{"success":true,"data":{"pressRelease":{"id":"7451","rtpr_id":"nBw4WTyZna","ticker":"KN","exchange":"NYSE","all_tickers":["KN"],"title":"Knowles Reports Q1 2026 Financial Results and Provides Outlook for Q2 2026","author":"Business Wire","published_at":"2026-04-23T20:05:00.572Z","article_body":"Knowles Reports Q1 2026 Financial Results and Provides Outlook for Q2 2026\n\nQ1 Revenues Increased 16% on a Year over Year Basis to $153 million\n\nQ1 Diluted EPS from Continuing Operations increased $0.13 on a Year over Year\nBasis\n\nQ1 Non-GAAP Diluted EPS from Continuing Operations Increased 50% on a Year\nover Year Basis to $0.27\n\nKnowles Corporation (NYSE: KN), a leading manufacturer of specialty electronic\ncomponents, including high performance capacitors, radio frequency (\"RF\")\nfilters, advanced medtech microphones, and balanced armature speakers, today\nannounced results for the quarter ended March 31, 2026.\n\n“We started 2026 delivering strong first quarter revenues and non-GAAP\ndiluted EPS which was at or above the high-end of our guided ranges,”\ncommented Jeffrey Niew, President and CEO of Knowles.\n\nMr. Niew continued, “We are executing on our strategy, continuing to\nleverage our unique technologies, creating custom products through our\ncustomer application intimacy, and then scaling into production with our\nworld-class operational capabilities. Our end markets of Medtech, Defense,\nIndustrial and Electrification are also benefiting from strong secular growth\ntrends. With this powerful combination, our revenue grew 16% on a\nyear-over-year basis in the first quarter, exceeding our five-year annual\norganic growth target. Our revenue growth was complemented by substantial\ngross margin expansion resulting in significant year-over-year EPS growth.”\n\n“We have numerous new design wins ramping across multiple end markets and a\nvery healthy backlog of existing orders, positioning us well to continue to\ndeliver year over year organic revenue and adjusted EBITDA growth in 2026\nabove the high-end of our annual growth targets as presented in our May 2025\ninvestor day,” stated Mr. Niew.\n\nFinancial Highlights\n\nThe following table highlights the Company’s financial performance on both a\nGAAP and supplemental non-GAAP basis for continuing operations* with the\nexception of Net cash provided by operating activities (in millions, except\nper share data):\n   Q1-26 Q4-25 Q1-25 \n Revenues $153.1 $162.2 $132.2 \n Gross profit $67.1 $72.5 $53.3 \n (as a % of revenues) 43.8% 44.7% 40.3% \n Non-GAAP gross profit $69.7 $73.5 $55.0 \n (as a % of revenues) 45.5% 45.3% 41.6% \n Diluted earnings per share** $0.13 $0.29 $— \n Non-GAAP diluted earnings per share $0.27 $0.36 $0.18 \n Net cash (used in) provided by operating activities $(0.7) $47.2 $1.3 \n * Continuing operations excludes the results of the Consumer MEMS Microphones \n reporting business, which was divested in December 2024. \n ** Current period results include $0.10 per share in stock-based compensation \n expense, $0.04 per share in intangibles amortization expense, $0.01 per share \n in production transfer costs, and $0.03 for other adjustments, partially \n offset by $0.04 for differences related to the GAAP effective tax rate \n excluded from non-GAAP results. \n\n\nSecond Quarter 2026 Outlook\n\nThe forward looking guidance for the quarter ending June 30, 2026 on a\ncontinuing operations basis, with the exception of Net cash provided by\noperating activities, is as follows:\n   GAAP Adjustments Non-GAAP \n Revenues from continuing operations $152 to $162 million — $152 to $162 million \n Diluted earnings per share from continuing operations $0.18 to $0.22 $0.10 $0.28 to $0.32 \n Net cash provided by operating activities $20 to $30 million — $20 to $30 million \n\n\nQ2 2026 GAAP results from continuing operations are expected to include\napproximately $0.06 per share in stock-based compensation expense and $0.04\nper share in intangibles amortization expense. These items are excluded from\nnon-GAAP results.\n\nNon-GAAP Financial Measures\n\nIn addition to the GAAP results included in this press release, Knowles has\npresented supplemental non-GAAP gross profit, earnings before interest and\nincome taxes, adjusted earnings before interest and income taxes, non-GAAP\ndiluted earnings per share, free cash flow, as well as other metrics on a\nnon-GAAP basis that exclude certain amounts that are included in the most\ndirectly comparable GAAP measure to facilitate evaluation of Knowles’\noperating performance. Non-GAAP results are not presented in accordance with\nGAAP. Non-GAAP information should be considered a supplement to, and not a\nsubstitute for, financial statements prepared in accordance with GAAP. In\naddition, the non-GAAP financial measures included in this press release do\nnot have standard meanings and may vary from similarly titled non-GAAP\nfinancial measures used by other companies. Knowles believes that non-GAAP\nmeasures are useful as supplements to its GAAP results of operations to\nevaluate certain aspects of its operations and financial performance, and its\nmanagement team primarily focuses on non-GAAP items in evaluating Knowles’\nperformance for business planning purposes. Knowles also believes that these\nmeasures assist it with comparing its performance between various reporting\nperiods on a consistent basis, as these measures remove from operating results\nthe impact of items that, in Knowles’ opinion, do not reflect its core\noperating performance including, for example, stock-based compensation,\ncertain intangibles amortization expense, impairment charges, restructuring,\nproduction transfer costs, and other charges which management considers to be\noutside our core operating results. Knowles believes that its presentation of\nthese non-GAAP financial measures is useful because it provides investors and\nsecurities analysts with the same information that Knowles uses internally for\npurposes of assessing its core operating performance. For a reconciliation of\nthese non-GAAP financial measures to the most directly comparable GAAP\nfinancial measures, see the reconciliation table accompanying this release.\n\nWebcast and Conference Call Information\n\nInvestors can listen to a live or replay webcast of the Company’s quarterly\nfinancial conference call at http://investor.knowles.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestor.knowles.com&esheet=54520628&newsitemid=20260423536586&lan=en-US&anchor=http%3A%2F%2Finvestor.knowles.com&index=1&md5=988906eeba0da0c66cb71c44f669f1e4)\n. The live webcast will begin today at 3:30 p.m. Central time. The webcast\nreplay will be available after 7:00 p.m. Central time today.\n\nA conference call replay will be available after 7:00 p.m. Central time on\nApril 23 through 11:59 p.m. Central time on April 23 at (800) 770-2030\n(Toll-Free Dial-In); (609) 800-9909 (Toll Dial-In). The conference ID is\n8193117. A webcast replay will also be accessible via the Knowles website at\nhttp://investor.knowles.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestor.knowles.com&esheet=54520628&newsitemid=20260423536586&lan=en-US&anchor=http%3A%2F%2Finvestor.knowles.com&index=2&md5=cce6e8fcf8d3f918a6627a25825adb4b)\nfor a limited time.\n\nAbout Knowles\n\nKnowles is a leading manufacturer of specialty electronic components. We\ndesign parts that perform unique, critical functions for innovative\ntechnologies. Through extreme reliability, custom engineering, and scalable\nmanufacturing, we enable businesses to succeed in the most demanding\napplications across medtech, defense, and industrial markets.\n\nOur high-performance capacitors, RF microwave filters, advanced medtech\nmicrophones, balanced armature speakers, and miniaturization products enable\nand enhance the performance of technologies with the power to change, improve,\nand save lives. Founded in 1946 and headquartered in Itasca, Illinois, Knowles\nhas grown into a global organization with employees spanning 11 countries.\n\nFor more information, please visit knowles.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fknowles.com&esheet=54520628&newsitemid=20260423536586&lan=en-US&anchor=knowles.com&index=3&md5=5e7dd37870e485621d7816be2cfc1b82)\n.\n\nForward-Looking Statements\n\nThis news release contains forward-looking statements within the meaning of\nthe safe harbor provisions of the United States Private Securities Litigation\nReform Act of 1995, such as statements about our future plans, objectives,\nexpectations, financial performance, and continued business operations. The\nwords \"believe,\" \"expect,\" \"anticipate,\" \"project,\" \"estimate,\" \"budget,\"\n\"continue,\" \"could,\" \"intend,\" \"may,\" \"plan,\" \"potential,\" \"predict,\" \"seek,\"\n\"should,\" \"will,\" \"would,\" \"objective,\" \"forecast,\" \"goal,\" \"guidance,\"\n\"outlook,\" \"effort,\" \"target,\" and similar expressions, among others,\ngenerally identify forward-looking statements, which speak only as of the date\nthe statements were made. The statements in this presentation are based on\ncurrently available information and the current expectations, forecasts, and\nassumptions of Knowles’ management concerning risks and uncertainties that\ncould cause actual outcomes or results to differ materially from those\noutcomes or results that are projected, anticipated, or implied in these\nstatements. Other risks and uncertainties include, but are not limited to:\nfluctuations in our stock's market price; fluctuations in operating results\nand cash flows; our ability to prevent or identify quality issues in our\nproducts or to promptly remedy any such issues that are identified; risks\nassociated with increasing our inventories in advance of anticipated orders by\ncustomers; escalating international trade tensions, new or increased tariffs\nand trade wars among countries; the impact of changes to laws and regulations\nthat affect the Company’s ability to offer products or services to customers\nin different regions; our ability to achieve reductions in our operating\nexpenses; the ability to qualify our products and facilities with customers;\nour ability to obtain, enforce, defend or monetize our intellectual property\nrights; disruption caused by a cybersecurity incident, including a\ncyber-attack, cyber breach, theft, or other unauthorized access (the risk of\nwhich could be exacerbated by geopolitical tensions, including the conflict\nwith Iran); increases in the costs of critical raw materials and components;\navailability of raw materials and components; managing new product ramps and\nintroductions for our customers; our dependence on a limited number of large\ncustomers; our ability to maintain and expand our existing relationships with\nleading OEMs in order to maintain and increase our revenue; increasing\ncompetition and new entrants in the market for our products; our ability to\ndevelop new or enhanced products or technologies in a timely manner that\nachieve market acceptance; global economic instability, including due to\ninflation, rising interest rates, or the impacts of geopolitical uncertainties\n(including the impact of the conflict with Iran, which has disrupted maritime\ntraffic through the Strait of Hormuz, contributing to share increases in\nenergy prices); financial risks, including risks relating to currency\nfluctuations, credit risks and fluctuations in the market value of the\nCompany; a sustained decline in our stock price and market capitalization may\nresult in the impairment of certain intangible or long-lived assets; market\nrisk associated with fluctuations in commodity prices, particularly for\nvarious precious metals used in our manufacturing operation, changes in tax\nlaws, changes in tax rates and exposure to additional tax liabilities; and\nother risks, relevant factors, and uncertainties identified in our Annual\nReport on Form 10-K for the fiscal year ended December 31, 2025, subsequent\nReports on Forms 10-Q and 8-K and our other filings we make with the U.S.\nSecurities and Exchange Commission. Knowles disclaims any intention or\nobligation to update or revise any forward-looking statements, whether as a\nresult of new information, future events or otherwise, except as required by\nlaw.\n INVESTOR SUPPLEMENT - FIRST QUARTER 2026 \n \n \n \n  \n \n \n \nKNOWLES CORPORATION \n \n \n \nCONSOLIDATED STATEMENTS OF EARNINGS \n \n \n \n(in millions, except per share amounts) \n \n \n \n(unaudited) \n   \n   Quarter Ended \n March 31,   December 31,   Mar \n \n2026 \n2025 ch \n 31, \n \n \n 202 \n 5 \n Revenues $ 153.1     $ 162.2     $ 132.2   \n Cost of goods sold   85.9       89.6       78.4   \n Restructuring charges - cost of goods sold   0.1       0.1       0.5   \n Gross profit   67.1       72.5       53.3   \n Research and development expenses   11.7       10.5       9.7   \n Selling and administrative expenses   39.4       35.7       37.2   \n Restructuring charges   0.1       0.5       2.4   \n Operating expenses   51.2       46.7       49.3   \n Operating earnings   15.9       25.8       4.0   \n Interest expense, net   1.5       1.8       2.7   \n Dividend income   —       (6.2 )     —   \n Other expense, net   3.4       0.6       0.5   \n Earnings before income taxes and discontinued operations   11.0       29.6       0.8   \n (Benefit from) provision for income taxes   (0.3 )     4.1       1.2   \n Earnings (loss) from continuing operations   11.3       25.5       (0.4 ) \n Loss from discontinued operations, net   (1.6 )     (4.5 )     (1.6 ) \n Net earnings (loss) $ 9.7     $ 21.0     $ (2.0 ) \n             \n Earnings per share from continuing operations:           \n Basic $ 0.13     $ 0.30     $ —   \n Diluted $ 0.13     $ 0.29     $ —   \n             \n Loss per share from discontinued operations:           \n Basic $ (0.02 )   $ (0.05 )   $ (0.02 ) \n Diluted $ (0.02 )   $ (0.05 )   $ (0.02 ) \n             \n Net earnings (loss) per share:           \n Basic $ 0.11     $ 0.25     $ (0.02 ) \n Diluted $ 0.11     $ 0.24     $ (0.02 ) \n             \n Weighted-average common shares outstanding:           \n Basic   85.4       85.2       87.8   \n Diluted   87.7       87.5       87.8   \n\n KNOWLES CORPORATION \n \n \n \nRECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES ((1)) \n \n \n \n(in millions, except per share amounts) \n \n \n \n(unaudited) \n   \n   Quarter Ended \n   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Gross profit $ 67.1     $ 72.5     $ 53.3   \n Gross profit as % of revenues   43.8 %     44.7 %     40.3 % \n Stock-based compensation expense   0.5       0.4       0.5   \n Restructuring charges   0.1       0.1       0.5   \n Production transfer costs ((2))   0.9       0.7       0.1   \n Transition services credit ((3))   (0.3 )     (0.2 )     (0.2 ) \n Other ((4))   1.4       —       0.8   \n Non-GAAP gross profit $ 69.7     $ 73.5     $ 55.0   \n Non-GAAP gross profit as % of revenues   45.5 %     45.3 %     41.6 % \n Research and development expenses $ 11.7     $ 10.5     $ 9.7   \n Stock-based compensation expense   (1.5 )     (0.7 )     (1.1 ) \n Intangibles amortization expense   (0.6 )     (0.7 )     (0.5 ) \n Transition services credit ((3))   —       —       0.1   \n Other ((5))   —       0.2       —   \n Non-GAAP research and development expenses $ 9.6     $ 9.3     $ 8.2   \n Selling and administrative expenses $ 39.4     $ 35.7     $ 37.2   \n Stock-based compensation expense   (8.4 )     (4.9 )     (8.6 ) \n Intangibles amortization expense   (3.4 )     (3.4 )     (3.5 ) \n Production transfer costs ((2))   —       —       (0.1 ) \n Acquisition-related costs ((5))   —       (0.2 )     (0.5 ) \n Transition services credit ((3))   0.2       0.1       0.4   \n Non-GAAP selling and administrative expenses $ 27.8     $ 27.3     $ 24.9   \n Operating expenses $ 51.2     $ 46.7     $ 49.3   \n Stock-based compensation expense   (9.9 )     (5.6 )     (9.7 ) \n Intangibles amortization expense   (4.0 )     (4.1 )     (4.0 ) \n Restructuring charges   (0.1 )     (0.5 )     (2.4 ) \n Production transfer costs ((2))   —       —       (0.1 ) \n Acquisition-related costs ((5))   —       (0.2 )     (0.5 ) \n Transition services credit ((3))   0.2       0.1       0.5   \n Other ((4))   —       0.2       —   \n Non-GAAP operating expenses $ 37.4     $ 36.6     $ 33.1   \n Net earnings (loss) from continuing operations $ 11.3     $ 25.5     $ (0.4 ) \n Interest expense, net   1.5       1.8       2.7   \n (Benefit from) provision for income taxes   (0.3 )     4.1       1.2   \n Earnings from continuing operations before interest and income taxes   12.5       31.4       3.5   \n Earnings from continuing operations before interest and income taxes as % of   8.2 %     19.4 %     2.6 % \n revenues \n Stock-based compensation expense   10.4       6.0       10.2   \n Intangibles amortization expense   4.0       4.1       4.0   \n Restructuring charges   0.2       0.6       2.9   \n Production transfer costs ((2))   0.9       0.7       0.2   \n Acquisition-related costs ((5))   —       0.2       0.5   \n Transition services credit ((3))   (0.5 )     (0.3 )     (0.7 ) \n Dividend income ((6))   —       (6.2 )     —   \n Other ((4))   2.6       (0.3 )     1.1   \n Adjusted earnings from continuing operations before interest and income taxes $ 30.1     $ 36.2     $ 21.7   \n Adjusted earnings from continuing operations before interest and income taxes   19.7 %     22.3 %     16.4 % \n as % of revenues \n Net earnings (loss) from continuing operations $ 11.3     $ 25.5     $ (0.4 ) \n Interest expense, net   1.5       1.8       2.7   \n (Benefit from) provision for income taxes   (0.3 )     4.1       1.2   \n Earnings from continuing operations before interest and income taxes   12.5       31.4       3.5   \n Non-GAAP reconciling adjustments ((7))   17.6       4.8       18.2   \n Depreciation expense   5.2       5.1       5.0   \n Adjusted earnings from continuing operations before interest, income taxes, $ 35.3     $ 41.3     $ 26.7   \n depreciation, and amortization (\"Adjusted EBITDA\") \n Adjusted EBITDA as a % of revenues   23.1 %     25.5 %     20.2 % \n   Quarter Ended \n   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n (Benefit from) provision for income taxes $ (0.3 )   $ 4.1     $ 1.2   \n Income tax effects of non-GAAP reconciling adjustments ((8))   5.1       (1.1 )     1.6   \n Non-GAAP provision for income taxes $ 4.8     $ 3.0     $ 2.8   \n             \n Net earnings (loss) from continuing operations $ 11.3     $ 25.5     $ (0.4 ) \n Non-GAAP reconciling adjustments ((7))   17.6       4.8       18.2   \n Income tax effects of non-GAAP reconciling adjustments ((8))   5.1       (1.1 )     1.6   \n Non-GAAP net earnings $ 23.8     $ 31.4     $ 16.2   \n             \n Diluted earnings per share from continuing operations $ 0.13     $ 0.29     $ —   \n Earnings per share non-GAAP reconciling adjustment ((7) (8) (9))   0.14       0.07       0.18   \n Non-GAAP diluted earnings per share ((9)) $ 0.27     $ 0.36     $ 0.18   \n             \n Diluted average shares outstanding   87.7       87.5       87.8   \n Non-GAAP adjustment ((9) (10))   (0.4 )     (0.3 )     1.8   \n Non-GAAP diluted average shares outstanding ((9) (10))   87.3       87.2       89.6   \n\n Notes: \n ((1)) In addition to the GAAP financial measures included herein, Knowles has \n presented certain non-GAAP financial measures that exclude certain amounts \n that are included in the most directly comparable GAAP measures. Knowles \n believes that non-GAAP measures are useful as supplements to its GAAP results \n of operations to evaluate certain aspects of its operations and financial \n performance, and its management team primarily focuses on non-GAAP items in \n evaluating Knowles' performance for business planning purposes. Knowles also \n believes that these measures assist it with comparing its performance between \n various reporting periods on a consistent basis, as these measures remove from \n operating results the impact of items that, in Knowles' opinion, do not \n reflect its core operating performance. Knowles believes that its presentation \n of non-GAAP financial measures is useful because it provides investors and \n securities analysts with the same information that Knowles uses internally for \n purposes of assessing its core operating performance. \n ((2)) Production transfer costs represent duplicate costs incurred to migrate \n manufacturing to existing facilities. \n ((3)) Transition services represent amounts charged to Syntiant in connection with \n post-closing transition and separation costs. \n ((4)) Other expenses include certain foreign currency exchange rate adjustments and \n non-recurring professional service fees related to the execution of various \n reorganization projects. \n ((5)) These expenses include ongoing costs to facilitate integration of the Cornell \n Dubilier acquisition by the Precision Devices segment. \n ((6)) During the fourth quarter of 2025, the Company recorded a non-cash dividend on \n the Syntiant investment in the form of additional Series D-2 shares with a \n value of $6.2 million. \n ((7)) The non-GAAP reconciling adjustments include stock-based compensation expense, \n intangibles amortization expense, restructuring charges, production transfer \n costs, acquisition-related costs, and other expenses, partially offset by \n dividend income and a credit to transition services. \n ((8)) Income tax effects of non-GAAP reconciling adjustments are calculated using \n the applicable tax rates in the jurisdictions of the underlying adjustments. \n ((9)) In the third quarter of 2025, the Company modified its calculation method of \n non-GAAP diluted average shares outstanding to exclude the potential dilution \n impact from performance share units (\"PSUs\") as these equity awards have not \n yet been earned. Our PSUs are market-based awards and have fluctuated based on \n the Company's total shareholder return performance relative to the Russell \n 2000 during the measurement period. The calculation methodology change in \n non-GAAP diluted average shares outstanding had no impact on non-GAAP diluted \n earnings per share for the historical periods presented. \n ((10)) The number of shares used in the diluted average shares outstanding \n calculations on a non-GAAP basis excludes the impact of stock-based \n compensation expense expected to be incurred in future periods and not yet \n recognized in the financial statements, which would otherwise be assumed to be \n used to repurchase shares under the GAAP treasury stock method. Non-GAAP \n diluted average shares outstanding also excludes the impact of certain equity \n awards that are not yet earned. \n\n KNOWLES CORPORATION \n \n \n \nCONSOLIDATED BALANCE SHEETS \n \n \n \n(in millions, except share and per share amounts) \n \n \n \n(unaudited) \n   \n   March 31, 2026   December 31, 2025 \n Current assets:       \n Cash and cash equivalents $ 41.0     $ 54.2   \n Receivables, net of allowances of $—   109.2       102.8   \n Inventories   136.2       124.6   \n Prepaid and other current assets   11.0       9.8   \n Total current assets   297.4       291.4   \n Property, plant, and equipment, net   144.7       140.2   \n Goodwill   270.3       270.3   \n Intangible assets, net   137.1       141.1   \n Operating lease right-of-use assets   19.3       19.1   \n Investment in affiliate   83.4       83.4   \n Other assets and deferred charges   101.7       105.6   \n Total assets $ 1,053.9     $ 1,051.1   \n         \n Current liabilities:       \n Accounts payable $ 44.5     $ 42.9   \n Accrued compensation and employee benefits   19.3       29.7   \n Operating lease liabilities   4.6       4.1   \n Other accrued expenses   21.5       28.2   \n Federal and other taxes on income   1.0       1.0   \n Total current liabilities   90.9       105.9   \n Long-term debt   131.0       114.0   \n Deferred income taxes   1.1       1.1   \n Long-term operating lease liabilities   15.6       16.1   \n Other liabilities   35.1       38.2   \n Commitments and contingencies       \n Stockholders' equity:       \n Preferred stock - $0.01 par value; 10,000,000 shares authorized; none issued   —       —   \n Common stock - $0.01 par value; 400,000,000 shares authorized; 100,601,363 and   1.0       1.0   \n 85,560,660 shares issued and outstanding at March 31, 2026, respectively, and \n 99,651,892 and 84,887,498 shares issued and outstanding at December 31, 2025, \n respectively \n Treasury stock - at cost; 15,040,703 and 14,764,394 shares at March 31, 2026   (278.2 )     (270.7 ) \n and December 31, 2025, respectively \n Additional paid-in capital   1,738.8       1,739.6   \n Accumulated deficit   (559.7 )     (569.4 ) \n Accumulated other comprehensive loss   (121.7 )     (124.7 ) \n Total stockholders' equity   780.2       775.8   \n Total liabilities and stockholders' equity $ 1,053.9     $ 1,051.1   \n\n KNOWLES CORPORATION \n \n \n \nCONSOLIDATED STATEMENTS OF CASH FLOWS \n \n \n \n(in millions) \n \n \n \n(unaudited) \n   \n   Three Months Ended March 31, \n     2026       2025   \n Operating Activities       \n Net earnings (loss) $ 9.7     $ (2.0 ) \n Adjustments to reconcile net earnings (loss) to cash from operating \n activities: \n Stock-based compensation   10.4       10.2   \n Depreciation and amortization   9.2       9.0   \n Deferred income taxes   3.6       3.1   \n Non-cash interest expense and amortization of debt issuance costs   0.1       1.3   \n Loss on sale of business   —       1.6   \n Other, net   2.8       0.7   \n Changes in assets and liabilities (excluding effects of foreign exchange):       \n Receivables, net   (6.3 )     (3.1 ) \n Inventories   (11.1 )     (1.6 ) \n Prepaid and other current assets   (1.8 )     (0.6 ) \n Accounts payable   1.5       (19.3 ) \n Accrued compensation and employee benefits   (10.5 )     (11.1 ) \n Other accrued expenses   (5.1 )     1.9   \n Accrued taxes   (0.5 )     (2.6 ) \n Other non-current assets and non-current liabilities   (2.7 )     13.8   \n Net cash (used in) provided by operating activities   (0.7 )     1.3   \n         \n Investing Activities       \n Capital expenditures   (10.8 )     (4.0 ) \n Purchase of investments   —       (1.6 ) \n Proceeds from the sale of investments   —       1.6   \n Proceeds from seller loan repayment   —       0.5   \n Net cash used in investing activities   (10.8 )     (3.5 ) \n         \n Financing Activities       \n Borrowings under revolving credit facility   60.0       —   \n Payments under revolving credit facility   (43.0 )     (15.0 ) \n Tax on restricted stock and performance share unit vesting and stock option   (14.2 )     (6.7 ) \n exercises \n Repurchase of common stock   (7.5 )     (5.0 ) \n Proceeds from exercise of stock options   3.0       0.6   \n Payments of finance lease obligations   (0.1 )     (0.1 ) \n Net cash used in financing activities   (1.8 )     (26.2 ) \n         \n Effect of exchange rate changes on cash and cash equivalents   0.1       0.2   \n         \n Net decrease in cash and cash equivalents   (13.2 )     (28.2 ) \n Cash and cash equivalents at beginning of period   54.2       130.1   \n Cash and cash equivalents at end of period $ 41.0     $ 101.9   \n\n KNOWLES CORPORATION \n \n \n \nRECONCILIATION OF GAAP CASH FLOW MEASURES TO NON-GAAP CASH FLOW MEASURES ((1)) \n \n \n \n(in millions, except per share amounts) \n \n \n \n(unaudited) \n   \n   Quarter Ended \n   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Net cash (used in) provided by operating activities $ (0.7 )   $ 47.2     $ 1.3   \n Amounts utilized by discontinued operations   8.4       1.3       21.0   \n Non-GAAP net cash attributable to continuing operations   7.7       48.5       22.3   \n             \n Capital expenditures   (10.8 )     (15.3 )     (4.0 ) \n Amounts attributable to discontinued operations   —       —       —   \n Non-GAAP capital expenditures attributable to continuing operations   (10.8 )     (15.3 )     (4.0 ) \n             \n Non-GAAP net cash attributable to continuing operations   7.7       48.5       22.3   \n Non-GAAP capital expenditures attributable to continuing operations   (10.8 )     (15.3 )     (4.0 ) \n Adjusted free cash flow $ (3.1 )   $ 33.2     $ 18.3   \n Adjusted free cash flow as a % of revenues   (2.0 )%     20.5 %     13.8 % \n\n ((1)) In addition to measuring cash flow generation based on the operating, \n investing, and financing classifications included in the Consolidated \n Statement of Cash Flows, Knowles also measures adjusted free cash flow and \n adjusted free cash flow as a percentage of revenues. Adjusted free cash flow \n is defined as non-GAAP net cash attributable to continuing operations less \n non-GAAP capital expenditures attributable to continuing operations. Non-GAAP \n net cash attributable to continuing operations is defined as net cash provided \n by operating activities less amounts generated or utilized by discontinued \n operations. Non-GAAP capital expenditures attributable to continuing \n operations is defined as capital expenditures less amounts attributable to \n discontinued operations. Knowles believes these measures are helpful in \n measuring its cash generated from its continuing operations that is available \n to repay debt, fund acquisitions, and repurchase Knowles common stock. \n Adjusted free cash flow and adjusted free cash flow as a percentage of \n revenues are not presented in accordance with GAAP and may not be comparable \n to similarly titled measures used by other companies in our industry. As such, \n adjusted free cash flow and adjusted free cash flow as a percentage of \n revenues should not be considered in isolation from, or as an alternative to, \n any other liquidity measures determined in accordance with GAAP. \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260423536586/en/\n(https://www.businesswire.com/news/home/20260423536586/en/)\n\nFinancial Contact: \n\nSarah Cook\n\nKnowles Investor Relations\n\nEmail: investorrelations@knowles.com (mailto:investorrelations@knowles.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw4WTyZna","title":"Knowles Reports Q1 2026 Financial Results and Provides Outlook for Q2 2026","author":"Business Wire","ticker":"KN","created":"2026-04-23T20:05:00.572Z","tickers":["KN"],"exchange":"NYSE","article_body":"Knowles Reports Q1 2026 Financial Results and Provides Outlook for Q2 2026\n\nQ1 Revenues Increased 16% on a Year over Year Basis to $153 million\n\nQ1 Diluted EPS from Continuing Operations increased $0.13 on a Year over Year\nBasis\n\nQ1 Non-GAAP Diluted EPS from Continuing Operations Increased 50% on a Year\nover Year Basis to $0.27\n\nKnowles Corporation (NYSE: KN), a leading manufacturer of specialty electronic\ncomponents, including high performance capacitors, radio frequency (\"RF\")\nfilters, advanced medtech microphones, and balanced armature speakers, today\nannounced results for the quarter ended March 31, 2026.\n\n“We started 2026 delivering strong first quarter revenues and non-GAAP\ndiluted EPS which was at or above the high-end of our guided ranges,”\ncommented Jeffrey Niew, President and CEO of Knowles.\n\nMr. Niew continued, “We are executing on our strategy, continuing to\nleverage our unique technologies, creating custom products through our\ncustomer application intimacy, and then scaling into production with our\nworld-class operational capabilities. Our end markets of Medtech, Defense,\nIndustrial and Electrification are also benefiting from strong secular growth\ntrends. With this powerful combination, our revenue grew 16% on a\nyear-over-year basis in the first quarter, exceeding our five-year annual\norganic growth target. Our revenue growth was complemented by substantial\ngross margin expansion resulting in significant year-over-year EPS growth.”\n\n“We have numerous new design wins ramping across multiple end markets and a\nvery healthy backlog of existing orders, positioning us well to continue to\ndeliver year over year organic revenue and adjusted EBITDA growth in 2026\nabove the high-end of our annual growth targets as presented in our May 2025\ninvestor day,” stated Mr. Niew.\n\nFinancial Highlights\n\nThe following table highlights the Company’s financial performance on both a\nGAAP and supplemental non-GAAP basis for continuing operations* with the\nexception of Net cash provided by operating activities (in millions, except\nper share data):\n   Q1-26 Q4-25 Q1-25 \n Revenues $153.1 $162.2 $132.2 \n Gross profit $67.1 $72.5 $53.3 \n (as a % of revenues) 43.8% 44.7% 40.3% \n Non-GAAP gross profit $69.7 $73.5 $55.0 \n (as a % of revenues) 45.5% 45.3% 41.6% \n Diluted earnings per share** $0.13 $0.29 $— \n Non-GAAP diluted earnings per share $0.27 $0.36 $0.18 \n Net cash (used in) provided by operating activities $(0.7) $47.2 $1.3 \n * Continuing operations excludes the results of the Consumer MEMS Microphones \n reporting business, which was divested in December 2024. \n ** Current period results include $0.10 per share in stock-based compensation \n expense, $0.04 per share in intangibles amortization expense, $0.01 per share \n in production transfer costs, and $0.03 for other adjustments, partially \n offset by $0.04 for differences related to the GAAP effective tax rate \n excluded from non-GAAP results. \n\n\nSecond Quarter 2026 Outlook\n\nThe forward looking guidance for the quarter ending June 30, 2026 on a\ncontinuing operations basis, with the exception of Net cash provided by\noperating activities, is as follows:\n   GAAP Adjustments Non-GAAP \n Revenues from continuing operations $152 to $162 million — $152 to $162 million \n Diluted earnings per share from continuing operations $0.18 to $0.22 $0.10 $0.28 to $0.32 \n Net cash provided by operating activities $20 to $30 million — $20 to $30 million \n\n\nQ2 2026 GAAP results from continuing operations are expected to include\napproximately $0.06 per share in stock-based compensation expense and $0.04\nper share in intangibles amortization expense. These items are excluded from\nnon-GAAP results.\n\nNon-GAAP Financial Measures\n\nIn addition to the GAAP results included in this press release, Knowles has\npresented supplemental non-GAAP gross profit, earnings before interest and\nincome taxes, adjusted earnings before interest and income taxes, non-GAAP\ndiluted earnings per share, free cash flow, as well as other metrics on a\nnon-GAAP basis that exclude certain amounts that are included in the most\ndirectly comparable GAAP measure to facilitate evaluation of Knowles’\noperating performance. Non-GAAP results are not presented in accordance with\nGAAP. Non-GAAP information should be considered a supplement to, and not a\nsubstitute for, financial statements prepared in accordance with GAAP. In\naddition, the non-GAAP financial measures included in this press release do\nnot have standard meanings and may vary from similarly titled non-GAAP\nfinancial measures used by other companies. Knowles believes that non-GAAP\nmeasures are useful as supplements to its GAAP results of operations to\nevaluate certain aspects of its operations and financial performance, and its\nmanagement team primarily focuses on non-GAAP items in evaluating Knowles’\nperformance for business planning purposes. Knowles also believes that these\nmeasures assist it with comparing its performance between various reporting\nperiods on a consistent basis, as these measures remove from operating results\nthe impact of items that, in Knowles’ opinion, do not reflect its core\noperating performance including, for example, stock-based compensation,\ncertain intangibles amortization expense, impairment charges, restructuring,\nproduction transfer costs, and other charges which management considers to be\noutside our core operating results. Knowles believes that its presentation of\nthese non-GAAP financial measures is useful because it provides investors and\nsecurities analysts with the same information that Knowles uses internally for\npurposes of assessing its core operating performance. For a reconciliation of\nthese non-GAAP financial measures to the most directly comparable GAAP\nfinancial measures, see the reconciliation table accompanying this release.\n\nWebcast and Conference Call Information\n\nInvestors can listen to a live or replay webcast of the Company’s quarterly\nfinancial conference call at http://investor.knowles.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestor.knowles.com&esheet=54520628&newsitemid=20260423536586&lan=en-US&anchor=http%3A%2F%2Finvestor.knowles.com&index=1&md5=988906eeba0da0c66cb71c44f669f1e4)\n. The live webcast will begin today at 3:30 p.m. Central time. The webcast\nreplay will be available after 7:00 p.m. Central time today.\n\nA conference call replay will be available after 7:00 p.m. Central time on\nApril 23 through 11:59 p.m. Central time on April 23 at (800) 770-2030\n(Toll-Free Dial-In); (609) 800-9909 (Toll Dial-In). The conference ID is\n8193117. A webcast replay will also be accessible via the Knowles website at\nhttp://investor.knowles.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestor.knowles.com&esheet=54520628&newsitemid=20260423536586&lan=en-US&anchor=http%3A%2F%2Finvestor.knowles.com&index=2&md5=cce6e8fcf8d3f918a6627a25825adb4b)\nfor a limited time.\n\nAbout Knowles\n\nKnowles is a leading manufacturer of specialty electronic components. We\ndesign parts that perform unique, critical functions for innovative\ntechnologies. Through extreme reliability, custom engineering, and scalable\nmanufacturing, we enable businesses to succeed in the most demanding\napplications across medtech, defense, and industrial markets.\n\nOur high-performance capacitors, RF microwave filters, advanced medtech\nmicrophones, balanced armature speakers, and miniaturization products enable\nand enhance the performance of technologies with the power to change, improve,\nand save lives. Founded in 1946 and headquartered in Itasca, Illinois, Knowles\nhas grown into a global organization with employees spanning 11 countries.\n\nFor more information, please visit knowles.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fknowles.com&esheet=54520628&newsitemid=20260423536586&lan=en-US&anchor=knowles.com&index=3&md5=5e7dd37870e485621d7816be2cfc1b82)\n.\n\nForward-Looking Statements\n\nThis news release contains forward-looking statements within the meaning of\nthe safe harbor provisions of the United States Private Securities Litigation\nReform Act of 1995, such as statements about our future plans, objectives,\nexpectations, financial performance, and continued business operations. The\nwords \"believe,\" \"expect,\" \"anticipate,\" \"project,\" \"estimate,\" \"budget,\"\n\"continue,\" \"could,\" \"intend,\" \"may,\" \"plan,\" \"potential,\" \"predict,\" \"seek,\"\n\"should,\" \"will,\" \"would,\" \"objective,\" \"forecast,\" \"goal,\" \"guidance,\"\n\"outlook,\" \"effort,\" \"target,\" and similar expressions, among others,\ngenerally identify forward-looking statements, which speak only as of the date\nthe statements were made. The statements in this presentation are based on\ncurrently available information and the current expectations, forecasts, and\nassumptions of Knowles’ management concerning risks and uncertainties that\ncould cause actual outcomes or results to differ materially from those\noutcomes or results that are projected, anticipated, or implied in these\nstatements. Other risks and uncertainties include, but are not limited to:\nfluctuations in our stock's market price; fluctuations in operating results\nand cash flows; our ability to prevent or identify quality issues in our\nproducts or to promptly remedy any such issues that are identified; risks\nassociated with increasing our inventories in advance of anticipated orders by\ncustomers; escalating international trade tensions, new or increased tariffs\nand trade wars among countries; the impact of changes to laws and regulations\nthat affect the Company’s ability to offer products or services to customers\nin different regions; our ability to achieve reductions in our operating\nexpenses; the ability to qualify our products and facilities with customers;\nour ability to obtain, enforce, defend or monetize our intellectual property\nrights; disruption caused by a cybersecurity incident, including a\ncyber-attack, cyber breach, theft, or other unauthorized access (the risk of\nwhich could be exacerbated by geopolitical tensions, including the conflict\nwith Iran); increases in the costs of critical raw materials and components;\navailability of raw materials and components; managing new product ramps and\nintroductions for our customers; our dependence on a limited number of large\ncustomers; our ability to maintain and expand our existing relationships with\nleading OEMs in order to maintain and increase our revenue; increasing\ncompetition and new entrants in the market for our products; our ability to\ndevelop new or enhanced products or technologies in a timely manner that\nachieve market acceptance; global economic instability, including due to\ninflation, rising interest rates, or the impacts of geopolitical uncertainties\n(including the impact of the conflict with Iran, which has disrupted maritime\ntraffic through the Strait of Hormuz, contributing to share increases in\nenergy prices); financial risks, including risks relating to currency\nfluctuations, credit risks and fluctuations in the market value of the\nCompany; a sustained decline in our stock price and market capitalization may\nresult in the impairment of certain intangible or long-lived assets; market\nrisk associated with fluctuations in commodity prices, particularly for\nvarious precious metals used in our manufacturing operation, changes in tax\nlaws, changes in tax rates and exposure to additional tax liabilities; and\nother risks, relevant factors, and uncertainties identified in our Annual\nReport on Form 10-K for the fiscal year ended December 31, 2025, subsequent\nReports on Forms 10-Q and 8-K and our other filings we make with the U.S.\nSecurities and Exchange Commission. Knowles disclaims any intention or\nobligation to update or revise any forward-looking statements, whether as a\nresult of new information, future events or otherwise, except as required by\nlaw.\n INVESTOR SUPPLEMENT - FIRST QUARTER 2026 \n \n \n \n  \n \n \n \nKNOWLES CORPORATION \n \n \n \nCONSOLIDATED STATEMENTS OF EARNINGS \n \n \n \n(in millions, except per share amounts) \n \n \n \n(unaudited) \n   \n   Quarter Ended \n March 31,   December 31,   Mar \n \n2026 \n2025 ch \n 31, \n \n \n 202 \n 5 \n Revenues $ 153.1     $ 162.2     $ 132.2   \n Cost of goods sold   85.9       89.6       78.4   \n Restructuring charges - cost of goods sold   0.1       0.1       0.5   \n Gross profit   67.1       72.5       53.3   \n Research and development expenses   11.7       10.5       9.7   \n Selling and administrative expenses   39.4       35.7       37.2   \n Restructuring charges   0.1       0.5       2.4   \n Operating expenses   51.2       46.7       49.3   \n Operating earnings   15.9       25.8       4.0   \n Interest expense, net   1.5       1.8       2.7   \n Dividend income   —       (6.2 )     —   \n Other expense, net   3.4       0.6       0.5   \n Earnings before income taxes and discontinued operations   11.0       29.6       0.8   \n (Benefit from) provision for income taxes   (0.3 )     4.1       1.2   \n Earnings (loss) from continuing operations   11.3       25.5       (0.4 ) \n Loss from discontinued operations, net   (1.6 )     (4.5 )     (1.6 ) \n Net earnings (loss) $ 9.7     $ 21.0     $ (2.0 ) \n             \n Earnings per share from continuing operations:           \n Basic $ 0.13     $ 0.30     $ —   \n Diluted $ 0.13     $ 0.29     $ —   \n             \n Loss per share from discontinued operations:           \n Basic $ (0.02 )   $ (0.05 )   $ (0.02 ) \n Diluted $ (0.02 )   $ (0.05 )   $ (0.02 ) \n             \n Net earnings (loss) per share:           \n Basic $ 0.11     $ 0.25     $ (0.02 ) \n Diluted $ 0.11     $ 0.24     $ (0.02 ) \n             \n Weighted-average common shares outstanding:           \n Basic   85.4       85.2       87.8   \n Diluted   87.7       87.5       87.8   \n\n KNOWLES CORPORATION \n \n \n \nRECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES ((1)) \n \n \n \n(in millions, except per share amounts) \n \n \n \n(unaudited) \n   \n   Quarter Ended \n   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Gross profit $ 67.1     $ 72.5     $ 53.3   \n Gross profit as % of revenues   43.8 %     44.7 %     40.3 % \n Stock-based compensation expense   0.5       0.4       0.5   \n Restructuring charges   0.1       0.1       0.5   \n Production transfer costs ((2))   0.9       0.7       0.1   \n Transition services credit ((3))   (0.3 )     (0.2 )     (0.2 ) \n Other ((4))   1.4       —       0.8   \n Non-GAAP gross profit $ 69.7     $ 73.5     $ 55.0   \n Non-GAAP gross profit as % of revenues   45.5 %     45.3 %     41.6 % \n Research and development expenses $ 11.7     $ 10.5     $ 9.7   \n Stock-based compensation expense   (1.5 )     (0.7 )     (1.1 ) \n Intangibles amortization expense   (0.6 )     (0.7 )     (0.5 ) \n Transition services credit ((3))   —       —       0.1   \n Other ((5))   —       0.2       —   \n Non-GAAP research and development expenses $ 9.6     $ 9.3     $ 8.2   \n Selling and administrative expenses $ 39.4     $ 35.7     $ 37.2   \n Stock-based compensation expense   (8.4 )     (4.9 )     (8.6 ) \n Intangibles amortization expense   (3.4 )     (3.4 )     (3.5 ) \n Production transfer costs ((2))   —       —       (0.1 ) \n Acquisition-related costs ((5))   —       (0.2 )     (0.5 ) \n Transition services credit ((3))   0.2       0.1       0.4   \n Non-GAAP selling and administrative expenses $ 27.8     $ 27.3     $ 24.9   \n Operating expenses $ 51.2     $ 46.7     $ 49.3   \n Stock-based compensation expense   (9.9 )     (5.6 )     (9.7 ) \n Intangibles amortization expense   (4.0 )     (4.1 )     (4.0 ) \n Restructuring charges   (0.1 )     (0.5 )     (2.4 ) \n Production transfer costs ((2))   —       —       (0.1 ) \n Acquisition-related costs ((5))   —       (0.2 )     (0.5 ) \n Transition services credit ((3))   0.2       0.1       0.5   \n Other ((4))   —       0.2       —   \n Non-GAAP operating expenses $ 37.4     $ 36.6     $ 33.1   \n Net earnings (loss) from continuing operations $ 11.3     $ 25.5     $ (0.4 ) \n Interest expense, net   1.5       1.8       2.7   \n (Benefit from) provision for income taxes   (0.3 )     4.1       1.2   \n Earnings from continuing operations before interest and income taxes   12.5       31.4       3.5   \n Earnings from continuing operations before interest and income taxes as % of   8.2 %     19.4 %     2.6 % \n revenues \n Stock-based compensation expense   10.4       6.0       10.2   \n Intangibles amortization expense   4.0       4.1       4.0   \n Restructuring charges   0.2       0.6       2.9   \n Production transfer costs ((2))   0.9       0.7       0.2   \n Acquisition-related costs ((5))   —       0.2       0.5   \n Transition services credit ((3))   (0.5 )     (0.3 )     (0.7 ) \n Dividend income ((6))   —       (6.2 )     —   \n Other ((4))   2.6       (0.3 )     1.1   \n Adjusted earnings from continuing operations before interest and income taxes $ 30.1     $ 36.2     $ 21.7   \n Adjusted earnings from continuing operations before interest and income taxes   19.7 %     22.3 %     16.4 % \n as % of revenues \n Net earnings (loss) from continuing operations $ 11.3     $ 25.5     $ (0.4 ) \n Interest expense, net   1.5       1.8       2.7   \n (Benefit from) provision for income taxes   (0.3 )     4.1       1.2   \n Earnings from continuing operations before interest and income taxes   12.5       31.4       3.5   \n Non-GAAP reconciling adjustments ((7))   17.6       4.8       18.2   \n Depreciation expense   5.2       5.1       5.0   \n Adjusted earnings from continuing operations before interest, income taxes, $ 35.3     $ 41.3     $ 26.7   \n depreciation, and amortization (\"Adjusted EBITDA\") \n Adjusted EBITDA as a % of revenues   23.1 %     25.5 %     20.2 % \n   Quarter Ended \n   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n (Benefit from) provision for income taxes $ (0.3 )   $ 4.1     $ 1.2   \n Income tax effects of non-GAAP reconciling adjustments ((8))   5.1       (1.1 )     1.6   \n Non-GAAP provision for income taxes $ 4.8     $ 3.0     $ 2.8   \n             \n Net earnings (loss) from continuing operations $ 11.3     $ 25.5     $ (0.4 ) \n Non-GAAP reconciling adjustments ((7))   17.6       4.8       18.2   \n Income tax effects of non-GAAP reconciling adjustments ((8))   5.1       (1.1 )     1.6   \n Non-GAAP net earnings $ 23.8     $ 31.4     $ 16.2   \n             \n Diluted earnings per share from continuing operations $ 0.13     $ 0.29     $ —   \n Earnings per share non-GAAP reconciling adjustment ((7) (8) (9))   0.14       0.07       0.18   \n Non-GAAP diluted earnings per share ((9)) $ 0.27     $ 0.36     $ 0.18   \n             \n Diluted average shares outstanding   87.7       87.5       87.8   \n Non-GAAP adjustment ((9) (10))   (0.4 )     (0.3 )     1.8   \n Non-GAAP diluted average shares outstanding ((9) (10))   87.3       87.2       89.6   \n\n Notes: \n ((1)) In addition to the GAAP financial measures included herein, Knowles has \n presented certain non-GAAP financial measures that exclude certain amounts \n that are included in the most directly comparable GAAP measures. Knowles \n believes that non-GAAP measures are useful as supplements to its GAAP results \n of operations to evaluate certain aspects of its operations and financial \n performance, and its management team primarily focuses on non-GAAP items in \n evaluating Knowles' performance for business planning purposes. Knowles also \n believes that these measures assist it with comparing its performance between \n various reporting periods on a consistent basis, as these measures remove from \n operating results the impact of items that, in Knowles' opinion, do not \n reflect its core operating performance. Knowles believes that its presentation \n of non-GAAP financial measures is useful because it provides investors and \n securities analysts with the same information that Knowles uses internally for \n purposes of assessing its core operating performance. \n ((2)) Production transfer costs represent duplicate costs incurred to migrate \n manufacturing to existing facilities. \n ((3)) Transition services represent amounts charged to Syntiant in connection with \n post-closing transition and separation costs. \n ((4)) Other expenses include certain foreign currency exchange rate adjustments and \n non-recurring professional service fees related to the execution of various \n reorganization projects. \n ((5)) These expenses include ongoing costs to facilitate integration of the Cornell \n Dubilier acquisition by the Precision Devices segment. \n ((6)) During the fourth quarter of 2025, the Company recorded a non-cash dividend on \n the Syntiant investment in the form of additional Series D-2 shares with a \n value of $6.2 million. \n ((7)) The non-GAAP reconciling adjustments include stock-based compensation expense, \n intangibles amortization expense, restructuring charges, production transfer \n costs, acquisition-related costs, and other expenses, partially offset by \n dividend income and a credit to transition services. \n ((8)) Income tax effects of non-GAAP reconciling adjustments are calculated using \n the applicable tax rates in the jurisdictions of the underlying adjustments. \n ((9)) In the third quarter of 2025, the Company modified its calculation method of \n non-GAAP diluted average shares outstanding to exclude the potential dilution \n impact from performance share units (\"PSUs\") as these equity awards have not \n yet been earned. Our PSUs are market-based awards and have fluctuated based on \n the Company's total shareholder return performance relative to the Russell \n 2000 during the measurement period. The calculation methodology change in \n non-GAAP diluted average shares outstanding had no impact on non-GAAP diluted \n earnings per share for the historical periods presented. \n ((10)) The number of shares used in the diluted average shares outstanding \n calculations on a non-GAAP basis excludes the impact of stock-based \n compensation expense expected to be incurred in future periods and not yet \n recognized in the financial statements, which would otherwise be assumed to be \n used to repurchase shares under the GAAP treasury stock method. Non-GAAP \n diluted average shares outstanding also excludes the impact of certain equity \n awards that are not yet earned. \n\n KNOWLES CORPORATION \n \n \n \nCONSOLIDATED BALANCE SHEETS \n \n \n \n(in millions, except share and per share amounts) \n \n \n \n(unaudited) \n   \n   March 31, 2026   December 31, 2025 \n Current assets:       \n Cash and cash equivalents $ 41.0     $ 54.2   \n Receivables, net of allowances of $—   109.2       102.8   \n Inventories   136.2       124.6   \n Prepaid and other current assets   11.0       9.8   \n Total current assets   297.4       291.4   \n Property, plant, and equipment, net   144.7       140.2   \n Goodwill   270.3       270.3   \n Intangible assets, net   137.1       141.1   \n Operating lease right-of-use assets   19.3       19.1   \n Investment in affiliate   83.4       83.4   \n Other assets and deferred charges   101.7       105.6   \n Total assets $ 1,053.9     $ 1,051.1   \n         \n Current liabilities:       \n Accounts payable $ 44.5     $ 42.9   \n Accrued compensation and employee benefits   19.3       29.7   \n Operating lease liabilities   4.6       4.1   \n Other accrued expenses   21.5       28.2   \n Federal and other taxes on income   1.0       1.0   \n Total current liabilities   90.9       105.9   \n Long-term debt   131.0       114.0   \n Deferred income taxes   1.1       1.1   \n Long-term operating lease liabilities   15.6       16.1   \n Other liabilities   35.1       38.2   \n Commitments and contingencies       \n Stockholders' equity:       \n Preferred stock - $0.01 par value; 10,000,000 shares authorized; none issued   —       —   \n Common stock - $0.01 par value; 400,000,000 shares authorized; 100,601,363 and   1.0       1.0   \n 85,560,660 shares issued and outstanding at March 31, 2026, respectively, and \n 99,651,892 and 84,887,498 shares issued and outstanding at December 31, 2025, \n respectively \n Treasury stock - at cost; 15,040,703 and 14,764,394 shares at March 31, 2026   (278.2 )     (270.7 ) \n and December 31, 2025, respectively \n Additional paid-in capital   1,738.8       1,739.6   \n Accumulated deficit   (559.7 )     (569.4 ) \n Accumulated other comprehensive loss   (121.7 )     (124.7 ) \n Total stockholders' equity   780.2       775.8   \n Total liabilities and stockholders' equity $ 1,053.9     $ 1,051.1   \n\n KNOWLES CORPORATION \n \n \n \nCONSOLIDATED STATEMENTS OF CASH FLOWS \n \n \n \n(in millions) \n \n \n \n(unaudited) \n   \n   Three Months Ended March 31, \n     2026       2025   \n Operating Activities       \n Net earnings (loss) $ 9.7     $ (2.0 ) \n Adjustments to reconcile net earnings (loss) to cash from operating \n activities: \n Stock-based compensation   10.4       10.2   \n Depreciation and amortization   9.2       9.0   \n Deferred income taxes   3.6       3.1   \n Non-cash interest expense and amortization of debt issuance costs   0.1       1.3   \n Loss on sale of business   —       1.6   \n Other, net   2.8       0.7   \n Changes in assets and liabilities (excluding effects of foreign exchange):       \n Receivables, net   (6.3 )     (3.1 ) \n Inventories   (11.1 )     (1.6 ) \n Prepaid and other current assets   (1.8 )     (0.6 ) \n Accounts payable   1.5       (19.3 ) \n Accrued compensation and employee benefits   (10.5 )     (11.1 ) \n Other accrued expenses   (5.1 )     1.9   \n Accrued taxes   (0.5 )     (2.6 ) \n Other non-current assets and non-current liabilities   (2.7 )     13.8   \n Net cash (used in) provided by operating activities   (0.7 )     1.3   \n         \n Investing Activities       \n Capital expenditures   (10.8 )     (4.0 ) \n Purchase of investments   —       (1.6 ) \n Proceeds from the sale of investments   —       1.6   \n Proceeds from seller loan repayment   —       0.5   \n Net cash used in investing activities   (10.8 )     (3.5 ) \n         \n Financing Activities       \n Borrowings under revolving credit facility   60.0       —   \n Payments under revolving credit facility   (43.0 )     (15.0 ) \n Tax on restricted stock and performance share unit vesting and stock option   (14.2 )     (6.7 ) \n exercises \n Repurchase of common stock   (7.5 )     (5.0 ) \n Proceeds from exercise of stock options   3.0       0.6   \n Payments of finance lease obligations   (0.1 )     (0.1 ) \n Net cash used in financing activities   (1.8 )     (26.2 ) \n         \n Effect of exchange rate changes on cash and cash equivalents   0.1       0.2   \n         \n Net decrease in cash and cash equivalents   (13.2 )     (28.2 ) \n Cash and cash equivalents at beginning of period   54.2       130.1   \n Cash and cash equivalents at end of period $ 41.0     $ 101.9   \n\n KNOWLES CORPORATION \n \n \n \nRECONCILIATION OF GAAP CASH FLOW MEASURES TO NON-GAAP CASH FLOW MEASURES ((1)) \n \n \n \n(in millions, except per share amounts) \n \n \n \n(unaudited) \n   \n   Quarter Ended \n   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Net cash (used in) provided by operating activities $ (0.7 )   $ 47.2     $ 1.3   \n Amounts utilized by discontinued operations   8.4       1.3       21.0   \n Non-GAAP net cash attributable to continuing operations   7.7       48.5       22.3   \n             \n Capital expenditures   (10.8 )     (15.3 )     (4.0 ) \n Amounts attributable to discontinued operations   —       —       —   \n Non-GAAP capital expenditures attributable to continuing operations   (10.8 )     (15.3 )     (4.0 ) \n             \n Non-GAAP net cash attributable to continuing operations   7.7       48.5       22.3   \n Non-GAAP capital expenditures attributable to continuing operations   (10.8 )     (15.3 )     (4.0 ) \n Adjusted free cash flow $ (3.1 )   $ 33.2     $ 18.3   \n Adjusted free cash flow as a % of revenues   (2.0 )%     20.5 %     13.8 % \n\n ((1)) In addition to measuring cash flow generation based on the operating, \n investing, and financing classifications included in the Consolidated \n Statement of Cash Flows, Knowles also measures adjusted free cash flow and \n adjusted free cash flow as a percentage of revenues. Adjusted free cash flow \n is defined as non-GAAP net cash attributable to continuing operations less \n non-GAAP capital expenditures attributable to continuing operations. Non-GAAP \n net cash attributable to continuing operations is defined as net cash provided \n by operating activities less amounts generated or utilized by discontinued \n operations. Non-GAAP capital expenditures attributable to continuing \n operations is defined as capital expenditures less amounts attributable to \n discontinued operations. Knowles believes these measures are helpful in \n measuring its cash generated from its continuing operations that is available \n to repay debt, fund acquisitions, and repurchase Knowles common stock. \n Adjusted free cash flow and adjusted free cash flow as a percentage of \n revenues are not presented in accordance with GAAP and may not be comparable \n to similarly titled measures used by other companies in our industry. As such, \n adjusted free cash flow and adjusted free cash flow as a percentage of \n revenues should not be considered in isolation from, or as an alternative to, \n any other liquidity measures determined in accordance with GAAP. \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260423536586/en/\n(https://www.businesswire.com/news/home/20260423536586/en/)\n\nFinancial Contact: \n\nSarah Cook\n\nKnowles Investor Relations\n\nEmail: investorrelations@knowles.com (mailto:investorrelations@knowles.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-04-23T20:05:00.76128237Z","server_sent_at_ms":1776974700761},"received_at":"2026-04-23T20:05:00.817Z","source_url":"https://www.businesswire.com/news/home/20260423536586/en/"},"analysis":{"id":"5604","press_release_id":"7451","analysis_json":{"industry":{"label":"Technology Hardware & Equipment","sector":"Information Technology"},"redFlags":[],"eventType":"earnings","narrative":"Knowles reported Q1 2026 revenue of $153.1 million, up 16% year-over-year, with non-GAAP diluted EPS increasing 50% to $0.27.\n\nThe company stated that results were at or above the high-end of guided ranges, driven by strong secular growth trends in Medtech, Defense, Industrial, and Electrification end markets.\n\nFor Q2 2026, Knowles expects revenue of $152 to $162 million and diluted EPS from continuing operations of $0.18 to $0.22 GAAP and $0.28 to $0.32 non-GAAP.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Beat-and-raise potential as Q1 exceeds guidance and backlog positions company for continued 2026 outperformance."},"keyFigures":{"eps":0.13,"revenue":"$153.1 million","guidance":"Q2 revenue $152 to $162 million; Diluted EPS $0.18 to $0.22; Non-GAAP Diluted EPS $0.28 to $0.32","revenueYoy":"16%"},"quotedText":"We started 2026 delivering strong first quarter revenues and non-GAAP diluted EPS which was at or above the high-end of our guided ranges","namedEntities":{"people":[{"name":"Jeffrey Niew","role":"President and CEO"},{"name":"Sarah Cook","role":"Investor Relations"}],"products":[],"companies":[{"name":"Knowles Corporation","ticker":"KN"}],"dollarAmounts":[{"amount":"$153 million","context":"Q1 revenues"},{"amount":"$152 to $162 million","context":"Q2 revenue guidance"}]},"materialImpact":{"score":4,"reasoning":"Knowles delivered strong Q1 results with revenue up 16% YoY to $153.1 million and non-GAAP diluted EPS up 50% YoY to $0.27, both exceeding the high-end of guided ranges. Management also signaled confidence in exceeding long-term growth targets for 2026."},"tickerRelevance":{"others":[],"primary":"KN"},"eventTypeSecondary":["guidance_update"]},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Knowles reported Q1 2026 revenue of $153.1 million, up 16% year-over-year, with non-GAAP diluted EPS increasing 50% to $0.27.\n\nThe company stated that results were at or above the high-end of guided ranges, driven by strong secular growth trends in Medtech, Defense, Industrial, and Electrification end markets.\n\nFor Q2 2026, Knowles expects revenue of $152 to $162 million and diluted EPS from continuing operations of $0.18 to $0.22 GAAP and $0.28 to $0.32 non-GAAP.","key_figures":{"eps":0.13,"revenue":"$153.1 million","guidance":"Q2 revenue $152 to $162 million; Diluted EPS $0.18 to $0.22; Non-GAAP Diluted EPS $0.28 to $0.32","revenueYoy":"16%"},"named_entities":{"people":[{"name":"Jeffrey Niew","role":"President and CEO"},{"name":"Sarah Cook","role":"Investor Relations"}],"products":[],"companies":[{"name":"Knowles Corporation","ticker":"KN"}],"dollarAmounts":[{"amount":"$153 million","context":"Q1 revenues"},{"amount":"$152 to $162 million","context":"Q2 revenue guidance"}]},"model_name":"glm-4.7","prompt_hash":"sha256:2f2748f0fcc8c4f2","schema_hash":"sha256:ad96b863d7123008","created_at":"2026-04-24T00:12:45.256Z","global_importance":3,"audience_relevance":3,"importance_components":{"method":"backfill-heuristic","signals":{"bodyLong":false,"headlineTier1":false,"tickerCovered":false,"hadSignificance":false},"version":1,"computedAt":"2026-04-27T11:52:55.141Z"}},"durationMs":29492,"modelName":"glm-4.7"}}