Financial Analysis

"COMMITMENTS AND CONTINGENCIES The Company is obligated to make rental payments under non-cancelable operating and finance leases. Aggregate future minimum rental payments required under these leases at December 31, 2025 are disclosed in Note 18, Leases . The Companys Verona, Missouri facility, while held by a prior owner, Syntex Agribusiness, Inc. (Syntex), was designated by the U.S. Environmental Protection Agency (the ""EPA"") as a Superfund site and placed on the National Priorities List in 1983 because of dioxin contamination on portions of the site. Remediation was conducted by Syntex under the oversight of the EPA and the Missouri Department of Natural Resources. The Company is indemnified by the sellers under its May 2001 asset purchase agreement covering its acquisition of the Verona, Missouri facility for potential liabilities associated with the Superfund site. One of the sellers, in turn, has the benefit of certain contractual indemnification by Syntex in relation to the implementation of the above-described Superfund remedy. In June 2023, in response to a Special Notice Letter received from the EPA in 2022, BCP Ingredients, Inc. (""BCP""), the Company's subsidiary that operates the site, Syntex, EPA, and the State of Missouri entered into an Administrative Settlement Agreement and Order on Consent (ASAOC) for a focused remedial investigation/feasibility study (""RI/FS"") under which (a) BCP will conduct a source investigation of potential source(s) of releases of …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents revenues disaggregated by revenue source. Sales and usage-based taxes are excluded from revenues: 2025 2024 2023 Product Sales Revenue $ 1,035,272 $ 951,947 $ 919,951 Royalty Revenue 1,889 1,737 2,488 Total Revenue $ 1,037,161 $ 953,684 $ 922,439 The following table presents revenues disaggregated by geography, based on customers' delivery addresses: 2025 2024 2023 United States $ 759,448 $ 723,300 $ 689,601 Foreign Countries 277,713 230,384 232,838 Total $ 1,037,161 $ 953,684 $ 922,439

DisaggregationOfRevenueTableTextBlock

"FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and the estimated fair values of the Company's financial instruments as defined by ASC 820, ""Fair Value Measurement"" at December 31, 2025 and 2024 are as follows: Carrying Amount Fair Value Measurements Level 1 Level 2 Level 3 December 31, 2025 Assets: Money market funds (1) $ 1,464 $ 1,464 $ $ Rabbi trust funds - current (2) 25 25 Rabbi trust funds - non-current (2) 12,773 12,773 December 31, 2024 Assets: Money market funds (1) $ 1,040 $ 1,040 $ $ Rabbi trust funds - non-current (2) 11,465 11,465 (1) Money market funds are categorized as cash equivalents. (2) Rabbi trust funds - current and Rabbi trust funds - non-current are included in ""Other current assets"" and ""Other non-current assets"" on the consolidated balance sheets, respectively. The Company's financial instruments also include accounts receivable, accounts payable, and accrued liabilities, which are carried at cost and approximate fair value due to the short-term maturity of these instruments. The carrying value of debt approximates fair value based upon prices of identical or similar instruments in the marketplace, which are considered Level 2 inputs. In addition, non-current assets includes rabbi trust funds related to the Company's deferred compensation plan. The money market and rabbi trust funds are valued using level 1 inputs, as defined by ASC 820, ""Fair Value Measurement.""" …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"INCOME TAXES The Companys effective tax rate for 2025, 2024 and 2023 was 22.2%, 22.8% , and 20.9%, respectively . The decrease from 2024 to 2025 is primarily due to a decrease in certain state and foreign taxes partially offset by lower tax benefits from stock-based compensation. On July 4, 2025, the One Big Beautiful Bill Act (""OBBBA""), which includes a broad range of tax provisions, was signed into law in the United States. While the OBBBA did not have material impact on the Company's annual effective tax rate in 2025, the Company will continue to assess its impact for future reporting periods. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance if it believes that such assets may not be recovered, taking into consideration historical …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company has both real estate leases and equipment leases. The main types of equipment leases include forklifts, trailers, printers and copiers, railcars, and trucks. Leases are categorized as both operating leases and finance leases. The Company elected the practical expedient to combine lease and non-lease components and recognizes the combined amount on the consolidated balance sheet. Management determined that since the Company has a centralized treasury function, the parent company would either fund or guarantee a subsidiary's loan for borrowing over a similar term. As such, the Company's management determined it is appropriate to utilize a corporate based borrowing rate for all locations. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. The Company reviews the discount rates quarterly. Based on the Company's risk rating, the Company applied the following discount rates for new leases entered into during 2025: (1) 1-2 years, 5.45% - 5.62% (2) 3-4 years, 6.04% - 6.21% (3) 5-9 years, 6.38% - 6.55% and (4) 10+ years, 7. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"REVOLVING LOAN On July 27, 2022, the Company entered into an Amended and Restated Credit Agreement (the ""2022 Credit Agreement"") with certain lenders in the form of a senior secured revolving credit facility, due on July 27, 2027. The 2022 Credit Agreement allows for up to $550,000 of borrowing. The loans may be used for working capital, letters of credit, and other corporate purposes and may be drawn upon at the Company's discretion. As of December 31, 2025 and 2024, the total balance outstanding on the 2022 Credit Agreement amounted to $164,000 and $190,000, respectively. There are no installment payments required on the revolving loans; they may be voluntarily prepaid in whole or in part without premium or penalty, and all outstanding amounts are due on the maturity date. Amounts outstanding under the 2022 Credit Agreement are subject to an interest rate equal to a fluctuating rate as defined by the 2022 Credit Agreement plus an applicable rate. The applicable rate is based upon the Companys consolidated net leverage ratio, as defined in the 2022 Credit Agreement, and the interest rate was 4.84% at December 31, 2025. The Company is also required to pay a commitment fee on the unused portion of the revolving loan, which is based on the Companys consolidated net leverage ratio as defined in the 2022 Credit Agreement and ranges from 0.150% to 0.225% (0.150% at December 31, 2025). The unused portion of the revolving loan amounted to $386,000 at December 31, 2025. The Compan …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements In December 2025, the FASB issued ASU 2025-11, ""Interim Reporting (Topic 270) - Narrow-Scope Improvements"". The ASU clarifies interim disclosure requirements and the applicability of Topic 270 and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The ASU is effective for fiscal years beginning after December 15, 2027, including interim periods within those those fiscal years. Upon adoption, the guidance can be applied prospectively or retrospectively. The Company is currently evaluating the impact of adopting ASU 2025-11 but does not expect the adoption to have a material impact on our consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, ""Income Statement - Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)."" The new guidance is intended to enhance transparency and disclosures by requiring public entities to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis. The ASU is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on the consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"EMPLOYEE BENEFIT PLANS Defined Contribution Plans The Company sponsors one 401(k) savings plan for eligible employees, which allows participants to make pretax or after tax contributions and the Company matches certain percentages of those contributions. The plan also has a discretionary profit sharing portion and matches 401(k) contributions with shares of the Companys Common Stock. All amounts contributed to the plan are deposited into a trust fund administered by independent trustees. The Company provided for matching 401(k) savings plan contributions of $4,794, $4,644, and $4,381 in 2025, 2024 and 2023, respectively. There were no profit sharing contributions in 2025 and 2024. Profit sharing contributions in 2023 were not material. The Company also sponsors various defined contribution plans for employees working in our foreign operations and matches certain employee contributions. These contributions are deposited into trust funds administered by independent trustees. The Company's contributions to these plans amounted to $814, $555, and $600 in 2025, 2024, and 2023, respectively. Postretirement Medical Plans The Company provides postretirement benefits in the form of two unfunded postretirement medical plans; one that is under a collective-bargaining agreement and covers eligible retired employees of the Verona, Missouri facility and a plan for executive officers of the Company who meet eligibility requirements as set forth in the Company's Officer Retiree Program. The …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

RELATED PARTY TRANSACTIONS The Company provides services under a contractual agreement to St. Gabriel CC Company, LLC. These services include accounting, information technology, quality control, and purchasing services, as well as operation of the St. Gabriel CC Company, LLC plant. The Company also sells raw materials to St. Gabriel CC Company, LLC. These raw materials are used in the production of finished goods that are, in turn, sold by Saint Gabriel CC Company, LLC to the Company for resale to unrelated parties. As such, the sale of these raw materials to St. Gabriel CC Company, LLC in this scenario lacks economic substance and therefore the Company does not include them in net sales within the consolidated statements of earnings. Payments for the services the Company provided amounted to $4,640, $4,425, and $4,363, respectively, for the years ended December 31, 2025, 2024, and 2023. The raw materials purchased and subsequently sold amounted to $39,480, $29,795, and $34,219, respectively, for the years ended December 31, 2025, 2024, and 2023. These services and raw materials are primarily recorded in cost of goods sold, net of the finished goods received from St. Gabriel CC Company, LLC of $32,820, $22,940, and $28,099, respectively, for the years ended December 31, 2025, 2024, and 2023. At December 31, 2025 and 2024, the Company had receivables of $4,225 and $3,893, respectively, recorded in accounts receivable from St. Gabriel CC Company, LLC for services rendered and r …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Revenue Recognition Revenues are recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration we expect to realize in exchange for those goods. The following table presents revenues disaggregated by revenue source. Sales and usage-based taxes are excluded from revenues: 2025 2024 2023 Product Sales Revenue $ 1,035,272 $ 951,947 $ 919,951 Royalty Revenue 1,889 1,737 2,488 Total Revenue $ 1,037,161 $ 953,684 $ 922,439 The following table presents revenues disaggregated by geography, based on customers' delivery addresses: 2025 2024 2023 United States $ 759,448 $ 723,300 $ 689,601 Foreign Countries 277,713 230,384 232,838 Total $ 1,037,161 $ 953,684 $ 922,439 Product Sales Revenues The Companys primary operation is the manufacturing and sale of health and nutrition ingredient products, in which the Company receives an order from a customer and fulfills that order. The Companys product sales are considered point-in-time revenue. Royalty Revenues Royalty revenue consists of agreements with customers to use the Companys intellectual property in exchange for a sales-based royalty. Royalties are considered over time revenue and are recorded in the Human Nutrition and Health segment. Contract Liabilities The Company records contract liabilities when cash payments are received or due in advance of performance, including amounts which are refundable. The Companys payment terms vary by the type and location of customers a …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT INFORMATION Balchem Corporation reports three reportable segments: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. The reportable segments are organized based on the end use of the products manufactured and sold. Sales and production of products outside of our reportable segments and other minor business activities are included in ""Other and Unallocated."" Human Nutrition and Health The Human Nutrition and Health (""HNH"") segment provides human grade choline nutrients and mineral amino acid chelated products through this segment for nutrition and health applications. Choline is recognized to play a key role in the development and structural integrity of brain cell membranes in infants, processing dietary fat, reproductive development and neural functions, such as memory and muscle function. The Company's mineral amino acid chelates, specialized mineral salts, and mineral complexes are used as raw materials for inclusion in premier human nutrition products; proprietary technologies have been combined to create an organic molecule in a form the body can readily assimilate. Sales growth for human nutrition applications is reliant on differentiation from lower-cost competitive products through scientific data, intellectual property and customers' appreciation of brand value. Consequently, the Company makes investments in such activities for long-term value differentiation. This segment also manufactures specialty vitamin K2, which plays …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"STOCKHOLDERS EQUITY Stock-Based Compensation All share-based payments, including grants of stock options, are recognized in the statements of earnings as operating expenses, based on their fair values. The Company has made an estimate of expected forfeitures, based on its historical experience, and is recognizing compensation cost only for those stock-based compensation awards expected to vest. The Companys results for the years ended December 31, 2025, 2024 and 2023 reflected the following compensation cost and such compensation cost had the following effects on net earnings: Increase/(Decrease) for the Year Ended December 31, 2025 2024 2023 Cost of sales $ 1,643 $ 1,716 $ 1,900 Operating expenses 16,414 14,960 14,152 Net earnings (14,100) (12,865) (12,375) On December 31, 2025, the Company had one share-based compensation plan under which awards may be granted, which is described below. In June 2017, the Companys shareholders approved the Balchem Corporation 2017 Omnibus Incentive Plan (2017 Plan) for officers, employees and directors of the Company and its subsidiaries. The 2017 Plan replaced the 1999 Stock Plan and amendments and restatements thereto (collectively to be referred to as the 1999 Plan""), which expired in April 2018. No further awards will be made under the 1999 Plan, and the shares that remained available for grant under the 1999 Plan will only be used to settle outstanding awards granted under the 1999 Plan and will not become available under the 2017 Pla …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"COMMITMENTS AND CONTINGENCIES The Company is obligated to make rental payments under non-cancelable operating and finance leases. Aggregate future minimum rental payments required under these leases at December 31, 2025 are disclosed in Note 18, Leases . The Companys Verona, Missouri facility, while held by a prior owner, Syntex Agribusiness, Inc. (Syntex), was designated by the U.S. Environmental Protection Agency (the ""EPA"") as a Superfund site and placed on the National Priorities List in 1983 because of dioxin contamination on portions of the site. Remediation was conducted by Syntex under the oversight of the EPA and the Missouri Department of Natural Resources. The Company is indemnified by the sellers under its May 2001 asset purchase agreement covering its acquisition of the Verona, Missouri facility for potential liabilities associated with the Superfund site. One of the sellers, in turn, has the benefit of certain contractual indemnification by Syntex in relation to the implementation of the above-described Superfund remedy. In June 2023, in response to a Special Notice Letter received from the EPA in 2022, BCP Ingredients, Inc. (""BCP""), the Company's subsidiary that owns and operates the site, Syntex, EPA, and the State of Missouri entered into an Administrative Settlement Agreement and Order on Consent (ASAOC) for a focused remedial investigation/feasibility study (""RI/FS"") under which (a) BCP will conduct a source investigation of potential source(s) of re …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents revenues disaggregated by revenue source: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Product Sales Revenue $ 283,363 $ 255,041 $ 553,579 $ 505,102 Royalty Revenue 634 426 1,127 884 Total Revenue $ 283,997 $ 255,467 $ 554,706 $ 505,986 The following table presents revenues disaggregated by geography, based on customers' delivery addresses: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 United States $ 205,193 $ 186,706 $ 402,575 $ 372,428 Foreign Countries 78,804 68,761 152,131 133,558 Total Revenue $ 283,997 $ 255,467 $ 554,706 $ 505,986

DisaggregationOfRevenueTableTextBlock

"FAIR VALUE OF FINANCIAL INSTRUMENTS The Company has a number of financial instruments, none of which are held for trading purposes. The Company estimates that the fair value of all financial instruments at June 30, 2026 and December 31, 2025 does not differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying condensed consolidated balance sheets. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value, and, accordingly, the estimates are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The following fair value hierarchy is used to classify assets and liabilities and the table below presents the carrying amounts and the estimated fair values of the Company's financial assets and liabilities measured on a recurring basis as defined by ASC 820, ""Fair Value Measurement."" Level 1 - Inputs are quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Inputs include observable inputs other than quoted prices in active markets. Level 3 - Inputs are unobservable inputs for which there is little or no market data available. Carrying Amount Fair Value Measurements Level 1 Level 2 Level 3 June 30, 2026 Assets: Money market funds ( …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"INCOME TAXES The Companys effective tax rate for the three months ended June 30, 2026 and 2025, was 22.8% and 21.9%, respectively. The higher effective tax rate for the quarter was primarily due to lower tax benefits from stock-based compensation . The effective tax rate for the six months ended June 30, 2026 and 2025, was 23.0% and 22.3%, respectively. The higher effective tax rate for the six months ended June 30, 2026 was primarily due to an increase in certain state taxes and lower tax benefits from stock-based compensation. On July 4, 2025, the One Big Beautiful Bill Act (""OBBBA"") was signed into law in the United States whi ch includes a broad range of tax provision. The Company has assessed that the OBBBA will not have a material impact on its estimated annual effective tax rate in 2026. The Company files income tax return s in the U.S. and in various states and foreign countries. As of June 30, 2026, in the major jurisdictions where the Company operates, it is generally no longer subject to income tax examinations by tax authorities for years before 2021. The Company had $6,945 and $6,731 of unrecognized tax benefits, which are included in ""Other long-term obligations"" on the Companys condensed consolidated balance sheets, as of June 30, 2026 and December 31, 2025, respectively. The Company includes interest expense or income as well as potential penalties on uncertain tax positions as a component of ""Income tax expense"" in the condensed consolidated statements …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company has both real estate leases and equipment leases. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. Based on the Company's risk rating, the Company applied the following discount rates for new leases entered into during the second quarter of 2026: (1) 1-2 years, 4.96% (2) 3-4 years, 5.55% (3) 5-9 years, 5.89% and (4) 10+ years, 6.61%. Right of use assets and lease liabilities at June 30, 2026 and December 31, 2025 are summarized as follows: Right of use assets June 30, 2026 December 31, 2025 Operating leases $ 12,703 $ 14,672 Finance leases 1,417 1,520 Total $ 14,120 $ 16,192 Lease liabilities - current June 30, 2026 December 31, 2025 Operating leases $ 3,172 $ 3,614 Finance leases 210 205 Total $ 3,382 $ 3,819 Lease liabilities - non-current June 30, 2026 December 31, 2025 Operating leases $ 9,895 $ 11,324 Finance leases 1,438 1,544 Total $ 11,333 $ 12,868 For the three and six months ended June 30, 2026 and 2025, the Company's total lease costs were as follows, which included amounts recognized in earnings, amou …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"REVOLVING LOAN On July 27, 2022, the Company entered into an Amended and Restated Credit Agreement (the ""2022 Credit Agreement"") with certain lenders in the form of a senior secured revolving credit facility, due on July 27, 2027. The 2022 Credit Agreement allows for up to $550,000 of borrowing. The loans may be used for working capital, letters of credit, and other corporate purposes and may be drawn upon at the Companys discretion. As of June 30, 2026 and December 31, 2025, the total balance outstanding on the 2022 Credit Agreement amounted to $152,000 and $164,000, respectively. There are no installment payments required on the revolving loans; they may be voluntarily prepaid in whole or in part without premium or penalty, and all outstanding amounts are due on the maturity date. Amounts outstanding under the 2022 Credit Agreement are subject to an interest rate equal to a fluctuating rate as defined by the 2022 Credit Agreement plus an applicable rate. The applicable rate is based upon the Companys consolidated net leverage ratio, as defined in the 2022 Credit Agreement, and the interest rate was 4.75% at June 30, 2026. The Company is also required to pay a commitment fee on the unused portion of the revolving loan, which is based on the Companys consolidated net leverage ratio as defined in the 2022 Credit Agreement and ranges from 0.150% to 0.225% (0.150% at June 30, 2026). The unused portion of the revolving loan amounted to $398,000 at June 30, 2026. The Company is …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Recently Issued Accounting Standards In November 2024, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2024-03, ""Income Statement - Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)."" The new guidance is intended to enhance transparency and disclosures by requiring public entities to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis. The ASU is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. While the adoption of ASU 2024-03 is not expected to have an effect on our consolidated financial statements, it is expected to result in incremental disclosures within the notes to our consolidated financial statements."

NewAccountingPronouncementsPolicyPolicyTextBlock

"EMPLOYEE BENEFIT PLANS Defined Contribution Plans The Company sponsors one 401(k) savings plan for eligible employees, which allows participants to make pretax or after tax contributions, and the Company matches certain percentages of those contributions with shares of the Companys Common Stock. The plan also has a discretionary profit sharing portion. All amounts contributed to the plan are deposited into a trust fund administered by independent trustees. The Company also sponsors various defined contribution plans for employees working in our foreign operations and matches certain employee contributions. These contributions are deposited into trust funds administered by independent trustees. Postretirement Medical Plans The Company provides postretirement benefits in the form of two unfunded postretirement medical plans; one that is under a collective bargaining agreement and covers eligible retired employees of the Verona facility and one for officers of the Company pursuant to the Balchem Corporation Officer Retiree Program. Net periodic benefit costs for such retirement medical plans were as follows: Six Months Ended June 30, 2026 2025 Service cost $ 46 $ 58 Interest cost 26 35 Amortization of gain (27) (5) Net periodic benefit cost $ 45 $ 88 T he amounts record ed for these obligations on the Companys condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025 are $1,128 and $1,122, respectively, and are included in ""Other long-term obligations"" o …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

RELATED PARTY TRANSACTIONS The Company provides services under a contractual agreement to St. Gabriel CC Company, LLC. These services include accounting, information technology, quality control, and purchasing services, as well as operation of the St. Gabriel CC Company, LLC plant. The Company also sells raw materials to St. Gabriel CC Company, LLC. These raw materials are used in the production of finished goods that are, in turn, sold by Saint Gabriel CC Company, LLC to the Company for resale to unrelated parties. As such, the sale of these raw materials to St. Gabriel CC Company, LLC in this scenario lacks economic substance and therefore the Company does not include them in net sales within the condensed consolidated statements of earnings. Payments for the services the Company provided amounted to $1,172 and $2,289 for the three and six months ended June 30, 2026, respectively, and $1,212 and $2,339 for the three and six months ended June 30, 2025, respectively. The raw materials purchased and subsequently sold amounted to $11,501 and $21,452 for the three and six months ended June 30, 2026, respectively, and $10,821 and $20,746 for the three and six months ended June 30, 2025, respectively. These services and raw materials are primarily recorded in cost of goods sold, net of the finished goods received from St. Gabriel CC Company, LLC of $9,103 and $17,148 during the three and six months ended June 30, 2026, respectively, and $8,983 and $16,901 for the three and six mon …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE The following table presents revenues disaggregated by revenue source: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Product Sales Revenue $ 283,363 $ 255,041 $ 553,579 $ 505,102 Royalty Revenue 634 426 1,127 884 Total Revenue $ 283,997 $ 255,467 $ 554,706 $ 505,986 The following table presents revenues disaggregated by geography, based on customers' delivery addresses: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 United States $ 205,193 $ 186,706 $ 402,575 $ 372,428 Foreign Countries 78,804 68,761 152,131 133,558 Total Revenue $ 283,997 $ 255,467 $ 554,706 $ 505,986

RevenueFromContractWithCustomerTextBlock

"SEGMENT INFORMATION Balchem Corporation reports three reportable segments: Human Nutrition and Health (""HNH""), Animal Nutrition and Health (""ANH""), and Specialty Products (""SP""). Sales and production of products outside of our reportable segments and other minor business activities are included in ""Other and Unallocated"". The Company's Chief Operating Decision Maker (""CODM"") is the Chief Executive Officer. The CODM receives a profit and loss reporting package which provides segment information including revenue, cost of goods sold, gross margin, total operating expenses, and earnings from operations. The CODM utilizes this monthly profit and loss reporting package to analyze segment performance and appropriately allocate resources. Pursuant to ASU 2023-07, ""Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures"", the significant segment information is summarized as follows: For the Three Months Ended June 30, 2026 HNH ANH SP Other and Unallocated Total Net sales $ 176,894 $ 64,454 $ 40,511 $ 2,138 $ 283,997 Cost of sales 109,873 (1) 50,087 (1) 17,942 (1) 2,412 (1) 180,314 Gross margin 67,021 14,367 22,569 (274) 103,683 Operating expenses 24,640 (2) 9,140 (3) 9,676 (4) 1,006 (5) 44,462 Earnings from operations 42,381 5,227 12,893 (1,280) 59,221 Other expenses: Interest expense, net 1,938 Other income, net (498) 1,440 Earnings before income tax expense 57,781 Income tax expense 13,166 Net earnings $ 44,615 (1) Cost of sales are primarily com …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"STOCKHOLDERS' EQUITY Stock-Based Compensation The Companys results for the three and six months ended June 30, 2026 and 2025 reflected the following stock-based compensation cost, and such compensation cost had the following effects on net earnings: Increase/(Decrease) for the Increase/(Decrease) for the Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cost of sales $ 647 $ 536 $ 1,178 $ 974 Operating expenses 5,274 5,302 10,099 8,674 Net earnings (4,580) (4,577) (8,700) (7,506) The Company's omnibus incentive plan (""the Plan"") allows for the granting of stock awards and options to purchase common stock. Both incentive stock options and nonqualified stock options can be awarded under the plan. The Company has approved and reserved a number of shares to be issued upon exercise of the outstanding options that is adequate to cover all exercises. As of June 30, 2026, the Plan had 505,548 shares available for future awards. Accounting Standards Codification (""ASC"") 718, ""Compensation-Stock Compensation"", requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The weighted average fair values of the stock options granted under the Plan were calculated using either the Black-Scholes model or the Binomial model, whichever was deemed to be most appropriate. For the six months ended June 30, 2026, the fair value of each option grant was estimated …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing