AAP 10-Q report for 2025-10-04

AAP 10-Q report for 2025-10-04 aap-20251004 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM  10-Q ________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 4, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________. Commission file number 001-16797 _______________________________ ADVANCE AUTO PARTS, INC. (Exact name of registrant as specified in its charter) _________________________ Delaware 54-2049910 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 4200 Six Forks Road , Raleigh , North Carolina 27609 (Address of principal executive offices) (Zip Code) ( 540 ) 362-4911 (Registrant’s telephone number, including area code) Securities Registered Pursuant to Section 12(b) of the Act: Title of each class Trading symbol Name of each exchange on which registered Common Stock, $0.0001 par value AAP New York Stock Exchange Not Applicable (Former name, former address and former fiscal year, if changed since last report). Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Registration S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ As of October 27, 2025, the number of shares of the registrant’s common stock outstanding was 60,022,245 shares. Table of Contents TABLE OF CONTENTS Page NOTE REGARDING FORWARD LOOKING STATEMENTS 1 PART I. FINANCIAL INFORMATION Item 1.  Condensed Consolidated Financial Statements of Advance Auto Parts, Inc. and Subsidiaries (unaudited) 2 Condensed Consolidated Balance Sheets 2 Condensed Consolidated Statements of Operations 3 Condensed Consolidated Statements of Comprehensive Income 4 Condensed Consolidated Statements of Changes in Stockholders’ Equity 5 Condensed Consolidated Statements of Cash Flows 7 Notes to the Condensed Consolidated Financial Statements  9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3. Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.  Controls and Procedures  34 PART II.  OTHER INFORMATION  Item 1. Legal Proceedings 34 Item 1A. Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds  35 Item 5. Other Information 36 Item 6. Exhibits  37 SIGNATURE 38 Table of Contents FORWARD-LOOKING STATEMENTS Certain statements herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast, “guidance,” “intend,” “likely,” “may,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “should,” “strategy,” “target,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the Company’s strategic initiatives, restructuring and asset optimization plans, financial objectives, including with respect to the Company's reorganized debt capital structure, operational plans and objectives, statements about the benefits of the Company's Worldpac sale and use of proceeds therefrom, statements regarding expectations for economic conditions, future business and financial performance, including with respect to tariffs, as well as statements r Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3. Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.  Controls and Procedures  34 PART II.  OTHER INFORMATION  Item 1. Legal Proceedings 34 Item 1A. Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds  35 Item 5. Other Information 36 Item 6. Exhibits  37 SIGNATURE 38 Table of Contents FORWARD-LOOKING STATEMENTS Certain statements herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast, “guidance,” “intend,” “likely,” “may,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “should,” “strategy,” “target,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the Company’s strategic initiatives, restructuring and asset optimization plans, financial objectives, including with respect to the Company's reorganized debt capital structure, operational plans and objectives, statements about the benefits of the Company's Worldpac sale and use of proceeds therefrom, statements regarding expectations for economic conditions, future business and financial performance, including with respect to tariffs, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect the Company’s views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the Company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, the Company’s ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, risks associated with the Company’s restructuring and asset optimization plans, risks relating to incurrence of indebtedness and increased leverage, risks relating to the Company's credit ratings or perceived creditworthiness, deterioration of general macroeconomic conditions, geopolitical factors including increased tariffs and trade restrictions, the highly competitive nature of the industry, demand for the Company’s products and services, risks relating to the impairment of assets, including intangible assets such as goodwill, access to financing on favorable terms, complexities in the Company’s inventory and supply chain and challenges with transforming and growing its business. Please refer to “Item 1A. Risk Factors” of the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by the Company’s subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. 1 Table of Contents PART I. FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in millions, except par value amounts) (Unaudited) Assets October 4, 2025 December 28, 2024 Current assets: Cash and cash equivalents $ 3,174 $ 1,869 Receivables, net 483 544 Inventories, net 3,694 3,612 Other current assets 167 118 Total current assets 7,518 6,143 Property and equipment, net 1,269 1,334 Operating lease right-of-use assets 2,184 2,243 Goodwill 599 598 Other intangible assets, net 401 406 Other assets 88 74 Total assets $ 12,059 $ 10,798 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable 3,177 3,408 Accrued expenses 761 784 Other current liabilities 411 473 Total current liabilities 4,349 4,665 Long-term debt 3,411 1,789 Operating lease liabilities 1,850 1,897 Deferred income taxes 166 193 Other long-term liabilities 88 84 Total liabilities 9,864 8,628 Commitments and contingencies (Note 10) Stockholders’ equity: Preferred stock, nonvoting, $ 0.0001 par value, 10 million shares authorized; no shares issued or outstanding — — Common stock, voting, and additional paid-in capital, $ 0.0001 par value, 200 million shares authorized; 78 million shares issued and 60 million outstanding at October 4, 2025 and 78 million shares issued and 60 million outstanding at December 28, 2024 1,026 994 Treasury stock, at cost ( 2,944 ) ( 2,940 ) Accumulated other comprehensive loss ( 42 ) ( 47 ) Retained earnings 4,155 4,163 Total stockholders’ equity 2,195 2,170 Total liabilities and stockholders’ equity $ 12,059 $ 10,798 The accompanying notes to the condensed consolidated financial statements are an integral part of these statements. 2 Table of Contents Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in millions, except per share data) (Unaudited) Twelve Weeks Ended Forty Weeks Ended October 4, 2025 October 5, 2024 October 4, 2025 October 5, 2024 Net sales $ 2,036 $ 2,148 $ 6,628 $ 7,098 Cost of sales 1,155 1,240 3,764 4,037 Gross profit 881 908 2,864 3,061 Selling, general and administrative expenses, exclusive of restructuring and related expenses 826 895 2,771 2,933 Restructuring and related expenses 33 13 180 21 Selling, general and administrative expenses 859 908 2,951 2,954 Operating (loss) income 22 — ( 87 ) 107 Other, net: Interest expense ( 40 ) ( 19 ) ( 86 ) ( 62 ) Other income, net 16 2 61 12 Total other, net ( 24 ) ( 17 ) ( 25 ) ( 50 ) (Loss) income before income taxes ( 2 ) ( 17 ) ( 112 ) 57 Income tax (benefit) expense ( 1 ) 8 ( 150 ) 34 Net income (loss) from continuing operations ( 1 ) ( 25 ) 38 23 Net income from discontinued operations — 19 — 56 Net income (loss) $ ( 1 ) $ ( 6 ) $ 38 $ 79 Basic earnings (loss) per common share from continuing operations $ ( 0.02 ) $ ( 0.42 ) $ 0.63 $ 0.38 Basic earnings per common share from discontinued operations — 0.32 — 0.95 Basic earnings (loss) per common share $ ( 0.02 ) $ ( 0.10 ) $ 0.63 $ 1.33 Basic weighted-average common shares outstanding 60.0 59.7 59.9 59.6 Diluted earnings (loss) per common share from continuing operations $ ( 0.02 ) $ ( 0.42 ) $ 0.63 $ 0.38 Diluted earnings per common share from discontinued operations — 0.32 — 0.94 Diluted earnings (loss) per common share $ ( 0.02 ) $ ( 0.10 ) $ 0.63 $ 1.32 Diluted weighted-average common shares outstanding 60.0 59.9 60.5 59.9 The accompanying notes to the condensed consolidated financial statements are an integral part of these statements. 3 Table of Contents Condensed Consolidated Statements of Comprehensive Income (in millions) (Unaudited) Twelve Weeks Ended Forty Weeks Ended October 4, 2025 October 5, 2024 October 4, 2025 October 5, 2024 Net income (loss) $ ( 1 ) $ ( 6 ) $ 38 $ 79 Other comprehensive income (loss): Currency translation adjustments ( 1 ) 1 5 9 Total other comprehensive income (loss) ( 1 ) 1 5 9 Comprehensive income (loss) $ ( 2 ) $ ( 5 ) $ 43 $ 88 The accompanying notes to the condensed consolidated financial statements are an integral part of these statements. 4 Table of Contents Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Statements of Changes in Stockholders’ Equity (in millions, except per share data) (Unaudited) Twelve Weeks Ended October 4, 2025 Common Stock and Additional Paid-In-Capital Treasury Stock, at Cost Accumulated Other Comprehensive Loss Retained Earnings Total Stockholders’ Equity Shares Amount Balance at July 12, 2025 60 $ 1,016 $ ( 2,943 ) $ ( 41 ) $ 4,171 $ 2,203 Net loss —  —  —  —  ( 1 ) ( 1 ) Total other comprehensive loss —  —  —  ( 1 ) —  ( 1 ) Share-based compensation —  9 —  —  —  9 Common stock issued under employee benefit plans 1 —  —  —  1 Repurchases of common stock —  —  ( 1 ) —  —  ( 1 ) Dividends declared ($ 0.25 per common share) —  —  —  —  ( 15 ) ( 15 ) Balance at October 4, 2025 60 $ 1,026 $ ( 2,944 ) $ ( 42 ) $ 4,155 $ 2,195 Twelve Weeks Ended October 5, 2024 Common Stock and Additional Paid-In-Capital Treasury Stock, at Cost Accumulated Other Comprehensive Loss Retained Earnings Total Stockholders’ Equity Shares Amount Balance at July 13, 2024 60 $ 976 $ ( 2,938 ) $ ( 44 ) $ 4,613 $ 2,607 Net loss —  —  —  —  ( 6 ) ( 6 ) Total other comprehensive income —  —  —  1 —  1 Share-based compensation —  11 —  —  —  11 Common stock issued under employee benefit plans —  1 —  —  —  1 Repurchases of common stock —  —  ( 1 ) —  —  ( 1 ) Dividends declared ($ 0.25 per common share) —  —  —  —  ( 15 ) ( 15 ) Balance at October 5, 2024 60 $ 988 $ ( 2,939 ) $ ( 43 ) $ 4,592 $ 2,598 The accompanying notes to the condensed consolidated financial statements are an integral part of these statements. 5 Table of Contents Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Statements of Changes in Stockholders’ Equity (in millions, except per share data) (Unaudited) Forty Weeks Ended October 4, 2025 Common Stock and Additional Paid-In Capital Treasury Stock, at Cost Accumulated Other Comprehensive Loss Retained Earnings Total Stockholders’ Equity Shares Amount Balance at December 28, 2024 60 $ 994 $ ( 2,940 ) $ ( 47 ) $ 4,163 $ 2,170 Net income —  —  —  —  38 38 Total other comprehensive income —  —  —  5 —  5 Share-based compensation —  29 —  —  —  29 Common stock issued under employee benefit plans —  3 —  —  —  3 Repurchases of common stock —  —  ( 4 ) —  —  ( 4 ) Dividends declared ($ 0.75 per common share) —  —  —  —  ( 46 ) ( 46 ) Balance at October 4, 2025 60 $ 1,026 $ ( 2,944 ) $ ( 42 ) $ 4,155 $ 2,195 Forty Weeks Ended October 5, 2024 Common Stock and Additional Paid-In Capital Treasury Stock, at Cost Accumulated Other Comprehensive Loss Retained Earnings Total Stockholders’ Equity Shares Amount Balance at December 30, 2023 60 $ 946 $ ( 2,933 ) $ ( 52 ) $ 4,559 $ 2,520 Net income —  —  —  —  79 79 Total other comprehensive income —  —  —  9 —  9 Share-based compensation —  39 —  —  —  39 Common stock issued under employee benefit plans —  3 —  —  —  3 Repurchases of common stock —  —  ( 6 ) —  —  ( 6 ) Dividends declared ($ 0.75 per common share) —  —  —  —  ( 46 ) ( 46 ) Balance at October 5, 2024 60 $ 988 $ ( 2,939 ) $ ( 43 ) $ 4,592 $ 2,598 The accompanying notes to the condensed consolidated financial statements are an integral part of these statements. 6 Table of Contents Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in millions) (Unaudited) Forty Weeks Ended October 4, 2025 October 5, 2024 Cash flows from operating activities: Net income $ 38 $ 79 Net income from discontinued operations — 56 Net income from continuing operations 38 23 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 214 217 Share-based compensation 29 34 Loss (gain) on sale and impairment of long-lived assets, net 23 ( 14 ) Expected future credit losses, net 50 23 Provision for deferred income taxes ( 27 ) 24 Other, net 14 3 Net change in: Receivables, net 46 ( 84 ) Inventories, net ( 75 ) ( 152 ) Operating lease right of use assets 41 ( 43 ) Other assets ( 57 ) ( 3 ) Accounts payable ( 270 ) ( 25 ) Accrued expenses ( 37 ) 31 Operating lease liabilities ( 108 ) 47 Other liabilities 1 — Net cash (used in) provided by operating activities of continuing operations ( 118 ) 81 Net cash provided by operating activities of discontinued operations — 77 Net cash (used in) provided by operating activities ( 118 ) 158 Cash flows from investing activities: Purchases of property and equipment ( 159 ) ( 130 ) Proceeds from sales of property and equipment 22 14 Net cash used in investing activities of continuing operations ( 137 ) ( 116 ) Net cash used in investing activities of discontinued operations — ( 8 ) Net cash used in investing activities ( 137 ) ( 124 ) Cash flows from financing activities: Proceeds from issuance of long-term debt 1,950 — Repayment of long-term debt ( 300 ) — Debt issuance costs ( 42 ) — Dividends paid ( 45 ) ( 45 ) Proceeds from the issuance of common stock 3 3 Repurchases of common stock ( 4 ) ( 6 ) Other, net ( 3 ) ( 10 ) Net cash provided by (used in) financing activities 1,559 ( 58 ) Effect of exchange rate changes on cash 1 12 7 Table of Contents Forty Weeks Ended October 4, 2025 October 5, 2024 Net increase (decrease) in cash and cash equivalents 1,305 ( 12 ) Cash and cash equivalents , beginning of period 1,869 503 Cash and cash equivalents , end of period $ 3,174 $ 491 Non-cash transactions of continuing operations: Accrued purchases of property and equipment $ 23 $ 9 Transfers of property and equipment from (to) assets related to discontinued operations to (from) continuing operations — 7 Accrued debt issuance costs 4 — Summary of cash and cash equivalents: Cash and cash equivalents of continuing operations , end of period 3,174 464 Cash and cash equivalents of discontinued operations , end of period — 27 Cash and cash equivalents , end of period $ 3,174 $ 491 The accompanying notes to the condensed consolidated financial statements are an integral part of these statements. 8 Table of Contents Advance Auto Parts, Inc. and Subsidiaries Notes to the Condensed Consolidated Financial Statements (Amounts presented in millions, except per share data, unless otherwise stated) (Unaudited) 1.     Nature of Operations and Basis of Presentation Description of Business Advance Auto Parts, Inc. and subsidiaries is a lead Item 1A. Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds  35 Item 5. Other Information 36 Item 6. Exhibits  37 SIGNATURE 38 Table of Contents FORWARD-LOOKING STATEMENTS Certain statements herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast, “guidance,” “intend,” “likely,” “may,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “should,” “strategy,” “target,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the Company’s strategic initiatives, restructuring and asset optimization plans, financial objectives, including with respect to the Company's reorganized debt capital structure, operational plans and objectives, statements about the benefits of the Company's Worldpac sale and use of proceeds therefrom, statements regarding expectations for economic conditions, future business and financial performance, including with respect to tariffs, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect the Company’s views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the Company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, the Company’s ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, risks associated with the Company’s restructuring and asset optimization plans, risks relating to incurrence of indebtedness and increased leverage, risks relating to the Company's credit ratings or perceived creditworthiness, deterioration of general macroeconomic conditions, geopolitical factors including increased tariffs and trade restrictions, the highly competitive nature of the industry, demand for the Company’s products and services, risks relating to the impairment of assets, including intangible assets such as goodwill, access to financing on favorable terms, complexities in the Company’s inventory and supply chain and challenges with transforming and growing its business. Please refer to “Item 1A. Risk Factors” of the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by the Company’s subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. 1 Table of Contents PART I. FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in millions, except par value amounts) (Unaudited) Assets October 4, 2025 December 28, 2024 Current assets: Cash and cash equivalents $ 3,174 $ 1,869 Receivables, net 483 544 Inventories, net 3,694 3,612 Other current assets 167 118 Total current assets 7,518 6,143 Property and equipment, net 1,269 1,334 Operating lease right-of-use assets 2,184 2,243 Goodwill 599 598 Other intangible assets, net 401 406 Other assets 88 74 Total assets $ 12,059 $ 10,798 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable 3,177 3,408 Accrued expenses 761 784 Other current liabilities 411 473 Total current liabilities 4,349 4,665 Long-term debt 3,411 1,789 Operating lease liabilities 1,850 1,897 Deferred income taxes 166 193 Other long-term liabilities 88 84 Total liabilities 9,864 8,628 Commitments and contingencies (Note 10) Stockholders’ equity: Preferred stock, nonvoting, $ 0.0001 par value, 10 million shares authorized; no shares issued or outstanding — — Common stock, voting, and additional paid-in capital, $ 0.0001 par value, 200 million shares authorized; 78 million shares issued and 60 million outstanding at October 4, 2025 and 78 million shares issued and 60 million outstanding at December 28, 2024 1,026 994 Treasury stock, at cost ( 2,944 ) ( 2,940 ) Accumulated other comprehensive loss ( 42 ) ( 47 ) Retained earnings 4,155 4,163 Total stockholders’ equity 2,195 2,170 Total liabilities and stockholders’ equity $ 12,059 $ 10,798 The accompanying notes to the condensed consolidated financial statements are an integral part of these statements. 2 Table of Contents Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in millions, except per share data) (Unaudited) Twelve Weeks Ended Forty Weeks Ended October 4, 2025 October 5, 2024 October 4, 2025 October 5, 2024 Net sales $ 2,036 $ 2,148 $ 6,628 $ 7,098 Cost of sales 1,155 1,240 3,764 4,037 Gross profit 881 908 2,864 3,061 Selling, general and administrative expenses, exclusive of restructuring and related expenses 826 895 2,771 2,933 Restructuring and related expenses 33 13 180 21 Selling, general and administrative expenses 859 908 2,951 2,954 Operating (loss) income 22 — ( 87 ) 107 Other, net: Interest expense ( 40 ) ( 19 ) ( 86 ) ( 62 ) Other income, net 16 2 61 12 Total other, net ( 24 ) ( 17 ) ( 25 ) ( 50 ) (Loss) income before income taxes ( 2 ) ( 17 ) ( 112 ) 57 Income tax (benefit) expense ( 1 ) 8 ( 150 ) 34 Net income (loss) from continuing operations ( 1 ) ( 25 ) 38 23 Net income from discontinued operations — 19 — 56 Net income (loss) $ ( 1 ) $ ( 6 ) $ 38 $ 79 Basic earnings (loss) per common share from continuing operations $ ( 0.02 ) $ ( 0.42 ) $ 0.63 $ 0.38 Basic earnings per common share from discontinued operations — 0.32 — 0.95 Basic earnings (loss) per common share $ ( 0.02 ) $ ( 0.10 ) $ 0.63 $ 1.33 Basic weighted-average common shares outstanding 60.0 59.7 59.9 59.6 Diluted earnings (loss) per common share from continuing operations $ ( 0.02 ) $ ( 0.42 ) $ 0.63 $ 0.38 Diluted earnings per common share from discontinued operations — 0.32 — 0.94 Diluted earnings (loss) per common share $ ( 0.02 ) $ ( 0.10 ) $ 0.63 $ 1.32 Diluted weighted-average common shares outstanding 60.0 59.9 60.5 59.9 The accompanying notes to the condensed consolidated financial statements are an integral part of these statements. 3 Table of Contents Condensed Consolidated Statements of Comprehensive Income (in millions) (Unaudited) Twelve Weeks Ended Forty Weeks Ended October 4, 2025 October 5, 2024 October 4, 2025 October 5, 2024 Net income (loss) $ ( 1 ) $ ( 6 ) $ 38 $ 79 Other comprehensive income (loss): Currency translation adjustments ( 1 ) 1 5 9 Total other comprehensive income (loss) ( 1 ) 1 5 9 Comprehensive income (loss) $ ( 2 ) $ ( 5 ) $ 43 $ 88 The accompanying notes to the condensed consolidated financial statements are an integral part of these statements. 4 Table of Contents Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Statements of Changes in Stockholders’ Equity (in millions, except per share data) (Unaudited) Twelve Weeks Ended October 4, 2025 Common Stock and Additional Paid-In-Capital Treasury Stock, at Cost Accumulated Other Comprehensive Loss Retained Earnings Total Stockholders’ Equity Shares Amount Balance at July 12, 2025 60 $ 1,016 $ ( 2,943 ) $ ( 41 ) $ 4,171 $ 2,203 Net loss —  —  —  —  ( 1 ) ( 1 ) Total other comprehensive loss —  —  —  ( 1 ) —  ( 1 ) Share-based compensation —  9 —  —  —  9 Common stock issued under employee benefit plans 1 —  —  —  1 Repurchases of common stock —  —  ( 1 ) —  —  ( 1 ) Dividends decla Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” As of October 4, 2025 , other than for the changes disclosed in the “Notes to Condensed Consolidated Financial Statements”, and “Liquidity and Capital Resources” in this Quarterly Report, there have been no other material changes to the Company’s expected working and other capital requirements described in the Company’s 2024 Annual Report on Form 10-K. 33 Table of Contents ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Interest rates on all of the Company’s long-term debt, inclusive of the August 2025 Senior Unsecured Notes, are fixed and not subject to interest rate risk. The Company’s new ABL Facility may be exposed to interest rate risk as interest on borrowings under the ABL Facility accrue interest based on either (i) SOFR plus an applicable margin or (ii) an alternative base rate plus an applicable margin, however, as of October 4, 2025, the Company had no borrowings outstanding under its ABL Facility. The Company also generates interest income on cash and cash equivalents. These interest rates as subject to changes in market conditions and interest rate risk. There was a material increase in the Company’s cash and cash equivalents during the third quarter of 2025, due to the net proceeds received from the issuance the new Senior Unsecured Notes and redemption of the previously outstanding 5.90% Senior Notes due 2026. A hypothetical 100 basis points change in interest rates would have an annualized impact of approximately $32 million based on our balance of cash and cash equivalents as of October 4, 2025. There have been no other significant changes in the Company’s exposure to market risk since December 28, 2024. See “Item 7A. Quantitative and Qualitative Disclosures about Market Risk” in the Company’s 2024 Form 10-K. ITEM 4. CONTROLS AND PROCEDURES Disclosure Controls and Procedures Disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are management’s controls and other procedures that are designed to ensure that information required to be disclosed by management in the Company’s reports that are filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Company’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Internal controls over financial reporting, no matter how well designed, have inherent limitations, including the possibility of human error and the override of controls. Therefore, even those systems determined to be effective can provide only “reasonable assurance” with respect to the reliability of financial reporting and financial statement preparation and presentation. Further, because of changes in conditions, the effectiveness may vary over time. Management evaluated, with the participation of the Company’s principal executive officer and principal financial officer, the effectiveness of the Company’s disclosure controls and procedures as of October 4, 2025. Based on this evaluation, the principal executive officer and the principal financial officer have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level. Changes in Internal Control Over Financial Reporting There has been no change in the Company’s internal control over financial reporting during the third quarter ended October 4, 2025, that has materially affected or is reasonably likely to materially affect its internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. PART II.     OTHER INFORMATION None. ITEM 1.      LEGAL PROCEEDINGS Information regarding certain legal proceedings is provided in this Quarterly Report. See Note 10. Commitments and Contingencies, of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1. ITEM 1A. RISK FACTORS The Company’s future business, operations and financial results are subject to various risks and uncertainties, including those described in Part I, Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 28, 2024, which could adversely affect the Company’s business, financial condition, results of operations, cash flows and future prospects, which could in turn materially affect the price of the Company’s common stock. Except for the risk factor set forth below, there have been no material changes to the Company’s risk factors since the 2024 Form 10-K. 34 Table of Contents An unstable global economic and geopolitical landscape increases uncertainty about key areas of doing busines

The provided excerpt is only the Form 10‑Q cover page for GE Vernova Inc. (GEV) for quarter ended 2026‑06‑30, with no financial statements, MD&A, segment results, guidance, backlog, risks, or other performance details included. As-is, it contains almost no trade-relevant incremental information beyond confirming the filing/period and listing details.

This excerpt is only the cover page/header of Sleep Number’s Form 10-Q for the quarter ended April 4, 2026. It contains filing metadata (issuer, ticker, exchange, address) but no financial statements, MD&A, guidance, risks, or operational commentary. As a result, it is not directly actionable for trading beyond confirming the filing exists.

The provided excerpt is only the cover/filing header of SoundHound AI, Inc.’s 10‑Q for the quarter ended 2026‑03‑31. It contains listing/security identifiers (SOUN, SOUNW) but no financial statements, MD&A, guidance, risk updates, liquidity details, or material events. As a result, there is insufficient information to form high-confidence, actionable bullish/bearish theses beyond generic “company filed its 10‑Q” metadata.

The provided excerpt is only the boilerplate cover/filing-status section of Teucrium Commodity Trust’s Form 10‑Q for period ended 2026‑03‑31, with no portfolio holdings, performance, risk, or material updates included. As-is, it contains no actionable investment information beyond confirming the existence of the filing and the issuer/ticker identity (WEAT).

The provided text is only the cover/header portion of Archer Aviation’s Form 10‑Q for the quarter ended 2026‑03‑31 (issuer identity, exchange listing, and securities outstanding). It contains no operating/financial results, guidance, liquidity details, backlog, or risk-factor updates—so it is minimally actionable for trading beyond basic security identifiers and a generic dilution/optionality consideration from warrants.

This excerpt is essentially the cover page of CleanSpark, Inc.’s Form 10-Q for the quarter ended March 31, 2026. It contains identifiers (CIK/file no.), listing venue, and security descriptions (common stock and redeemable warrants with specific exercise terms), but no operating/financial results, guidance, risks, or MD&A detail. Actionability is therefore limited to capital-structure/dilution considerations around the listed warrant.

This excerpt of AST SpaceMobile’s 10‑Q is largely SEC cover-page/boilerplate (registrant info, exchange listing, filing compliance) and contains no financial results, guidance, liquidity, risk-factor updates, or operating metrics. As provided, it does not create a clear tradable catalyst beyond confirming continued reporting/listing status.

This excerpt only includes the cover page of Super Micro Computer, Inc.’s Form 10‑Q for the quarter ended March 31, 2026. It confirms the filing, issuer identity, listing (Nasdaq), and ticker (SMCI), but contains no financial results, guidance, risks, or MD&A content to support a directional investment view.