# EDGAR Filing Document

**Accession Number:** 0000723603
**File Stem:** 0000950170-25-113998
**Filing Date:** 2025-9
**Character Count:** 52441
**Document Hash:** a0d79c78cfcfec9e74f48d9297f27e14
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-113998.hdr.sgml**: 20250910

**ACCESSION NUMBER**: 0000950170-25-113998

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 12

**CONFORMED PERIOD OF REPORT**: 20250910

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250910

**DATE AS OF CHANGE**: 20250910

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CULP INC
- **CENTRAL INDEX KEY:** 0000723603
- **STANDARD INDUSTRIAL CLASSIFICATION:** BROADWOVEN FABRIC MILLS, COTTON [2211]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 561001967
- **STATE OF INCORPORATION:** NC
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-12597
- **FILM NUMBER:** 251306218

**BUSINESS ADDRESS:**
- **STREET 1:** 410 W. ENGLISH ROAD 5TH FLOOR
- **CITY:** HIGH POINT
- **STATE:** NC
- **ZIP:** 27262
- **BUSINESS PHONE:** 3368895161

**MAIL ADDRESS:**
- **STREET 1:** 410 W. ENGLISH ROAD 5TH FLOOR
- **CITY:** HIGH POINT
- **STATE:** NC
- **ZIP:** 27262

?xml version='1.0' encoding='ASCII'? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549**

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## FORM 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** September 10, 2025<br>

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Culp, Inc.

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| North Carolina | 1-12597 | 56-1001967 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 410 W. English Rd 5th Floor |  |  |
| High Point**,** North Carolina |  | 27262 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

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**Registrant's Telephone Number, Including Area Code:** 336 889-5161<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common stock, par value $0.05 per share | CULP | The New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

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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. ☐

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**This report and the exhibits attached hereto contain "forward-looking statements" within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often but not always characterized by qualifying words such as "expect," "believe," "will," "may," "should," "could," "potential," "continue," "target," "predict", "seek," "anticipate," "estimate," "intend," "plan," "project," and their derivatives, and include but are not limited to statements about expectations, projections, or trends for our future operations, strategic initiatives and plans, restructuring actions, production levels, new product launches, sales, profit margins, profitability, operating (loss) income, capital expenditures, working capital levels, cost savings (including, without limitation, anticipated cost savings from restructuring actions), income taxes, SG&A or other expenses, pre-tax (loss) income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding dividends, share repurchases, liquidity, use of cash and cash requirements, ending cash balances and cash positions, borrowing capacity, investments, potential acquisitions, cash and non-cash restructuring and restructuring-related charges, expenses, and/or credits, net proceeds from restructuring related asset dispositions, future economic or industry trends, public health epidemics, or other future developments. There can be no assurance that we will realize these expectations or meet our guidance, or that these beliefs will prove correct.** 

**Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, demand for home furnishings products, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on our business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect us adversely. Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products. Changes in tariffs or trade policy, including changes in U.S. trade enforcement priorities, or changes in the value of the U.S. dollar versus other currencies, could affect our financial results because a significant portion of our operations are located outside the United States. Also, economic or political instability in international areas could affect our operations or sources of goods in those areas, as well as demand for our products in international markets. The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations. The impact of public health epidemics on employees, customers, suppliers, and the global economy, such as the coronavirus pandemic, could also adversely affect our operations and financial performance. In addition, the impact of potential asset impairments, including impairments of property, plant, and equipment, inventory, or intangible assets, as well as the impact of valuation allowances applied against our net deferred income tax assets, could affect our financial results. Increases in freight costs, labor costs, and raw material prices, including increases in market prices for petrochemical products, can also significantly affect the prices we pay for shipping, labor, and raw materials, respectively, and in turn, increase our operating costs and decrease our profitability. Also, our success in diversifying our supply chain with reliable partners to effectively service our global platform could affect our operations and adversely affect our financial results. Finally, the future performance of our business also depends on our ability to successfully restructure our bedding operations and return the segment to profitability as well as successfully integrate our bedding and upholstery divisions, neither of which may meet our expectations. Further information about these factors, as well as other factors that could affect our future operations or financial results and the matters discussed in forward-looking statements, is included in Item 1A "Risk Factors" in our most recent Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission.**

**Many of these factors are macroeconomic in nature and are, therefore, beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in this report and the exhibits attached hereto as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements included in this report and the exhibits attached hereto are made only as of the date of this report. Unless required by United States federal securities laws, we neither intend nor assume any obligation to update these forward-looking statements for any reason after the date of this report to conform these statements to actual results or to changes in our expectations. 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. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations or financial results.**

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## Item 2.02 Results of Operations and Financial Condition.
On September 10, 2025, we issued a news release to announce our financial results for our first quarter ended August 3, 2025. A copy of the news release is attached hereto as Exhibit 99.1.

The information set forth in this Item 2.02 of this Current Report, and in Exhibit 99.1, is intended to be "furnished" under Item 2.02 of Form 8-K. Such information shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

The news release contains adjusted income statement information for the three month periods ended August 3, 2025 and July 28, 2024, which discloses adjusted income (loss) from operations, a non-U.S. GAAP performance measure that eliminates items which are not expected to occur on a recurring or regular basis. For the three month period ended August 3, 2025, this item includes restructuring credits, restructuring-related charges, and restructuring expenses associated with the sale of our former mattress fabrics manufacturing facility in Quebec, Canada, segment integration initiatives including the transition of operations within our upholstery segment from leased locations to our owned facility in Stokesdale, North Carolina, and similar items. The company has included this adjusted information in order to show operational performance excluding the effects of items not expected to occur on a recurring or regular basis. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth in the news release. Management believes this presentation aids in the comparison of financial results among comparable financial periods. Management uses adjusted income statement information in evaluating the financial performance of our overall operations and business segments. Also, adjusted income statement information is used as a performance measure in our incentive-based executive compensation program. We note, however, that this Adjusted income statement information should not be viewed in isolation or as a substitute for income (loss) from operations calculated in accordance with U.S. GAAP.

The news release contains disclosures about our net debt, which is a non-U.S. GAAP liquidity measure that we define as cash and cash equivalents (which we sometimes refer to as "cash") plus investments that are available to fund operations minus the total amount of outstanding borrowings under our lines of credit or other debt instruments. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth in the news release. We believe this non-GAAP measure is useful to investors as it provides a way to compare our cash or debt position across periods on a consistent basis, regardless of the impact of financing activities. Net debt should not be viewed in isolation by investors and should not be used as a substitute for GAAP measures of liquidity.

The news release contains disclosures about adjusted free cash flow, a non-U.S. GAAP liquidity measure that we define as net cash (used in) provided by operating activities, less cash capital expenditures and any payments on vendor-financed capital expenditures, plus any proceeds from sale of property, plant, and equipment, plus proceeds from note receivable, plus proceeds from the sale of investments associated with our rabbi trust, less the purchase of investments associated with our rabbi trust, and plus or minus the effects of foreign currency exchange rate changes on cash and cash equivalents, in each case to the extent any such amount is incurred during the period presented. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth in the news release. Management believes the disclosure of adjusted free cash flow provides useful information to investors because it measures our available cash flow for potential debt repayment, stock repurchases, dividends, additions to cash and investments, or other corporate purposes. We note, however, that not all of the company's adjusted free cash flow is available for discretionary spending, as we may have mandatory debt payments and other cash requirements that must be deducted from our cash available for future use. In operating our business, management uses adjusted free cash flow to make decisions about what commitments of cash to make for operations, such as capital expenditures (and possible financing arrangements for these expenditures), purchases of inventory or supplies, SG&A expenditure levels, compensation, and other commitments of cash, while still allowing for adequate cash to meet known future commitments for cash, such as debt repayment, and also for making decisions about dividend payments and share repurchases.

The news release contains disclosures about our adjusted EBITDA, which is a non-U.S. GAAP performance measure that reflects net (loss) income excluding income tax expense (benefit), net interest income, and restructuring expense or credit and restructuring related charges or credits, as well as depreciation and amortization expense, and stock-based compensation expense. This measure also excludes other non-recurring charges and credits associated with our business, if and to the extent any such amount is incurred during the period presented. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth in the news release. We believe presentation of adjusted EBITDA is useful to investors because earnings before interest income and expense, income taxes, depreciation and amortization, and similar performance measures that exclude certain charges from earnings, are often used by investors and financial analysts in evaluating and comparing companies in our industry.

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We note, however, that such measures are not defined uniformly by various companies, with differing expenses being excluded from net income to calculate these performance measures. For this reason, adjusted EBITDA should not be viewed in isolation by investors and should not be used as a substitute for net income (loss) calculated in accordance with GAAP, nor should it be used for direct comparisons with similarly titled performance measures reported by other companies. Use of adjusted EBITDA as an analytical tool has limitations in that this measure does not reflect all expenses that are necessary to fund and operate our business, including funds required to pay taxes, service our debt, and fund capital expenditures, among others. Management uses adjusted EBITDA to help it analyze the company's earnings and operating performance, by excluding the effects of expenses that depend upon capital structure and debt level, tax provisions, and non-cash items such as depreciation, amortization and stock-based compensation expense that do not require immediate uses of cash.

## Item 9.01 Financial Statements and Exhibits.
**EXHIBIT INDEX**

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| | |
|:---|:---|
| **Exhibit Number** | **Exhibit** |
| 99.1 | [<u>News Release dated September 10, 2025</u>](culp-ex99_1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

**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, hereunto duly authorized.**

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| | |
|:---|:---|
| **CULP, INC.**<br>**(Registrant)** | **CULP, INC.**<br>**(Registrant)** |
| **By:** | **/s/ Kenneth R. Bowling** |
|  | **Chief Financial Officer** |
|  | **(principal financial officer)** |

---

**<u>Dated September 10, 2025</u>**

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## Exhibit 99.1

**Exhibit 99.1**

![img29555247_0.jpg](img29555247_0.jpg)

**CULP ANNOUNCES FIRST QUARTER FISCAL 2026 RESULTS** 

***Streamlined Platform Continues to Drive Improvement in Operating Results***

***Additional Cost and Efficiency Benefits Expected from Division Integration in Fiscal 2026***

**HIGH POINT, N.C. (September 10, 2025)** – Culp, Inc. (NYSE: CULP), a leading provider of fabrics for bedding and upholstery fabrics for residential, commercial, and hospitality furniture and other applications, today reported financial and operating results for its first fiscal quarter ended August 3, 2025.

**Fiscal 2026 First Quarter Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;▪ Continued market softness and a tariff-driven pause in residential upholstery shipments from China drove consolidated net sales of $50.7 million during the quarter, which included an extra week, compared to prior-year period net sales of $56.5 million.

▪ Consolidated gross profit of $7.2 million, or 14.3% of sales, compared to prior-year period gross profit of $5.1 million, or 9.0% of sales, a 530 basis point improvement driven by the cost and efficiency gains from restructuring initiatives in the bedding segment completed last year.

▪ Operating income of $1.6 million, compared to the prior-year period's loss from operations of $(6.9) million.

Adjusted for restructuring credits and expenses, including a net credit of approximately $3.5 million driven by a gain on the sale of the company's Canadian manufacturing facility, non-GAAP operating loss of $(1.9) million, compared to the prior-year period's non-GAAP operating loss of $(4.1) million (see reconciliation table on page 11).<br>

▪ Net loss of $(231) thousand, or $(.02) per diluted share, compared to a net loss of $(7.3) million, or $(.58) per diluted share, in the prior-year period.

Adjusted for the impacts of restructuring and related credits and expenses, EBITDA of negative $(1.1) million, compared to negative $(2.7) million in the prior-year period (see reconciliation table on page 12).<br>

**Management Commentary**

Iv Culp, President and Chief Executive Officer, commented, "Despite the continued low-demand environment across the home furnishings industry and tariff volatility, our improving operating performance further confirms the effectiveness of the restructuring initiatives we completed last year. Thanks to the hard work of our team, we made substantial, double-digit improvement at both the gross profit and operating levels during the quarter.

"We have several other initiatives underway related to the integration of our two former divisions that should strengthen our operating profile further as we progress through fiscal 2026. During our second quarter, we expect to start seeing the benefits from the transition of upholstery operations at our leased facility in Burlington, North Carolina, to a shared management model within our owned Stokesdale, North Carolina, location. We also recently initiated the transition of our Read Window operations from a leased facility in Tennessee to a more cost-effective platform within the same owned U.S. location, which should begin to positively impact our results in the third quarter. In

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

addition, we recently increased prices to mitigate tariff costs and right-size margins in certain areas. Once fully implemented this year, we expect these integration and price actions to generate approximately $6 million of additional cost and efficiency enhancements annually.

"While the macroeconomic and global trade landscapes continue to present challenges for CULP and everyone in our industry, we've been able to leverage our size and scale advantages to win market share in key segments, particularly in bedding. In the current tariff environment, our strategy to supplement a strong U.S. manufacturing platform with a foreign footprint spread across nearshore and offshore jurisdictions gives customers increasingly attractive supply chain alternatives and provides us with better pricing flexibility.

Culp concluded, "Our highest priorities are to to return CULP to profitability and reduce our current net debt position, regardless of any rebound in demand and improved market conditions. We believe that our efforts to reinvent our company and go to market with a leaner and more unified operating model, along with the additional integration initiatives now in motion, position us to not only meet that objective in the near term but also accelerate profitability as market conditions improve."

**Financial Outlook** 

Due to macro-economic uncertainty and the fluid global trade and tariff environment, the Company is providing only limited forward guidance. The Company's expectations are based on information available at the time of this press release and reflect certain assumptions by management regarding the Company's business and industry trends, the projected impact of restructuring and integration initiatives, and ongoing market headwinds. The Company's expectations also assume no further meaningful impacts from tariffs and trade negotiations.

▪ The Company expects sequential sales growth throughout the year in what is expected to remain a low-demand environment for home furnishings.

▪ The Company expects the cost and efficiency benefits of its restructuring and division integration initiatives, along with price increases, to drive EBITDA results (adjusted for integration, related expenses and other items) in a range from near breakeven to slightly positive for the second quarter of fiscal 2026, and for operating performance and profitability to improve sequentially throughout the remainder of the year.

▪ While the Company intends to continue utilizing borrowings as necessary under its domestic and foreign credit facilities during fiscal 2026 to fund working capital needs and growth, as well as integration and efficiency initiatives, it will continue to aggressively manage liquidity and capital expenditures and prioritize free cash flow.

**Fiscal 2026 First Quarter Business Segment Highlights**

Following the integration of the Company's two formerly separate divisions, Culp Home Fashions and Culp Upholstery Fabrics, the Company now refers to its mattress fabric and upholstery fabric businesses as its Bedding and Upholstery segments, respectively. Moreover, the Company now manages selling, general and administrative ("SG&A") expenses on a consolidated basis following the division integration and, as a result, will no longer report operating performance at the segment level.

*Bedding* 

&nbsp;&nbsp;&nbsp;&nbsp;▪ Sales in this segment were $28.0 million for the first quarter, generally flat compared with sales in the prior-year period. While the overall low-demand market environment persisted during the quarter and affected sales, this segment continued to win market share with larger customers.

▪ The newly-restructured cost platform in this segment drove gross profit of $2.9 million, or 10.5% of sales, a significant improvement from the prior year period's negative $(326) thousand, or negative

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

(1.2%) of sales.

*Upholstery* 

▪ Sales in this segment were $22.6 million for the first quarter, down approximately 20% compared with sales of $28.5 million in the prior-year period. The decline was driven by the well-known softness across the home furnishings market and several additional factors including the historically high tariffs on China-produced products in the prior quarter, which essentially grounded residential upholstery order flow for approximately five weeks and subsequently impacted sales in the first quarter. In addition, a large residential fabric customer concentrated most of its purchasing in the first half of last year, with a notable spike in the first quarter, resulting in an uneven year-over-year comparison this quarter that we expect to normalize in the second quarter and ensuing periods.

▪ Gross profit was $4.3 million, or 18.9% of sales, down from $5.5 million, or 19.4% of sales, in the prior year period, and driven largely by lower comparable sales.

**Balance Sheet, Cash Flow, and Liquidity** 

&nbsp;&nbsp;&nbsp;&nbsp;▪ As of August 3, 2025, the Company maintained $11.1 million in total cash and $18.1 million in outstanding debt under its credit facilities, of which $2.8 million constituted supplier financing. The outstanding debt was primarily incurred to fund worldwide working capital and to take advantage of availability and borrowing opportunities at current preferred rates in China.

&nbsp;&nbsp;&nbsp;&nbsp;▪ As of August 3, 2025, the Company maintained approximately $28.7 million in liquidity consisting of $11.1 million in cash and $17.6 million in borrowing availability under its recently renewed domestic credit facility.

&nbsp;&nbsp;&nbsp;&nbsp;▪ Cash flow from operations was negative $(695) thousand for the first quarter of fiscal 2026, and primarily driven by operating losses partially offset by favorable working capital. Adjusted for capital expenditures, proceeds from the sale of property, plant and equipment, and other items, free cash flow was $311 thousand (see reconciliation table on page 10).

&nbsp;&nbsp;&nbsp;&nbsp;▪ Capital expenditures for the first quarter were $179 thousand, down from $501 thousand in the prior year period, reflective of the fiscal 2025 bedding consolidation and corresponding equipment optimization, as well as a strategic focus on high value and quick payback projects.

**Conference Call** 

Culp, Inc. will hold a conference call to discuss financial results for the first quarter of its fiscal year 2026 on Thursday, September 11, 2025, at 9:00 a.m. Eastern Time. A live webcast of this call can be accessed on the "Upcoming Events" section on the "Investor Relations" page of the Company's website, www.culp.com. A replay of the webcast will be available for 30 days under the "Past Events" section on the "Investor Relations" page of the Company's website.

**About the Company**

Culp, Inc. is one of the largest marketers of mattress fabrics for bedding and upholstery fabrics for residential, commercial, and hospitality furniture and other applications in North America. The Company markets a variety of fabrics to its global customer base of leading bedding and furniture companies, including fabrics produced at Culp's manufacturing facilities and fabrics sourced through other suppliers. Culp has manufacturing and sourcing capabilities located in the United States, China, Haiti, Turkey, and Vietnam.

**Investor Relations Contact**

Ken Bowling, Executive Vice President, Chief Financial Officer, and Treasurer:

(336) 881-5630

krbowling@culp.com

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

**Forward Looking Statements**

*This release contains "forward-looking statements" within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often but not always characterized by qualifying words such as "expect," "believe," "will," "may," "should," "could," "potential," "continue," "target," "predict", "seek," "anticipate," "estimate," "intend," "plan," "project," and their derivatives, and include but are not limited to statements about expectations, projections, or trends for our future operations, strategic initiatives and plans, restructuring and integration actions, production levels, new product launches, sales, profit margins, profitability, operating (loss) income, capital expenditures, working capital levels, cost savings (including, without limitation, anticipated cost savings from restructuring and integration actions), income taxes, SG&A or other expenses, pre-tax (loss) income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding dividends, share repurchases, liquidity, use of cash and cash requirements, ending cash balances and cash positions, borrowing capacity, investments, potential acquisitions, cash and non-cash restructuring and restructuring-related charges, expenses, and/or credits, net proceeds from restructuring related asset dispositions, future economic or industry trends, public health epidemics, or other future developments. There can be no assurance that we will realize these expectations or meet our guidance, or that these beliefs will prove correct.*

*Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, demand for home furnishings products, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on our business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect us adversely. Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products. Changes in tariffs or trade policy, including changes in U.S. trade enforcement priorities, or changes in the value of the U.S. dollar versus other currencies, could affect our financial results because a significant portion of our operations are located outside the United States. Also, economic or political instability in international areas could affect our operations or sources of goods in those areas, as well as demand for our products in international markets. The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations. The impact of public health epidemics on employees, customers, suppliers, and the global economy, such as the coronavirus pandemic, could also adversely affect our operations and financial performance. In addition, the impact of potential asset impairments, including impairments of property, plant, and equipment, inventory, or intangible assets, as well as the impact of valuation allowances applied against our net deferred income tax assets, could affect our financial results. Increases in freight costs, labor costs, and raw material prices, including increases in market prices for petrochemical products, can also significantly affect the prices we pay for shipping, labor, and raw materials, respectively, and in turn, increase our operating costs and decrease our profitability. Also, our success in diversifying our supply chain with reliable partners to effectively service our global platform could affect our operations and adversely affect our financial results. Finally, the future performance of our business also depends on our ability to successfully restructure our bedding operations and return the segment to profitability as well as successfully integrate our bedding and upholstery segments and realize the expected benefits of that integration effort, which may not meet our expectations. Further information about these factors, as well as other factors that could affect our future operations or financial results and the matters discussed in forward-looking statements, is included in Item 1A "Risk Factors" in our most recent Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission.*

*Many of these factors are macroeconomic in nature and are, therefore, beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in this* 

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

*release as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements included in this release are made only as of the date of this report. Unless required by United States federal securities laws, we neither intend nor assume any obligation to update these forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. 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. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations or financial results.*

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

**CULP, INC.** 

**CONSOLIDATED STATEMENTS OF NET LOSS**

**Unaudited**

**(Amounts in Thousands, Except for Per Share Data)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** |
|  | Amount | Amount |  | Percent of Sales | Percent of Sales |
|  | **August 3,** | July 28, | % Over | **August 3,** | July 28, |
|  | **2025** | 2024 | (Under) | **2025** | 2024 |
| Net sales | $**50691** | $56537 | (10.3)% | **100.0%** | 100.0% |
| Cost of sales | **(43463)** | (51461) | (15.5)% | **85.7%** | 91.0% |
| Gross profit | **7228** | 5076 | 42.4% | **14.3%** | 9.0% |
| Selling, general and administrative<br> expenses | **(9119)** | (9296) | (1.9)% | **18.0%** | 16.4% |
| Restructuring credit (expense) | **3508** | (2631) | N.M | **6.9%** | (4.7)% |
| Income (loss) from operations | **1617** | (6851) | (123.6)% | **3.2%** | (12.1)% |
| Interest expense | **(183)** | (28) | 553.6% | **0.4%** | 0.0% |
| Interest income | **235** | 262 | (10.3)% | **0.5%** | 0.5% |
| Other expense | **(531)** | (404) | 31.4% | **1.0%** | 0.7% |
| Income (loss) before income taxes | **1138** | (7021) | (116.2)% | **2.2%** | (12.4)% |
| Income tax expense (1) | **(1369)** | (240) | 470.4% | **120.3%** | (3.4)% |
| Net loss | $**(231)** | $(7261) | (96.8)% | **(0.5)%** | (12.8)% |
| Net loss per share - basic | $**(0.02)** | $(0.58) | (96.6)% |  |  |
| Net loss per share - diluted | $**(0.02)** | $(0.58) | (96.6)% |  |  |
| Average shares outstanding-basic | **12570** | 12470 | 0.8% |  |  |
| Average shares outstanding-diluted | **12570** | 12470 | 0.8% |  |  |

---

Notes

(1) Percent of sales column for income tax expense is calculated as a percent of income (loss) before income taxes.

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

**CULP, INC.**

**CONSOLIDATED BALANCE SHEETS**

**Unaudited**

**(Amounts in Thousands)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Amounts** | **Amounts** | **Amounts** |
|  | **(Condensed)** | (Condensed) | (Condensed) |
|  | **August 3,** | July 28, | \* April 27, |
|  | **2025** | 2024 | 2025 |
| Current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**11094** | $13472 | $5629 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments - rabbi trust | **1395** | 954 | 1325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | **18382** | 21587 | 21844 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | **50109** | 41668 | 49309 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term notes receivable | **5104** | 268 | 280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current income taxes receivable | **—** | 532 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | **40** | 607 | 2177 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | **2767** | 3590 | 2970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | **88891** | 82678 | 83534 |
| Property, plant & equipment, net | **23552** | 30476 | 24836 |
| Right of use assets | **5162** | 4483 | 5908 |
| Intangible assets | **865** | 1782 | 960 |
| Long-term investments - rabbi trust | **5715** | 7089 | 5722 |
| Long-term notes receivable | **1078** | 1394 | 1182 |
| Deferred income taxes | **475** | 528 | 637 |
| Other assets | **676** | 709 | 591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**126414** | $129139 | $123370 |
| Current liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lines of credit - current | **11120** | 4017 | 8114 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade | **24319** | 26540 | 27323 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - capital expenditures | **8** | 56 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability - current | **2209** | 1565 | 2394 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation - current | **1395** | 954 | 1325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | **485** | 1600 | 422 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | **5850** | 6097 | 5333 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued restructuring | **105** | 633 | 610 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable - current | **2412** | 759 | 1420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | **47903** | 42221 | 46964 |
| Lines of credit - long-term | **7025** |  | 4600 |
| Operating lease liability - long-term | **1995** | 2219 | 2535 |
| Income taxes payable - long-term | **841** | 2180 | 790 |
| Deferred income taxes | **5302** | 6449 | 5155 |
| Deferred compensation - long-term | **5701** | 6946 | 5686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | **68767** | 60015 | 65730 |
| Shareholders' equity | **57647** | 69124 | 57640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders'<br> equity | $**126414** | $129139 | $123370 |
| Shares outstanding | **12605** | 12470 | 12559 |

---

*\* Derived from audited financial statements.*

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

**CULP, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**Unaudited**

**(Amounts in Thousands)**

---

| | | |
|:---|:---|:---|
|  | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** |
|  | **Amounts** | **Amounts** |
|  | **August 3,** | July 28, |
|  | **2025** | 2024 |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $**(231)** | $(7261) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in<br> operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | **1111** | 1581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash inventory credit | **(67)** | (268) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | **95** | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | **156** | 176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | **309** | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of equipment | **(9)** | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash restructuring (credit) expense | **(3664)** | 1643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency exchange loss | **122** | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | **3482** | (445) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **(683)** | 3458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | **212** | (221) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | **13** | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade | **(3126)** | 884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | **63** | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued restructuring | **(506)** | 640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and deferred compensation | **1016** | (478) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | **1012** | (310) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | **(695)** | (206) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | **(179)** | (501) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of property, plant and equipment | **966** | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from notes receivable | **120** | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of investments (rabbi trust) | **237** | 229 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of investments (rabbi trust) | **(158)** | (187) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | **986** | (332) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from lines of credit | **5886** | 4010 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on lines of credit | **(552)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of debt issuance costs | **(120)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock surrendered for withholding taxes payable | **(60)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | **5154** | 4010 |
| Effect of foreign currency exchange rate changes on cash and cash equivalents | **20** | (12) |
| Increase in cash and cash equivalents | **5465** | 3460 |
| Cash and cash equivalents at beginning of year | **5629** | 10012 |
| Cash and cash equivalents at end of period | $**11094** | $13472 |

---

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

**CULP, INC.**

**STATEMENTS OF NET SALES AND GROSS PROFIT BY SEGMENT**

**Unaudited**

**(Amounts in Thousands)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** |
|  | Amounts | Amounts |  | Percent of Total Sales | Percent of Total Sales |
|  | **August 3,** | July 28, | % Over | **August 3,** | July 28, |
| Net Sales by Segment | **2025** | 2024 | (Under) | **2025** | 2024 |
| Bedding | $**28046** | $28076 | (0.1)% | **55.3%** | 49.7% |
| Upholstery | **22645** | 28461 | (20.4)% | **44.7%** | 50.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Sales | $**50691** | $56537 | (10.3)% | **100.0%** | 100.0% |
| Gross Profit (Loss) by Segment |  |  |  | Gross Margin | Gross Margin |
| Bedding | $**2942** | $(326) | N.M. | **10.5%** | (1.2)% |
| Upholstery | **4286** | 5518 | (22.3)% | **18.9%** | 19.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Segment Gross Profit | **7228** | 5192 | 39.2% | **14.3%** | 9.2% |
| Restructuring Related Charge (1) | **—** | (116) | (100.0)% | **0.0%** | (0.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross Profit | $**7228** | $5076 | 42.4% | **14.3%** | 9.0% |

---

Notes

(1) See page 11 for a Reconciliation of Selected Income Statement Information to Adjusted Results for the three months ending August 3, 2025, and July 28, 2024.

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

**CULP, INC.**

**RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES**

**Unaudited**

**(Amounts in Thousands)**

**RECONCILIATION OF NET DEBT**

---

| | | | |
|:---|:---|:---|:---|
|  | **Amounts** | **Amounts** | **Amounts** |
|  | **August 3,** | July 28, | April 27, |
|  | **2025** | 2024 | 2025\* |
| **Cash:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**11094** | $13472 | $5629 |
| **Debt:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lines of credit - current | **(11120)** | (4017) | (8114) |
| &nbsp;&nbsp;&nbsp;&nbsp;Lines of credit - long-term | **(7025)** |  | (4600) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt | $**(18145)** | $(4017) | $(12714) |
| **Net (debt) cash position** | $**(7051)** | $9455 | $(7085) |

---

*\* Derived from audited financial statements*

**RECONCILIATION OF ADJUSTED FREE CASH FLOW**

---

| | | |
|:---|:---|:---|
|  | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** |
|  | **Amounts** | **Amounts** |
|  | **August 3,** | July 28, |
|  | **2025** | 2024 |
| Net cash used in operating activities | $**(695)** | $(206) |
| Minus: Capital expenditures | **(179)** | (501) |
| &nbsp;&nbsp;&nbsp;&nbsp;Free Cash Flow | **(874)** | (707) |
| Plus: Proceeds from the sale of buildings and equipment | **966** | 37 |
| Plus: Proceeds from notes receivable | **120** | 90 |
| Plus: Proceeds from the sale of investments (rabbi trust) | **237** | 229 |
| Minus: Purchase of investments (rabbi trust) | **(158)** | (187) |
| Effects of foreign currency exchange rate changes on cash and cash equivalents | **20** | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted Free Cash Flow | $**311** | $(550) |

---

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

**CULP, INC.**

**RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (CONTINUED)**

**Unaudited**

**(Amounts in Thousands)**

**RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS**

---

| | | | |
|:---|:---|:---|:---|
|  | Three months ended August 3, 2025 | Three months ended August 3, 2025 | Three months ended August 3, 2025 |
|  | **As Reported** |  | Adjusted Results |
|  | **August 3,** |  | August 3, |
|  | **2025** | Adjustments | 2025 |
| Net sales | $**50691** |  | $50691 |
| Cost of sales | **(43463)** |  | (43463) |
| Gross profit | **7228** |  | 7228 |
| Selling, general and administrative<br> expenses | **(9119)** |  | (9119) |
| Restructuring credit (1) | **3508** | (3508) |  |
| Income (loss) from operations | $**1617** | (3508) | $(1891) |

---

Notes

(1) During the three-month period ending August 3, 2025, restructuring credit mostly represented a gain from the sale of the manufacturing facility located in Quebec, Canada totaling $4.0 million, partially offset by charges related to our activities to transform our operating model and reduce fixed costs.

---

| | | | |
|:---|:---|:---|:---|
|  | Three months ended July 28, 2024 | Three months ended July 28, 2024 | Three months ended July 28, 2024 |
|  | **As Reported** |  | Adjusted Results |
|  | **July 28,** |  | July 28, |
|  | **2024** | Adjustments | 2024 |
| Net sales | $**56537** |  | $56537 |
| Cost of sales (1) | **(51461)** | 116 | (51345) |
| Gross profit | **5076** | 116 | 5192 |
| Selling, general and administrative<br> expenses | **(9296)** |  | (9296) |
| Restructuring expense (1) | **(2631)** | 2631 |  |
| Loss from operations | $**(6851)** | 2747 | $(4104) |

---

(1) During the three-month period ending July 28, 2024, the restructuring related expenses recorded in cost of sales and restructuring expense represented costs that were mostly associated with consolidating the company's North American mattress fabrics operations and two leased facilities related to the sewn mattress cover operation located in Ouanaminthe, Haiti.

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CULP Announces Results for First Quarter Fiscal 2026

September 10, 2025

**CULP, INC.**

**RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (CONTINUED)**

**Unaudited**

**(Amounts in Thousands)**

**RECONCILIATION OF ADJUSTED EBITDA**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter<br>Ended** | **Quarter<br>Ended** | **Quarter<br>Ended** | **Quarter<br>Ended** | **Trailing<br>12 Months** |
|  | **October 27,** | **January 26,** | **April 27,** | **August 3,** | **August 3,** |
|  | **2024** | **2025** | **2025** | **2025** | **2025** |
| **Net loss** | $**(5644)** | $**(4126)** | $**(2073)** | $**(231)** | $**(12074)** |
| **Interest income, net** | **(214)** | **(192)** | **(44)** | **(52)** | **(502)** |
| **Income tax (benefit) expense** | **(50)** | **446** | **(243)** | **1369** | **1522** |
| **Depreciation expense** | **1496** | **1211** | **1152** | **1111** | **4970** |
| **Amortization expense** | **101** | **101** | **104** | **95** | **401** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EBITDA** | **(4311)** | **(2560)** | **(1104)** | **2292** | **(5683)** |
| **Restructuring expense (credit)** | **2031** | **1655** | **1422** | **(3508)** | **1600** |
| **Restructuring related expense** | **769** | **624** | **113** | **—** | **1506** |
| **Stock based compensation** | **188** | **158** | **128** | **156** | **630** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjusted EBITDA** | $**(1323)** | $**(123)** | $**559** | $**(1060)** | $**(1947)** |
| **% Net Sales** | **(2.4)%** | **(0.2)%** | **1.1%** | **(2.1)%** | **(0.9)%** |
|  | **Quarter<br>Ended** | **Quarter<br>Ended** | **Quarter<br>Ended** | **Quarter<br>Ended** | **Trailing<br>12 Months** |
|  | **October 29,** | **January 28,** | **April 28,** | **July 28,** | **July 28,** |
|  | **2023** | **2024** | **2024** | **2024** | **2024** |
| **Net loss** | $**(2424)** | $**(3188)** | $**(4865)** | $**(7261)** | $**(17738)** |
| **Interest income, net** | **(282)** | **(284)** | **(252)** | **(234)** | **(1052)** |
| **Income tax expense** | **516** | **1027** | **805** | **240** | **2588** |
| **Depreciation expense** | **1617** | **1646** | **1623** | **1581** | **6467** |
| **Amortization expense** | **97** | **98** | **99** | **99** | **393** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EBITDA** | **(476)** | **(701)** | **(2590)** | **(5575)** | **(9342)** |
| **Restructuring expense (credit)** | **144** | **(50)** | **204** | **2631** | **2929** |
| **Restructuring related (credit) expense** | **(78)** | **(61)** | **—** | **116** | **(23)** |
| **Stock based compensation** | **163** | **262** | **168** | **176** | **769** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjusted EBITDA** | $**(247)** | $**(550)** | $**(2218)** | $**(2652)** | $**(5667)** |
| **% Net Sales** | **(0.4)%** | **(0.9)%** | **(4.5)%** | **(4.7)%** | **(2.5)%** |
| **% Over (Under)** | **435.6%** | **(77.6)%** | **(125.2)%** | **(60.0)%** | **(65.6)%** |

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