2025. 31 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) Brand Licensing Maxim’s business lies principally in licensing and media. Earnings of operations are summarized below. Second Quarter First Six Months 2026 2025 2026 2025 Licensing and media revenue $ 3,507 $ 2,287 $ 6,768 $ 3,694 Licensing and media costs 3,335 2,421 6,209 4,072 Depreciation and amortization 228 100 419 170 General and administrative expenses 28 33 67 76 Earnings (loss) before income taxes (84) (267) 73 (624) Income tax expense (benefit) (22) (69) 19 (159) Contribution to net earnings (loss) $ (62) $ (198) $ 54 $ (465) Maxim’s revenue increased during the first half of 2026 as compared to the same period in 2025 primarily because of its digital contest business. Investment Gains and Investment Partnership Gains Investment gains net of tax for the second quarter of 2026 were $7,394 as compared to $2,318 for the second quarter of 2025. Investment gains net of tax for the first six months of 2026 were $5,997 as compared to $1,030 for the first six months of 2025. Dividends earned on investments are reported as investment income by our insurance companies. We consider investment income as a component of our aggregate insurance operating results. However, we consider investment gains and losses, whether realized or unrealized, as non-operating. Earnings (loss) from our investments in partnerships are summarized below. Second Quarter First Six Months 2026 2025 2026 2025 Investment partnership gains (losses) $ 35,637 $ 58,504 $ 22,183 $ 8,912 Tax expense (benefit) 7,710 12,310 4,507 2,144 Contribution to net earnings $ 27,927 $ 46,194 $ 17,676 $ 6,768 Investment partnership gains include gains/losses from changes in market values of underlying investments and dividends earned by the partnerships. Dividend income has a lower effective tax rate than income from capital gains. These gains and losses have caused and will continue to cause significant volatility in our periodic earnings. The investment partnerships hold the Company’s common stock as investments. The Company’s pro-rata share of its common stock held by the investment partnerships is recorded as treasury stock even though these shares are legally outstanding. Gains and losses on Company common stock included in the earnings of the partnerships are eliminated in the Company’s consolidated financial results. Investment gains and losses in 2026 and 2025 were mainly derived from our investments in equity securities and included unrealized gains and losses from market price changes during the period. We believe that investment and derivative gains/losses are generally meaningless for analytical purposes in understanding our quarterly and annual results. 32 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) Interest Expense The Company’s interest expense is summarized below. Second Quarter First Six Months 2026 2025 2026 2025 Interest expense on notes payable and other borrowings $ 5,532 $ 852 $ 11,183 $ 1,752 Tax benefit 1,340 196 2,710 403 Interest expense net of tax $ 4,192 $ 656 $ 8,473 $ 1,349 Corporate and Other Corporate expenses exclude the activities of the restaurant, insurance, brand licensing, and oil and gas businesses. Corporate and other net losses during the second quarter and first six months of 2026 were $5,090 and $9,638, respectively, compared to $3,530 and $6,819 in the second quarter and first six months of 2025, respectively. The higher corporate expenses in 2026 were primarily due to increased legal-related costs. Income Taxes Income tax expense for the second quarter of 2026 was $11,693 compared to income tax expense of $14,171 for the second quarter of 2025. Income tax expense for the first six months of 2026 was $7,342 compared to income tax expense of $6,263 for the first six months of 2025. The change in income tax expense between 2026 and 2025 is attributable to taxes on income generated by the investment partnerships. Financial Condition Consolidated cash and investments are summarized below. June 30, 2026 December 31, 2025 Cash and cash equivalents $ 68,394 $ 268,782 Investments 274,321 69,050 Fair value of interest in investment partnerships 986,368 772,585 Total cash and investments 1,329,083 1,110,417 Less: portion of Company stock held by investment partnerships (807,668) (618,310) Carrying value of cash and investments on balance sheet $ 521,415 $ 492,107 Unrealized gains/losses of Biglari Holdings’ stock held by the investment partnerships are eliminated in the Company’s consolidated financial results. 33 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) Liquidity Our balance sheet continues to maintain significant liquidity. Consolidated cash flow activities are summarized below. First Six Months 2026 2025 Net cash provided by operating activities $ 35,280 $ 57,942 Net cash used in investing activities (238,366) (27,161) Net cash provided by (used in) financing activities 2,716 (28,778) Effect of exchange rate changes on cash (18) 42 Increase (decrease) in cash, cash equivalents and restricted cash $ (200,388) $ 2,045 Cash provided by operating activities decreased by $22,662 as compared to 2025. The change was primarily attributable to lower returns on partnership investments during 2026. Cash used in investing activities increased during 2026 by $211,205 as compared to 2025 primarily due to purchases of investments which were $222,793 higher in 2026. Cash provided by financing activities increased during 2026 by $31,494 as compared to 2025. The Company had net payments on its line of credit and note payable of $8,688 offset by proceeds from the issuance of common stock of $14,920 compared to net payments on the Company’s line of credit of $26,000 in 2025. Biglari Holdings Line of Credit Biglari Holdings’ line of credit is $35,000 and matures on September 13, 2026. The line of credit includes customary covenants, as well as financial maintenance covenants. As of June 30, 2026, we were in compliance with all covenants. The balance on the line of credit was $22,500 and $27,250 on June 30, 2026 and December 31, 2025, respectively. Steak n Shake Note Payable On September 30, 2025, Steak n Shake obtained a loan of $225,000. The term loan is five years, with an interest rate fixed at 8.8% per annum, and the loan will be amortized at a rate of 3.0% per annum. The loan includes customary covenants as well as financial maintenance covenants and customary events of default. As of June 30, 2026, Steak n Shake was in compliance with all covenants. The debt is an obligation of Steak n Shake and the proceeds from the loan were distributed to Biglari Holdings. All of the debt is secured by real estate owned by Steak n Shake. Western Sizzlin Revolver Western Sizzlin’s available line of credit is $500. As of June 30, 2026 and December 31, 2025, Western Sizzlin had no debt outstanding on its revolver. Critical Accounting Policies Management’s discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. Certain accounting policies require management to make estimates and judgments concerning transactions that will be settled several years in the future. Amounts recognized in our consolidated financial statements from such estimates are necessarily based on numerous assumptions involving varying and potentially significant degrees of judgment and uncertainty. Accordingly, the amounts currently reflected in our consolidated financial statements will likely increase or decrease in the future as additional information becomes available. There have been no material changes to critical accounting policies previously disclosed in our annual report on Form 10-K for the year ended December 31, 2025. 34 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) Recently Issued Accounting Pronouncements No recently issued accounting pronouncements were applicable for this Quarterly Report on Form 10-Q. Cautionary Note Regarding Forward-Looking Statements This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In general, forward-looking statements include estimates of future revenues, cash flows, capital expenditures, or other financial items, and assumptions underlying any of the foregoing. Forward-looking statements reflect management’s current expectations regarding future events and use words such as “anticipate,” “believe,” “expect,” “may,” and other similar terminology. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Investors should not place undue reliance on the forward-looking statements, which speak only as of the date of this report. These forward-looking statements are all based on currently available operating, financial, and competitive information and are subject to various risks and uncertainties. Our actual future results and trends may differ materially depending on a variety of factors, many beyond our control, including, but not limited to, the risks and uncertainties described in Item 1A, Risk Factors of our annual report on Form 10-K and Item 1A of this report. We undertake no obligation to publicly update or revise them, except as may be required by law.