During the first quarter of fiscal 2026, the Board of Directors (the "Board") approved certain grants under a new Long-Term Incentive Program (the "2026 LTIP") that contain performance-based vesting conditions. The performance period for the 2026 LTIP commenced on November 1, 2025 and will end on October 31, 2028. At the end of the performance period, approximately 50% of the awards, if any, are payable in shares of Company stock, subject to a mandatory two-year post-vesting hold period and approximately 50% of the awards, if any, are paid in cash based on the earned phantom stock units.

During the third quarter of fiscal 2026, the Board approved certain grants under a new Performance Stock Units Program (the “2026 PSUs”) that also contain performance-based vesting conditions. The performance period for the 2026 PSUs commenced on June 12, 2026 and will end on April 30, 2027. Upon vesting, 50% of the awards, if any, are payable in shares of Company stock, subject to a mandatory two-year post-vesting hold period and approximately 50% of the awards, if any, are paid in cash based on the earned phantom stock units.

For the three and nine months ended July 31, 2026, stock-based compensation expense was $5.5 million ($5.5 million net of tax) and $8.9 million ($6.1 million net of tax), respectively. For the three and nine months ended July 31, 2025, stock-based compensation expense was $6.2 million ($4.4 million net of tax) and $14.1 million ($10.1 million net of tax), respectively.