Caesarstone Reports Third Quarter 2026 Financial Results

Higher gross margin and a narrower adjusted EBITDA loss contrasted with a larger net loss and substantial going-concern uncertainty.

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- Revenue of $96.3 Million and Gross Margin of 25.4% -

- Net loss of $56.1 million reflecting $46.8 Million Related to California Jury Verdict -

- Adjusted Net loss of $1.6 million and Delivers Near Breakeven Adjusted EBITDA -

MP MENASHE, Israel--(BUSINESS WIRE)-- Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today reported financial results for its third quarter ended September 30, 2026.

Yos Shiran, Caesarstone’s Chief Executive Officer commented, “Our underlying business performed well as we continued to execute our strategic plan. Gross margin improved year-over-year for the third consecutive quarter, reaching 25.4%. We also delivered near breakeven Adjusted EBITDA reflecting the benefits of our optimized production network and the cost savings from our restructuring plan. While the U.S. market remains soft, we saw stabilization in Canada and continued growth in Australia as we rebuild our position in that important market. Separately, we strongly disagree with the recent jury verdict in California and will consider our available post-trial remedies as we evaluate its impact on our business.”

Third Quarter 2026 Results

Revenue in the third quarter of 2026 was $96.3 million compared to $102.1 million in the prior year quarter. On a constant currency basis, third quarter revenue was lower by approximately 7.2% year-over-year, reflecting continued softness in global demand and competitive pressures, particularly in the U.S., partially offset by strength in Australia.

Gross margin in the third quarter of 2026 was 25.4% compared to 17.3% in the prior year quarter. Adjusted gross margin in the third quarter was 26.9%, compared to 17.3% in the prior year quarter. The improvement in gross margin mainly reflects the realization of cost savings associated with the Company’s transition to its global network of production partners following the closure of its Bar-Lev facility. The third quarter also benefited from a refund received on account of previously paid U.S. IEEPA tariffs.

Operating expenses in the third quarter of 2026 were $81.4 million, or 84.6% of revenue, compared to $33.7 million, or 33.0% of revenue in the prior year quarter. The year-over-year difference primarily reflects higher legal settlements and loss contingencies which includes the impact of the recent California jury verdict. Excluding legal settlements and loss contingencies and impairment and restructuring expenses, operating expenses were 28.8% of revenue compared to 29.1% in the prior year quarter.

Operating loss in the third quarter of 2026 was $56.9 million compared to an operating loss of $16.0 million in the prior year quarter. The decline was primarily driven by higher operating expenses primarily related to legal settlements and loss contingencies.

Adjusted EBITDA in the third quarter of 2026, which excludes expenses for non-cash share-based compensation, legal settlements and loss contingencies, impairment and restructuring charges and other non-recurring items, was a loss of $0.1 million compared to a loss of $7.9 million in the prior year quarter. The improvement primarily reflects higher gross margin and the benefits of the Company’s cost savings initiatives.

Finance income in the third quarter of 2026 was $1.2 million compared to finance expenses of $1.8 million in the prior year quarter. The difference primarily reflects foreign currency exchange rate fluctuations.

Net loss attributable to controlling interest for the third quarter of 2026 was $56.1 million, compared to $18.1 million in the prior year quarter. Net loss per share for the third quarter of 2026 was $1.62 compared to a net loss per share of $0.52 in the prior year quarter. Adjusted diluted net loss per share for the third quarter was $0.05 on 35.0 million shares, compared to an Adjusted diluted net loss per share of $0.40 in the prior year quarter on 34.6 million shares.

Balance Sheet & Liquidity

As of September 30, 2026, the Company’s balance sheet included cash, cash equivalents and short-term bank deposits of $50.7 million and no debt to financial institutions compared to a net cash position of $51.8 million as of June 30, 2026.

U.S. Tariffs Update

The Company continues to monitor the impact of existing and proposed U.S. tariffs affecting various countries and product categories, that are currently in a wide range on the majority of products imported into the U.S. Approximately 40% of the Company’s revenues during the three months ended September 30, 2026 were generated in the U.S. market, served by the Company’s global production network.

In addition to other tariffs, on July 31, 2026, the U.S. Administration issued its final determination imposing a four-year tariff-rate quota on imports of quartz surface products, effective August 15, 2026. During the first year, the industry’s covered imports within an annual quota of approximately 13.0 million square meters, assessed quarterly, will be subject to an additional 25% tariff, while imports exceeding the quota will be subject to an additional 50% tariff. During the subsequent three years, the tariff rates will gradually decline, while the annual quota will gradually increase.

The Company estimates the annualized impact of the additional tariffs under the tariff-rate quota, which apply on top of existing tariffs, to be in the range of $10.0 million to $15.0 million. The Company implemented pricing actions in the U.S. in September 2026 and is evaluating further supply-chain and sourcing actions to mitigate the impact of these tariffs.

Legal Proceedings Update

Caesarstone Ltd. (the “Company”) and its subsidiaries, including Caesarstone USA, Inc., are defendants in approximately 870 individual suits alleging injuries related to exposure to silica particles while fabricating the Company’s products, including approximately 670 claims in the U.S. The Company is unable to estimate the potential exposure related to the majority of such claims in the U.S. since they are either at an early stage or considered only reasonably possible losses, and therefore no provision has been recorded in connection therewith.

On October 26, 2026, the jury rendered a verdict in one such case brought in the Superior Court of California, Dennys Rene Rivas-Williams v. A&A Granite Marble, et al. The jury found the Company liable and awarded the plaintiff approximately $67.3 million in damages. The Company was apportioned 69.1% of the fault, or approximately $46.8 million, if assessed without modification.

The Company strongly disagrees with the jury’s verdict. It believes the verdict is not supported by the facts of the case or the applicable law, including the fault attributable to the plaintiff’s employer, and that the trial included significant legal errors and will consider its available post-trial remedies.

The jury verdict has created significant uncertainty regarding the Company’s financial condition and prospects and raises substantial doubt about its ability to continue as a going concern in the ordinary course. The Company is evaluating the impact of the verdict on its business, results of operations, liquidity and financial condition and is considering its alternatives.

During October, the Company resolved additional claims in California. Prior verdicts remain under appeal.

In addition, the Company and certain of its insurers in the U.S. are in litigation to determine coverage, and therefore there is no assurance as to the availability of coverage under the Company’s insurance policies. The Company intends to continue to vigorously defend these claims and to continue to seek its rights to coverage.

As of September 30, 2026, the Company recorded a provision of $105.5 million, representing its best estimate of probable and reasonably estimable losses associated with legal proceedings. As of September 30, 2026 the Company recorded $13.6 million of insurance receivables related to claims in Israel and Australia.

Additional information related to legal proceedings can be found in the Company's Annual Report on Form 20-F for the year ended December 31, 2025.

Webcast and Conference Call Details

The Company will host a webcast and conference call today at 8:30 a.m. ET to discuss the results. The live webcast can be accessed through the Investor Relations section of the Company’s website at ir.caesarstone.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally, by dialing 1-833-816-1463 and 1-412-542-4167, respectively. The toll-free Israeli number is +972 3-374-1008. Upon dialing in, please request to join the Caesarstone Third Quarter 2026 Earnings Conference Call.

To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 or +1-412-317-6671 (international) and enter pass code 10212506. The replay will be available beginning at 12:30 p.m. ET on Wednesday, November 11, 2026 and will last through 11:59 p.m. ET on Wednesday, November 18, 2026.

About Caesarstone

Caesarstone is a global leader of premium surfaces, specializing in countertops that create dynamic spaces of inspiration in the heart of the home. Established in 1987, its multi-material portfolio of over 100 colors combines the company’s innovative technology with its powerful design passion. Spearheading high-quality, sustainable surfaces, Caesarstone delivers functional resilience with timeless beauty, for a vast range of applications, including kitchen countertops, bathroom vanities, and more, for indoor and outdoor spaces.

Since it pioneered quartz countertops over thirty years ago, the brand has expanded into porcelain and natural stone and is on the ground in more than 50 countries worldwide while enhancing customer experience through the expansion of groundbreaking digital platforms & services. More information on Caesarstone: caesarstoneus.com, Facebook, LinkedIn and Instagram

The Company has filed its annual report on Form 20-F for the year ended December 31, 2025 with the U.S. securities and exchange commission (“SEC”) and can be accessed on its website.

Non-GAAP Financial Measures

The non-GAAP measures presented by the Company should be considered in addition to, and not as a substitute for, comparable GAAP measures. Reconciliations of GAAP gross profit to Adjusted gross profit, GAAP net income (loss) to Adjusted net income (loss) and net income (loss) to Adjusted EBITDA are provided in the schedules to this release. To calculate revenues growth rates that exclude the impact of changes in foreign currency exchange rates, the Company converts actual reported results from local currency to U.S. dollars using constant foreign currency exchange rates in the current and comparable period. The Company provides these non-GAAP financial measures because it believes that they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes that they are useful to investors in enhancing an understanding of the Company's operating performance.

Forward-Looking Statements

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “goals," “intend,” “seek,” “anticipate,” “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “plan,” “outlook,” “future” and “project” and other similar expressions that predict, project or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include statements regarding the Company’s goals and plans, intentions, expectations, assumptions, goals and beliefs regarding the Company’s business. Actual results may differ materially from those projections and estimates due to various risks and uncertainties, both known or unknown. These factors include, but are not limited to: the effects of the global and regional economy and geo-politics on the Company’s business and operations including the length, duration and impact of the war in Israel, the Houthi’s disruption to the movement of goods in the Red Sea and trade disruptions such as Turkey’s decision not to trade with Israel; the outcome of silicosis and other bodily injury claims, including appeals and post-trial remedies, and the availability of relevant insurance; regulatory changes and requirements relating to the manufacturing and fabrication of our products; the outcome of our restructuring efforts, of the closure of the Sdot Yam and Richmond Hill Facilities, the estimated closure costs and the estimated potential savings relating to said closures, the ability to sell or sublease all or part of these facilities; our ability to effectively collaborate with production business partners; our R&D and product introduction efforts, managing constraints in the global supply chain and effectively procuring raw materials and goods as well as fluctuations in their price; our ability to mitigate the recently imposed U.S. customs tariffs; our ability to protect our brand, technology and intellectual property, as well as our freedom to operate; competitive pressures; disruptions to our information technology systems, fluctuations in currency exchange rates against the U.S. dollar; our ability to successfully integrate our acquisitions; our ability to meet ESG goals and targets; and other risks and uncertainties discussed under the sections "Risk Factors" and “Special Note Regarding Forward-Looking Statements and Risk Factor Summary” in our most recent annual report on Form 20-F filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2026, and in other documents filed by Caesarstone with the SEC, which are available free of charge at www.sec.gov. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Caesarstone Ltd. and its subsidiaries Condensed consolidated balance sheets
		As of
U.S. dollars in thousands		September 30, 2026				December 31, 2025
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents and short-term bank deposits		$	50,707			$	59,920
Trade receivables, net			49,003				48,292
Other accounts receivable and prepaid expenses			49,442				50,601
Inventories			79,408				94,275
Total current assets			228,560				253,088
LONG-TERM ASSETS:
Severance pay fund			971				1,245
Deferred tax assets, net			4,879				4,010
Long-term deposits and prepaid expenses			5,694				5,179
Operating lease right-of-use assets			86,654				104,774
Property, plant and equipment, net (*)			25,439				30,146
Total long-term assets			123,637				145,354
Total assets		$	352,197			$	398,442
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term bank credit and other loans		$	-			$	2,853
Trade payables			43,555				37,779
Related parties			179				247
Short term legal settlements and loss contingencies			97,025				38,577
Accrued expenses and other liabilities			61,163				58,718
Total current liabilities			201,922				138,174
LONG-TERM LIABILITIES:
Legal settlements and loss contingencies long-term and other liabilities			8,596				8,735
Deferred tax liabilities, net			1,979				2,168
Long-term lease liabilities			89,901				106,377
Accrued severance pay			2,393				2,886
Long-term warranty provision			819				889
Total long-term liabilities			103,688				121,055
EQUITY:
Ordinary shares			371				371
Treasury shares - at cost			(39,430	)			(39,430	)
Additional paid-in capital			168,109				167,700
Capital fund related to non-controlling interest			(5,587	)			(5,587	)
Accumulated other comprehensive income (loss), net			(11,180	)			(10,874	)
Retained earnings			(65,696	)			27,033
Total equity			46,587				139,213
Total liabilities and equity		$	352,197			$	398,442

Caesarstone Ltd. and its subsidiaries Condensed consolidated statements of income (loss)
			Three months ended September 30,								Nine months ended September 30,
U.S. dollars in thousands (except per share data)				2026				2025				2026				2025
			(Unaudited)								(Unaudited)
Revenues			$	96,269			$	102,112			$	281,531			$	302,793
Cost of revenues				71,784				84,477				214,066				244,121
Gross profit				24,485				17,635				67,465				58,672
Operating expenses:
Research and development				1,273				1,589				3,942				4,313
Sales and Marketing				16,885				18,816				52,780				59,231
General and administrative				9,615				9,266				30,225				29,105
Restructuring expenses (*)				(1,834	)			14				(2,815	)			46
Impairment expenses (**)				-				-				5,800				-
Legal settlements and loss contingencies, net				55,483				3,976				64,068				9,378
Total operating expenses				81,422				33,661				154,000				102,073
Operating loss				(56,937	)			(16,026	)			(86,535	)			(43,401	)
Finance expenses (income), net				(1,249	)			1,767				4,927				5,019
Loss before taxes				(55,688	)			(17,793	)			(91,462	)			(48,420	)
Tax expenses, net				372				294				1,267				1,403
Net loss			$	(56,060	)		$	(18,087	)		$	(92,729	)		$	(49,823	)
Net loss attributable to non-controlling interest				-				(10	)			-				292
Net loss attributable to controlling interest			$	(56,060	)		$	(18,097	)		$	(92,729	)		$	(49,531	)
Basic net loss per ordinary share			$	(1.62	)		$	(0.52	)		$	(2.68	)		$	(1.43	)
Diluted net loss per ordinary share			$	(1.62	)		$	(0.52	)		$	(2.68	)		$	(1.43	)
Weighted average number of ordinary shares used in computing basic loss per ordinary share				34,584,692				34,564,909				34,581,931				34,565,725
Weighted average number of ordinary shares used in computing diluted loss per ordinary share				34,584,692				34,564,909				34,581,931				34,565,725
(*) Related to closed plants.
(**) Impairment related to long lived and held for sale assets.

Caesarstone Ltd. and its subsidiaries Selected Condensed consolidated statements of cash flows
		Nine months ended September 30,
U.S. dollars in thousands			2026				2025
		(Unaudited)
Cash flows from operating activities:
Net loss		$	(92,729	)		$	(49,823	)
Adjustments required to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			4,915				10,430
Share-based compensation expense			409				959
Accrued severance pay, net			(213	)			129
Changes in deferred tax, net			(796	)			(1,117	)
Capital (gain) loss			(24	)			1
Legal settlements and loss contingencies, net			64,068				9,378
Increase in trade receivables			(832	)			(6,323	)
Decrease in other accounts receivable and prepaid expenses			3,690				2,875
Decrease in inventories			14,614				10,878
Increase (decrease) in trade payables			1,351				(4,852	)
Increase (decrease) in warranty provision			(82	)			149
Changes in right of use assets			16,197				382
Changes in lease liabilities			(16,800	)			4,001
Decrease in accrued expenses and other liabilities including related parties			(1,825	)			(4,966	)
Restructuring expenses and Impairment related to long lived assets			2,985				46
Net cash used in operating activities			(5,072	)			(27,853	)
Cash flows from investing activities:
Purchase of property, plant and equipment			(1,422	)			(8,249	)
Proceeds from sale of property, plant and equipment			88				208
Decrease (increase) in long term deposits			(477	)			(85	)
Net cash used in investing activities			(1,811	)			(8,126	)
Cash flows from financing activities:
Changes in short-term bank credits and long-term loans, including related parties			(2,280	)			(1,792	)
Net cash used in financing activities			(2,280	)			(1,792	)
Effect of exchange rate differences on cash and cash equivalents			(50	)			760
Increase (decrease) in cash and cash equivalents and short-term bank deposits			(9,213	)			(37,011	)
Cash and cash equivalents and short-term bank deposits at beginning of the period			59,920				106,336
Cash and cash equivalents and short-term bank deposits at end of the period		$	50,707			$	69,325
Non - cash investing:
Changes in trade payables balances related to purchase of fixed assets			(311	)			709

Caesarstone Ltd. and its subsidiaries
		Three months ended September 30,							Nine months ended September 30,
U.S. dollars in thousands			2026			2025				2026			2025
		(Unaudited)							(Unaudited)
Reconciliation of Gross profit to Adjusted Gross profit:
Gross profit		$	24,485		$	17,635			$	67,465		$	58,672
Share-based compensation expense (a)			17			16				27			37
Amortization of assets related to acquisitions			63			67				190			204
Residual operating expenses (income) related to closed plants after closing			1,305			95				3,868			211
Other non recurring items (b)			-			(152	)			1,099			(456	)
Adjusted Gross profit (Non-GAAP)		$	25,870		$	17,661			$	72,649		$	58,668

(a)	Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.
(b)	Non recurring items related mainly to restructuring.

Caesarstone Ltd. and its subsidiaries
		Three months ended September 30,								Nine months ended September 30,
U.S. dollars in thousands			2026				2025				2026				2025
		(Unaudited)								(Unaudited)
Reconciliation of Net Loss to Adjusted EBITDA:
Net loss		$	(56,060	)		$	(18,087	)		$	(92,729	)		$	(49,823	)
Finance expenses (income), net			(1,249	)			1,767				4,927				5,019
Taxes on income, net			372				294				1,267				1,403
Depreciation and amortization			1,539				3,603				4,915				10,886
Legal settlements and loss contingencies, net (a)			55,483				3,976				64,068				9,378
Share-based compensation expense (b)			187				271				408				959
Restructuring expense (gain), net (c)			(1,834	)			14				(2,815	)			46
Impairment expenses (d)			-				-				5,800				-
Residual operating expenses related to closed plants after closing			1,434				380				4,451				1,172
Other non recurring items (e)			-				(152	)			1,099				(456	)
Adjusted EBITDA (Non-GAAP)		$	(128	)		$	(7,934	)		$	(8,609	)		$	(21,416	)

(a)	Consists primarily of legal settlements expenses and loss contingencies, net, related to product liability claims.
(b)	Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.
(c)	Related to closed plants activities.
(d)	Impairment related to long lived and held for sale assets.
(e)	Non recurring items related mainly to restructuring.

Caesarstone Ltd. and its subsidiaries
		Three months ended September 30,								Nine months ended September 30,
U.S. dollars in thousands (except per share data)			2026				2025				2026				2025
		(Unaudited)								(Unaudited)
Reconciliation of net loss attributable to controlling interest to adjusted net loss attributable to controlling interest:
Net loss attributable to controlling interest		$	(56,060	)		$	(18,097	)		$	(92,729	)		$	(49,531	)
Legal settlements and loss contingencies, net (a)			55,483				3,976				64,068				9,378
Amortization of assets related to acquisitions, net of tax			45				108				135				329
Share-based compensation expense (b)			187				271				408				959
Non cash revaluation of lease liabilities (c)			(1,351	)			(332	)			2,333				2,418
Restructuring expenses (d)			(1,834	)			14				(2,815	)			46
Impairment expenses (e)			-				-				5,800				-
Residual operating expenses related to closed plants after closing			1,434				380				4,451				1,172
Other non recurring items (f)			-				(152	)			1,099				(456	)
Total adjustments			53,964				4,265				75,479				13,846
Less tax on non-tax adjustments (g)			(507	)			(54	)			(1,046	)			(401	)
Total adjustments after tax			54,471				4,319				76,525				14,247
Adjusted net loss attributable to controlling interest (Non-GAAP)		$	(1,589	)		$	(13,778	)		$	(16,204	)		$	(35,284	)
Adjusted loss per share (h)		$	(0.05	)		$	(0.40	)		$	(0.47	)		$	(1.02	)

(a)	Consists primarily of legal settlements expenses and loss contingencies, net, related to product liability claims.
(b)	Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.
(c)	Exchange rate differences deriving from revaluation of lease contracts in accordance with FASB ASC 842.
(d)	Related to closed plants activities.
(e)	Impairment related to long lived and held for sale assets.
(f)	Non recurring items related mainly to restructuring.
(g)	Tax adjustments for the three and nine months ended September 30, 2026 and 2025, based on the effective tax rates.
(h)	In calculating adjusted (Non-GAAP) loss per share, the diluted weighted average number of shares outstanding excludes the effects of share-based compensation expense in accordance with FASB ASC 718.

Caesarstone Ltd. and its subsidiaries
Geographic breakdown of revenues by region
		Three months ended September 30,						Nine months ended September 30,						Three months ended September 30,						Nine months ended September 30,
U.S. dollars in thousands			2026			2025			2026			2025
		(Unaudited)						(Unaudited)			(Unaudited)			YoY % change			YoY % change CCB			YoY % change			YoY % change CCB
USA		$	38,787		$	46,688		$	121,427		$	145,465		-16.9	%		-16.9	%		-16.5	%		-16.5	%
Canada			12,248			12,542			35,276			40,908		-2.3	%		-0.7	%		-13.8	%		-14.6	%
Latin America			230			322			595			805		-28.6	%		-38.7	%		-26.1	%		-35.4	%
America's			51,265			59,552			157,298			187,178		-13.9	%		-13.6	%		-16.0	%		-16.2	%
Australia			22,357			18,480			59,756			48,965		21.0	%		12.2	%		22.0	%		11.2	%
Asia			4,426			4,788			11,542			12,877		-7.6	%		-3.4	%		-10.4	%		-7.0	%
APAC			26,783			23,268			71,298			61,842		15.1	%		9.0	%		15.3	%		7.4	%
EMEA			13,425			13,533			38,834			39,847		-0.8	%		0.8	%		-2.5	%		-6.3	%
Israel			4,796			5,759			14,101			13,926		-16.7	%		-24.9	%		1.3	%		-12.5	%
Total Revenues		$	96,269		$	102,112		$	281,531		$	302,793		-5.7	%		-7.2	%		-7.0	%		-9.9	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261111609249/en/

Investor Relations:
ICR, Inc. - Rodny Nacier
CSTE@icrinc.com
+1 (646) 200-8870

Source: Caesarstone Ltd.

Key Terms

adjusted ebitda financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

tariff-rate quota regulatory

A tariff-rate quota is a trade rule that lets a fixed quantity of a product be imported at a low or zero tax and then charges much higher taxes on any amount above that limit—think of it like a tax-free allowance that becomes costly once you exceed it. Investors care because it affects how much foreign supply can compete in a market, which influences prices, company revenues and profit margins for producers, importers and related industries.

going concern financial

Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.

non-gaap financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.