Financial Analysis

"Debt Arrangements The following summarizes debt and notes payable: Outstanding Interest March 31, Long-Term Debt Repayment Schedule by Fiscal Year Rate (1) 2026 2025 2027 2028 2029 2030 2031 Later Senior secured credit facility: ABL Credit Facility 7.0 % $ $ $ $ $ $ $ $ Senior secured notes: 8.5% Notes Due 2027 (2) 8.5 % 146,662 145,820 146,662 Senior secured term loans: Intabex Term Loans (3) 12.4 % 187,752 187,144 187,752 Pyxus Term Loans (4) 12.4 % 121,343 121,886 121,343 Other debt: Other long-term debt 8.8 % 12 Notes payable (5) 8.8 % 477,132 395,030 477,132 Total debt $ 932,889 $ 849,892 $ 477,132 $ 455,757 $ $ $ $ Short-term (5) $ 477,132 $ 395,030 Long-term: Current portion of long-term debt $ $ 12 Long-term debt 455,757 454,850 Total $ 455,757 $ 454,862 Letters of credit $ 8,024 $ 7,790 (1) Weighted average stated rate for the trailing twelve months ended March 31, 2026 or, for indebtedness outstanding only during a portion of such twelve-month period, for the portion of such period that such indebtedness was outstanding. (2) Balance of $146,662 is net of a debt discount of $1,677. Total repayment at maturity is $148,339. (3) Balance of $187,752 is net of a debt discount of $1,281. Total repayment at maturity is $189,033, which includes a $2,000 exit fee payable upon repayment. (4) Balance of $121,343 is net of a debt premium of $1,138. Total repayment at maturity is $120,205. (5) Primarily foreign seasonal lines of credit. Outstanding Senior Secured Debt ABL Credit …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following disaggregates sales and other operating revenues by major source, with the All Other category being included for purposes of reconciliation of the respective balances below of the Leaf segment (the Companys sole reportable segment) to the consolidated financial statements : Years Ended March 31, 2026 2025 2024 Leaf: Product revenues $ 2,235,763 $ 2,335,107 $ 1,912,438 Processing and other revenues 169,310 135,877 117,177 Leaf sales and other operating revenues 2,405,073 2,470,984 2,029,615 All Other: All Other sales and other operating revenues 7,927 10,276 2,944 Total sales and other operating revenues $ 2,413,000 $ 2,481,260 $ 2,032,559 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"24. Equity-Based Compensation On March 21, 2024 and March 19, 2025, the Board of Directors amended and restated the Incentive Plan to increase the number of shares of the Company s common stock authorized to be issued thereunder to 3,220 shares and to 3,612 shares (which amounts are presented in thousands), respectively. Pursuant to the Incentive Plan, prior to May 10, 2024, the Company granted time-vesting restricted stock units, with the vesting of these restricted stock units being subject to continued employment or service through specified dates and the condition that the Companys common stock be listed for trading on a national securities exchange or an approved foreign securities exchange by March 31, 2028 (the ""Listing Condition""). On May 10, 2024 (the ""Modification Date""), the restricted stock units granted under the Incentive Plan that were outstanding immediately prior to that date were amended to extend the period by which the Listing Condition must be satisfied for the vesting of such restricted stock units from March 31, 2028 to March 31, 2031 and to provide that the Listing Condition shall be deemed to be satisfied on March 31, 2031, regardless of whether the Companys common stock has been listed by that date on a national securities exchange or foreign securities exchange and would vest earlier upon the occurrence of a ""Change in Control"" (as defined in the Incentive Plan) as a result of a merger, consolidation, share exchange or sale of all or substant …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The inputs used to measure fair value are prioritized based on a three-level valuation hierarchy, which is comprised of observable and non-observable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company s market assumptions. These three levels of inputs create the following fair value hierarchy: Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include data points that are observable such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other data points that are observable (other than quoted prices) or can be corroborated by observable market data. Level 3 inputs are unobservable data points that are supported by little or no market activity, which requires management of the Company to develop its own assumptions. The following summarizes the fair value of the Company's financial assets and liabilities measured on a recurring basis, along with their corresponding level within the fair value hierarchy: March 31, 2026 2025 Level 2 Level 3 Total at Fair Value Level …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Intangible Assets, Net The gross carrying amount and accumulated amortization of intangible assets consist of the following: March 31, 2026 Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships 6.4 years $ 26,101 $ (12,144) $ 13,957 Technology 2.4 years 11,618 (8,292) 3,326 Trade names 8.4 years 11,300 (4,507) 6,793 Total $ 49,019 $ (24,943) $ 24,076 March 31, 2025 Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships 7.4 years $ 26,101 $ (9,969) $ 16,132 Technology 3.4 years 11,618 (6,844) 4,774 Trade names 9.4 years 11,300 (3,699) 7,601 Total $ 49,019 $ (20,512) $ 28,507 The following summarizes amortization expense for definite-lived intangible assets: Years Ended March 31, 2026 2025 2024 Amortization expense $ 4,431 $ 4,532 $ 4,631 The following summarizes the estimated intangible asset amortization expense for the next five fiscal years and beyond: Customer Relationships Technology (1) Trade Names Total 2027 $ 2,175 $ 1,378 $ 807 $ 4,360 2028 2,175 1,375 807 4,357 2029 2,175 573 807 3,555 2030 2,175 807 2,982 2031 2,175 807 2,982 Thereafter 3,082 2,758 5,840 Total $ 13,957 $ 3,326 $ 6,793 $ 24,076 (1) Estimated amortization expense for technology is based on costs accumulated as of March 31, 2026. These estimates will change as new costs are inc …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Income Tax Provision The components of income before income taxes and other items consisted of the following: Years Ended March 31, 2026 2025 2024 Domestic $ (20,603) $ (4,579) $ (17,697) Foreign 49,233 38,033 33,170 Total $ 28,630 $ 33,454 $ 15,473 The details of the amount shown for income taxes in the consolidated statements of operations are as follows: Years Ended March 31, 2026 2025 2024 Current: Federal $ 1,323 $ 6,837 $ 5,319 State (280) 261 (59) Foreign 26,522 23,611 24,385 Total Current 27,565 30,709 29,645 Deferred: Federal (1) (151) (10,307) 968 State 6 (155) (9) Foreign 2,924 4,806 (3,323) Total Deferred 2,779 (5,656) (2,364) Income tax expense $ 30,344 $ 25,053 $ 27,281 (1) Deferred federal expense for fiscal year 2025 was primarily due to release of a valuation allowance in the U.S. from improved profitability. The difference between income tax expense based on income before income taxes and other items and the amount computed by applying the U.S. statutory federal income tax rate to income are as follows: Years Ended March 31, 2026 2025 2024 $ % $ % $ % U.S. federal statutory tax rate 6,012 21.0 7,025 21.0 3,249 21.0 State and local income taxes, net of federal income tax effect (1) (196) (0.7) 51 0.2 (102) (0.7) Foreign tax effects Argentina Changes in valuation allowances 1,679 5.9 5,563 16.6 484 3.1 Exchange effects and currency translation (396) (1.4) (2,580) (7.7) 1,517 9.8 Other (351) (1.2) (2,492) (7.4) (792) (5.1) Brazil Exchange effects a …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Contingencies and Other Information Brazilian Tax Credits The government in the Brazilian State of Parana (""Parana"") issued a tax assessment on October 26, 2007, with respect to local intrastate trade tax credits that result primarily from tobacco transferred between states within Brazil. At March 31, 2026, the assessment for intrastate trade tax credits taken is $2,529 and the total assessment including penalties and interest is $11,306. The Company believes it has properly complied with Brazilian law and will contest any assessment through the judicial process. Should the Company lose in the judicial process, the loss of the intrastate trade tax credits would have a material impact on the consolidated financial statements of the Company. Other Matters In addition to the above-mentioned matter, the Company or certain of its subsidiaries are involved in other litigation or legal matters incidental to their business activities, including tax matters. While the outcome of these matters cannot be predicted with certainty, they are being vigorously defended and the Company does not currently expect that any of them will have a material adverse effect on its business or financial position. However, should one or more of these matters be resolved in a manner adverse to its current expectation, the effect on the Companys results of operations for a particular fiscal reporting period could be material."

LegalMattersAndContingenciesTextBlock

Leases The following summarizes lease costs: Years Ended March 31, 2026 2025 2024 Operating lease costs $ 14,998 $ 14,199 $ 16,028 Variable and short-term lease costs 19,640 14,848 8,964 Total lease costs $ 34,638 $ 29,047 $ 24,992 The following summarizes the measurement of remaining operating lease terms and discount rates: March 31, 2026 2025 Weighted average remaining lease term 4.3 years 4.8 years Weighted average discount rate 16.1% 15.4% The following summarizes supplemental cash flow information related to operating leases: Years Ended March 31, 2026 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 14,664 $ 14,145 $ 15,764 Noncash investing activity: Right-of-use assets obtained in exchange for new operating lease liabilities 12,164 3,964 10,444 Future minimum lease payments required under operating lease agreements, including those with extended lease term options that are reasonably certain of being exercised, as of March 31, 2026 are summarized by fiscal year as follows: Operating Leases 2027 $ 13,971 2028 9,798 2029 5,793 2030 4,409 2031 2,960 Thereafter 5,265 Total future minimum lease payments 42,196 Less: amounts related to imputed interest 11,261 Present value of lease liabilities (1) $ 30,935 (1) This amount is comprised of $9,915 and $21,020 of current and noncurrent operating lease liabilities, respectively, included in the consolidated balance sheets.

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"Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures , to provide more disaggregation of income tax information mainly related to the effective tax rate reconciliation and the income taxes paid disclosure requirements. Under the new accounting rules, the tabular effective tax rate reconciliation must include specific categories with certain reconciling items based on the expected tax further disaggregated by nature and/or jurisdiction. Income taxes paid, net of refunds received, must be broken out by federal, state, and foreign taxes, and further disaggregated by individual jurisdictions based on total income taxes paid. The Company adopted these new and enhanced annual income tax disclosures on a retrospective basis beginning with the fiscal year ended March 31, 2026. Prior period disclosures have been recast to reflect the new disclosure requirements. The adoption of this new rule resulted in expanded income tax disclosures, which are included in "" Note 5. Income Taxes ,"" and did not have an impact on the Company's financial condition, results of operations, or cash flows. In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments - Credit Losses: Measurement of Credit Losses for Accounts Receivable and Contract Assets , to include a practical expedient related to the estimation of expected cr …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Pension and Other Postretirement Benefits Defined Benefit Plans The Company terminated one of its defined benefit pension plans in the United Kingdom (""U.K. Pension Plan"") during the year ended March 31, 2024. The U.K. Pension Plan was over-funded. During the year ended March 31, 2024, the Company utilized the surplus assets to pay termination fees and received a $1,106 cash distribution from the plan termination. The Company recorded a noncash pension settlement charge of $12,008 during the year ended March 31, 2024, which included the disposition of the U.K. Pension Plan assets and the reclassification of $3,511 unrecognized net pension losses, net of $1,170 tax benefit, within accumulated other comprehensive income into the Company's consolidated statements of operations. The following summarizes benefit obligations, plan assets, and funded status for the defined benefit pension plans: U.S. Plans Non-U.S. Plans Total March 31, 2026 Benefit obligation, beginning $ 32,877 $ 19,571 $ 52,448 Service cost 211 211 Interest cost 1,559 1,003 2,562 Plan amendments 15 15 Actuarial losses (gains) 765 (666) 99 Plan settlements (1,032) (1,032) Effects of currency translation 232 232 Benefits paid (3,337) (1,489) (4,826) Benefit obligation, ending $ 31,864 $ 17,845 $ 49,709 Fair value of plan assets, beginning $ $ 22,421 $ 22,421 Actual return on plan assets (670) (670) Employer contributions 3,337 605 3,942 Plan settlements (1,032) (1,032) Benefits paid (3,337) (1,489) (4,826) Fair …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Related Party Transactions The Company engages in transactions with its equity method investees primarily for the procuring and processing of inventory. The following summarizes sales and purchases transactions with related parties: Years Ended March 31, 2026 2025 2024 Sales $ 23,112 $ 16,512 $ 25,059 Purchases 193,856 214,341 204,193 Dividends received 8,436 12,449 14,486 The Company included the following related party balances in its consolidated balance sheets: March 31, 2026 2025 Location in Consolidated Balance Sheet Accounts receivable, related parties $ 62 $ 50 Other receivables Accounts payable, related parties 39,317 19,731 Accounts payable Transactions with Significant Shareholders Based on a Schedule 13D/A filed with the SEC on June 13, 2024 by Glendon Capital Management, L.P. (the ""Glendon Investor""), Holly Kim Olsen, Glendon Opportunities Fund, L.P. and Glendon Opportunities Fund II, L.P., the Glendon Investor reported beneficial ownership of 8,315 shares of the Companys common stock, representing approximately 33.8% of the outstanding shares of the Companys common stock. A representative of the Glendon Investor serves as a director of Pyxus. Based on a Schedule 13D/A filed with the SEC on March 25, 2024, by Monarch Alternative Capital LP (the ""Monarch Investor""), MDRA GP LP and Monarch GP LLC, the Monarch Investor reported beneficial ownership of 6,125 shares of the Companys common stock, representing approximately 24.9% of the outstanding shares of the Co …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Recognition Product revenues are primarily processed tobacco sold to the customer. Processing and other revenues are mainly contracts to process customer-owned green tobacco. During such processing, ownership remains with the customers. All Other revenue is primarily composed of revenue from the sale of non-tobacco agricultural products. The following disaggregates sales and other operating revenues by major source, with the All Other category being included for purposes of reconciliation of the respective balances below of the Leaf segment (the Companys sole reportable segment) to the consolidated financial statements : Years Ended March 31, 2026 2025 2024 Leaf: Product revenues $ 2,235,763 $ 2,335,107 $ 1,912,438 Processing and other revenues 169,310 135,877 117,177 Leaf sales and other operating revenues 2,405,073 2,470,984 2,029,615 All Other: All Other sales and other operating revenues 7,927 10,276 2,944 Total sales and other operating revenues $ 2,413,000 $ 2,481,260 $ 2,032,559 The following summarizes activity in the claims allowance: Years Ended March 31, 2026 2025 2024 Balance, beginning of period $ 2,436 $ 3,313 $ 2,350 Additions 8,318 2,010 6,191 Payments and other adjustments (4,846) (2,887) (5,228) Balance, end of period $ 5,908 $ 2,436 $ 3,313 Taxes Collected from Customers Value-added taxes were $50,656, $43,298, and $34,905 for the years ended March 31, 2026, 2025, and 2024, respectively. …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Information The Company is primarily engaged in the processing and sale of leaf tobacco to manufacturers of cigarettes and other consumer tobacco products around the world, with a smaller percentage of revenue in each region being derived from performing third-party tobacco processing services. The Company's leaf tobacco operations are organized by six operating segments, represented by five geographic regions and one product category. The geographic regions of Africa, Asia, Europe, North America, and South America, as well as Value-Added Tobacco Products (""VATP""), which is primarily comprised of the Company's cut rag tobacco operations, each have their own management teams responsible for the operating and financial results of their operating segment. Further, revenues for each geographic region and VATP are derived mainly from shipping processed tobacco. The Company evaluated its leaf tobacco operations and concluded they have similar economic characteristics and meet qualitative aggregation criteria to be combined into one reportable segment for financial reporting purposes: Leaf. The one Leaf reportable segment is consistent with information used by the chief operating decision maker (""CODM"") to assess performance, make operating decisions, and allocate resources. The Company s CODM, comprised of both the chief executive officer and the chief financial officer, regularly evaluates performance using operating income as the measure of segment profitability. Thi …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events Securitized Receivables On May 29, 2026, the Finacity Facility arrangement was extended to May 31, 2027. Additionally, on June 1, 2026, the investment limit of the Finacity Facility was decreased from $160,000 to $120,000 of trade receivables.

SubsequentEventsTextBlock

"Debt Arrangements The following summarizes debt and notes payable: Interest Rate December 31, 2025 December 31, 2024 March 31, 2025 Senior secured credit facilities: ABL Credit Facility 7.2 % (1) $ $ $ Senior secured notes: 8.5% Notes Due 2027 (2) 8.5 % (1) 146,451 145,628 145,820 Senior secured term loans: Intabex Term Loans (3) 12.5 % (1) 187,595 187,006 187,144 Pyxus Term Loans (4) 12.5 % (1) 121,483 122,009 121,886 Other Debt: Other long-term debt 8.8 % (1) 49 12 Notes payable (5) 8.9 % (1) 833,733 608,648 395,030 Total debt $ 1,289,262 $ 1,063,340 $ 849,892 Short-term (5) $ 833,733 $ 608,648 $ 395,030 Long-term: Current portion of long-term debt $ $ 49 $ 12 Long-term debt 455,529 454,643 454,850 Total $ 455,529 $ 454,692 $ 454,862 Letters of credit $ 8,460 $ 8,095 $ 7,790 (1) Weighted average stated rate for the trailing twelve months ended December 31, 2025 or, for indebtedness outstanding only during a portion of such twelve-month period, for the portion of such period that such indebtedness was outstanding. (2) Balance of $146,451 is net of a debt discount of $1,888. Total repayment at maturity is $148,339. (3) Balance of $187,595 is net of a debt discount of $1,438. Total repayment at maturity is $189,033, which includes a $2,000 exit fee payable upon repayment. (4) Balance of $121,483 is net of a debt premium of $1,278. Total repayment at maturity is $120,205. (5) Primarily foreign seasonal lines of credit. Outstanding Senior Secured Debt ABL Credit Facility The Co …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following disaggregates sales and other operating revenues by major source, with the All Other category being included for purposes of reconciliation of the respective balances below of the Leaf segment (the Company's sole reportable segment) to the condensed consolidated financial statements: Three Months Ended Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Leaf: Product revenue $ 614,666 $ 742,919 $ 1,584,101 $ 1,847,949 Processing and other revenues 37,782 32,416 143,413 122,520 Leaf sales and other operating revenues 652,448 775,335 1,727,514 1,970,469 All Other: All Other sales and other operating revenues 3,350 2,972 7,309 9,076 Total sales and other operating revenues $ 655,798 $ 778,307 $ 1,734,823 $ 1,979,545

DisaggregationOfRevenueTableTextBlock

"Equity-Based Compensation Pursuant to the Pyxus International, Inc. Amended and Restated 2020 Incentive Plan (the ""Incentive Plan""), a total of 3,612 shares (which amounts are presented in thousands) have been authorized for grants of equity-based awards to certain employees and non-employee directors. Restricted Stock Units Restricted stock units granted under the Incentive Plan are earned ratably for certain employees, subject to their continued employment, from the date of the award to March 31, 2027, and for certain non-employee directors, subject to continued board service, from the date of the award to the Company's next annual meeting of shareholders. Restricted stock units vest upon the earlier of March 31, 2031 or the occurrence of a change-in-control event or a liquidity event as such terms are defined under the restricted stock unit award agreement. The following summarizes activity for restricted stock units: (in thousands, except grant date fair value) Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Nonvested, March 31, 2025 1,724 $ 3.46 Granted 85 4.23 Canceled or forfeited (23) 3.50 Nonvested, December 31, 2025 1,786 $ 3.49 The following summarizes equity-based compensation expense for restricted stock units, which is recorded in selling, general, and administrative expenses within the condensed consolidated statements of operations: Three Months Ended Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Equity-based compen …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The following summarizes the financial assets and liabilities measured at fair value on a recurring basis: December 31, 2025 December 31, 2024 March 31, 2025 Level 2 Level 3 Total at Fair Value Level 2 Level 3 Total at Fair Value Level 2 Level 3 Total at Fair Value Financial Assets: Derivative financial instruments $ 81 $ $ 81 $ $ $ $ 982 $ $ 982 Securitized beneficial interests 14,326 14,326 17,671 17,671 29,354 29,354 Total assets $ 81 $ 14,326 $ 14,407 $ $ 17,671 $ 17,671 $ 982 $ 29,354 $ 30,336 Financial Liabilities: Derivative financial instruments $ $ $ $ 3,987 $ $ 3,987 $ 57 $ $ 57 Long-term debt (1) 436,221 436,221 421,091 49 421,140 433,885 12 433,897 Guarantees 3,338 3,338 2,666 2,666 6,459 6,459 Total liabilities $ 436,221 $ 3,338 $ 439,559 $ 425,078 $ 2,715 $ 427,793 $ 433,942 $ 6,471 $ 440,413 (1) This fair value measurement disclosure does not affect the condensed consolidated balance sheets. The following summarizes the reconciliation of changes in Level 3 instruments measured on a recurring basis: Three Months Ended December 31, 2025 December 31, 2024 Securitized Beneficial Interests Long-Term Debt Guarantees Securitized Beneficial Interests Long-Term Debt Guarantees Balance, beginning of period $ 4,742 $ $ 843 $ 11,093 $ 91 $ 284 Issuances 60,443 2,970 56,192 2,408 Settlements (48,213) (45,409) (42) (26) Losses recognized in earnings (2,646) (475) (4,205) Balance, end of period $ 14,326 $ $ 3,338 $ 17,671 $ 49 $ 2,666 Nine Months Ended …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Intangible Assets, Net The gross carrying amount and accumulated amortization of intangible assets consist of the following: December 31, 2025 Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships 6.7 years $ 26,101 $ (11,601) $ 14,500 Technology 2.7 years 11,618 (7,938) 3,680 Trade names 8.7 years 11,300 (4,305) 6,995 Total $ 49,019 $ (23,844) $ 25,175 December 31, 2024 Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships 7.7 years $ 26,101 $ (9,425) $ 16,676 Technology 3.6 years 11,618 (6,469) 5,149 Trade names 9.7 years 11,300 (3,498) 7,802 Total $ 49,019 $ (19,392) $ 29,627 March 31, 2025 Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization: Customer relationships 7.4 years $ 26,101 $ (9,969) $ 16,132 Technology 3.4 years 11,618 (6,844) 4,774 Trade names 9.4 years 11,300 (3,699) 7,601 Total $ 49,019 $ (20,512) $ 28,507 The following summarizes amortization expense for definite-lived intangible assets: Three Months Ended Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Amortization expense $ 1,099 $ 1,120 $ 3,332 $ 3,412

GoodwillAndIntangibleAssetsDisclosureTextBlock

"Income Taxes The Companys provision for income taxes for the three and nine months ended December 31, 2025 was calculated by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss and adjusting for discrete items that occurred during the period. The Companys provision for income taxes for the three and nine months ended December 31, 2024 was calculated using the discrete method, as allowed under FASB Accounting Standards Codification 740-270, Income Taxes - Interim Reporting . The discrete method used in the prior year calculates income tax expense as if the nine-month interim period was an annual period. The effective tax rate for the three months ended December 31, 2025 and 2024 was 68.2% and 54.5%, respectively. For the three months ended December 31, 2025, the difference between the Company's effective tax rate and the U.S. statutory rate of 21.0% is primarily due to tax expense related to the effect of non-U.S. income taxes, non-deductible interest expense, and unremitted foreign earnings. The effective tax rate for the nine months ended December 31, 2025 and 2024 was 170.7% and 70.3%, respectively. For the nine months ended December 31, 2025, the difference between the Company's effective tax rate and the U.S. statutory rate of 21.0% is primarily due to tax expense related to foreign currency gains, additional reserves for unrecognized tax benefits, and non-deductible interest expense. On July 4, 2025, the U.S. government enacted the On …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Contingencies and Other Information Brazilian Tax Credits The government in the Brazilian State of Parana (""Parana"") issued a tax assessment on October 26, 2007 with respect to local intrastate trade tax credits that result primarily from tobacco transferred between states within Brazil. At December 31, 2025, the assessment for intrastate trade tax credits taken is $2,399 and the total assessment including penalties and interest is $10,595. The Company believes it has properly complied with Brazilian law and will contest any assessment through the judicial process. Should the Company lose in the judicial process, the loss of the intrastate trade tax credits would have a material impact on the financial statements of the Company. Other Matters In addition to the above-mentioned matters, the Company or certain of its subsidiaries are involved in other litigation or legal matters incidental to their business activities, including tax matters. While the outcome of these matters cannot be predicted with certainty, they are being vigorously defended and the Company does not currently expect that any of them will have a material adverse effect on its business or financial position. However, should one or more of these matters be resolved in a manner adverse to its current expectation, the effect on the Companys results of operations for a particular fiscal reporting period could be material."

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"Recently Adopted Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures . This ASU amends FASB Topic 280 to permit the disclosure of multiple measures of a segment's profit or loss, and requires an entity with a single reportable segment to apply FASB Topic 280 in its entirety. In addition, this ASU requires the following new segment disclosures: Significant segment expenses by reportable segment if regularly provided to the Chief Operating Decision Maker (""CODM"") and included within the reported measure of segment profit or loss; Other segment items, which represents the difference between reported segment revenues less the significant segment expenses less reported segment profit or loss; and Title and position of the CODM. Disclosures required under this new ASU and the existing segment profit or loss and assets disclosures currently required annually by FASB Topic 280 are to be disclosed in interim periods. The Company adopted the annual period disclosure requirements for its fiscal year ended March 31, 2025. The interim period disclosure requirements were adopted on April 1, 2025, and are included in "" Note 19. Segment Information "". The adoption of this new accounting standard resulted in additional disclosures for segment reporting, and did not have an impact on the Company's financial condition, resul …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Related Party Transactions The Company engages in transactions with its equity method investees primarily for the procuring and processing of inventory. The following summarizes activities with the Company's equity method investees: Three Months Ended Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Sales $ 579 $ 474 $ 20,564 $ 15,015 Purchases 73,752 88,908 150,754 187,202 Dividends received 7,022 11,475 7,022 11,475 The Company included the following related party balances in its condensed consolidated balance sheets: December 31, 2025 December 31, 2024 March 31, 2025 Location in Condensed Consolidated Balance Sheet Accounts receivable, related parties $ 4,671 $ 54 $ 50 Other receivables Accounts payable, related parties 45,354 72,182 19,731 Accounts payable Transactions with Significant Shareholders Based on a Schedule 13D/A filed with the SEC on June 13, 2024 by Glendon Capital Management, L.P. (the ""Glendon Investor""), Holly Kim Olsen, Glendon Opportunities Fund, L.P. and Glendon Opportunities Fund II, L.P., the Glendon Investor reported beneficial ownership of 8,315 shares of the Companys common stock, representing approximately 33.8% of the outstanding shares of the Companys common stock. A representative of the Glendon Investor serves as a director of Pyxus. Based on a Schedule 13D/A filed with the SEC on March 25, 2024, by Monarch Alternative Capital LP (the ""Monarch Investor""), MDRA GP LP and Monarch GP LLC, the Monarch Investor reported benefici …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Recognition Product revenue is primarily processed tobacco sold to the customer. Processing and other revenues are mainly contracts to process customer-owned green tobacco. During such processing, ownership remains with the customers. All Other revenue is primarily composed of revenue from the sale of non-tobacco agriculture products. The following disaggregates sales and other operating revenues by major source, with the All Other category being included for purposes of reconciliation of the respective balances below of the Leaf segment (the Company's sole reportable segment) to the condensed consolidated financial statements: Three Months Ended Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Leaf: Product revenue $ 614,666 $ 742,919 $ 1,584,101 $ 1,847,949 Processing and other revenues 37,782 32,416 143,413 122,520 Leaf sales and other operating revenues 652,448 775,335 1,727,514 1,970,469 All Other: All Other sales and other operating revenues 3,350 2,972 7,309 9,076 Total sales and other operating revenues $ 655,798 $ 778,307 $ 1,734,823 $ 1,979,545 The following summarizes activity in the allowance for expected credit losses: Three Months Ended Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Balance, beginning of period $ (23,765) $ (24,250) $ (24,035) $ (23,940) Additions (60) (671) (143) (1,299) Write-offs and other adjustments 6,524 525 6,877 843 Balance, end of period (17,301) (24,396) (17,301) (24,396) Trade receivables 264,11 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information The following summarizes segment information, with the All Other category being included for purposes of reconciliation of the respective balances of the Leaf segment (the Company's sole reportable segment) to the condensed consolidated financial statements: Three Months Ended Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Sales and other operating revenues: Leaf $ 652,448 $ 775,335 $ 1,727,514 $ 1,970,469 All Other 3,350 2,972 7,309 9,076 Consolidated sales and other operating revenues $ 655,798 $ 778,307 $ 1,734,823 $ 1,979,545 Cost of goods and services sold: Leaf $ 553,138 $ 659,367 $ 1,475,077 $ 1,692,517 All Other 2,768 2,493 6,439 11,260 Consolidated cost of goods and services sold $ 555,906 $ 661,860 $ 1,481,516 $ 1,703,777 Selling, general, and administrative expenses: Leaf $ 37,007 $ 44,719 $ 114,529 $ 121,141 All Other 1,277 1,794 4,266 4,909 Consolidated selling, general, and administrative expenses $ 38,284 $ 46,513 $ 118,795 $ 126,050 Other segment items: (1) Leaf $ 8,677 $ 3,821 $ 14,041 $ 10,618 All Other 141 (57) (168) (932) Consolidated other segment items $ 8,818 $ 3,764 $ 13,873 $ 9,686 Leaf segment operating income $ 53,626 $ 67,428 $ 123,867 $ 146,193 All Other operating loss (836) (1,258) (3,228) (6,161) Restructuring and asset impairment charges 1,504 89 1,625 416 Consolidated operating income $ 51,286 $ 66,081 $ 119,014 $ 139,616 Gain on debt retirement 8,178 Gain on pension settlement 373 373 Interest expense, net …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated interim financial statements represent the consolidation of Pyxus International, Inc. (the ""Company,"" ""Pyxus,"" ""we,"" ""us,"" or ""our"") and all companies that Pyxus directly or indirectly controls, either through majority ownership or otherwise. These condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (""U.S. GAAP"") for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, the normal and recurring adjustments necessary for a fair presentation of the results of operations, financial position, and cash flows have been included. These condensed consolidated interim financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025 filed on June 10, 2025. The year-end condensed consolidated balance sheet data was derived from the audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. Due to the seasonal nature of the Companys business, the results of operations for a fiscal q …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"S ubsequent Events Effective January 1, 2026, the investment limit of the Finacity Facility described in "" Note 12. Securitized Receivables "" was temporarily increased from $120,000 to $160,000 of trade receivables through May 31, 2026."

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