Financial Analysis

COMMITMENTS AND CONTINGENCIES Purchase Commitments As of June 30, 2026, we had purchase commitments to third-party manufacturers, primarily for materials and supplies used in the manufacture of our products, for an aggregate of $232.1 million. We expect to fulfill our commitments under these agreements in the normal course of business, and as such, no liability has been recorded. Other We are regularly subject to, and are currently undergoing, audits by various tax authorities in the U.S. and several foreign jurisdictions, including customs duties, import, and other taxes for prior tax years. During our normal course of business, we may make certain indemnities, commitments, and guarantees under which we may be required to make payments in relation to certain matters. We cannot determine a range of estimated future payments and have not recorded any liability for such payments in the accompanying condensed consolidated balance sheets. See Note 15 Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"BORROWINGS Our long-term borrowings were as follows: Maturity Stated Interest Rate Effective Interest Rate June 30, 2026 December 31, 2025 (in thousands) Notes issuance of $350.0 million 2029 4.250 % 4.64 % $ 350,000 $ 350,000 Notes issuance of $350.0 million 2031 4.125 % 4.35 % 350,000 350,000 Term Loan B Facility 2029 500,000 500,000 Revolving Facility 2027 134,000 62,000 Total face value of long-term borrowings 1,334,000 1,262,000 Less: Unamortized issuance costs 26,342 31,115 Total long-term borrowings $ 1,307,658 $ 1,230,885 At June 30, 2026, and December 31, 2025, $10.2 million of accrued interest related to our borrowings was reported in Accounts payable in the condensed consolidated balance sheets. Senior Revolving Credit Facility In July 2019, the Company and certain of its subsidiaries (the Borrowers) entered into a Second Amended and Restated Credit Agreement (as amended, the Credit Agreement), with the lenders named therein and PNC Bank, National Association, as a lender and administrative agent for the lenders. Since that time, we have amended the Credit Agreement, which, as amended to date, provides for a revolving credit facility of $1.0 billion, which can be increased by an additional $400.0 million subject to certain conditions (the Revolving Facility). Borrowings under the Credit Agreement bear interest at a variable interest rate based on (A) a Base Rate (defined as the highest of (i) the Overnight Bank Funding Rate (as defined in the Credit Agreement), pl …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenues by reportable operating segment, geography, and channel were: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Crocs Brand: North America: Wholesale $ 152,549 $ 166,528 $ 290,946 $ 337,210 Direct-to-consumer 306,184 290,602 513,713 488,437 Total North America (1) 458,733 457,130 804,659 825,647 International: Wholesale 288,950 298,151 596,375 604,274 Direct-to-consumer 252,754 204,309 366,819 291,278 Total International 541,704 502,460 963,194 895,552 Total Crocs Brand $ 1,000,437 $ 959,590 $ 1,767,853 $ 1,721,199 Crocs Brand: Total Wholesale $ 441,499 $ 464,679 $ 887,321 $ 941,484 Total Direct-to-consumer 558,938 494,911 880,532 779,715 Total Crocs Brand 1,000,437 959,590 1,767,853 1,721,199 HEYDUDE Brand: Wholesale 82,564 99,760 165,966 210,453 Direct-to-consumer 96,467 90,023 167,106 155,054 Total HEYDUDE Brand (2) 179,031 189,783 333,072 365,507 Total consolidated revenues $ 1,179,468 $ 1,149,373 $ 2,100,925 $ 2,086,706 (1) North America includes the United States and Canada. (2) The vast majority of HEYDUDE Brand revenues are derived from North America.

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FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements All of our derivative instruments are classified as Level 2 of the fair value hierarchy and are reported in the condensed consolidated balance sheets within either Prepaid expenses and other assets or Accrued expenses and other liabilities at June 30, 2026, and December 31, 2025. The fair values of our derivative instruments were an insignificant asset at June 30, 2026, and an insignificant asset and an insignificant liability at December 31, 2025. See Note 7 Derivative Financial Instruments for more information. The carrying amounts of our cash, cash equivalents, and restricted cash approximate their fair value and are classified as Level 1 of the fair value hierarchy. The carrying amounts of our accounts receivable, accounts payable, and current accrued expenses and other liabilities approximate their fair value as recorded due to the short-term maturity of these instruments and are classified as Level 2 of the fair value hierarchy. Our borrowing instruments are recorded at their carrying values in the condensed consolidated balance sheets, which may differ from their respective fair values. The Term Loan B Facility (as defined below) and the Notes (as defined below) are classified as Level 1 of the fair value hierarchy and are reported in our condensed consolidated balance sheet at face value, less unamortized issuance costs. The fair value of our Revolving Facility (as defined below) approximates its carrying value …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS, NET We evaluate the carrying value of our indefinite-lived intangible assets and goodwill at least annually or when an interim triggering event has occurred indicating potential impairment. Any impairment recorded is reflected as a non-cash adjustment to net income (loss) within cash flows from operating activities in the condensed consolidated statements of cash flows. There was no triggering event or impairment recorded during the three and six months ended June 30, 2026. During the three months ended June 30, 2025, there was a triggering event for the HEYDUDE Brand indefinite-lived intangible assets (which consists solely of the HEYDUDE trademark) (the trademark) and the HEYDUDE Brand reporting unit (the reporting unit) goodwill. The triggering event was due to downward revisions during the second quarter of the fiscal year ended 2025, to our internal HEYDUDE Brand forecast as a result of the extended time we believed it would take us to stabilize the HEYDUDE Brand and return it to growth. This was partly due to the projected impact of a weak U.S. consumer at the time of the triggering event, and the disproportionate impact of tariffs on HEYDUDE Brand products, which became evident in the second quarter of the fiscal year ended 2025. As a result, we completed quantitative assessments for the trademark and the reporting unit goodwill in the second quarter of the fiscal year ended 2025. For the quantitative assessments, we compared the estimat …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income tax expense and effective tax rates were: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands, except effective tax rate) Income (loss) before income taxes $ 263,923 $ (448,607) $ 442,767 $ (243,668) Income tax expense 59,036 43,675 100,324 88,511 Effective tax rate 22.4 % (9.7) % 22.7 % (36.3 %) During the three months ended June 30, 2026, income tax expense increased $15.4 million compared to the same period in 2025. The effective tax rate for the three months ended June 30, 2026, was 22.4% compared to an effective tax rate of (9.7)% for the same period in 2025. The change in the effective tax rate was the result of quarterly tax expense compared to the impact of the income (loss) before income taxes related to the impairments of the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill in the three months ended June 30, 2025. As a result of a prior year intra-entity transaction, the value of the intellectual property for tax purposes is subject to revaluation and therefore there are not similar impacts for tax as a result of the intellectual property impairment. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate due to differences in income tax rates between U.S. and foreign jurisdictions. During the six months ended June 30, 2026, income tax expense increased $11.8 million compared to the same period in 2025. The effective tax rate for th …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES Right-of-Use Assets and Operating Lease Liabilities Amounts reported in the condensed consolidated balance sheets were: June 30, 2026 December 31, 2025 (in thousands) Assets: Right-of-use assets $ 337,548 $ 338,669 Liabilities: Current operating lease liabilities $ 90,144 $ 85,772 Long-term operating lease liabilities 291,400 297,192 Total operating lease liabilities $ 381,544 $ 382,964 Lease Costs and Other Information Lease-related costs reported within Cost of sales and Selling, general and administrative expenses in our condensed consolidated statements of operations were: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Operating lease cost $ 28,528 $ 25,552 $ 56,581 $ 49,738 Short-term lease cost 3,209 3,432 5,859 6,392 Variable lease cost 16,615 15,894 22,440 21,483 Total lease costs $ 48,352 $ 44,878 $ 84,880 $ 77,613 The weighted average remaining lease term and discount rate related to our lease liabilities as of June 30, 2026, was 5.2 years and 6.5%, respectively. As of June 30, 2025, the weighted average remaining lease term and discount rate related to our lease liabilities was 5.8 years and 6.6%, respectively. Maturities The maturities of our operating lease liabilities were: As of June 30, 2026 (in thousands) 2026 (remainder of year) $ 48,749 2027 103,324 2028 83,059 2029 65,710 2030 49,653 Thereafter 104,462 Total future minimum lease payments 454,957 Less: imputed interest (73,413) Total operating lease liabiliti …

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New Accounting Pronouncements Not Yet Adopted Disaggregation of Income Statement Expenses In November 2024, with subsequent clarification in January 2025, the FASB issued authoritative guidance related to the disclosure of disaggregation of income statement expenses. This guidance becomes effective for annual periods beginning after December 15, 2026, with early adoption permitted, and should be applied on a prospective basis. We do not expect this standard to have a material impact on our consolidated financial statements, but it will require increased disclosures within the notes to our consolidated financial statements. Other new pronouncements issued but not effective until after June 30, 2026, are not expected to have a material impact on our condensed consolidated financial statements.

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REVENUES Revenues by reportable operating segment, geography, and channel were: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Crocs Brand: North America: Wholesale $ 152,549 $ 166,528 $ 290,946 $ 337,210 Direct-to-consumer 306,184 290,602 513,713 488,437 Total North America (1) 458,733 457,130 804,659 825,647 International: Wholesale 288,950 298,151 596,375 604,274 Direct-to-consumer 252,754 204,309 366,819 291,278 Total International 541,704 502,460 963,194 895,552 Total Crocs Brand $ 1,000,437 $ 959,590 $ 1,767,853 $ 1,721,199 Crocs Brand: Total Wholesale $ 441,499 $ 464,679 $ 887,321 $ 941,484 Total Direct-to-consumer 558,938 494,911 880,532 779,715 Total Crocs Brand 1,000,437 959,590 1,767,853 1,721,199 HEYDUDE Brand: Wholesale 82,564 99,760 165,966 210,453 Direct-to-consumer 96,467 90,023 167,106 155,054 Total HEYDUDE Brand (2) 179,031 189,783 333,072 365,507 Total consolidated revenues $ 1,179,468 $ 1,149,373 $ 2,100,925 $ 2,086,706 (1) North America includes the United States and Canada. (2) The vast majority of HEYDUDE Brand revenues are derived from North America.

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OPERATING SEGMENTS We have two reportable operating segments: the Crocs Brand and the HEYDUDE Brand. Each of the reportable operating segments derives its revenues from the sale of footwear and accessories to external customers. Additionally, Enterprise corporate costs include global corporate costs associated with both brands, including legal, information technology, human resources, and finance. Each segments performance is evaluated based on segment results without allocating Enterprise corporate expenses. Segment profits or losses include adjustments to eliminate inter-segment sales. Reconciling items between segment income from operations and income from operations consist of unallocated Enterprise corporate expenses. Our chief operating decision maker is Andrew Rees, Chief Executive Officer. Mr. Rees uses income from operations as a measure of profit or loss. Mr. Rees considers the performance of these measures against management expectations when making decisions about the allocation of operating and capital resources to each segment. We do not report asset information by segment because that information is not used to evaluate performance or allocate resources between segments. The following tables set forth information related to reportable operating segments: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Crocs Brand: Revenues $ 1,000,437 $ 959,590 $ 1,767,853 $ 1,721,199 Cost of sales 374,575 344,820 685,675 643,892 Selling …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncements Not Yet Adopted Disaggregation of Income Statement Expenses In November 2024, with subsequent clarification in January 2025, the FASB issued authoritative guidance related to the disclosure of disaggregation of income statement expenses. This guidance becomes effective for annual periods beginning after December 15, 2026, with early adoption permitted, and should be applied on a prospective basis. We do not expect this standard to have a material impact on our consolidated financial statements, but it will require increased disclosures within the notes to our consolidated financial statements. Other new pronouncements issued but not effective until after June 30, 2026, are not expected to have a material impact on our condensed consolidated financial statements.

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COMMON STOCK REPURCHASE PROGRAM During the three and six months ended June 30, 2026, we repurchased 2.3 million shares of our common stock at a cost of $250.6 million, including commissions. During the three months ended June 30, 2025, we repurchased 1.3 million shares of our common stock at a cost of $133.2 million, including commissions. During the six months ended June 30, 2025, we repurchased 1.9 million shares of our common stock at a cost of $194.1 million, including commissions. As of June 30, 2026, and December 31, 2025, we had an accrual recorded for the stock repurchase excise tax of $2.3 million and $5.5 million, respectively, which is reported in Accrued expenses and other liabilities and Treasury stock in our condensed consolidated balance sheets. As of June 30, 2026, we had remaining authorization to repurchase $496.2 million of our common stock, subject to restrictions under our Indentures, Credit Agreement, and Term Loan B Credit Agreement. On July 27, 2026, the Board approved a $1.5 billion increase to our share repurchase authorization, after which approximately $2.0 billion remained available for future common stock repurchases. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing