Hamilton Beach Brands - 10-Q quarterly report FY2026 Q2

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________________________________________________________________________________________________________________________________________________________________________________

FORM 10-Q


(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	June 30, 2026


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
						For the transition period from to

Commission File Number: 001-38214

HAMILTON BEACH BRANDS HOLDING COMPANY

(Exact name of registrant as specified in its charter)

Delaware

31-1236686

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

4421 WATERFRONT DR.

GLEN ALLEN

23060

(Address of principal executive offices)

(Zip code)

(804)

273-9777

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, Par Value $0.01 Per Share

HBB

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

☑

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

Number of shares of Class A Common Stock outstanding as of July 31, 2026: 9,858,179

Number of shares of Class B Common Stock outstanding as of July 31, 2026: 3,584,153

HAMILTON BEACH BRANDS HOLDING COMPANY

TABLE OF CONTENTS

Page Number

Part I.

FINANCIAL INFORMATION

Item 1

Financial Statements

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income (Loss)

Consolidated Statements of Cash Flows

Consolidated Statements of Changes in Equity

Notes to Unaudited Consolidated Financial Statements

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3

Quantitative and Qualitative Disclosures About Market Risk

Item 4

Controls and Procedures

Part II.

OTHER INFORMATION

Item 1

Legal Proceedings

Item 1A

Risk Factors

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3

Defaults Upon Senior Securities

Item 4

Mine Safety Disclosures

Item 5

Other Information

Item 6

Exhibits

Signatures

Part I

FINANCIAL INFORMATION

Item 1. Financial Statements

HAMILTON BEACH BRANDS HOLDING COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	JUNE 30 2026		DECEMBER 31 2025		JUNE 30 2025
	(In thousands)
Assets
Current assets
Cash and cash equivalents	$	101,469	$	47,313	$	11,338
Trade receivables, net	99,097		110,535		74,093
Inventory	115,125		133,833		160,357

Prepaid expenses and other current assets	14,434		13,052		14,318

Total current assets	330,125		304,733		260,106
Property, plant and equipment, net	25,534		30,253		33,464
Right-of-use lease assets	32,557		34,614		36,956
Goodwill	7,099		7,099		7,099

Deferred income taxes	3,520		3,607		7,513




Other non-current assets	12,451		17,318		18,666
Total assets	$	411,286	$	397,624	$	363,804
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	69,674	$	86,376	$	76,275


Accrued compensation	8,930		13,956		7,127
Accrued product returns	7,907		7,875		7,072
Lease liabilities	5,560		5,497		5,568
Other current liabilities	13,282		9,529		9,450

Total current liabilities	105,353		123,233		105,492
Revolving credit agreements	50,000		50,000		50,000
Lease liabilities, non-current	34,030		36,416		38,988
Other long-term liabilities	5,169		5,130		5,349

Total liabilities	194,552		214,779		199,829
Stockholders’ equity
Preferred stock, par value $0.01 per share	—		—		—
Class A Common stock	121		119		118
Class B Common stock	36		36		36
Capital in excess of par value	83,389		80,795		78,673
Treasury stock	(38,376)		(35,213)		(33,549)
Retained earnings	177,821		143,888		126,919
Accumulated other comprehensive loss	(6,257)		(6,780)		(8,222)
Total stockholders’ equity	216,734		182,845		163,975
Total liabilities and stockholders’ equity	$	411,286	$	397,624	$	363,804

See notes to unaudited consolidated financial statements.

Table of Contents

HAMILTON BEACH BRANDS HOLDING COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	THREE MONTHS ENDED JUNE 30				SIX MONTHS ENDED JUNE 30
	2026		2025		2026		2025
	(In thousands, except per share data)				(In thousands, except per share data)
Revenue	$	142,632	$	127,770	$	264,595	$	261,142
Cost of sales	65,136		92,639		150,907		193,240
Gross profit	77,496		35,131		113,688		67,902
Selling, general and administrative expenses	34,290		29,183		65,514		59,641


Operating profit (loss)	43,206		5,948		48,174		8,261
Interest (income) expense, net	(1,264)		121		(1,342)		49

Other (income) expense, net	(160)		(182)		(66)		(331)
Income (loss) before income taxes	44,630		6,009		49,582		8,543
Income tax expense (benefit)	10,922		1,556		12,335		2,285


Net income (loss)	$	33,708	$	4,453	$	37,247	$	6,258




Basic earnings (loss) per share	$	2.50	$	0.33	$	2.75	$	0.46




Diluted earnings (loss) per share	$	2.49	$	0.33	$	2.75	$	0.46

Basic weighted average shares outstanding	13,496		13,516		13,534		13,642
Diluted weighted average shares outstanding	13,512		13,534		13,551		13,661

See notes to unaudited consolidated financial statements.

Table of Contents

HAMILTON BEACH BRANDS HOLDING COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)


	THREE MONTHS ENDED JUNE 30				SIX MONTHS ENDED JUNE 30
	2026		2025		2026		2025
	(In thousands)				(In thousands)
Net income (loss)	$	33,708	$	4,453	$	37,247	$	6,258
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	409		2,660		119		2,987

Cash flow hedging activity	275		(1,115)		564		(1,735)

Reclassification of hedging activities into earnings	(193)		(472)		(152)		(952)

Reclassification related to pension termination activity into earnings	—		2		—		48
Reclassification of pension adjustments into earnings	(2)		5		(8)		7
Total other comprehensive income (loss), net of tax	489		1,080		523		355
Comprehensive income (loss)	$	34,197	$	5,533	$	37,770	$	6,613

See notes to unaudited consolidated financial statements.

Table of Contents

HAMILTON BEACH BRANDS HOLDING COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	SIX MONTHS ENDED JUNE 30
	2026		2025
	(In thousands)
Operating activities
Net income (loss)	$	37,247	$	6,258
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	5,406		2,518

Stock compensation expense	2,596		2,008


Other	395		(1,294)
Net changes in operating assets and liabilities:

Trade receivables	11,835		44,391
Inventory	18,274		(33,599)
Other assets	6,500		10,856
Accounts payable	(16,964)		(27,950)
Other liabilities	(3,746)		(26,961)
Net cash provided by (used for) operating activities	61,543		(23,773)
Investing activities
Expenditures for property, plant and equipment	(895)		(1,466)






Net cash provided by (used for) investing activities	(895)		(1,466)
Financing activities

Cash dividends paid	(3,314)		(3,202)
Purchase of treasury stock	(3,163)		(7,347)



Net cash provided by (used for) financing activities	(6,477)		(10,549)





Effect of exchange rate changes on cash and cash equivalents	(15)		602
Cash and cash equivalents
Increase (decrease) for the period	54,156		(35,186)

Balance at the beginning of the period	47,313		46,524
Balance at the end of the period	$	101,469	$	11,338

See notes to unaudited consolidated financial statements.

Table of Contents

HAMILTON BEACH BRANDS HOLDING COMPANY

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)


	Class A Common Stock		Class B Common Stock		Capital in Excess of Par Value		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	(In thousands, except per share data)
Balance, January 1, 2026	$	119	$	36	$	80,795	$	(35,213)	$	143,888	$	(6,780)	$	182,845
Net income (loss)	—		—		—		—		3,539		—		3,539
Issuance of common stock, net of conversions	2		—		(2)		—		—		—		—
Purchase of treasury stock	—		—		—		(1,206)		—		—		(1,206)
Share-based compensation expense	—		—		1,186		—		—		—		1,186
Cash dividends, $0.12 per share	—		—		—		—		(1,629)		—		(1,629)
Other comprehensive income (loss), net of tax	—		—		—		—		—		(1)		(1)
Reclassification adjustment to net income (loss)	—		—		—		—		—		35		35
Balance, March 31, 2026	121		36		81,979		(36,419)		145,798		(6,746)		184,769
Net income (loss)	—		—		—		—		33,708		—		33,708

Purchase of treasury stock	—		—		—		(1,957)		—		—		(1,957)
Share-based compensation expense	—		—		1,410		—		—		—		1,410
Cash dividends, $0.125 per share	—		—		—		—		(1,685)		—		(1,685)
Other comprehensive income (loss), net of tax	—		—		—		—		—		684		684
Reclassification adjustment to net income (loss)	—		—		—		—		—		(195)		(195)
Balance, June 30, 2026	$	121	$	36	$	83,389	$	(38,376)	$	177,821	$	(6,257)	$	216,734



Balance, January 1, 2025	$	115	$	36	$	76,668	$	(26,202)	$	123,863	$	(8,577)	$	165,903
Net income (loss)	—		—		—		—		1,805		—		1,805
Issuance of common stock, net of conversions	3		—		(3)		—		—		—		—
Purchase of treasury stock	—		—		—		(3,373)		—		—		(3,373)
Share-based compensation expense	—		—		1,156		—		—		—		1,156
Cash dividends, $0.115 per share	—		—		—		—		(1,585)		—		(1,585)
Other comprehensive income (loss), net of tax	—		—		—		—		—		(293)		(293)
Reclassification adjustment to net income (loss)	—		—		—		—		—		(432)		(432)
Balance, March 31, 2025	118		36		77,821		(29,575)		124,083		(9,302)		163,181
Net income (loss)	—		—		—		—		4,453		—		4,453

Purchase of treasury stock	—		—		—		(3,974)		—		—		(3,974)
Share-based compensation expense	—		—		852		—		—		—		852
Cash dividends, $0.12 per share	—		—		—		—		(1,617)		—		(1,617)
Other comprehensive income (loss), net of tax	—		—		—		—		—		1,545		1,545
Reclassification adjustment to net income (loss)	—		—		—		—		—		(465)		(465)
Balance, June 30, 2025	$	118	$	36	$	78,673	$	(33,549)	$	126,919	$	(8,222)	$	163,975

See notes to unaudited consolidated financial statements.

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HAMILTON BEACH BRANDS HOLDING COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026

(Tabular amounts in thousands, except as noted and per share amounts)

NOTE 1—Basis of Presentation and Recently Issued Accounting Standards

Basis of Presentation

Throughout this Quarterly Report on Form 10-Q and the notes to unaudited consolidated financial statements, references to “Hamilton Beach Holding”, “the Company”, “we”, “us” and “our” and similar references are to Hamilton Beach Brands Holding Company and its subsidiaries on a consolidated basis unless otherwise noted or as the context otherwise requires. Hamilton Beach Brands Holding Company is a holding company and operates through its indirect, wholly owned subsidiary, Hamilton Beach Brands, Inc., a Delaware corporation (“HBB”).

We are a leading designer, marketer and distributor of a wide range of brand name small electric household and specialty housewares appliances, and commercial products for restaurants, fast food chains, bars and hotels, and a provider of connected devices and software for home healthcare management.

Our operations are managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health.

The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Certain prior period amounts have been reclassified to conform to the current period classification. These reclassifications had no effect on the reported operating profit, net income, or stockholders’ equity.

Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the remainder of the year as our revenue typically increases during the second half of the year and peaks during the fourth quarter due to the fall holiday-selling season. Accordingly, quarter-to-quarter comparisons of our past operating results are meaningful only when comparing equivalent time periods, if at all.

We maintain a $125.0 million senior secured floating-rate revolving credit facility (the “HBB Facility”) that expires on December 13, 2029. We believe funds available from cash on hand, the HBB Facility and operating cash flows will provide sufficient liquidity to meet our operating needs and commitments arising during the next twelve months.

Recently Issued Accounting Standards Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, “Income Statement — Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40),” which requires additional information to be disclosed about specific expense categories in the notes to financial statements at interim and annual reporting periods. The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is currently evaluating the impact this ASU may have on our consolidated financial statement disclosures.

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In September 2025, the FASB issued ASU 2025-06, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40):Targeted Improvements to the Accounting for Internal-Use Software,” which modernizes previously written guidance around internal-use software costs by eliminating accounting consideration of software project development stages and provides for cost capitalization when management has authorized and committed funding to the project and that the project is considered ‘probable’ of completion and the software used to perform the function as intended, along with prescriptive disclosure requirements associated with internal-use software costs to be consistent with Subtopic 360-10, “Property, Plant and Equipment” regardless of how those costs are presented in the financial statements. The amendments are effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The amendment may be applied either retrospectively or prospectively or on a modified prospective basis prescribed by the ASU. The Company is currently evaluating the impact this ASU may have on our consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow Scope Improvements.” The update provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period. The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application. The amendments are effective for annual periods beginning after December 15, 2027, including interim periods within that annual period. The Company is currently evaluating the impact this ASU may have on our consolidated financial statement disclosures.

Accounts Payable - Supplier Finance Program

The Company has an agreement with a third-party administrator to provide an accounts payable tracking system which facilitates a participating supplier’s ability to monitor and voluntarily elect to sell payment obligations owed by the Company to the designated third-party financial institution. Participating suppliers can sell one or more of the Company’s payment obligations at their sole discretion. The Company has no economic interest in a supplier’s decision to sell one or more of its payment obligations. The Company’s rights and obligations with respect to such payment obligations, including amounts due and scheduled payment terms, are not impacted by suppliers’ decisions to sell amounts under these arrangements.

As of June 30, 2026, December 31, 2025 and June 30, 2025, the Company had $26.5 million, $29.9 million and $35.8 million, respectively, in outstanding payment obligations to the third-party financial institution that are presented in accounts payable on the Consolidated Balance Sheets. There is no requirement to provide assets pledged as security or other forms of guarantees under the agreement. The Company pays the third-party financial institution based upon the original payment terms negotiated with participating suppliers. The payment of these obligations by the Company is included in cash provided by operating activities in the Consolidated Statements of Cash Flows.

The agreement limits payment obligations owed by the Company but sold by participating suppliers to $65.0 million. Of the amounts owed by the Company referenced above that are presented in accounts payable, participating suppliers have sold $20.1 million, $21.8 million and $32.0 million, as of June 30, 2026, December 31, 2025 and June 30, 2025, respectively.

NOTE 2—Transfer of Financial Assets

The Company has an arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis. Under the terms of the agreement, the Company receives cash proceeds and retains no rights or interest and has no obligations with respect to the sold receivables. These transactions, which are accounted for as sold receivables, result in a reduction in trade receivables because the agreement transfers effective control over and risk related to the receivables to the buyer. Under this arrangement, the Company derecognized $0.0 million and $4.3 million of trade receivables during the three and six months ended June 30, 2026, respectively, $34.2 million and $66.6 million during the three and six months ended June 30, 2025, respectively, and $145.0 million during the year ended December 31, 2025. The decrease in derecognized trade receivables for the three and six months ended June 30, 2026 is due to the Company’s decision to transition away from the arrangement. The loss incurred on sold receivables in the Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025 was not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities in the Consolidated Statements of Cash Flows.

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NOTE 3—Fair Value Disclosure

The following table presents the Company’s assets and liabilities accounted for at fair value on a recurring basis:


Description	Balance Sheet Location	JUNE 30 2026		DECEMBER 31 2025		JUNE 30 2025
Assets:
Interest rate swap agreements
Current	Prepaid expenses and other current assets	$	1,151	$	831	$	864
Long-term	Other non-current assets	1,091		1,199		1,674


		$	2,242	$	2,030	$	2,538
Liabilities:



Foreign currency exchange contracts
Current	Other current liabilities	—		126		1,223
		$	—	$	126	$	1,223

The Company measures its derivatives at fair value using significant observable inputs, which is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates the Secured Overnight Financing Rate (SOFR) swap curve, foreign currency spot rates and foreign currency forward rates to value its derivatives, including its interest rate swap agreements and foreign currency exchange contracts. The Company also incorporates the effect of HBB and counterparty credit risk into the valuation.

Other Fair Value Measurement Disclosures

The carrying amounts of cash and cash equivalents, trade receivables and accounts payable approximate fair value due to the short-term maturities of these instruments.

The $125.0 million fair value of the HBB Facility, including book overdrafts, which approximate book value, was determined using current rates offered for similar obligations taking into account the Company’s credit risk, which is Level 2 as defined in the fair value hierarchy.

The Company does not hold any Level 3 assets or liabilities and there were no transfers into or out of Levels 1, 2 or 3 during the three and six months ended June 30, 2026.

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NOTE 4—Stockholders’ Equity

Capital Stock

The following table sets forth the Company’s authorized capital stock information:


	JUNE 30 2026	DECEMBER 31 2025	JUNE 30 2025

Preferred stock, par value $0.01 per share
Preferred stock authorized	5,000	5,000	5,000
Preferred stock outstanding	—	—	—
Class A Common stock, par value $0.01 per share
Class A Common authorized	70,000	70,000	70,000
Class A Common issued (1)(2)	12,083	11,870	11,821
Treasury Stock (3)	2,219	2,052	1,941
Class B Common stock, par value $0.01 per share, convertible into Class A Common stock on a one-for-one basis
Class B Common authorized	30,000	30,000	30,000
Class B Common issued (1)	3,584	3,587	3,596

(1) Class B Common converted to Class A Common were 1 and 3 shares during the three and six months ended June 30, 2026, respectively, and 5 and 7 shares during the three and six months ended June 30, 2025, respectively.

(2) The Company issued Class A Common of 18 and 210 shares during the three and six months ended June 30, 2026, respectively, and 19 and 338 shares during the three and six months ended June 30, 2025, respectively.

(3) On February 20, 2026 and February 21, 2025, a total of 14 and 39 mandatory cashless-exercise-award shares of Class A Common, respectively, were surrendered to the Company by the participants of our Executive Long-Term Equity Incentive Compensation Plan (the “Incentive Plan”) in order to satisfy the participants’ tax withholding obligations with respect to shares of Class A Common awarded under the Incentive Plan.

Stock Repurchase Program: In November 2025, the Company’s Board approved a stock repurchase program for the purchase of up to $25 million of the Company’s Class A Common outstanding starting January 1, 2026 and ending December 31, 2027. This program replaced the previous stock repurchase plan that started January 1, 2024 and ended December 31, 2025. During the three and six months ended June 30, 2026, the Company repurchased 97,869 and 153,282 shares at prevailing market prices for an aggregate purchase price of $2.0 million and $2.9 million, respectively. During the three and six months ended June 30, 2025, the Company repurchased 215,297 and 356,732 shares at prevailing market prices for an aggregate purchase price of $4.0 million and $6.7 million, respectively. During the year ended December 31, 2025, the Company repurchased 467,804 shares for an aggregate purchase price of $8.3 million. As of June 30, 2026, the Company had $22.1 million remaining authorized for repurchase.

Additionally, during the six months ended June 30, 2026 and June 30, 2025, the Company withheld shares for tax payments due upon issuance of stock to employees under the Incentive Plan. During the six months ended June 30, 2026 and June 30, 2025, the Company repurchased 13,575 and 39,121 shares, respectively, for an aggregate purchase price of $0.3 million and $0.7 million, respectively, pursuant to the Incentive Plan. There were no shares repurchased pursuant to the Incentive Plan during the three months ended June 30, 2026 and June 30, 2025.

The total combined share repurchases from the stock repurchase program and the Incentive Plan during the three and six months ended June 30, 2026 was 97,869 and 166,857 shares, respectively, for an aggregate purchase price of $2.0 million and $3.2 million, respectively. The total combined share repurchases from the stock repurchase program and the Incentive Plan during the three and six months ended June 30, 2025 was 215,297 and 395,853 shares, respectively, for an aggregate purchase price of $4.0 million and $7.4 million, respectively.

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Accumulated Other Comprehensive Loss: The following table summarizes changes in accumulated other comprehensive loss by component and related tax effects for periods shown:


	Foreign Currency		Deferred Gain (Loss) on Cash Flow Hedging		Pension Plan Adjustment		Total

Balance, January 1, 2026	$	(8,365)	$	1,096	$	489	$	(6,780)
Other comprehensive income (loss)	(290)		383		—		93
Reclassification adjustment to net income (loss)	—		80		(6)		74
Tax effects	—		(133)		—		(133)
Balance, March 31, 2026	(8,655)		1,426		483		(6,746)
Other comprehensive income (loss)	409		364		—		773
Reclassification adjustment to net income (loss)	—		(254)		(2)		(256)
Tax effects	—		(28)		—		(28)
Balance, June 30, 2026	$	(8,246)	$	1,508	$	481	$	(6,257)





Balance, January 1, 2025	$	(12,279)	$	3,572	$	130	$	(8,577)
Other comprehensive income (loss)	327		(861)		—		(534)
Reclassification adjustment to net income (loss)	—		(654)		64		(590)
Tax effects	—		415		(16)		399
Balance, March 31, 2025	(11,952)		2,472		178		(9,302)
Other comprehensive income (loss)	2,660		(1,567)		—		1,093
Reclassification adjustment to net income (loss)	—		(637)		7		(630)
Tax effects	—		617		—		617
Balance, June 30, 2025	$	(9,292)	$	885	$	185	$	(8,222)

NOTE 5—Revenue

Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services, which includes an estimate for variable consideration.

The Company’s warranty program to the consumer consists generally of an assurance-type limited warranty for electric appliances, with the majority of products having a warranty of one to three years. There is no guarantee to the consumer as the Company may repair or replace, at its discretion, products returned under warranty. Accordingly, the Company determined that no separate performance obligation exists.

Most of the Company’s products are not sold with a general right of return. Subject to certain terms and conditions, however, the Company will agree to accept a portion of products sold that, based on historical experience, are estimated to be returned for reasons such as product failure and excess inventory stocked by the customer. Product returns, customer programs and incentive offerings, including special pricing agreements, price competition, promotions and other volume-based incentives are accounted for as variable consideration.

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A description of revenue sources and performance obligations for the Company are as follows:

Consumer and Commercial product revenue

Transactions with both consumer and commercial customers generally originate upon the receipt of a purchase order from a customer, which in some cases are governed by master sales agreements, specifying product(s) that the customer desires. Contracts for product revenue have an original duration of one year or less, and payment terms are generally standard and based on customer creditworthiness. Revenue from product sales is recognized at the point in time when control transfers to the customer, which is either when a product is shipped from a Company facility, or delivered to customers, depending on the shipping terms. The amount of revenue recognized varies primarily with price concessions and changes in returns. The Company offers price concessions to its customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. The Company evaluated such agreements with its customers and determined returns and price concessions should be accounted for as variable consideration.

Consumer product revenue consists of sales of small electric household and specialty housewares appliances to traditional brick and mortar and ecommerce retailers, distributors and directly to the end consumer. A majority of this revenue is in North America.

Commercial product revenue consists of sales of products for restaurants, fast-food chains, bars and hotels. Approximately two-thirds of the Company’s commercial sales are in the U.S. and the remaining is in markets across the globe.

License revenue

From time to time, the Company enters into licensing agreements which grant the right to use certain of the Company’s intellectual property (“IP”) in connection with designing, manufacturing, distributing, advertising, promoting and selling the licensees’ products during the term of the agreement. The IP that is licensed generally consists of trademarks, trade names, patents, trade dress, logos and/or products (the “Licensed IP”). In exchange for granting the right to use the Licensed IP, the Company receives a royalty payment, which is a function of (1) the total net sales of products that use the Licensed IP and (2) the royalty percentage that is stated in the licensing agreement. The Company recognizes revenue at the later of when the subsequent sales occur or when the performance obligation is satisfied over time.

Additionally, the Company enters into agreements which grant the right to use software for healthcare management. The Company receives a license payment which is recognized when the performance obligation is satisfied over time or as usage occurs based on the contract with the customer.

Lease revenue

The Company leases connected devices to specialty pharmacy networks and pharmaceutical companies and is accounted for under Accounting Standards Codification 842, Leases as operating leases.

The following table sets forth Company’s revenue on a disaggregated basis for the three and six months ended June 30:


	THREE MONTHS ENDED JUNE 30				SIX MONTHS ENDED JUNE 30
	2026		2025		2026		2025
Type of good or service:
Consumer products	$	122,201	$	109,608	$	228,321	$	226,943
Commercial products	16,296		14,643		28,221		26,935
Licensing	2,152		2,208		4,136		4,768
Leasing	1,983		1,311		3,917		2,496
Total revenues	$	142,632	$	127,770	$	264,595	$	261,142

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NOTE 6—Contingencies

The Company is involved in various legal and regulatory proceedings and claims that have arisen in the ordinary course of business, including product liability, patent infringement, environmental and other claims. Although it is difficult to predict the ultimate outcome of these proceedings and claims, the Company believes the ultimate disposition of these matters will not have a material adverse effect on the financial condition, results of operation or cash flows of the Company. Any costs that the Company estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount of such costs can be reasonably estimated. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss.

Tariff matters (IEEPA)

On February 20, 2026, the United States Supreme Court (“Court”) issued a ruling that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the U.S. President to impose tariffs. The Court’s ruling invalidated tariffs previously implemented by the U.S. Presidential Administration pursuant to IEEPA (“IEEPA Ruling”). As a result of this ruling, the Company began filing refund claims through the U.S. Customs and Border Protection’s (“CBP”) Consolidated Administration and Processing of Entries (“CAPE”) system. The Company has elected to apply a gain contingency model to account for potential recoveries of previously paid IEEPA tariffs (“IEEPA Tariff Refunds”) and any related interest received. Under this model, a gain contingency is not recognized in the consolidated financial statements until the gain is realized or realizable. Any remaining recovery, when recognized, would be reflected as a reduction of inventory to the extent the related goods remain on hand, or as a reduction of cost of sales for amounts related to goods already sold. As of June 30, 2026 the Company has received $36.5 million of IEEPA Tariff Refunds and recognized such refunds as a reduction of cost of sales in the Consolidated Statements of Operations for both the three and six months ended June 30, 2026. The Company has also received $1.2 million of interest associated with the IEEPA Tariff Refunds and recognized this within interest (income) expense, net in the Consolidated Statements of Operations for both the three and six months ended June 30, 2026.

Environmental matters

The Company is investigating or remediating historical environmental contamination at some current and former sites operated by the Company or by businesses the Company has acquired. The estimate of future investigation and remediation costs is primarily based on variables associated with site clean-up, including, but not limited to, physical characteristics of the site, the nature and extent of the contamination and applicable regulatory programs and remediation standards. The Company continues to monitor environmental matters and as of June 30, 2026, management has determined that such obligations are not material to the Company’s financial position, results of operations, or cash flows.

NOTE 7—Income Taxes

The Company’s provision for income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period.

The effective tax rate was 24.5% and 25.9% for the three months ended June 30, 2026 and 2025, respectively, and 24.9% and 26.7% for the six months ended June 30, 2026 and 2025, respectively. The lower effective tax rates in 2026 for both periods were due to changes in the jurisdictional mix of earnings and a reduction in foreign losses subject to a valuation allowance.

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NOTE 8—Segment Information

The Company’s operations are managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health. These segments are organized principally by product and service category. The Company’s reportable segments are determined based on (1) financial information reviewed by the chief operating decision maker “CODM”, (2) operational structure of the Company which is designed and managed to share resources across the entire suite of products offered by the business, and (3) the basis upon which the CODM makes resource allocation decisions. The CODM for both segments is the President and Chief Executive Officer of the Company. The CODM utilizes the segment operating profit (loss) to assess profitability and performance of actual results compared to forecasts.

The types of products and services from which each reportable segment derives its revenues are as follows:

Home and Commercial Products

Our Home and Commercial Products segment includes consumer product revenue, primarily concentrated in North America, consisting of sales of small electric household and specialty housewares appliances to traditional brick and mortar and ecommerce retailers, distributors and directly to the end consumer. Also included in this segment is commercial product revenue consisting of sales of products for restaurants, fast-food chains, bars and hotels. Approximately two-thirds of the Company’s commercial sales is in the U.S. and the remaining is in markets across the globe.

Health

Our Health segment includes lease revenue in the U.S. and globally associated with leases of connected devices to specialty pharmacy networks and pharmaceutical companies, as well as licensing revenue associated with agreements which grant customers the right to use software for healthcare management.

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The table below presents the revenues and significant expenses of the two reportable segments along with a reconciliation of segment profit (loss) to consolidated income (loss) before income taxes. Total assets by segment are not reported as the CODM does not regularly review asset information by segment.


	THREE MONTHS ENDED JUNE 30
	2026						2025
	Home and Commercial Products		Health		Total		Home and Commercial Products		Health		Total
Revenue	$	140,172	$	2,460	$	142,632	$	126,072	$	1,698	$	127,770

Less:
Cost of sales	64,579		557		65,136		92,149		490		92,639
Selling, general and administrative expenses	32,485		1,805		34,290		27,111		2,072		29,183


Segment profit (loss)	$	43,108	$	98	$	43,206	$	6,812	$	(864)	$	5,948

Reconciliation of segment profit or (loss)
Interest (income) expense, net					(1,264)						121

Other (income) expense, net					(160)						(182)

Income (loss) before income taxes					$	44,630					$	6,009


	SIX MONTHS ENDED JUNE 30
	2026						2025
	Home and Commercial Products		Health		Total		Home and Commercial Products		Health		Total
Revenue	$	259,783	$	4,812	$	264,595	$	257,900	$	3,242	$	261,142

Less:
Cost of sales	149,772		1,135		150,907		192,375		865		193,240
Selling, general and administrative expenses	62,028		3,486		65,514		55,528		4,113		59,641


Segment profit (loss)	$	47,983	$	191	$	48,174	$	9,997	$	(1,736)	$	8,261

Reconciliation of segment profit or (loss)
Interest (income) expense, net					(1,342)						49

Other (income) expense, net					(66)						(331)

Income (loss) before income taxes					$	49,582					$	8,543

Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of Operations

(Dollars in thousands, except as noted and per share data)

Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon management’s current expectations and are subject to various uncertainties and changes in circumstances. Important factors that could cause actual results to differ materially from those described in these forward-looking statements are set forth below under the heading “Forward-Looking Statements.” Accordingly, this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the financial statements and Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Our operations are managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health.

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

For a summary of the Company’s critical accounting policies, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as there have been no material changes from those disclosed in the Annual Report.

RESULTS OF OPERATIONS

The market for small electric household and specialty housewares appliances is fairly steady throughout the year; however, the Company’s revenue typically increases during the second half of the year and peaks during the fourth quarter due to the fall holiday-selling season.

Second Quarter of 2026 Compared with Second Quarter of 2025


	THREE MONTHS ENDED JUNE 30
									Increase / (Decrease)
	2026		% of Revenue		2025		% of Revenue		$ Change		% Change
Revenue	$	142,632	100.0	%	$	127,770	100.0	%	$	14,862	11.6	%
Cost of sales	65,136		45.7	%	92,639		72.5	%	(27,503)		(29.7)	%
Gross profit	77,496		54.3	%	35,131		27.5	%	42,365		120.6	%
Selling, general and administrative expenses	34,290		24.0	%	29,183		22.8	%	5,107		17.5	%


Operating profit (loss)	43,206		30.3	%	5,948		4.7	%	37,258		626.4	%
Interest (income) expense, net	(1,264)		(0.9)	%	121		0.1	%	(1,385)		(1,144.6)	%

Other (income) expense, net	(160)		(0.1)	%	(182)		(0.1)	%	22		(12.1)	%
Income (loss) before income taxes	44,630		31.3	%	6,009		4.7	%	38,621		642.7	%
Income tax expense (benefit)	10,922		7.7	%	1,556		1.2	%	9,366		601.9	%
Net income (loss)	$	33,708	23.6	%	$	4,453	3.5	%	$	29,255	657.0	%


Effective income tax rate			24.5		%										25.9		%

The following table identifies the components of the change in revenue:


	Revenue
2025	$	127,770
Increase (decrease) from:
Unit volume and product mix	9,327
Average sales price	4,039
Foreign currency	1,496
2026	$	142,632

Revenue - Revenue increased $14.9 million, or 11.6%, compared to the prior year due to higher volumes in the Company’s U.S. Consumer business reflecting recovery from the second quarter of 2025 when retailers paused buying to assess inventory levels and price increases flowing from IEEPA tariffs implemented in April 2025.

Gross profit - Gross profit margin increased to 54.3% compared to 27.5% in the prior year. The significant improvement in gross profit margin included one-time benefits related to the IEEPA Tariff Ruling. These benefits consist of IEEPA Tariff Refunds of $36.5 million, as well as continued sell-through of inventory no longer subject to IEEPA tariffs. These benefits are non-recurring and will not persist beyond the sell-through of the affected inventory. Excluding these benefits, gross profit margin would have been 26.1%.

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Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses increased $5.1 million compared to the prior year. The increase was primarily due to higher incentive related personnel costs, as the prior year reflected lower expected performance. The current period also includes $1.4 million accelerated depreciation of the Company’s legacy enterprise resource planning (ERP) system.

Interest (income) expense, net - Interest income, net was $1.3 million for the three months ended June 30, 2026, compared to interest expense, net of $0.1 million in the prior period due to interest income on IEEPA Tariff Refunds.

Other (income) expense, net - Other income, net was $0.2 million for both the three months ended June 30, 2026 and 2025.

Income tax expense (benefit) - The effective tax rate was 24.5% and 25.9% for the three months ended June 30, 2026 and 2025, respectively. The effective tax rate was lower for the three months ended June 30, 2026 due to changes in the jurisdictional mix of earnings and a reduction in foreign losses subject to a valuation allowance.

First Six Months of 2026 Compared with First Six Months of 2025


	SIX MONTHS ENDED JUNE 30
	2026		% of Revenue		2025		% of Revenue		$ Change		% Change
Revenue	$	264,595	100.0	%	$	261,142	100.0	%	$	3,453	1.3	%
Cost of sales	150,907		57.0	%	193,240		74.0	%	(42,333)		(21.9)	%
Gross profit	113,688		43.0	%	67,902		26.0	%	45,786		67.4	%
Selling, general and administrative expenses	65,514		24.8	%	59,641		22.8	%	5,873		9.8	%


Operating profit (loss)	48,174		18.2	%	8,261		3.2	%	39,913		483.1	%
Interest (income) expense, net	(1,342)		(0.5)	%	49		—	%	(1,391)		(2,838.8)	%

Other (income) expense, net	(66)		—	%	(331)		(0.1)	%	265		(80.1)	%
Income (loss) before income taxes	49,582		18.7	%	8,543		3.3	%	41,039		480.4	%
Income tax expense (benefit)	12,335		4.7	%	2,285		0.9	%	10,050		439.8	%
Net income (loss)	$	37,247	14.1	%	$	6,258	2.4	%	$	30,989	495.2	%


Effective income tax rate			24.9		%										26.7		%

The following table identifies the components of the change in revenue:


	Revenue
2025	$	261,142
Increase (decrease) from:
Unit volume and product mix	(12,052)
Average sales price	11,948
Foreign currency	3,557
2026	$	264,595

Revenue - Revenue increased $3.5 million, or 1.3%, compared to the prior year as pricing offset volume and mix pressure in the U.S. Consumer business, while growth in the Commercial and Health businesses and favorable foreign currency translation drove the overall increase.

Gross profit - Gross profit margin increased to 43.0% compared to 26.0% in the prior year. The significant improvement in gross margin included one-time benefits related to the IEEPA Tariff Ruling. These benefits consist of IEEPA Tariff Refunds of $36.5 million received in the second quarter, as well as continued sell-through of inventory no longer subject to IEEPA tariffs. These benefits are non-recurring and will not persist beyond the sell-through of the affected inventory. Excluding these benefits, gross profit margin would have been 26.9%.

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Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses increased $5.9 million compared to the prior year. The increase was primarily due to higher incentive related personnel costs, as the prior year reflected lower expected performance. The current period also includes $2.8 million accelerated depreciation of the Company’s legacy ERP system.

Interest (income) expense, net - Interest income, net was $1.3 million for the six months ended June 30, 2026, compared to interest expense, net of $49 thousand for the six months ended June 30, 2025 due to interest income on the IEEPA Tariff Refunds in the second quarter of 2026.

Other (income) expense, net - Other income, net was $0.1 million for the six months ended June 30, 2026 compared to other income, net of $0.3 million for the six months ended June 30, 2025.

Income tax expense (benefit) - The effective tax rate was 24.9% compared to 26.7% in the prior six month period. The effective tax rate was lower for the six months ended June 30, 2026 due to changes in the jurisdictional mix of earnings and a reduction in foreign losses subject to a valuation allowance.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Our cash flows are provided by dividends paid or distributions made by HBB. The only material assets held by us are the investments in our consolidated subsidiary. As a result, certain statutory limitations or regulatory or financing agreements could affect the levels of distributions allowed to be made by our subsidiary. We have not guaranteed any of the obligations of HBB.

Our principal sources of cash to fund liquidity needs are: (1) cash generated from operations and (2) borrowings available under the HBB Facility. Our primary use of funds consists of working capital requirements, operating expenses, payment of dividends, repurchase of shares, capital expenditures and payments of principal and interest on debt.

The HBB Facility expires on December 13, 2029. We believe funds available from cash on hand, the HBB Facility and operating cash flows will provide sufficient liquidity to meet our operating needs and commitments arising during the next twelve months.

The following table presents selected cash flow information:


	SIX MONTHS ENDED JUNE 30
	2026		2025
Net cash provided by (used for) operating activities	$	61,543	$	(23,773)
Net cash provided by (used for) investing activities	$	(895)	$	(1,466)
Net cash provided by (used for) financing activities	$	(6,477)	$	(10,549)

Operating activities - Net cash provided by operating activities was $61.5 million, compared to cash used of $23.8 million in the prior year, representing an increase of $85.3 million. The increase was primarily driven by the aforementioned IEEPA refunds and lower working capital mainly due to reduced inventory levels as the prior year included accelerated purchases ahead of tariff uncertainty and lower sell through. The 2025 period also included higher incentive compensation and tax payments related to the prior year.

Investing activities - Net cash used for investing activities decreased $0.6 million compared to the prior year.

Financing activities - Net cash used for financing activities decreased $4.1 million compared to the prior year due to lower share repurchases during the first six months of 2026.

Capital Resources

The obligations under the HBB Facility are secured by all of HBB’s U.S. assets. As of June 30, 2026, the borrowing base under the HBB Facility was $104.3 million and borrowings outstanding were $50.0 million. As of June 30, 2026, Excess Availability (as defined in the HBB Facility) was $54.3 million. The Company may repay outstanding debt from time to time depending on market conditions, cash flow generation, and other factors.

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The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables and inventory of HBB. As of June 30, 2026, interest on outstanding loans under the HBB Facility accrues at a per annum rate equal to, at HBB’s option, either Term Secured Overnight Financing Rate (SOFR) (as defined in the HBB Facility) plus 1.65% or the Base Rate (as defined in the HBB Facility) plus 0.00%. As of June 30, 2026, the HBB Facility requires a fee of 0.20% per annum on the unused commitment thereunder. The weighted average interest rate applicable to the HBB Facility for the six months ended June 30, 2026 was 3.26% (after giving effect to the interest rate swap agreements described below).

To reduce the exposure to changes in the market rate of interest, we have entered into interest rate swap agreements for a portion of the HBB Facility. Terms of the interest rate swap agreements require us to receive a variable interest rate and pay a fixed interest rate. We have interest rate swaps with notional values totaling $50.0 million as of June 30, 2026 at an average fixed interest rate of 1.59%.

The HBB Facility contains customary representations and warranties, events of default and covenants, including, among other things, covenants applicable to HBB and its subsidiaries limiting indebtedness, liens, investments, dispositions and restricted payments. Additionally, if Excess Availability is less than $15.0 million at any time, the HBB Facility will require that HBB maintain a minimum Fixed Charge Coverage Ratio (as defined in the HBB Facility) of 1.00 to 1.00 until Excess Availability is greater than or equal to $15.0 million for 30 consecutive days. As of June 30, 2026, we were in compliance with all applicable financial covenants in the HBB Facility.

The Company has an arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis. See Note 2 - Transfer of Financial Assets included in the unaudited consolidated financial statements contained in Part I of this Form 10-Q.

Contractual Obligations, Contingent Liabilities and Commitments

For a summary of the Company’s contractual obligations, contingent liabilities and commitments, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Contractual Obligations, Contingent Liabilities and Commitments” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as there have been no material changes from those disclosed in the Annual Report.

Off Balance Sheet Arrangements

For a summary of the Company’s off balance sheet arrangements, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Off Balance Sheet Arrangements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as there have been no material changes from those disclosed in the Annual Report.

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FORWARD-LOOKING STATEMENTS

The statements contained in this Form 10-Q that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Such risks and uncertainties include, without limitation: (1) uncertain or unfavorable global economic conditions and impacts from tariffs, inflation, rising interest rates, recessions or economic slowdowns; (2) changes in costs, including transportation costs and tariffs, of sourced products; (3) the Company’s ability to source and ship products to meet anticipated demand; (4) changes in or unavailability of quality or cost effective suppliers; (5) the Company’s ability to successfully manage constraints throughout the global transportation supply chain; (6) delays in delivery of sourced products; (7) changes in the sales prices, product mix or levels of consumer purchases of small electric household and specialty housewares appliances; (8) changes in consumer retail and credit markets, including the increasing volume of transactions made through third-party internet sellers; (9) bankruptcy of or loss of major retail customers or suppliers; (10) exchange rate fluctuations, changes in the import tariffs and monetary policies and other changes in the regulatory climate in the countries in which the Company operates or buys and/or sells products; (11) the impact of tariffs on customer purchasing patterns; (12) customer acceptance of price increases or delays in the development of new products; (13) product liability, regulatory actions or other litigation, warranty claims or returns of products; (14) increased competition, including consolidation within the industry; (15) changes in customers’ inventory management strategies; (16) shifts in consumer shopping patterns, gasoline prices, weather conditions, the level of consumer confidence and disposable income as a result of economic conditions, unemployment rates or other events or conditions that may adversely affect the level of customer purchases of the Company’s products; (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation; (18) the Company’s ability to identify, acquire or develop, and successfully integrate, new businesses or new product lines; and (19) other risk factors, including those described in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2025. Furthermore, the future impact of unfavorable economic conditions, including inflation, changing interest rates, availability of capital markets and consumer spending rates remains uncertain. In uncertain economic environments, we cannot predict whether or when such circumstances may improve or worsen, or what impact, if any, such circumstances could have on our business, results of operations, cash flows and financial position.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

INTEREST RATE RISK

We enter into certain financing arrangements that require interest payments based on floating interest rates. As such, our financial results are subject to changes in the market rate of interest. There is an inherent rollover risk for borrowings as they mature and are renewed at current market rates. The extent of this risk is not quantifiable or predictable because of the variability of future interest rates and business financing requirements. To reduce the exposure to changes in the market rate of interest, we have entered into interest rate swap agreements for a portion of our floating rate financing arrangements. We do not enter into interest rate swap agreements for trading purposes. Terms of the interest rate swap agreements require us to receive a variable interest rate and pay a fixed interest rate.

For the purpose of risk analysis, we use sensitivity analysis to measure the potential loss in fair value of financial instruments sensitive to changes in interest rates. We assume that a loss in fair value is an increase in our receivables. The fair value of our interest rate swap agreements was an asset of $2.2 million as of June 30, 2026. A hypothetical 10% relative decrease in interest rates would cause a decrease of $0.1 million in the fair value of interest rate swap agreements. Additionally, a hypothetical 10% relative increase in interest rates would cause an increase of $0.1 million in the fair value of interest rate swap agreements. Neither would have a material impact on the Company’s interest income for the six months ended June 30, 2026.

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FOREIGN CURRENCY EXCHANGE RATE RISK

We operate internationally through our foreign operating subsidiaries and enter into transactions denominated in foreign currencies, principally the Canadian dollar, the Mexican peso and, to a lesser extent, the Chinese yuan and the European Union euro. As such, our financial results are subject to the variability that arises from exchange rate movements. The fluctuation in the value of the U.S. dollar against other currencies affects the reported amounts of revenues, expenses, assets and liabilities. The potential impact of currency fluctuation increases as international expansion increases.

We have historically used forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies and not for trading purposes. These contracts generally mature within twelve months and require us to buy or sell the functional currency in which the applicable subsidiary operates and buy or sell U.S. dollars at rates agreed to at the inception of the contracts. As of June 30, 2026, we do not have any foreign currency exchange rate contracts.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Company management, with the participation of the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures as of June 30, 2026. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2026.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting identified during the quarter ended June 30, 2026, in connection with the evaluation by the Company’s management required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II

OTHER INFORMATION

Item 1 Legal Proceedings

The information required by this Item 1 is set forth in Note 6 – Contingencies included in the unaudited consolidated financial statements contained in Part I of this Form 10-Q and is hereby incorporated herein by reference to such information.

Item 1A Risk Factors

There are no material changes to the risk factors for the Company from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds


Issuer Purchases of Equity Securities (1)
	(a)	(b)		(c)	(d)
Period	Total Number of Shares Purchased	Average Price Paid per Share (2)		Total Number of Shares Purchased as Part of the Publicly Announced Program	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program
Month #1 April 1 to 30, 2026	33,513	$	20.16	33,513	$	23,381,768
Month #2 May 1 to 31, 2026	32,855	$	19.63	32,855	$	22,736,699
Month #3 June 1 to 30, 2026	31,501	$	20.20	31,501	$	22,100,519
	97,869	$	19.99	97,869	$	22,100,519

(1) In November 2025, the Company’s Board approved a stock repurchase program for the purchase of up to $25 million of the Company’s Class A Common outstanding starting January 1, 2026 and ending December 31, 2027.

(2) Average price paid per share includes costs associated with the repurchases but excludes the 1% excise tax on stock repurchases imposed by the Inflation Reduction Act of 2022.

During the three and six months ended June 30, 2026, the Company repurchased 97,869 and 153,282 shares at prevailing market prices for an aggregate purchase price of $2.0 million and $2.9 million, respectively. During the three and six months ended June 30, 2025, the Company repurchased 215,297 and 356,732 shares at prevailing market prices for an aggregate purchase price of $4.0 million and $6.7 million, respectively. During the year ended December 31, 2025, the Company repurchased 467,804 shares for an aggregate purchase price of $8.3 million.

Item 3 Defaults Upon Senior Securities

None.

Item 4 Mine Safety Disclosures

None.

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Item 5 Other Information

None of the Company’s directors or "officers" (as defined in Rule 16a-1(f) promulgated under the Exchange Act) adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K, during the Company's fiscal quarter ended June 30, 2026.

Item 6 Exhibits


Exhibit
Number*						Description of Exhibits

31(i)(1)						Certification of R. Scott Tidey pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act
31(i)(2)						Certification of Sally M. Cunningham pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act
32						Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by R. Scott Tidey and Sally M. Cunningham
101.INS						Inline XBRL Instance Document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Numbered in accordance with Item 601 of Regulation S-K.

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		Hamilton Beach Brands Holding Company (Registrant)
Date:	August 5, 2026	/s/ Sally M. Cunningham
		Sally M. Cunningham
		Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)/(Principal Accounting Officer)

Hamilton Beach Brands - 10-Q quarterly report FY2026 Q2

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