Interface (NASDAQ: TILE) Q1 2026 profit jumps on higher sales

Rhea-AI Filing Summary

Interface, Inc. reported stronger results for the quarter ended April 5, 2026. Net sales reached $331.0 million, up 11.3% from $297.4 million, driven by higher volumes (including an extra week), better pricing, and favorable product mix, especially in corporate office projects.

Net income rose to $23.6 million with diluted EPS of $0.40, compared with $13.0 million and $0.22 a year earlier, as gross margin improved to 38.3% and SG&A fell as a percentage of sales. Interest expense declined to $2.7 million after redeeming senior notes and benefiting from lower credit facility rates.

The company ended the quarter with $61.2 million in cash, $196.7 million of debt under its syndicated credit facility, and additional borrowing capacity of $226.3 million. Operating cash flow was $13.5 million, and Interface repurchased about 461,000 shares for $12.0 million. Backlog increased to approximately $256.6 million, and management expects further revenue growth in 2026 while facing higher raw material, energy, and luxury vinyl tile sourcing costs.

Positive

• Strong Q1 performance with net sales rising to $331.0 million from $297.4 million and net income increasing to $23.6 million from $13.0 million, supported by higher margins and lower interest expense.

Negative

• None.

Insights

Equity analyst

Quarter shows solid growth, margin expansion, and disciplined balance sheet use.

Interface delivered double-digit sales growth to $331.0M and lifted gross margin to 38.3% from 37.3%. Profitability improved meaningfully, with net income at $23.6M and diluted EPS of $0.40, helped by pricing, mix, and lower EAAA manufacturing costs.

Interest expense fell to $2.7M as higher-cost senior notes were redeemed and credit facility rates eased, while term and revolver borrowings totaled $196.7M. Cash of $61.2M, available revolver capacity of $226.3M, and operating cash flow of $13.5M support ongoing investment and capital returns.

The company invested $10.3M in capital expenditures, mainly automation and robotics, and repurchased roughly 461,000 shares for $12.0M. Management highlights macro headwinds such as tariffs, energy and raw material inflation, and commercial office softness, but also notes a larger $256.6M backlog and expects revenue growth in Q2 2026 and the remainder of fiscal 2026.

Key Figures

Net sales: $331.0M Net income: $23.6M Diluted EPS: $0.40 +5 more

8 metrics

Net sales $331.0M Three months ended April 5, 2026; up 11.3% from $297.4M

Net income $23.6M Three months ended April 5, 2026; up from $13.0M prior-year quarter

Diluted EPS $0.40 Three months ended April 5, 2026; previously $0.22

Operating cash flow $13.5M Cash provided by operating activities in Q1 2026

Debt under credit facility $196.7M Term and revolving borrowings outstanding as of April 5, 2026

Cash balance $61.2M Cash and cash equivalents as of April 5, 2026

Share repurchases $12.0M 460,882 shares at $26.04 average in Q1 2026

Backlog $256.6M Unshipped orders as of April 27, 2026

Key Terms

Adjusted segment operating income, Syndicated Credit Facility, global minimum tax, CbCR Safe Harbor, +1 more

5 terms

Adjusted segment operating income financial

"the CODM, our chief executive officer, evaluates performance at the AMS and EAAA operating segment levels and makes operating and resource allocation decisions based on adjusted segment operating income"

Syndicated Credit Facility financial

"The Company’s Syndicated Credit Facility (the “Facility”) provides to the Company U.S. denominated and multicurrency term loans"

A syndicated credit facility is a large loan provided to a company by multiple lenders working together, rather than just one. It’s like a group of friends pooling their money to lend to someone, making it easier and safer for everyone involved. This arrangement helps companies access bigger amounts of money quickly when they need it.

global minimum tax financial

"Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%"

CbCR Safe Harbor financial

"we expect to meet the Transitional Country-by-Country (“CbCR”) Safe Harbor rules for most if not all jurisdictions"

fair value hierarchy financial

"Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure estimated fair value"

Earnings Snapshot

Net sales: $331.0M · Guidance included

Q1 2026

Net sales $331.0M +11.3% vs prior-year quarter

Net income $23.6M up from $13.0M prior-year quarter

Diluted EPS $0.40 up from $0.22 prior-year quarter

Gross margin 38.3% up from 37.3% prior-year quarter

Guidance

Management anticipates revenue growth in Q2 2026 and the remainder of fiscal 2026, while facing higher raw material, energy, and luxury vinyl tile procurement costs.

10-Q Quarterly Reports: What Changes Quarter to Quarter →

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UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________

Form 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended April 5, 2026

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-33994

INTERFACE INC

(Exact name of registrant as specified in its charter)

Georgia						58-1451243
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

1280 West Peachtree Street			Atlanta			Georgia			30309
(Address of principal executive offices)									(zip code)

Registrant’s telephone number, including area code:           (770) 437-6800          

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class			Trading Symbol(s)			Name of Each Exchange on Which Registered
Common Stock, $0.10 Par Value Per Share			TILE			Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ☐ Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes ☐   No þ

Number of shares outstanding of each of the registrant’s classes of common stock, as of May 7, 2026:

Class			Number of Shares
Common Stock, $0.10 par value per share			58,056,192

TABLE OF CONTENTS

									Page
PART I.			FINANCIAL INFORMATION
			Item 1.			Financial Statements (Unaudited)			3
						Consolidated Condensed Balance Sheets – April 5, 2026 and December 28, 2025			3
						Consolidated Condensed Statements of Operations – Three Months Ended April 5, 2026 and March 30, 2025			4
						Consolidated Condensed Statements of Comprehensive Income – Three Months Ended April 5, 2026 and March 30, 2025			5
						Consolidated Condensed Statements of Cash Flows – Three Months Ended April 5, 2026 and March 30, 2025			6
						Notes to Consolidated Condensed Financial Statements			7
			Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			26
			Item 3.			Quantitative and Qualitative Disclosures about Market Risk			33
			Item 4.			Controls and Procedures			34
PART II.			OTHER INFORMATION
			Item 1.			Legal Proceedings			35
			Item 1A.			Risk Factors			35
			Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			36
			Item 3.			Defaults Upon Senior Securities			37
			Item 4.			Mine Safety Disclosures			37
			Item 5.			Other Information			37
			Item 6.			Exhibits			38
SIGNATURE									39

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands, except par values)

			APRIL 5, 2026						DECEMBER 28, 2025
			(UNAUDITED)
ASSETS
Current assets
Cash and cash equivalents			$	61,231					$	71,323
Accounts receivable, net			163,303						174,457
Inventories, net			294,193						275,014
Prepaid expenses and other current assets			43,532						34,048
Total current assets			562,259						554,842
Property, plant and equipment, net			311,225						309,449
Operating lease right-of-use assets			73,395						78,191
Deferred tax assets			24,923						25,272
Goodwill and intangible assets, net			159,672						163,012
Other assets			74,314						75,756
Total assets			$	1,205,788					$	1,206,522
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable			$	88,123					$	64,768
Accrued expenses			119,678						147,770
Current portion of operating lease liabilities			14,698						15,748
Current portion of long-term debt			8,789						8,778
Total current liabilities			231,288						237,064
Long-term debt			187,698						172,801
Operating lease liabilities			63,238						67,205
Deferred income taxes			23,199						23,365
Other long-term liabilities			65,780						65,413
Total liabilities			571,203						565,848
Commitments and contingencies (Note 14)
Shareholders’ equity
Preferred stock, par value $1.00 per share; 5,000 shares authorized; none issued or outstanding at April 5, 2026 and December 28, 2025			—						—
Common stock, par value $0.10 per share; 120,000 shares authorized; 58,055 and 57,891 shares issued and outstanding at April 5, 2026 and December 28, 2025, respectively			5,805						5,789
Additional paid-in capital			228,032						248,910
Retained earnings			539,709						517,980
Accumulated other comprehensive loss – foreign currency translation			(101,035)						(92,691)
Accumulated other comprehensive loss – pension liability			(37,926)						(39,314)
Total shareholders’ equity			634,585						640,674
Total liabilities and shareholders’ equity			$	1,205,788					$	1,206,522

See accompanying notes to consolidated condensed financial statements.

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INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except per share data)

			THREE MONTHS ENDED
			APRIL 5, 2026						MARCH 30, 2025
Net sales			$	331,037					$	297,413
Cost of sales			204,314						186,450
Gross profit			126,723						110,963
Selling, general and administrative expenses			94,393						87,736
Operating income			32,330						23,227
Interest expense			2,665						4,415
Other expense, net			774						1,703
Income before income tax expense			28,891						17,109
Income tax expense			5,280						4,107
Net income			$	23,611					$	13,002
Earnings per share – basic			$	0.41					$	0.22
Earnings per share – diluted			$	0.40					$	0.22
Common shares outstanding – basic			58,098						58,434
Common shares outstanding – diluted			59,010						59,173

See accompanying notes to consolidated condensed financial statements.

4

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INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

(in thousands)

			THREE MONTHS ENDED
			APRIL 5, 2026						MARCH 30, 2025
Net income			$	23,611					$	13,002
Other comprehensive (loss) income, after tax:
Foreign currency translation adjustment			(8,344)						15,834
Pension liability adjustment			1,388						(695)
Other comprehensive (loss) income			(6,956)						15,139
Comprehensive income			$	16,655					$	28,141

See accompanying notes to consolidated condensed financial statements.

5

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INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

			THREE MONTHS ENDED
			APRIL 5, 2026						MARCH 30, 2025
OPERATING ACTIVITIES:
Net income			$	23,611					$	13,002
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization			9,876						9,401
Share-based compensation expense			5,033						4,145
Deferred income taxes			677						(837)
Amortization of acquired intangible assets			—						1,255
Other			461						3,070
Working capital changes:
Accounts receivable			10,465						10,675
Inventories			(21,185)						(16,339)
Prepaid expenses and other current assets			(9,737)						(3,438)
Accounts payable and accrued expenses			(5,663)						(9,195)
Cash provided by operating activities			13,538						11,739
INVESTING ACTIVITIES:
Capital expenditures			(10,327)						(7,467)
Cash used in investing activities			(10,327)						(7,467)
FINANCING ACTIVITIES:
Borrowings of long-term debt			41,752						—
Repayments of long-term debt			(27,076)						(122)
Repurchases of common stock			(12,000)						—
Tax withholding payments for share-based compensation			(13,937)						(7,730)
Dividends paid			(138)						(54)
Finance lease payments			(983)						(762)
Cash used in financing activities			(12,382)						(8,668)
Net cash used in operating, investing and financing activities			(9,171)						(4,396)
Effect of exchange rate changes on cash			(921)						2,927
CASH AND CASH EQUIVALENTS:
Net decrease			(10,092)						(1,469)
Balance, beginning of period			71,323						99,226
Balance, end of period			$	61,231					$	97,757

See accompanying notes to consolidated condensed financial statements.

6

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INTERFACE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

References in this Quarterly Report on Form 10-Q to “Interface,” “the Company,” “we,” “our,” “ours” and “us” refer to Interface, Inc. and its subsidiaries or any of them, unless the context requires otherwise.

As contemplated by the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended December 28, 2025, as filed with the Commission.

The financial information included in this report has been prepared by the Company. In the opinion of management, the financial information included in this report contains all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature unless otherwise disclosed. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The December 28, 2025, consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (“GAAP”).

The three-month period ended April 5, 2026 includes 14 weeks, and the three-month period ended March 30, 2025 includes 13 weeks.

Risks and Uncertainties

Ongoing global economic challenges including but not limited to inflation, government-imposed tariffs, supply chain disruptions, disruptions in global energy markets, the Russia-Ukraine war and conflicts in the Middle East, and slow market conditions in certain parts of the globe could cause economic uncertainty and volatility. The Company considered these impacts and subsequent general uncertainties and volatility in the global economy on the assumptions and estimates used herein. These uncertainties could result in a future material adverse effect to the amounts reported within the Company’s consolidated condensed financial statements if actual results differ from these estimates.

Recently Issued Accounting Pronouncements – Not Yet Adopted

In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-06 - “Intangibles - Goodwill and Other Internal Use Software (Topic 350-40)”. This ASU amends the accounting for internal-use software costs by removing reference to prescriptive and sequential software development stages used to evaluate capitalizable costs. The ASU requires entities to consider whether significant uncertainties associated with development activities have been resolved prior to capitalization of software costs and aligns disclosure requirements with Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment”. The new guidance in ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods, and may be applied prospectively, retrospectively, or using a modified retrospective approach. Early adoption is permitted. The Company is currently evaluating the impact of this ASU to its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, “Income Statement Reporting - Comprehensive Income - Expense Disaggregation (Topic 220-40)”. This ASU requires public entities to provide additional footnote disclosures to disaggregate the cost and expense line items presented in the income statement into specific categories including (a) purchases of inventory; (b) employee compensation; (c) depreciation; and (d) intangible asset amortization. The ASU also requires qualitative disclosure of other relevant expense categories not separately disclosed, the total amount of selling expenses, and the definition of selling expenses in annual reporting periods. The new guidance in ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU to its consolidated financial statements.

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NOTE 2 – REVENUE RECOGNITION

The Company generates revenue from sales of modular carpet, resilient flooring, rubber flooring, and other flooring-related material, and from the installation of carpet and other flooring-related material. A summary of these revenue streams, as a percentage of net sales, for the three months ended April 5, 2026 and March 30, 2025 is as follows:

			Three Months Ended
			April 5, 2026						March 30, 2025
Revenue from the sale of flooring material			98%						98%
Revenue from installation of flooring material			2%						2%

Disaggregation of Revenue

For the three months ended April 5, 2026 and March 30, 2025, revenue from the Company’s customers is broken down by geography as follows:

			Three Months Ended
Geography			April 5, 2026						March 30, 2025
Americas			59%						60%
Europe			31%						30%
Asia-Pacific			10%						10%

Revenue from the Company’s customers in the Americas corresponds to the AMS reportable segment, and the EAAA reportable segment includes revenue from the Europe and Asia-Pacific geographies. See Note 10 entitled “Segment Information” for additional information.

For the three months ended April 5, 2026 and March 30, 2025, revenue by material market segment as a percentage of consolidated totals is as follows:

			Three Months Ended
Market Segment			April 5, 2026						March 30, 2025
Corporate Office			47%						45%
Education			17%						18%
Healthcare			10%						10%
Other			26%						27%

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NOTE 3 – INVENTORIES

Inventories are summarized as follows:

			April 5, 2026						December 28, 2025
			(in thousands)
Finished goods			$	218,259					$	205,115
Work-in-process			20,869						17,418
Raw materials			55,065						52,481
Inventories, net			$	294,193					$	275,014

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NOTE 4 – EARNINGS PER SHARE

The Company computes basic earnings per share (“EPS”) by dividing net income by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed below. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings.

The Company includes all unvested stock awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding for basic EPS as these awards are considered participating securities. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock and are considered participating securities. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS. As of April 5, 2026, there were no unvested restricted stock awards. Any unvested share-based awards considered non-participating securities (restricted share units and performance shares) are included in diluted EPS calculations when the inclusion of these shares would be dilutive. The following table shows the computation of basic and diluted EPS:

			Three Months Ended
			April 5, 2026						March 30, 2025
			(in thousands, except per share data)
Numerator:
Net income(1)			$	23,611					$	13,002
Denominator:
Weighted average shares outstanding			58,098						58,325
Participating securities			—						109
Shares for basic EPS			58,098						58,434
Dilutive effect of non-participating securities			912						739
Shares for diluted EPS			59,010						59,173
Basic EPS			$	0.41					$	0.22
Diluted EPS			$	0.40					$	0.22

(1) Includes income attributable to participating securities, which was not material for the three months ended March 30, 2025.

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NOTE 5 – LONG-TERM DEBT

Long-term debt consisted of the following:

			April 5, 2026												December 28, 2025
			Outstanding Principal						Interest Rate(1)						Outstanding Principal						Interest Rate(1)
			(in thousands)												(in thousands)
Syndicated Credit Facility(2):
Revolving loan borrowings			$	23,103					4.97		%				$	6,158					6.07		%
Term loan borrowings			173,573						4.93		%				175,621						5.09		%
Total borrowings under Syndicated Credit Facility			196,676						4.94		%				181,779						5.12		%
Total debt			196,676												181,779
Less: Unamortized debt issuance costs			(189)												(200)
Total debt, net			196,487												181,579
Less: Current portion of long-term debt			(8,789)												(8,778)
Total long-term debt, net			$	187,698											$	172,801

(1) Represents the weighted average rate of interest for borrowings under the Syndicated Credit Facility, without the effect of unamortized debt issuance costs.

(2) The Syndicated Credit Facility also includes a multicurrency revolving loan facility up to $250 million.

Syndicated Credit Facility

The Company’s Syndicated Credit Facility (the “Facility”) provides to the Company U.S. denominated and multicurrency term loans and provides to the Company and certain of its subsidiaries a multicurrency revolving loan facility. Each of the Company’s material domestic subsidiaries guarantee the obligations of the Company under its Facility. The Facility matures December 3, 2030. At April 5, 2026, the Company had available borrowing capacity of $226.3 million under the revolving loan facility.

Interest on base rate loans is charged at varying rates computed by applying a margin depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. Interest on secured overnight financing rate based (“SOFR”) and alternative currency loans is charged at varying rates computed by applying a margin over the applicable SOFR rate or alternative currency rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. In addition, the Company pays a commitment fee per annum (depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter) on the unused portion of the Facility.

Fees for commercial letters of credit are computed as a percentage of the amount available to be drawn under such letters of credit. Fees for standby letters of credit are charged at varying rates computed by applying a margin of the amount available to be drawn under such standby letters of credit, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter.

Under the Facility, the Company is required to make quarterly amortization payments of the term loan borrowings, which are due on the last day of the calendar quarter.

The Company is in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future.

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NOTE 6 – SHAREHOLDERS’ EQUITY

The following tables depict the activity in the accounts which make up shareholders’ equity for the three months ended April 5, 2026 and March 30, 2025:

			SHARES						COMMON STOCK						ADDITIONAL PAID-IN CAPITAL						RETAINED EARNINGS						PENSION LIABILITY						FOREIGN CURRENCY TRANSLATION ADJUSTMENT												TOTAL
			(in thousands, except per share data)
Balance, at December 28, 2025			57,891						$	5,789					$	248,910					$	517,980					$	(39,314)					$	(92,691)											$	640,674
Net income			—						—						—						23,611						—						—												23,611
Issuances of stock related to restricted share units and performance shares			1,065						106						(106)						—						—						—												—
Cash dividends declared, $0.03 per common share			—						—						—						(1,882)						—						—												(1,882)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings			(440)						(44)						(8,818)						—						—						—												(8,862)
Share repurchases			(461)						(46)						(11,954)																														(12,000)
Pension liability adjustment			—						—						—						—						1,388						—												1,388
Foreign currency translation adjustment			—						—						—						—						—						(8,344)												(8,344)
Balance, at April 5, 2026			58,055						$	5,805					$	228,032					$	539,709					$	(37,926)					$	(101,035)											$	634,585

			SHARES						COMMON STOCK						ADDITIONAL PAID-IN CAPITAL						RETAINED EARNINGS						PENSION LIABILITY						FOREIGN CURRENCY TRANSLATION ADJUSTMENT									TOTAL
			(in thousands, except per share data)
Balance, at December 29, 2024			58,304						$	5,830					$	261,028					$	405,441					$	(39,834)					$	(143,317)								$	489,148
Net income			—						—						—						13,002						—						—									13,002
Issuances of stock related to restricted share units and performance shares			658						66						(66)						—						—						—									—
Cash dividends declared, $0.01 per common share			—						—						—						(641)						—						—									(641)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings			(352)						(35)						(3,546)						—						—						—									(3,581)
Pension liability adjustment			—						—						—						—						(695)						—									(695)
Foreign currency translation adjustment			—						—						—						—						—						15,834									15,834
Balance, at March 30, 2025			58,610						$	5,861					$	257,416					$	417,802					$	(40,529)					$	(127,483)								$	513,067

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Repurchase of Common Stock

In May 2022, the Company adopted a share repurchase program in which the Company is authorized to repurchase up to $100 million of its outstanding shares of common stock. The program has no specific expiration date. During the three months ended April 5, 2026, the Company repurchased and retired 460,882 shares of common stock at a weighted average price of $26.04 per share pursuant to this program.

Stock Incentive Plan

The Company has share-based employee compensation plans, which are described more fully in Note 13 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 28, 2025.

Restricted Share Unit Awards

Compensation expense related to the restricted share units was $2.1 million and $1.8 million for the three months ended April 5, 2026 and March 30, 2025, respectively. The Company has reduced its expense for any restricted share units forfeited during the period.

The following table summarizes restricted share units outstanding as of April 5, 2026, as well as activity during the three months then ended:

			Restricted Share Units						Weighted Average Grant Date Fair Value
Outstanding at December 28, 2025			797,400						$	15.88
Granted			216,700						31.51
Vested			(429,500)						13.10
Forfeited or canceled			(11,300)						20.20
Outstanding at April 5, 2026			573,300						$	23.79

As of April 5, 2026, the unrecognized total compensation cost related to unvested restricted share units was $11.4 million. That cost is expected to be recognized by the first quarter of 2029.

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Performance Share Awards

The following table summarizes the performance shares outstanding as of April 5, 2026, as well as the activity during the three months then ended:

			Performance Shares						Weighted Average Grant Date Fair Value
Outstanding at December 28, 2025			1,070,300						$	14.04
Granted			397,100						21.50
Vested			(635,500)						10.79
Forfeited or canceled			(14,500)						19.05
Outstanding at April 5, 2026			817,400						$	20.10

Compensation expense related to the performance shares was $2.9 million and $2.0 million for the three months ended April 5, 2026 and March 30, 2025, respectively. The Company has reduced its expense for any performance shares forfeited during the period. Unrecognized compensation expense related to these performance shares was approximately $13.1 million as of April 5, 2026. The amount and timing of future compensation expense will depend on the performance of the Company. The compensation expense related to these outstanding performance shares is expected to be recognized by the first quarter of 2029.

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NOTE 7 – LEASES

The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of April 5, 2026 and December 28, 2025:

			April 5, 2026												December 28, 2025
Balance Sheet Location			Operating Leases						Finance Leases						Operating Leases						Finance Leases
			(in thousands)
Operating lease right-of-use assets			$	73,395											$	78,191
Current portion of operating lease liabilities			$	14,698											$	15,748
Operating lease liabilities			63,238												67,205
Total operating lease liabilities			$	77,936											$	82,953
Property, plant and equipment, net									$	10,522											$	9,574
Accrued expenses									$	3,305											$	3,155
Other long-term liabilities									7,611												6,817
Total finance lease liabilities									$	10,916											$	9,972

As of April 5, 2026, there were no significant leases that had not commenced.

Lease Costs

			Three Months Ended
			April 5, 2026						March 30, 2025
			(in thousands)
Finance lease cost:
Amortization of right-of-use assets			$	1,019					$	848
Interest on lease liabilities			173						137
Operating lease cost			5,509						4,993
Short-term lease cost			156						171
Variable lease cost			690						773
Total lease cost			$	7,547					$	6,922

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Other Supplemental Information

			Three Months Ended
			April 5, 2026						March 30, 2025
			(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases			$	172					$	131
Operating cash flows for operating leases			6,277						4,437
Financing cash flows for finance leases			983						762
Right-of-use assets obtained in exchange for new finance lease liabilities			2,071						548
Right-of-use assets obtained in exchange for new operating lease liabilities			795						2,929

Lease Term and Discount Rate

The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of April 5, 2026 and December 28, 2025:

			April 5, 2026						December 28, 2025
Weighted-average remaining lease term – finance leases (in years)			4.15						4.07
Weighted-average remaining lease term – operating leases (in years)			6.90						7.05
Weighted-average discount rate – finance leases			6.09		%				6.52		%
Weighted-average discount rate – operating leases			6.34		%				6.33		%

Maturity Analysis

A maturity analysis of lease payments under non-cancellable leases is presented as follows:

Fiscal Year			Operating Leases						Finance Leases
			(in thousands)
2026 (excluding the three months ended April 5, 2026)			$	14,069					$	2,902
2027			17,304						3,413
2028			13,559						2,456
2029			11,431						1,498
2030			8,708						936
Thereafter			32,040						1,139
Total future minimum lease payments (undiscounted)			97,111						12,344
Less: Present value discount			(19,175)						(1,428)
Total lease liabilities			$	77,936					$	10,916

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NOTE 8 – EMPLOYEE BENEFIT PLANS

The Company has defined benefit and multi-employer pension plans, which are described more fully in Note 18 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 28, 2025.

During the three-month periods ended April 5, 2026 and March 30, 2025, the Company recorded multi-employer pension expense related to multi-employer contributions of $0.8 million and $0.7 million, respectively.

The following tables provide the components of net periodic benefit cost for the three months ended April 5, 2026 and March 30, 2025:

			Three Months Ended
Defined Benefit Retirement Plans (Europe)			April 5, 2026						March 30, 2025
			(in thousands)
Interest cost			$	1,857					$	1,813
Expected return on plan assets			(1,778)						(1,938)
Amortization of prior service cost			47						44
Amortization of net actuarial losses			410						375
Net periodic benefit cost			$	536					$	294

			Three Months Ended
Salary Continuation Plan			April 5, 2026						March 30, 2025
			(in thousands)
Interest cost			$	256					$	275
Amortization of net actuarial losses			63						47
Net periodic benefit cost			$	319					$	322

			Three Months Ended
nora Defined Benefit Plan			April 5, 2026						March 30, 2025
			(in thousands)
Service cost			$	95					$	103
Interest cost			311						253
Amortization of net actuarial gains			(190)						(82)
Net periodic benefit cost			$	216					$	274

The service cost component of net periodic benefit costs is presented within operating income in the consolidated condensed statements of operations, while all other components of net periodic benefit costs are presented within other expense, net, in the consolidated condensed statements of operations.

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NOTE 9 – GOODWILL AND OTHER INTANGIBLE ASSETS

The ending balance and the change in the carrying amount of goodwill for the three months ended April 5, 2026 is as follows:

			Goodwill(1)
			(in thousands)
Balance, at December 28, 2025			$	112,127
Foreign currency translation(2)			(2,301)
Balance, at April 5, 2026			$	109,826

(1) The goodwill balance is allocated entirely to the AMS reportable segment.

(2) A portion of the goodwill balance is comprised of goodwill denominated in foreign currency attributable to the nora acquisition.

The net carrying value of intangible assets other than goodwill was $49.8 million and $50.9 million at April 5, 2026 and December 28, 2025, respectively.

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NOTE 10 – SEGMENT INFORMATION

The Company determines that an operating segment exists if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has operating results that are regularly reviewed by the chief operating decision maker (“CODM”), and (iii) has discrete financial information. Additionally, accounting standards require the utilization of a “management approach” to report the financial results of operating segments, which is based on information used by the CODM to assess performance and make operating and resource allocation decisions. The Company determined that it has two operating segments organized by geographical area – namely (a) Americas (“AMS”) and (b) Europe, Africa, Asia and Australia (collectively “EAAA”). The AMS operating segment includes the United States, Canada and Latin America geographic areas.

Pursuant to the management approach discussed above, the Company’s CODM, our chief executive officer, evaluates performance at the AMS and EAAA operating segment levels and makes operating and resource allocation decisions based on adjusted segment operating income (“AOI”). The CODM uses AOI to evaluate segment operating results compared to expectations. AOI is also used by the CODM to develop variable compensation targets and make capital spend decisions. AOI excludes: nora purchase accounting amortization and restructuring, asset impairment, severance, and other, net. Intersegment revenues for both the three months ended April 5, 2026 and March 30, 2025, were $28.0 million, respectively. Intersegment revenues are eliminated from net sales presented below since these amounts are not included in the information provided to the CODM.

The Company has determined that it has two reportable segments – AMS and EAAA, as each operating segment meets the quantitative thresholds defined in the accounting guidance.

The following table outlines information by reportable segment including net sales, significant segment expenses, and AOI. The table also includes a reconciliation to income before taxes for the three months ended April 5, 2026 and March 30, 2025.

						Three Months Ended
						April 5, 2026												March 30, 2025
						AMS			EAAA			TOTAL						AMS			EAAA			TOTAL
						(in thousands)
Net sales						$	195,671		$	135,366		$	331,037					$	179,937		$	117,476		$	297,413
Less: significant segment expenses (1)
Adjusted cost of sales (2)						117,368			86,946									108,527			76,668
Adjusted selling, general, & administrative expenses(3)						54,407			39,593									51,547			35,217
Segment AOI						23,896			8,827			32,723						19,863			5,591			25,454
Reconciliation of AOI to income before taxes
Restructuring, severance, asset impairment and other, net												393												973
Purchase accounting amortization												—												1,255
Interest expense												2,665												4,415
Other expense, net												774												1,703
Income before taxes												$	28,891											$	17,109

(1) Significant segment expense categories and amounts align with segment level information that is regularly provided to the CODM, included in the measure of segment profit, and considered to be significant. Amounts include allocation of corporate overhead and global support costs. Intersegment expenses are excluded.

(2) Adjusted cost of sales excludes purchase accounting amortization.

(3) Adjusted selling, general, and administrative expenses exclude restructuring, asset impairment, severance, and other, net.

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Segment depreciation and amortization for the three months ended April 5, 2026 and March 30, 2025 is presented as follows:

			Three Months Ended
			April 5, 2026						March 30, 2025
			(in thousands)
Depreciation and amortization
AMS			$	4,804					$	4,587
EAAA			5,072						4,814
Total depreciation and amortization			$	9,876					$	9,401

A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:

			April 5, 2026						December 28, 2025
			(in thousands)
Assets
AMS			$	570,229					$	660,189
EAAA			616,948						619,663
Total segment assets			1,187,177						1,279,852
Corporate assets			110,094						98,853
Eliminations			(91,483)						(172,183)
Total reported assets			$	1,205,788					$	1,206,522

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NOTE 11 – SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information for the three months ended April 5, 2026 and March 30, 2025 is presented in the following table:

			Three Months Ended
			April 5, 2026						March 30, 2025
			(in thousands)
Cash paid for interest			$	3,390					$	169

See Note 7 entitled “Leases” for additional supplemental disclosures related to finance and operating leases.

Non-Cash Financing Activities

On February 24, 2026, the Company declared cash dividends on its common stock of $1.7 million, which were paid during the second quarter of 2026 to shareholders of record as of March 27, 2026. At April 5, 2026, the dividends were recorded within accrued expenses in the consolidated condensed balance sheet.

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NOTE 12 – INCOME TAXES

The Company determines its provision for income taxes for interim periods using an estimate of its annual effective tax rate (“AETR”) and records any changes affecting the estimated AETR in the interim period in which the change occurs, including discrete tax items.

During the three months ended April 5, 2026, the Company recorded a total income tax provision of $5.3 million on pre-tax income of $28.9 million resulting in an effective tax rate of 18.3%, as compared to a total income tax provision of $4.1 million on pre-tax income of $17.1 million resulting in an effective tax rate of 24.0% during the three months ended March 30, 2025. The decrease in the effective tax rate for the three months ended April 5, 2026, as compared to the three months ended March 30, 2025, was primarily due to higher excess tax benefits related to share-based compensation.

On December 20, 2021, the Organization for Economic Co-operation and Development (“OECD”) published Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar Two global minimum tax. Many non-U.S. tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 (including the European Union Member States) with the adoption of additional components in later years or announced their plans to enact legislation in future years. For fiscal year 2026, we expect to meet the Transitional Country-by-Country (“CbCR”) Safe Harbor rules for most if not all jurisdictions and do not expect these provisions to have a material impact on the Company’s financial statements. We will continue to closely monitor ongoing developments and evaluate any potential impact on future periods.

In 2026, the OECD issued a Side-by-Side package (“SbS”) that simplifies Pillar Two, creates new safe harbors, fully exempts U.S. parent groups from two of the three top-up taxes, and extends the CbCR Safe Harbor through fiscal year 2027. In certain jurisdictions, local legislative action is needed to effectuate the SbS agreement and cannot be considered in our accounting estimate until enactment.

In the first three months of 2026, the Company increased its liability for unrecognized tax benefits by $0.2 million. As of April 5, 2026, the Company had accrued approximately $5.1 million for unrecognized tax benefits. 

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NOTE 13 – ITEMS RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE LOSS

Amounts reclassified out of accumulated other comprehensive loss (“AOCL”), before tax, to the consolidated condensed statements of operations during the three months ended April 5, 2026 and March 30, 2025 are reflected in the table below:

									Three Months Ended
			Statement of Operations Location						April 5, 2026						March 30, 2025
									(in thousands)
Amortization of benefit plan net actuarial losses and prior service cost			Other expense, net						$	(330)					$	(384)
Total loss reclassified from AOCL									$	(330)					$	(384)

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NOTE 14 – COMMITMENTS AND CONTINGENCIES

From time to time, we are a party to legal proceedings, whether arising in the ordinary course of business or otherwise. For additional information see disclosures set forth in Note 17 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 28, 2025. There have been no material changes since December 28, 2025.

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NOTE 15 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure estimated fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under applicable accounting standards are described below:

Level 1    Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.  

Level 2    Inputs to the valuation methodology include:

•quoted prices for similar assets in active markets;

•quoted prices for identical or similar assets in inactive markets;

•inputs other than quoted prices that are observable for the asset; and

•inputs that are derived principally or corroborated by observable data by correlation or other.

Level 3    Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The following table presents the carrying values and estimated fair values, including the level within the fair value hierarchy, of certain financial instruments:

			April 5, 2026																		December 28, 2025
			Carrying Value						Fair Value (Level 1)						Fair Value (Level 2)						Carrying Value						Fair Value (Level 1)						Fair Value (Level 2)
			(in thousands)
Assets:
Company-owned life insurance			$	23,091					$	—					$	23,091					$	23,048					$	—					$	23,048
Deferred compensation investments			32,193						8,159						24,034						33,728						8,941						24,787
Liabilities(1):
Borrowings under Syndicated Credit Facility(2)			196,676						—						196,676						181,779						—						181,779

(1) Carrying values are presented gross, excluding the impact of unamortized debt issuance costs and including amounts presented as current liabilities on the consolidated condensed balance sheets.

(2) The carrying value of borrowings under the Facility approximates fair value as the Facility bears variable interest rates that are similar to existing market rates. The fair value of borrowings under the Facility is estimated using observable market rates.

The fair value of Company-owned life insurance is measured on a readily determinable cash surrender value on a recurring basis.

Assets associated with the Company’s nonqualified savings plans are held in a rabbi trust and consist of investments in mutual funds and insurance contracts. The fair value of the mutual funds is derived from quoted prices in active markets. The fair value of the insurance contracts is based on observable inputs related to the performance measurement funds that shadow the deferral investment allocations made by participants in the nonqualified savings plans.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our discussions below in this Item 2 are based upon the more detailed discussions about our business, operations and financial condition included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025, under Part II, Item 7 of that Form 10-K. Our discussions here focus on our results during the quarter ended April 5, 2026, or as of, April 5, 2026, and the comparable periods of 2025, and to the extent applicable, any material changes from the information discussed in that Form 10-K or other important intervening developments or information since that time. These discussions should be read in conjunction with that Form 10-K for more detailed and background information. The three-month period ended April 5, 2026 includes 14 weeks, and the three-month period ended March 30, 2025 includes 13 weeks.

Forward-Looking Statements

This report contains statements which may constitute “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include risks and uncertainties associated with the economic conditions in the commercial interiors industry as well as the risks and uncertainties discussed under the heading “Risk Factors” included in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2025. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

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Executive Overview

During the quarter ended April 5, 2026, we had consolidated net sales of $331.0 million, up 11.3% compared to $297.4 million in the first quarter last year, primarily due to higher sales volume partially driven by an extra week in 2026. The sales increase was primarily in the corporate office market segment. Fluctuations in currency exchange rates positively impacted net sales during the first quarter of 2026, as discussed below. Consolidated operating income was $32.3 million for the first quarter of 2026, compared to $23.2 million in the first quarter last year, primarily due to higher gross profit margin as a result of higher average sales prices and product mix, lower manufacturing costs in EAAA, partially offset by increased tariff costs. Consolidated net income for the quarter ended April 5, 2026, was $23.6 million or $0.40 per diluted share, compared to consolidated net income of $13.0 million or $0.22 per diluted share, in the first quarter last year.

Impact of Macroeconomic Trends

Ongoing disruptions in economic markets and global energy markets, inflation, the war between Russia and Ukraine, conflicts in the Middle East, evolving trade policies and the impact of tariffs on the demand for our products, a challenging supply chain environment, slow market conditions in certain parts of the globe, significant financial pressures in the commercial office market globally, and other geopolitical factors, all pose challenges which may adversely affect our future performance. We plan to continue evaluating our cost structure and global manufacturing footprint to identify and activate opportunities to decrease costs and optimize our global cost structure.

In 2025, the U.S. government enacted a series of higher trade tariffs on goods imported into the U.S. As a result, the Company incurred higher tariff costs on rubber and luxury vinyl tile products imported into the U.S. in fiscal year 2025 and in the first quarter of 2026. In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were invalid. The Company believes certain tariffs previously paid may be refundable. The Company has not yet recognized any recovery of tariffs in its consolidated financial statements.

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Analysis of Results of Operations

Consolidated Results

The following table presents, as a percentage of net sales, certain items included in our consolidated condensed statements of operations for the three-month periods ended April 5, 2026 and March 30, 2025:

			Three Months Ended
			April 5, 2026						March 30, 2025
Net sales			100.0		%				100.0		%
Cost of sales			61.7						62.7
Gross profit			38.3						37.3
Selling, general and administrative expenses			28.5						29.5
Operating income			9.8						7.8
Interest/Other expense, net			1.1						2.0
Income before income tax expense			8.7						5.8
Income tax expense			1.6						1.4
Net income			7.1		%				4.4		%

Consolidated Net Sales

Below is information regarding our consolidated net sales, and analysis of those results, for the three-month periods ended April 5, 2026, and March 30, 2025:

			Three Months Ended												Percentage Change
			April 5, 2026						March 30, 2025
			(in thousands)
Consolidated net sales			$	331,037					$	297,413					11.3		%

For the quarter ended April 5, 2026, consolidated net sales increased $33.6 million (11.3%) versus the comparable period in 2025, primarily due to higher sales volume (approximately 6%) and the impact of currency fluctuations, which had a positive impact on net sales of approximately $13.4 million (5%). These currency fluctuations were primarily due to the strengthening of the Euro against the U.S. dollar. On a market segment basis, the sales increase was primarily in the corporate office, public buildings, healthcare, and retail market segments.

Consolidated Cost and Expenses

The following table presents our consolidated cost of sales and selling, general and administrative expenses for the three-month periods ended April 5, 2026, and March 30, 2025:

			Three Months Ended												Percentage Change
			April 5, 2026						March 30, 2025
			(in thousands)
Consolidated cost of sales			$	204,314					$	186,450					9.6		%
Consolidated selling, general and administrative expenses			94,393						87,736						7.6		%

Consolidated Cost of Sales

For the quarter ended April 5, 2026, consolidated cost of sales increased $17.9 million (9.6%) compared to the first quarter of 2025, primarily due to higher sales volume, increased tariff costs on rubber and luxury vinyl tile products imported into the U.S., partially offset by lower EAAA manufacturing costs driven by favorable fixed cost absorption on higher volume. Currency fluctuations had a negative impact on consolidated cost of sales for the first quarter of 2026 and partially increased our costs by approximately $8.6 million (4.6%) compared to the same period last year. As a percentage of net sales, our cost of sales decreased to 61.7% for the first quarter of 2026 versus 62.7% for the first quarter of 2025.

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Consolidated Gross Profit

For the quarter ended April 5, 2026, consolidated gross profit, as a percentage of net sales, was 38.3% compared with 37.3% in the same period last year. The increase in consolidated gross profit percentage was primarily due to higher average sales prices (approximately 1%), favorable product mix (approximately 1%), partially offset by higher manufacturing costs (approximately 1%) driven by increased tariff costs that offset lower EAAA manufacturing costs.

Consolidated Selling, General and Administrative (“SG&A”) Expenses

For the quarter ended April 5, 2026, consolidated SG&A expenses increased $6.7 million (7.6%) versus the comparable period in 2025. Currency fluctuations had a negative impact on consolidated SG&A expenses of approximately $3.0 million (3.4%) in the first quarter of 2026 compared to the same period last year. SG&A expenses were higher for the first quarter of 2026 primarily due to (i) higher variable compensation of $3.1 million; (ii) higher labor costs of $2.5 million; and (iii) higher advertising costs of $1.1 million due to a new product launch. As a percentage of net sales, SG&A expenses decreased to 28.5% for the first quarter of 2026 versus 29.5% for the first quarter of 2025.

Interest Expense

During the quarter ended April 5, 2026, interest expense was $2.7 million, a decrease of $1.8 million from the comparable period in 2025, primarily due to lower outstanding borrowings as the senior notes were redeemed in December 2025. Lower interest rates on borrowings under the Facility also contributed to the decrease in interest expense.

Provision for Income Taxes

The effective tax rate for the three months ended April 5, 2026 and March 30, 2025, was 18.3% and 24.0%, respectively. The decrease in the effective tax rate for the three months ended April 5, 2026, compared to the same period last year was primarily due to higher excess tax benefits related to share-based compensation.

See Note 12 entitled “Income Taxes” of Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Segment Operating Results

AMS Segment – Net Sales and Adjusted Operating Income (“AOI”)

The following table presents AMS segment net sales and AOI for the three-month periods ended April 5, 2026, and March 30, 2025:

			Three Months Ended												Percentage Change
			April 5, 2026						March 30, 2025
			(in thousands)
AMS segment net sales			$	195,671					$	179,937					8.7		%
AMS segment AOI(1)			23,896						19,863						20.3		%

(1) Includes allocation of corporate and global support SG&A expenses. Excludes restructuring, asset impairment, severance, and other, net. See Note 10 entitled “Segment Information” of Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

During the first quarter of 2026, net sales in AMS increased 8.7% versus the comparable period in 2025 primarily due to higher sales volume and average sales prices. On a market segment basis, the AMS sales increase was primarily in the corporate office, healthcare, public buildings, and retail market segments.

AOI in AMS increased 20.3% during the first quarter of 2026 compared to the prior year period primarily due to higher sales. Higher gross profit margin driven by higher average sales prices and product mix, partially offset by increased tariff costs, also contributed to the increase in AMS AOI. As a percentage of net sales, AOI increased to 12.2% during the first quarter of 2026 compared to 11.0% in the same period last year.

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EAAA Segment – Net Sales and AOI

The following table presents EAAA segment net sales and AOI for the three-month periods ended April 5, 2026, and March 30, 2025:

			Three Months Ended												Percentage Change
			April 5, 2026						March 30, 2025
			(in thousands)
EAAA segment net sales			$	135,366					$	117,476					15.2		%
EAAA segment AOI(1)			8,827						5,591						57.9		%

(1) Includes allocation of corporate and global support SG&A expenses. Excludes purchase accounting amortization and restructuring, asset impairment, severance and other, net. See Note 10 entitled “Segment Information” of Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

During the first quarter of 2026, net sales in EAAA increased 15.2% versus the comparable period in 2025, primarily due to higher sales volume. Currency fluctuations had a positive impact on EAAA net sales of approximately $12.8 million (10.9%) from the strengthening of the Euro and Australian dollar against the U.S. dollar. On a market segment basis, the EAAA sales increase was most significant in the corporate office market segment.

AOI in EAAA increased 57.9% during the first quarter of 2026 versus the comparable period in 2025, primarily due to higher sales and higher gross profit margin as a result of lower manufacturing costs driven by favorable fixed cost absorption on higher production volume. As a percentage of net sales, AOI increased to 6.5% during the first quarter of 2026 compared to 4.8% in the same period last year.

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Financial Condition, Liquidity and Capital Resources

General

At April 5, 2026, the Company had $61.2 million in cash. At that date, the Company had $173.6 million in term loan borrowings, $23.1 million in revolving loan borrowings, and $0.6 million in letters of credit outstanding under our Facility. As of April 5, 2026, we had additional borrowing capacity of $226.3 million under the Facility. We anticipate that our liquidity is sufficient to meet our obligations for the next 12 months, and we expect to generate sufficient cash to meet our long-term obligations.

Balance Sheet

Accounts receivable, net, were $163.3 million at April 5, 2026, compared to $174.5 million at December 28, 2025. The decrease of $11.2 million was primarily due to customer collections in the first quarter of 2026.

Inventories, net, were $294.2 million at April 5, 2026, compared to $275.0 million at December 28, 2025. The increase of $19.2 million was primarily due to finished goods inventory build attributable to expected higher customer demand in the remainder of 2026.

Analysis of Cash Flows

The following table presents a summary of cash flows for the three-month periods ended April 5, 2026 and March 30, 2025, respectively:

			Three Months Ended
			April 5, 2026						March 30, 2025
			(in thousands)
Net cash provided by (used in):
Operating activities			$	13,538					$	11,739
Investing activities			(10,327)						(7,467)
Financing activities			(12,382)						(8,668)
Effect of exchange rate changes on cash			(921)						2,927
Net change in cash and cash equivalents			(10,092)						(1,469)
Cash and cash equivalents at beginning of period			71,323						99,226
Cash and cash equivalents at end of period			$	61,231					$	97,757

Cash provided by operating activities was $13.5 million for the three months ended April 5, 2026, which represents an increase of $1.8 million from the prior year comparable period. The increase was primarily due to higher net income for the three months ended April 5, 2026, partially offset by a higher use of cash related to inventory build as discussed above.

Cash used in investing activities was $10.3 million for the three months ended April 5, 2026, which represents an increase of $2.9 million from the prior year comparable period, primarily attributable to a greater capital investment in manufacturing automation and robotics solutions during the three months ended April 5, 2026.

Cash used in financing activities was $12.4 million for the three months ended April 5, 2026, which represents an increase of $3.7 million from the prior year comparable period. The year-over-year increase was primarily due to higher outstanding borrowings under the credit facility resulting in higher repayments and the repurchase of common stock, partially offset by higher proceeds from line of credit borrowings under the credit facility during the three months ended April 5, 2026.

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Share Repurchases

In May 2022, the Company adopted a share repurchase program in which the Company is authorized to repurchase up to $100 million of its outstanding shares of common stock. The program has no specific expiration date. During the three months ended April 5, 2026, the Company repurchased 460,882 shares of common stock at a weighted average price of $26.04 per share pursuant to this program.

Outlook

We anticipate revenue growth in the second quarter of fiscal 2026 compared to the first quarter of 2026. We anticipate that our second quarter and the remainder of fiscal 2026 will be impacted by higher raw material costs, higher energy costs, and higher costs to procure our luxury vinyl tile products amid increased global macro-economic uncertainty. We are activating initiatives to offset these impacts through incremental pricing and productivity.

Cash flows from operations, cash and cash equivalents, and other sources of liquidity are expected to be available and sufficient to meet foreseeable cash requirements. However, the Company’s cash flows from operations can be affected by numerous factors including raw material availability and cost, and demand for our products.

Backlog

As of April 27, 2026, the consolidated backlog of unshipped orders was approximately $256.6 million. As disclosed in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025, backlog was approximately $222.8 million as of February 2, 2026. Historically, backlog is subject to significant fluctuations due to the timing of orders for individual large projects. Disruptions in supply and distribution chains or delays in construction projects and flooring installations worldwide, have caused, and may continue to cause, fluctuations in our backlog.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The discussion below in this Item 3 is based upon the more detailed discussions of our market risk and related matters included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025, under Part II, Item 7A of that Form 10-K. The discussion here focuses on the three months ended April 5, 2026, and any material changes from (or other important intervening developments since the time of) the information discussed in that Form 10-K. This discussion should be read in conjunction with that Form 10-K for more detailed and background information.

Sensitivity Analysis

For purposes of specific risk analysis, we use sensitivity analysis to measure the impact that market risk may have on the fair values of our market sensitive instruments. To perform sensitivity analysis, we assess the risk of loss in fair values associated with the impact of hypothetical changes in interest rates and foreign currency exchange rates on market sensitive instruments.

Because the debt outstanding under our Facility has variable interest rates based on an underlying prime lending rate, SOFR, or other benchmark rate, we do not believe changes in interest rates would have any significant impact on the fair value of that debt instrument. Changes in the underlying prime lending rate, SOFR, or other benchmark rate would, however, impact the amount of our interest expense. For a discussion of these hypothetical impacts on our interest expense, please see the discussion in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 28, 2025.

As of April 5, 2026, a 10% decrease or increase in the levels of foreign currency exchange rates against the U.S. dollar, with all other variables held constant, would result in a respective decrease or increase in the net fair value of our financial instruments of $8.2 million. As the impact of offsetting changes in the fair market value of our net foreign investments is not included in the sensitivity model, these results are not indicative of our actual exposure to foreign currency exchange risk.

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ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was performed under the supervision and with the participation of our management, including our President and Chief Executive Officer and our Vice President and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Act”), pursuant to Rule 13a-14(c) under the Act.

No system of controls, no matter how well designed and operated, can provide absolute assurance that the objectives of the system of controls are met, and no evaluation of controls can provide absolute assurance that the system of controls has operated effectively in all cases. Our disclosure controls and procedures, however, are designed to provide reasonable assurance that the objectives of disclosure controls and procedures are met.

Based on the evaluation, our President and Chief Executive Officer and our Vice President and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report to provide reasonable assurance that the objectives of disclosure controls and procedures are met.

There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are a party to legal proceedings, whether arising in the ordinary course of business or otherwise. See Note 14 of Part I, Item 1 of this Quarterly Report on Form 10-Q and Note 17 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 28, 2025.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the risk factors disclosed in Part I, Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the fiscal year ended December 28, 2025.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table contains information with respect to purchases made by or on behalf of the Company, or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of our common stock during our first quarter ended April 5, 2026:

Period(1)						Total Number of Shares Purchased						Average Price Paid Per Share						Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)						Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2)
December 29 – February 1, 2026(3)						54,524						$	30.06					—						$	64,654,096
February 2 – March 1, 2026(3)						385,237						31.74						—						64,654,096
March 2 – April 5, 2026(3)						461,189						26.04						460,882						52,654,119
Total						900,950						$	28.72					460,882

(1) The monthly periods identified above correspond to the Company’s fiscal first quarter of 2026, which commenced December 29, 2025 and ended April 5, 2026.

(2) On May 17, 2022, the Company announced a share repurchase program authorizing the repurchase of up to $100 million of common stock. The program has no specific expiration date.

(3) Comprised or partially comprised of shares received by the Company from employees to satisfy income tax withholding obligations in connection with the vesting of previous equity awards.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the three months ended April 5, 2026, no director or officer (as defined in Rule 16a-1(f) of the Exchange Act) of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

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ITEM 6. EXHIBITS

The following exhibits are filed or furnished with this report:

Exhibit Number			Description of Exhibit
31.1			Section 302 Certification of Chief Executive Officer.
31.2			Section 302 Certification of Chief Financial Officer.
32.1			Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350.
32.2			Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350.
101.INS			XBRL Instance Document – The Instance Document does not appear in the Interactive Data Files because its XBRL tags are embedded within the Inline XBRL document.
101.SCH			XBRL Taxonomy Extension Schema Document.
101.CAL			XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB			XBRL Taxonomy Extension Label Linkbase Document.
101.PRE			XBRL Taxonomy Presentation Linkbase Document.
101.DEF			XBRL Taxonomy Definition Linkbase Document.
104			The cover page from this Quarterly Report on Form 10-Q for the quarter ended April 5, 2026, formatted in Inline XBRL

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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.

			INTERFACE, INC.
Date: May 12, 2026			By:			/s/ Bruce A. Hausmann
						Bruce A. Hausmann Chief Financial Officer (Principal Financial Officer)

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FAQ

How did Interface (TILE) perform financially in Q1 2026?

Interface reported higher results in Q1 2026, with net sales of $331.0 million versus $297.4 million a year earlier. Net income increased to $23.6 million, and diluted EPS rose to $0.40, reflecting better margins and lower interest expense.

What drove Interface (TILE) revenue growth in Q1 2026?

Revenue growth was mainly driven by higher sales volume, including an extra week in the quarter, and improved pricing and product mix. Net sales reached $331.0 million, up 11.3%, with particular strength in corporate office, public buildings, healthcare, and retail segments.

How did Interface (TILE) margins and expenses change in Q1 2026?

Gross margin improved to 38.3% of net sales, up from 37.3%, helped by pricing and mix. Selling, general and administrative expenses rose in dollars but declined to 28.5% of sales from 29.5%, as higher revenue spread fixed and variable costs more efficiently.

What is Interface (TILE)’s liquidity and debt position as of April 5, 2026?

Interface held $61.2 million in cash and had $196.7 million outstanding under its syndicated credit facility, including $173.6 million of term debt and $23.1 million of revolver borrowings. The company also had $226.3 million in additional borrowing capacity available.

Did Interface (TILE) repurchase shares in Q1 2026?

Yes. Interface repurchased and retired about 460,882 shares of common stock during Q1 2026 at a weighted average price of $26.04 per share, spending approximately $12.0 million under its ongoing $100 million share repurchase program.

What is Interface (TILE)’s backlog and outlook for 2026?

As of April 27, 2026, Interface’s consolidated backlog was about $256.6 million, up from $222.8 million in early February. Management expects revenue growth in Q2 and the remainder of 2026 but anticipates higher raw material, energy, and luxury vinyl tile procurement costs.