Financial Analysis

Commitments and Contingencies Product liability. The Company is subject to product liability claims in the normal course of business. The Company purchases excess insurance coverage annually for product liability claims, which is subject to self-insured retention and aggregate limits. The estimated costs resulting from any losses are charged to operating expenses when it is probable a loss has been incurred and the amount of the loss is reasonably estimable. The Company utilizes actuarial analysis, which considers claims experience and historical trends, along with an analysis of current claims, to assist in determining the appropriate loss reserve levels. As of June 30, 2026 and December 31, 2025, the Company had an accrual of $255.0 million and $374.1 million, respectively, for the probable payment of pending claims related to product liability litigation associated with the Companys products. This accrual is recorded in accrued expenses in the consolidated balance sheets. Amounts due from insurance carriers, to the extent applicable, reduce our financial exposures to product liability claims and are recorded in prepaid expenses and other in the consolidated balance sheets. As of June 30, 2026 and December 31, 2025, the Company recorded $55.7 million and $182.5 million, respectively, for probable insurance recoveries related to product liability accruals. Litigation. The Company is subject to lawsuits and claims arising in the normal course of business, including matters re …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Financing Agreements The carrying value of financing obligations and the average related interest rates were as follows (in millions): Average interest rate as of June 30, 2026 Maturity June 30, 2026 December 31, 2025 Senior notes due 2029 6.95% March 2029 500.0 500.0 Revolving loan facility 5.28% December 2029 459.8 35.4 Term loan facility 5.74% December 2029 462.5 475.0 Senior notes due 2031 5.60% March 2031 500.0 500.0 Finance lease obligations 5.24% Various through 2029 6.2 7.3 Notes payable and other 4.30% Various through 2030 38.0 39.2 Unamortized debt issuance costs and discounts (15.2) (17.4) Total financing obligations $ 1,951.3 $ 1,539.5 Less: Current financing obligations 34.8 34.8 Total long-term financing obligations $ 1,916.5 $ 1,504.7 Debt issuance costs and discounts are recognized as a reduction in the carrying value of the related long-term debt in the consolidated balance sheets and are amortized to interest expense in the consolidated statements of income (loss) over the expected remaining terms of the related debt. As of June 30, 2026, the Company had open letters of credit totaling $63.4 million primarily related to inventory purchases. Unsecured credit facility. The Company maintains an unsecured credit facility which consists of a term loan facility (the Term Loan Facility) and a revolving loan facility (the Revolving Loan Facility). An amendment was completed in December 2024 that reduced the Term Loan Facility to $500.0 million, of which $462.5 milli …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregate the Company's revenue by major product type and geography (in millions): Three months ended June 30, 2026 Polaris Powersports Marine Aixam & Goupil Corporate Total Revenue by product type Wholegoods $ 1,223.3 $ 179.3 $ 75.2 $ 41.6 $ 1,519.4 PG&A 491.9 0.2 10.6 0.7 503.4 Total revenue $ 1,715.2 $ 179.5 $ 85.8 $ 42.3 $ 2,022.8 Revenue by geography United States $ 1,437.1 $ 175.4 $ $ 41.3 $ 1,653.8 Canada 97.7 3.7 0.1 101.5 EMEA 97.7 85.8 0.1 183.6 APLA 82.7 0.4 0.8 83.9 Total revenue $ 1,715.2 $ 179.5 $ 85.8 $ 42.3 $ 2,022.8 Three months ended June 30, 2025 Polaris Powersports Marine Aixam & Goupil Corporate Total Revenue by product type Wholegoods $ 1,054.1 $ 155.1 $ 70.8 $ 125.4 $ 1,405.4 PG&A 406.1 0.2 10.4 30.6 447.3 Total revenue $ 1,460.2 $ 155.3 $ 81.2 $ 156.0 $ 1,852.7 Revenue by geography United States $ 1,221.7 $ 153.4 $ $ 102.8 $ 1,477.9 Canada 98.0 1.3 6.4 105.7 EMEA 83.3 81.2 34.2 198.7 APLA 57.2 0.6 12.6 70.4 Total revenue $ 1,460.2 $ 155.3 $ 81.2 $ 156.0 $ 1,852.7 Six months ended June 30, 2026 Polaris Powersports Marine Aixam & Goupil Corporate Total Revenue by product type Wholegoods $ 2,213.9 $ 304.5 $ 130.5 $ 85.4 $ 2,734.3 PG&A 920.5 0.3 22.0 4.4 947.2 Total revenue $ 3,134.4 $ 304.8 $ 152.5 $ 89.8 $ 3,681.5 Revenue by geography United States $ 2,610.4 $ 297.7 $ $ 80.0 $ 2,988.1 Canada 185.2 6.4 1.3 192.9 EMEA 189.0 0.1 152.5 5.0 346.6 APLA 149.8 0.6 3.5 153.9 Total revenue $ 3,134.4 $ 304.8 $ 152.5 $ …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Share-Based Compensation Total share-based compensation expenses were as follows (in millions): Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Option awards $ 1.4 $ 3.9 $ 8.2 $ 7.1 Other share-based awards 11.9 13.1 20.4 17.0 Total share-based compensation before tax 13.3 17.0 28.6 24.1 Tax benefit 3.3 4.1 7.0 5.9 Total share-based compensation expense included in net income (loss) $ 10.0 $ 12.9 $ 21.6 $ 18.2 In addition to the above share-based compensation expenses, the Company sponsors a qualified non-leveraged employee stock ownership plan (ESOP). Shares allocated to eligible participants accounts vest at various percentage rates based on years of service and require no cash payments from the recipient. As of June 30, 2026, there was $52.8 million of total unrecognized share-based compensation expense related to unvested share-based equity awards. Unrecognized share-based compensation expense is expected to be recognized over a weighted-average period of 1.4 years. Included in unrecognized share-based compensation expense was approximately $7.6 million related to stock options and $45.2 million related to restricted stock. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets Goodwill and other intangible assets, net of accumulated amortization, as of June 30, 2026 and December 31, 2025 were as follows (in millions): June 30, 2026 December 31, 2025 Goodwill $ 348.6 $ 348.8 Other intangible assets, net 441.6 451.2 Total goodwill and other intangible assets, net $ 790.2 $ 800.0 The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2026 and 2025 were as follows (in millions): Polaris Powersports Marine Aixam & Goupil Total Balance as of December 31, 2025 $ 118.2 $ 230.6 $ $ 348.8 Currency translation effect on foreign goodwill balances (0.2) (0.2) Balance as of June 30, 2026 $ 118.0 $ 230.6 $ $ 348.6 Off Road Marine On Road Total Balance as of December 31, 2024 $ 116.2 $ 230.6 $ 46.7 $ 393.5 Goodwill impairment (52.6) (52.6) Currency translation effect on foreign goodwill balances 1.8 5.9 7.7 Balance as of June 30, 2025 $ 118.0 $ 230.6 $ $ 348.6 Following the Companys segment reorganization in the first quarter of 2026, goodwill balances in the former Off Road reportable segment were fully allocated to reporting units in the Companys Polaris Powersports reportable segment. Goodwill balances in the Marine reportable segment were unaffected by the segment reorganization. The Company assessed goodwill for impairment immediately before and immediately after the reorganization and concluded that goodwill was not impaired. Prior period balances were not recast in the …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

New accounting pronouncements. Apart from the item discussed in our Annual Report on Form 10-K for the year ended December 31, 2025, there are no other new accounting pronouncements that are expected to have a significant impact on the Companys consolidated financial statements or related disclosures. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Segment Reporting In the first quarter of 2026, the Company began management of its portfolio of businesses under a new basis following the divestiture of the Indian Motorcycle business. All historical results were reclassified for comparability, including the divested Indian Motorcycle business, which is included in corporate and corporate costs and other. The Companys reportable segments are based on the Companys method of internal reporting and are comprised of various product offerings that serve multiple end markets. These results are not necessarily indicative of the results of operations that would have occurred had each reportable segment been an independent, stand-alone entity during the periods presented. The internal reporting of these operating segments is based, in part, on the reporting and review process used by the Companys chief operating decision maker (CODM), its Chief Executive Officer. The Company primarily uses gross profit, a measure that is determined in accordance with U.S. GAAP, to evaluate segment profitability and make decisions about resource allocation. The Companys CODM does not utilize segment asset information to evaluate performance and make resource allocation decisions, and thus such disclosures are not provided. The Company has six operating segments: 1) Off-Road Vehicles (ORV), 2) Seasonal, 3) Commercial, 4) Government/Defense, 5) Marine, and 6) Aixam & Goupil, and three reportable segments: 1) Polaris Powersports, 2) Marine, and 3) A …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Basis of Presentation and Significant Accounting Policies Basis of presentation. The accompanying unaudited consolidated financial statements of Polaris Inc. (Polaris or the Company) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position, and changes in cash flow in conformity with accounting principles generally accepted in the United States for complete financial statements. Accordingly, such statements should be read in conjunction with the Companys Annual Report on Form 10-K for the year ended December 31, 2025 previously filed with the Securities and Exchange Commission (SEC). In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, equity, and cash flows for the periods presented. Due to the seasonality trends for certain products and certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. Reclassifications. Reclassifications of certain prior year reportable segment results have been made to conform to the current-year presentation. See Note 11 for additional information. The reclassifications had no impact on the consolidated balance sheets, …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Shareholders Equity Share repurchase program. The Company did not repurchase shares of its common stock in open-market transactions under the share repurchase program during the six months ended June 30, 2026. As of June 30, 2026, the Board of Directors has authorized the Company to repurchase up to an additional $1.1 billion of the Companys common stock. Dividends. Cash dividends declared and paid per common share for the three and six months ended June 30, 2026 and 2025 were as follows: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Cash dividends declared and paid per common share $ 0.68 $ 0.67 $ 1.36 $ 1.34 Net income (loss) per share. Basic net income (loss) per share was computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during each period, including shares earned under the Deferred Compensation Plan for Directors (Director Plan), the ESOP and deferred stock units under the Amended and Restated 2024 Omnibus Incentive Plan (Omnibus Plan). Diluted net income (loss) per share was computed under the treasury stock method and was calculated to compute the dilutive effect of outstanding stock options and certain share-based awards issued under the Omnibus Plan. As a result of the Companys net loss during the three and six months ended June 30, 2025, outstanding stock options and certain share-based awards were not included in the computation of diluted net loss per shar …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing