Financial Analysis

BUSINESS COMBINATIONS 2026 Acquisition On January 22, 2026, the Company acquired 100% of the shares of Medical Manufacturing Technologies, LLC (MMT), which is included within the Companys Specialty Products segment. Based in Charlotte, North Carolina, MMT is a provider of automated, process-driven medical device manufacturing solutions, offering vertically integrated capabilities spanning process development, technical solutions, equipment applications and aftermarket support. The acquisition was made to expand the Companys manufacturing capabilities and leverage MMTs expertise in automation and precision manufacturing, which directly addresses the specialized needs of the medical device manufacturing industry. The consideration transferred consisted of $682.3 million in cash, net of cash acquired. The Company accounted for the transaction as a business combination using the acquisition method and recorded the estimated fair values of the assets acquired and liabilities assumed in the consolidated balance sheet, including accounts receivable, inventories, intangible assets, goodwill, right-of-use assets, contract assets, accounts payable, contract liabilities and lease liabilities. The excess of consideration transferred over the estimated fair value of net assets acquired was recorded as goodwill. The acquisition date fair values of the customer lists, tradenames, technology and patents, and backlog intangible assets were $303.3 million, $41.0 million, $20.9 million and $10. …

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COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is involved in various claims, actions, and legal proceedings arising in the ordinary course of business, including matters related to the aqueous film forming (AFFF) foam litigation consolidated in the District of South Carolina multi-district litigation and other similar matters pending in other jurisdictions in the United States. The Companys exposure to losses, if any, is not considered probable or reasonably estimable at this time. Commitments The Company does not have any material unconditional purchase obligations as of June 30, 2026. …

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Revenues for the three and six months ended June 30, 2026 and 2025 are presented below (in thousands): Three Months Ended June 30, Six Months Ended June 30, In Thousands 2026 2025 2026 2025 Revenues from products $ 178,565 $ 130,773 $ 301,132 $ 199,489 Revenues from services 35,084 31,844 37,463 35,143 Other revenues 161 22 284 37 Total net sales $ 213,810 $ 162,639 $ 338,879 $ 234,669

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"STOCK-BASED COMPENSATION 2021 Equity Plan A total of 31,900,000 shares of Common Stock are authorized and reserved for issuance under the 2021 Equity Incentive Plan (the 2021 Equity Plan) which provides for the grant of stock options (either incentive or non-qualified), stock appreciation rights (SARs), restricted stock, restricted stock units (RSUs), performance shares, performance share units and other share-based awards with respect to the Common Stock. Shares associated with underlying awards that are expired, forfeited, or otherwise terminated without the delivery of shares, or are settled in cash, and any shares tendered to or withheld by the Company for the payment of an exercise price or for tax withholding will again be available for issuance under the 2021 Equity Plan. During the six months ended June 30, 2026, the Company granted 1,752,630 performance-based non-qualified stock options (PBNQSO) to its executive officers, non-employee directors and other members of senior management under the 2021 Equity Plan. The PBNQSO granted consist of two types of vesting criteria. The Company recognizes compensation costs for PBNQSO granted during the six months ended June 30, 2026 based on the estimated fair value of the awards on the date of grant. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, using the Hull-White model or Monte Carlo model, as applicable. The Company records forfeitures as they are incurred. The grant d …

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FAIR VALUE MEASUREMENTS Fair Value Measurement The carrying value of cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses and other current liabilities approximates fair value due to the short-term nature of their maturities. Borrowings under the Companys Amended and Restated Revolving Credit Facility accrue interest at a floating rate tied to a standard short-term borrowing index, selected at the Companys option, plus an applicable margin. The carrying amount of this floating rate debt approximates fair value based upon the respective interest rates adjusting with market rate adjustments. The carrying amount of the Companys Preferred Stock equals the redemption price, which approximates fair value. At June 30, 2026 and December 31, 2025, the estimated fair value of the Companys 2029 Notes, calculated using Level 2 inputs, based on bid prices obtained from a broker was approximately $660.6 million and $669.4 million, respectively. At June 30, 2026, the estimated fair value of the Companys 2034 Notes, calculated using Level 2 inputs, based on bid prices obtained from a broker was approximately $550.2 million. The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or a liability in the principal or most advantageous market. …

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GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill by reportable segment are as follows: In Thousands Fire Safety Specialty Products Total Balance, December 31, 2025 $ 866,032 $ 199,179 $ 1,065,211 Acquisitions 303,768 303,768 Measurement period adjustments (1) 2,247 2,247 Foreign currency translation (4,369) (1,133) (5,502) Balance, June 30, 2026 $ 861,663 $ 504,061 $ 1,365,724 (1) See Note 4 - Business Combinations for additional information. Intangible assets and related accumulated amortization as of June 30, 2026 and December 31, 2025 are as follows: June 30, 2026 Dollars in Thousands Estimated Useful Life (in years) Gross Value Accumulated Impairment Foreign Currency Translation Accumulated Amortization Net Book Value Definite Lived Intangible Assets: Customer lists 1 to 20 $ 1,103,500 $ $ (10,243) $ (188,323) $ 904,934 Technology and patents 4 to 20 302,326 (40,738) 994 (67,045) 195,537 Tradenames 8 to 20 149,100 (1,878) (24,158) 123,064 Balance, June 30, 2026 $ 1,554,926 $ (40,738) $ (11,127) $ (279,526) $ 1,223,535 December 31, 2025 Dollars in Thousands Estimated Useful Life (in years) Gross Value Accumulated Impairment Foreign Currency Translation Accumulated Amortization Net Book Value Definite Lived Intangible Assets: Customer lists 8 to 20 $ 790,000 $ $ (5,511) $ (156,300) $ 628,189 Technology and patents (1) 4 to 20 281,426 (40,738) (28) (55,856) 184,804 Tradenames 8 to 20 108,100 (1,024) (20,746) 86,330 Balance, December 31, 202 …

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INCOME TAXES The Company is subject to U.S. federal income tax, U.S. state and local tax and tax in foreign jurisdictions. The Company estimates its annual effective tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which it operates. The Companys effective tax rate was 17.97% and 36.65% for the three and six months ended June 30, 2026, respectively, and 4.98% and 30.59% for the three and six months ended June 30, 2025, respectively. The primary differences between the effective tax rate and the amount computed by applying the U.S. statutory rate of 21% are primarily due to increased benefits from stock-based compensation, permanently non-deductible compensation, withholding taxes accrued on unremitted earnings and the impact of foreign tax rate differences. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment. While the Company expects to realize the remaining net deferred tax assets, changes in …

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LONG-TERM DEBT AND PREFERRED STOCK Senior Notes Perimeter Holdings, LLC (Perimeter Holdings), an indirect wholly owned subsidiary of Perimeter Solutions, Inc. (the Company) has $675.0 million principal amount of 5.00% senior secured notes due October 30, 2029 (the 2029 Notes). The 2029 Notes bear interest at an annual rate of 5.00%. Interest on the 2029 Notes is payable in cash semi-annually in arrears on April 30 and October 30 of each year. On January 2, 2026, Perimeter Holdings completed its offering of $550.0 million in aggregate principal amount of 6.250% senior secured notes due 2034 (the 2034 Notes) in transactions that were exempt from the registration requirements of the Securities Act of 1933, as amended (the Securities Act). The 2034 Notes were issued under an indenture, dated January 2, 2026 (the Indenture), by and among Perimeter Holdings, the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee and notes collateral agent. The Notes mature on January 15, 2034, and bear interest at a rate of 6.250% per annum, payable in cash semi-annually in arrears on January 15 and July 15 of each year, commencing on July 15, 2026. The Company used the net proceeds of the 2034 Notes, together with cash on hand, to pay the cash consideration for the MMT Acquisition and to pay related fees and expenses. The 2029 Notes and the 2034 Notes are general, secured, senior obligations of Perimeter Holdings; rank equally in right of payment with all existi …

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Recently Adopted Accounting Pronouncements In July 2025, the FASB issued ASU No. 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets, which allows all entities to apply a practical expedient when estimating expected credit losses that assumes current conditions as of the balance sheet date will remain unchanged over the assets remaining life. The standard is effective for annual periods beginning after December 15, 2025, and interim reporting periods within those years. Early adoption is permitted. The Company adopted this ASU prospectively for the annual and interim periods beginning on January 1, 2026. The adoption did not have a material impact on the Companys financial position or results of operations. Accounting Pronouncements Issued but not yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses, which requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Although the ASU requires comparative disclosures for all periods presented, entities will be permitted to begin applying the guidance prospectively. Therefore, comparative disclosures are not required for reporting periods beginning before the effective date …

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RELATED PARTIES As discussed in Note 10, Stock-Based Compensation, the Company assumed, and agreed to pay, perform, satisfy and discharge in full, all of EverArcs liabilities and obligations under the key terms and conditions of the Founder Advisory Agreement previously executed between EverArc and EverArc Founder Entity. For 2025, the average price was $27.89 per share of Common Stock. The EverArc Founder Entity was entitled to receive the Fixed Annual Advisory Amount of 2,357,061 shares of Common Stock or a value of $65.7 million, based on an average price of $27.89 per share of Common Stock (the 2025 Fixed Amount). The EverArc Founder Entity was also entitled to receive a Variable Annual Advisory Amount for 2025 of 14,462,123 shares of Common Stock, or a value of $403.4 million (the 2025 Variable Amount and together with the 2025 Fixed Amount, the 2025 Advisory Amounts). The EverArc Founder Entity elected to receive approximately 79.6% of the 2025 Advisory Amounts in shares of Common Stock (13,387,003 shares of Common Stock) and approximately 20.4% of the 2025 Advisory Amounts in cash ($95.7 million). To satisfy the 2025 Advisory Amounts, the Company paid $95.7 million in cash on February 19, 2026 and issued 13,387,003 shares of Common Stock on March 3, 2026. …

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REVENUE RECOGNITION Disaggregation of revenues Amounts for products sold are recognized at a point in time, whereas amounts for contract services associated with full-service and portable retardant are recognized over time. Revenues for the three and six months ended June 30, 2026 and 2025 are presented below (in thousands): Three Months Ended June 30, Six Months Ended June 30, In Thousands 2026 2025 2026 2025 Revenues from products $ 178,565 $ 130,773 $ 301,132 $ 199,489 Revenues from services 35,084 31,844 37,463 35,143 Other revenues 161 22 284 37 Total net sales $ 213,810 $ 162,639 $ 338,879 $ 234,669

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SEGMENT INFORMATION The Companys products and operations are managed and reported in two operating segments: Fire Safety and Specialty Products. The Fire Safety segment provides fire retardants and fire suppressants, as well as specialized equipment and services typically offered in conjunction with its products. The Specialty Products segment includes operations that develop, produce and market products for non-fire safety markets. The chief operating decision-maker (CODM) is the Companys CEO. The CODM uses Segment Adjusted EBITDA for each segment predominantly in the annual budget and forecasting process. The CODM considers budget/forecast-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. Segment Adjusted EBITDA is defined as income (loss) before income taxes plus net interest and other financing expenses, and depreciation and amortization, adjusted on a consistent basis for certain non-recurring, unusual or non-operational items. These items include (i) restructuring, (ii) acquisition related costs, (iii) founder advisory fee expenses, (iv) stock-based compensation expense, (v) purchase accounting impact - inventory step up and (vi) foreign currency loss (gain). Interest income, interest expense, other income (expense) and certain corporate operating expenses are not included in the measures of segment performance reviewed by the CODM. The corporate category is not considered to be a segm …

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RECENT ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (the FASB) Accounting Standards Codification (ASC) is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update (ASU) to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the Condensed Consolidated Financial Statements. Recently Adopted Accounting Pronouncements In July 2025, the FASB issued ASU No. 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets, which allows all entities to apply a practical expedient when estimating expected credit losses that assumes current conditions as of the balance sheet date will remain unchanged over the assets remaining life. The standard is effective for annual periods beginning after December 15, 2025, and interim reporting periods within those years. Early adoption is permitted. The Company adopted this ASU prospectively for the annual and interim periods beginning on January 1, 2026. The adoption did not have a material impact on the Companys financial position or results of operations. Accounting Pronouncements Issued but not yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses, which requires discl …

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EQUITY The Company is authorized to issue 4,020,000,000 shares of capital stock, consisting of (i) 4,000,000,000 shares of Common Stock and (ii) 20,000,000 shares of Preferred Stock. As of June 30, 2026, there were 189,065,079 and 163,686,923 shares of Common Stock issued and outstanding, respectively. Due to the fact that the shares of Preferred Stock are mandatorily redeemable, the Preferred Stock is classified as a liability on the accompanying condensed consolidated balance sheets. Refer to Note 6, Long-Term Debt and Preferred Stock for additional information about the Preferred Stock. On August 6, 2025, the Board re-established the limit for Common Stock repurchases at $100.0 million. The Company expects to periodically re-establish the limit for Common Stock repurchases. The approximate dollar value of shares that may yet be repurchased under the share repurchase plan was $100.0 million as of June 30, 2026 (the Share Repurchase Plan). During the three and six months ended June 30, 2026, the Company did not repurchase any shares under its Share Repurchase Plan. During the three and six months ended June 30, 2025, the Company repurchased 2,886,221 and 3,774,675 shares, respectively. The repurchased shares are recorded at cost and are being held in treasury. …

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