The majority of the remaining increase, 2.8 million, was driven by higher employee-related expenses, including additional headcount to advance initiatives in our strategic framework and strengthen our information systems. in addition to higher travel and meeting expenses this quarter over the prior year. Advertising and promotional expenses decreased slightly year over year. As a percentage of net sales, A&P spend was 5.3% this quarter compared to 5.5% last year. While we are currently tracking below our full year guidance of around 6% of net sales, we have brand building initiatives planned for the remainder of the fiscal year which we expect will bring A&P investment in line with our fiscal year guidance.

Jan 8, 2026 / receipt, needs a key / Sarah, CFO | earnings call 2026-01-08 | transcript 81ee62b2-7d9a-4fea-8387-5da5ad0e2e9e | chars 18047-18763 | segment 18

Our first quarter typically carries higher expenses due to essential planning meetings and increased travel, which are critical for setting our strategic direction for the year.

Jan 8, 2026 / receipt, needs a key / Sarah, CFO | earnings call 2026-01-08 | transcript 81ee62b2-7d9a-4fea-8387-5da5ad0e2e9e | chars 17484-17661 | segment 18

Additionally, travel expense and unfavorable changes in foreign currency exchange rates contributed to higher SG&A expense.

Apr 9, 2024 / receipt, needs a key / Sarah Heiser, CFO | earnings call 2024-04-09 | transcript 8f185948-20be-46b3-bdc2-6e2e1966e825 | chars 18815-18938 | segment 19

However, on an absolute dollar basis, our cost of doing business increased by $5.7 million, or 13%, due to higher employee-related expenses, higher travel and meeting-related expenses, and increased professional services fees.

Jan 9, 2024 / receipt, needs a key / Sarah, CFO | earnings call 2024-01-09 | transcript 31a6fc52-f137-4a22-91ef-1e58a47d6919 | chars 22357-22583 | segment 22

This increase is largely due to higher employee-related expenses associated with our earned incentive compensation, increased professional service fees, and higher travel and meeting expenses as we continue to get back to our normal travel schedules in a post-pandemic world.

Oct 19, 2023 / receipt, needs a key / Sarah, CFO | earnings call 2023-10-19 | transcript b3feb4f7-4468-431a-a6d7-1221833a4e81 | chars 24472-24747 | segment 25

Travel and meeting expenses were also higher this year due to the reduction in travel restrictions related to the pandemic compared to last year.

Jul 10, 2023 / receipt, needs a key / Sarah Heiser, CFO | earnings call 2023-07-10 | transcript e29adea0-3ca1-441d-b1b0-c5de774f0aaf | chars 21052-21197 | segment 21

This quarter, our cost of doing business increased by 3.3 million, or 8%, due to higher employee-related expenses and increased travel and meeting expenses compared to the prior year's second quarter.

Apr 6, 2023 / receipt, needs a key / Steve, CEO | earnings call 2023-04-06 | transcript 46a0f2be-be9c-42ee-8e83-30b15562d048 | chars 24460-24660 | segment 25

This quarter, our cost of doing business increased by $1.4 million or 3% due to increased travel and meeting expenses and higher employee-related expenses compared to the prior year's first quarter.

Jan 9, 2023 / receipt, needs a key / Sarah Heiser, CFO | earnings call 2023-01-09 | transcript ad00ac21-b6f7-4827-a4ac-46a0ea4f94f7 | chars 20388-20586 | segment 21

These lower Employee-related costs were partially offset by increases in travel and meeting expense due to the resumption of travel as the pandemic restrictions have been lifted.

Jul 7, 2022 / receipt, needs a key / Steve, CEO | earnings call 2022-07-07 | transcript ac207970-f379-4388-8771-cb23af5eb08f | chars 27662-27840 | segment 27

Drive Productivity Through Enhanced Systems

ir_statement / Sep 16, 2026 / receipt

Lead Geographic Expansion

ir_statement / Sep 16, 2026 / receipt

E-commerce sales ▲23%

ir_statement / Sep 16, 2026 / receipt

Lead Geographic Expansion

ir_statement / Sep 16, 2026 / receipt

Achieve Gross Margin Target 50→55%

ir_statement / Sep 16, 2026 / receipt

Drive Adjusted EBITDA Margin 20→25%

ir_statement / Sep 16, 2026 / receipt

Manage Cost Of Doing Business 35→30%

ir_statement / Sep 16, 2026 / receipt

Cost optimization

ir_statement / Sep 16, 2026 / receipt

Gross margin improved by 100 basis points over prior year period primarily due to the following impacts:

ir_statement / Sep 16, 2026 / receipt

Lower costs of specialty chemicals used in the formulation of our products

ir_statement / Sep 16, 2026 / receipt

Achieve Operational Excellence in Supply Chain

ir_statement / Sep 16, 2026 / receipt

Drive Productivity Through Enhanced Systems

ir_statement / Sep 16, 2026 / receipt