Caesarstone (NASDAQ: CSTE) lifts margins but faces new U.S. tariffs and legal costs

Rhea-AI Filing Summary

Caesarstone Ltd. reported Q2 2026 revenue of $96.6 million, down from $101.1 million, but significantly stronger profitability metrics. GAAP gross margin expanded to 24.0% from 19.6%, and adjusted gross margin reached 26.5%. Operating loss narrowed to $10.2 million, while Adjusted EBITDA loss improved to just $1.0 million from $6.4 million a year earlier, reflecting cost savings from its restructured global production network and plant closures.

Net loss attributable to controlling interest was $15.6 million, or $0.45 per share, versus $18.6 million, or $0.54 per share, in Q2 2025. Cash, cash equivalents and short-term deposits totaled $51.8 million at June 30, 2026 with no debt to financial institutions, and operating cash use for the first half was $4.9 million.

Approximately 44% of quarterly revenue came from the U.S., where a new four-year tariff-rate quota on quartz surface imports takes effect August 15, 2026, imposing additional 25–50% tariffs depending on volumes. Caesarstone is reassessing the timing of achieving positive Adjusted EBITDA and planning supply-chain, sourcing and pricing actions to mitigate these tariffs. The company also recorded a $51.2 million provision for legal settlements and loss contingencies and held $12.0 million of related insurance receivables as of June 30, 2026.

Positive

• Profitability metrics improved markedly: gross margin rose to 24.0% (26.5% adjusted) from 19.6% (19.7% adjusted), and Adjusted EBITDA loss narrowed to $1.0 million from $6.4 million, indicating substantial benefits from restructuring and cost-savings initiatives.

Negative

• New U.S. tariffs pose a major headwind: a four-year tariff-rate quota will add 25–50% duties on quartz surface imports into a market that contributed about 44% of Q2 2026 revenue, pressuring future profitability.
• Large legal exposure remains: the company recorded a $51.2 million provision for legal settlements and loss contingencies with only $12.0 million of insurance receivables, and warns that adverse developments could materially impact results and cash flows.

Key Figures

Q2 2026 Revenue: $96.6 million Gross Margin: 24.0% Adjusted EBITDA: $1.0 million loss +5 more

8 metrics

Q2 2026 Revenue $96.6 million Second quarter 2026 revenue compared to $101.1 million in the prior-year quarter

Gross Margin 24.0% GAAP gross margin in Q2 2026 versus 19.6% in Q2 2025

Adjusted EBITDA $1.0 million loss Q2 2026 Adjusted EBITDA loss compared to $6.4 million loss in Q2 2025

Net Loss $15.6 million Net loss attributable to controlling interest in the second quarter of 2026

Cash and Deposits $51.8 million Cash, cash equivalents and short-term bank deposits as of June 30, 2026; no debt to financial institutions

Legal Provision $51.2 million Provision for legal settlements and loss contingencies recorded as of June 30, 2026

U.S. Revenue Share 44% Approximate proportion of company revenues generated in the U.S. during Q2 2026

Tariff-Rate Quota Year 1 13.0 million square meters Annual industry quota for quartz surface imports in the first year of new U.S. tariffs

Key Terms

tariff-rate quota, Adjusted EBITDA, non-GAAP financial measures, provision, +2 more

6 terms

tariff-rate quota regulatory

"imposing a four-year tariff-rate quota on imports of quartz surface products"

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.

Adjusted EBITDA financial

"Adjusted EBITDA in the second quarter of 2026... was a loss of $1.0 million"

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.

non-GAAP financial measures financial

"The non-GAAP measures presented by the Company should be considered in addition to"

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.

provision financial

"recorded a provision of $51.2 million, representing its best estimate of probable"

A provision is money a company sets aside now to cover a known or likely future cost, like a pending bill, warranty repair, or legal settlement — think of it as a reserved rainy-day fund on the balance sheet. Investors care because provisions reduce reported profit and cash available today but improve transparency about upcoming risks; changes in their size can signal growing liabilities or shifting management estimates.

right-of-use assets financial

"Operating lease right-of-use assets | | | 91,507"

Right-of-use assets are the rights a company gains to use a physical space or equipment under a lease agreement. They are recorded as assets on the company's balance sheet, reflecting the value of future benefits from the leased item. For investors, these assets provide a clearer picture of a company's obligations and resources related to leasing arrangements, helping to assess its financial health and operational commitments.

Deferred tax assets financial

"Deferred tax assets, net | | | 4,583"

An item on a company’s balance sheet showing tax benefits it can use later to reduce future tax bills — think of it as an IOU from the tax system for past losses or timing differences. It matters to investors because it can boost future cash flow and apparent value if the company expects profits ahead, but those benefits vanish if the company cannot generate taxable income and the asset must be reduced.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Caesarstone (CSTE) perform financially in Q2 2026?

Caesarstone reported Q2 2026 revenue of $96.6 million, down from $101.1 million, with a net loss attributable to controlling interest of $15.6 million. However, gross margin improved to 24.0%, and Adjusted EBITDA loss narrowed sharply to $1.0 million from $6.4 million a year earlier.

What drove margin and EBITDA improvements for Caesarstone (CSTE) in Q2 2026?

Margins improved mainly from cost savings after shifting to a global production partner network and closing the Bar-Lev facility, plus a refund of previously paid U.S. tariffs. These factors lifted gross margin to 24.0% and cut Adjusted EBITDA loss to $1.0 million from $6.4 million.

How might new U.S. tariffs affect Caesarstone (CSTE)?

From August 15, 2026, U.S. imports of quartz surface products face a four-year tariff-rate quota. In year one, about 13.0 million square meters within quota incur an extra 25% tariff, and volumes above that face 50%. With 44% of Q2 revenue from the U.S., Caesarstone is reassessing its timeline to positive Adjusted EBITDA.

What legal contingencies does Caesarstone (CSTE) report?

As of June 30, 2026, Caesarstone recorded a $51.2 million provision for legal settlements and loss contingencies and recognized $12.0 million of related insurance receivables. The company notes that adverse changes in claim outcomes or insurance coverage could materially affect its business, results and cash flows.

What is Caesarstone’s (CSTE) cash and debt position as of June 30, 2026?

Caesarstone held $51.8 million in cash, cash equivalents and short-term bank deposits as of June 30, 2026 and reported no debt to financial institutions. Compared to March 31, 2026, net cash improved slightly from $50.4 million, despite ongoing losses and restructuring activities.

How did Caesarstone’s (CSTE) regional revenues change in Q2 2026?

In Q2 2026, U.S. revenue fell to $42.7 million from $49.6 million, and total Americas revenue declined 14.7%. Australia grew strongly to $20.3 million, up 22.1%. Overall revenue decreased 4.5% year-over-year to $96.6 million amid softer global demand and North American competition.

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

______________________

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of August 2026

Commission File Number: 001-35464

Caesarstone Ltd.

(Translation of registrant’s name into English)

Kibbutz Sdot Yam

MP Menashe

Israel 3780400

 (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒      Form 40-F ☐

EXPLANATORY NOTE

On August 5, 2026, Caesarstone Ltd. (the “Registrant”) issued a press release titled “Caesarstone Reports Second Quarter 2026 Financial Results”, a copy of which is furnished as Exhibit 99.1 herewith. The GAAP financial information included in condensed consolidated balance sheets, condensed consolidated statements of income (loss) and condensed consolidated statements of cash flows contained in the press release attached as Exhibit 99.1 to this Report on Form 6-K is hereby incorporated by reference into the Registrant’s Registration Statements on Form S-8 (Files Nos. 333-180313, 333-210444, 333-251642 and 333-295843). A copy of the Registrant’s updated investor presentation can be accessed at ir.caesarstone.com. The information in the investor presentation is not incorporated by reference into the Registrant’s Registration Statements.

EXHIBIT INDEX

Exhibit	Description
99.1	Press release titled “Caesarstone Reports Second Quarter 2026 Financial Results” dated August 5, 2026.

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CAESARSTONE LTD.
Date: August 5, 2026	By:	/s/ Nahum Trost
		Name:  Nahum Trost
		Title:    Chief Financial Officer

Exhibit 99.1

Caesarstone Reports Second Quarter 2026 Financial Results

- Revenue of $96.6 Million and Gross Margin of 24.0% -

- Recently Announced U.S. Quartz Tariff-Rate Quota on Imports, Effective August 15, 2026 -

- Evaluating the Impact of New U.S. Tariffs on the Timing of Positive Adjusted EBITDA -

MP MENASHE, Israel - August 5, 2026 - Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today reported financial results for its second quarter ended June 30, 2026.

Yos Shiran, Caesarstone’s Chief Executive Officer commented, “Our second quarter performance marks another step forward in our efforts to restore profitability. Gross margin improved both year-over-year and sequentially, and our Adjusted EBITDA loss narrowed significantly, primarily reflecting the growing benefits of our optimized production network and disciplined execution of our restructuring plan. While revenue continues to be impacted by competitive dynamics and soft market conditions, most notably in North America, the structural changes we have implemented have created a leaner, more flexible operating model to improve our offering to customers. Despite recent tariff developments, we remain confident that our operating model positions us well to deliver long term value.”

Nahum Trost, Caesarstone’s Chief Financial Officer added, “I am pleased with the momentum of our financial and operating performance. The improvements in our operating model have created a structural step change in our ability to deliver more favorable results.  Based on these efforts, we entered the quarter on track to achieve our previously stated goal of positive Adjusted EBITDA. Following the new U.S. Tariffs on quartz surface products, we are reassessing the timing of achieving positive Adjusted EBITDA while evaluating the appropriate actions to mitigate the impact of these new tariffs.”

Second Quarter 2026 Results

Revenue in the second quarter of 2026 was $96.6 million compared to $101.1 million in the prior year quarter. On a constant currency basis, second quarter revenue was down approximately 7.7% year-over-year, reflecting continued softness in global demand and competitive pressures, particularly in North America, partially offset by strength in Australia.

Gross margin in the second quarter of 2026 was 24.0% compared to 19.6% in the prior year quarter. Adjusted gross margin in the second quarter was 26.5%, compared to 19.7% 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 second quarter also benefited from a refund received on account of previously paid U.S. IEEPA tariffs.

Operating expenses in the second quarter of 2026 were $33.4 million, or 34.6% of revenue, compared to $32.5 million, or 32.1% of revenue in the prior year quarter. Excluding legal settlements and loss contingencies and impairment and restructuring expenses, operating expenses were 29.6% of revenue compared to 30.1% in the prior year quarter. The year-over-year difference primarily reflects higher legal settlements and loss contingencies.

Operating loss in the second quarter of 2026 was $10.2 million compared to an operating loss of $12.6 million in the prior year quarter. The improvement was primarily driven by higher gross margin, partially offset by higher legal settlements and loss contingencies. 

Adjusted EBITDA in the second 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 $1.0 million compared to a loss of $6.4 million in the prior year quarter. The improvement primarily reflects higher gross margin and the benefits of the Company’s cost savings initiatives.

Finance expenses in the second quarter of 2026 were $5.0 million compared to $5.7 million in the prior year quarter. Finance expenses result mainly from foreign currency exchange rate fluctuations.

Net loss attributable to controlling interest for the second quarter of 2026 was $15.6 million, compared to $18.6 million in the prior year quarter. Net loss per share for the second quarter of 2026 was $0.45 compared to a net loss per share of $0.54 in the prior year quarter. Adjusted diluted net loss per share for the second quarter was $0.10 on 34.6 million shares, compared to an Adjusted diluted net loss per share of $0.33 in the prior year quarter on 34.7 million shares.

Balance Sheet & Liquidity

As of June 30, 2026, the Company’s balance sheet included cash, cash equivalents and short-term bank deposits of $51.8 million and no debt to financial institutions compared to a net cash position of $50.4 million as of March 31, 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 44% of the Company's revenues during the three months ended June 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 is evaluating the expected impact of the measure on its global production and supply network and intends to implement appropriate supply-chain, sourcing and pricing actions to mitigate its effects.

Legal Proceedings Update

The Company is subject to approximately 800 individuals alleging injuries related to exposure to respirable crystalline silica dust including approximately 600 in the U.S. As of June 30, 2026, the Company recorded a provision of $51.2 million, representing its best estimate of probable and reasonably estimable loss. The vast majority of U.S. claims are either at an early stage or considered only reasonably possible losses, and therefore no provision was recorded in connection therewith. As of June 30, 2026 the Company recorded $12.0 million of insurance receivables globally, as coverage disputes are ongoing. The Company will continue to vigorously defend these claims.

During the second quarter of 2026, the Company resolved four claims in California and received a favorable defense jury verdict in a Colorado claim, that assigned no liability to the Company. Additionally, the Company was dismissed of several cases in various states. Prior verdicts remain under appeal.

A negative change in the assessment of the outcome of such claims or of the available insurance coverage would have a material and adverse impact on our business, financial position, results of operations and cash flows. 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 Second 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 10210513. The replay will be available beginning at 12:30 p.m. ET on Wednesday, August 5, 2026 and will last through 11:59 p.m. ET on Wednesday, August 12, 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, 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.

Investor Relations:

ICR, Inc. - Rodny Nacier

CSTE@icrinc.com

+1 (646) 200-8870

Caesarstone Ltd. and its subsidiaries

 Condensed consolidated balance sheets

		As of
U.S. dollars in thousands		June 30, 2026				December 31, 2025
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents and short-term bank deposits		$	51,769			$	59,920
Trade receivables, net			48,682				48,292
Other accounts receivable and prepaid expenses			47,428				50,601
Inventories			76,259				94,275
Total current assets			224,138				253,088
LONG-TERM ASSETS:
Severance pay fund			1,029				1,245
Deferred tax assets, net			4,583				4,010
Long-term deposits and prepaid expenses			5,177				5,179
Operating lease right-of-use assets			91,507				104,774
Property, plant and equipment, net (*)			26,583				30,146
Total long-term assets			128,879				145,354
Total assets		$	353,017			$	398,442
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term bank credit and other loans		$	401			$	2,853
Trade payables			34,965				37,779
Related parties			176				247
Short term legal settlements and loss contingencies			42,490				38,577
Accrued expenses and other liabilities			63,016				58,718
Total current liabilities			141,048				138,174
LONG-TERM LIABILITIES:
Legal settlements and loss contingencies long-term and other liabilities			8,754				8,735
Deferred tax liabilities, net			2,026				2,168
Long-term lease liabilities			95,552				106,377
Accrued severance pay			2,625				2,886
Long-term warranty provision			838				889
Total long-term liabilities			109,795				121,055
EQUITY:
Ordinary shares			371				371
Treasury shares - at cost			(39,430	)			(39,430	)
Additional paid-in capital			167,922				167,700
Capital fund related to non-controlling interest			(5,587	)			(5,587	)
Accumulated other comprehensive income (loss), net			(11,466	)			(10,874	)
Retained earnings			(9,636	)			27,033
Total equity			102,174				139,213
Total liabilities and equity		$	353,017			$	398,442

Caesarstone Ltd. and its subsidiaries

Condensed consolidated statements of income (loss)

 

		Three months ended June 30,								Six months ended June 30,
U.S. dollars in thousands (except per share data)		2026				2025				2026				2025
		(Unaudited)								(Unaudited)
Revenues		$	96,553			$	101,123			$	185,262			$	200,681
Cost of revenues			73,367				81,256				142,282				159,644
Gross profit			23,186				19,867				42,980				41,037
Operating expenses:
Research and development			1,293				1,287				2,669				2,724
Sales and Marketing			17,190				19,715				35,895				40,415
General and administrative			10,105				9,479				20,610				19,839
Restructuring expenses (*)			82				21				(981	)			32
Impairment expenses (**)			-				-				5,800				-
Legal settlements and loss contingencies, net			4,751				1,987				8,585				5,402
Total operating expenses			33,421				32,489				72,578				68,412
Operating loss			(10,235	)			(12,622	)			(29,598	)			(27,375	)
Finance expenses (income), net			5,002				5,715				6,176				3,252
Loss before taxes			(15,237	)			(18,337	)			(35,774	)			(30,627	)
Tax expenses, net			328				411				895				1,109
Net loss		$	(15,565	)		$	(18,748	)		$	(36,669	)		$	(31,736	)
Net loss attributable to non-controlling interest			-				194				-				302
Net loss attributable to controlling interest		$	(15,565	)		$	(18,554	)		$	(36,669	)		$	(31,434	)
Basic net loss per ordinary share		$	(0.45	)		$	(0.54	)		$	(1.06	)		$	(0.91	)
Diluted net loss per ordinary share		$	(0.45	)		$	(0.54	)		$	(1.06	)		$	(0.91	)
Weighted average number of ordinary shares used in computing basic loss per ordinary share			34,584,862				34,559,723				34,580,487				34,562,682
Weighted average number of ordinary shares used in computing diluted loss per ordinary share			34,584,862				34,559,723				34,580,487				34,562,682

(*) 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

		Six months ended June 30,
U.S. dollars in thousands		2026				2025
		(Unaudited)
Cash flows from operating activities:
Net loss		$	(36,669	)		$	(31,736	)
Adjustments required to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			3,376				6,979
Share-based compensation expense			221				688
Accrued severance pay, net			(40	)			458
Changes in deferred tax, net			(528	)			387
Capital gain			(25	)			(2	)
Legal settlemnets and loss contingencies, net			8,585				5,402
Increase in trade receivables			(592	)			(5,778	)
Decrease in other accounts receivable and prepaid expenses			3,751				560
Decrease in inventories			17,680				5
Decrease in trade payables			(4,840	)			(987	)
Increase (decrease) in warranty provision			(37	)			10
Changes in right of use assets			11,194				(3,840	)
Changes in lease liabilities			(9,639	)			7,376
Decrease in accrued expenses and other liabilities including related parties			(2,170	)			(4,521	)
Restructuring expenses and Impairment related to long lived assets			4,819				32
Net cash used in operating activities			(4,914	)			(24,967	)
Cash flows from investing activities:
Purchase of property, plant and equipment			(823	)			(5,321	)
Proceeds from sale of property, plant and equipment			73				167
Decrease (increase) in long term deposits			27				(152	)
Net cash used in investing activities			(723	)			(5,306	)
Cash flows from financing activities:
Changes in short-term bank credits and long-term loans, including related parties			(2,313	)			(1,293	)
Net cash used in financing activities			(2,313	)			(1,293	)
Effect of exchange rate differences on cash and cash equivalents			(201	)			856
Increase (decrease) in cash and cash equivalents and short-term bank deposits			(8,151	)			(30,710	)
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		$	51,769			$	75,626
Non - cash investing:
Changes in trade payables balances related to purchase of fixed assets			(274	)			709

 

Caesarstone Ltd. and its subsidiaries

		Three months ended June 30,								Six months ended June 30,
U.S. dollars in thousands		2026				2025				2026				2025
		(Unaudited)								(Unaudited)
Reconciliation of Gross profit to Adjusted Gross profit:
Gross profit		$	23,186			$	19,867			$	42,980			$	41,037
Share-based compensation expense (a)			17				(4	)			10				21
Amortization of assets related to acquisitions			63				69				127				137
Residual operating expenses (income) related to closed plants after closing			1,216				120				2,563				116
Other non recuring items (b)			1,099				(152	)			1,099				(304	)
Adjusted Gross profit (Non-GAAP)		$	25,581			$	19,900			$	46,779			$	41,007

(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 June 30,								Six months ended June 30,
U.S. dollars in thousands		2026				2025				2026				2025
		(Unaudited)								(Unaudited)
Reconciliation of Net Loss to Adjusted EBITDA:
Net loss		$	(15,565	)		$	(18,748	)		$	(36,669	)		$	(31,736	)
Finance expenses (income), net			5,002				5,715				6,176				3,252
Taxes on income, net			328				411				895				1,109
Depreciation and amortization			1,582				3,707				3,376				7,283
Legal settlements and loss contingencies, net (a)			4,751				1,987				8,585				5,402
Share-based compensation expense (b)			200				282				221				688
Restructuring expense (gain), net  (c)			82				21				(981	)			32
Impairment expenses (d)			-				-				5,800				-
Residual operating expenses related to closed plants after closing			1,526				384				3,017				792
Other non recuring items (e)			1,099				(152	)			1,099				(304	)
Adjusted EBITDA (Non-GAAP)		$	(995	)		$	(6,393	)		$	(8,481	)		$	(13,482	)

(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 June 30,								Six months ended June 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		$	(15,565	)		$	(18,554	)		$	(36,669	)		$	(31,434	)
Legal settlements and loss contingencies, net (a)			4,751				1,987				8,585				5,402
Amortization of assets related to acquisitions, net of tax			45				111				90				221
Share-based compensation expense (b)			200				282				221				688
Non cash revaluation of lease liabilities (c)			4,180				4,347				3,684				2,750
Restructuring expenses (d)			82				21				(981	)			32
Impairmet expenses (e)			-				-				5,800				-
Residual operating expenses related to closed plants after closing			1,526				384				3,017				792
Other non recuring items (f)			1,099				(152	)			1,099				(304	)
Total adjustments			11,883				6,980				21,515				9,581
Less tax on non-tax adjustments (g)			(272	)			(199	)			(538	)			(347	)
Total adjustments after tax			12,155				7,179				22,053				9,928
Adjusted net loss attributable to controlling interest (Non-GAAP)		$	(3,410	)		$	(11,375	)		$	(14,616	)		$	(21,506	)
Adjusted loss per share (h)		$	(0.10	)		$	(0.33	)		$	(0.42	)		$	(0.62	)

(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 diffrences 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 six months ended June 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 June 30,								Six months ended June 30,								Three months ended June 30,								Six months ended June 30,
U.S. dollars in thousands		2026				2025				2026				2025
		(Unaudited)								(Unaudited)				(Unaudited)				YoY % change				YoY % change CCB				YoY % change				YoY % change CCB
USA		$	42,660			$	49,636			$	82,640			$	98,777				-14.1%				-14.1%				-16.3%				-16.3%
Canada			12,056				14,595				23,028				28,366				-17.4%				-17.5%				-18.8%				-20.6%
Latin America			245				191				365				483				28.3%				10.3%				-24.4%				-33.2%
America's			54,961				64,422				106,033				127,626				-14.7%				-14.7%				-16.9%				-17.3%
Australia			20,316				16,642				37,399				30,485				22.1%				10.1%				22.7%				10.6%
Asia			3,788				3,732				7,116				8,089				1.5%				8.1%				-12.0%				-9.7%
APAC			24,104				20,374				44,515				38,574				18.3%				9.7%				15.4%				6.4%
EMEA			12,398				13,162				25,409				26,314				-5.8%				-9.8%				-3.4%				-9.9%
Israel			5,090				3,165				9,305				8,167				60.8%				32.4%				13.9%				-4.3%
Total Revenues		$	96,553			$	101,123			$	185,262			$	200,681				-4.5%				-7.7%				-7.7%				-11.3%

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