Financial Analysis

Note 13. Commitments and Contingencies We are party to various legal proceedings arising in the ordinary course of business. During fiscal 2026, a civil complaint was filed against Mesa in the United States District Court for the Northern District of Ohio alleging, among other things, misappropriation of trade secrets and tortious interference with a contract in connection with the departure of a former executive of a third party and that individuals subsequent employment with Mesa. The complaint seeks injunctive relief, monetary damages, attorneys fees, and other remedies. Mesa denies the allegations and intends to vigorously defend itself. Due to the early stage of the proceedings, we are unable to predict the outcome of this matter or reasonably estimate the amount of any potential loss, if any. While it is reasonably possible that the resolution of this matter could result in a loss to Mesa, which may be material, we have not recorded an accrual as of March 31, 2026, as any such loss cannot be reasonably estimated at this time. Other than as described above, as of March 31, 2026 , we are not party to any legal proceeding that management believes could have a material adverse effect on our consolidated financial position, results of operations, or cash flows. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Note 8 . Indebtedness Credit Facility Our secured credit agreement matures in April 2029 and includes: (i) A revolving credit facility with an aggregate principal amount of up to $125,000 (the ""Revolver""), (ii) A term loan with a maximum principal amount of $75,000, which is subject to escalating quarterly principal payments (the ""Term Loan""), (iii) A swingline loan with an aggregate principal amount not exceeding $5,000, and, (iv) Letters of credit with an aggregate stated amount not exceeding $2,500 at any time. We refer to the agreement in whole as the Credit Facility. Borrowings under our Credit Facility bear interest at a SOFR rate or a base rate, plus an applicable spread that varies with our total net leverage ratio. On October 10, 2025 we amended the Credit Facility to reduce the range of the spread from 1.5% - 3.0% to 1.25% - 2.50%. The weighted average interest rate on borrowings under the Credit Facility as of March 31, 2026 was 5.9%. The financial covenants in the Credit Facility include a maximum leverage ratio of 4.00 to 1.00 on each of the quarterly testing dates between March 31, 2025 and March 31, 2026 and 3.5 to 1.0 on each testing date thereafter. The Credit Facility also stipulates a minimum fixed charge coverage ratio of 1.25 to 1.0. Other covenants include restrictions on our ability to incur debt, grant liens, make fundamental changes to our business as defined in the contract, engage in certain transactions with affiliates, or conduct asset sales. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Year Ended March 31, 2026 Sterilization and Disinfection Control (1) Biopharmaceutical Development Calibration Solutions Clinical Genomics Total Consumables $ 90,521 $ 16,869 $ 2,737 $ 35,815 $ 145,942 Hardware and Software 505 19,170 32,479 5,296 57,450 Services 10,541 12,587 18,335 4,275 45,738 Total revenues $ 101,567 $ 48,626 $ 53,551 $ 45,386 $ 249,130 Year Ended March 31, 2025 Sterilization and Disinfection Control (1) Biopharmaceutical Development Calibration Solutions Clinical Genomics Total Consumables $ 82,736 $ 17,287 $ 3,039 $ 35,672 $ 138,734 Hardware and Software 496 19,649 31,827 7,689 59,661 Services 10,186 11,794 16,883 3,720 42,583 Total revenues $ 93,418 $ 48,730 $ 51,749 $ 47,081 $ 240,978 Year Ended March 31, 2024 Sterilization and Disinfection Control (1) Biopharmaceutical Development Calibration Solutions Clinical Genomics Total Consumables $ 65,459 $ 17,086 $ 2,345 $ 36,086 $ 120,976 Hardware and Software 549 12,993 30,024 12,254 55,820 Services 9,116 10,633 15,394 4,248 39,391 Total revenues $ 75,124 $ 40,712 $ 47,763 $ 52,588 $ 216,187

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Note 9 . Stock Transactions and Stock-Based Compensation (dollars and shares in thousands, except per share values) Stock-Based Compensation On August 22, 2025, our shareholders approved an amendment to the 2021 Equity Plan that increased the number of shares authorized for issuance from 660 shares to 1,156 shares, an increase of 496 shares. There were 537 shares available for future grants under the 2021 Equity Plan as of March 31, 2026 . Stock-based compensation expense recognized in the Consolidated Financial Statements was as follows: Year Ended March 31, 2026 2025 2024 Stock-based compensation expense $ 17,868 $ 13,142 $ 11,936 Amount of income tax expense recognized in earnings 2,616 2,068 2,718 Stock-based compensation expense, net of tax $ 20,484 $ 15,210 $ 14,654 Time-Based Restricted Stock Units (RSUs) RSU activity under the 2021 Equity Plan was as follows (shares and dollars in thousands, except per-share data): Time-Based Restricted Stock Units Number of Shares Weighted- Average Grant Date Fair Value per Share Aggregate Intrinsic Value Nonvested at March 31, 2025 145 $ 106.54 $ 17,197 Awards granted 122 90.91 Awards forfeited or expired (15 ) 97.38 Awards distributed (65 ) 117.13 5,808 Nonvested as of March 31, 2026 187 $ 93.39 $ 16,503 Expected to vest 165 $ 93.13 $ 14,558 For the years ended March 31, 2025 and 2024, the weighted average fair values per RSU granted was $94.30 and $133.30, respectively. Unrecognized stock-based compensation expense for RSUs that w …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Note 3. Fair Value Measurements Our financial instruments generally consist of cash and cash equivalents, trade accounts receivable, obligations under trade accounts payable and debt. Due to their short-term nature, the carrying values of cash and cash equivalents, trade accounts receivable and trade accounts payable approximate fair value; they are classified within Level 1 of the fair value hierarchy. The financial instruments that subject us to the highest concentrations of credit risk are cash and accounts receivable. We maintain relationships and cash deposits at multiple banking institutions across the world in an effort to diversify and reduce risk of loss. Concentration of credit risk with respect to accounts receivable is limited to customers to whom we make significant sale s. No customers accounted for more than 10% of total trade receivables as of March 31, 2026 . The carrying amounts of our Credit Facility on the Consolidated Balance Sheets approximate fair value due to the variable interest rate pricing on the debt, with the principal balances bearing an interest rate approximating current market rates. On August 15, 2025, our outstanding 1.375% convertible notes matured. No balances remained outstanding related to the Notes as of March 31, 2026. See Note 8 . ""Indebtedness"" for further information. While outstanding, we estimated the fair value of the Notes using Level 2 inputs based on the last actively traded price or observable market input preceding the e …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 6. Goodwill and Intangible Assets, Net Goodwill Goodwill arises from the excess purchase price of acquired businesses over the fair value of acquired tangible and intangible assets, less assumed liabilities. Changes in the carrying amount of goodwill were as follows: Sterilization and Disinfection Control Biopharmaceutical Development Calibration Solutions Clinical Genomics Total March 31, 2024 $ 79,430 $ 46,515 $ 37,211 $ 16,940 $ 180,096 Effect of foreign currency translation (22 ) 1,696 2 (12 ) 1,664 March 31, 2025 $ 79,408 $ 48,211 $ 37,213 $ 16,928 $ 181,760 Effect of foreign currency translation 3,402 1,455 53 193 5,103 March 31, 2026 $ 82,810 $ 49,666 $ 37,266 $ 17,123 $ 186,863 Finite-Lived Intangible Assets Intangible assets other than goodwill consisted of the following: March 31, 2026 March 31, 2025 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 188,192 $ (124,981 ) $ 63,211 $ 190,069 $ (117,189 ) $ 72,880 Other intangibles 60,308 (40,172 ) 20,136 61,192 (37,197 ) 23,995 Total finite-lived intangible assets $ 248,500 $ (165,153 ) $ 83,347 $ 251,261 $ (154,386 ) $ 96,875 Amortization expense for intangible assets was as follows: Year Ended March 31, 2026 2025 2024 Amortization in cost of revenues $ 2,803 $ 2,641 $ 6,052 Amortization in general and administrative 15,214 16,504 21,289 Total $ 18,017 $ 19,145 $ 27,341 The range of useful lives and weight …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 12 . Income Taxes Provision for Income Taxes Earnings (loss) before income taxes was as follows: Year Ended March 31, 2026 2025 2024 Domestic $ 6,856 $ 12,615 $ (233,853 ) Foreign 5,158 (6,654 ) (41,795 ) Total earnings (loss) before income taxes $ 12,014 $ 5,961 $ (275,648 ) The components of our provision for income taxes were as follows: Year Ended March 31, 2026 2025 2024 Current tax provision: U.S. Federal $ 753 $ 3,994 $ 3,002 U.S. State 502 1,212 1,678 Foreign 5,328 2,790 2,330 Total current tax expense 6,583 7,996 7,010 Deferred tax provision: U.S. Federal 1,450 63 (20,387 ) U.S. State 443 13 (1,853 ) Foreign (3,174 ) (137 ) (6,172 ) Total deferred tax (benefit) (1,281 ) (61 ) (28,412 ) Total income tax expense (benefit) $ 5,302 $ 7,935 $ (21,402 ) The reconciliation of the U.S. federal statutory rate of 21% to the effective income tax rate for the year ended March 31, 2026, following the adoption of ASU 2023 - 09 is as follows: Year Ended March 31, 2026 Amount % Earnings Before Income Taxes $ 12,014 U.S. Federal Statutory Tax Rate 2,523 21.0 % State and Local Income Taxes, Net of Federal Income Tax Effect (1) 746 6.2 % Foreign Tax Effects: Germany: Federal statutory rate difference (492 ) (4.1% ) Surcharge/trade tax charge 2,022 16.8 % Deferred tax rate change (304 ) (2.5% ) Changes in valuation allowance (171 ) (1.4% ) Other 65 0.5 % Other foreign jurisdictions 10 0.1 % Effect of Changes in Tax Laws or Rates Enacted in the Current Period - - % Effect of Cross-B …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 5. Leases We have operating leases for buildings and office equipment used in manufacturing and distribution, engineering, research and development, sales and marketing, and administration activities. The following table presents the lease balances within the Consolidated Balance Sheets related to our operating leases: Lease Assets and Liabilities Balance Sheet Location March 31, 2026 March 31, 2025 Operating lease ROU asset Other assets $ 17,500 $ 16,382 Current operating lease liabilities Other accrued expenses 3,687 3,523 Noncurrent operating lease liabilities Other noncurrent liabilities 13,662 12,380 The components of lease costs, the weighted average remaining lease term and the weighted average discount rate were as follows: Year Ended March 31, 2026 2025 2024 Operating lease expense $ 4,990 $ 4,025 $ 3,453 Variable lease expense 1,781 1,316 1,039 Short term lease expense 388 571 423 Total lease expense $ 7,159 $ 5,912 $ 4,915 Weighted average remaining lease term in years 7.6 6.8 4.6 Weighted average discount rate 6.7 % 6.2 % 4.1 % Supplemental cash flow information related to leases was as follows: Year Ended March 31, 2026 2025 2024 Cash paid for amounts included in the measurements of lease liabilities $ 5,041 $ 4,534 $ 3,392 Operating lease assets obtained in exchange for operating lease liabilities 4,151 9,863 4,265 As of March 31, 2026 maturities of lease liabilities are as follows for future years ending March 31: 2027 $ 4,732 2028 1,702 2029 2,385 2030 2, …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements For the year ended March 31, 2026, we adopted Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures . This ASU requires public business entities to provide enhanced disclosures related to the reconciliation of the effective tax rate to the statutory federal, state, and foreign income tax rates, including disaggregation of individual reconciling items when their impact exceeds specified quantitative thresholds. The ASU also requires disaggregated disclosure of income taxes paid (net of refunds received) by federal, state, and foreign jurisdictions, and further disaggregation for specific jurisdictions when amounts exceed defined thresholds. In addition, certain reconciling items must be disaggregated based on their nature, determined by reference to the items fundamental characteristics, including the underlying transaction or event that gave rise to the reconciling item and the activity with which it is associated. ASU 2023-09 eliminates the previous requirement to disclose information about unrecognized tax benefits that have a reasonable possibility of significantly increasing or decreasing within the 12 months following the reporting date. We adopted ASU 2023 - 09 on a prospective basis, which resulted in the new disclosure requirements presented in Note 12, Income Taxes . Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024 - 03, ""Expense Dis …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 11 . Employee Benefit Plan s We adopted the Mesa Laboratories, Inc. 401 (k) Retirement Plan effective January 1, 2000. Under this plan, we match 100% of the first 4% of eligible pay contributed by each eligible employee, and contributions vest immediately. Participation is voluntary, and employees are eligible on the first day of the month following their start date. Our contributions to the Mesa Laboratories, Inc. 401 (k) retirement plan were $1,711, $1,645 and $2,078 during the years ended March 31, 2026, 2025 and 2024 , respectively.

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Note 2. Revenue We develop, manufacture, market, sell and maintain life sciences tools and quality control instruments and related consumables. Hardware sales include physical products such as instruments used for molecular and genetic analysis, protein synthesizers, medical meters, wireless sensor systems, data loggers, and process challenge devices. Hardware may be offered with accompanying perpetual or annual software licenses, which in some cases are required for the hardware to function. Consumables are single-use products requiring frequent replacement in our customers' operating cycles. Consumables sold by our Clinical Genomics and Biopharmaceutical Development divisions, such as reagents used for molecular and genetic analysis or solutions used for protein synthesis, are critical to the ongoing use of our instruments. Consumables such as biological and chemical indicator test strips sold by our Sterilization and Disinfection Control division are used on a standalone basis. We also offer maintenance, calibration and testing service contracts. We disclose revenues consistently with how management evaluates the business, i.e., based on business unit and the nature of goods and services provided. The following tables present disaggregated revenues from contracts with customers for the years ended March 31, 2026, 2025 and 2024 : Year Ended March 31, 2026 Sterilization and Disinfection Control (1) Biopharmaceutical Development Calibration Solutions Clinical Genomics Total C …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Note 14. Segment Data Segment information is prepared on the same basis that our chief operating decision maker, our CEO, uses to assess performance, allocate resources, evaluate financial results, and make key operating decisions. Our four reportable segments are organized primarily by the nature of the goods and services they sell. Our CODM regularly reviews segment-level U.S. GAAP revenues and gross profit relative to forecasted and prior period amounts, as well as non-GAAP adjusted operating expense compared to budgeted amounts. Our CODM also reviews non-GAAP organic revenues growth and non-GAAP adjusted operating income to support strategic planning and resource development. The accounting policies of our operating segments are the same as those described in Note 1 . ""Description of Business and Summary of Significant Accounting Policies. Effective April 13, 2026, Dr. Siddhartha Kadia began his tenure as Mesas CEO and CODM. The presentation of segment information below is consistent with the manner in which our segments were evaluated and operated throughout fiscal year 2026. The following tables set forth our segment information: Sterilization and Disinfection Control (d) Biopharmaceutical Development Calibration Solutions Clinical Genomics Corporate and Other (e) Total Company Year Ended March 31, 2026 Revenues (a) $ 101,567 $ 48,626 $ 53,551 $ 45,386 $ - $ 249,130 Less: Depreciation in cost of revenues 1,779 308 448 578 - 3,113 Amortization in cost of revenues 526 1 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 10 . Commitments and Contingencies We are party to various legal proceedings arising in the ordinary course of business. As of December 31, 2025 , we are not party to any legal proceeding that management believes could have a material adverse effect on our unaudited consolidated financial position, results of operations, or cash flows.

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"Note 6 . Indebtedness Credit Facility Our secured credit agreement matures in April 2029 and includes: (i) A revolving credit facility with an aggregate principal amount of up to $125,000 (the ""Revolver""), (ii) A term loan with a maximum principal amount of $75,000, which is subject to escalating quarterly principal payments (the ""Term Loan""), (iii) A swingline loan with an aggregate principal amount not exceeding $5,000, and (iv) Letters of credit with an aggregate stated amount not exceeding $2,500 at any time. We refer to the agreement in whole as the Credit Facility. On April 5, 2024, we borrowed $75,000 under the Credit Facility's Term Loan to fund privately negotiated repurchases of a portion of our convertible notes (""the Notes""). On August 12, 2025, we borrowed $97,000 under the Revolver to fund the cash settlement of the remaining Notes, which matured on August 15, 2025 ( see ""Convertible Notes"" below). Borrowings under our Credit Facility bear interest at a SOFR rate or a base rate, plus an applicable spread that varies with our total net leverage ratio. On October 10, 2025 we amended the Credit Facility to reduce the range of the spread from 1.5% - 3.0% to 1.25% - 2.50%. The weighted average interest rate on borrowings under the Credit Facility was 6.2% as of December 31, 2025 and 7.2% as of March 31, 2025. The financial covenants in the Credit Facility include a maximum total net leverage ratio of 4.0 to 1.0 on each of the testing dates between March 31, …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended December 31, 2025 Sterilization and Disinfection Control Biopharmaceutical Development Calibration Solutions Clinical Genomics Total Consumables $ 22,357 $ 4,880 $ 658 $ 8,836 $ 36,731 Hardware and software 152 6,277 8,904 2,011 17,344 Services 2,405 3,216 4,510 920 11,051 Total revenues $ 24,914 $ 14,373 $ 14,072 $ 11,767 $ 65,126 Three Months Ended December 31, 2024 Sterilization and Disinfection Control Biopharmaceutical Development Calibration Solutions Clinical Genomics Total Consumables $ 20,991 $ 4,909 $ 1,043 $ 9,866 $ 36,809 Hardware and software 52 4,534 9,333 1,877 15,796 Services 2,464 2,794 4,053 924 10,235 Total revenues $ 23,507 $ 12,237 $ 14,429 $ 12,667 $ 62,840 Nine Months Ended December 31, 2025 Sterilization and Disinfection Control Biopharmaceutical Development Calibration Solutions Clinical Genomics Total Consumables $ 64,650 $ 13,087 $ 2,251 $ 25,893 $ 105,881 Hardware and software 388 17,227 24,008 4,361 45,984 Services 7,393 9,465 13,733 2,950 33,541 Total revenues $ 72,431 $ 39,779 $ 39,992 $ 33,204 $ 185,406 Nine Months Ended December 31, 2024 Sterilization and Disinfection Control Biopharmaceutical Development Calibration Solutions Clinical Genomics Total Consumables $ 60,860 $ 12,657 $ 2,067 $ 26,156 $ 101,740 Hardware and software 365 14,539 24,067 6,511 45,482 Services 7,444 8,916 12,358 2,903 31,621 Total revenues $ 68,669 $ 36,112 $ 38,492 $ 35,570 $ 178,843

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"Note 7. Stockholders' Equity Stock-Based Compensation On August 22, 2025, our shareholders approved an amendment to the Mesa Laboratories Inc. 2021 Amended and Restated Equity Incentive Plan (the ""2021 Equity Plan""), increasing the number of shares authorized for issuance from 660 shares to 1,156 shares, an increase of 496 shares. During the nine months ended December 31, 2025 , we issued time-based restricted stock units (""RSUs"") and performance-based restricted stock units (""PSUs"") pursuant to the 2021 Equity Plan. Stock-based compensation expense is included in cost of revenues, selling, general and administrative, and research and development expense in the accompanying unaudited Condensed Consolidated Statements of Operations. The following is a summary of RSU and PSU award activity for the nine months ended December 31, 2025 : Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Number of Shares Weighted- Average Grant Date Fair Value per Share Number of Shares Weighted- Average Grant Date Fair Value per Share Nonvested as of March 31, 2025 145 $ 106.54 85 $ 166.31 Awards granted (1) 108 90.87 44 99.56 Awards forfeited (11 ) 97.91 - - Awards distributed (65 ) 117.08 (16 ) 265.32 Nonvested as of December 31, 2025 177 $ 93.65 113 $ 126.12 ( 1 ) Balances for PSUs granted are reflected at target. Time-based RSUs vest and settle in shares of our common stock on a one -for- one basis. The significant majority of RSUs granted to employees during th …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Note 3. Fair Value Measurements and Concentrations of Credit Risk Our financial instruments consist primarily of cash and cash equivalents, trade accounts receivable, obligations under trade accounts payable, and debt. Due to their short-term nature, the carrying values for cash and cash equivalents, trade accounts receivable, and trade accounts payable approximate fair value and are classified within Level 1 of the fair value hierarchy. The carrying amounts of our term loan and revolving line of credit (together, the ""Credit Facility"") approximate fair value due to variable interest rate pricing, with the balances bearing interest rates approximating current market rates. There were no nonrecurring fair value adjustments or transfers between the levels of the fair value hierarchy during the three and nine months ended December 31, 2025 . The financial instruments that subject us to the highest concentrations of credit risk are cash and accounts receivable. We maintain relationships and cash deposits at multiple banking institutions across the world in an effort to diversify and reduce risk of loss. Concentration of credit risk with respect to accounts receivable is limited to customers to whom we make significant sales. No customers accounted for more than 10% of total trade receivables as of December 31, 2025 ."

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Note 5. Goodwill and Intangible Assets Intangible assets other than goodwill consisted of the following: December 31, 2025 March 31, 2025 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 199,843 $ (131,945 ) $ 67,898 $ 190,069 $ (117,189 ) $ 72,880 Other intangibles 63,401 (41,653 ) 21,748 61,192 (37,197 ) 23,995 Total finite-lived intangible assets $ 263,244 $ (173,598 ) $ 89,646 $ 251,261 $ (154,386 ) $ 96,875 Amortization expense for intangible assets was as follows: Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Amortization in cost of revenues $ 695 $ 660 $ 2,104 $ 1,979 Amortization in general and administrative 3,750 3,731 11,428 11,023 Total $ 4,445 $ 4,391 $ 13,532 $ 13,002 Estimated future amortization expense for the fiscal years ending March 31 is presented below, based on foreign currency exchange rates in effect as of December 31, 2025: Fiscal Year Amortization Expense Remainder of 2026 $ 4,463 2027 17,546 2028 16,903 2029 16,329 2030 11,538 The change in the carrying amount of goodwill was as follows: Sterilization and Disinfection Control Biopharmaceutical Development Calibration Solutions Clinical Genomics Total March 31, 2025 $ 79,408 $ 48,211 $ 37,213 $ 16,928 $ 181,760 Effect of foreign currency translation 4,661 2,611 75 196 7,543 December 31, 2025 $ 84,069 $ 50,822 $ 37,288 $ 17,124 $ 189,303

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Note 9 . Income Taxes We reported an income tax provision as follows: Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Income tax (benefit) expense $ 966 $ (541 ) $ 2,759 $ 360 Effective tax rate 21.0 % 24.4 % 20.3 % 6.5 % For interim income tax reporting, we estimate our annual effective tax rate and apply this effective tax rate to our year-to-date pre-tax income. Each quarter, our estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. Additionally, the tax effects of significant unusual or infrequently occurring items are recognized as discrete items in the interim period in which the events occur. There is a potential for volatility in the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which they relate, changes in tax laws and foreign tax holidays, settlement with taxing authorities, and foreign currency fluctuations. The effective tax rate for the three months ended December 31, 2025 approximated the federal statutory rate of 21%; the effective rate was impacted by the valuation allowance on U.S. deferred taxes, offset by the foreign differential rate. The effective tax rate for the nine months ended December 31, 2025 differed from the statutory federal rate of 21% due to the impact of the valuation allowance on U.S. deferred taxes, partially offset by the foreign rate differential. In …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements We have reviewed all recently issued accounting pronouncements and have concluded that, other than as described below, they are not applicable to us or are not expected to have a material impact on our consolidated financial statements. We have not adopted any new accounting standards in fiscal year 2026. Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (""ASU"") 2023 - 09, Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures , which enhances the transparency, effectiveness and comparability of annual income tax disclosures. The guidance is effective for public business entities for fiscal years beginning after December 15, 2024 ( our fiscal year 2026 ), with early adoption and prospective or retrospective application permitted. Other than presentation of additional disaggregated information related to the jurisdictions in which we pay income taxes and income tax rate reconciliations in our annual income tax footnote disclosures, we do not expect the adoption of ASU No. 2023 - 09 to have a material impact on our consolidated financial statements and disclosures. In November 2024, the FASB issued ASU 2024 - 03, Expense Disaggregation Disclosures (Subtopic 220 - 40 ): Disaggregation of Income Statement Expenses. ASU 2024 - 03 requires that public business entities disclose additional information about specific expense categories in the not …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 2. Revenue We develop, manufacture, market, sell and maintain life sciences tools and quality control instruments and related consumables. Hardware sales include physical products such as instruments used for molecular and genetic analysis, protein synthesizers, medical meters, wireless sensor systems, data loggers, and process challenge devices. Hardware sales may be offered with accompanying perpetual or annual software licenses, which in some cases are required for the hardware to function. Consumables sold by our Clinical Genomics and Biopharmaceutical Development divisions, such as reagents used for molecular and genetic analysis or solutions used for protein synthesis, are critical to the ongoing use of our instruments. Consumables such as biological and chemical indicator test strips sold by our Sterilization and Disinfection Control division are used on a standalone basis. Revenues from hardware and consumables are recognized upon transfer of control to the customer. Control of hardware and consumables sold in the U.S. and Asia Pacific typically transfers at the point of shipment, whereas control of products sold in Europe more typically occurs upon delivery to the customer site. We also offer maintenance, calibration and testing services. Services result in revenues recognized either over time, for example, when we are contractually obligated to perform labor and replace parts on an as-needed basis throughout a specified service period, or at a point in time, up …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Note 11 . S egment Information Segment information is prepared on the same basis our chief operating decision maker (""CODM""), our CEO, uses to assess segment performance, allocate resources, evaluate financial results, and make key operating decisions. Our four reportable segments are organized primarily by the nature of the goods and services they sell. Our CODM regularly reviews segment-level U.S. GAAP revenues and gross profit relative to forecasted and prior period amounts, as well as non-GAAP adjusted operating expense compared to budgeted amounts. Our CODM also regularly reviews non-GAAP organic revenues growth to support strategic planning and resource deployment. The following tables set forth our segment information: Three months ended December 31, 2025 Sterilization and Disinfection Control Biopharmaceutical Development Calibration Solutions Clinical Genomics Total Revenues (a): $ 24,914 $ 14,373 $ 14,072 $ 11,767 $ 65,126 Less Depreciation in cost of revenues 438 88 116 133 775 Amortization in cost of revenues 125 379 - 191 695 Other cost of revenues (b) 7,040 4,986 5,506 4,329 21,861 Total segment cost of revenues 7,603 5,453 5,622 4,653 23,331 Gross Profit (c) $ 17,311 $ 8,920 $ 8,450 $ 7,114 $ 41,795 Reconciling items: Operating expense $ 33,820 Operating income 7,975 Nonoperating expense, net 3,379 Earnings before income taxes $ 4,596 Three months ended December 31, 2024 Sterilization and Disinfection Control Biopharmaceutical Development Calibration Solutio …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing