Danaos Corp_2026-06-30

EXHIBIT 99.1

DANAOS CORPORATION

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following discussion and analysis should be read in conjunction with our interim condensed consolidated financial statements (unaudited) and the notes thereto included elsewhere in this report.

Results of Operations

Three months ended June 30, 2026 compared to three months ended June 30, 2025

During the three months ended June 30, 2026, Danaos had an average of 75.0 container vessels and 11.0 drybulk vessels compared to 74.0 container vessels and 10.0 drybulk vessels during the three months ended June 30, 2025. Our container vessels utilization for the three months ended June 30, 2026 was 97.7% compared to 98.4% in the three months ended June 30, 2025. Our drybulk vessels utilization for the three months ended June 30, 2026 was 99.5% compared to 99.8% in the three months ended June 30, 2025.

Operating Revenues

Operating revenues increased by $12.2 million, to $274.4 million in the three months ended June 30, 2026 from $262.2 million in the three months ended June 30, 2025.

Operating revenues of our container vessels segment decreased by $0.8 million, to $238.6 million in the three months ended June 30, 2026, compared to $239.4 million in the three months ended June 30, 2025, analyzed as follows:

●

$3.4 million lower revenues due a decrease in non-cash revenue recognition in accordance with US GAAP;

●

$1.2 million decrease in revenues as a result of higher revenue off-hire in the current period;

partially offset by:

●

$3.2 million increase in revenues as a result of newbuilding containership vessel additions;

●

$0.6 million increase in revenues as a result of higher charter rates between the two periods.

Operating revenues of our drybulk vessels segment increased by 57.3%, or $13.0 million, to $35.7 million in the three months ended June 30, 2026, compared to $22.7 million of revenues in the three months ended June 30, 2025. The increase was primarily driven by a significant improvement in Time Charter Equivalent rate per day, which increased to $30,401 per day in the three months ended June 30, 2026, from $17,934 per day in the three months ended June 30, 2025, reflecting improved market conditions, as well as the operation of an additional vessel in our drybulk fleet.

Voyage Expenses

Voyage expenses increased by $1.0 million to $17.8 million in the three months ended June 30, 2026 from $16.8 million in the three months ended June 30, 2025.

Voyage expenses of our container vessels segment increased by $1.2 million to $10.1 million in the three months ended June 30, 2026 from $8.9 million in the three months ended June 30, 2025.

Voyage expenses of our drybulk vessels segment decreased by $0.2 million to $7.7 million in the three months ended June 30, 2026, compared to $7.9 million in the three months ended June 30, 2025. For the three months ended June 30, 2026, voyage expenses of our drybulk vessels comprised $2.3 million in commissions and $5.4 million in other voyage expenses, mainly comprised of bunkers costs and port expenses, compared to $1.5 million in commissions and $6.4 million in other voyage expenses for the three months ended

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June 30, 2025, reflecting an increase in time charter employment of our drybulk vessels, as opposed to spot voyage employment, during the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

Vessel Operating Expenses

Vessel operating expenses increased by $0.3 million to $56.7 million for the three months ended June 30, 2026, from $56.4 million for the three months ended June 30, 2025, primarily due to an increase in the average number of vessels in our fleet, partially offset by a reduction in average daily operating costs to $7,416 per day from $7,556 per day in the prior-year period. Management believes that our daily operating costs remain among the most competitive in the industry.

Vessel operating expenses for the container vessels segment increased by $0.4 million, to $49.1 million for the three months ended June 30, 2026, from $48.7 million for the three months ended June 30, 2025. The increase was mainly driven by an increase in the average number of vessels in our containerships fleet, partially offset by a decrease in daily container vessel operating costs. Vessels employed under bareboat charter agreements are excluded from the above per-day calculations, as vessel operating expenses under such arrangements are borne by the charterer.

Vessel operating expenses for the drybulk vessels segment decreased by $0.1 million, to $7.6 million for the three months ended June 30, 2026, from $7.7 million for the three months ended June 30, 2025. The decrease was primarily driven by lower daily drybulk vessel operating expenses, which were partially offset by an increase in the average number of vessels in our drybulk fleet.

Depreciation

Depreciation expense increased by $1.1 million, to $41.8 million in the three months ended June 30, 2026 from $40.7 million in the three months ended June 30, 2025, due to the increase in the average number of vessels in our fleet.

Amortization of Deferred Drydocking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs decreased by $1.0 million to $10.5 million in the three months ended June 30, 2026 from $11.5 million in the three months ended June 30, 2025, primarily reflecting lower deferred dry-docking and special survey costs being amortized during the three months ended June 30, 2026 compared to the corresponding period in 2025.

General and Administrative Expenses

General and administrative expenses increased by $3.7 million to $14.9 million for the three months ended June 30, 2026, from $11.2 million for the three months ended June 30, 2025. The increase was mainly attributable to $1.5 million in higher management fees which was partially driven by the increase in the average number of vessels in our fleet, as well as a $2.2 million increase in corporate general and administrative expenses.

Interest Expense and Interest Income

Interest expense decreased by $1.6 million, to $8.1 million in the three months ended June 30, 2026 from $9.7 million in the three months ended June 30, 2025. The decrease in interest expense is a result of:

●

$4.2 million decrease in interest expense due to an increase in the amount of interest expense capitalized on our vessels under construction that was $9.0 million in the three months ended June 30, 2026, when compared to capitalized interest of $4.8 million in the three months ended June 30, 2025.

partially offset by:

●

$2.6 million increase in interest expense due to an increase in our average indebtedness by $326.1 million between the two periods, partially offset by a decrease in our average debt service cost. Average indebtedness was $1,102.9 million in the three months ended June 30, 2026, compared to average indebtedness of $776.8 million in the three months ended June 30, 2025, while our average debt service cost decreased by approximately 1.1%, mainly as a result of lower SOFR rates and a lower weighted average coupon following the refinancing of our bond.

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As of June 30, 2026, our outstanding debt, gross of deferred finance costs, was $1,232.7 million, which includes $500.0 million principal amount of the 6.875% Senior Notes. This compares to $1,177.8 million of outstanding debt as of December 31, 2025, which included $262.8 million principal amount of the 8.5% Senior Notes and $500.0 million principal amount of the 6.875% Senior Notes. The increase in our outstanding debt was mainly due to the drawdowns of $658.0 million under the Jolco facilities offset by: (i) the repayment in full of the $335.2 million outstanding under the $450 million syndicated credit facility and (ii) the repayment of the $262.8 million principal amount of the 8.5% Senior Notes.

Interest income increased by $3.7 million, to $7.4 million in the three months ended June 30, 2026 compared to $3.7 million in the three months ended June 30, 2025, mainly driven by higher average cash balances between the two periods.

Loss on Debt Extinguishment

The loss on debt extinguishment of $1.4 million in the three months ended June 30, 2026 related to our early extinguishment of debt compared to nil in the three months ended June 30, 2025.

Gain on Investments

The $20.9 million gain from the change in fair value of our shareholding interests in the three months ended June 30, 2026 consisted of (i) a $12.5 million change in fair value of our shareholding interest in Star Bulk Carriers Corp. (“SBLK”) and (ii) a $8.4 million change in fair value of our shareholding interest in Yoda PLC, compared to a $14.7 million gain in the three months ended June 30, 2025, which related entirely to our shareholding interest in SBLK.

Dividend Income

Dividend income of $3.1 million was derived from SBLK common shares in the three months ended June 30, 2026 compared to $0.3 million of dividend income from SBLK common shares in the three months ended June 30, 2025.

Loss on Equity Investments

Loss on equity investments amounted to $0.5 million and $0.3 million in the three months ended June 30, 2026 and June 30, 2025, respectively. For the three months ended June 30, 2026, loss on equity investments comprised (i) $0.4 million relating to our share of expenses of Carbon Termination Technologies Corporation (“CTTC”), currently engaged in the research and development of decarbonization technologies for the shipping industry, and (ii) $0.1 million relating to our share of expenses of Glenfarne Alaska Partners LLC, in connection with the development of the Alaska LNG project. For the three months ended June 30, 2025, loss on equity investments of $0.3 million related solely to our share of expenses of CTTC.

Other Finance Expenses

Other finance expenses decreased by $0.1 million to $0.9 million in the three months ended June 30, 2026 compared to $1.0 million in the three months ended June 30, 2025.

Loss on Derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in the three months ended June 30, 2026 and June 30, 2025.

Other (Expenses)/Income, net

Other (expenses)/income, net, amounted to a net expense of $0.4 million in the three months ended June 30, 2026 compared to a net expense of $1.4 million in the three months ended June 30, 2025.

Six months ended June 30, 2026 compared to six months ended June 30, 2025

During the six months ended June 30, 2026, Danaos had an average of 75 container vessels and 10.6 drybulk vessels compared to 73.9 container vessels and 10.0 drybulk vessels during the six months ended June 30, 2025. Our container vessels utilization for the

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six months ended June 30, 2026 was 97.7% compared to 97.8% in the six months ended June 30, 2025. Our drybulk vessels utilization for the six months ended June 30, 2026 was 91.2% compared to 96.1% in the six months ended June 30, 2025.

Operating Revenues

Operating revenues increased by $12.6 million, to $528.1 million in the six months ended June 30, 2026 from $515.5 million in the six months ended June 30, 2025.

Operating revenues of our container vessels segment decreased by 1.6%, or $7.4 million, to $468.2 million in the six months ended June 30, 2026, compared to $475.6 million in the six months ended June 30, 2025, analyzed as follows:

●

$10.6 million lower revenues due to a decrease in non-cash revenue recognition in accordance with US GAAP;

●

$6.3 million decrease in revenues as a result of lower charter rates;

partially offset by:

●

$7.1 million increase in revenues as a result of newbuilding containership vessel additions;

●

$2.4 million increase in revenues as a result of lower revenue off-hire in the current period.

Operating revenues of our drybulk vessels segment increased by 50.5%, or $20.1 million, to $59.9 million in the six months ended June 30, 2026, compared to $39.8 million of revenues in the six months ended June 30, 2025. The increase was primarily driven by a significant improvement in Time Charter Equivalent rate per day, which increased to $28,007 per day in the six months ended June 30, 2026, from $14,386 per day in the six months ended June 30, 2025, reflecting improved market conditions, as well as the operation of an additional vessel in our drybulk fleet. This improvement was partially offset by a lower fleet utilization rate of 91.2% in the six months ended June 30, 2026 compared to 96.1% in the six months ended June 30, 2025.

Voyage Expenses

Voyage expenses decreased by $6.4 million to $28.5 million in the six months ended June 30, 2026 from $34.9 million in the six months ended June 30, 2025, mainly driven by (i) a $5.1 million gain arising from early termination agreements for certain container vessels operating under time charter arrangements, with retention of bunkers on redelivery at no consideration, partially offset by an increase in commissions during the six months ended June 30, 2026, and (ii) a $2.4 million decrease in voyage expenses of our drybulk vessels, attributed to the different mix of time charter and voyage charter contracts under which our drybulk vessels were deployed between the two periods.

Voyage expenses of our container vessels segment decreased by $4.0 million to $13.7 million in the six months ended June 30, 2026 from $17.7 million in the six months ended June 30, 2025, driven by a $5.1 million gain arising from early termination agreements for certain vessels operating under time charter arrangements, with retention of bunkers on redelivery at no consideration partially offset by an increase in commissions during the six months ended June 30, 2026.

Voyage expenses of our drybulk vessels segment decreased by $2.4 million to $14.8 million in the six months ended June 30, 2026, compared to $17.2 million in the six months ended June 30, 2025. For the six months ended June 30, 2026, voyage expenses of our drybulk vessels comprised $3.8 million in commissions and $11.0 million in other voyage expenses, mainly comprised of bunkers costs and port expenses, compared to $2.4 million in commissions and $14.8 million in other voyage expenses for the six months ended June 30, 2025, reflecting an increase in time charter employment of our drybulk vessels during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Vessel Operating Expenses

Vessel operating expenses decreased by $1.4 million to $106.7 million for the six months ended June 30, 2026, from $108.1 million for the six months ended June 30, 2025. This decrease occurred despite an increase in the average number of vessels in our fleet and reflects a reduction in average daily operating costs to $7,052 per day from $7,294 per day in the prior-year period. Management believes that our daily operating costs remain among the most competitive in the industry.

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Vessel operating expenses for the container vessels segment decreased by $0.6 million, to $92.0 million for the six months ended June 30, 2026, from $92.6 million for the six months ended June 30, 2025. The decrease was primarily driven by a reduction in daily container vessel operating expenses. Vessels employed under bareboat charter agreements are excluded from the above per-day calculations, as vessel operating expenses under such arrangements are borne by the charterer.

Vessel operating expenses for the drybulk vessels segment decreased by $0.8 million, to $14.7 million for the six months ended June 30, 2026, from $15.5 million for the six months ended June 30, 2025. The decrease was primarily driven by a reduction in daily drybulk vessel operating expenses.

Depreciation

Depreciation expense increased by $1.9 million, to $82.6 million in the six months ended June 30, 2026 from $80.7 million in the six months ended June 30, 2025, due to the increase in the average number of vessels in our fleet.

Amortization of Deferred Drydocking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs increased by $0.3 million to $22.8 million in the six months ended June 30, 2026 from $22.5 million in the six months ended June 30, 2025.

General and Administrative Expenses

General and administrative expenses increased by $6.1 million to $29.5 million for the six months ended June 30, 2026, from $23.4 million for the six months ended June 30, 2025. The increase was mainly attributable to $2.7 million in higher management fees which was partially driven by the increase in the average number of vessels in our fleet, as well as a $3.4 million increase in corporate general and administrative expenses.

Interest Expense and Interest Income

Interest expense increased by $0.3 million, to $20.0 million in the six months ended June 30, 2026 from $19.7 million in the six months ended June 30, 2025. The increase in interest expense is a result of:

●

$7.1 million increase in interest expense due to an increase in our average indebtedness by $327.9 million between the two periods, partially offset by a decrease in our average debt service cost. Average indebtedness was $1,105.1 million in the six months ended June 30, 2026, compared to average indebtedness of $777.2 million in the six months ended June 30, 2025, while our average debt service cost decreased by approximately 0.8%, mainly as a result of lower SOFR rates and a lower weighted average coupon following the refinancing of our bond;

●

$0.2 million increase in the amortization of deferred finance costs and debt discount between the two periods;

partially offset by:

●

$7.0 million decrease in interest expense due to an increase in the amount of interest expense capitalized on our vessels under construction that was $16.3 million in the six months ended June 30, 2026, when compared to capitalized interest of $9.3 million in the six months ended June 30, 2025.

Interest income increased by $7.7 million, to $15.0 million in the six months ended June 30, 2026 compared to $7.3 million in the six months ended June 30, 2025, mainly driven by higher average cash balances between the two periods, partially offset by lower interest rates on cash deposits between the corresponding periods.

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Loss on Debt Extinguishment

The loss on debt extinguishment of $6.0 million in the six months ended June 30, 2026 related to our early extinguishment of debt compared to nil in the six months ended June 30, 2025.

Gain on Investments

The $44.4 million gain from the change in fair value of our shareholding interests in the six months ended June 30, 2026 consisted of (i) a $36.0 million change in fair value of our shareholding interest in SBLK and (ii) a $8.4 million change in fair value of our shareholding interest in Yoda PLC, compared to a $17.2 million gain in the six months ended June 30, 2025, which related entirely to our shareholding interest in SBLK.

Dividend Income

Dividend income derived from SBLK common shares amounted to $5.4 million for the six months ended June 30, 2026, compared to $0.7 million for the six months ended June 30, 2025.

Loss on Equity Investments

Loss on equity investments amounted to $0.8 million and $0.6 million in the six months ended June 30, 2026 and June 30, 2025, respectively. For the six months ended June 30, 2026, loss on equity investments comprised (i) $0.7 million relating to our share of expenses of CTTC, currently engaged in the research and development of decarbonization technologies for the shipping industry, and (ii) $0.1 million relating to our share of expenses of Glenfarne Alaska Partners LLC, in connection with the development of the Alaska LNG project. For the six months ended June 30, 2025, loss on equity investments of $0.6 million related solely to our share of expenses of CTTC.

Other Finance Expenses

Other finance expenses decreased by $0.2 million to $1.8 million in the six months ended June 30, 2026 compared to $2.0 million in the six months ended June 30, 2025.

Loss on Derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $1.8 million in the six months ended June 30, 2026 and June 30, 2025.

Other (Expenses)/Income, net

Other (expenses)/income, net, amounted to an expense of $0.01 million in the six months ended June 30, 2026 compared to an expense of $0.9 million in the six months ended June 30, 2025.

Liquidity and Capital Resources

Our principal source of funds has been operating cash flows and long-term bank borrowings, as well as funds from issuances of equity and debt securities, including offerings of our common stock, and unsecured senior notes in October 2025. We have also received funds from dividend payments on investments in marketable securities of other shipping companies. Our principal uses of funds have been capital expenditures to establish, grow (including vessels currently under construction) and maintain our fleet, including our expansion into the drybulk shipping sector, to comply with international shipping standards and environmental laws and regulations, and to fund working capital requirements and the repayment of debt.

Our short-term liquidity needs primarily relate to funding our vessel operating expenses, drydocking costs, installment payments for our contracted newbuildings, funding of our investment in the Alaska LNG project, investments in marketable securities, debt interest payments, servicing our debt obligations, the payment of dividends and repurchases of our common stock. Our long-term liquidity needs primarily relate to installment payments for our contracted newbuildings, any additional vessel acquisitions, and debt

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repayment. We anticipate that our primary sources of funds will be cash from operations and equity or debt financings. We currently expect that the sources of funds available to us will be sufficient to meet our short and long term liquidity requirements.

Under our existing multi-year charters as of June 30, 2026, we had $4,307.6 million of total contracted revenues, with $506.5 million for the remainder of 2026, $967.8 million for 2027 and thereafter $2,833.3 million. Although these contracted cash revenues are based on contracted charter rates, we are dependent on the ability and willingness of our charterers to meet their obligations under these charters.

On March 2, 2026, we repaid in full our 8.5% senior notes due 2028, with an outstanding principal amount of $262.8 million. In addition, on March 2, 2026, together with the quarterly instalments under the Syndicated $450.0 million Facility for the tranches relating to the vessels Catherine C, Greenland, Interasia Accelerate, and Interasia Amplify, amounting to $3.3 million, we also prepaid in full the outstanding principal amount of $213.8 million. On June 2, 2026, we prepaid in full the outstanding principal amount of $114.6 million under the Syndicated $450.0 million Facility relating to the vessels Greenville and Greenfield, in conjunction with the scheduled quarterly instalments of $1.8 million. Following these repayments, no amounts remain outstanding under this facility.

In January 2026, we drew down the $80.0 million available under a Japanese operating lease agreement with a call option for the newbuilding container vessel Greenhouse. In March 2026, we entered into six additional Japanese operating lease agreements with call options (collectively, the “JOLCO Facilities”), providing for aggregate financing of up to $578.0 million, to finance six container vessels. In March 2026, we drew down an aggregate of $271.0 million under the facilities relating to three of these vessels. In April 2026, an additional $100.0 million was drawn down under the facility relating to one vessel, and in June 2026, we drew down the remaining $207.0 million under the facilities relating to the remaining two vessels. In May 2026, we entered into three additional Japanese operating lease agreements with call options, providing for aggregate financing of up to $236.0 million for the financing of three newbuilding container vessels expected to be delivered in the second and third quarters of 2027.

In June 2026, we entered into a loan facility with KfW IPEX-Bank GmbH providing for aggregate financing of up to $132.0 million for the financing of six newbuilding container vessels of 1,800 TEU each, with expected drawdowns between December 2027 and March 2029.

As of June 30, 2026, we had cash and cash equivalents of $1,008.3 million. As of June 30, 2026, we had $225.0 million of remaining borrowing availability under our Citibank $382.5 mil. Revolving Credit Facility, the availability under which reduces on a quarterly basis through maturity in December 2027, $236.0 million under the JOLCO Facilities, $132.0 million under the KfW IPEX-Bank facility and $850.0 million of remaining borrowing availability under our Syndicated $850.0 million Facility.

As of June 30, 2026, we had $1,232.7 million of outstanding indebtedness (gross of deferred finance costs), including $500.0 million relating to our 6.875% Senior Notes, as discussed above. As of June 30, 2026, we were obligated to make quarterly fixed amortization payments, totaling $26.6 million to June 30, 2027, related to the long-term bank debt. We are also obligated to make certain payments to our Manager and Danaos Chartering under our management agreements.

From 2022 through the end of the second quarter of 2026, we entered into contracts for the construction of a total of 37 containerships aggregating 242,948 TEUs in capacity for an aggregate purchase price of $2.8 billion and four Newcastlemax drybulk vessels aggregating approximately 844,000 DWT in capacity. As of June 30, 2026, eight of the newbuilding containerships had been delivered to us.

In early May 2026, we added two 5,000 TEU containership vessels to our order book, scheduled for delivery in 2027. As of June 30, 2026, the aggregate contracted purchase price of the 29 container vessels and the four drybulk vessels under construction amounted to $2,484.3 million, out of which $284.3 million, $190.0 million, $174.5 million and $28.3 million was paid in the six months ended June 30, 2026 and in the years ended December 31, 2025, 2024 and 2023, respectively. As of June 30, 2026, the future remaining contractual commitments for the 29 container and the four drybulk vessels under construction were as follows (in millions of US$):


Payments due by twelve month period ending:		US$ mil.
June 30, 2027		$	805.1
June 30, 2028			646.9
June 30, 2029			355.2
Total contractual commitments		$	1,807.2

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Additionally, a supervision fee of $850 thousand per newbuilding vessel is payable to Danaos Shipping Company Limited over the construction period starting from steel cutting. Supervision fees totalling $3.0 million and $1.9 million were charged by the Manager and capitalized to the vessels under construction in the six months ended June 30, 2026 and in the year ended December 31, 2025, respectively. Interest expense amounting to $16.3 million and $21.6 million was capitalized to the vessels under construction in the six months ended June 30, 2026 and in the year ended December 31, 2025, respectively.

In July 2026, we took delivery of Hull No. YZJ2023-1556, an 8,258 TEU containership named Santorini Express, which commenced a long-term charter upon delivery, and we drew down $57.75 million under the Syndicated $850.0 million Facility to finance the vessel’s delivery.

Currently, our containership orderbook consists of 28 newbuilding containership vessels with an aggregate capacity of 176,292 TEU with expected deliveries of two vessels in 2026, fifteen vessels in 2027, seven vessels in 2028 and four vessels in 2029. Our drybulk vessel orderbook currently consists of four 211,000 dwt Newcastlemax drybulk carriers, all with expected deliveries in 2028. On a pro forma, fully delivered basis, assuming the delivery of all vessels currently under construction and on order, our fleet would consist of 104 containerships with an aggregate capacity of approximately 662,041 TEUs and 15 drybulk vessels, comprising 11 Capesize bulk carriers and four Newcastlemax bulk carriers, with an aggregate capacity of approximately 2.8 million DWT.

On February 9, 2026, we declared a dividend of $0.90 per share of common stock paid on March 4, 2026 to holders of record as of February 23, 2026, on May 11, 2026, we declared a dividend of $0.90 per share of common stock payable on June 4, 2026, to holders of record on May 26, 2026 and on July 6, 2026, we declared a dividend of $0.90 per share of common stock payable on July 30, 2026, to holders of record on July 21, 2026. We intend to pay a regular quarterly dividend on our common stock, which will have an impact on our liquidity. Payments of dividends are subject to the discretion of our board of directors, provisions of Marshall Islands law affecting the payment of distributions to stockholders and the terms of our credit facilities, which permit the payment of dividends so long as there has been no event of default thereunder nor would occur as a result of such dividend payment, finance leases and 6.875% Senior Notes, which include limitations on the amount of dividends and other restricted payments that we may make, and will be subject to conditions in the container and drybulk shipping industries, our financial performance and us having sufficient available excess cash and distributable reserves.

In June 2022, we announced a share repurchase program of up to $100.0 million of our common stock. A $100.0 million increase to the existing share repurchase program, for a total aggregate amount of $200.0 million, was approved by our Board of Directors on November 10, 2023. On April 14, 2025, following Board approval, we announced the upsizing of its common stock repurchase program by an additional $100.0 million to a total of $300.0 million. As of the date of this report, under the $300.0 million authorized share repurchase program, we have repurchased a total of 3,247,444 shares of our common stock in the open market for $235.1 million. More specifically, we repurchased 60,819 shares of our common stock in the open market for $5.9 million in the six months ended June 30, 2026; 927,527 shares for $76.1 million in the year ended December 31, 2025; 661,103 shares for $53.9 million in the year ended December 31, 2024; 1,131,040 shares for $70.6 million in the year ended December 31, 2023 and 466,955 shares for $28.6 million in the year ended December 31, 2022. All purchases have been made on the open market within the safe harbor provisions of Regulation 10b-18 under the Exchange Act. Under the share repurchase program, shares of our common stock may be purchased in open market or privately negotiated transactions, at times and prices that are considered to be appropriate by us, and the program may be suspended or discontinued at any time.

We may also at any time and from time to time, seek to retire or purchase our outstanding debt securities through cash purchases, in open-market purchases, privately negotiated transactions or otherwise.

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Investments in marketable securities:

Yoda PLC Shares: In April 2026, we entered into an irrevocable share subscription agreement to acquire 45,454,545 newly issued ordinary shares, in Yoda PLC (Ticker: YODA), a Cyprus-listed investment company. Yoda PLC’s portfolio is focused on shipping investments in the LNG and container sectors, real estate and other participations including healthcare. The shares were subscribed at €1.10 per share for total cash consideration of €50.0 million, approximately $58.6 million translated at the EUR/USD exchange rate prevailing at the date of subscription. The subscription was settled by cash payment. We do not hold a seat on Yoda’s Board of Directors and do not exercise significant influence over Yoda’s financial and operating policies. As of June 30, 2026 and as of the date of this report, we own 45,454,545 shares of ordinary shares of YODA. As of June 30, 2026, these marketable securities were fair valued at $67.0 million. We recognized a $8.4 million net gain on these marketable securities reflected under “Gain on investments” in the condensed consolidated statement of income for the six months ended June 30, 2026.

Star Bulk Carriers Corp. Shares: In June 2023, we acquired marketable securities of Eagle Bulk Shipping Inc., which was an owner of bulk carriers listed on the New York Stock Exchange (Ticker: EGLE) consisting of 1,552,865 shares of common stock for $68.2 million (out of which $24.4 million from Virage International Ltd., our related company). On December 11, 2023, Star Bulk Carriers Corp. (Ticker: SBLK) and EGLE announced that both companies had entered into a definitive agreement to combine in an all-stock merger, which was completed on April 9, 2024. Under the terms of the agreement, EGLE shareholders received 2.6211 shares of SBLK common stock in exchange for each share of EGLE common stock owned. As of June 30, 2026 and as of the date of this report, we own 6,256,181 shares of common stock of Star Bulk Carriers Corp., a Nasdaq-listed owner and operator of drybulk vessels. As of June 30, 2026 and December 31, 2025, these marketable securities were fair valued at $156.2 million and $120.2 million, respectively. We recognized a $36.0 million gain and a $17.2 million gain on these marketable securities reflected under “Gain on investments” in the condensed consolidated statements of income for the six months ended June 30, 2026 and in the six months ended June 30, 2025, respectively. Additionally, we recognized dividend income on these shares amounting to $5.4 million in the six months ended June 30, 2026 and $0.7 million for the six months ended June 30, 2025 and reflected under “Dividend income” in the condensed consolidated statements of income.

Investments accounted for under the equity method:

Equity Investment in Alaska LNG Project: In January 2026, we entered into a strategic partnership with Glenfarne Group to advance the Alaska LNG project. This partnership includes our $50.0 million development capital equity investment in Glenfarne Alaska Partners LLC and is accounted for under the equity method of accounting. In addition, Danaos Corporation is also the preferred tonnage provider to construct and operate at least six LNG carriers to deliver LNG to global customers for Glenfarne Alaska LNG, LLC, majority owner and developer of the Alaska LNG Project. We do not control the investee and do not participate in its management or policy-making activities. As of June 30, 2026, we have funded $12.5 million of the total committed equity investment in Glenfarne Alaska Partners LLC. The remaining commitment of $37.5 million is expected to be drawn over time in accordance with the terms of the partnership agreement. Our share of losses in this investment amounted to $0.1 million for the six months ended June 30, 2026, and is presented under “Loss on equity investments” in the condensed consolidated statements of income.

Equity Investment in Carbon Termination Technologies Corporation: In March 2023, we invested $4.3 million in the common shares of a newly established company, Carbon Termination Technologies Corporation (“CTTC”), incorporated in the Republic of the Marshall Islands, which engages in research and development of decarbonization technologies for the shipping industry. This investment represents a 49% ownership interest and is accounted for under the equity method of accounting. In 2024 and 2025, we provided an additional funding of approximately $2.5 million to CTTC which bears interest at a rate of SOFR plus a margin of 2.0% and pursuant to an amendment executed on October 3, 2025, with a maturity date of December 31, 2026. On March 10, 2026, we provided an additional $0.4 million to CTTC under the existing facility. Our share of CTTC’s expenses amounted to $0.7 million and $0.6 million for the six months ended June 30, 2026 and 2025, respectively, and is presented under “Loss on equity investments” in the condensed consolidated statements of income.

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Impact of Inflation and Interest Rates Risk on our Business

We continue to see near-term impacts on our business due to elevated inflation in the United States of America, Eurozone and other countries, including ongoing global price pressures, which continue to affect our operating expenses to a moderate extent. Interest rates have increased rapidly and substantially as central banks in developed countries raised interest rates in an effort to subdue inflation. The eventual long-term implications of tight monetary policy, and higher long-term interest rates may continue to drive a higher cost of capital for our business, including because borrowings under our credit facilities are advanced at a floating rate based on SOFR and we do not have any interest rate hedging arrangements.

Tariffs

Trade protectionism, including in the form of tariffs, could significantly adversely affect global economic conditions, global trade volume and the demand for seaborne transportation of containerized cargo. In April 2025, the United States imposed blanket 10% tariffs on virtually all imports to the U.S. and significantly higher tariffs applicable to imports from many countries, including tariffs aggregating over 100% on imports from China, as well as tariffs on specific goods which have resulted in other countries imposing additional tariffs, including substantial additional tariffs on imports from the U.S., announced by China, and is likely to continue to result in more retaliatory tariffs. On April 9, 2025, the U.S. announced a temporary pause on its tariffs applicable to many countries, while increasing the tariffs applicable to imports from China, with the U.S. subsequently announcing the imposition of substantial tariffs, well in excess of the blanket 10% tariff threshold previously announced, on numerous countries and specific goods effective from August 1, 2025. A ruling by the U.S. Supreme Court in February 2026 invalidated many of the tariffs imposed by the U.S. administration in 2025, however, the U.S. administration has subsequently imposed new tariffs based on different statutory authority. The U.S. administration has and is expected to continue to broadly impose tariffs, which has led, and could lead to further, corresponding punitive actions by the countries with which the U.S. trades.

In April 2025, the U.S. also announced that it would impose additional port fees on (1) Chinese-owned ships of $50 per net ton for the arriving vessel commencing October 14, 2025, increasing to $80 per net ton on April 17, 2026, $110 per net ton on April 17, 2027 and $140 per net ton on April 17, 2028 and (2) operators of Chinese-built vessels of $18 per net ton ($120 per container, if applicable) commencing October 14, 2025, increasing to $23 per net ton ($153 per container, if applicable) on April 17, 2026, $28 per net ton ($195 per container, if applicable) on April 17, 2027 and $33 per net ton ($250 per container, if applicable) on April 17, 2028. On October 10, 2025, China announced port fees, effective October 14, 2025, on vessels built in the U.S., flying the U.S. flag or owned or operated by U.S. enterprises, other organizations, or individuals, including those in which U.S. enterprises, other organizations, or individuals directly or indirectly hold 25% or more of the equity (voting rights or board seats), in the following amounts: per voyage: (1) from October 14, 2025: RMB 400 per net ton; (2) from April 17, 2026: RMB 640 per net ton; (3) from April 17, 2027: RMB 880 per net ton; and (4) from April 17, 2028: RMB 1,120 per net ton. The U.S. and Chinese fees are each charged up to five times per year, per vessel. On October 30, 2025, the U.S. and China each announced that these port fees would be suspended for a one-year period. It is unknown the effect that these port fees, the implementation of which remains unclear, will have on us and our fleet or our industry generally. It is unknown the effect that these proposed new port fees, whether adopted in the form proposed or with modifications, will have on us and our fleet, which includes a number of Chinese-built vessels and newbuildings, or our industry generally.

These policy pronouncements have created significant uncertainty about the future relationship between the United States and China, Canada, Mexico, the EU and other exporting countries, including with respect to trade policies, treaties, government regulations and tariffs, and has led to concerns regarding the potential for an extended trade war. While the ultimate impact such developments, or the perception they may occur, will have on our industry and our business is currently unknown, such developments may have a material adverse effect on global economic conditions, and may significantly reduce global trade, which could adversely and materially affect freight rates and charter rates for our containerships to the extent we are seeking employment for our vessels and therefore our business, results of operations, and financial condition.

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Middle East Conflict

In March 2026, the outbreak of war in the Middle East between Iran and the U.S. and Israel, including strikes by Iran on energy infrastructure in a number of other Middle Eastern countries and related disruption of shipping in the Persian Gulf and the effective closure of the Strait of Hormuz, has resulted in a sharp increase in oil prices and concerns that the supply of crude oil, LNG and related energy products may be significantly constrained for some period of time. On April 7, 2026, a two-week ceasefire in the war between Iran and the U.S. and Israel was announced, which was subsequently extended on a number of occasions culminating in a memorandum of understanding being entered into to, among other things, open the Strait of Hormuz and serve as basis for the negotiation of a definitive agreement to end the war. However, subsequently the Strait of Hormuz has again effectively closed after a brief period of increased ship transits and armed hostilities have resumed for periods of time. Whether a ceasefire will be reimposed, hold or be further extended, or whether an end to the conflict can be achieved, is uncertain. Houthis have also recently increased the frequency of their attacks on ships and threatened to attempt to close the Red Sea to ship transits.

The impact of this conflict on global demand for seaborne transportation of containerized and drybulk cargoes and global trading patterns for container and drybulk vessels, which initially has been limited, is uncertain, however if the high prices and volatility in the energy market persist, it could ultimately adversely affect global economic growth, which in turn could adversely affect container and drybulk vessel demand and our business. The foregoing risks should be read together with the tariff-related uncertainties described above, as both represent sources of potential disruption to global trade and economic activity.

Segments

Since the acquisition of the drybulk vessels in 2023, for management purposes, we are organized based on operating revenues generated from container vessels and drybulk vessels and have two reporting segments: (1) a container vessels segment and (2) a drybulk vessels segment. The container vessels segment owns and operates container vessels which are primarily chartered on multi-year, fixed-rate time charter and bareboat charter agreements. The drybulk vessels segment owns and operates drybulk vessels to provide drybulk commodities transportation services.

The chief operating decision maker (“CODM”) is our Chief Executive Officer. The CODM monitors and assesses the performance of the container vessels segment and the drybulk vessels segment based on each segment’s net income. The CODM uses segment net income to evaluate the overall profitability of each segment on a consistent basis, identify trends in segment-level operating performance, and make decisions regarding the allocation of capital between the two segments. Items included in the applicable segment’s net income are directly allocated to the extent that the items are directly or indirectly attributable to the segments. With regards to the items that are allocated by indirect calculations, their allocation is commensurate to the utilization of key resources. Other segment items include components that are not allocated to any of our reportable segments and include equity investments accounted for using the equity method of accounting and investments in marketable securities. These items are reviewed by the CODM at the consolidated level and are not considered in the evaluation of individual segment performance.

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The following table summarizes our selected financial information for the six months ended June 30, 2026, by segment (in thousands of US$):


		Container			Drybulk vessels
Income Statement Metrics for the six months ended June 30, 2026 ⁽¹⁾		vessels segment			segment			Total

		(in ‘000s of US$)
Operating revenues		$	468,200		$	59,868		$	528,068
Voyage expenses			(13,773)			(14,776)			(28,549)
Vessel operating expenses			(91,959)			(14,713)			(106,672)
Depreciation			(75,419)			(7,220)			(82,639)
Amortization of deferred drydocking and special survey costs			(16,640)			(6,142)			(22,782)
Interest income (excluding interest income from equity investments)			14,875			—			14,875
Interest expense and finance costs			(19,986)			—			(19,986)
Loss on debt extinguishment			(6,027)			—			(6,027)
Other segment items ⁽²⁾			(29,914)			(3,210)			(33,124)
Net Income per segment		$	229,357		$	13,807		$	243,164
Gain on investments, dividend income, interest income from equity investment and loss on equity investments									49,072
Net Income								$	292,236

(1)	In the table below, the significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2)	Other segment items for each reportable segment include general and administrative expenses, other finance expenses, other (expenses)/income, net, and loss on derivatives.

The following table summarizes our selected balance sheet metrics as of June 30, 2026, by segment (in thousands of US$):


		Container			Drybulk vessels
Balance Sheet Metrics as of June 30, 2026		vessels segment			segment			Total

		(in ‘000s of US$)
Total Assets per segment		$	4,865,518		$	358,883		$	5,224,401
Marketable Securities ⁽¹⁾									223,176
Receivable from equity investments ⁽¹⁾									57
Total Assets								$	5,447,634

(1)	Reflected under “Other current assets” in the condensed consolidated balance sheet.

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The following table summarizes our selected income statement metrics for the six months ended June 30, 2025, by segment (in thousands of US$):


		Container			Drybulk
Income Statement Metrics for the six months ended June 30, 2025 ⁽¹⁾		vessels segment			vessels segment			Total

		(in ‘000s of US$)
Operating revenues		$	475,636		$	39,825		$	515,461
Voyage expenses			(17,734)			(17,211)			(34,945)
Vessel operating expenses			(92,571)			(15,516)			(108,087)
Depreciation			(74,154)			(6,572)			(80,726)
Amortization of deferred drydocking and special survey costs			(18,252)			(4,233)			(22,485)
Interest income (excluding interest income from equity investments)			7,208			—			7,208
Interest expense and finance costs			(19,714)			—			(19,714)
Other segment items ⁽²⁾			(25,481)			(2,569)			(28,050)
Net Income per segment		$	234,938		$	(6,276)		$	228,662
Gain on investments, dividend income, interest income from equity investments and loss on equity investments									17,389
Net Income								$	246,051

(1)	In the table below, the significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2)	Other segment items for each reportable segment include general and administrative expenses, other finance expenses, other (expenses)/income, net, and loss on derivatives.

The following table summarizes the our selected balance sheet metrics as of December 31, 2025, by segment (in thousands of US$):


		Container			Drybulk
Balance Sheet Metrics as of December 31, 2025		vessels segment			vessels segment			Total

		(in ‘000s of US$)
Total Assets per segment		$	4,717,465		$	275,965		$	4,993,430
Marketable Securities ⁽¹⁾									120,244
Receivable from equity investments ⁽¹⁾									256
Total Assets								$	5,113,930

(1)	Reflected under “Other current assets” in the condensed consolidated balance sheet.

Cash Flows


		Six months			Six months
		ended			ended
		June 30, 2026			June 30, 2025
		(in ‘000s of US$)			(in ‘000s of US$)
Net cash provided by operating activities		$	367,496		$	296,639
Net cash used in investing activities		$	(400,770)		$	(135,610)
Net cash provided by/(used in) financing activities		$	4,250		$	(68,249)

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities increased by $70.9 million, to $367.5 million provided by operating activities in the six months ended June 30, 2026 compared to $296.6 million provided by operating activities in the six months ended June 30, 2025. The increase was the combined result of: (i) a $33.2 million increase in cash operating revenues, (ii) a $15.3 million positive change in working capital, (iii) an $12.1 million increase in interest income, (iv) a $4.8 million increase in dividend income from investments, (v) a $4.9 million decrease in dry-docking expenses, and, (vi) a $2.4 million decrease in total operating expenses, partially offset by a $1.8 million increase in net finance costs.

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Net Cash Used in Investing Activities

Net cash flows used in investing activities increased by $265.2 million, to $400.8 million used in investing activities in the six months ended June 30, 2026 compared to $135.6 million used in investing activities in the six months ended June 30, 2025. The increase was the combined result of: (i) a $202.0 million increase in payments for vessels under construction, (ii) a $21.7 million increase in payments for vessel acquisition, (iii) a $41.2 million increase in equity investments, and (iv) a $1.7 million decrease in net proceeds and insurance proceeds from disposal of vessels, partially offset by a $1.4 million decrease in vessel cost additions.

Net Cash Provided by/(Used in) Financing Activities

Net cash flows provided by/(used in) financing activities increased by $72.5 million, to a net cash inflow of $4.3 million in the six months ended June 30, 2026, compared to a net cash outflow of $68.2 million in the six months ended June 30, 2025. This increase was the combined result of: (i) a $614.0 million increase in proceeds from long-term debt, (ii) a $46.4 million decrease in repurchases of our common stock, and (iii) a $6.4 million decrease in regular debt repayments, partially offset by: (i) a $591.2 million increase in early repayment of long-term debt and senior notes due 2028, (ii) a $1.8 million increase in finance costs paid, and (iii) a $1.3 million increase in dividend payments on our common stock.

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). Management believes, however, that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating our performance. See the table below for supplemental financial data and corresponding reconciliation to GAAP financial measures. The non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented below may not be comparable to similarly titled measures of other companies in the shipping or other industries.

EBITDA and Adjusted EBITDA

EBITDA represents net income before interest income and expense, depreciation, as well as amortization of deferred drydocking & special survey costs, amortization of deferred realized losses of cash flow interest rate swaps, amortization of finance costs, commitment fees and debt discount. Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of deferred realized losses of cash flow interest rate swaps, amortization of finance costs, commitment fees and debt discount, change in fair value of investments, stock-based compensation of executives and employees and loss on debt extinguishment. We believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. EBITDA and Adjusted EBITDA are also used: (i) by prospective and current customers as well as potential lenders to evaluate potential transactions; and (ii) to evaluate and price potential acquisition candidates. Our EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.

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EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA/Adjusted EBITDA does not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA/Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Because of these limitations, EBITDA/Adjusted EBITDA should not be considered as principal indicators of our performance.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA


		Six months			Six months
		ended			ended
		June 30, 2026			June 30, 2025
		(in ‘000s of US$)			(in ‘000s of US$)
Net income		$	292,236		$	246,051
Depreciation			82,639			80,726
Amortization of deferred drydocking & special survey costs			22,782			22,485
Amortization of deferred losses of cash flow interest rate swaps			1,796			1,796
Amortization of finance costs, commitment fees and debt discount			2,723			2,685
Interest income			(14,958)			(7,266)
Interest expense			18,221			18,169
EBITDA			405,439			364,646
Gain on investments			(44,357)			(17,217)
Loss on debt extinguishment			6,027			—
Stock based compensation			284			285
Adjusted EBITDA		$	367,393		$	347,714

EBITDA increased by $40.8 million, to $405.4 million in the six months ended June 30, 2026 from $364.6 million in the six months ended June 30, 2025. The increase was primarily attributable to: (i) a $27.1 million increase in fair value gain on investments, (ii) a $12.6 million increase in operating revenues, (iii) a $4.8 million increase in dividends received, (iii) a $2.6 million decrease in total operating expenses, partially offset by: (i) a $6.0 million increase in loss on debt extinguishment, and ii) a $0.3 million increase in loss on equity investments.

Adjusted EBITDA increased by 5.7%, or $19.7 million, to $367.4 million for the six months ended June 30, 2026, from $347.7 million for the six months ended June 30, 2025. The increase was primarily attributable to (i) a $12.6 million increase in operating revenues, (ii) a $4.8 million increase in dividends received, (iii) a $2.6 million decrease in total operating expenses, partially offset by a $0.3 million increase in loss on equity investments.

Adjusted EBITDA for the six months ended June 30, 2026 is adjusted for (i) a $44.4 million gain from the change in fair value of investments, (ii) a $6.0 million of loss on debt extinguishment and (iii) stock based compensation of $0.3 million.

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Net Income Reconciliation to Adjusted EBITDA per segment (in thousands of US$):


		Six months ended												Six months ended
		June 30, 2026												June 30, 2025
		Container			Drybulk									Container			Drybulk
		Vessels			Vessels			Other			Total			Vessels			Vessels			Other			Total

		(in ‘000s of US$)												(in ‘000s of US$)
Net income/(loss)		$	229,357		$	13,807		$	49,072		$	292,236		$	234,938		$	(6,276)		$	17,389		$	246,051
Depreciation			75,419			7,220			—			82,639			74,154			6,572			—			80,726
Amortization of deferred drydocking & special survey costs			16,640			6,142			—			22,782			18,252			4,233			—			22,485
Amortization of deferred finance costs, commitment fees and debt discount			2,723			—			—			2,723			2,685			—			—			2,685
Amortization of deferred realized losses on interest rate swaps			1,796			—			—			1,796			1,796			—			—			1,796
Interest income			(14,875)			—			(83)			(14,958)			(7,208)			—			(58)			(7,266)
Interest expense excluding amortization of finance costs			18,221			—			—			18,221			18,169			—			—			18,169
Change in fair value of investments			—			—			(44,357)			(44,357)			—			—			(17,217)			(17,217)
Stock based compensation of executives and employees			265			19			—			284			265			20			—			285
Loss on debt extinguishment			6,027			—			—			6,027			—			—			—			—
Adjusted EBITDA⁽¹⁾		$	335,573		$	27,188		$	4,632		$	367,393		$	343,051		$	4,549		$	114		$	347,714

Time Charter Equivalent Revenues and Time Charter Equivalent US$/day per segment

Time charter equivalent revenues is a non-GAAP measure and represents operating revenues less voyage expenses excluding commissions, presented per container vessels segment and drybulk vessels segment separately. We include time charter equivalent revenues as it provides additional meaningful information in conjunction with operating revenues, the most directly comparable GAAP measure, and it assists our management in making decisions regarding the deployment and use of our operating vessels and assists investors and our management in evaluating our financial performance.

Time charter equivalent US$/per day (“TCE rate”) is a metric calculated by dividing time charter equivalent revenues of each segment by operating days of each segment. Operating days of each segment is calculated by deducting vessel off-hire days of each segment from total ownership days of each segment. TCE rate reflects the average daily net revenue performance of our vessels in each segment, derived from time charter equivalent revenues, a non-GAAP measure as described above. TCE rate is a standard shipping industry performance measure used primarily to compare period to period changes in a shipping company’s performance despite changes in the mix of charter types, i.e., voyage charters, time charters and bareboat charters, under which its vessels may be employed between the periods. Our method of computing TCE rate may not necessarily be comparable to TCE rates of other companies due to differences in methods of calculation. We include TCE rate, a non-GAAP measure, as it assists our management in making decisions regarding the deployment and use of our operating vessels and assists investors and our management in evaluating our financial performance.

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		Three months			Three months			Six months			Six months
		ended			ended			ended			ended
		June 30,			June 30,			June 30,			June 30,
Container Vessels Fleet Utilization (No. of Days)		2026			2025			2026			2025
Ownership Days			6,825			6,734			13,575			13,371
Less Off-hire Days:
Scheduled Off-hire Days			(93)			(103)			(239)			(270)
Other Off-hire Days			(64)			(8)			(73)			(27)
Operating Days⁽¹⁾			6,668			6,623			13,263			13,074
Vessel Utilization⁽²⁾			97.7	%		98.4	%		97.7	%		97.8	%

Operating Revenues (in ‘000s of US$)		$	238,650		$	239,446		$	468,200		$	475,636
Less: Voyage (Expenses)/ Income excluding commissions (in ‘000s of US$)		$	(1,791)		$	(442)		$	2,810		$	(749)
Time Charter Equivalent Revenues (in ‘000s of US$)		$	236,859		$	239,004		$	471,010		$	474,887
Time Charter Equivalent US$/per day⁽³⁾		$	35,522		$	36,087		$	35,513		$	36,323


		Three months			Three months			Six months			Six months
		ended			ended			ended			ended
		June 30,			June 30,			June 30,			June 30,
Drybulk Vessels Fleet Utilization (No. of Days)		2026			2025			2026			2025
Ownership Days			1,001			910			1,914			1,810
Less Off-hire Days:
Scheduled Off-hire Days			—			—			(163)			(56)
Other Off-hire Days			(5)			(2)			(6)			(14)
Operating Days⁽¹⁾			996			908			1,745			1,740
Vessel Utilization⁽²⁾			99.5	%		99.8	%		91.2	%		96.1	%

Operating Revenues (in ‘000s of US$)		$	35,720		$	22,708		$	59,868		$	39,825
Less: Voyage Expenses excluding commissions (in ‘000s of US$)		$	(5,441)		$	(6,424)		$	(10,995)		$	(14,794)
Time Charter Equivalent Revenues (in ‘000s of US$)		$	30,279		$	16,284		$	48,873		$	25,031
Time Charter Equivalent US$/per day⁽³⁾		$	30,401		$	17,934		$	28,007		$	14,386

(1)

We define Operating Days as the total number of Ownership Days net of Scheduled off-hire days (days associated with scheduled repairs, drydockings or special or intermediate surveys or days) and net of off-hire days associated with unscheduled repairs or days waiting to find employment but including days our vessels were sailing for repositioning. The shipping industry uses Operating Days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes. Our definition of Operating Days may not be comparable to that used by other companies in the shipping industry.

(2)	Vessel utilization is calculated by dividing Operating Days by Ownership Days.

(3)

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Credit Facilities

We, as borrower or guarantor, and certain of our subsidiaries, as borrowers or guarantors, have entered into a number of credit facilities in connection with financing the acquisition of certain vessels in our fleet. Our existing credit facilities are secured by, among other things, our vessels (as described below). The following summarizes certain terms of our credit facilities and our unsecured 6.875% Senior Notes as of June 30, 2026:


		Outstanding
		Principal
		Amount
Credit Facility		(in millions of US$)			Collateral Vessels and Under Construction Hulls
Citibank $382.5 mil. Revolving Credit Facility		$	—		Kota Plumbago, Speed, Ambition, Pusan C, Le Havre, Europe, America, CMA CGM Musset, CMA CGM Rabelais, CMA CGM Nerval, YM Maturity and YM Mandate
Syndicated $850.0 mil. Facility⁽¹⁾		$	—		Hull No. YZJ2023-1556, Hull No. YZJ2023-1557, Hull No. YZJ2024-1612, Hull No. YZJ2024-1613, Hull No. YZJ2024-1625, Hull No. YZJ2024-1626, Hull No. YZJ2024-1668, Hull No. C9200-7, Hull No. C9200-8, Hull No. C9200-9, Hull No. C9200-10, Hull No. C9200-11, Hull No. H2596 and Hull No. H2597
JOLCO Facilities⁽²⁾		$	732.7		Phoebe, Greenhouse, Interasia Accelerate, Interasia Amplify, Catherine C, Greenland, Greenville and Greenfield
KfW IPEX-Bank		$	—		Hull No. S1162, Hull No. S1163, Hull No. S1164, Hull No. S1165, Hull No. S1166 and Hull No. S1167
6.875% Senior Notes		$	500.0		None

(1)	In July 2026, we drew down $57.75 million under the Syndicated $850.0 mil. Facility in connection with the delivery of the newbuilding vessel Santorini Express.

(2)	In May 2026, we entered into three additional JOLCO facilities for the financing of the Hull No. CV5900-09, the Hull No. C7100-9 and the Hull No. C7100-10, providing for aggregate financing of up to $236.0 million with expected delivery dates in the second and third quarters of 2027.

As of June 30, 2026, there was $225.0 million of remaining borrowing availability under our Citibank $382.5 mil. Revolving Credit Facility, $850.0 million under the Syndicated $850.0 mil. Facility, $236.0 million under the JOLCO Facilities and $132.0 million under the KfW IPEX-Bank facility. See Note 9 “Long-term Debt, net” to our unaudited condensed consolidated financial statements included in this report for additional information regarding our outstanding debt and the related repayment schedule.

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Senior Notes

On October 16, 2025, we consummated an offering of $500 million aggregate principal amount of 6.875% Senior Notes due 2032, which we refer to as 6.875% Senior Notes or the 6.875% Senior Unsecured Notes Due 2032. The 6.875% Senior Notes are general senior unsecured obligations of Danaos Corporation. The 6.875% Senior Notes were issued pursuant to an Indenture, dated as of October 16, 2025, between Danaos Corporation and Citibank, N.A., London Branch, as trustee, paying agent, registrar and transfer agent (the “Indenture”). The 6.875% Senior Notes bear interest at a rate of 6.875% per year, payable in cash on March 1 and September 1 of each year, commencing March 1, 2026. The 6.875% Senior Notes will mature on October 15, 2032. For additional details regarding the Senior Notes please refer to Note 9, “Long-term Debt, net” in the unaudited condensed consolidated financial statements included elsewhere in this report and “Item 5. Operating and Financial Review and Prospects–Senior Notes” in our Annual Report on Form 20-F for the year ended December 31, 2025 filed with the Securities and Exchange Commission on February 27, 2026.

Qualitative and Quantitative Disclosures about Market Risk

Foreign Currency Exchange Risk

We did not enter into derivative instruments to hedge the foreign currency translation of assets or liabilities or foreign currency transactions during the six months ended June 30, 2026 and June 30, 2025. In April 2026, we invested approximately $58.6 million in cash to acquire the Yoda PLC equity investment denominated in Euro, as described above in the “Liquidity and Capital Resources” section. This investment is measured at fair value through net income under ASC 321, and its USD carrying value is subject to EUR/USD exchange rate fluctuations. We have not entered into any hedging instruments with respect to this exposure.

Impact of Inflation and Interest Rates Risk on our Business

We continue to see near-term impacts on our business due to elevated inflation in the United States of America, Eurozone and other countries, including ongoing global prices pressures in the wake of the war in Ukraine, driving up energy and commodity prices, which continue to affect our operating expenses to a moderate extent. Interest rates have increased rapidly and substantially as central banks in developed countries raise interest rates in an effort to subdue inflation. The eventual implications of tighter monetary policy, and potentially higher long-term interest rates may drive a higher cost of capital for our business, including because borrowings under our credit facilities, which are increasing as we fund the cost of our contracted container vessel newbuildings, are advanced at a floating rate based on SOFR and we do not have any interest rate hedging arrangements.

In the past, we entered into interest rate swap agreements converting floating interest rate exposure into fixed interest rates in order to hedge our exposure to fluctuations in prevailing market interest rates, as well as interest rate swap agreements converting the fixed rate we paid in connection with certain of our credit facilities into floating interest rates in order to economically hedge the fair value of the fixed rate credit facilities against fluctuations in prevailing market interest rates. All of these interest rate swap agreements have expired and we do not currently have any outstanding interest rate swap agreements. Refer to Note 10, “Financial Instruments”, to our unaudited condensed consolidated financial statements included in this report.

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Capitalization and Indebtedness

The table below sets forth our consolidated capitalization as of June 30, 2026:

●

on an actual basis; and

●

on an as adjusted basis to reflect, in the period from July 1, 2026 to August 3, 2026: (i) the drawdown of $57.75 million for the newbuilding vessel Santorini Express and (ii) the dividend payment of $16.4 million for the second quarter of 2026 on July 30, 2026 to shareholders of record as of July 21, 2026.

Other than these adjustments, there have been no other material changes to our capitalization from debt or equity issuances, re-capitalizations, special dividends, or debt repayments as adjusted in the table below between July 1, 2026 and August 3, 2026.


		As of June 30, 2026
		Actual			As adjusted

		In thousands of US$
Debt:
Senior unsecured notes due 2032		$	500,000		$	500,000
Citibank $382.5 mil. Revolving Credit Facility			—			—
Syndicated $850.0 mil. Facility			—			57,750
KfW $132.0 mil. Facility			—			—
JOLCO Facilities			732,725			732,725
Total debt ^{(1) (2)}		$	1,232,725		$	1,290,475
Stockholders’ equity:
Preferred stock, par value $0.01 per share; 100,000,000 preferred shares authorized and none issued; actual and as adjusted			—			—
Common stock, par value $0.01 per share; 750,000,000 shares authorized; 25,790,282 shares issued and 18,203,567 shares outstanding			182			182
Additional paid-in capital			590,457			590,457
Accumulated other comprehensive loss			(68,522)			(68,522)
Retained earnings			3,534,692			3,518,309
Total stockholders’ equity			4,056,809			4,040,426
Total capitalization		$	5,289,534		$	5,330,901

(1)

All of the indebtedness reflected in the table, other than Danaos Corporation’s unsecured senior notes due 2032 ($500.0 million on an actual basis), is secured and guaranteed by Danaos Corporation. See Note 9 “Long-Term Debt, net” to our unaudited condensed consolidated financial statements included elsewhere in this report.

(2)	Total debt is presented gross of deferred finance costs and debt discount, which amounted to $22.0 million.

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Our Fleet

The following table describes in detail the deployment profile of our 76 container vessels as of August 3, 2026:


Vessel Details				Charter Arrangements
		Year	Size	Expiration of	Contracted Employment	Charter			Extension Options ⁽⁴⁾
Vessel Name		Built	(TEU)	Charter ⁽¹⁾	through ⁽²⁾	Rate ⁽³⁾			Period		Charter Rate
Ambition		2012	13,100	April 2027	April 2027	$	51,500		+ 6 months		$	51,500
									+ 10.5 to 13.5 months		$	51,500
									+ 9 to 12 months		$	51,500
Speed		2012	13,100	March 2027	March 2027	$	51,500		+ 6 months		$	51,500
									+ 10.5 to 13.5 months		$	51,500
									+ 9 to 12 months		$	51,500
Kota Plumbago		2012	13,100	July 2027	July 2027	$	54,000		+ 3 to 26 months		$	54,000
Kota Primrose		2012	13,100	April 2027	April 2027	$	54,000		+ 3 to 26 months		$	54,000
Kota Peony		2012	13,100	March 2027	March 2027	$	54,000		+ 3 to 26 months		$	54,000
Express Rome		2011	10,100	August 2030	August 2027	$	70,000
					August 2030	$	35,000		+ 2 months		$	35,000
Express Berlin		2011	10,100	March 2029	March 2029	$	45,000
Express Athens		2011	10,100	August 2027	August 2027	$	70,000
				July 2030	July 2030	$	35,000		+ 2 months		$	35,000
Le Havre		2006	9,580	August 2031	August 2028	$	58,500
					August 2031	$	41,000		+ 3 months		$	41,000
Pusan C		2006	9,580	July 2031	July 2028	$	58,500
					July 2031	$	41,000		+ 3 months		$	41,000
Bremen		2009	9,012	March 2031	March 2028	$	56,000
					March 2031	$	39,000		+ 3 months		$	39,000
C Hamburg		2009	9,012	March 2031	March 2028	$	56,000
					March 2031	$	39,000		+ 3 months		$	39,000
Niledutch Lion		2008	8,626	August 2026	August 2026	$	47,500
				July 2029	July 2029	$	40,000
Belita		2006	8,533	June 2031	July 2028	$	37,000
					June 2031	$	34,500		+ 3 months		$	34,500
									+ 10.5 months		$	34,500
Kota Manzanillo		2005	8,533	December 2028	December 2028	$	39,300		+ 4 months		$	39,300
									+ 9 to 11 months		$	39,300
CMA CGM Melisande		2012	8,530	January 2032	January 2032	$	34,500		+ 3 months		$	34,500
									+ 10.5 months		$	34,500
CMA CGM Attila		2011	8,530	May 2031	May 2031	$	34,500		+ 3 months		$	34,500
									+ 10.5 months		$	34,500
CMA CGM Tancredi		2011	8,530	July 2031	July 2031	$	34,500		+ 3 months		$	34,500
									+ 10.5 months		$	34,500
CMA CGM Bianca		2011	8,530	September 2031	September 2031	$	34,500		+ 3 months		$	34,500
									+ 10.5 months		$	34,500
CMA CGM Samson		2011	8,530	November 2031	November 2031	$	34,500		+ 3 months		$	34,500
									+ 10.5 months		$	34,500
America		2004	8,468	June 2031	June 2028	$	56,000
					June 2031	$	37,000		+ 3 months		$	37,000
Europe		2004	8,468	July 2031	July 2028	$	56,000
					July 2031	$	37,000		+ 3 months		$	37,000
Kota Santos		2005	8,463	June 2029	August 2026	$	50,000
					June 2029	$	39,300		+ 4 months		$	39,300
									+ 9 to 11 months		$	39,300
Santorini Express ⁽⁷⁾		2026	8,258	July 2031	July 2031	$	42,000		+ 3 months		$	42,000
									+ 22.5 months		$	42,000
Catherine C		2024	8,010	June 2029	June 2029	$	42,000		+ 2 months		$	42,000
Greenland		2024	8,010	August 2029	August 2029	$	42,000		+ 2 months		$	42,000
Greenville		2024	8,010	October 2029	October 2029	$	42,000		+ 2 months		$	42,000
Greenfield		2024	8,010	November 2029	November 2029	$	42,000		+ 2 months		$	42,000
Interasia Accelerate		2024	7,165	April 2032	April 2027	$	36,000
					April 2032	$	37,000		+ 6 months		$	37,000
									+ 34 to 38 months		$	37,000
Interasia Amplify		2024	7,165	September 2032	September 2027	$	36,000
					September 2032	$	37,000		+ 6 months		$	37,000
									+ 34 to 38 months		$	37,000
CMA CGM Moliere		2009	6,500	August 2030	March 2027	$	55,000
					August 2030	$	31,500		+ 3 to 13.5 months		$	31,500
CMA CGM Musset		2010	6,500	September 2030	July 2027	$	40,000
					September 2030	$	31,500		+ 3 to 13.5 months		$	31,500
CMA CGM Nerval		2010	6,500	October 2030	November 2027	$	30,000		+ 3 to 13.5 months		$	30,000
CMA CGM Rabelais		2010	6,500	January 2028	January 2028	$	30,000		+ 2 months		$	30,000
Racine		2010	6,500	March 2029	March 2029	$	37,500
YM Mandate		2010	6,500	January 2028	January 2028	$	26,890	(5)	+ 8 months		$	26,890
YM Maturity		2010	6,500	April 2028	April 2028	$	26,890	(5)	+ 8 months		$	26,890
Dimitra C		2002	6,402	May 2028	May 2028	$	35,000		+ 2 months		$	35,000
Savannah		2002	6,402	June 2027	June 2027	$	40,000		+ 3 months		$	40,000
									+ 9 to 12 months		$	30,000

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Vessel Details			Charter Arrangements
	Year	Size	Expiration of	Contracted Employment	Charter		Extension Options ⁽⁴⁾
Vessel Name	Built	(TEU)	Charter ⁽¹⁾	through ⁽²⁾	Rate ⁽³⁾		Period	Charter Rate
Phoebe ⁽⁶⁾	2025	6,014	December 2026	December 2026	$	35,000	+ 4 months	$	32,500
			October 2031	October 2031	$	32,500	+ 9 to 11 months	$	32,500
							+ 10 to 12 months	$	32,500

Greenhouse ⁽⁶⁾	2025	6,014	October 2027	October 2027	$	35,000
			August 2032	August 2032	$	32,500	+ 4 months	$	32,500
							+ 9 to 11 months	$	32,500
							+ 10 to 12 months	$	32,500
Kota Lima	2002	5,544	November 2026	November 2026	$	24,000
			November 2028	November 2028	$	42,500	+ 2 months	$	42,500
Suez Canal	2002	5,610	April 2028	April 2028	$	30,000	+2 months	$	30,000
Wide Alpha	2014	5,466	January 2030	July 2027	$	34,000
				January 2030	$	27,450	+ 4 months	$	27,450
							+ 21.5 to 24 months	$	25,000
Stephanie C	2014	5,466	September 2028	September 2028	$	33,750	+2 months	$	33,750
							+23 to 25 months	$	33,750
Euphrates	2014	5,466	September 2028	September 2028	$	33,750	+2 months	$	33,750
							+23 to 25 months	$	33,750
Wide Hotel	2015	5,466	March 2030	September 2027	$	34,000
				March 2030	$	27,450	+ 4 months	$	27,450
							+ 21.5 to 24 months	$	25,000
Wide India	2015	5,466	October 2028	October 2028	$	33,750	+ 2 months	$	33,750
							+ 23 to 25 months	$	33,750
Wide Juliet	2015	5,466	August 2027	September 2026	$	25,000
				August 2027	$	30,000	+ 2 months	$	30,000
							+ 32 to 36 months	$	30,000
							+ 7 to 10 months	$	29,000
Rio Grande	2008	4,253	November 2026	November 2026	$	30,000
			October 2029	October 2029	$	28,000	+ 2 months	$	28,000
Paolo (ex Merve A)	2008	4,253	November 2027	November 2027	$	26,000	+ 2 months	$	26,000
Kingston	2008	4,253	June 2029	June 2027	$	35,500
				June 2029	$	32,500	+ 2.5 months	$	32,500
Monaco	2009	4,253	May 2029	November 2026	$	30,000
				May 2029	$	33,000	+ 4 months	$	33,000
Dalian	2009	4,253	April 2028	April 2028	$	27,250	+ 3.5 months	$	27,250
Jamaica (ex Luanda)	2009	4,253	August 2028	August 2028	$	35,000	+ 2 months	$	30,000
Seattle C	2007	4,253	December 2026	December 2026	$	30,000
			June 2029	June 2029	$	33,000	+ 4 months	$	33,000
Vancouver	2007	4,253	November 2026	November 2026	$	30,000
			October 2029	October 2029	$	28,000	+ 2 months	$	28,000
Derby D	2004	4,253	December 2029	January 2027	$	36,275
				December 2029	$	28,000	+ 3 months	$	28,000
Tongala	2004	4,253	November 2026	November 2026	$	30,000
			October 2029	October 2029	$	28,000	+ 2 months	$	28,000
Dimitris C	2001	3,430	September 2027	September 2027	$	30,000	+ 3 months	$	30,000
							+ 11 to 13 months	$	30,000
Express Argentina	2010	3,400	September 2029	December 2026	$	27,000
				September 2029	$	26,000	+3 months	$	26,000
Express Brazil	2010	3,400	April 2027	April 2027	$	30,000	+ 3 months	$	30,000
							+ 11 to 13 months	$	30,000
Express France	2010	3,400	July 2027	July 2027	$	30,000	+ 3 months	$	30,000
							+ 11 to 13 months	$	30,000
Express Spain	2011	3,400	September 2029	March 2027	$	28,500
				September 2029	$	28,200	+ 4 months	$	28,200
Express Black Sea	2011	3,400	September 2029	March 2027	$	28,500
				September 2029	$	28,200	+ 4 months	$	28,200
Singapore	2004	3,314	November 2029	May 2027	$	27,750
				November 2029	$	28,200	+ 4 months	$	28,200
Colombo	2004	3,314	September 2029	March 2027	$	28,500
				September 2029	$	28,200	+ 4 months	$	28,200
Zebra	2001	2,602	April 2029	April 2027	$	19,000
				April 2029	$	21,000	+ 2 months	$	21,000
							+ 12 to 14 months	$	20,000
Artotina	2001	2,524	November 2027	November 2027	$	26,000	+ 2 months	$	26,000
							+ 11 to 13 months	$	24,000
Phoenix D	1997	2,200	June 2027	June 2027	$	20,000	+ 1 month	$	20,000
Sprinter	1997	2,200	November 2027	November 2027	$	19,990	+ 0.5 month	$	19,990
Future	1997	2,200	September 2027	September 2027	$	19,990	+ 0.5 month	$	19,990
Advance	1997	2,200	September 2027	September 2027	$	19,990	+ 0.5 month	$	19,990
Bridge	1998	2,200	January 2028	January 2028	$	16,000	+ 2 months	$	16,000
Highway	1998	2,200	January 2028	January 2028	$	17,000	+ 2 months	$	17,000
Progress C	1998	2,200	January 2028	January 2028	$	19,990	+ 0.5 month	$	19,990

(1)	Earliest date charters could expire. Most charters include options for the charterers to extend their terms as described in the “Extension Options” column.

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(2)

This column indicates the date through which the charter rate set forth in the column to the immediate right of such date is payable. For charters with the same charter rate throughout the fixed term of the charter, this date is the same as the charter expiration date set forth in the “Expiration of Charter” column.

(3)	Gross charter rate, which does not include charter commissions.

(4)	At the option of the charterer.

(5)	Bareboat charter rate.

(6)	The newbuilding vessels were delivered in 2025.

(7)	The newbuilding vessel was delivered in July 2026.

The specifications of our 28 container vessels under construction in our orderbook as of August 3, 2026 are as follows:


									Minimum			Extension Options⁽³⁾
		Expected						Expected	Charter	Charter				Charter
Hull Number		Year Built		Size (TEU)		Shipyard		Delivery Period	Duration⁽¹⁾	rate⁽²⁾		Period		Rate⁽²⁾
CV5900-09		2027		6,014		Qingdao Yangfan		Q2 2027	4.8 years	$	34,900	+ 4 months		$	34,900
												+ 9 to 11 months		$	34,900
												+ 10 to 12 months		$	34,900
YZJ2023-1557		2026		8,258		Yangzijiang		Q3 2026	5 years	$	42,000	+ 3 months		$	42,000
						Jiangsu NewYangzi						+ 19.5 to 22.5 months		$	42,000
YZJ2024-1612		2026		8,258		Yangzijiang		Q3 2026	5 years	$	42,000	+ 3 months		$	42,000
						Jiangsu NewYangzi						+ 19.5 to 22.5 months		$	42,000
YZJ2024-1613		2027		8,258		Yangzijiang		Q2 2027	5 years	$	42,000	+ 3 months		$	42,000
						Jiangsu NewYangzi						+ 19.5 to 22.5 months		$	42,000
YZJ2024-1625		2027		8,258		Yangzijiang		Q2 2027	5 years	$	42,000	+ 3 months		$	42,000
						Jiangsu NewYangzi						+ 19.5 to 22.5 months		$	42,000
YZJ2024-1626		2027		8,258		Yangzijiang		Q3 2027	5 years	$	42,000	+ 3 months		$	42,000
						Jiangsu NewYangzi						+ 19.5 to 22.5 months		$	42,000
YZJ2024-1668		2027		8,258		Yangzijiang		Q3 2027	5 years	$	42,000	+ 3 months		$	42,000
						Jiangsu NewYangzi						+ 19.5 to 22.5 months		$	42,000
C9200-7		2027		9,200		Dalian Shanhaiguan		Q1 2027	4.8 years	$	50,000	+ 4 months		$	50,000
												+ 20 to 24 months		$	50,000
C9200-8		2027		9,200		Dalian Shanhaiguan		Q2 2027	4.8 years	$	50,000	+ 4 months		$	50,000
												+ 20 to 24 months		$	50,000
C9200-9		2027		9,200		Dalian Shanhaiguan		Q4 2027	4.8 years	$	50,000	+ 4 months		$	50,000
												+ 20 to 24 months		$	50,000
C9200-10		2028		9,200		Dalian Shanhaiguan		Q2 2028	4.8 years	$	50,000	+ 4 months		$	50,000
												+ 20 to 24 months		$	50,000
C9200-11		2028		9,200		Dalian Shanhaiguan		Q3 2028	4.8 years	$	50,000	+ 4 months		$	50,000
												+ 20 to 24 months		$	50,000
H2596		2027		9,200		CSSC Huangpu		Q3 2027	6 years	$	48,500	+12 months		$	48,500
						Wenchong						+ 28 to 32 months		$	48,500
H2597		2027		9,200		CSSC Huangpu		Q4 2027	6 years	$	48,500	+12 months		$	48,500
						Wenchong						+ 28 to 32 months		$	48,500
C7100-9		2027		7,165		Dalian Shanhaiguan		Q3 2027	5 years	$	38,500	+ 6 months		$	38,500
												+ 34 to 38 months		$	38,500
C7100-10		2027		7,165		Dalian Shanhaiguan		Q3 2027	5 years	$	38,500	+ 6 months		$	38,500
												+ 34 to 38 months		$	38,500
S1162		2027		1,800		Nantong CIMC		Q4 2027	9.9 years	$	16,500	+ 3 months		$	16,500
						Sinopacific						+ 21.5 to 23.5 months		$	16,500
												+ 10 to 12 months		$	16,500
S1163		2028		1,800		Nantong CIMC		Q1 2028	9.9 years	$	16,500	+ 3 months		$	16,500
						Sinopacific						+ 21.5 to 23.5 months		$	16,500
												+ 10 to 12 months		$	16,500
S1164		2028		1,800		Nantong CIMC		Q2 2028	9.9 years	$	16,500	+ 3 months		$	16,500
						Sinopacific						+ 21.5 to 23.5 months		$	16,500
												+ 10 to 12 months		$	16,500
S1165		2028		1,800		Nantong CIMC		Q3 2028	9.9 years	$	16,500	+ 3 months		$	16,500
						Sinopacific						+ 21.5 to 23.5 months		$	16,500
												+ 10 to 12 months		$	16,500
S1166		2028		1,800		Nantong CIMC		Q4 2028	-		-	-			-
						Sinopacific
S1167		2029		1,800		Nantong CIMC		Q1 2029	-		-	-			-
						Sinopacific
H2638		2028		5,300		CSSC Huangpu		Q4 2028	-		-	-			-
						Wenchong
H2639		2029		5,300		CSSC Huangpu		Q1 2029	-		-	-			-
						Wenchong
H2640⁽⁴⁾		2029		5,300		CSSC Huangpu		Q1 2029	-		-	-			-
						Wenchong
H2641⁽⁴⁾		2029		5,300		CSSC Huangpu		Q2 2029	-		-	-			-
						Wenchong
HN NGY0041⁽⁵⁾		2027		5,000		Yangzhou Guoyu		Q2 2027	7.3 years	$	29,800	+ 2 months		$	29,800

HN NGY0042 ⁽⁵⁾		2027		5,000		Yangzhou Guoyu		Q3 2027	7.3 years	$	29,800	+ 2 months		$	29,800

(1)	Earliest period charters could expire. Most charters include options for the charterers to extend their terms as described in the “Extension Options” column.

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(2)	Gross charter rate, which does not include charter commissions.

(3)	At the option of the charterer.

(4)	Under construction containership vessels were added to our orderbook in the first quarter of 2026.

(5)	Under construction containership vessels were added to our orderbook in the second quarter of 2026.

The following table presents details of our 11 Capesize drybulk vessels as of August 3, 2026:


		Year		Capacity
Vessel Name		Built		(DWT) ⁽¹⁾
Genius		2012		175,580
Danaos		2011		176,536
Ingenuity		2011		176,022
Achievement		2011		175,966
Valentine		2011		175,125
Gouverneur		2010		178,043
Integrity		2010		175,966
Peace		2010		175,858
E Trader		2009		175,886
W Trader		2009		175,879
John Junior (ex. Hebei No.1)⁽²⁾		2009		182,425

(1)	DWT, dead weight tons, the international standard measure for drybulk vessels capacity.

(2)	The vessel was delivered to us in the first quarter of 2026.

The following table presents details of our four Newcastlemax drybulk vessels under construction as of August 3, 2026:


		Capacity			Expected
Hull Number ⁽²⁾		(DWT) ⁽¹⁾		Shipyard	Delivery Year
DJCFD010		211,000		Dajin Heavy Industry	2028
DJCFD011		211,000		Dajin Heavy Industry	2028
DJCFD016		211,000		Dajin Heavy Industry	2028
DJCFD017		211,000		Dajin Heavy Industry	2028

(1)	DWT, dead weight tons, the international standard measure for drybulk vessels capacity.

(2)	Under construction drybulk vessels were added to our orderbook in the first quarter of 2026.

Management Agreement

On July 31, 2026, we entered into an Amended and Restated Management Agreement with Danaos Shipping and an Amended and Restated Commercial Agency Agreement with Danaos Chartering, in each case reflecting the extension of the term from December 31, 2026 to December 31, 2027, with no change in the services provided and fees payable thereunder, as well as an Amended and Restated Restrictive Covenant Agreement with Dr. John Coustas and Danaos Investment Limited, as Trustee of the 883 Trust, to reflect the entry into the related amended and restated management agreement and commercial agency agreement.

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Forward Looking Statements

Matters discussed in this report may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning our operations, cash flows, financial position, including with respect to vessel and other asset values, contracted revenue, fleet growth, plans, objectives, goals, strategies, future events, performance or business prospects, changes and trends in our business and the markets in which we operate, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, geopolitical conditions, including any trade disruptions resulting from tariffs, port fees and other protectionist measures imposed by the United States, China or other countries, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, our ability to operate profitably in the drybulk sector, our ability to realize returns on our investment in the LNG sector and in marketable securities, performance of shipyards constructing our contracted newbuilding vessels, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, including the conflict in Ukraine and related sanctions, the conflicts in the Middle East, potential disruption of shipping routes such as Houthi attacks in the Red Sea and the Gulf of Aden and the effective closure of the Persian Gulf, including the Strait of Hormuz, due to the conflict between Iran and the U.S. and Israel, due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by us with the U.S. Securities and Exchange Commission.

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INDEX TO FINANCIAL STATEMENTS


Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 (unaudited)	F-2

Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2026 and 2025 (unaudited)	F-3

Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months June 30, 2026 and 2025 (unaudited)	F-4

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended June 30, 2026 and 2025 (unaudited)	F-5

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025 (unaudited)	F-6

Notes to the Unaudited Condensed Consolidated Financial Statements	F-7

F-1

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DANAOS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(Expressed in thousands of United States Dollars, except share and per share amounts)


				As of
				June 30,			December 31,
		Notes		2026			2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents				$	1,008,268		$	1,037,292
Accounts receivable, net					32,346			38,730
Inventories					22,572			23,417
Prepaid expenses					4,615			2,093
Due from related parties		15			59,031			46,750
Investments		5			223,176			120,244
Other current assets		6			40,184			50,893
Total current assets					1,390,192			1,319,419
NON-CURRENT ASSETS
Fixed assets at cost, net of accumulated depreciation of $1,704,983 (2025: $1,622,344)		3			3,214,185			3,269,703
Advances for vessels under construction and vessel acquisition		3			729,187			428,147
Deferred charges, net		4			54,469			54,356
Investments		5			12,388			—
Other non-current assets		6			47,213			42,305
Total non-current assets					4,057,442			3,794,511
Total assets				$	5,447,634		$	5,113,930

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable				$	25,134		$	17,274
Accrued liabilities		7			33,958			28,772
Current portion of long-term debt, net		9			26,629			283,015
Unearned revenue		13			30,351			36,625
Other current liabilities		8			33,414			35,990
Total current liabilities					149,486			401,676

LONG-TERM LIABILITIES
Long-term debt, net		9			1,184,091			872,076
Unearned revenue, net of current portion		13			—			2,618
Other long-term liabilities		8,15			57,248			41,983
Total long-term liabilities					1,241,339			916,677
Total liabilities					1,390,825			1,318,353
Commitments and Contingencies		11

STOCKHOLDERS’ EQUITY
Preferred stock (par value $0.01, 100,000,000 preferred shares authorized and not issued as of June 30, 2026 and December 31, 2025)		12			—			—
Common stock par value $0.01, 750,000,000 common shares authorized as of June 30, 2026 and December 31, 2025. 25,790,282 and 25,790,190 shares issued; and 18,203,567 and 18,264,294 shares outstanding as of June 30, 2026 and December 31, 2025, respectively		12			182			183
Additional paid-in capital					590,457			591,584
Accumulated other comprehensive loss					(68,522)			(71,412)
Retained earnings					3,534,692			3,275,222
Total stockholders’ equity					4,056,809			3,795,577
Total liabilities and stockholders’ equity				$	5,447,634		$	5,113,930

The accompanying notes are an integral part of these condensed consolidated financial statements.

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DANAOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Expressed in thousands of United States Dollars, except share and per share amounts)


				Three Months ended						Six Months ended
				June 30,						June 30,
		Notes		2026			2025			2026			2025

OPERATING REVENUES		13, 16		$	274,370		$	262,154		$	528,068		$	515,461

OPERATING EXPENSES
Voyage expenses		15, 16			(17,828)			(16,810)			(28,549)			(34,945)
Vessel operating expenses					(56,688)			(56,385)			(106,672)			(108,087)
Depreciation		3			(41,777)			(40,698)			(82,639)			(80,726)
Amortization of deferred drydocking and special survey costs		4			(10,485)			(11,515)			(22,782)			(22,485)
General and administrative expenses		15			(14,865)			(11,206)			(29,502)			(23,428)
					132,727			125,540			257,924			245,790

OTHER INCOME/(EXPENSES):
Interest income					7,401			3,661			14,958			7,266
Interest expense and finance costs		9			(8,127)			(9,711)			(19,986)			(19,714)
Gain on investments		5			20,897			14,734			44,357			17,217
Dividend income		5			3,128			313			5,443			679
Loss on debt extinguishment		9			(1,405)			—			(6,027)			—
Loss on equity investments		5, 6			(534)			(333)			(811)			(565)
Other finance expenses					(947)			(973)			(1,815)			(1,960)
Other (expenses)/income, net					(422)			(1,424)			(11)			(866)
Realized loss on derivatives		10			(903)			(903)			(1,796)			(1,796)
Total Other Income/(Expenses), net					19,088			5,364			34,312			261

Income before income taxes					151,815			130,904			292,236			246,051
Income taxes					—			—			—			—
Net Income				$	151,815		$	130,904		$	292,236		$	246,051

EARNINGS PER SHARE
Basic earnings per share of common stock (in $per share)		14		$	8.34		$	7.14		$	16.05		$	13.27
Diluted earnings per share of common stock (in $per share)		14		$	8.32		$	7.12		$	16.02		$	13.24
Basic weighted average number of common shares (in thousands of shares)		14			18,204			18,344			18,207			18,546
Diluted weighted average number of common shares (in thousands of shares)		14			18,256			18,396			18,245			18,588

The accompanying notes are an integral part of these condensed consolidated financial statements.

F-3

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DANAOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

(Expressed in thousands of United States Dollars)

Three months ended

Six months ended

June 30,

 

Notes

 

2026

 

2025

 

2026

 

2025

Net Income for the period

151,815

130,904

292,236

246,051

Other comprehensive income:

Prior service cost of defined benefit plan

547

291

1,094

581

Amortization of deferred realized losses on cash flow hedges

903

1,796

Total Other Comprehensive Income

1,450

1,194

2,890

2,377

Comprehensive Income

153,265

132,098

295,126

248,428

The accompanying notes are an integral part of these condensed consolidated financial statements.

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DANAOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited)

(Expressed in thousands of United States Dollars, except number of shares in thousands and per share amounts)


		Common Stock
										Accumulated
		Number					Additional			other
		of		Par			paid‑in			comprehensive			Retained
		shares		value			capital			loss			earnings			Total
As of December 31, 2024		18,988		$	190		$	650,864		$	(70,430)		$	2,844,176		$	3,424,800
Net Income		—			—			—			—			115,147			115,147
Dividends ($0.85 per share)		—			—			—			—			(15,894)			(15,894)
Repurchase of common stock		(414)			(4)			(33,212)			—			—			(33,216)
Stock based compensation		—			—			1,705			—			—			1,705
Issuance of common stock		—			—			4			—			—			4
Net movement in other comprehensive income		—			—			—			1,183			—			1,183
As of March 31, 2025		18,574		$	186		$	619,361		$	(69,247)		$	2,943,429		$	3,493,729
Net Income		—			—			—			—			130,904			130,904
Dividends ($0.85 per share)		—			—			—			—			(15,563)			(15,563)
Repurchase of common stock		(264)			(3)			(19,434)			—			—			(19,437)
Stock based compensation		—			—			1,723			—			—			1,723
Issuance of common stock		—			—			3			—			—			3
Net movement in other comprehensive income		—			—			—			1,194			—			1,194
As of June 30, 2025		18,310		$	183		$	601,653		$	(68,053)		$	3,058,770		$	3,592,553


		Common Stock
										Accumulated
		Number					Additional			other
		of		Par			paid‑in			comprehensive			Retained
		shares		value			capital			loss			earnings			Total
As of December 31, 2025		18,264		$	183		$	591,584		$	(71,412)		$	3,275,222		$	3,795,577
Net Income		—			—			—			—			140,421			140,421
Dividends ($0.90 per share)		—			—			—			—			(16,383)			(16,383)
Repurchase of common stock		(61)			(1)			(5,944)			—			—			(5,945)
Stock based compensation		—			—			2,390			—			—			2,390
Issuance of common stock		—			—			5			—			—			5
Net movement in other comprehensive income		—			—			—			1,440			—			1,440
As of March 31, 2026		18,203		$	182		$	588,035		$	(69,972)		$	3,399,260		$	3,917,505
Net Income		—			—			—			—			151,815			151,815
Dividends ($0.90 per share)		—			—			—			—			(16,383)			(16,383)
Stock based compensation		—			—			2,417			—			—			2,417
Issuance of common stock		—			—			5			—			—			5
Net movement in other comprehensive income		—			—			—			1,450			—			1,450
As of June 30, 2026		18,203		$	182		$	590,457		$	(68,522)		$	3,534,692		$	4,056,809

The accompanying notes are an integral part of these condensed consolidated financial statements.

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DANAOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Expressed in thousands of United States Dollars)


		Six months ended
		June 30,
		2026			2025

Cash flows from operating activities
Net income		$	292,236		$	246,051
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation			82,639			80,726
Amortization & write offs of deferred drydocking and special survey costs			22,782			22,485
Amortization of finance costs			1,527			1,545
Debt discount amortization			238			—
Prior service cost and periodic cost			1,346			2,807
Gain on investments			(44,357)			(17,217)
Loss on equity investments			811			565
Loss on debt extinguishment			6,027			—
Payments for drydocking and special survey costs deferred			(22,895)			(27,805)
Stock based compensation			4,807			3,428
Amortization of deferred realized losses on interest rate swaps			1,796			1,796
(Increase)/Decrease in:
Accounts receivable			4,506			(2,586)
Inventories			845			2,260
Prepaid expenses			(2,522)			(3,037)
Due from related parties			(12,281)			3,470
Other assets, current and non-current			23,106			8,832
Increase/(Decrease) in:
Accounts payable			7,860			(5,444)
Accrued liabilities			5,077			(259)
Unearned revenue, current and long-term			(8,892)			(19,890)
Other liabilities, current and long-term			2,840			(1,088)
Net cash provided by operating activities			367,496			296,639
Cash flows from investing activities
Vessels additions and advances for vessels under construction and vessel acquisition			(329,278)			(107,021)
Insurance proceeds from disposal of vessel			—			1,681
Investments			(71,492)			(30,270)
Net cash used in investing activities			(400,770)			(135,610)
Cash flows from financing activities
Proceeds from long-term debt, net			658,000			44,000
Payments and prepayments of long-term debt			(603,057)			(18,220)
Dividends paid			(32,756)			(31,449)
Finance costs			(11,114)			(9,368)
Repurchase of common stock			(6,823)			(53,212)
Net cash provided by/(used in) financing activities			4,250			(68,249)
Net (decrease)/increase in cash and cash equivalents			(29,024)			92,780
Cash and cash equivalents, beginning of period			1,037,292			453,384
Cash and cash equivalents, end of period		$	1,008,268		$	546,164

Supplemental cash flow information
Cash paid for interest, net of amounts capitalized		$	21,028		$	18,921

The accompanying notes are an integral part of these condensed consolidated financial statements.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.	Basis of Presentation and General Information

The accompanying condensed consolidated financial statements (unaudited) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reporting and functional currency of Danaos Corporation and its subsidiaries (“Danaos” or the “Company”) is the United States Dollar (“USD”).

Danaos Corporation, formerly Danaos Holdings Limited, was formed on December 7, 1998 under the laws of Liberia and is presently the sole owner of all outstanding shares of the companies listed below. Danaos Holdings Limited was redomiciled in the Marshall Islands on October 7, 2005. In connection with the re-domiciliation, the Company changed its name to Danaos Corporation. On October 14, 2005, the Company filed and the Marshall Islands accepted Amended and Restated Articles of Incorporation. The authorized capital stock of Danaos Corporation is 750,000,000 shares of common stock with a par value of $0.01 and 100,000,000 shares of preferred stock with a par value of $0.01. Refer to Note 12, “Stockholders’ Equity”. The Company’s principal business is the acquisition and operation of vessels. Danaos conducts its operations through the vessel owning companies whose principal activity is the ownership and operation of container vessels and drybulk vessels that are under the exclusive management of a related party of the Company.

In the opinion of management, the accompanying condensed consolidated financial statements (unaudited) of Danaos and subsidiaries contain all adjustments necessary to state fairly, in all material respects, the Company’s condensed consolidated financial position as of June 30, 2026, the condensed consolidated results of operations for the three and six months ended June 30, 2026 and 2025 and the condensed consolidated cash flows for the six months ended June 30, 2026 and 2025. All such adjustments are deemed to be of a normal, recurring nature. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in Danaos’ Annual Report on Form 20-F for the year ended December 31, 2025. The results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the results to be expected for the full year. The year-end condensed consolidated balance sheet data was derived from annual financial statements as of December 31, 2025. These condensed consolidated financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America.

The condensed consolidated financial statements (unaudited) have been prepared to reflect the consolidation of the companies listed below. The historical balance sheets and results of operations of the companies listed below have been reflected in the condensed consolidated balance sheets and condensed consolidated statements of income, comprehensive income, cash flows and stockholders’ equity at and for each period since their respective incorporation dates.

Reclassification of Comparative Figures: Investments in equity securities, previously presented within “Other Current and non-current assets”, have been reclassified and presented as separate line items in the statement of financial position. Comparative figures have been reclassified accordingly to conform with the current year presentation. Reclassifications had no effect on current and non - current assets, total equity, profit or loss, or cash flows for any period presented.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.	Basis of Presentation and General Information (Continued)

As of June 30, 2026, Danaos owned 75 container vessels on the water, 29 container vessels under construction, 11 Capesize drybulk carrier vessels and four Newcastlemax drybulk vessels under construction. These included the vessel-owning companies (the “Danaos Subsidiaries”) for both container and drybulk vessels, as listed below:

Operating container vessels as of June 30, 2026:


Company		Date of Incorporation		Vessel Name		Year Built		TEU ⁽¹⁾
Megacarrier (No. 1) Corp.		September 10, 2007		Kota Peony		2012		13,100
Megacarrier (No. 2) Corp.		September 10, 2007		Kota Primrose		2012		13,100
Megacarrier (No. 3) Corp.		September 10, 2007		Kota Plumbago		2012		13,100
Megacarrier (No. 4) Corp.		September 10, 2007		Speed		2012		13,100
Megacarrier (No. 5) Corp.		September 10, 2007		Ambition		2012		13,100
CellContainer (No. 6) Corp.		October 31, 2007		Express Berlin		2011		10,100
CellContainer (No. 7) Corp.		October 31, 2007		Express Rome		2011		10,100
CellContainer (No. 8) Corp.		October 31, 2007		Express Athens		2011		10,100
Karlita Shipping Co. Ltd.		February 27, 2003		Pusan C		2006		9,580
Ramona Marine Co. Ltd.		February 27, 2003		Le Havre		2006		9,580
Oceancarrier (No. 2) Corp.		October 15, 2020		Bremen		2009		9,012
Oceancarrier (No. 3) Corp.		October 15, 2020		C Hamburg		2009		9,012
Blackwell Seaways Inc.		January 9, 2020		Niledutch Lion		2008		8,626
Oceancarrier (No.1) Corp.		February 19, 2020		Kota Manzanillo		2005		8,533
Springer Shipping Co.		April 29, 2019		Belita		2006		8,533
Teucarrier (No. 1) Corp.		January 31, 2007		CMA CGM Attila		2011		8,530
Teucarrier (No. 2) Corp.		January 31, 2007		CMA CGM Tancredi		2011		8,530
Teucarrier (No. 3) Corp.		January 31, 2007		CMA CGM Bianca		2011		8,530
Teucarrier (No. 4) Corp.		January 31, 2007		CMA CGM Samson		2011		8,530
Teucarrier (No. 5) Corp.		September 17, 2007		CMA CGM Melisande		2012		8,530
Oceanew Shipping Ltd.		January 14, 2002		Europe		2004		8,468
Oceanprize Navigation Ltd.		January 21, 2003		America		2004		8,468
Rewarding International Shipping Inc.		October 1, 2019		Kota Santos		2005		8,463
Teushipper (No 1) Corp.		March 14, 2022		Catherine C		2024		8,010
Teushipper (No 2) Corp.		March 14, 2022		Greenland		2024		8,010
Teushipper (No 3) Corp.		March 14, 2022		Greenville		2024		8,010
Teushipper (No 4) Corp.		March 14, 2022		Greenfield		2024		8,010
Boxsail (No. 1) Corp		March 4, 2022		Interasia Accelerate		2024		7,165
Boxsail (No. 2) Corp		March 4, 2022		Interasia Amplify		2024		7,165
Boxcarrier (No. 1) Corp.		June 27, 2006		CMA CGM Moliere		2009		6,500
Boxcarrier (No. 2) Corp.		June 27, 2006		CMA CGM Musset		2010		6,500
Boxcarrier (No. 3) Corp.		June 27, 2006		CMA CGM Nerval		2010		6,500
Boxcarrier (No. 4) Corp.		June 27, 2006		CMA CGM Rabelais		2010		6,500
Boxcarrier (No. 5) Corp.		June 27, 2006		Racine		2010		6,500
Expresscarrier (No. 1) Corp.		March 5, 2007		YM Mandate		2010		6,500
Expresscarrier (No. 2) Corp.		March 5, 2007		YM Maturity		2010		6,500
Actaea Company Limited		October 14, 2014		Savannah		2002		6,402
Asteria Shipping Company Limited		October 14, 2014		Dimitra C		2002		6,402
Boxsail (No. 3) Corp.		March 4, 2022		Phoebe⁽²⁾		2025		6,014
Boxsail (No. 4) Corp.		March 4, 2022		Greenhouse⁽²⁾		2025		6,014
Averto Shipping S.A.		June 12, 2015		Suez Canal		2002		5,610
Sinoi Marine Ltd.		June 12, 2015		Kota Lima		2002		5,544
Oceancarrier (No. 4) Corp.		July 6, 2021		Wide Alpha		2014		5,466
Oceancarrier (No. 5) Corp.		July 6, 2021		Stephanie C		2014		5,466
Oceancarrier (No. 6) Corp.		July 6, 2021		Euphrates		2014		5,466
Oceancarrier (No. 7) Corp.		July 6, 2021		Wide Hotel		2015		5,466
Oceancarrier (No. 8) Corp.		July 6, 2021		Wide India		2015		5,466
Oceancarrier (No. 9) Corp.		July 6, 2021		Wide Juliet		2015		5,466
Continent Marine Inc.		March 22, 2006		Monaco		2009		4,253
Medsea Marine Inc.		May 8, 2006		Dalian		2009		4,253
Blacksea Marine Inc.		May 8, 2006		Jamaica (ex Luanda)		2009		4,253
Bayview Shipping Inc.		March 22, 2006		Rio Grande		2008		4,253
Channelview Marine Inc.		March 22, 2006		Merve A (tbr Paolo)		2008		4,253
Balticsea Marine Inc.		March 22, 2006		Kingston		2008		4,253
Seacarriers Services Inc.		June 28, 2005		Seattle C		2007		4,253
Seacarriers Lines Inc.		June 28, 2005		Vancouver		2007		4,253
Containers Services Inc.		May 30, 2002		Tongala		2004		4,253
Containers Lines Inc.		May 30, 2002		Derby D		2004		4,253
Boulevard Shiptrade S.A		September 12, 2013		Dimitris C		2001		3,430
Wellington Marine Inc.		January 27, 2005		Singapore		2004		3,314
Auckland Marine Inc.		January 27, 2005		Colombo		2004		3,314
CellContainer (No. 4) Corp.		March 23, 2007		Express Spain		2011		3,400
CellContainer (No. 5) Corp.		March 23, 2007		Express Black Sea		2011		3,400
CellContainer (No. 1) Corp.		March 23, 2007		Express Argentina		2010		3,400
CellContainer (No. 2) Corp.		March 23, 2007		Express Brazil		2010		3,400
CellContainer (No. 3) Corp.		March 23, 2007		Express France		2010		3,400
Vilos Navigation Company Ltd.		May 30, 2013		Zebra		2001		2,602
Sarond Shipping Inc.		January 18, 2013		Artotina		2001		2,524
Speedcarrier (No. 7) Corp.		December 6, 2007		Highway		1998		2,200
Speedcarrier (No. 6) Corp.		December 6, 2007		Progress C		1998		2,200
Speedcarrier (No. 8) Corp.		December 6, 2007		Bridge		1998		2,200
Speedcarrier (No. 1) Corp.		June 28, 2007		Phoenix D		1997		2,200
Speedcarrier (No. 2) Corp.		June 28, 2007		Advance		1997		2,200
Speedcarrier (No. 5) Corp.		June 28, 2007		Future		1997		2,200
Speedcarrier (No. 4) Corp.		June 28, 2007		Sprinter		1997		2,200
						Total TEU		477,491

(1)	Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity.

(2)	The vessels Phoebe and Greenhouse were delivered to the Company in 2025.

F-8

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.	Basis of Presentation and General Information (Continued)

Under construction container vessels as of June 30, 2026:


						Expected
Company		Date of Incorporation		Hull No.		Delivery ⁽²⁾		TEU ⁽¹⁾
Boxline (No. 1) Corp.		June 7, 2023		YZJ2023-1556 ⁽⁶⁾		Q3 2026		8,258
Boxline (No. 2) Corp.		June 7, 2023		YZJ2023-1557		Q3 2026		8,258
Boxline (No. 3) Corp.		February 2, 2024		YZJ2024-1612		Q3 2026		8,258
Boxsail (No. 5) Corp.		June 13, 2024		C9200-7		Q1 2027		9,200
Boxsail (No. 6) Corp.		June 13, 2024		C9200-8		Q2 2027		9,200
Boxline (No. 8) Corp		June 6, 2025		CV5900-09		Q2 2027		6,014
Boxline (No. 4) Corp.		February 2, 2024		YZJ2024-1613		Q2 2027		8,258
Boxline (No. 5) Corp.		March 8, 2024		YZJ2024-1625		Q2 2027		8,258
Conbulk Newb I Inc. ⁽⁴⁾		January 14, 2026		NGY0041 ⁽⁵⁾		Q2 2027		5,000
Conbulk Newb II Inc. ⁽⁴⁾		January 14, 2026		NGY0042 ⁽⁵⁾		Q3 2027		5,000
Boxline (No. 6) Corp.		March 8, 2024		YZJ2024-1626		Q3 2027		8,258
Boxline (No. 7) Corp.		May 30, 2024		YZJ2024-1668		Q3 2027		8,258
Boxsail (No. 10) Corp.		June 13, 2024		H2596		Q3 2027		9,200
Boxline (No. 9) Corp.		July 25, 2025		C7100-9		Q3 2027		7,165
Boxline (No. 10) Corp.		August 26, 2025		C7100-10		Q3 2027		7,165
Boxsail (No. 7) Corp.		June 13, 2024		C9200-9		Q4 2027		9,200
Boxsail (No. 11) Corp.		June 13, 2024		H2597		Q4 2027		9,200
Boxline (No. 11) Corp.		November 24, 2025		S1162		Q4 2027		1,800
Boxline (No. 12) Corp.		November 24, 2025		S1163		Q1 2028		1,800
Boxsail (No. 8) Corp.		June 13, 2024		C9200-10		Q2 2028		9,200
Boxline (No. 13) Corp.		November 24, 2025		S1164		Q2 2028		1,800
Boxsail (No. 9) Corp.		June 13, 2024		C9200-11		Q3 2028		9,200
Boxline (No. 14) Corp.		November 24, 2025		S1165		Q3 2028		1,800
Boxline (No. 15) Corp.		November 24, 2025		S1166		Q4 2028		1,800
Boxsail (No. 12) Corp.		December 3, 2025		H2638		Q4 2028		5,300
Boxline (No. 16) Corp.		November 24, 2025		S1167		Q1 2029		1,800
Boxsail (No. 13) Corp.		December 3, 2025		H2639		Q1 2029		5,300
Boxsail (No. 14) Corp.		December 3, 2025		H2640 ⁽³⁾		Q1 2029		5,300
Boxsail (No. 15) Corp.		December 3, 2025		H2641 ⁽³⁾		Q2 2029		5,300
						Total TEU		184,550

(1)	Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity.

(2)	Under construction container vessels’ expected delivery dates were sorted based on the upcoming deliveries.

(3)	Under construction containership vessels were added to our orderbook in the first quarter of 2026.

(4)	The Company owns 95% of the equity interests.

(5)	Under construction containership vessels were added to our orderbook in the second quarter of 2026.

(6)	The vessel under construction was delivered to the Company in July 2026, and was named Santorini Express (Note 18).

Operating Capesize drybulk carrier vessels as of June 30, 2026:


Company		Date of Incorporation		Vessel Name		Year Built ⁽²⁾		DWT ⁽¹⁾
Bulk No. 4 Corp.		July 14, 2023		Genius		2012		175,580
Bulk No. 2 Corp.		July 14, 2023		Achievement		2011		175,966
Bulk No. 3 Corp.		July 14, 2023		Ingenuity		2011		176,022
Bulk No. 8 Corp.		January 31, 2024		Danaos		2011		176,536
Bulk No. 10 Corp.		February 15, 2024		Valentine		2011		175,125
Bulk No. 1 Corp.		July 14, 2023		Integrity		2010		175,966
Bulk No. 5 Corp.		July 14, 2023		Peace		2010		175,858
Bulk No. 9 Corp.		February 2, 2024		Gouverneur		2010		178,043
Bulk No. 6 Corp.		September 15, 2023		W Trader		2009		175,879
Bulk No. 7 Corp.		September 25, 2023		E Trader		2009		175,886
Bulk No. 11 Corp.		October 6, 2025		John Junior (ex. Hebei No.1) ⁽³⁾		2009		182,425
						Total DWT		1,943,286

(1)	DWT, dead weight tons, the international standard measure for drybulk vessels capacity.

(2)	Capesize drybulk carrier vessels are sorted by their year built, from newest to oldest.

(3)	The vessel was delivered to the Company in March 2026 (Note 3).

F-9

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.	Basis of Presentation and General Information (Continued)

Under construction Newcastlemax drybulk vessels as of June 30, 2026:


						Expected
Company		Date of Incorporation		Hull No.		Delivery ⁽²⁾		DWT ⁽¹⁾
Bulk No.12 Corp.		October 7, 2025		DJCFD010 ⁽³⁾		Q2 2028		211,000
Bulk No.14 Corp.		February 16, 2026		DJCFD016 ⁽³⁾		Q3 2028		211,000
Bulk No.13 Corp.		January 27, 2026		DJCFD011 ⁽³⁾		Q4 2028		211,000
Bulk No.15 Corp.		February 16, 2026		DJCFD017 ⁽³⁾		Q4 2028		211,000
						Total DWT		844,000

(1)	DWT, dead weight tons, the international standard measure for drybulk vessels capacity.

(2)	Under construction drybulk vessels’ expected delivery dates were sorted based on the upcoming deliveries.

(3)	Under construction drybulk vessels were added to our orderbook in the first quarter of 2026.

2.	Significant Accounting Policies

For a detailed discussion about the Company’s significant accounting policies, see Note 2 “Significant Accounting Policies” in the Company’s consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2025 filed with the Securities and Exchange Commission on February 27, 2026. During the six months ended June 30, 2026, there were no significant changes made to the Company’s significant accounting policies.

3.	Fixed Assets, Net and Advances for Vessels Under Construction and Vessel Acquisition

Fixed assets, net consisted of the following (in thousands of US$):


		Vessel			Accumulated			Net Book
		Costs			Depreciation			Value
As of January 1, 2026		$	4,892,047		$	(1,622,344)		$	3,269,703
Additions and vessel acquisition			25,466			—			25,466
Vessel upgrades and other vessel costs			1,655			—			1,655
Depreciation			—			(82,639)			(82,639)
As of June 30, 2026		$	4,919,168		$	(1,704,983)		$	3,214,185

Capesize drybulk carrier vessel acquisition & Deliveries of newbuilding container vessels:

During the six months ended June 30, 2026, the Company took delivery of the drybulk capesize vessel John Junior (ex. Hebei No.1) pursuant to a Memorandum of Agreement entered into in 2025, for a total purchase price of $25.0 million. In connection with this acquisition, the Company deposited $3.8 million into an escrow account in 2025, which, as of December 31, 2025, was recorded under “Advances for vessels under construction and vessel acquisition”. The remaining $21.2 million was paid during the six months ended June 30, 2026. The vessel was recognized under “Fixed assets at cost, net” at an aggregate cost of approximately $25.5 million, including capitalized acquisition and delivery-related expenses.

In 2025, the Company also took delivery of two 6,014 TEU newbuild container vessels, Phoebe and Greenhouse, both of which commenced long-term charters upon delivery. These vessels were transferred from “Advances for vessels under construction and vessel acquisition” to “Fixed assets at cost, net” at an aggregate cost of approximately $129.4 million.

F-10

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.	Fixed Assets, Net and Advances for Vessels Under Construction and Vessel Acquisition (Continued)

Container vessels under construction:

During the six months ended June 30, 2026, the Company added two 5,000 TEU newbuilding containerships and two 5,300 TEU newbuilding containerships to its orderbook. In 2025, the Company added one 6,014 TEU, two 7,165 TEU, two 5,300 TEU and six 1,800 TEU newbuilding containerships to its orderbook. As of June 30, 2026, the Company has a total of 29 container vessels under construction, with scheduled deliveries between 2026 and 2029, as summarized below:

●

Seven 9,200 TEU vessels, contracted between June 2024 and December 2024 of which five are expected to be delivered in 2027 and two in 2028.

●

Seven 8,258 TEU vessels, contracted between June 2023 and July 2024 of which three are expected to be delivered in the third quarter of 2026 and the remaining four in 2027.

●

Two 7,165 TEU vessels, contracted in September 2025 and both are expected to be delivered in the third quarter of 2027.

●

One 6,014 TEU vessel, contracted in June 2025, which is expected to be delivered in 2027.

●

Four 5,300 TEU vessels, contracted in December 2025 and March 2026, of which one is expected to be delivered in 2028 and three in 2029.

●

Two 5,000 TEU vessels, contracted in May 2026, which are expected to be delivered in 2027.

●

Six 1,800 TEU vessels, contracted in December 2025, of which one is expected to be delivered in 2027, four in 2028 and one in 2029.

Drybulk vessels under construction:

In January and February 2026, the Company reached agreements with Chinese shipyards for the construction of four Newcastlemax drybulk carriers of approximately 211,000 DWT each and expected delivery dates in 2028.

As of June 30, 2026, the aggregate contracted purchase price of the 29 container vessels and the four drybulk vessels under construction amounted to $2,484.3 million,out of which $284.3 million, $190.0 million, $174.5 million and $28.3 million was paid in the six months ended June 30, 2026 and in the years ended December 31, 2025, 2024 and 2023, respectively. As of June 30, 2026, the future remaining contractual commitments for the 29 container and the four drybulk vessels under construction were as follows (in thousands of US$):


Payments due by twelve month period ending:	in ‘000s of US$
June 30, 2027	$	805,115
June 30, 2028		646,865
June 30, 2029		355,171
Total contractual commitments	$	1,807,151

Additionally, a supervision fee of $850.0 thousand per newbuilding vessel is payable to Danaos Shipping Company Limited (the “Manager”) over the construction period. Supervision fees totaling $3.0 million and $1.9 million were charged by the Manager and capitalized to the vessels under construction in the six months ended June 30, 2026 and in the year ended December 31, 2025, respectively. Interest expense amounting to $16.3 million and $21.6 million was capitalized to the vessels under construction in the six months ended June 30, 2026 and in the year ended December 31, 2025, respectively.

F-11

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

4.	Deferred Charges, net

Deferred charges, net consisted of the following (in thousands of US$):


		Drydocking and
		Special Survey Costs
As of January 1, 2025		$	58,759
Additions			39,671
Amortization			(44,074)
As of December 31, 2025		$	54,356
Additions			22,895
Write-off			(1,773)
Amortization			(21,009)
As of June 30, 2026		$	54,469

The Company follows the deferral method of accounting for drydocking and special survey costs in accordance with accounting for planned major maintenance activities, whereby actual costs incurred are deferred and amortized on a straight-line basis over the period until the next scheduled survey, which is two and a half years. If special survey or drydocking is performed prior to the scheduled date, the remaining unamortized balances are immediately written off. Furthermore, when a vessel is drydocked in more than one reporting period, the respective costs are identified and recorded in the period in which they were incurred.

5.	Investments

Investments under current assets and non-current assets consisted of the following (in thousands of US$):


				As of			As of
Current Assets		Balance Sheet Location		June 30, 2026			December 31, 2025
Marketable securities		Investments, Current		$	223,176		$	120,244
Total				$	223,176		$	120,244

				As of			As of
Non-current Assets				June 30, 2026			December 31, 2025
Equity Investment in Alaska LNG project		Investments, Non-current		$	12,388		$	—
Total				$	12,388		$	—

F-12

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5.	Investments (Continued)

Investments under Current Assets:

Marketable securities:

Star Bulk Carriers Corp. Shares: In 2023, the Company acquired marketable securities of Eagle Bulk Shipping Inc., an owner of bulk carriers, which was listed on the New York Stock Exchange (Ticker: EGLE). On December 11, 2023, Star Bulk Carriers Corp. (Ticker: SBLK), a NASDAQ-listed owner and operator of drybulk vessels, and EGLE, announced that both companies had entered into a definitive agreement to combine in an all-stock merger, which was completed on April 9, 2024. Under the terms of the agreement, EGLE shareholders received 2.6211 shares of SBLK common stock in exchange for each share of EGLE common stock owned. During the year ended December 31, 2025, the Company purchased an additional 2,185,967 shares of common stock of “SBLK” in the open market for $29.9 million. As of June 30, 2026 and December 31, 2025, the Company owned 6,256,181 shares of SBLK common stock.

As of June 30, 2026 and December 31, 2025, these marketable securities were fair valued at $156.2 million and $120.2 million, respectively. The Company recognized a $36.0 million gain and a $17.2 million gain on these marketable securities reflected under “Gain on investments” in the condensed consolidated statement of income for the six months ended June 30, 2026 and June 30, 2025, respectively. Additionally, the Company recognized dividend income on these shares amounting to $5.4 million in the six months ended June 30, 2026 and $0.7 million for the six months ended June 30, 2025 and reflected under “Dividend income” in the condensed consolidated statement of income.

Yoda PLC Shares: In April 2026, the Company entered into an irrevocable share subscription agreement to acquire 45,454,545 newly issued ordinary shares, in Yoda PLC (Ticker: YODA), a Cyprus-listed investment company. Yoda PLC’s portfolio is focused on shipping investments in the LNG and container sectors, real estate and other participations including healthcare. The shares were subscribed at €1.10 per share for total cash consideration of €50.0 million, approximately $58.6 million translated at the EUR/USD exchange rate prevailing at the date of subscription. The subscription was settled by cash payment. The Company does not hold a seat on Yoda’s Board of Directors and do not exercise significant influence over Yoda’s financial and operating policies.

As of June 30, 2026, the Company owned 45,454,545 shares of ordinary shares of YODA. As of June 30, 2026, these marketable securities were fair valued at $67.0 million and the Company recognized a $8.4 million net gain on these marketable securities reflected under “Gain on investments” in the condensed consolidated statement of income for the six months ended June 30, 2026, comprising a $9.9 million gain from the fair value remeasurement and a $1.5 million loss from EUR/USD exchange rate movement.

F-13

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5.	Investments (Continued)

Investments under Non-current Assets:

Investments accounted for under the equity method:

Equity Investment in Alaska LNG Project: In January 2026, the Company entered into a non-controlling investment in Glenfarne Alaska Partners LLC (the “Investee”), an unconsolidated third-party limited liability company formed in connection with the Alaska LNG project, that is accounted for under the equity method of accounting in accordance with ASC 323. The Company does not control the Investee and does not participate in its management or policy-making activities. The Company’s investment in this Investee amounted to $12.4 million as of June 30, 2026 and is included in “Investments” under non-current assets in the consolidated balance sheet. The remaining commitment of $37.5 million is expected to be drawn over time in accordance with the terms of the partnership agreement. The Company’s share of losses in this investment amounted to $0.1 million for the six months ended June 30, 2026, and is presented in the consolidated statements of income under “Loss on equity investments” in the condensed consolidated statements of income.

6.	Other Current and Non-current Assets

Other current and non-current assets consisted of the following (in thousands of US$):


		As of			As of
Other Current Assets		June 30, 2026			December 31, 2025
Straight-lining of revenue		$	21,986		$	24,828
Claims receivable			9,023			9,978
Other current assets			9,175			16,087
Total other current assets		$	40,184		$	50,893

		As of			As of
Other Non-current Assets		June 30, 2026			December 31, 2025
Straight-lining of revenue		$	17,464		$	30,144
EUAs & Fuel EUs			12,353			—
Other non-current assets			17,396			12,161
Total other non-current assets		$	47,213		$	42,305

Investments accounted for under the equity method under Other Current Assets:

Equity Investment in Carbon Termination Technologies Corporation: In March 2023, the Company invested $4.3 million in the common shares of a newly established company, Carbon Termination Technologies Corporation (“CTTC”), incorporated in the Republic of the Marshall Islands, which engages in research and development of decarbonization technologies for the shipping industry. This investment represents a 49% ownership interest and is accounted for under the equity method of accounting. In 2024 and 2025, the Company provided an additional funding of approximately $2.5 million to CTTC which bears interest at a rate of SOFR plus a margin of 2.0% and pursuant to an amendment executed on October 3, 2025, with a maturity date of December 31, 2026. On March 10, 2026, the Company provided an additional $0.4 million to CTTC under the existing facility which was recorded under “Other current assets” in the condensed consolidated balance sheet. The Company’s share of CTTC’s expenses amounted to $0.7 million and $0.6 million for the six months ended June 30, 2026 and 2025, respectively, and is presented in the consolidated statements of income under “Loss on equity investments”. As of June 30, 2026, the carrying value of the equity method investment has been reduced to nil. In accordance with ASC 323-10-35-28, the Company’s cumulative share of losses in excess of the investment carrying value has been applied against the outstanding loan receivable balance. The loan receivable balance is presented within “Other Current Assets” in the interim condensed balance sheets.

F-14

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

7.	Accrued Liabilities

Accrued liabilities consisted of the following (in thousands of US$):


		As of			As of
		June 30, 2026			December 31, 2025
Accrued interest		$	13,596		$	16,402
Accrued dry-docking expenses			4,794			2,594
Accrued expenses			15,568			9,776
Total		$	33,958		$	28,772

Accrued expenses mainly consisted of accruals related to the operation of the Company’s fleet as of June 30, 2026 and December 31, 2025.

8.Other Current and Long-term Liabilities

Other current and long-term liabilities consisted of the following (in thousands of US$):


		As of			As of
Other Current Liabilities		June 30, 2026			December 31, 2025
Straight-lining of revenue		$	15,673		$	15,494
EUAs & Fuel EUs			17,741			20,496
Total other current liabilities		$	33,414		$	35,990


		As of			As of
Other Long-term Liabilities		June 30, 2026			December 31, 2025
Straight-lining of revenue		$	23,099		$	20,496
EUAs & Fuel EUs			12,410			—
Other non-current liabilities			21,739			21,487
Total other long-term liabilities		$	57,248		$	41,983

9.	Long-Term Debt, net

Long-term debt, net consisted of the following (in thousands of US$):


		As of			As of
Credit Facility		June 30, 2026			December 31, 2025
Syndicated $450.0 mil. Facility		$	—		$	335,210
Citibank $382.5 mil. Revolving Credit Facility			—			—
Syndicated $850.0 mil. Facility			—			—
JOLCO Facilities			732,725			79,806
KfW $132.0 mil. Facility			—			—
Senior unsecured notes			500,000			762,766
Total long-term debt		$	1,232,725		$	1,177,782
Less: Deferred finance costs (long term portion)			(19,016)			(17,032)
Less: Unamortized debt discount			(2,989)			(3,226)
Less: Current portion, gross of deferred finance costs			(26,629)			(285,448)
Total long-term debt net of current portion and long term portion of deferred finance costs		$	1,184,091		$	872,076

F-15

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.	Long-Term Debt, net (Continued)

Secured Credit Facilities:

Citibank $382.5 mil. Revolving Credit Facility

In December 2022, the Company early extinguished the remaining $437.75 million outstanding under the then existing Citibank/NatWest $815.0 million facility and replaced it with a $382.5 mil. Revolving Credit Facility with Citibank (the “Citibank $382.5 mil. Revolving Credit Facility”) and with Alpha Bank $55.25 mil. Facility (as defined below). As of June 30, 2026, no amounts were drawn down under Citibank $382.5 mil. Revolving Credit Facility. The Citibank $382.5 million Revolving Credit Facility is a reducing facility and is repayable over five years through 20 quarterly commitment reductions of $11.25 million each, followed by a final reduction of $157.5 million at maturity in December 2027. Borrowings under this facility bear interest at SOFR plus a margin. The facility is secured by twelve of the Company’s vessels.

Syndicated $850.0 mil. Facility

In February 2025, the Company entered into a syndicated loan facility agreement for a maximum principal amount of up to $850.0 million (the “Syndicated $850.0 mil. Facility”), to finance a portion of the purchase price of 14 newbuilding container vessels. The facility is expected to be drawn upon delivery of each vessel in separate tranches. Each vessel tranche is repayable in 20 equal quarterly instalments of approximately $0.8 million per tranche followed by a final payment on the fifth anniversary of each vessel’s tranche of between $42.4 million and $46.7 million per tranche up to December 2033. The facility bears interest at SOFR plus a margin. As of June 30, 2026, no amounts were drawn down under Syndicated $850.0 mil. Facility.

JOLCO Facilities

In October 2025 and December 2025, the Company entered into Japanese Operating Lease with Call Option arrangements (the “JOLCO Facilities”) to finance the container vessels Phoebe and Greenhouse, respectively, and during the six months ended June 30, 2026, the Company entered into additional JOLCO Facilities to finance the operating container vessels Interasia Accelerate, Interasia Amplify, Catherine C, Greenland, Greenville and Greenfield. Although legal title to the operating vessels was transferred to the respective lessors as part of these arrangements, the transactions did not qualify as sales under the sale-leaseback guidance in ASC 842 (which incorporates the sale criteria in ASC 606) and are therefore accounted for as failed sale-leaseback transactions and financing arrangements in accordance with ASC 470. Accordingly, the vessels continue to be recognized within “Fixed assets, net” on the Company’s condensed consolidated balance sheets and are depreciated over their remaining useful lives, and the proceeds received are recognized as financing liabilities.

In addition, during the six months ended June 30, 2026, the Company entered into three additional JOLCO facilities to finance the vessels under construction on their delivery, with Hull Nos. CV5900-09, C7100-9 and C7100-10. Each facility provides funding ranging from $68.0 million to $103.5 million, has an approximate term of eight years and includes call options that allow the Company to repurchase the respective vessels at specified dates during the term of the arrangements.

As of June 30, 2026, the Company had drawn $738.0 million in aggregate proceeds under these arrangements, which were recognized as financing liabilities, while the remaining $236.0 million commitment relates to the Hull Nos. CV5900-09, C7100-9 and C7100-10, which are expected to be drawn in 2027. The undrawn commitments are subject to customary conditions precedent to drawdown under the respective agreements.

F-16

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.	Long-Term Debt, net (Continued)

Secured Credit Facilities (Continued):

Below is a summary of JOLCO facilities (amounts in millions of US$):


						Facility			Balance as of
Vessel/Hull No.		Signing Date		Drawdown Date		Amount			June 30, 2026
Phoebe		October 2025		October 2025		$	80.0		$	78.6
Greenhouse		December 2025		January 2026		$	80.0		$	79.1
Interasia Accelerate		March 2026		March 2026		$	85.5		$	84.5
Interasia Amplify		March 2026		March 2026		$	85.5		$	84.5
Catherine C		March 2026		March 2026		$	100.0		$	99.4
Greenland		March 2026		April 2026		$	100.0		$	99.6
Greenville		March 2026		June 2026		$	103.5		$	103.5
Greenfield		March 2026		June 2026		$	103.5		$	103.5
CV5900-09		May 2026		May 2027⁽¹⁾		$	68.0		$	—
C7100-9		May 2026		July 2027⁽¹⁾		$	84.0		$	—
C7100-10		May 2026		August 2027⁽¹⁾		$	84.0		$	—
									$	732.7

(1)	The undrawn facility amount is subject to customary conditions precedent to drawdown under the respective agreement.

KfW $132.0 mil. Facility

In May 2026, the Company entered into a loan facility agreement with KfW IPEX-Bank GmbH for a maximum principal amount of up to $132.0 million (the “KfW $132.0 mil. Facility”), to finance a portion of the construction of six 1,800 TEU newbuilding container vessels. The facility is expected to be drawn upon delivery of each vessel in separate tranches of $22.0 million each with drawdowns expected between the fourth quarter of 2027 and the first quarter of 2029. Each vessel tranche is repayable in 40 quarterly instalments, comprising 39 equal quarterly instalments of $0.3 million and a final instalment of $10.3 million on approximately the tenth anniversary of each vessel’s tranche drawdown. The facility bears interest at SOFR plus a margin. As of June 30, 2026, no amounts were drawn down under the KfW $132.0 mil. Facility.

The Citibank $382.5 mil. Revolving Credit Facility contain a requirement to maintain minimum fair market value of collateral vessels to loan value coverage of 120%. Additionally, the Citibank $382.5 mil. Revolving Credit Facility and JOLCO Facilities require the Company to maintain the following financial covenants:

(i)

minimum liquidity of $30.0 million;

(ii)

maximum consolidated debt (less cash and cash equivalents) to consolidated EBITDA ratio of 6.5x; and

(iii)

minimum consolidated EBITDA to net interest expense ratio of 2.5x.

Each of the secured credit facilities are collateralized by first preferred mortgages over the vessels financed, general assignment of charter hire, freights, income and earnings, the assignment of insurance policies, as well as any proceeds from the sale of mortgaged vessels, stock pledges and benefits from corporate guarantees (as noted below, the Company’s senior unsecured notes are not collateralized). The Company was in compliance with the financial covenants contained in the credit facilities agreements as of June 30, 2026 and December 31, 2025, respectively. Twenty of the Company’s vessels having a net carrying value of $1,393.6 million as of June 30, 2026, were subject to first preferred mortgages as collateral to the Company’s secured credit facilities.

As of June 30, 2026, there was a $225.0 million remaining borrowing availability under the Company’s Citibank $382.5 million Revolving Credit Facility, $850.0 million under the Syndicated $850.0 mil. Facility, $236.0 million under the JOLCO Facilities and $132.0 million under the KfW IPEX-Bank facility.

F-17

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.Long-Term Debt, net (Continued)

Credit Facilities early prepaid during the six months ended June 30, 2026:

Syndicated $450.0 mil. Facility

In March 2024, the Company entered into a syndicated secured loan facility agreement providing for a maximum principal amount of up to $450.0 million (the “Syndicated $450.0 mil. Facility”), was initially secured by eight of the Company’s container vessels and was structured in separate vessel tranches, each drawn upon delivery of the respective vessel. Each drawn vessel tranche was repayable in 20 equal quarterly instalments ranging from $0.6 million to $0.9 million per tranche, followed by a balloon payment due on the fifth anniversary of each tranche, ranging from $31.8 million to $45.5 million, with final maturities extending through September 2030. During 2025, the Company prepaid the outstanding principal amount of $42.78 million relating to the vessel Phoebe and cancelled the undrawn tranche relating to the vessel Greenhouse in connection with obtaining alternative financing arrangements. On March 2, 2026, the Company together with the quarterly instalments for the tranches relating to the vessels Catherine C, Greenland, Interasia Accelerate, and Interasia Amplify, also prepaid in full the outstanding principal amounts of these tranches. On June 2, 2026, the Company together with the quarterly instalments for the tranches relating to the vessels Greenfield and Greenville, also prepaid in full the outstanding principal amounts of these tranches. All vessels previously under the Syndicated $450.0 mil. Facility, were subsequently financed under JOLCO Facilities.

In connection with the prepayments, the Company wrote off approximately $3.8 million of unamortized deferred financing costs, which was recognized as “Loss on debt extinguishment” in the condensed consolidated statement of income for the six months ended June 30, 2026. As of June 30, 2026, there were no amounts outstanding under this facility.

Credit Facilities early prepaid during the year ended December 31, 2025:

BNP Paribas/Credit Agricole $130 mil. Facility

In June 2022, the Company put in place a $130.0 million senior secured term loan facility with BNP Paribas and Credit Agricole (the “BNP Paribas/Credit Agricole $130 mil. Facility”), which is secured by six 5,466 TEU sister vessels acquired in 2021. The facility is repayable in eight quarterly instalments of $5.0 million followed by twelve quarterly instalments of $1.9 million, together with a balloon payment of $67.2 million payable at maturity of the facility’s five year term in June 2027. The facility bore interest at SOFR plus a margin. On December 1, 2025, the Company early prepaid the outstanding principal amount of $78.6 million under the BNP Paribas/Credit Agricole $130.0 million Facility. Following this prepayment, no balance remained outstanding thereafter.

Alpha Bank $55.25 mil. Facility

In December 2022, the Company entered into a $55.25 million secured credit facility with Alpha Bank, which was fully utilized (the “Alpha Bank $55.25 mil. Facility”). The Alpha Bank $55.25 mil. Facility was repayable over five years in 20 consecutive quarterly instalments of $1.875 million each, with a balloon payment of $17.75 million due at maturity in December 2027. This facility bore interest at SOFR plus a margin and was secured by two of the Company’s vessels. On December 1, 2025, the Company early prepaid the outstanding principal amount of $32.8 million under the Alpha Bank $55.25 mil. Facility. Following this prepayment, no balance remained outstanding thereafter.

F-18

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.Long-Term Debt, net (Continued)

Unsecured Credit Facilities:

6.875% Senior Unsecured Notes Due 2032

On October 16, 2025, the Company issued in a private placement, $500.0 million aggregate principal amount of 6.875% senior unsecured notes due 2032 (the “6.875% Senior Notes”). The 6.875% Senior Notes were issued at a price of 99.335% of par, resulting in gross proceeds of $496.7 million. The 6.875% Senior Notes mature on October 15, 2032 and bear interest at a rate of 6.875% per annum, payable semiannually in arrears March 1 and September 1, beginning March 1, 2026. The Notes were recorded at their initial carrying amount, which consisted of the cash proceeds received, net of the original issue discount. The Company is amortizing the original issue discount over the term of the 6.875% Senior Notes using the effective interest method. The amount of $12.8 million of bond issuance costs were deferred over the life of the bond and recognized through the effective interest method.

The Company may redeem some or all of the 6.875% Senior Notes at any time or from time to time for cash: (i) prior to October 15, 2028, at 100.000% of the principal amount of such notes, plus an applicable make-whole premium and accrued and unpaid interest; (ii) on or after October 15, 2028 and prior to October 15, 2029, at 103.438% of the principal amount, plus accrued and unpaid interest; (iii) on or after October 15, 2029 and prior to October 15, 2030, at 101.719% of the principal amount, plus accrued and unpaid interest; and (iv) on or after October 15, 2030 and prior to maturity, at 100.000% of the principal amount, in each case plus accrued and unpaid interest to, but not including, the redemption date.

Subject to certain conditions, at any time and from time to time prior to October 15, 2028, the Company may redeem up to 40% of the original aggregate principal amount of the 6.875% Senior Notes with the net cash proceeds of public equity offerings of the Company and certain equity contributions at a redemption price of 106.875% of the principal amount, plus accrued and unpaid interest, if any, to but excluding the redemption date; provided that at least 60% of the original aggregate principal amount of the 6.875% Senior Notes remains outstanding.

8.500% Senior Unsecured Notes Due 2028

On February 11, 2021, the Company issued in a private placement, $300.0 million aggregate principal amount of 8.500% senior unsecured notes due 2028 (the “8.500% Senior Notes”), which bore interest at a fixed rate of 8.500% per annum and were scheduled to mature on March 1, 2028. Interest was payable semi-annually. The Company had previously repurchased $37.2 million aggregate principal amount of the notes in December 2022 in a privately negotiated transaction. In connection with the scheduled redemption, the Company fully repaid the outstanding principal amount of $262.8 million on March 2, 2026. Upon repayment, the remaining unamortized deferred issuance costs of $2.2 million were written off and were recognized as “Loss on debt extinguishment” in the condensed consolidated statement of income for the six months ended June 30, 2026.

F-19

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.	Long-Term Debt, net (Continued)

Principal Payments of Secured and Unsecured Credit Facilities:

The scheduled debt maturities of long-term debt subsequent to June 30, 2026 are as follows (in thousands of US$):


		Principal
Payments due by twelve month period ending:		repayments
June 30, 2027		$	26,629
June 30, 2028			31,249
June 30, 2029			33,134
June 30, 2030			35,041
June 30, 2031			37,058
June 30, 2032 and thereafter			1,069,614
Total long-term debt		$	1,232,725

Interest and Finance costs:

The amounts of “Interest and finance costs” included in the condensed consolidated income statements are analyzed as follows (in thousands of US$):


		Six months ended June 30,
		2026			2025
Interest on secured and unsecured credit facilities		$	34,541	$	27,437
Less: Interest capitalized			(16,320)		(9,268)
Amortization of debt issuance costs & debt discount			1,765		1,545
Interest and finance costs		$	19,986	$	19,714

The weighted-average interest rate on long-term borrowings was 6.22% and 7.02% for the six months ended June 30, 2026 and 2025, respectively.

Loss on debt extinguishment:

The Company recognized $6.0 million and nil under “Loss on debt extinguishment” in the condensed consolidated statements of income for the six months ended June 30, 2026 and 2025, respectively. These amounts relate to the write-off of unamortized debt issuance costs, commitment fees and other expenses incurred in connection with the extinguishment of debt, including the repayment of 8.500% Senior Notes.

F-20

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

10.

Financial Instruments

The following is a summary of the Company’s risk management strategies and the effect of these strategies on the Company’s condensed consolidated financial statements.

Interest Rate Risk: Interest rate risk arises on bank borrowings. The Company monitors the interest rate on borrowings closely to ensure that the borrowings are maintained at favorable rates.

Foreign Currency Risk: In April 2026, the Company acquired an equity investment in Yoda PLC (Note 5), which is denominated in Euro (“EUR”). This investment is measured at fair value through net income and its USD carrying value is subject to EUR/USD exchange rate fluctuations. The Company has not entered into any hedging instruments with respect to this exposure.

Concentration of Credit Risk: Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and trade accounts receivable. The Company places its temporary cash investments, consisting mostly of deposits, with established financial institutions. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. The Company is exposed to credit risk in the event of non-performance by counterparties, however, the Company limits this exposure by diversifying among counterparties with high credit ratings. The Company depends upon a limited number of customers for a large part of its revenues. Credit risk with respect to trade accounts receivable is generally managed by the selection of customers among the major liner companies in the world and their dispersion across many geographic areas.

Fair Value: The carrying amounts reflected in the accompanying condensed consolidated balance sheets of financial assets and liabilities (excluding long-term bank loans and certain other non-current assets) approximate their respective fair values due to the short maturity of these instruments. The fair values of long-term floating rate bank loans approximate the recorded values, generally due to their variable interest rates. The fair value of senior unsecured notes is measured based on quoted market prices. The fair value of marketable securities is measured based on the closing price of the securities on a stock exchange.

a. Interest Rate Swap Hedges

The Company currently has no outstanding interest rate swaps agreements. However, in the past years, the Company entered into interest rate swap agreements with its lenders in order to manage its floating rate exposure. Certain variable-rate interests on specific borrowings were associated with vessels under construction and were capitalized as a cost of the specific vessels. In accordance with the accounting guidance on derivatives and hedging, the amounts related to realized gains or losses on cash flow hedges that have been entered into and qualified for hedge accounting, in order to hedge the variability of that interest, were recognized in accumulated other comprehensive loss and are reclassified into earnings over the depreciable life of the constructed asset, since that depreciable life coincides with the amortization period for the capitalized interest cost on the debt. An amount of $1.8 million was reclassified into earnings for the six months ended June 30, 2026 and 2025, representing its amortization over the depreciable life of the vessels. An amount of $3.6 million is expected to be reclassified into earnings within the next 12 months.

b. Fair Value of Financial Instruments

The Company determines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy.

Level I: Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation of these items does not entail a significant amount of judgment.

Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.

Level III: Inputs that are unobservable. The Company did not use any Level 3 inputs as of June 30, 2026 and December 31, 2025.

F-21

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

10.

Financial Instruments (Continued)

b. Fair Value of Financial Instruments (Continued)

The estimated fair values of the Company’s financial instruments are as follows (in thousands of US$):


				As of June 30, 2026						As of December 31, 2025
		Balance Sheet Location		Book Value			Fair Value			Book Value			Fair Value

				(in ‘000s of US$)
ASSETS
Cash and cash equivalents		Cash and cash equivalents		$	1,008,268		$	1,008,268		$	1,037,292		$	1,037,292
Marketable securities		Investments, Current		$	223,176		$	223,176		$	120,244		$	120,244
LIABILITIES
Secured long-term debt, including current portion ⁽¹⁾		Current portion of long-term debt, net & Long-term debt, net		$	732,725		$	732,725		$	415,016		$	415,016
Unsecured long-term debt ⁽¹⁾		Current portion of long-term debt, net & Long-term debt, net		$	500,000		$	518,125		$	762,766		$	782,269

The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2026 (in thousands of US$):

 

Fair Value Measurements as of June 30, 2026

 

Balance Sheet Location

 

Total

 

(Level I)

 

(Level II)

 

(Level III)

(in ‘000s of US$)

ASSETS

Marketable securities

Investments, Current

223,176

—

The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2026 (in thousands of US$):


				Fair Value Measurements as of June 30, 2026
		Balance Sheet Location		Total			(Level I)			(Level II)			(Level III)

					(in ‘000s of US$)
ASSETS
Cash and cash equivalents		Cash and cash equivalents		$	1,008,268		$	1,008,268		$	—		$	—
LIABILITIES
Secured long-term debt, including current portion ⁽¹⁾		Current portion of long-term debt, net & Long-term debt, net		$	732,725		$	—		$	732,725		$	—
Unsecured long-term debt ⁽¹⁾		Long-term debt, net		$	518,125		$	518,125		$	—		$	—

The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2025 (in thousands of US$):

Fair Value Measurements as of December 31, 2025

 

Balance Sheet Location

 

Total

 

(Level I)

 

(Level II)

 

(Level III)

(in ‘000s of US$)

ASSETS

Marketable securities

Investments, Current

120,244

—

F-22

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

10.

Financial Instruments (Continued)

b. Fair Value of Financial Instruments (Continued)


				Fair Value Measurements as of December 31, 2025
		Balance Sheet Location		Total			(Level I)			(Level II)			(Level III)

				(in ‘000s of US$)
ASSETS
Cash and cash equivalents		Cash and cash equivalents		$	1,037,292		$	1,037,292		$	—		$	—
LIABILITIES
Secured long-term debt, including current portion ⁽¹⁾		Current portion of long-term debt, net & Long-term debt, net		$	415,016		$	—		$	415,016		$	—
Unsecured long-term debt ⁽¹⁾		Current portion of long-term debt, net & Long-term debt, net		$	782,269		$	782,269		$	—		$	—

(1)

Secured and unsecured long-term debt, including current portion is presented gross of deferred finance costs and debt discount of $22.0 million and $22.7 million (current and non current portions) as of June 30, 2026 and December 31, 2025, respectively. The fair value of the Company’s secured debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities.

11.

Commitments and Contingencies

There are no material legal proceedings to which the Company is a party or to which any of its properties are the subject, or other contingencies that the Company is aware of, other than routine litigation incidental to the Company’s business.

The Company has outstanding commitments under vessel construction contracts as of June 30, 2026, see Note 3 “Fixed Assets, Net and Advances for Vessels Under Construction and Vessel Acquisition”.

12.

Stockholders’ Equity

During the six-month period ended June 30, 2026, the Company declared a dividend of $0.90 per share of common stock paid in each of March and June amounting to $32.8 million. During the six month period ended June 30, 2025, the Company declared a dividend of $0.85 per share of common stock paid in each of February and June amounting to $31.5 million. The Company issued 92 and 98 shares of common stock pursuant to its dividends reinvestment plan in the six-month periods ended June 30, 2026 and June 30, 2025, respectively.

In June 2022, the Company announced a share repurchase program of up to $100.0 million of the Company’s common stock. This share repurchase program was upsized by $100.0 million on November 10, 2023 and by an additional $100.0 million on April 14, 2025 for a total aggregate amount of $300.0 million. The Company repurchased 60,819 shares of its common stock in the open market for $5.9 million in the six months ended June 30, 2026; 927,527 shares for $76.1 million in the year ended December 31, 2025; 661,103 shares for $53.9 million in the year ended December 31, 2024; 1,131,040 shares for $70.6 million in the year ended December 31, 2023 and 466,955 shares for $28.6 million in the year ended December 31, 2022. In total, as of June 30, 2026, the Company had repurchased a total of 3,247,444 shares of common stock for $235.1 million under this repurchase program. During the six months ended June 30, 2026, the Company settled $0.9 million of share repurchases that were executed in the fourth quarter of 2025, which are included in cash paid for repurchases of common stock in the condensed consolidated statement of cash flows.

F-23

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

12.

Stockholders’ Equity (Continued)

As of April 18, 2008, the Board of Directors and the Compensation Committee approved incentive compensation of the Manager’s employees with its shares from time to time, after specific for each such time, decision by the compensation committee and the Board of Directors in order to provide a means of compensation in the form of free shares to certain employees of the Manager of the Company’s common stock. The plan was effective as of December 31, 2008. Pursuant to the terms of the plan, employees of the Manager may receive (from time to time) shares of the Company’s common stock as additional compensation for their services offered during the preceding period. The total amount of stock to be granted to employees of the Manager will be at the Company’s Board of Directors’ discretion only and there will be no contractual obligation for any stock to be granted as part of the employees’ compensation package in future periods.

In August 2025, the Company granted 100,000 shares to the Manager for the year ending December 31, 2026 under the amended and restated management agreement with the Manager as described in Note 15 “Related Party Transactions”. The fair value of shares granted was calculated based on the closing trading price of the Company’s shares at the grant date.

In December 2024, the Company granted 30,000 shares of restricted stock to certain employees of the Manager, out of which 2,000 shares vested in December 2025, 4,000 shares will vest in December 2026, 8,000 shares in December 2027 and the remaining 16,000 shares in December 2028. As of June 30, 2026, 28,000 shares remained unvested and will remain restricted until they vest. The vesting of these shares is subject to satisfaction of the vesting terms, under the Company’s 2006 Equity Compensation Plan, as amended. The 30,000 restricted shares were issued and outstanding as of December 31, 2024, with aggregate compensation expense of $2.3 million related thereto expected to be recognized as the shares vest over a four-year period. In relation to the vesting of these 28,000 restricted shares to certain employees of the Manager and the 100,000 shares to vest to the Manager at the end of 2026 under the amended and restated management agreement (please refer to Note 15 “Related Party Transactions”), an amount of $4.8 million was recorded in the six months ended June 30, 2026 under “General and administrative expenses” in the condensed consolidated income statements. As of June 30, 2026, the weighted-average remaining term of the Manager’s compensation stock relating to non-vested restricted shares not yet recognized was $6.0 million. This cost is expected to be recognized over a weighted average period of 1.0 year.

The aggregate number of shares of common stock for which awards may be granted under the Plan shall not exceed 1,000,000 shares plus the number of unvested shares granted before August 2, 2019. The equity awards may be granted by the Company’s Compensation Committee or Board of Directors under its amended and restated 2006 equity compensation plan. Awards made under the Plan that have been forfeited, cancelled or have expired, will not be treated as having been granted for purposes of the preceding sentence.

The Company has also established the Directors Share Payment Plan under its 2006 equity compensation plan. The purpose of the plan is to provide a means of payment of all or a portion of compensation payable to directors of the Company in the form of Company’s Common Stock. The plan was effective as of April 18, 2008, and amended effective August 26, 2025. Each member of the Board of Directors of the Company may participate in the plan. Pursuant to the terms of the plan, directors may elect to receive in Common Stock all or a portion of their compensation. Following the last of each calendar quarter, the Company delivers to each Director the number of shares represented by the rights credited to their Share Payment Account during the preceding calendar quarter. During the six months ended June 30, 2026 and June 30, 2025, none of the directors elected to receive their compensation in Company shares.

F-24

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

13.

Lease Arrangements

Charters-out

As of June 30, 2026, the Company generated operating revenues from its 75 container vessels on time charters or bareboat charter agreements, with remaining terms ranging from less than one year to 2032. Additionally, the Company contracted 3-year, 5-year, 7-year and 10-year time charter agreements for the 23 out of 29 container vessels under construction as of June 30, 2026. Under the terms of the charter party agreements, most charterers have options to extend the duration of contracts ranging from less than one year to four years after the expiration of the contract. The Company determines fair value of its vessels at the lease commencement date and at the end of lease term for lease classification with the assistance from valuations obtained by third party independent shipbrokers. The Company manages its risk associated with the residual value of its vessels after the expiration of the charter party agreements by seeking multi-year charter arrangements for its vessels.

In May 2022, the Company received $238.9 million of charter hire prepayment related to charter contracts for 15 of the Company’s vessels, representing partial prepayment of charter hire payable up to January 2027. This charter hire prepayment is recognized in revenue through the remaining period of each charter party agreement, in addition to the contracted future minimum payments reflected in the table below. As of June 30, 2026, the outstanding balances of the current and non - current portion of unearned revenue in relation to this prepayment amounted to $11.2 million and nil, respectively. As of December 31, 2025, the outstanding balances of the current and non - current portion of unearned revenue in relation to this prepayment amounted to $20.3 million and $2.6 million, respectively.

The future minimum payments, expected to be received on non-cancellable time charters and bareboat charters classified as operating leases consisted of the following as of June 30, 2026 (in thousands of US$):


Period		in ‘000s of US$
2026 (remaining)	$	506,546
2027		967,838
2028		857,583
2029		681,556
2030		493,088
2031 and thereafter		801,033
Total future rentals	$	4,307,644

Rentals from time charters are not generally received when a vessel is off-hire, including time required for normal periodic maintenance of the vessel. In arriving at the future minimum rentals, an estimated time off-hire to perform periodic maintenance on each vessel has been deducted, although there is no assurance that such estimate will be reflective of the actual off-hire in the future.

F-25

Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

14.

Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:


		Three months ended June 30,
		2026			2025
Numerator:
Net income (in thousands of US$)		$	151,815		$	130,904

Denominator (number of shares in thousands):
Basic weighted average common shares outstanding			18,204			18,344
Effect of dilutive securities:
Dilutive effect of non-vested shares			52			52
Diluted weighted average common shares outstanding			18,256			18,396
Basic earnings per share (in US$ per share)		$	8.34		$	7.14
Diluted earnings per share (in US$ per share)		$	8.32		$	7.12


		Six months ended June 30,
		2026			2025
Numerator:
Net income (in thousands of US$)		$	292,236		$	246,051

Denominator (number of shares in thousands):
Basic weighted average common shares outstanding			18,207			18,546
Effect of dilutive securities:
Dilutive effect of non-vested shares			38			42
Diluted weighted average common shares outstanding			18,245			18,588
Basic earnings per share (in US$ per share)		$	16.05		$	13.27
Diluted earnings per share (in US$ per share)		$	16.02		$	13.24

15.

Related Party Transactions

On February 3, 2025, the Company entered into an amended and restated management agreement with Danaos Shipping Co. Ltd (the “Manager” or “Danaos Shipping”), effective as of January 1, 2025 until December 31, 2025, removing the provision of certain commercial services provided to the Company by Danaos Shipping and the related fees payable by the Company. Under this agreement the Company pays to the Manager the following fees:

(i)

an annual management fee of $2.0 million and 100,000 shares of the Company’s common stock, payable annually,

(ii)

a daily vessel management fee of $475 for vessels on bareboat charter, pro-rated for the number of calendar days the Company owns each vessel,

(iii)

a daily vessel management fee of $950 for vessels on time charter and voyage charter, pro-rated for the number of calendar days the Company owns each vessel,

(iv)

a flat fee of $850 thousand per newbuilding vessel, which is capitalized to the newbuilding cost, for the on premises supervision of any newbuilding contracts by selected engineers and others of its staff, and

(v)

a fee of $1 per Emission Allowance required to be surrendered by the Responsible entity under the EU ETS or any other applicable emission scheme in any calendar year.

On August 1, 2025, the Company further amended the management agreement with the Manager to extend the termination date to December 31, 2026, and under which the Company will pay the following fees:

(i)

an annual management fee of (a) $2.0 million for the remainder of 2025 and (b) $2.5 million effective as of January 1, 2026,

(ii)

100,000 shares of the Company’s common stock, payable annually in the fourth quarter of each year,

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

15.

Related Party Transactions (Continued)

(iii)

a daily vessel management fee of (a) $475 for vessels on bareboat charter for the remainder of 2025 and (b) $550 for vessels on bareboat charter for 2026, effective as of January 1, 2026, each pro-rated for the number of calendar days the Company owns each vessel,

(iv)

a daily vessel management fee (a) of $950 for vessels on time charter or voyage charter for the remainder of 2025 and (b) of $1,100 for vessels on time charter or voyage charter for 2026, effective as of January 1, 2026, each pro-rated for the number of calendar days the Company owns each vessel,

(v)

a flat fee of $850 thousand per newbuilding vessel, which is capitalized to the newbuilding cost, for on premises supervision of any newbuilding contracts by selected engineers and other staff, and

(vi)

a fee of $1 per Emission Allowance required to be surrendered by the Responsible entity under the EU ETS or any other applicable emission scheme in any calendar year.

On February 3, 2025, the Company entered into a brokerage services agreement with Danaos Chartering Services Inc. (“Danaos Chartering”), effective as of January 1, 2025 until December 31, 2025, for the provision of commercial services at the same fees previously payable to Danaos Shipping Company Limited. Danaos Chartering, a newly-formed affiliate of Danaos Shipping, is ultimately owned by Danaos Investment Limited (“DIL”), the Company’s largest stockholder. On August 1, 2025, the Company amended the brokerage services agreement with Danaos Chartering to extend the termination date to December 31, 2026. Except for this change in the termination time, all other terms and fee structures of the agreement remain unchanged, under which the Company will pay:

(i)

a management fee of 1.25%

(ii)

on all freight, charter hire, ballast bonus and demurrage for each vessel, and

(iii)

a fee of 1.0% based on the contract price of any vessel bought or sold by it on the Company’s behalf, including newbuilding contracts.

For the six month period ended June 30, 2026 and 2025, management fees to Danaos Shipping amounted to $18.2 million and $15.3 million, respectively, and are presented under “General and administrative expenses” in the condensed consolidated statements of income. For the six month periods ended June 30, 2026 and 2025, commissions for commercial services to Danaos Chartering and Danaos Shipping amounted to $6.8 million and $6.4 million, respectively, and are presented under “Voyage expenses” in the condensed consolidated statements of income. Commissions on the contract price of newly acquired vessels charged by Danaos Chartering and Danaos Shipping totaled $0.3 million and $1.2 million in the six months ended June 30, 2026 and the year ended December 31, 2025, respectively, and were capitalized to the cost of the newly acquired vessels. Additionally, supervision fees for vessels under construction charged by Danaos Shipping and capitalized to vessels under construction totaled $3.0 million and $1.9 million in the six months ended June 30, 2026 and the year ended December 31, 2025, respectively.

The balance “Due from related parties” in the condensed consolidated balance sheets totaling $59.0 million and $46.8 million as of June 30, 2026 and December 31, 2025, respectively, represents advances to the Manager on account of the vessels’ operating and other expenses.

The defined benefit obligation for executive officers of $21.7 million and $21.5 million is presented within “Other long-term liabilities” in the condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively. Prior service cost related to this obligation of $1.1 million and $0.6 million was reclassified from accumulated other comprehensive loss to “Other (expenses)/income, net” for the six months ended June 30, 2026 and 2025, respectively. Foreign exchange resulted in a gain of $0.6 million and a loss of $1.6 million, which were recognized in “Other (expenses)/income, net” for the six months ended June 30, 2026 and 2025, respectively. Interest cost of $0.3 million and $0.2 million was recognized in “Other finance expenses” for the six months ended June 30, 2026 and 2025, respectively. In addition, $2.3 million of amortization related to prior service cost and net loss is expected to be reclassified to “Other (expenses)/income, net” during the twelve-month period ending June 30, 2027.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

16.Operating Revenue

Operating revenue from time charters and bareboat charters and voyage charters for the six months ended June 30, 2026 and 2025, were as follows:


		Six months ended June 30,
		2026			2025
Time charters and bareboat charters		$	501,286		$	488,717
Voyage charters			26,782			26,744
Total Operating Revenue		$	528,068		$	515,461

As of June 30, 2026 and December 31, 2025, the Company had accounts receivable from voyage charter agreements amounting to $0.8 million and $3.1 million, respectively, and are presented under “Accounts receivable, net” in the condensed consolidated balance sheets.

The operating revenues received in advance from voyage charter agreements amounting to $1.6 million and nil is presented under current “Unearned revenue” in the condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively. Unearned revenue as of December 31, 2025 was recognized in earnings in the six months ended June 30, 2026 as the performance obligations were satisfied in that period. Unearned revenue related to voyage charter agreements in progress as of June 30, 2026 will be recognized in earnings as performance obligations will be satisfied.

Further, as of June 30, 2026, capitalized contract fulfilment costs, which are recorded under “Other current assets” in the condensed consolidated balance sheets, decreased by $0.9 million compared to December 31, 2025, to $0.6 million from $1.5 million. The outstanding balance is mainly affected by the timing of commencement of revenue recognition.

During the six months ended June 30, 2026, the Company entered into early termination agreements for certain vessels operating under time charter arrangements. In connection with these time charter terminations, the Company recorded a $5.1 million net gain within “Voyage Expenses”, in the condensed consolidated statement of income. The net gain mainly reflects the retention of bunkers on redelivery at no consideration.

17.Segments

Since the acquisition of the drybulk vessels in 2023, for management purposes, the Company is organized based on operating revenues generated from container vessels and drybulk vessels and have two reporting segments: (1) a container vessels segment and (2) a drybulk vessels segment. The container vessels segment owns and operates container vessels which are primarily chartered on multi-year, fixed-rate time charter and bareboat charter agreements. The drybulk vessels segment owns and operates drybulk vessels to provide drybulk commodities transportation services.

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM monitors and assesses the performance of the container vessels segment and the drybulk vessels segment based on each segment’s net income. The CODM uses segment net income to evaluate the overall profitability of each segment on a consistent basis, identify trends in segment-level operating performance, and make decisions regarding the allocation of capital between the two segments. Items included in the applicable segment’s net income are directly allocated to the extent that the items are directly or indirectly attributable to the segments. With regards to the items that are allocated by indirect calculations, their allocation is commensurate to the utilization of key resources. Other segment items include components that are not allocated to any of the Company’s reportable segments and include equity investments accounted for using the equity method of accounting and investments in marketable securities. These items are reviewed by the CODM at the consolidated level and are not considered in the evaluation of individual segment performance.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

17.Segments (Continued)

The following table summarizes the Company’s selected financial information for the six months ended June 30, 2026, by segment (in thousands of US$):


		Container			Drybulk
Income Statement Metrics for the six months		vessels			vessels
ended June 30, 2026 ⁽¹⁾		segment			segment			Total

		(in ‘000s of US$)
Operating revenues		$	468,200		$	59,868		$	528,068
Voyage expenses			(13,773)			(14,776)			(28,549)
Vessel operating expenses			(91,959)			(14,713)			(106,672)
Depreciation			(75,419)			(7,220)			(82,639)
Amortization of deferred drydocking and special survey costs			(16,640)			(6,142)			(22,782)
Interest income (excluding interest income from equity investments)			14,875			—			14,875
Interest expense and finance costs			(19,986)			—			(19,986)
Loss on debt extinguishment			(6,027)			—			(6,027)
Other segment items ⁽²⁾			(29,914)			(3,210)			(33,124)
Net Income per segment		$	229,357		$	13,807		$	243,164
Gain on investments, dividend income, interest income from equity investments and loss on equity investments									49,072
Net Income								$	292,236

(1)	In the table below, the significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2)	Other segment items for each reportable segment include general and administrative expenses, other finance expenses, other (expenses)/income, net, and loss on derivatives.

The following table summarizes the Company’s selected balance sheet metrics as of June 30, 2026, by segment (in thousands of US$):


		Container			Drybulk
		vessels			vessels
Balance Sheet Metrics as of June 30, 2026		segment			segment			Total

		(in ‘000s of US$)
Total Assets per segment		$	4,865,518		$	358,883		$	5,224,401
Marketable Securities ⁽¹⁾									223,176
Receivable from equity investments ⁽¹⁾									57
Total Assets								$	5,447,634

(1)	Reflected under “Other current assets” in the condensed consolidated balance sheet.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

17.Segments (Continued)

The following table summarizes the Company’s selected financial information for the six months ended June 30, 2025, by segment (in thousands of US$):


		Container			Drybulk
Income Statement Metrics for the six months		vessels			vessels
ended June 30, 2025 ⁽¹⁾		segment			segment			Total

		(in ‘000s of US$)
Operating revenues		$	475,636		$	39,825		$	515,461
Voyage expenses			(17,734)			(17,211)			(34,945)
Vessel operating expenses			(92,571)			(15,516)			(108,087)
Depreciation			(74,154)			(6,572)			(80,726)
Amortization of deferred drydocking and special survey costs			(18,252)			(4,233)			(22,485)
Interest income (excluding interest income from equity investments)			7,208			—			7,208
Interest expense and finance costs			(19,714)			—			(19,714)
Other segment items ⁽²⁾			(25,481)			(2,569)			(28,050)
Net Income per segment		$	234,938		$	(6,276)		$	228,662
Gain on investments, dividend income, interest income from equity investments and loss on equity investments									17,389
Net Income								$	246,051

(1)	In the table below, the significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2)	Other segment items for each reportable segment include general and administrative expenses, other finance expenses, other (expenses)/income, net, and loss on derivatives.

The following table summarizes the Company’s selected balance sheet metrics as of December 31, 2025, by segment (in thousands of US$):


		Container				Drybulk
		vessels				vessels
Balance Sheet Metrics as of December 31, 2025		segment				segment			Total

		(in ‘000s of US$)
Total Assets per segment		$	4,717,465		$	275,965		$	4,993,430
Marketable Securities ⁽¹⁾									120,244
Receivable from equity investments ⁽¹⁾									256
Total Assets								$	5,113,930

(1)	Reflected under “Other current assets” in the condensed consolidated balance sheet.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

18.Subsequent Events

In July 2026, the Company declared a dividend of $0.90 per share of common stock payable on July 30, 2026, to holders of record on July 21, 2026.

In July 2026, the Company took delivery of the 8,258 TEU under-construction container vessel with Hull No. YZJ2023-1556, named Santorini Express, which commenced a long-term charter upon delivery.

In July 2026, the Company drew down $57.75 million under the Syndicated $850.0 mil. Facility in connection with the delivery of the newbuilding vessel Santorini Express.

In July 2026, the Company entered into an Amended and Restated Management Agreement with the Manager and an Amended and Restated Commercial Agency Agreement with Danaos Chartering, in each case reflecting the extension of the term from December 31, 2026 to December 31, 2027, with no change in the services provided and fees payable thereunder, as well as an Amended and Restated Restrictive Covenant Agreement with the Company’s CEO and DIL, as Trustee of the 883 Trust, to reflect the entry into the related amended and restated management agreement and commercial agency agreement.

F-31