ETD

MKT CAP $498.5MP/E 12.7DIV YIELD —FCF YIELD 8.31%REV TTM $579.5M −5.7%NET INCOME $39.9M −22.7%NET CASH $23.4M52W 18.68 – 28.19SEC XBRL · TTM TO Invalid Date

How ETD rewrote its risk factors

10-K ITEM 1A · FY2025 → FY2026

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Raw Materials and other Commodity Price Risk We are exposed to market risk from changes in the cost of raw materials used in our manufacturing processes, principally wood, fabric and foam products.
The cost of foam products, which are petroleum-based, is sensitive to changes in the price of crude oil.
We are also exposed to risk with respect to transportation costs, including shipping container and fuel prices, for receiving, shipping and delivering our products.
We have been able to reduce certain manufacturing input costs by identifying lower cost alternatives in raw materials, reposition our retail design centers and implement operational efficiencies, including lower headcount, which have helped to minimize the impact of inflation.
AND SUBSIDIARIES Commercial Real Estate Market Risk We have exposure to market risk related to conditions in the commercial real estate market.
At June 30, 2026, there were 141 Company-operated retail design centers, of which 48 are owned and 93 leased.
At June 30, 2026, the unamortized balance of such right-of-use assets totaled $107.7 million.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Consolidated Financial Statements and Supplementary Data Page Management’s Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets at June 30, 2026 and 2025 Consolidated Statements of Comprehensive Income for the years ended June 30, 2026, 2025 and 2024 Consolidated Statements of Cash Flows for the years ended June 30, 2026, 2025 and 2024 Consolidated Statements of Shareholders’ Equity for the years ended June 30, 2026, 2025 and 2024 Notes to Consolidated Financial Statements ETHAN ALLEN INTERIORS INC.
In addition, our consolidated financial statements as of June 30, 2026 and 2025 and for each of the years in the three-year period ended June 30, 2026, and the related notes, have been audited by CohnReznick LLP, an independent registered public accounting firm, whose report also appears in this Annual Report on Form 10-K.
Our internal control over financial reporting includes those policies and procedures that: ● pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; ● provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and ● provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our consolidated financial statements.
Based on this evaluation, management has concluded that our internal control over financial reporting was effective as of June 30, 2026 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external reporting purposes in accordance with GAAP.
The effectiveness of our internal control over financial reporting as of June 30, 2026 has been audited by CohnReznick LLP, an independent registered public accounting firm, as stated in their report, which is included herein.
Opinion on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of Ethan Allen Interiors Inc. and subsidiaries (the “Company”) as of June 30, 2026 and 2025, the related consolidated statements of comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended June 30, 2026, and the related notes (collectively referred to as the “consolidated financial statements”).
We have also audited the Company’s internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the three-year period ended June 30, 2026, in conformity with accounting principles generally accepted in the United States of America.
Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
As discussed in Note 3 to the consolidated financial statements, as of June 30, 2026, Property, plant and equipment, net , was $210.2 million and the Operating lease right-of-use assets were $109.2 million.
During the year ended June 30, 2026, the Company recognized impairment charges totaling $0.4 million related to two design centers.
These impairments were driven by negative cash flows and the inability to recover carrying values through undiscounted future cash flows, which indicated that the carrying values of the associated asset groups were not recoverable.
How our Audit Addressed the Critical Audit Matter Our principal audit procedures related to this critical audit matter included the following: ● We evaluated the design and tested the operating effectiveness of internal controls pertaining to the retail design center impairment analysis, inclusive of those controls pertaining to the identification of triggering events. ● We evaluated management’s significant accounting policies related to the consideration of impairment for long-lived assets for reasonableness. ● We evaluated the reasonableness of the underlying data used in management’s impairment analysis and management’s conclusions on the impairment charges recorded during the year ended June 30, 2026.
We have served as the Company’s auditor since 2022. /s/ CohnReznick LLP New York, New York September 3, 2026 ETHAN ALLEN INTERIORS INC.
AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except par value) June 30, 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 73,628 $ 76,178 Investments, short-term 59,622 59,955 Accounts receivable, net 4,386 6,066 Inventories, net 148,463 140,893 Prepaid expenses and other current assets 19,354 26,841 Total current assets 305,453 309,933 Property, plant and equipment, net 205,651 210,238 Goodwill 25,388 25,388 Intangible assets 19,740 19,740 Operating lease right-of-use assets 107,710 109,173 Deferred income taxes Investments, long-term 54,244 60,030 Other assets 1,343 2,228 TOTAL ASSETS $ 719,673 $ 737,099 LIABILITIES Current liabilities: Accounts payable and accrued expenses $ 30,120 $ 22,137 Customer deposits 62,730 75,068 Accrued compensation and benefits 22,876 23,625 Current operating lease liabilities 26,910 27,403 Other current liabilities 5,728 4,618 Total current liabilities 148,364 152,851 Operating lease liabilities, long-term 93,463 96,263 Deferred income taxes 2,359 2,054 Other long-term liabilities 4,026 3,662 TOTAL LIABILITIES $ 248,212 $ 254,830 Commitments and contingencies (See Note 20) SHAREHOLDERS' EQUITY Preferred stock, $ 0.01 par value; 1,055 shares authorized; none issued $ - $ - Common stock, $ 0.01 par value; 150,000 shares authorized; 49,717 and 49,640 shares issued; 25,196 and 25,432 shares outstanding at June 30, 2026 and 2025, respectively Additional paid-in-capital 390,879 389,672 Treasury stock, at cost: 24,521 and 24,208 shares at June 30, 2026 and 2025, respectively ( 693,697 ) ( 687,003 ) Retained earnings 778,478 784,878 Accumulated other comprehensive loss ( 4,611 ) ( 5,688 ) Total Ethan Allen Interiors Inc. shareholders' equity 471,546 482,355 Noncontrolling interests ( 85 ) ( 86 ) TOTAL SHAREHOLDERS' EQUITY 471,461 482,269 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 719,673 $ 737,099 See accompanying notes to consolidated financial statements.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands, except share data) Fiscal Year Ended June 30, 2026 2025 2024 Net sales $ 579,487 $ 614,649 $ 646,221 Cost of sales 224,716 242,528 253,159 Gross profit 354,771 372,121 393,062 Selling, general and administrative expenses 308,646 309,790 315,148 Restructuring and other charges, net of gains 1,109 ( 77 ) Operating income 45,016 61,988 77,991 Interest and other income, net 8,388 7,275 7,700 Interest and other financing costs Income before income taxes 53,177 69,020 85,446 Income tax expense 13,294 17,424 21,630 Net income $ 39,883 $ 51,596 $ 63,816 Per share data Basic earnings per common share Net income per basic share $ 1.56 $ 2.02 $ 2.50 Basic weighted average common shares 25,539 25,554 25,525 Diluted earnings per common share Net income per diluted share $ 1.56 $ 2.01 $ 2.49 Diluted weighted average common shares 25,584 25,634 25,644 Comprehensive income Net income $ 39,883 $ 51,596 $ 63,816 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 1,564 ( 678 ) ( 1,866 ) Other ( 486 ) ( 843 ) Other comprehensive income (loss), net of tax 1,078 ( 1,521 ) ( 1,446 ) Comprehensive income $ 40,961 $ 50,075 $ 62,370 See accompanying notes to consolidated financial statements.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Fiscal Year Ended June 30, 2026 2025 2024 Cash Flows from Operating Activities Net income $ 39,883 $ 51,596 $ 63,816 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 15,244 15,523 15,956 Stock-based compensation expense 1,207 1,527 1,450 Non-cash operating lease cost 32,884 32,748 31,959 Deferred income taxes ( 525 ) ( 205 ) Restructuring and other charges, net of gains 1,109 ( 77 ) Payments on restructuring and other charges ( 3,988 ) ( 816 ) ( 2,617 ) Loss on disposal of property, plant and equipment Proceeds from insurance recoveries 2,172 1,598 Other ( 115 ) Changes in operating assets and liabilities: Accounts receivable, net 1,680 4,811 Inventories, net ( 8,435 ) 1,116 6,194 Prepaid expenses and other current assets 8,102 ( 5,999 ) ( 869 ) Customer deposits ( 12,338 ) 1,597 ( 4,294 ) Accounts payable and accrued expenses 6,655 ( 5,204 ) ( 1,732 ) Accrued compensation and benefits ( 749 ) 2,917 ( 2,833 ) Operating lease liabilities ( 34,695 ) ( 34,450 ) ( 32,981 ) Other assets and liabilities 2,101 ( 87 ) Net cash provided by operating activities 52,477 61,696 80,195 Cash Flows from Investing Activities Capital expenditures ( 11,041 ) ( 11,268 ) ( 9,606 ) Proceeds from sales of investments 59,812 94,136 124,477 Purchases of investments ( 54,816 ) ( 85,225 ) ( 134,911 ) Proceeds from sales of property, plant and equipment - - Proceeds from insurance recoveries 3,225 - - Net cash used in investing activities ( 2,820 ) ( 2,357 ) ( 19,991 ) Cash Flows from Financing Activities Payment of cash dividends ( 46,283 ) ( 50,084 ) ( 50,269 ) Proceeds from employee stock plans - Taxes paid related to net share settlement of equity awards ( 1,846 ) ( 2,207 ) ( 2,150 ) Repurchases of common stock ( 4,804 ) - - Payments on financing leases and other ( 371 ) ( 351 ) ( 421 ) Net cash used in financing activities ( 53,304 ) ( 52,599 ) ( 52,331 ) Effect of exchange rate changes on cash and cash equivalents ( 1 ) ( 279 ) Net (decrease) increase in cash, cash equivalents and restricted cash ( 3,327 ) 6,739 7,594 Cash, cash equivalents and restricted cash at beginning of year 76,955 70,216 62,622 Cash, cash equivalents and restricted cash at end of year $ 73,628 $ 76,955 $ 70,216 See accompanying notes to consolidated financial statements.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In thousands) Accumulated Additional Other Non- Common Stock Paid-in Treasury Stock Comprehensive Retained Controlling Total Shares Par Value Capital Shares Amount Loss Earnings Interests Equity Balance at June 30, 2023 49,426 $ $ 386,146 24,070 $ ( 682,646 ) $ ( 2,785 ) $ 769,819 $ ( 22 ) $ 471,006 Net income - - - - - - 63,816 - 63,816 Common stock issued on share-based awards - - - - - - Stock-based compensation expense - - 1,450 - - - - - 1,450 Restricted and performance stock unit vesting ( 1 ) ( 2,150 ) - - - ( 2,150 ) Cash dividends declared and paid - - - - - - ( 50,269 ) - ( 50,269 ) Other comprehensive (loss) income - - - - - ( 1,404 ) - ( 42 ) ( 1,446 ) Balance at June 30, 2024 49,550 $ $ 388,104 24,138 $ ( 684,796 ) $ ( 4,189 ) $ 783,366 $ ( 64 ) $ 482,916 Net income - - - - - - 51,596 - 51,596 Common stock issued on share-based awards - - - - - - Stock-based compensation expense - - 1,527 - - - - - 1,527 Restricted and performance stock unit vesting ( 2 ) ( 2,207 ) - - - ( 2,208 ) Cash dividends declared and paid - - - - - - ( 50,084 ) - ( 50,084 ) Other comprehensive (loss) income - - - - - ( 1,499 ) - ( 22 ) ( 1,521 ) Balance at June 30, 2025 49,640 $ $ 389,672 24,208 $ ( 687,003 ) $ ( 5,688 ) $ 784,878 $ ( 86 ) $ 482,269 Net income - - - - - - 39,883 - 39,883 Stock-based compensation expense - - 1,207 - - - - - 1,207 Restricted and performance stock unit vesting - ( 1,846 ) - - - ( 1,845 ) Repurchases of common stock - - - ( 4,848 ) - - - ( 4,848 ) Cash dividends declared and paid - - - - - - ( 46,283 ) - ( 46,283 ) Other comprehensive (loss) income - - - - - 1,077 - 1,078 Balance at June 30, 2026 49,717 $ $ 390,879 24,521 $ ( 693,697 ) $ ( 4,611 ) $ 778,478 $ ( 85 ) $ 471,461 See accompanying notes to consolidated financial statements.
At June 30, 2026, there were 141 Company-operated retail design centers with 136 located in the U.S. and five in Canada.
We also have 43 independently owned and operated Ethan Allen design centers located in the U.S., Asia, the Middle East and Europe.
At June 30, 2026, we own and operate eleven manufacturing facilities, including four manufacturing plants, one sawmill, one rough mill and one kiln dry lumberyard in the U.S., three manufacturing plants in Mexico and one manufacturing plant in Honduras.
Reclassification The Company reclassified insurance proceeds received of $ 0.2 million and $ 1.6 million during fiscal 2025 and 2024, respectively, in the Consolidated Statements of Cash Flows from Payments on restructuring and other charges to Proceeds from insurance recoveries within Net cash provided by operating activities to conform to the current year’s presentation.
This change was made for disclosure purposes only and did not have any impact on previously reported results.
AND SUBSIDIARIES (3) Summary of Significant Accounting Policies Our significant accounting policies are summarized below.
Restricted Cash We present restricted cash as a component of total cash and cash equivalents on our consolidated statements of cash flows and within Other assets on our consolidated balance sheets.
At June 30, 2026 we did not have any restricted cash compared with $ 0.8 million in the prior year, which related to the Ethan Allen insurance captive.
Investments Our investments, both short-term and long-term, at June 30, 2026 consist solely of U.S.
There were no material gross unrealized gains or losses on the investments at June 30, 2026 or 2025 .
At June 30, 2026 and 2025, the allowance for credit losses was immaterial.
At both June 30, 2026 and 2025 our inventory reserves were $ 1.5 million.
AND SUBSIDIARIES Assets Held for Sale An asset is considered to be held for sale when all of the following criteria are met: (i) management commits to a plan to sell the property; (ii) it is unlikely that the disposal plan will be significantly modified or discontinued; (iii) the property is available for immediate sale in its present condition; (iv) actions required to complete the sale of the property have been initiated; (v) sale of the asset is probable and the completed sale is expected to occur within one year; and (vi) the property is actively being marketed for sale at a price that is reasonable given its current market value.
As of June 30, 2026 and 2025, we did not have any assets held for sale.
Impairment of Long-Lived Assets We review the carrying value of our long-lived assets, which includes our right-of-use lease assets, for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

and 204 more.

Gone since FY2025

AND SUBSIDIARIES Raw Materials and other Commodity Price Risk We are exposed to market risk from changes in the cost of raw materials used in our manufacturing processes, principally wood, fabric and foam products.
The cost of foam products, which are petroleum-based, is sensitive to changes in the price of oil.
We are also exposed to risk with respect to transportation costs, including shipping container and fuel prices, for delivering our products.
We have been able to reduce certain manufacturing input costs by identifying lower cost alternatives in raw materials as well as implemented operational efficiencies, including reduced headcount, which have helped to minimize the impact of inflation.
Commercial Real Estate Market Risk We have exposure to market risk related to conditions in the commercial real estate market.
At June 30, 2025, there were 142 Company-operated retail design centers, of which 48 are owned and 94 leased.
At June 30, 2025, the unamortized balance of such right-of-use assets totaled $109.2 million.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Consolidated Financial Statements and Supplementary Data Page Management’s Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets at June 30, 2025 and 2024 Consolidated Statements of Comprehensive Income for the years ended June 30, 2025, 2024 and 2023 Consolidated Statements of Cash Flows for the years ended June 30, 2025, 2024 and 2023 Consolidated Statements of Shareholders’ Equity for the years ended June 30, 2025, 2024 and 2023 Notes to Consolidated Financial Statements ETHAN ALLEN INTERIORS INC.
In addition, our consolidated financial statements as of June 30, 2025 and 2024 and for each of the years in the three-year period ended June 30, 2025, and the related notes, have been audited by CohnReznick LLP, an independent registered public accounting firm, whose report also appears in this Annual Report on Form 10-K.
Our internal control over financial reporting includes those policies and procedures that: ● pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; ● provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and ● provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our consolidated financial statements.
Based on this evaluation, management has concluded that our internal control over financial reporting was effective as of June 30, 2025 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external reporting purposes in accordance with GAAP.
The effectiveness of our internal control over financial reporting as of June 30, 2025 has been audited by CohnReznick LLP, an independent registered public accounting firm, as stated in their report, which is included herein.
Opinion on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of Ethan Allen Interiors Inc. and subsidiaries (the “Company”) as of June 30, 2025 and 2024, the related consolidated statements of comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended June 30, 2025, and the related notes (collectively referred to as the “consolidated financial statements”).
We have also audited the Company’s internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended June 30, 2025, in conformity with accounting principles generally accepted in the United States of America.
Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
As discussed in Note 3 to the consolidated financial statements, as of June 30, 2025, Property, plant and equipment, net , was $210.2 million and the Operating lease right-of-use assets were $109.2 million.
During the year ended June 30, 2025, the Company did not recognize any impairment charges.
How our Audit Addressed the Critical Audit Matter Our principal audit procedures related to this critical audit matter included the following: ● We evaluated the design and tested the operating effectiveness of internal controls pertaining to the retail design center impairment analysis, inclusive of those controls pertaining to the identification of triggering events. ● We evaluated management’s significant accounting policies related to the consideration of impairment for long-lived assets for reasonableness. ● We tested the reasonableness of the underlying data used to determine if triggering events were identified. ● We evaluated the reasonableness of management’s conclusion that no impairment charges were appropriate during the year.
We have served as the Company’s auditor since 2022. /s/ CohnReznick LLP New York, New York August 22, 2025 ETHAN ALLEN INTERIORS INC.
AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except par value) June 30, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 76,178 $ 69,710 Investments, short-term 59,955 91,319 Accounts receivable, net 6,066 6,766 Inventories, net 140,893 142,040 Prepaid expenses and other current assets 26,841 22,848 Total current assets 309,933 332,683 Property, plant and equipment, net 210,238 215,258 Goodwill 25,388 25,388 Intangible assets 19,740 19,740 Operating lease right-of-use assets 109,173 114,242 Deferred income taxes Investments, long-term 60,030 34,772 Other assets 2,228 2,010 TOTAL ASSETS $ 737,099 $ 744,917 LIABILITIES Current liabilities: Accounts payable and accrued expenses $ 22,137 $ 27,400 Customer deposits 75,068 73,471 Accrued compensation and benefits 23,625 20,702 Current operating lease liabilities 27,403 27,387 Other current liabilities 4,618 4,736 Total current liabilities 152,851 153,696 Operating lease liabilities, long-term 96,263 100,897 Deferred income taxes 2,054 3,035 Other long-term liabilities 3,662 4,373 TOTAL LIABILITIES $ 254,830 $ 262,001 Commitments and contingencies (See Note 21) SHAREHOLDERS' EQUITY Preferred stock, $ 0.01 par value; 1,055 shares authorized; none issued $ - $ - Common stock, $ 0.01 par value; 150,000 shares authorized; 49,640 and 49,550 shares issued; 25,432 and 25,412 shares outstanding at June 30, 2025 and 2024, respectively Additional paid-in-capital 389,672 388,104 Treasury stock, at cost: 24,208 and 24,138 shares at June 30, 2025 and 2024, respectively ( 687,003 ) ( 684,796 ) Retained earnings 784,878 783,366 Accumulated other comprehensive loss ( 5,688 ) ( 4,189 ) Total Ethan Allen Interiors Inc. shareholders' equity 482,355 482,980 Noncontrolling interests ( 86 ) ( 64 ) TOTAL SHAREHOLDERS' EQUITY 482,269 482,916 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 737,099 $ 744,917 See accompanying notes to consolidated financial statements.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands, except share data) Fiscal Year Ended June 30, 2025 2024 2023 Net sales $ 614,649 $ 646,221 $ 791,382 Cost of sales 242,528 253,159 311,012 Gross profit 372,121 393,062 480,370 Selling, general and administrative expenses 309,790 315,148 346,894 Restructuring and other charges, net of gains ( 77 ) ( 3,720 ) Operating income 61,988 77,991 137,196 Interest and other income, net 7,275 7,700 4,042 Interest and other financing costs Income before income taxes 69,020 85,446 141,025 Income tax expense 17,424 21,630 35,218 Net income $ 51,596 $ 63,816 $ 105,807 Per share data Basic earnings per common share: Net income per basic share $ 2.02 $ 2.50 $ 4.15 Basic weighted average common shares 25,554 25,525 25,473 Diluted earnings per common share: Net income per diluted share $ 2.01 $ 2.49 $ 4.13 Diluted weighted average common shares 25,634 25,644 25,604 Comprehensive income Net income $ 51,596 $ 63,816 $ 105,807 Other comprehensive (loss) income, net of tax Foreign currency translation adjustments ( 678 ) ( 1,866 ) 3,178 Other ( 843 ) Other comprehensive (loss) income, net of tax ( 1,521 ) ( 1,446 ) 3,681 Comprehensive income $ 50,075 $ 62,370 $ 109,488 See accompanying notes to consolidated financial statements.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Fiscal Year Ended June 30, 2025 2024 2023 Cash Flows from Operating Activities Net income $ 51,596 $ 63,816 $ 105,807 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 15,523 15,956 15,614 Stock-based compensation expense 1,527 1,450 1,288 Non-cash operating lease cost 32,748 31,959 30,235 Deferred income taxes ( 525 ) ( 205 ) ( 1,182 ) Restructuring and other charges, net of gains ( 77 ) ( 3,720 ) Payments on restructuring and other charges, net of proceeds ( 604 ) ( 1,019 ) ( 1,045 ) Loss on disposal of property, plant and equipment Other ( 115 ) Changes in operating assets and liabilities: Accounts receivable, net 4,811 5,442 Inventories, net 1,116 6,194 27,309 Prepaid expenses and other current assets ( 5,999 ) ( 869 ) 5,570 Customer deposits 1,597 ( 4,294 ) ( 43,315 ) Accounts payable and accrued expenses ( 5,204 ) ( 1,732 ) ( 8,787 ) Accrued compensation and benefits 2,917 ( 2,833 ) Operating lease liabilities ( 34,450 ) ( 32,981 ) ( 31,013 ) Other assets and liabilities ( 87 ) ( 2,985 ) Net cash provided by operating activities 61,696 80,195 100,664 Cash Flows from Investing Activities Capital expenditures ( 11,268 ) ( 9,606 ) ( 13,885 ) Proceeds from sales of property, plant and equipment - 9,914 Proceeds from sales of investments 94,136 124,477 137,397 Purchases of investments ( 85,225 ) ( 134,911 ) ( 234,949 ) Net cash used in investing activities ( 2,357 ) ( 19,991 ) ( 101,523 ) Cash Flows from Financing Activities Payment of cash dividends ( 50,084 ) ( 50,269 ) ( 46,357 ) Proceeds from employee stock plans Taxes paid related to net share settlement of stock-based awards ( 2,207 ) ( 2,150 ) ( 812 ) Payments on financing leases and other ( 351 ) ( 421 ) ( 497 ) Net cash used in financing activities ( 52,599 ) ( 52,331 ) ( 47,591 ) Effect of exchange rate changes on cash and cash equivalents ( 1 ) ( 279 ) Net increase (decrease) in cash, cash equivalents and restricted cash 6,739 7,594 ( 48,249 ) Cash, cash equivalents and restricted cash at beginning of year 70,216 62,622 110,871 Cash, cash equivalents and restricted cash at end of year $ 76,955 $ 70,216 $ 62,622 Supplemental Disclosure of Cash Flow Information Cash paid during the year for income taxes, net of refunds $ 18,551 $ 19,947 $ 41,933 Cash paid during the year for interest $ $ $ See accompanying notes to consolidated financial statements.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In thousands) Accumulated Additional Other Non- Common Stock Paid-in Treasury Stock Comprehensive Retained Controlling Total Shares Par Value Capital Shares Amount Loss Earnings Interests Equity Balance at June 30, 2022 49,360 $ $ 384,782 24,037 $ ( 681,834 ) $ ( 6,462 ) $ 710,369 $ ( 26 ) $ 407,323 Net income - - - - - - 105,807 - 105,807 Common stock issued on share-based awards - - - - - - Stock-based compensation expense - - 1,288 - - - - - 1,288 Restricted and performance stock unit vesting - ( 812 ) - - - ( 811 ) Cash dividends declared - - - - - - ( 46,357 ) - ( 46,357 ) Other comprehensive (loss) income - - - - - 3,677 - 3,681 Balance at June 30, 2023 49,426 $ $ 386,146 24,070 $ ( 682,646 ) $ ( 2,785 ) $ 769,819 $ ( 22 ) $ 471,006 Net income - - - - - - 63,816 - 63,816 Common stock issued on share-based awards - - - - - - Stock-based compensation expense - - 1,450 - - - - - 1,450 Restricted and performance stock unit vesting ( 1 ) ( 2,150 ) - - - ( 2,150 ) Cash dividends declared - - - - - - ( 50,269 ) - ( 50,269 ) Other comprehensive (loss) income - - - - - ( 1,404 ) - ( 42 ) ( 1,446 ) Balance at June 30, 2024 49,550 $ $ 388,104 24,138 $ ( 684,796 ) $ ( 4,189 ) $ 783,366 $ ( 64 ) $ 482,916 Net income - - - - - - 51,596 - 51,596 Common stock issued on share-based awards - - - - - - Stock-based compensation expense - - 1,527 - - - - - 1,527 Restricted and performance stock unit vesting ( 2 ) ( 2,207 ) - - - ( 2,208 ) Cash dividends declared - - - - - - ( 50,084 ) - ( 50,084 ) Other comprehensive (loss) income - - - - - ( 1,499 ) - ( 22 ) ( 1,521 ) Balance at June 30, 2025 49,640 $ $ 389,672 24,208 $ ( 687,003 ) $ ( 5,688 ) $ 784,878 $ ( 86 ) $ 482,269 See accompanying notes to consolidated financial statements.
At June 30, 2025, there were 142 Company-operated retail design centers with 137 located in the U.S. and five in Canada.
We also have 45 independently owned and operated Ethan Allen design centers located in the U.S., Asia, the Middle East and Europe.
At June 30, 2025, we own and operate eleven manufacturing facilities, including four manufacturing plants, one sawmill, one rough mill and one kiln dry lumberyard in the U.S., three manufacturing plants in Mexico and one manufacturing plant in Honduras.
(3) Summary of Significant Accounting Policies Our significant accounting policies are summarized below.
AND SUBSIDIARIES Restricted Cash We present restricted cash as a component of total cash and cash equivalents on our consolidated statements of cash flows and within Other assets on our consolidated balance sheets.
At June 30, 2025 we held $ 0.8 million of restricted cash related to the Ethan Allen insurance captive compared to $ 0.5 million in the prior year.
Investments Our investments at June 30, 2025 consist solely of U.S.
There were no material gross unrealized gains or losses on the investments at June 30, 2025 or 2024 .
At June 30, 2025 and 2024, the allowance for credit losses was immaterial.
At June 30, 2025 and 2024, our inventory reserves were $ 1.5 million and $ 1.8 million, respectively.
Assets Held for Sale An asset is considered to be held for sale when all of the following criteria are met: (i) management commits to a plan to sell the property; (ii) it is unlikely that the disposal plan will be significantly modified or discontinued; (iii) the property is available for immediate sale in its present condition; (iv) actions required to complete the sale of the property have been initiated; (v) sale of the asset is probable and the completed sale is expected to occur within one year; and (vi) the property is actively being marketed for sale at a price that is reasonable given its current market value.
As of June 30, 2025 and 2024, we did not have any assets held for sale.
AND SUBSIDIARIES Impairment of Long-Lived Assets We review the carrying value of our long-lived assets, which includes our right-of-use lease assets, for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
We performed our annual goodwill impairment test during the fourth quarter of fiscal 2025 using a qualitative analysis and concluded it was more likely than not the fair value of our wholesale reporting unit was greater than its respective carrying value and no impairment charge was required.
Indefinite-Lived Intangible Assets (trade name).
We performed our annual indefinite-lived intangible asset impairment test during the fourth quarter of fiscal 2025 utilizing a qualitative analysis and concluded it was more likely than not the fair value of our trade name was greater than its carrying value and no impairment charge was required.

and 188 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2025 ↗, FY2026 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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