Crocs reports $1.04B revenue for Q3 2026

Cover page 2 changes

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For the quarterly period ended June September 30, 2026

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As of July 23, October 22, 2026, Crocs, Inc. had 47,945,075 45,725,039 shares of its common stock, par value $0.001 per share, outstanding.

Forward-looking statements 2 changes

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Statements that refer to industry trends, projections of our future financial performance, anticipated trends in our business and other characterizations of future events or circumstances are forward-looking statements. These statements, which express management s current views concerning future events or results, use words like anticipate, assume, believe, confident, continue, estimate, expect, future, intend, plan, project, strive, and future or conditional tense verbs like could, may, might, should, will, would, and similar expressions or variations. Examples of forward-looking statements include, but are not limited to, statements we make regarding:

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For the Quarterly Period Ended June September 30, 2026

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Financial Statements (Unaudited) 1 change

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Condensed Consolidated Statements of Comprehensive Incom e ( Income (Loss) )

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Financial statements 42 changes

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Three Months Ended June 30, Six Months Ended June 30,

Goodwill impairment (1)

Asset impairments (1)

Income (loss) from operations

Foreign currency (losses) gains, net

Three Months Ended September 30, Nine Months Ended September 30,

Selling, general and administrative expenses (1)

Goodwill impairment 307,000

Asset impairments 3,301 431,115

Income from operations

Foreign currency gains (losses), net

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(1) Amounts for the three and six months ended June 30, 2025, have been reclassified to conform to current period presentation.

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Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

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Reclassification adjustment for realized Unrealized (losses) gains on derivative instruments

Unrealized Reclassification adjustment for realized (gains) losses on derivative instruments ( 103 ) 40 ( 14 ) ( 195 )

Net increase (decrease) increase from derivatives designated as hedging instruments ( 697 ) 96 749 ( 340 )

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Accounts receivable, net of allowances of $ 38,848 39,818 and $ 28,136 , respectively

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Property and equipment, net of accumulated depreciation of $ 239,780 248,818 and $ 209,873 , respectively

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Long-term operating lease liabilities 291,400 283,254 297,192

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Common stock, par value $ 0.001 per share, 250.0 million shares authorized, 111.0 111.2 million and 110.7 million issued, 48.1 46.2 million and 50.2 million outstanding, respectively

Treasury stock, at cost, 62.9 65.0 million and 60.5 million shares, respectively ( 3,296,549 3,564,417 ) ( 3,040,416 )

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Balance at March 31, 2026

Share-based compensation 14,245 14,245

Balance at June 30, 2026

Share-based compensation 11,644 11,644

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Balance at June September 30, 2026

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Balance at March 31, 2025

Share-based compensation 11,259 11,259

Balance at June 30, 2025

Share-based compensation 8,476 8,476

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Other comprehensive income loss

Balance at June September 30, 2025

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Share-based compensation 24,852 24,852

Share-based compensation 36,496 36,496

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Balance at June September 30, 2026

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Share-based compensation 20,036 20,036

Share-based compensation 28,512 28,512

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Balance at June September 30, 2025

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Six Months Ended June 30,

Nine Months Ended September 30,

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Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 4,724 2,000 ) 7,125 5,462

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Note 1: BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 11 changes

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Our reportable operating segments include: (i) the Crocs Brand and (ii) the HEYDUDE Brand. See Note 14 13 Operating Segments for additional information.

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These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 ( Annual Report ), and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to Consolidated Financial Statements included in our Annual Report. Our accounting policies did not change during the six nine months ended June September 30, 2026, other than with respect to the new accounting pronouncements adopted, as applicable, as described in Note 2 Recent Accounting Pronouncements.

We have reclassified certain amounts on the condensed consolidated statements of operations and in Note 1 Basis of Presentation and Summary of Significant Accounting Policies to conform to current period presentation.

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Cash paid for interest $ 35,023 $ 39,393

On February 20, 2026, the United States Supreme Court ruled the President did not have the requisite authority to impose tariffs under the International Emergency Economic Powers Act ( IEEPA ). On March 4, 2026, the Court of International Trade ordered U.S. Customs and Border Protection to begin the refund process for all importers who were subject to IEEPA duties. As of June 30, 2026, no refunds were realized or considered realizable; accordingly, no benefit has been recognized under the gain contingency model. Subsequent to June September 30, 2026, we received approximately $ 20 67 million of IEEPA tariff refunds, The corresponding including interest. Of this amount, approximately $ 64 million of benefit is expected to be recognized recorded within Cost of sales and approximately $ 3 million of benefit is recorded within Interest income in the condensed consolidated statements of operations during the third quarter of three months ended September 30, 2026.

Condensed Consolidated Statements of Cash Flows - Supplemental Disclosures (in thousands)

Nine Months Ended September 30,

Cash paid for interest $ 58,698 $ 65,873

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Cash paid for operating leases 57,050 49,986 87,469 76,537

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Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations $ 44,975 61,725 $ 74,753 89,632

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(1) In the fourth quarter of 2025, we revised our presentation for cash paid for income taxes. Previously, cash paid for income taxes was presented excluding income tax refunds received. Under the revised presentation, cash paid for income taxes is presented net of refunds. We believe the revised presentation provides more meaningful and transparent information regarding our operating cash flows. Amounts for the six nine months ended June September 30, 2025, have been recast to conform to current period presentation.

Note 2: RECENT ACCOUNTING PRONOUNCEMENTS 1 change

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Other new pronouncements issued but not effective until after June September 30, 2026, are not expected to have a material impact on our condensed consolidated financial statements.

Note 3: GOODWILL AND INTANGIBLE ASSETS, NET 9 changes

1 unchanged paragraph

There was no triggering event or impairment recorded during the three and six nine months ended June September 30, 2026.

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The changes in goodwill for the six nine months ended June September 30, 2026, were:

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Changes during the six nine months ended June September 30, 2026:

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Gross goodwill at June September 30, 2026

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Net goodwill at June September 30, 2026

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June September 30, 2026 December 31, 2025

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Patents, copyrights, and trademarks 10,783 11,545 ( 4,490 4,684 ) 6,293 6,861 9,767 ( 4,240 ) 5,527

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Other 828 828 773 773

Other 815 815 773 773

Note 4: ACCRUED EXPENSES AND OTHER LIABILITIES 9 changes

1 unchanged paragraph

Professional services 52,534 53,331

Return liabilities 43,715 37,960

June September 30, 2026 December 31, 2025

Accrued compensation and benefits $ 60,770 81,870 $ 88,242

Professional services 41,037 53,331

Fulfillment, freight, and duties 45,652 39,432 39,720

Return liabilities 24,293 37,960

Sales/use and value added taxes payable 32,953 19,875 23,068

Total accrued expenses and other liabilities $ 306,066 266,533 $ 300,959

Note 5: FAIR VALUE MEASUREMENTS 13 changes

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All of our derivative instruments are classified as Level 2 of the fair value hierarchy and are reported in the condensed consolidated balance sheets within either Prepaid expenses and other assets or Accrued expenses and other liabilities at June September 30, 2026, and December 31, 2025. The fair values of our derivative instruments were an insignificant asset and an insignificant liability at June September 30, 2026, and an insignificant asset and an insignificant liability at December 31, 2025. See Note 7 6 Derivative Financial Instruments for more information.

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Our borrowing instruments are recorded at their carrying values in the condensed consolidated balance sheets, which may differ from their respective fair values. The Term Loan B Facility (as defined below) and the Notes (as defined below) are classified as Level 1 of the fair value hierarchy and are reported in our condensed consolidated balance sheet at face value, less unamortized issuance costs. The fair value of our Revolving Facility (as defined below) approximates its carrying value at June September 30, 2026, and December 31, 2025, based on interest rates currently available to us for similar borrowings. The carrying value and fair value of our borrowing instruments as of June September 30, 2026, and December 31, 2025, were:

June September 30, 2026 December 31, 2025

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Term Loan B Facility $ 500,000 $ 502,813 503,125 $ 500,000 $ 504,063

2029 Notes 350,000 339,906 332,677 350,000 339,304

2031 Notes 350,000 326,454 315,403 350,000 323,971

Revolving Facility 134,000 134,000 113,000 113,000 62,000 62,000

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Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30, (in thousands)

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Total asset impairments $ $ 738,115 $ 3,301 $ 738,115

(1) During the three nine months ended June September 30, 2025, we recognized impairment charges of $ 430.0 million and $ 307.0 million to our indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill, respectively. Refer to Note 3 Goodwill and Intangible Assets, Net for additional information.

(2) During the six nine months ended June September 30, 2026, we recognized impairment charges of $ 3.3 million for certain HEYDUDE retail stores.

(3) During the three nine months ended June September 30, 2025, we recognized an impairment of $ 1.1 million related to the discontinuation of an information technology project.

Note 6: DERIVATIVE FINANCIAL INSTRUMENTS 40 changes

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Counterparty default risk is considered low because the forward contracts we enter into are over-the-counter instruments transacted with highly-rated financial institutions. We were not required to and did not post collateral as of June September 30, 2026, or December 31, 2025.

Our derivative instruments are recorded at fair value as a derivative asset or liability in the condensed consolidated balance sheets within either Prepaid expenses and other assets or Accrued expenses and other liabilities at June September 30, 2026, and December 31, 2025. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain components of its risk, even though hedge accounting does not apply, or we elect not to apply hedge accounting.

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As of June September 30, 2026, we have derivatives not designated as hedging instruments ( non-hedged derivatives ), which consist of foreign currency forward contracts primarily used to hedge monetary assets and liabilities denominated in non-functional currencies. For our non-hedged derivatives, changes in fair value are recognized within Foreign currency (losses) gains (losses), net in the condensed consolidated statements of operations.

We also have cash flow hedges ( hedged derivatives ) as of June September 30, 2026. We are exposed to fluctuations in various foreign currencies against our functional currency, the U.S. Dollar. Specifically, we have subsidiaries that transact in currencies other than their functional currency. We use cash flow hedges to minimize the variability in cash flows caused by fluctuations in foreign currency exchange rates related to our external sales and external purchases of inventory. Currency forward agreements involve fixing the exchange rates for delivery of a specified amount of foreign currency on a specified date. The currency forward agreements are typically cash settled in USD for their fair value at or close to their settlement date. We may also use currency option contracts under which we will pay a premium for the right to sell a specified amount of a foreign currency prior to the maturity date of the option.

For derivatives designated and that qualify as cash flow hedges of foreign exchange risk, the gain or loss on the derivative is recorded in Accumulated other comprehensive loss in the condensed consolidated balance sheets. In the period during which the hedged transaction affects earnings, the related gain or loss is subsequently reclassified to Revenues or Cost of sales in the condensed consolidated statements of operations, which is consistent with the nature of the hedged transaction. During both the three and six nine months ended June September 30, 2026, there was an insignificant loss gain recognized due to reclassification from Accumulated other comprehensive loss to Revenues or Cost of sales related to our hedged derivatives. During the three and six nine months ended June September 30, 2025, there was a loss of $ 0.2 0.1 million and a gain of $ 0.3 million, respectively, recognized due to reclassification from Accumulated other comprehensive loss to Revenues or Cost of sales related to our hedged derivatives. During the next twelve months, we estimate that a gain of $ 0.8 0.1 million will be reclassified to our condensed consolidated statements of operations.

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June September 30, 2026 December 31, 2025

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Forward foreign currency exchange contracts $ 1,568 $ ( 104 232 ) $ 888 $ ( 291 )

Cash flow foreign currency contracts 1,125 475 ( 185 302 ) 109 ( 961 )

Total derivatives 2,693 475 ( 289 534 ) 997 ( 1,252 )

Netting of counterparty contracts ( 209 55 ) 209 55 ( 268 ) 268

Total derivatives, net of counterparty contracts $ 2,484 420 $ ( 80 479 ) $ 729 $ ( 984 )

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June September 30, 2026 December 31, 2025

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Euro 35,346 778 12,712 18

Brazilian Real 14,802 128 12,026 28

Japanese Yen 10,075 232 7,882 354

South Korean Won 7,694 326 18,690 257

Brazilian Real 10,727 ( 40 ) 12,026 28

Japanese Yen 5,593 ( 192 ) 7,882 354

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Euro 16,520 459 39,909 ( 279 )

Japanese Yen 2,632 159 9,342 109

Australian Dollar 4,243 ( 185 ) 7,677 ( 46 )

Canadian Dollar 3,415 105 7,595 ( 60 )

Total derivatives $ 104,508 $ 2,404 $ 222,573 $ ( 255 )

Total non-hedged derivatives 67,917 1,464 16,320 ( 232 ) 126,156 597

Euro 9,455 371 39,909 ( 279 )

South Korean Won 6,903 389 3,043 ( 223 ) 23,963 ( 494 )

Japanese Yen 1,139 42 9,342 109

British Pound Sterling 2,878 13 1,332 5 7,931 ( 82 )

Australian Dollar 1,587 ( 79 ) 7,677 ( 46 )

Canadian Dollar 1,578 57 7,595 ( 60 )

Total hedged derivatives 36,591 940 18,134 173 96,417 ( 852 )

Total derivatives $ 34,454 $ ( 59 ) $ 222,573 $ ( 255 )

Latest maturity date, non-hedged derivatives July October 2026 January 2026

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Three Months Ended June 30, Six Months Ended June 30,

Foreign currency (losses) gains, net

Amounts reported in Foreign currency (losses) gains (losses), net in the condensed consolidated statements of operations include both realized and unrealized gains and losses from foreign currency transactions and derivative contracts and were:

Three Months Ended September 30, Nine Months Ended September 30, (in thousands)

Foreign currency transaction (losses) gains (losses)

Foreign currency forward exchange contracts (losses) gains

Foreign currency gains (losses), net

Note 7: BORROWINGS 23 changes

1 unchanged paragraph

Maturity Stated Interest Rate Effective Interest Rate June September 30, 2026 December 31, 2025 (in thousands)

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Total face value of long-term borrowings 1,334,000 1,313,000 1,262,000

Unamortized issuance costs 26,342 23,956 31,115

Total long-term borrowings $ 1,307,658 1,289,044 $ 1,230,885

At June September 30, 2026, and December 31, 2025, $ 2.9 million and $ 10.2 million, respectively, of accrued interest related to our borrowings was reported in Accounts payable in the condensed consolidated balance sheets.

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In July 2019, the Company and certain of its subsidiaries (the Borrowers ) entered into a Second Amended and Restated Credit Agreement (as amended, the Credit Agreement ), with the lenders named therein and PNC Bank, National Association, as a lender and administrative agent for the lenders. Since that time, we have amended the Credit Agreement, which, as amended to date, provides for a revolving credit facility of $ 1.0 billion, which can be increased by an additional $ 400.0 million subject to certain conditions (the Revolving Facility ). Borrowings under the Credit Agreement bear interest at a variable interest rate based on (A) a Base Rate (defined as the highest of (i) the Overnight Bank Funding Rate (as defined in the Credit Agreement), plus 0.25 %, (ii) the Prime Rate (as defined in the Credit Agreement), and (iii) the Daily Simple SOFR (as defined in the Credit Agreement), plus 1.00 %), plus an applicable margin ranging from 0.25 % to 0.875 % based on our leverage ratio or 1.35 % to 1.975 % for the Daily Simple SOFR based on the leverage ratio, inclusive of a 0.10 % SOFR adjustment, or (B) the Term SOFR Rate (as defined in the Credit Agreement), plus an applicable margin ranging from 1.35 % to 1.975 % based on our leverage ratio for one-month interest periods and three-month interest periods, inclusive of a 0.10 % SOFR adjustment. Borrowings under the Credit Agreement are secured by all of the assets of the Borrowers and guaranteed by certain other subsidiaries of the Borrowers.

The Credit Agreement requires us to maintain a minimum interest coverage ratio of 3.00 to 1.00, and a maximum leverage ratio of 3.25 to 1.00 (subject to adjustment in certain circumstances). The Credit Agreement permits, among other things, (i) stock repurchases subject to certain restrictions, including after giving effect to such stock repurchases, the maximum leverage ratio does not exceed certain levels; and (ii) certain acquisitions so long as there is borrowing availability under the Credit Agreement of at least $ 40.0 million. As of June 30, 2026, we were in compliance with all financial covenants under the Credit Agreement.

The Company and certain of its subsidiaries (the Borrowers ) are parties to a credit agreement (as amended, the Revolving Credit Agreement ) that provides for a senior secured revolving credit facility with aggregate commitments of $ 1.0 billion (the Revolving Facility ). Subject to the terms of the Revolving Credit Agreement and lender commitments, the Borrowers may increase the commitments under the Revolving Facility by up to an additional $ 400.0 million, subject to certain conditions. The Revolving Facility matures in November 2027.

As of June 30, 2026, the total commitments available from the lenders under the Revolving Facility were $ 1.0 billion. At June September 30, 2026, we had $ 134.0 113.0 million in of outstanding borrowings and $ 0.6 million in of outstanding letters of credit, under the Revolving Facility, which reduces amounts available for borrowing reduced availability under the Revolving Facility. As of June September 30, 2026 and December 31, 2025, we had availability under the Revolving Facility was $ 865.4 886.4 million and $ 937.4 million, respectively. of available borrowing capacity under the Revolving Facility, which matures in November 2027.

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On February 17, 2022, the Company entered into a credit agreement (the Original Term Loan B Credit Agreement ) with Citibank, N.A., as administrative agent and lender, which was amended on August 8, 2023, (the August 2023 Amendment ) and on February 13, 2024 (the February 2024 Amendment ). The Original Term Loan B Credit Agreement, as amended by the August 2023 Amendment and the February 2024 Amendment, is referred to herein as the Term Loan B Credit Agreement.

The Original Term Loan B Credit Agreement provided for an aggregate term loan B facility in the principal amount of $ 2.0 billion. Prior to the February 2024 Amendment, the outstanding balance was $ 820.0 million. Among other things, the February 2024 Amendment provided for a new $ 820.0 million tranche of term loans (the 2024 Refinancing Term Loans and, such facility, the "Term Loan B Facility"), to refinance the then-outstanding principal balance. The 2024 Refinancing Term Loans are secured by substantially all of the Company s and each subsidiary guarantor s assets on a pari passu basis with their obligations arising from the Term Loan B Credit Agreement and is scheduled to mature on February 17, 2029, subject to certain exceptions set forth in the Term Loan B Credit Agreement. Additionally, subject to certain conditions, including, without limitation, satisfying certain leverage ratios, the Company may, at any time, on one or more occasions, add one or more new classes of term facilities and/or increase the principal amount of the loans of any existing class by requesting one or more incremental term facilities.

Pursuant to the reduced interest rate margins applicable to the 2024 Refinancing Term Loans, each term loan borrowing which is an alternate base rate borrowing bears interest at a rate per annum equal to the Alternate Base Rate (as defined in the Term Loan B Credit Agreement), plus 1.25 %. Each term loan borrowing which is a term SOFR borrowing bears interest at a rate per annum equal to the Adjusted Term SOFR Rate (as defined in the Term Loan B Credit Agreement) plus 2.25 %.

The Term Loan B Credit Agreement also contains customary affirmative and negative covenants, incurrence financial covenants, representations and warranties, events of default and other provisions. As of June 30, 2026, we were in compliance with all financial covenants under the Term Loan B Credit Agreement.

The Company is party to a credit agreement (as amended, the Term Loan B Credit Agreement ) that provides for a senior secured term loan facility (the Term Loan B Facility ). As of June September 30, 2026, the Term Loan B Facility was fully drawn with no remaining borrowing capacity, and we had $ 500.0 million in outstanding principal on the Term Loan B Facility.

1 unchanged paragraph

During the six months ended June 30, 2026, we had one revolving credit facility in Asia with Citibank (China) Company Limited, Shanghai Branch (the Citibank Facility ), which, as amended, provides up to an equivalent of $ 15.0 million.

As of June 30, 2026, and December 31, 2025, we had no borrowings outstanding on the Citibank Facility.

The Company maintains a revolving credit facility with Citibank (China) Company Limited, Shanghai Branch (the Asia Revolving Facility ), which provides borrowing capacity of up to $ 15.0 million (or its equivalent in local currency). As of September 30, 2026, and December 31, 2025, there were no outstanding borrowings under the Asia Revolving Facility.

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The Company has the option to redeem all or any portion of the 2029 Notes, at once or over time, at any time on or after March 15, 2024, at a redemption price equal to 100 % of the principal amount thereof, plus a premium declining ratably on an annual basis to par and accrued and unpaid interest, if any, to, but excluding, the date of redemption. The Company also had the option to redeem some or all of the 2029 Notes at any time before March 15, 2024, at a redemption price of 100 % of the principal amount to be redeemed, plus a make-whole premium and accrued and unpaid interest, if any, to, but excluding, the date of redemption. In addition, at any time before March 15, 2024, the Company could have redeemed up to 40 % of the aggregate principal amount of the 2029 Notes at a redemption price of 104.250 % of the principal amount with the proceeds from certain equity issuances, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption.

The Company will have the option to redeem all or any portion of the 2031 Notes, at once or over time, at any time on or after August 15, 2026, at a redemption price equal to 100 % of the principal amount thereof, plus a premium declining ratably on an annual basis to par and accrued and unpaid interest, if any, to, but excluding, the date of redemption. The Company will also have the option to redeem some or all of the 2031 Notes at any time before August 15, 2026, at a redemption price of 100 % of the principal amount to be redeemed, plus a make-whole premium and accrued and unpaid interest, if any, to, but excluding, the date of redemption. In addition, at any time before August 15, 2024, the Company could have redeemed up to 40 % of the aggregate principal amount of the 2031 Notes at a redemption price of 104.125 % of the principal amount with the proceeds from certain equity issuances, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption.

The Notes rank pari passu in right of payment with all of the Company s existing and future senior debt, including the Credit Agreement, and are senior in right of payment to any of the Company s future debt that is, by its term, expressly subordinated in right of payment to the Notes. The Notes are unconditionally guaranteed by each of the Company s restricted subsidiaries that is a borrower or guarantor under the Credit Agreement and by each of the Company s wholly-owned restricted subsidiaries that guarantees any debt of the Company or any guarantor under any syndicated credit facility or capital markets debt in an aggregate principal amount in excess of $ 25.0 million.

The Indentures contain covenants that, among other things, limit the ability of the Company and its restricted subsidiaries to incur additional debt or issue certain preferred stock; pay dividends or repurchase or redeem capital stock or make other restricted payments; declare or pay dividends or other payments; incur liens; enter into certain types of transactions with the Company s affiliates; and consolidate or merge with or into other companies. As of June 30, 2026, we were in compliance with all financial covenants under the Notes.

In March 2021, The Company completed the issuance and sale of has $ 350.0 million aggregate principal amount of 4.250 % Senior Notes due March 15, 2029, (the 2029 Notes ) pursuant to the indenture related thereto (as amended and/or supplemented to date, the 2029 Notes Indenture ). outstanding. Additionally, in August 2021, the Company completed the issuance and sale of has $ 350.0 million aggregate principal amount of 4.125 % Senior Notes due August 15, 2031, (the 2031 Notes ) pursuant to the indenture related thereto (as amended and/or supplemented to date, the 2031 Notes Indenture and, together with the 2029 Notes Indenture, the Indentures and, each, an Indenture ). outstanding. Interest on each of the 2029 Notes and the 2031 Notes (collectively, the Notes ) is payable semi-annually.

The Company was in compliance with all financial covenants as of September 30, 2026.

Note 8: COMMON STOCK REPURCHASE PROGRAM 4 changes

As of June 30, 2026, we had remaining authorization to repurchase $ 496.2 million of our common stock, subject to restrictions under our Indentures, Credit Agreement, and Term Loan B Credit Agreement. On July 27, 2026, the Board approved a $ 1.5 billion increase to our share repurchase authorization, after which approximately $ 2.0 billion remained available for future common stock repurchases.

During the three and six months ended June September 30, 2026, we repurchased 2.3 2.0 million shares of our common stock at a cost of $ 250.6 250.0 million, including commissions. During the nine months ended September 30, 2026, we repurchased 4.4 million shares of our common stock at a cost of $ 500.6 million, including commissions. During the three months ended June September 30, 2025, we repurchased 1.3 2.4 million shares of our common stock at a cost of $ 133.2 202.9 million, including commissions. During the six nine months ended June September 30, 2025, we repurchased 1.9 4.4 million shares of our common stock at a cost of $ 194.1 397.0 million, including commissions.

As of June September 30, 2026, and December 31, 2025, we had an accrual recorded for the stock repurchase excise tax of $ 2.3 4.6 million and $ 5.5 million, respectively, which is reported in Accrued expenses and other liabilities and Treasury stock in our condensed consolidated balance sheets.

As of September 30, 2026, we had remaining authorization to repurchase $ 1.7 billion of our common stock, subject to restrictions under our debt agreements.

Note 9: REVENUES 21 changes

1 unchanged paragraph

Three Months Ended June 30, Six Months Ended June 30,

Wholesale $ 152,549 $ 166,528 $ 290,946 $ 337,210

Direct-to-consumer 306,184 290,602 513,713 488,437

Three Months Ended September 30, Nine Months Ended September 30, (in thousands)

Wholesale $ 137,226 $ 144,353 $ 428,172 $ 481,563

Direct-to-consumer 301,143 303,352 814,856 791,789

1 unchanged paragraph

Wholesale 288,950 298,151 596,375 604,274

Direct-to-consumer 252,754 204,309 366,819 291,278

Total International 541,704 502,460 963,194 895,552

Total Crocs Brand $ 1,000,437 $ 959,590 $ 1,767,853 $ 1,721,199

Wholesale 225,139 220,003 821,514 824,276

Direct-to-consumer 209,213 168,521 576,032 459,799

Total International 434,352 388,524 1,397,546 1,284,075

Total Crocs Brand $ 872,721 $ 836,229 $ 2,640,574 $ 2,557,427

1 unchanged paragraph

Total Crocs Brand 1,000,437 959,590 1,767,853 1,721,199

Wholesale 82,564 99,760 165,966 210,453

Direct-to-consumer 96,467 90,023 167,106 155,054

Total Crocs Brand 872,721 836,229 2,640,574 2,557,427

Wholesale 79,087 69,402 245,053 279,855

Direct-to-consumer 90,775 90,670 257,881 245,725

1 unchanged paragraph

Total consolidated revenues $ 1,179,468 1,042,583 $ 1,149,373 996,301 $ 2,100,925 3,143,508 $ 2,086,706 3,083,007 (1) North America includes the United States and Canada.

1 unchanged paragraph

Note 10: INCOME TAXES 10 changes

1 unchanged paragraph

Three Months Ended June 30, Six Months Ended June 30,

Income (loss) before income taxes $ 263,923 $ ( 448,607 ) $ 442,767 $ ( 243,668 )

Income tax expense 59,036 43,675 100,324 88,511

Effective tax rate 22.4 % ( 9.7 ) % 22.7 % ( 36.3 %)

Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except effective tax rate)

Income (loss) before income taxes $ 277,434 $ 189,428 $ 720,201 $ ( 54,240 )

Income tax expense 60,679 43,612 161,003 132,123

Effective tax rate 21.9 % 23.0 % 22.4 % ( 243.6 %)

During the three months ended June September 30, 2026, income tax expense increased $ 15.4 17.1 million compared to the same period in 2025. The effective tax rate for the three months ended June September 30, 2026, was 22.4 21.9 % compared to an effective tax rate of ( 9.7 23.0 % for the same period in 2025. The change in the effective tax rate was the result of quarterly tax expense compared to the impact of the income (loss) before income taxes related to the impairments of the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill in the three months ended June 30, 2025. As a result of a prior year intra-entity transaction, shift in the value mix of the intellectual property for tax purposes is subject to revaluation our domestic and therefore there are not similar impacts for tax as a result of the intellectual property impairment. foreign earnings. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate due to differences in income tax rates between U.S. and foreign jurisdictions.

During the six nine months ended June September 30, 2026, income tax expense increased $ 11.8 28.9 million compared to the same period in 2025. The effective tax rate for the six nine months ended June September 30, 2026, was 22.7 22.4 % compared to an effective tax rate of ( 36.3 243.6 )% for the same period in 2025. The change in the effective tax rate was the result of year-to-date tax expense compared to the impact of the income (loss) before income taxes related to the impairments of the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill in the six nine months ended June September 30, 2025. As a result of a prior year intra-entity transaction, the value of the intellectual property for tax purposes is subject to revaluation and therefore there are not similar impacts for tax as a result of the intellectual property impairment. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate due to differences in income tax rates between U.S. and foreign jurisdictions.

3 unchanged paragraphs

Note 11: EARNINGS PER SHARE 8 changes

Three Months Ended June 30, Six Months Ended June 30,

Basic and diluted earnings per common share ( EPS ) for the three and six nine months ended June September 30, 2026, and 2025, were:

Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share data)

4 unchanged paragraphs

Basic $ 4.17 $ ( 8.82 ) $ 6.89 $ ( 5.94 )

Diluted $ 4.13 $ ( 8.82 ) $ 6.83 $ ( 5.94 )

Basic $ 4.57 $ 2.72 $ 11.43 $ ( 3.38 )

Diluted $ 4.52 $ 2.70 $ 11.32 $ ( 3.38 )

In the three and six nine months ended June September 30, 2026, an insignificant number of outstanding shares issued under share-based compensation awards were anti-dilutive and therefore excluded from the calculation of diluted EPS. In the three and six nine months ended June September 30, 2025, 0.1 million and 0.5 million outstanding shares issued under share-based compensation awards were anti-dilutive, and, respectively. Therefore, we excluded these anti-dilutive awards from the calculation of diluted EPS.

Note 12: COMMITMENTS AND CONTINGENCIES 2 changes

1 unchanged paragraph

As of June September 30, 2026, we had purchase commitments to third-party manufacturers, primarily for materials and supplies used in the manufacture of our products, for an aggregate of $ 232.1 307.5 million. We expect to fulfill our commitments under these agreements in the normal course of business, and as such, no liability has been recorded.

2 unchanged paragraphs

See Note 15 14 Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings.

Note 13: OPERATING SEGMENTS 21 changes

5 unchanged paragraphs

Three Months Ended June 30, Six Months Ended June 30,

Selling, general and administrative expenses 273,782 256,415 476,939 445,307

Three Months Ended September 30, Nine Months Ended September 30, (in thousands)

Selling, general and administrative expenses 264,535 244,168 741,473 689,475

1 unchanged paragraph

Selling, general and administrative expenses 54,674 64,279 103,025 122,939

Selling, general and administrative expenses 55,532 60,920 158,558 183,859

1 unchanged paragraph

Enterprise corporate costs $ ( 88,834 ) $ ( 79,927 ) $ ( 157,187 ) $ ( 153,839 )

Foreign currency (losses) gains, net ( 2,302 ) 434 ( 3,927 ) 5,307

Interest income 583 371 918 704

Interest expense ( 19,909 ) ( 22,523 ) ( 40,368 ) ( 45,289 )

Total segment income (loss) from operations

Reconciliation of segment income (loss) from operations to income (loss) before income taxes:

Enterprise corporate costs $ ( 80,441 ) $ ( 71,809 ) $ ( 237,628 ) $ ( 225,648 )

Foreign currency gains (losses), net 1,276 2,957 ( 2,651 ) 8,264

Interest income 3,343 531 4,261 1,235

Interest expense ( 19,059 ) ( 21,711 ) ( 59,427 ) ( 67,000 )

Other (expense) income, net ( 127 ) 627 ( 378 ) 152

2 unchanged paragraphs

HEYDUDE Brand 5,970 5,632 11,948 11,191

Enterprise corporate 3,951 4,003 7,889 7,815

HEYDUDE Brand 5,963 6,108 17,911 17,299

Enterprise corporate 3,963 3,949 11,852 11,764

2 unchanged paragraphs

Note 14: LEGAL PROCEEDINGS 1 change

3 unchanged paragraphs

For legal claims and disputes, we have accrued estimated losses of $ 0.7 0.6 million within Accrued expenses and other liabilities in the condensed consolidated balance sheet as of June September 30, 2026. As we are able, we estimate reasonably possible losses or a range of reasonably possible losses. As of June September 30, 2026, we estimated that reasonably possible losses associated with these claims and other disputes were an insignificant amount.

1 unchanged paragraph

MD&A 106 changes

3 unchanged paragraphs

We continue to operate in an environment where consumers are feeling the effects of elevated interest rates, inflation, and future expected price increases, among other things, and as a result, there is more pressure on discretionary spending. Given this, our wholesale partners are also acting cautiously. In addition, geopolitical tensions have remained elevated across the globe and are having an adverse impact on the global economy. Most recently, the conflict in the Middle East has caused, and may continue to cause, a reduction in our revenues for several of our distributor markets and an increase in the costs of raw materials and transportation associated with elevated oil prices. Furthermore, as of June September 30, 2026, the United States ( U.S. ) has imposed tariffs on foreign imports from multiple countries ranging from 10% to 12.5%, including countries most relevant to us a 10% tariff on all imports from such as Vietnam, China, Indonesia, India, and Cambodia. respectively. On February 20, 2026, the United States Supreme Court ruled the President did not have the requisite authority to impose tariffs under the International Emergency Economic Powers Act ( IEEPA ). On March 4, 2026, the Court of International Trade ordered U.S. Customs and Border Protection to begin the refund process for all importers who were subject to IEEPA duties. While the timing remains uncertain, we currently estimate that we are eligible to receive a total of approximately $70 $75 million to $80 million in refunds related to these tariffs, including interest. As of June 30, 2026, no refunds were realized or considered realizable; accordingly, no benefit has been recognized under the gain contingency model. Subsequent to June September 30, 2026, we received approximately $20 $67 million of IEEPA tariff refunds, The corresponding including interest. Of this amount, approximately $64 million of benefit is expected to be recognized recorded within Cost of sales and approximately $3 million of benefit is recorded within Interest income in the condensed consolidated statements of operations during the third quarter of 2026. Additionally, in July three months ended September 30, 2026. These refunds are non-recurring. The aforementioned 10% tariffs expired and were replaced with new tariffs ranging from 10% that remain in effect continue to 12.5%. increase our product costs. At this time, it remains unclear what additional actions, if any, will be taken by the U.S. or other governments with respect to international trade agreements, the imposition of additional tariffs on goods imported into the U.S., tax policy related to international commerce, increased export control, sanctions and investment restrictions, trade matters, war, or foreign policy in general. We are continuing to monitor developments with respect to these policy changes and proposals.

We continue to prioritize make progress on our long-term strategic initiatives, including prioritizing growth in North America for both brands. while making progress on our long-term strategic initiatives. Specifically for the Crocs Brand, we believe this will be driven by product innovation, diversification within key product categories, including growth within our sandals business, and ultimately prioritizing stricter segmentation and pricing discipline across the marketplace. For the HEYDUDE Brand, we are focused on our core consumer, refining our product offering within the slip-on category, and refreshing the marketplace. For both brands, scaling digital capabilities continues to be a priority.

Our liquidity position remains strong with $170.3 $163.5 million in cash and cash equivalents and $880.4 $901.4 million in available borrowing capacity as of June September 30, 2026. Our total borrowings were $1.3 billion as of June September 30, 2026. We repurchased $250.6 $250.0 million of our common stock during the quarter.

7 unchanged paragraphs

There were no asset impairments compared to $738.1 million in the second quarter of 2025, primarily driven by the partial impairment in the prior year of the HEYDUDE indefinite-lived trademark and HEYDUDE Brand reporting unit goodwill. Refer to Note 3 Goodwill and Intangible Assets, Net in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statements of this Quarterly Report on Form 10-Q.

Income from operations increased to $285.7 million from a loss from operations of $427.5 million in last year s second quarter. The increase is driven primarily by asset impairments that did not recur in the current year, as described above. Net income was $204.9 million, or $4.13 per diluted share, compared to a net loss of $492.3 million, or a net loss per diluted share of $8.82, in last year s second quarter.

Second Third Quarter 2026 Financial and Operational Highlights

Revenues were $1,179.5 $1,042.6 million for the second third quarter of 2026, a 2.6% 4.6% increase compared to the second third quarter of 2025. The increase was due to the net effects of: (i) higher unit sales volume in both brands, which resulted in an increase in revenues of $37.6 million, or 3.8%; (ii) higher average selling price on a constant currency basis ( ASP ) driven by both brands, which increased revenues by $37.9 million, or 3.3%; (ii) lower unit sales volume in the HEYDUDE Brand, partially offset by higher unit sales volume in the Crocs Brand, which resulted in a decrease in increased revenues of $14.1 by $9.0 million, or 1.2%; 0.9%; and (iii) net changes in exchange rates, which increased revenues by $6.3 million, or 0.6%. were approximately flat.

The following were significant developments affecting our businesses and capital structure during the three months ended June September 30, 2026:

Crocs Brand revenues increased by 4.3%, or 3.7% 4.4% on a reported and constant currency basis, compared to the same period in 2025. HEYDUDE Brand revenues decreased 5.7%, increased 6.1%, or 5.8% 6.2% on a constant currency basis, compared to the same period in 2025.

Gross margin was 59.4%, a decrease 66.2%, an increase of 230 770 basis points from last year s second third quarter, primarily due to unfavorable IEEPA refunds and lower duties for both brands. as a result of the aforementioned incremental tariffs. Unfavorable product Favorable channel mix and lower product costs in the Crocs Brand also contributed to the decrease, increase, partially offset by lower unfavorable product costs mix in the Crocs Brand.

Selling, general and administrative expenses ( SG&A ) were $415.0 $397.8 million compared to $398.2 $375.3 million in the second third quarter of 2025, primarily due to higher costs in the direct-to-consumer ( DTC ) channel, including investments in the channel driven by the Crocs Brand. partially offset by reduced Higher compensation and marketing costs for the HEYDUDE Crocs Brand also contributed to the increase. As a percent of revenues, SG&A increased to 35.2% 38.2% of revenues compared to 34.6% 37.7% of revenues in the second third quarter of 2025.

Income from operations increased to $291.9 million from $207.7 million in last year s third quarter. Net income was $216.8 million, or $4.52 per diluted share, compared to $145.8 million, or $2.70 per diluted share, in last year s third quarter.

1 unchanged paragraph

Three Months Ended June 30, Six Months Ended June 30, % Change

Three Months Ended September 30, Nine Months Ended September 30, % Change

3 unchanged paragraphs

Income (loss) from operations

Foreign currency (losses) gains, net

Income from operations

Foreign currency gains (losses), net

3 unchanged paragraphs

59.4 % 61.7 % 58.2 % 59.9 % (230) bp (170) bp

66.2 % 58.5 % 60.9 % 59.5 % 770 bp 140 bp

1 unchanged paragraph

24.2 % (37.2) % 23.2 % (9.8) % 6,140 bp 3,300 bp

28.0 % 20.8 % 24.8 % 0.1 % 720 bp 2,470 bp

1 unchanged paragraph

Three Months Ended June September 30, Six Nine Months Ended June September 30, % Change Constant Currency % Change (1)

1 unchanged paragraph

Wholesale $ 441,499 $ 464,679 $ 887,321 $ 941,484 (5.0) % (5.8) % (5.4) % (7.4) %

Direct-to-consumer 558,938 494,911 880,532 779,715 12.9 % 12.9 % 12.0 % 11.5 %

Total Crocs Brand 1,000,437 959,590 1,767,853 1,721,199 4.3 % 2.7 % 3.7 % 1.2 %

Wholesale 82,564 99,760 165,966 210,453 (17.2) % (21.1) % (17.4) % (21.8) %

Direct-to-consumer 96,467 90,023 167,106 155,054 7.2 % 7.8 % 7.1 % 7.7 %

Total HEYDUDE Brand 179,031 189,783 333,072 365,507 (5.7) % (8.9) % (5.8) % (9.4) %

Wholesale $ 362,365 $ 364,356 $ 1,249,686 $ 1,305,839 (0.5) % (4.3) % (0.4) % (5.5) %

Direct-to-consumer 510,356 471,873 1,390,888 1,251,588 8.2 % 11.1 % 8.2 % 10.2 %

Total Crocs Brand 872,721 836,229 2,640,574 2,557,427 4.4 % 3.3 % 4.4 % 2.3 %

Wholesale 79,087 69,402 245,053 279,855 14.0 % (12.4) % 14.1 % (12.9) %

Direct-to-consumer 90,775 90,670 257,881 245,725 0.1 % 4.9 % 0.2 % 4.9 %

Total HEYDUDE Brand 169,862 160,072 502,934 525,580 6.1 % (4.3) % 6.2 % (4.6) %

Total consolidated revenues $ 1,179,468 1,042,583 $ 1,149,373 996,301 $ 2,100,925 3,143,508 $ 2,086,706 2.6 % 0.7 3,083,007 4.6 % 2.0 % (0.6) 4.6 % 1.1 % (1) Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures above for more information.

Revenues. In the three months ended June September 30, 2026, revenues increased compared to the same period in 2025, primarily due to higher ASP unit sales volume of $37.9 $37.6 million, or 3.3%, 3.8%, driven by favorable channel mix both brands and higher ASP of $9.0 million, or 0.9%, driven by increased pricing in both brands and favorable channel mix in the Crocs Brand, partially offset by unfavorable channel mix in the HEYDUDE Brand and unfavorable product mix in both brands. Net foreign currency fluctuations also increased revenues by $6.3 million, or 0.6%, primarily due to favorable fluctuations in the Chinese Yuan, partially offset by unfavorable fluctuations in the South Korean Won. The overall increase in revenues was partially offset by lower volume of $14.1 million, or 1.2%, driven by the HEYDUDE Brand. were approximately flat.

Revenues also increased in the six nine months ended June September 30, 2026, primarily due to higher ASP of $72.4 $89.3 million, or 3.5%, 2.9%, driven by favorable channel mix and increased pricing in both brands, partially offset by unfavorable product mix in both brands. Net foreign currency fluctuations also increased revenues by $28.0 $27.7 million, or 1.3%, 0.9%, primarily due to favorable fluctuations in the Euro and Chinese Yuan and Euro, partially offset by unfavorable fluctuations in the South Korean Won, Indian Rupee, and Japanese Yen. The overall increase in revenues was partially offset by lower unit sales volume of $86.2 $56.5 million, or 4.1%, 1.8%, driven by both brands.

Gross margin. Gross margin decreased increased in the three months ended June September 30, 2026, to 59.4% 66.2% compared to 61.7% 58.5% in the same period in 2025, primarily due to incremental IEEPA refunds of 630 basis points, lower duties of 170 130 basis points, favorable channel mix of 70 basis points, and unfavorable lower product and customer mix costs in the Crocs Brand of 100 40 basis points, partially offset by lower unfavorable product costs mix in the Crocs Brand of 100 130 basis points.

Gross margin in the six nine months ended June September 30, 2026, was 58.2% 60.9% compared to 59.9% 59.5% in 2025. This was primarily driven by incremental duties IEEPA refunds of 130 210 basis points, favorable channel mix of 50 basis points, and unfavorable lower product and customer mix costs in the Crocs Brand of 110 50 basis points, partially offset by lower unfavorable product costs mix in the Crocs Brand of 80 110 basis points and incremental duties of 40 basis points.

Selling, general and administrative expenses. SG&A increased $16.8 $22.5 million, or 4.2%, 6.0%, during the three months ended June September 30, 2026, compared to the same period in 2025, primarily due to higher DTC costs of $12.2 $9.2 million, driven by increased share of marketplaces and rent expense as a result of investments in the channel. Increased compensation costs of $5.6 $3.7 million, increased variable marketing costs driven by the Crocs Brand of $3.7 million, and other net increases in other costs of $6.5 $5.9 million also contributed to the increase. The overall increase in SG&A was partially offset by reduced marketing costs of $7.5 million, driven by the HEYDUDE Brand as part of our previously announced cost savings initiatives.

SG&A expenses increased $17.0 $39.5 million, or 2.4%, 3.6%, during the six nine months ended June September 30, 2026, compared to the same period in 2025, primarily due to higher DTC costs of $20.2 $29.4 million, driven by increased share of marketplaces and rent expense as a result of investments in the channel. Increased compensation costs of $6.2 $9.8 million and other net increases in other costs of $3.3 $9.3 million also contributed to the increase. The overall increase in SG&A was partially offset by reduced marketing costs of $12.7 $9.0 million, driven by the HEYDUDE Brand as part of our previously announced cost savings initiatives.

Goodwill and Asset impairments. In the three months ended June September 30, 2026, and 2025, there were no impairments. During the six nine months ended June September 30, 2026, there were impairment charges of $3.3 million related to HEYDUDE leasehold improvement assets. Impairments were $738.1 million during the three and six nine months ended June September 30, 2025, primarily due to non-cash impairment charges of $430.0 million related to the indefinite-lived HEYDUDE trademark and $307.0 million for HEYDUDE Brand reporting unit goodwill. For additional information, refer to Note 3 Goodwill and Intangible Assets, Net in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statements of this Quarterly Report on Form 10-Q.

Foreign currency (losses) gains (losses), net. Foreign currency (losses) gains (losses), net, consist of realized and unrealized foreign currency gains and losses from the remeasurement and settlement of monetary assets and liabilities denominated in non-functional currencies as well as realized and unrealized gains and losses on foreign currency derivative instruments. During the three months ended June September 30, 2026, we recognized realized and unrealized net foreign currency losses gains of $2.3 $1.3 million compared to gains of $0.4 $3.0 million during the three months ended June September 30, 2025.

During the six nine months ended June September 30, 2026, we recognized realized and unrealized net foreign currency losses of $3.9 $2.7 million compared to gains of $5.3 $8.3 million during the six nine months ended June September 30, 2025.

Interest Income. Interest income during the three months ended September 30, 2026, increased $2.8 million compared to the three months ended September 30, 2025. Interest income during the nine months ended September 30, 2026, increased $3.0 million compared to the nine months ended September 30, 2025. The increase in interest income for the three and nine months ended September 30, 2026, was due to interest on IEEPA tariff refunds received during the three months ended September 30, 2026 that were not present in the prior year.

Interest expense. Interest expense during the three months ended June September 30, 2026, decreased $2.6 $2.7 million, or 11.6%, 12.2%, compared to the three months ended June September 30, 2025. Interest expense during the six nine months ended June September 30, 2026, decreased $4.9 $7.6 million, or 10.9%, 11.3%, compared to the six nine months ended June September 30, 2025. The decrease in interest expense for the three and six nine months ended June September 30, 2026, was due to lower outstanding borrowings on the Revolving Facility (as defined herein) and lower weighted average interest rates on the Term Loan B Facility (as defined herein) and the Revolving Facility (as defined herein) in the current year.

Income tax expense. During the three months ended June September 30, 2026, income tax expense increased $15.4 $17.1 million compared to the same period in 2025. The effective tax rate for the three months ended June September 30, 2026, was 22.4% 21.9% compared to an effective tax rate of (9.7)% 23.0% for the same period in 2025. The change in the effective tax rate was the result of quarterly tax expense compared to the impact of the income (loss) before income taxes related to the impairments of the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill in the three months ended June 30, 2025. As a result of a prior year intra-entity transaction, shift in the value mix of the intellectual property for tax purposes is subject to revaluation our domestic and therefore there are not similar impacts for tax as a result of the intellectual property impairment. foreign earnings. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate due to differences in income tax rates between U.S. and foreign jurisdictions.

During the six nine months ended June September 30, 2026, income tax expense increased $11.8 $28.9 million compared to the same period in 2025. The effective tax rate for the six nine months ended June September 30, 2026, was 22.7% 22.4% compared to an effective tax rate of (36.3)% (243.6)% for the same period in 2025. The change in the effective tax rate was the result of year-to-date tax expense compared to the impact of the income (loss) before income taxes related to the impairments of the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill in the six nine months ended June September 30, 2025. As a result of a prior year intra-entity transaction, the value of the intellectual property for tax purposes is subject to revaluation and therefore there are not similar impacts for tax as a result of the intellectual property impairment. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate due to differences in income tax rates between U.S. and foreign jurisdictions.

2 unchanged paragraphs

Three Months Ended June September 30, Six Nine Months Ended June September 30, % Change Constant Currency

2 unchanged paragraphs

HEYDUDE Brand revenues 179,031 189,783 333,072 365,507 (5.7) % (8.9) % (5.8) % (9.4) %

HEYDUDE Brand revenues 169,862 160,072 502,934 525,580 6.1 % (4.3) % 6.2 % (4.6) %

1 unchanged paragraph

Income (loss) from operations:

Income from operations:

2 unchanged paragraphs

Total consolidated income (loss) from operations

$ 285,678 291,927 $ (427,516) 207,660 $ 486,522 778,449 $ (204,542) 166.8 3,118 40.6 % 337.9 24,866.3 % 166.8 41.9 % 342.4 24,661.0 % (1) Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures for more information.

Revenues. Crocs Brand revenues increased in the three months ended June September 30, 2026, compared to the same period in 2025, primarily due to higher unit sales volume. Higher ASP, driven by favorable channel mix and price increases in international markets and favorable channel mix, partially offset by unfavorable product mix, Higher volume and net foreign currency fluctuations also increased revenues, primarily due contributed to favorable fluctuations in the Chinese Yuan, partially offset by unfavorable increase. Net foreign currency fluctuations in the South Korean Won. were approximately flat.

The increase in Crocs Brand revenues in the six nine months ended June September 30, 2026, compared to the same period in 2025 is primarily due to higher ASP, due to favorable channel mix and price increases in international markets, partially offset by unfavorable product mix. Net foreign currency fluctuations also increased revenues, primarily due to favorable fluctuations in the Euro and Chinese Yuan and Euro, partially offset by unfavorable fluctuations in the South Korean Won, Indian Rupee, and Japanese Yen. The overall increase was partially offset by lower unit sales volume.

Income from Operations. Income from operations for our Crocs Brand segment was $352.1 $334.3 million for the three months ended June September 30, 2026, a decrease an increase of $6.3 $61.6 million, or 1.8%, 22.6%, compared to the same period in 2025. Gross margin was 62.6%, a decrease 68.6%, an increase of 150 680 basis points, primarily due to incremental IEEPA refunds, lower duties, favorable channel mix, and unfavorable lower product mix, costs, partially offset by lower unfavorable product costs. mix.

SG&A for our Crocs Brand segment increased $17.4 $20.4 million, or 6.8%, 8.3%, during the three months ended June September 30, 2026, compared to the same period in 2025. This increase was primarily due to higher costs in the DTC channel, driven by increased share of marketplaces and rent expense as a result of investments in the channel. Higher marketing and compensation costs also contributed to the increase.

During the six nine months ended June September 30, 2026, income from operations for our Crocs Brand was $605.2 $939.6 million, a decrease an increase of $26.8 $34.9 million, or 4.2%, 3.9%, compared to the same period in 2025. Gross margin was 61.2%, a decrease 63.7%, an increase of 140 basis points, primarily due to incremental duties IEEPA refunds, favorable channel mix, and unfavorable lower product mix, costs, partially offset by lower unfavorable product costs. mix and incremental duties.

SG&A for our Crocs Brand increased $31.6 $52.0 million, or 7.1%, 7.5%, during the six nine months ended June September 30, 2026, compared to the same period in 2025, primarily due to higher costs in the DTC channel, driven by increased share of marketplaces and rent expense as a result of investments in the channel. Compensation and Higher marketing and compensation costs also contributed to the increase.

Revenues. For the three months ended June September 30, 2026, HEYDUDE Brand revenues decreased increased compared to the same period in 2025, primarily due to lower higher unit sales volume. The overall decrease increase in revenues was partially offset by higher lower ASP, primarily due to favorable unfavorable channel mix and reduced discounting, product mix, partially offset by unfavorable product mix. reduced discounting.

During the six nine months ended June September 30, 2026, revenues decreased compared to the same period in 2025, primarily due to lower unit sales volume. The overall decrease in revenues was partially offset by higher ASP, primarily due to reduced discounting and favorable channel mix, and reduced discounting, partially offset by unfavorable product mix.

Income from Operations. Income from operations for the HEYDUDE Brand segment was $22.4 $38.0 million for the three months ended June September 30, 2026, an increase of $728.4 $31.3 million, compared to the same period in 2025. Gross margin was 43.1%, a decrease 55.1%, an increase of 710 1,280 basis points, primarily due to incremental duties and unfavorable channel IEEPA refunds and product mix. lower duties.

SG&A, including impairments, for the HEYDUDE Brand segment decreased $746.6 $5.4 million, or 93.2%, 8.8%, during the three months ended June September 30, 2026, compared to the same period in 2025. This decrease was primarily due to the partial impairment of the indefinite-lived HEYDUDE trademark reduced compensation costs and HEYDUDE Brand reporting unit goodwill in the second quarter of 2025, that did not recur in the current year. reduced marketing costs, for both primarily in fixed and variable marketing. also contributed to the decrease.

Income from operations for the HEYDUDE Brand was $38.5 $76.5 million for the six nine months ended June September 30, 2026, an increase of $721.2 $752.4 million, compared to the same period in 2025. Gross margin was 43.5%, a decrease 47.4%, an increase of 500 80 basis points, primarily due to unfavorable product mix, incremental duties, IEEPA refunds and unfavorable channel mix, higher ASP, partially offset by higher ASP. unfavorable product mix.

SG&A, including impairments, for the HEYDUDE Brand decreased $753.6 $759.0 million, or 87.6%, 82.4%, during the six nine months ended June September 30, 2026, compared to the same period in 2025. This decrease was primarily due to the partial impairment of the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill in the second quarter of 2025, that did not recur in the current year, Reduced costs for both fixed and variable marketing also contributed to the decrease. The overall decrease was partially offset by current year impairment charges related to HEYDUDE leasehold improvement assets. Reduced costs for both fixed and variable marketing also contributed to the decrease.

1 unchanged paragraph

During the three months ended June September 30, 2026, total net costs within Enterprise corporate increased $8.9 $8.6 million, or 11.1%, 12.0%, compared to the same period in 2025. This was primarily due to increased compensation costs and other corporate costs. These increases were partially offset by decreases resulting from our cost savings initiatives.

During the six nine months ended June September 30, 2026, total net costs within Enterprise corporate increased $3.3 $12.0 million, or 2.2%, 5.3%, compared to the same period in 2025. This was primarily due to increased compensation costs and other corporate costs. These increases were partially offset by decreases resulting from our cost savings initiatives.

As of June September 30, 2026, we had 484 500 company-operated retail locations for the Crocs Brand, inclusive of 207 208 retail locations in North America and 277 292 retail locations internationally. As of June September 30, 2026, we had 75 78 company-operated retail locations for the HEYDUDE Brand. As of June September 30, 2025, we had 412 427 company-operated retail locations for the Crocs Brand, inclusive of 191 199 retail locations in North America and 221 228 retail locations internationally. As of June September 30, 2025, we had 63 75 company-operated retail locations for the HEYDUDE Brand.

1 unchanged paragraph

Available borrowings 880,416

Our liquidity position as of June September 30, 2026, was:

Cash and cash equivalents $ 170,276 163,457

Available borrowings 901,416

As of September 30, 2026, we had $163.5 million in cash and cash equivalents, $1.3 billion of outstanding borrowings, and up to $901.4 million of available borrowings on our credit facilities as further discussed in Note 7 Borrowings in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statements of this Quarterly Report on Form 10-Q.

As of June 30, 2026, We had $170.3 million in cash and cash equivalents and up to $880.4 million of available borrowings, including $865.4 million of remaining borrowing availability under the Revolving Facility (as defined below) and $15.0 million of remaining borrowing availability under the Citibank Facility (as defined below). As of June 30, 2026, the Term Loan B Facility (as defined below) was fully drawn and there was no available borrowing capacity. We believe that cash flows from operations, our cash and cash equivalents on hand, and available borrowings under our Revolving Facility will be sufficient to meet our ongoing liquidity needs and capital expenditure requirements for at least the next twelve months. On July 27, 2026, the Board approved a $1.5 billion increase to our share repurchase authorization, after which approximately $2.0 billion remained available for future common stock repurchases.

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Certain of our debt agreements contain covenants that, among other things, limit the ability of the Company and its restricted subsidiaries to incur additional debt or issue certain preferred stock; pay dividends or repurchase or redeem capital stock or make other restricted payments; declare or pay dividends or other payments; incur liens; enter into certain types of transactions with the Company s affiliates; and consolidate or merge with or into other companies. As of September 30, 2026, we were in compliance with all financial covenants under our existing debt agreements.

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Senior Revolving Credit Facility

In July 2019, the Company and certain of its subsidiaries (the Borrowers ) entered into a Second Amended and Restated Credit Agreement (as amended, the Credit Agreement ), with the lenders named therein and PNC Bank, National Association, as a lender and administrative agent for the lenders. Since that time, we have amended the Credit Agreement, which, as amended to date, provides for a revolving credit facility of $1.0 billion, which can be increased by an additional $400.0 million subject to certain conditions (the Revolving Facility ). Borrowings under the Credit Agreement bear interest at a variable interest rate based on (A) a Base Rate (defined as the highest of (i) the Overnight Bank Funding Rate (as defined in the Credit Agreement), plus 0.25%, (ii) the Prime Rate (as defined in the Credit Agreement), and (iii) the Daily Simple SOFR (as defined in the Credit Agreement), plus 1.00%), plus an applicable margin ranging from 0.25% to 0.875% based on our leverage ratio or 1.35% to 1.975% for the Daily Simple SOFR based on the leverage ratio, inclusive of a 0.10% SOFR adjustment, or (B) the Term SOFR Rate (as defined in the Credit Agreement), plus an applicable margin ranging from 1.35% to 1.975% based on our leverage ratio for one-month interest periods and three-month interest periods, inclusive of a 0.10% SOFR adjustment. Borrowings under the Credit Agreement are secured by all of the assets of the Borrowers and guaranteed by certain other subsidiaries of the Borrowers.

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and 26 more changes in the filing

Market risk 8 changes

We centrally manage our debt and investment portfolios considering investment opportunities and risks, tax consequences, and overall financing strategies. Our exposure to market risk includes interest rate fluctuations in connection with our Revolving Facility credit facilities and certain financial instruments.

Borrowings under our Term Loan B Facility and Revolving Facility, both further described in Note 7 Borrowings in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statements of this Quarterly Report on Form 10-Q, bear interest at a variable rate and are therefore subject to risk based upon prevailing market interest rates. Interest rates fluctuate as a result of many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, and other factors that are beyond our control.

As of June September 30, 2026, we had borrowings with a face value of $1.3 billion, comprised of the Notes, which carry a fixed rate, the Term Loan B Facility, and borrowings under our Revolving Facility. We also had $0.6 million in outstanding letters of credit under our Revolving Facility as of June September 30, 2026. As of December 31, 2025, we had long-term borrowings with a face value of $1.3 billion and $0.6 million in outstanding letters of credit under our Revolving Facility.

A hypothetical increase of 1% in the interest rate on the variable rate borrowings under our Term Loan B Facility and Revolving Facility would increase our interest expense over the next twelve months by $6.3 $6.1 million based on the balances outstanding for these borrowings as of June September 30, 2026.

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An increase of 1% of the value of the U.S. Dollar relative to foreign currencies when translating our financial results would have decreased our revenues and income before taxes during the three months ended June September 30, 2026, by $5.9 $4.6 million and $1.0 $1.6 million, respectively. During the six nine months ended June September 30, 2026, an increase of 1% of the value of the U.S. Dollar relative to foreign currencies would have decreased our revenues and income before taxes by $10.5 $15.3 million and $2.9 $4.5 million, respectively. This analysis does not account for transactional fluctuations in accounts, such as those driven by purchasing power, which is defined as purchasing foreign goods in the U.S. Dollar but recognizing the cost in foreign currencies. The volatility of the exchange rates is dependent on many factors that cannot be forecasted with reliable accuracy.

In order to manage exposure to fluctuations in foreign currency and to reduce the volatility in earnings caused by fluctuations in foreign exchange rates, we may enter into forward foreign exchange contracts to buy or sell various foreign currencies. Changes in the fair value of these forward contracts are recognized in earnings in the period that the changes occur or in the period in which the hedged transaction affects earnings for derivatives classified as non-hedged or hedged, respectively, as defined in Note 7 6 Derivative Financial Instruments in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statements of this Quarterly Report on Form 10-Q. As of June September 30, 2026, the U.S. Dollar notional value of our total derivatives was $104.5 $34.5 million. The fair value of these contracts at June September 30, 2026, was an insignificant asset. liability.

We perform a sensitivity analysis to determine the effects that market risk exposures may have on the fair values of our foreign currency forward exchange contracts. To perform the sensitivity analysis, we assess the risk of changes in fair values from the effect of hypothetical changes in foreign currency exchange rates. This analysis assumes a like movement by the foreign currencies in our hedge portfolio against the U.S. Dollar. As of June September 30, 2026, a 10% appreciation in the value of the U.S. Dollar would result in a net increase in the fair value of our derivative portfolio of $8.3 $3.2 million.

See Part I - Item 2. Management s Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q for a discussion of the impact of the change in foreign exchange rates on our U.S. Dollar condensed consolidated statements of operations for the three and six nine months ended June September 30, 2026, and 2025.

Controls and procedures 2 changes

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Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures as such item is defined under Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended ( Exchange Act ) as of June September 30, 2026. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June September 30, 2026, to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management necessarily applies its judgment in assessing the costs and benefits of such controls and procedures that, by their nature, can only provide reasonable assurance regarding management s control objectives.

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There were no changes in our internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the three months ended June September 30, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Legal proceedings 1 change

A discussion of legal matters is found in Note 15 14 Legal Proceedings in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statements of this Quarterly Report on Form 10-Q.

Unregistered sales of stock 8 changes

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April 1 - 30, 2026 989,514 $ 98.41 989,514 $ 649,456,398

May 1 - 31, 2026 694,832 103.56 694,832 577,516,884

June 1 - 30, 2026 660,983 123.01 660,983 496,219,461

July 1 - 31, 2026 285,186 $ 130.49 285,186 $ 1,959,010,396

August 1 - 31, 2026 740,015 128.60 740,015 1,863,861,713

September 1 - 30, 2026 1,002,367 117.38 1,002,367 1,746,222,922

Three months ended June September 30, 2026

(1) On February 10, 2025, July 27, 2026, the Board approved an increase to our then-existing common stock repurchase authorization program up to approximately $1.3 $2.0 billion of our common stock. As of June September 30, 2026, approximately $496.2 million $1.7 billion remained available for repurchase under our share repurchase authorization. On July 27, 2026, the Board approved a $1.5 billion increase to our share repurchase authorization, after which approximately $2.0 billion remained available for future common stock repurchases. The number, price, structure, and timing of the repurchases, if any, will be at our sole discretion and future repurchases will be evaluated by us depending on market conditions, liquidity needs, restrictions under our debt arrangements, and other factors. Share repurchases may be made in the open market or in privately negotiated transactions. The repurchase authorization does not have an expiration date and does not oblige us to acquire any particular amount of our common stock. The Board may suspend, modify, or terminate the repurchase program at any time without prior notice.

Other information 8 changes

Except as shown below, during the three months ended June September 30, 2026, no other directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

Name and Position Action Date Rule 10b5-1* Non-Rule 10b5-1** Total Number of Shares to be Sold Expiration Date

Executive Vice President and Brand President for Crocs

Adopt 9/8/2026 X 7,276 6/8/2027

Ronald Frasch , Director

Adopt 9/9/2026 X 24,000 9/30/2027

* Intended to satisfy the affirmative defense of Rule 10b5-1(c).

** Not intended to satisfy the affirmative defense of Rule 10b5-1(c).

Exhibits 3 changes

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10.1* Crocs, Inc. 2026 Equity Incentive Plan (incorporated her ein by refer ence to Ex hibit 10.1 to Crocs, Inc . s C urrent Report on Form 8 -K, filed on June 10, 2026).

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* Compensatory plan or arrangement.

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Date: July 30, October 29, 2026 By: /s/ Patraic Reagan

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