WDFC · WD-40 Company

Notes & Operating Detail

Balance Sheet & Liquidity

Cash and equivalents decreased to $48.6M from $58.1M at August 31, 2025, primarily due to share repurchases, dividends, and debt repayments. Total debt increased $4.0M to $91.0M, driven by $4.5M in revolving credit facility draws partially offset by $0.4M in senior note repayments. The leverage ratio covenant remains at or below 3.5x. Shareholders' equity declined to $264.1M from $268.2M due to dividends and buybacks exceeding net income.

Commitments & Contractual Obligations

Purchase commitments are discussed qualitatively: minimum purchase obligations with third-party packagers and commitments to purchase inventory produced based on 2-6 month projections. No dollar amounts were disclosed. Contingencies include standard litigation and indemnification provisions with no material expected losses.

Capital Allocation (buybacks, dividends, debt, capex)

• Buybacks: 39,500 shares repurchased for $7.8M at average price $197.45. Remaining authorization $21.8M under the 2023 Repurchase Plan (expires Aug 31, 2026).
• Dividends: $0.94 per share paid during the quarter totaling $12.8M. Subsequent to quarter end, board approved a 9% increase to $1.02 per share, payable Jan 30, 2026.
• Debt: Net increase of $4.0M, with $4.5M drawn on credit facility and $0.4M repaid on senior notes.
• Capex: $0.9M, or 0.6% of sales, primarily for property and equipment.

Segment / Geographic Mix (if disclosed at note level)

Segment revenue and operating income from Note 14:

• Americas: $71.9M revenue (+3.5% YoY), operating income $15.0M (20.9% margin).
• EIMEA: $58.7M revenue (+2.1% YoY), operating income $12.5M (21.3% margin).
• Asia-Pacific: $23.9M revenue (-10.2% YoY), operating income $8.0M (33.4% margin).

Total segment operating income $35.5M, less unallocated corporate expenses of $12.2M yields GAAP operating income of $23.3M. The Asia-Pacific decline was driven by lower WD-40 Multi-Use Product sales.