Financial Analysis

BUSINESS COMBINATION Acquisition of Penelope Description of the Transaction . On May 8, 2023, the Company entered into a definitive agreement to acquire 100 percent of the equity of Penelope, and subsequently completed the acquisition on June 1, 2023 (the Acquisition). Penelope, prior to the Acquisition, was a family and founder-owned and operated American whiskey company with a diverse portfolio of high-quality whiskeys in the premium plus price tier. As a result of the Acquisition, the Company enhanced its presence in the growing American whiskey category and expanded its portfolio of premium plus price tier brands. Following the Acquisition, Penelope became a wholly owned subsidiary of the Company and its financial results are included within the Branded Spirits segment. The aggregate consideration paid by the Company in connection with the Acquisition was $105,000 in cash paid at closing, with further additional potential earn-out consideration of up to a maximum cash payout of $110,800 if certain performance conditions, measured through December 31, 2025, are met. The consideration is subject to customary purchase price adjustments related to, among other things, net working capital and acquired cash. The consideration paid at closing included a preliminary estimated purchase price adjustment. During the year ended December 31, 2023, the Company finalized the net working capital adjustments, which decreased the cash consideration from $105,000 at closing to $104,638 at D …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Commitments. The Company has completed several projects that were financed using industrial revenue bonds in the state of Kentucky. Traditionally, industrial revenue bonds have been used as an economic development tool in the state to attract desirable businesses, including business in the bourbon industry, and have allowed a 15 to 40 year real property tax abatement on the Companys renovated and newly-constructed warehouse buildings and distilleries in Kentucky. As of December 31, 2025, approximately $50,000 of the Companys facilities in Nelson County Kentucky and approximately $39,300 of the Companys facilities in Williamstown, Kentucky were financed with industrial revenue bonds. The city then leased the facilities back to the Company under a capital lease, the terms of which provide for the payment of basic rent in an amount sufficient to pay principal and interest on the bonds. The Companys obligation to pay rent under the lease is in the same amount and due on the same date as the obligation to pay debt service on the bonds which the Company holds. The lease permits the Company to present the bonds at any time for cancellation, upon which our obligation to pay basic rent would be canceled. At the bonds maturity the facilities will revert to the Company without costs. If the Company were to present the bonds for cancellation prior to maturity, a nominal fee could be incurred. The Company may not be able to use industrial revenue bonds in the …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

CORPORATE BORROWINGS Indebtedness Outstanding. The following table presents the Companys outstanding indebtedness: December 31, Description (a) 2025 2024 Credit Agreement - Revolver, 4.82% (variable rate) due 2030 $ 42,000 $ 105,000 Convertible Note, 1.88% (fixed rate) due 2041 201,250 201,250 Note Purchase Agreement Series A Senior Secured Notes, 3.53% (fixed rate) due 2027 5,600 8,800 Senior Secured Notes, 3.80% (fixed rate) due 2029 11,200 14,400 Total indebtedness outstanding 260,050 329,450 Less unamortized loan fees (b) (7,732) (5,909) Total indebtedness outstanding, net 252,318 323,541 Less current maturities of long-term debt (6,400) (6,400) Long-term debt $ 245,918 $ 317,141 (a) Interest rates are as of December 31, 2025. (b) Loan fees are being amortized over the life of the debt agreements. Credit Agreement. On February 14, 2020, the Company entered into a credit agreement (the Credit Agreement) with multiple participants led by Wells Fargo Bank, National Association (Wells Fargo Bank), which provided for a $300,000 revolving credit facility and had a maturity date of May 14, 2026. On April 24, 2025, the Company entered into an Amended and Restated Credit Agreement (the A&R Credit Agreement) with Wells Fargo Bank, as administrative agent, swingline lender, and issuing lender, and the other lenders and parties thereto. The A&R Credit Agreement amends and restates the Companys existing Credit Agreement, extending the maturity date to April 24, 2030. The A&amp …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregation of Sales. The following table presents the Companys sales disaggregated by segment and major products and services. Year Ended December 31, 2025 2024 2023 Branded Spirits Premium plus $ 116,730 $ 110,991 $ 105,465 Mid 59,486 63,454 75,676 Value 32,606 42,100 47,907 Other 24,119 24,271 24,885 Total Branded Spirits 232,941 240,816 253,933 Distilling Solutions Brown goods 128,450 265,873 289,191 Warehouse services 32,388 33,430 28,632 White goods and other co-products 20,562 32,901 133,031 Total Distilling Solutions 181,400 332,204 450,854 Ingredient Solutions Specialty wheat starches 68,124 76,005 66,050 Specialty wheat proteins 39,915 41,768 48,291 Commodity wheat starch 10,371 12,351 16,413 Commodity wheat protein 3,109 481 982 Biofuel and other 515 Total Ingredient Solutions 122,034 130,605 131,736 Total Sales $ 536,375 $ 703,625 $ 836,523 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLE ASSETS Definite-Lived Intangible Assets. The Company acquired definite-lived intangible assets in connection with various acquisitions of businesses prior to 2025. The distributor relationships have a carrying value of $52,206, net of accumulated amortization of $12,894. The distributor relationships have a useful life of 20 years. The amortization expense for each of the years ended December 31, 2025 and 2024 was $3,255. The weighted average remaining amortization period at December 31, 2025 for definite-lived intangible assets is 16.1 years. As of December 31, 2025, the expected future amortization expense related to definite-lived intangible assets are as follows: 2026 $ 3,255 2027 3,255 2028 3,255 2029 3,255 2030 3,255 Thereafter 35,931 Total $ 52,206 Goodwill. Changes in carrying amount of goodwill by business segment were as follows: Distilling Solutions Branded Spirits Ingredient Solutions Total Balance at December 31, 2023 (a) $ $ 321,544 $ $ 321,544 Impairment (73,755) (73,755) Balance at December 31, 2024 247,789 247,789 Impairment (132,122) (132,122) Balance at December 31, 2025 $ $ 115,667 $ $ 115,667 (a) There were no accumulated impairment losses recorded at December 31, 2023. 2025 Impairment Analysis. As part of its annual impairment testing, the Company performed a quantitative assessment of Goodwill. The Company engaged a third party valuation specialist to assist in comparing the fair value of the Branded Spirits reporting unit …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income (loss) before income taxes for the year ended December 31, 2025 was a loss of $100,350, of which $2,376 relates to foreign income before income taxes and $102,726 relates to domestic loss before income taxes. Income tax expense is composed of the following: Year Ended December 31, 2025 2024 2023 Current: Federal $ 8,469 $ 28,234 $ 32,296 State 2,127 5,269 5,926 Foreign 291 131 330 10,887 33,634 38,552 Deferred: Federal (1,734) 625 (4,100) State (1,841) (238) 120 Foreign 170 (44) 44 (3,405) 343 (3,936) Total $ 7,482 $ 33,977 $ 34,616 Income tax expense also included tax expense allocated to comprehensive income for 2025, 2024, and 2023 of $15, $16, and $172, respectively (see the Consolidated Statements of Comprehensive Income (Loss)). A reconciliation of income tax expense and effective tax rate at the normal statutory federal rate to income tax expense and effective tax rate included in the accompanying Consolidated Statements of Income (Loss) for 2025 is as follows: Year Ended December 31, 2025 Amount Percent Expected provision at federal statutory rate $ (21,074) 21.0 % State and local income taxes, net of federal income tax effect (a) 226 (0.2) Foreign tax effects 462 (0.5) Tax credits (592) 0.6 Nontaxable or nondeductible items Nondeductible goodwill impairment 27,745 (27.7) Share-based compensation 957 (1.0) Other Nontaxable or nondeductible items (69) 0.1 Changes in unrecognized tax benefits (11) Other adjustments (162) 0.2 Effective tax rate $ 7,48 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company has operating leases for railcars, computer equipment, office spaces, warehouse facilities, a distribution facility, fulfillment center, and certain equipment. The Company has no finance leases. Leases with terms of twelve months or less are not recorded on the Companys Consolidated Balance Sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Lease components are accounted for separately from non-lease components, such as common-area maintenance, based on the relative, observable stand-alone prices of the components. The Companys leases have remaining lease terms of less than one year to ten years, some of which may include options to extend the lease. Options to renew the Companys leases were not considered when assessing the value of the right-of-use assets because the Company is not reasonably certain that it will assert the options to renew the leases. As most of the Companys leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The following table provides supplemental balance sheet classification information related to leases: December 31, Leases Balance Sheet Classification 2025 2024 Assets Operating Operating lease right-of-use assets, net $ 13,847 $ 15,540 Total leased assets $ 13,847 $ 15,540 Liabilities Current Operating Accrued expenses $ 3,7 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Standard Updates. ASU 2023-09, Improvements to Income Tax Disclosures, requires improved disclosures related to the rate reconciliation and income taxes paid. This ASU requires companies to reconcile the income tax expense attributable to continuing operations to the statutory federal income tax rate applied to pre-tax income from continuing operations. Additionally, this ASU requires companies to disclose the total amount of income taxes paid during the period. This ASU is effective for annual periods beginning after December 15, 2024 with early adoption permitted. The guidance is required to be applied on a prospective basis with the option to apply retrospectively to all prior periods presented in the financial statements. The Company adopted this ASU during the period on a prospective basis. The ASU only required additional disclosures and did not impact the amount of tax reflected in the tax provision. See Note 8, Income Taxes, for more information. Recently Issued Accounting Pronouncements. ASU 2024-03, Disaggregation of Income Statement Expenses, requires disaggregated disclosures in the notes to the consolidated financial statements of certain categories of expenses that are included in expense line items on the Consolidated Statements of Income. This ASU is effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The guidance is required t …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS 401(k) Plans. The Company has established 401(k) plans covering all U.S. employees after certain eligibility requirements are met. Amounts charged to operations for employer contributions related to the plans totaled $2,820, $2,836, and $2,810 for 2025, 2024, and 2023, respectively. Post-Employment Benefits. The Company sponsors life insurance coverage as well as medical benefits, including prescription drug coverage, to certain retired employees and their spouses. In 2014, the Company made a change to the plan to terminate post-employment health care and life insurance benefits for retirees and employees, except for a specified grandfathered group. As of December 31, 2025 the total current and non-current benefit obligations are immaterial. Share-Based Compensation Plans. The Company has one equity-based compensation plan, the 2024 Equity Incentive Plan (the 2024 Plan), which was approved by the stockholders of the Company in May 2024. The 2024 Plan initially authorized 1,319,320 shares for issuance, subject to the adjustment and add-back provision of the 2024 Plan. The 2024 Plan provides for the awarding of stock options, stock appreciation rights, shares of restricted stock, RSUs, performance stock units (PSUs), and other stock-based awards for executive officers and other employees, as well as non-employee directors and certain consultants and advisors. As of December 31, 2025, 907,717 shares remain available for issuance under the 2024 Plan, with P …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE The Company generates revenue from the Branded Spirits segment by the sale of products and by providing contract bottling services. The Company generates revenue from the Distilling Solutions segment by the sale of products and by providing warehouse services related to the storage and aging of customer products. The Company generates revenue from the Ingredient Solutions segment by the sale of products. Revenue related to sales of products is recognized at a point in time, whereas revenue generated from warehouse services and contract bottling services are recognized over time. Contracts with customers include a single performance obligation (either the sale of products or the provision of warehouse services and contract bottling services). Disaggregation of Sales. The following table presents the Companys sales disaggregated by segment and major products and services. Year Ended December 31, 2025 2024 2023 Branded Spirits Premium plus $ 116,730 $ 110,991 $ 105,465 Mid 59,486 63,454 75,676 Value 32,606 42,100 47,907 Other 24,119 24,271 24,885 Total Branded Spirits 232,941 240,816 253,933 Distilling Solutions Brown goods 128,450 265,873 289,191 Warehouse services 32,388 33,430 28,632 White goods and other co-products 20,562 32,901 133,031 Total Distilling Solutions 181,400 332,204 450,854 Ingredient Solutions Specialty wheat starches 68,124 76,005 66,050 Specialty wheat proteins 39,915 41,768 48,291 Commodity wheat starch 10,371 12,351 16,413 Commodity wheat protein 3 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

OPERATING SEGMENTS At December 31, 2025, the Company had three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. The Companys operating segments are based on the financial information the chief operating decision maker uses to allocate resources and evaluate performance of the business. During the year ended December 31, 2025, the chief operating decision maker was the Companys Chief Executive Officer. The Branded Spirits segment consists of a portfolio of high quality branded spirits which are produced through the distilleries and bottling facilities. The Distilling Solutions segment consists of food grade alcohol (primarily brown goods) and distillery co-products, such as distillers feed (commonly called dried distillers grain in the industry). The Distilling Solutions segment also includes warehouse services, such as barrel put away, barrel storage, and barrel retrieval services. The Ingredient Solutions segment consists of specialty starches and proteins as well as commodity starches and proteins. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Operating income for each segment is based on sales less identifiable operating expenses. The CODM used the operating income to evaluate the segment profitability and to assess the actual results compared to the budget. Non-direct selling, gene …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

EQUITY AND EPS Capital Stock. Common stockholders are entitled to elect four of the nine members of the Companys Board of Directors, while Preferred stockholders are entitled to elect the remaining five members. All directors are elected annually for a one year term. Stockholders who own 10 percent or more of the outstanding Common Stock or preferred stock have the right to call a special meeting of stockholders. Common stockholders are not entitled to vote with respect to a merger, dissolution, lease, exchange or sale of substantially all of the Companys assets, or on an amendment to the Articles of Incorporation, unless such action would increase or decrease the authorized shares or par value of the Common Stock or preferred stock, or change the powers, preferences or special rights of the Common Stock or preferred stock so as to affect the Common stockholders adversely. Generally, Common stockholders and Preferred stockholders vote as separate classes on all other matters requiring shareholder approval. EPS. The following table presents the computations of basic and diluted EPS: Year Ended December 31, 2025 2024 2023 Operations: Net income (loss) (a) $ (107,832) $ 34,465 $ 107,130 Net loss attributable to noncontrolling interest 23 198 345 Income attributable to participating securities (unvested shares and units) (b) 1,295 (373) (1,074) Net income (loss) used in EPS calculation $ (106,514) $ 34,290 $ 106,401 Share information: Basic weighted average common shares (c) 21,3 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS Dividend Declaration. On February 25, 2026, the Company announced a quarterly dividend payable to stockholders of record of the Companys Common Stock, resulting in dividend equivalents payable to RSU holders, of $0.12 per share and per RSU. The dividend and dividend equivalents are payable on March 27, 2026, to stockholders of record and RSU holders as of March 13, 2026. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies The Company and its subsidiaries are, from time to time, a party to legal and regulatory proceedings arising in the ordinary course of its business. The Company accrues estimated costs for a contingency when management believes that a loss is probable and can be reasonably estimated. On December 16, 2024, a putative securities class action, captioned Operating Engineers Construction Industry Miscellaneous Pension Fund v. MGP Ingredients, Inc. et al., was filed in the United States District Court for the Southern District of New York against the Company, two of its former Chief Executive Officers and its current Chief Financial Officer (the Operating Engineers Action). The Operating Engineers Action was brought on behalf of a putative class who acquired publicly traded MGP common stock between May 4, 2023 and October 30, 2024. On February 13, 2025, a second putative securities class action, captioned Bronstein v. MGP Ingredients, Inc. et al., was filed in the United States District Court for the Southern District of New York against the same defendants (the Bronstein Action). The Bronstein Action was brought on behalf of a putative class who acquired publicly traded MGP securities between May 4, 2023 and October 30, 2024. Both actions assert securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, in connection with statements made in the Companys quarterly earnings releas …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Corporate Borrowings The following table presents the Companys outstanding indebtedness: Description (a) June 30, 2026 December 31, 2025 Credit Agreement - Revolver, 4.99% (variable rate) due 2030 $ 162,000 $ 42,000 Convertible Senior Notes, 1.88% (fixed rate) due 2041 201,250 201,250 Note Purchase Agreement Series A Senior Secured Notes, 3.53% (fixed rate) due 2027 4,000 5,600 Senior Secured Notes, 3.80% (fixed rate) due 2029 9,600 11,200 Total indebtedness outstanding 376,850 260,050 Less unamortized loan fees (b) (7,254) (7,732) Total indebtedness outstanding, net 369,596 252,318 Less current maturities of long-term debt (6,400) (6,400) Long-term debt $ 363,196 $ 245,918 (a) Interest rates are as of June 30, 2026. (b) Loan fees are being amortized over the life of the debt agreements. Credit Agreement. On February 14, 2020, the Company entered into a credit agreement (the Credit Agreement) with multiple participants led by Wells Fargo Bank, National Association (Wells Fargo Bank) which provided for a $300,000 revolving credit facility and had a maturity date of May 14, 2026. On April 24, 2025, the Company entered into an Amended and Restated Credit Agreement (as amended, the A&R Credit Agreement) with Wells Fargo Bank, as administrative agent, swingline lender, and issuing lender, and the other lenders and parties thereto. The A&R Credit Agreement amends and restates the Companys existing Credit Agreement, extending the maturity date to April 24, 2030. The A&R …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregation of Sales. The following table presents the Companys sales disaggregated by segment and major products and services: Quarter Ended June 30, Year to Date Ended June 30, 2026 2025 2026 2025 Branded Spirits Premium plus $ 32,645 $ 31,099 $ 55,296 $ 53,417 Mid 16,225 15,493 29,468 28,520 Value 8,324 8,936 14,827 16,277 Other 2,436 4,992 4,276 10,533 Total Branded Spirits 59,630 60,520 103,867 108,747 Distilling Solutions Brown goods 14,260 35,057 29,169 68,713 Warehouse services 8,622 8,001 16,914 16,078 White goods and other co-products 6,338 6,942 11,137 12,152 Total Distilling Solutions 29,220 50,000 57,220 96,943 Ingredient Solutions Specialty wheat starches 18,889 18,474 37,305 34,327 Specialty wheat proteins 12,749 12,612 25,457 19,960 Commodity wheat starches 2,670 3,061 5,287 5,780 Commodity wheat proteins 76 827 459 1,390 Biofuel and other 1,123 1,189 Total Ingredient Solutions 35,507 34,974 69,697 61,457 Total sales $ 124,357 $ 145,494 $ 230,784 $ 267,147 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets Definite-Lived Intangible Assets. The Company acquired definite-lived intangible assets in connection with various acquisitions of businesses prior to 2026. The distributor relationships have a carrying value of $50,579, net of accumulated amortization of $14,521. The distributor relationships have a useful life of 20 years. The amortization expense for the quarters ended June 30, 2026 and 2025 was $814, respectively. The amortization expense for the year to date ended June 30, 2026 and 2025 was $1,627, respectively. As of June 30, 2026, the expected future amortization expense related to definite-lived intangible assets is as follows: Remainder of 2026 $ 1,628 2027 3,255 2028 3,255 2029 3,255 2030 3,255 Thereafter 35,931 Total $ 50,579 Goodwill. Changes in the carrying amount of goodwill by business segment were as follows: Distilling Solutions Branded Spirits Ingredient Solutions Total Balance, December 31, 2025 $ $ 115,667 $ $ 115,667 Impairment (115,667) (115,667) Balance, June 30, 2026 $ $ $ $ Impairment Analysis. During the first quarter of 2026, the Company experienced a decrease in stock price and market capitalization, and as a result, the Company performed a quantitative assessment of goodwill. The Company engaged a third party valuation specialist to assist in comparing the fair value of the Branded Spirits reporting unit to the respective carrying value. The estimate of fair value of the Companys reporting unit was calculated u …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The Companys tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the estimated annual effective tax rate is updated and a year to date adjustment is made to the provision. The Companys quarterly effective tax rate can be subject to significant change due to the effect of discrete items arising in a given quarter. Income tax expense (benefit) for the quarter and year to date ended June 30, 2026 was $3,063 and $(36,802), respectively, for an effective tax rate of 20.3 percent and 23.1 percent, respectively. The effective tax rate for the quarter ended June 30, 2026 differed from the 21 percent U.S. federal statutory rate on pretax income primarily due to the impact of federal and state tax credits and the discrete impact of a state law change on the Companys deferred tax balances, partially offset by state income tax and income tax on foreign subsidiaries. The effective tax rate for the year to date ended June 30, 2026 differed from the 21 percent U.S. federal statutory rate on pretax income primarily due to the discrete tax impact related to the vesting of share-based awards, as well as state income tax and income tax on foreign subsidiaries, partially offset by federal and state tax credits and the discrete impact of a favorable state law change on the Companys deferred tax balances. Additionally, the favorable tax impact for the year to date ended June …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Standard Updates. ASU 2024-04, Induced Conversions of Convertible Debt Instruments, clarifies the requirement for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions or extinguishments. This ASU is effective for annual periods beginning after December 15, 2025. Early adoption is permitted and can be applied either on a prospective basis or retrospective basis. The Company adopted this ASU during the first quarter of 2026, and it had no impact on the Companys consolidated financial statements. Recently Issued Accounting Pronouncements. ASU 2024-03, Disaggregation of Income Statement Expenses , requires disaggregated disclosures in the notes to the consolidated financial statements of certain categories of expenses that are included in expense line items on the Consolidated Statements of Income. This ASU is effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The guidance is required to be applied on a prospective basis with the option to apply retrospectively to all prior periods presented in the consolidated financial statements. The Company is currently evaluating the impact of this ASU on the Companys consolidated financial statements. ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software, amends certain aspects of the accounting for software costs, in …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee and Non-Employee Benefit Plans Share-Based Compensation Plans . The Company has one equity-based compensation plan, the Amended and Restated 2024 Equity Incentive Plan (the A&R 2024 Plan). The 2024 Equity Incentive Plan (the 2024 Plan) authorized 1,319,320 shares for issuance, subject to the adjustment and add-back provision of the 2024 Plan. On May 13, 2026, the stockholders of the Company approved the A&R 2024 Plan, which increased the number of shares available under the 2024 Plan by an additional 750,000 shares. The A&R 2024 Plan provides for the awarding of stock options, stock appreciation rights, shares of restricted stock, RSUs, performance stock units (PSUs), and other stock-based awards for executive officers and other employees, as well as non-employee directors and certain consultants and advisors. As of June 30, 2026, 1,145,211 shares remain available for issuance under the A&R 2024 Plan. PSUs are counted at the target level established on the awards grant date and are adjusted after the performance period ends and the Human Resources and Compensation Committee has certified the achievement of their performance goals. Deferred Compensation Plan. The Company established an unfunded Executive Deferred Compensation Plan (the EDC Plan) effective June 30, 2018, with a purpose to attract and retain highly-compensated key employees by providing participants with an opportunity to defer receipt of a portion of their salary, bonus, and other speci …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue The Company generates revenue from the Branded Spirits segment by the sale of products and by providing contract bottling services. The Company generates revenue from the Distilling Solutions segment by the sale of products and by providing warehouse services related to the storage and aging of customer products. The Company generates revenue from the Ingredient Solutions segment by the sale of products. Revenue related to sales of products is recognized at a point in time, whereas revenue generated from warehouse services and contract bottling services are recognized over time. Contracts with customers include a single performance obligation (either the sale of products or the provision of warehouse services and contract bottling services). Disaggregation of Sales. The following table presents the Companys sales disaggregated by segment and major products and services: Quarter Ended June 30, Year to Date Ended June 30, 2026 2025 2026 2025 Branded Spirits Premium plus $ 32,645 $ 31,099 $ 55,296 $ 53,417 Mid 16,225 15,493 29,468 28,520 Value 8,324 8,936 14,827 16,277 Other 2,436 4,992 4,276 10,533 Total Branded Spirits 59,630 60,520 103,867 108,747 Distilling Solutions Brown goods 14,260 35,057 29,169 68,713 Warehouse services 8,622 8,001 16,914 16,078 White goods and other co-products 6,338 6,942 11,137 12,152 Total Distilling Solutions 29,220 50,000 57,220 96,943 Ingredient Solutions Specialty wheat starches 18,889 18,474 37,305 34,327 Specialty wheat proteins 12,749 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Operating Segments At June 30, 2026, the Company had three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. The Companys operating segments are based on the financial information the chief operating decision maker uses to allocate resources and evaluate performance of the business. The Branded Spirits segment consists of a portfolio of high quality branded spirits which are produced through distilleries and bottling facilities. The Distilling Solutions segment consists of food grade alcohol (primarily brown goods) and distillery co-products, such as distillers feed (commonly called dried distillers grain in the industry). The Distilling Solutions segment also includes warehouse services, such as barrel put away, barrel storage, and barrel retrieval services. The Ingredient Solutions segment consists of specialty starches and proteins as well as commodity starches and proteins. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Operating income for each segment is based on sales less identifiable operating expenses. Non-direct selling, general, and administrative expenses, interest expense, and other general miscellaneous expenses are excluded from segment operations and are classified as Corporate. Receivables, inventories, property, plant and equipment, leases, goodwill, and intangible ass …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Accounting Policies and Basis of Presentation The Company. MGP Ingredients, Inc. (MGP or the Company) is a Kansas corporation headquartered in Atchison, Kansas and is a leading producer of branded and distilled spirits, as well as food ingredient solutions. The Company has an extensive award-winning global portfolio of its own high quality branded spirits, which are produced through its distilleries and bottling facilities and sold to distributors. The Companys branded spirits products account for a range of price points from value products through premium plus brands. Distilled spirits include premium bourbon, rye, and other American whiskeys (brown goods) and grain neutral spirits (GNS), including vodka and gin. The Companys distilled spirits are either sold directly or indirectly to manufacturers of other branded spirits. The Companys protein and starch food ingredients are predominantly wheat based and provide a host of functional, nutritional, and sensory benefits for a wide range of food products to serve the consumer packaged goods industry. The ingredient products are sold directly, or through distributors, to manufacturers and processors of finished packaged goods or to bakeries. The Company reports three operating segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. Basis of Presentation and Principles of Consolidation. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned and majorit …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Equity and EPS The following table presents computations of basic and diluted EPS: Quarter Ended June 30, Year to Date Ended June 30, 2026 2025 2026 2025 Operations: Net income (loss) (a) $ 12,009 $ 14,427 $ (122,798) $ 11,370 Attributable to noncontrolling interest (1) 3 32 Attributable to participating securities (unvested shares and units) (b) (155) (159) (68) (127) Net income (loss) used in EPS calculation $ 11,854 $ 14,267 $ (122,863) $ 11,275 Share information: Basic weighted average common shares (c) 21,433,066 21,360,984 21,411,374 21,351,809 Diluted weighted average common shares (d) 21,433,066 21,360,984 21,411,374 21,351,809 Basic EPS $ 0.55 $ 0.67 $ (5.74) $ 0.53 Diluted EPS $ 0.55 $ 0.67 $ (5.74) $ 0.53 (a) Net income attributable to all stockholders. (b) Participating securities included 280,492 and 222,462 unvested restricted stock units (RSUs) at June 30, 2026 and 2025, respectively. (c) Under the two-class method, basic weighted average common shares exclude unvested participating securities. (d) The impacts of the Convertible Senior Notes and stock options were included in the diluted weighted average common shares if the inclusion was dilutive. The Convertible Senior Notes would only have a dilutive impact if the average market price per share during the quarter and year to date period exceeds the conversion price of $96.24 per share. Share Repurchase. On February 29, 2024, the Company announced that its Board of Directors approved a $100,000 share repurcha …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events Allowance for Credit Losses. On July 26, 2026, one of the Companys significant customers filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code. As a result, the Company recognized an allowance for credit loss of $2,148 on the Condensed Consolidated Balance Sheet as of June 30, 2026 and in provision for credit loss on the Condensed Consolidated Statements of Income (Loss) for the quarter and year to date ended June 30, 2026. The allowance for credit loss was recorded within the Branded Spirits segment. The Company evaluates its credit losses periodically and as circumstances warrant which may result in changes to the credit loss allowance. The Company is evaluating the impact of the bankruptcy on future sales and cash collections, and the ultimate amount recoverable may differ from current estimates. Dividend. On July 29, 2026, the Company announced a quarterly dividend payable to stockholders of record of the Companys common stock, resulting in dividend equivalents payable to certain RSU holders, of $0.12 per share and per RSU. The dividend and dividend equivalents are payable on August 28, 2026 to stockholders of record and certain RSU holders as of August 14, 2026. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing