April 28, 2026 - 10-Q: Quarterly report [Sections 13 or 15(d)]

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 March 28, 2026

☐ 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 001-39609

Hillman Solutions Corp.

(Exact name of registrant as specified in its charter)

Delaware

85-2096734

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1280 Kemper Meadow Drive

45240

Cincinnati

Ohio

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (513) 851-4900

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.0001 per share	HLMN	The Nasdaq Stock Market LLC

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 and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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. (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐ (Do not check if a smaller reporting company)

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 ☒

On April 23, 2026, 196,209,606 shares of common stock, par value $0.0001 per share, were outstanding.



TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Comprehensive Income (Loss)	2
	Condensed Consolidated Statements of Cash Flows	3
	Condensed Consolidated Statements of Stockholders' Equity	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	32
Item 4.	Controls and Procedures	32
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	34
Item 3.	Defaults upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	36
SIGNATURES		37

Table of Contents

HILLMAN SOLUTIONS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(dollars in thousands)


	As of March 28, 2026		As of December 27, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	27,731	$	27,276
Accounts receivable, net of allowances of $1,876 ($1,944 - 2025)	138,767		114,926
Inventories, net	483,323		485,938
Other current assets	20,066		18,342
Total current assets	669,887		646,482
Property and equipment, net of accumulated depreciation of $446,048 ($428,726 - 2025)	224,575		231,482
Goodwill	830,372		830,747
Other intangibles, net of accumulated amortization of $607,790 ($592,748 - 2025)	530,707		546,171
Operating lease right of use assets	77,222		75,152

Other assets	28,216		26,160
Total assets	$	2,360,979	$	2,356,194
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	139,832	$	141,662
Current portion of debt and finance lease liabilities	14,898		14,830
Current portion of operating lease liabilities	19,432		17,947
Accrued expenses:
Salaries and wages	10,419		35,790
Pricing allowances	5,514		8,098
Income and other taxes	8,429		9,466

Other accrued expenses	28,559		29,766
Total current liabilities	227,083		257,559
Long-term debt	714,055		668,337
Deferred tax liabilities	132,061		131,870
Operating lease liabilities	63,934		63,459
Other non-current liabilities	7,868		6,462
Total liabilities	$	1,145,001	$	1,127,687
Commitments and contingencies (Note 5)
Stockholders' equity:
Common stock: $0.0001 par value, 500,000,000 shares authorized, 198,945,695 and 196,355,206 issued and outstanding in 2026, respectively, and 197,857,100 and 196,487,532 shares issued and outstanding in 2025, respectively	20		20
Treasury stock, at cost, 2,590,489 shares in 2026 and 1,369,568 shares in 2025	(22,539)		(12,423)
Additional paid-in capital	1,460,059		1,457,422
Accumulated deficit	(183,378)		(178,646)
Accumulated other comprehensive loss	(38,184)		(37,866)
Total stockholders' equity	1,215,978		1,228,507
Total liabilities and stockholders' equity	$	2,360,979	$	2,356,194

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.


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HILLMAN SOLUTIONS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

(dollars in thousands, except for per share amounts)


	Thirteen Weeks Ended March 28, 2026		Thirteen Weeks Ended March 29, 2025
Net sales	$	370,073	$	359,343
Cost of sales (exclusive of depreciation and amortization shown separately below)	201,496		190,740
Selling, warehouse, general and administrative expenses	124,571		119,052
Depreciation	21,999		19,395
Amortization	15,276		15,415

Other income, net	(483)		(274)
Income from operations	7,214		15,015

Interest expense, net	13,005		14,460


Refinancing costs	—		906

Loss before income taxes	(5,791)		(351)
Income tax benefit	(1,059)		(34)
Net loss	$	(4,732)	$	(317)

Basic and diluted net loss per share	$	(0.02)	$	(0.00)
Weighted average basic and diluted shares outstanding	196,626		197,284




Net loss from above	$	(4,732)	$	(317)
Other comprehensive loss:
Foreign currency translation adjustments	(1,315)		682
Hedging activity, net of tax	997		(1,990)
Total other comprehensive loss	(318)		(1,308)
Comprehensive loss	$	(5,050)	$	(1,625)

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.


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HILLMAN SOLUTIONS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(dollars in thousands)


	Thirteen Weeks Ended March 28, 2026		Thirteen Weeks Ended March 29, 2025
Cash flows from operating activities:
Net loss	$	(4,732)	$	(317)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	37,275		34,810
Deferred income taxes	218		(974)
Deferred financing and original issue discount amortization	1,253		1,257
Stock-based compensation expense	4,007		3,278

Loss on debt restructuring	—		906

Cash paid to third parties in connection with debt restructuring	—		(906)
Loss (gain) on disposal of property and equipment	14		(139)
Change in fair value of contingent consideration	(509)		(326)

Changes in operating items:
Accounts receivable, net	(24,128)		(24,617)
Inventories, net	2,909		7,319
Other assets	(3,950)		(2,152)
Accounts payable	(1,548)		11,340
Accrued salaries and wages	(25,415)		(20,769)
Other accrued expenses	(4,927)		(9,365)


Net cash used for operating activities	(19,533)		(655)
Cash flows from investing activities:

Capital expenditures	(14,815)		(20,658)

Other investing activities	(55)		(67)
Net cash used for investing activities	(14,870)		(20,725)
Cash flows from financing activities:
Repayments of senior term loans	(2,128)		(2,128)






Borrowings on revolving credit loans	72,162		62,000
Repayments of revolving credit loans	(25,000)		(44,000)
Principal payments under finance lease obligations	(1,484)		(1,270)
Proceeds from exercise of stock options	1,483		306
Repurchases of common stock	(10,116)		—
Payments of contingent consideration	(77)		(75)
Other financing activities	(114)		(440)

Net cash provided by financing activities	34,726		14,393
Effect of exchange rate changes on cash	132		(1,214)
Net increase (decrease) in cash and cash equivalents	455		(8,201)
Cash and cash equivalents at beginning of period	27,276		44,510
Cash and cash equivalents at end of period	$	27,731	$	36,309
Supplemental disclosure of cash flow information:
Interest paid	$	9,989	$	13,893
Income taxes paid	1,037		2,016
Capital expenditures in accounts payable	657		1,614

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.


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HILLMAN SOLUTIONS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

(dollars in thousands)


	Common Stock Amount		Treasury Stock Amount		Additional Paid-in-Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
Thirteen weeks ended March 28, 2026
Balance at December 27, 2025	$	20	$	(12,423)	$	1,457,422	$	(178,646)	$	(37,866)	$	1,228,507
Net loss	—		—		—		(4,732)		—		(4,732)
Stock option activity, stock awards and employee stock purchase plan	—		—		2,637		—		—		2,637
Repurchases of common stock	—		(10,116)		—		—		—		(10,116)
Hedging activity, net of tax	—		—		—		—		997		997
Change in cumulative foreign currency translation adjustment	—		—		—		—		(1,315)		(1,315)
Balance at March 28, 2026	$	20	$	(22,539)	$	1,460,059	$	(183,378)	$	(38,184)	$	1,215,978












Thirteen weeks ended March 29, 2025
Balance at December 28, 2024	$	20	$	—	$	1,442,958	$	(218,951)	$	(41,656)	$	1,182,371
Net loss	—		—		—		(317)		—		(317)
Stock option activity, stock awards and employee stock purchase plan	—		—		1,307		—		—		1,307
Hedging activity, net of tax	—		—		—		—		(1,990)		(1,990)
Change in cumulative foreign currency translation adjustment	—		—		—		—		682		682
Balance at March 29, 2025	$	20	$	—	$	1,444,265	$	(219,268)	$	(42,964)	$	1,182,053

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.


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1. BASIS OF PRESENTATION

The accompanying condensed financial statements include the consolidated accounts of Hillman Solutions Corp. and its wholly-owned subsidiaries (collectively “Hillman” or the “Company”). The accompanying unaudited financial statements include the condensed consolidated accounts of the Company for the thirteen weeks ended March 28, 2026. Unless the context requires otherwise, references to "Hillman," "we," "us," "our," or "our Company" refer to Hillman Solutions Corp. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

The accompanying unaudited Condensed Consolidated Financial Statements present information in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. Accordingly, they do not include all information or footnotes required by U.S. generally accepted accounting principles for complete financial statements. Operating results for the thirteen weeks ended March 28, 2026 do not necessarily indicate the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements for the year ended December 27, 2025 and notes thereto included in the Form 10-K filed on February 17, 2026 with the Securities and Exchange Commission (“SEC”).

“Hillman Solutions Corp.," "HMAN Group Holdings Inc.," and "The Hillman Companies, Inc." are holding companies with no other operations, cash flows, material assets or liabilities other than the equity interests in "The Hillman Group, Inc.,", which is the borrower under the credit facility.

Nature of Operations:

The Company is comprised of three separate operating business segments: (1) Hardware and Protective Solutions, (2) Robotics and Digital Solutions, and (3) Canada.

Hillman provides and, on a limited basis, produces products such as fasteners and related hardware items; rod, shapes, and sheets; keys, key duplication systems, and accessories; personal protective equipment such as gloves, work gear, paint and cleaning wipes and cloths; rope and chain; builder's hardware; and identification items, such as tags and letters, numbers, and signs, to retail outlets, primarily hardware stores, home centers and mass merchants, pet supply stores, grocery stores, and drug stores. The Canada segment also produces fasteners, stampings, fittings, and processes threaded parts for automotive suppliers, industrial Original Equipment Manufacturers (“OEMs”), and industrial distributors.

Reclassifications:

Due to the segment realignment that occurred in the second quarter of 2025, certain amounts in the prior year Condensed Consolidated Financial Statements and in the Notes to the Condensed Consolidated Financial Statements were reclassified to conform to the current year’s presentation. This had no impact on the prior periods’ condensed consolidated balance sheets, condensed consolidated statements of comprehensive income (loss), condensed consolidated statements of cash flows, or condensed consolidated statements of stockholders' equity.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies should be read in conjunction with the significant accounting policies included in the Form 10-K filed on February 17, 2026 with the SEC.

Use of Estimates in the Preparation of Financial Statements:

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses for the reporting periods. Actual results may differ from these estimates.


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Share Repurchase Program:

On July 31, 2025, the Board of Directors of the Company authorized a share repurchase program of up to $100,000 (the “Repurchase Program”) of the Company's common stock. The Company accounts for the repurchase of its common stock under the cost method. Under this method, the repurchased shares are recorded at their cost as a reduction of stockholders' equity. Upon repurchase, the treasury stock account is debited for the cost paid, and the cash account is credited. When treasury shares are reissued, any excess of the reissuance price over the repurchase cost is credited to additional paid-in capital. If the reissuance price is less than the repurchase cost, the difference is first debited to additional paid-in capital (from previous treasury stock transactions) and then to retained earnings. The Company does not recognize gains or losses from treasury stock transactions in its income statement. See Note 10 - Equity and Accumulated Other Comprehensive Loss for more information.

Revenue Recognition:

Revenue is recognized when control of goods or services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue.

The Company offers a variety of sales incentives to its customers primarily in the form of discounts and rebates. Discounts are recognized in the Condensed Consolidated Financial Statements at the date of the related sale. Rebates are based on the revenue to date and the contractual rebate percentage to be paid. A portion of the cost of the rebate is allocated to each underlying sales transaction. Discounts and rebates are included in the determination of net sales.

The Company also establishes reserves for customer returns and allowances. The reserve is established based on historical rates of returns and allowances. The reserve is adjusted quarterly based on actual experience. Returns and allowances are included in the determination of net sales.

The following tables display our disaggregated revenue by product category. Certain amounts in the prior year presentation between segments were reclassified to conform to the current year’s presentation. See Note 15 - Segment Reporting for more information.


Thirteen weeks ended March 28, 2026
	Hardware and Protective Solutions		Robotics and Digital Solutions		Canada		Total Revenue
Fastening and Hardware	$	224,916	$	—	$	28,827	$	253,743
Personal Protective	56,392		—		1,330		57,722
Keys and Key Fobs	—		46,930		2,538		49,468
Engraving and Resharp	—		9,132		8		9,140
Total Revenue	$	281,308	$	56,062	$	32,703	$	370,073

Thirteen weeks ended March 29, 2025
	Hardware and Protective Solutions		Robotics and Digital Solutions		Canada		Total Revenue
Fastening and Hardware	$	209,548	$	—	$	25,050	$	234,598
Personal Protective	68,461		—		1,231		69,692
Keys and Key Fobs	—		42,979		2,136		45,115
Engraving and Resharp	—		9,931		7		9,938
Total Revenue	$	278,009	$	52,910	$	28,424	$	359,343

The following tables disaggregate our revenue by geographic location. Certain amounts in the prior year presentation between segments were reclassified to conform to the current year’s presentation. See Note 15 - Segment Reporting for more information.


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Thirteen weeks ended March 28, 2026
	Hardware and Protective Solutions		Robotics and Digital Solutions		Canada		Total Revenue
United States	$	277,223	$	56,062	$	—	$	333,285
Canada	—		—		32,703		32,703
Mexico	4,085		—		—		4,085
Consolidated	$	281,308	$	56,062	$	32,703	$	370,073

Thirteen weeks ended March 29, 2025
	Hardware and Protective Solutions		Robotics and Digital Solutions		Canada		Total Revenue
United States	$	274,065	$	52,910	$	—	$	326,975
Canada	—		—		28,424		28,424
Mexico	3,944		—		—		3,944
Consolidated	$	278,009	$	52,910	$	28,424	$	359,343

The Company's revenue by geography is allocated based on the location of its sales operations.

Hardware and Protective Solutions' revenues consist primarily of the delivery of fasteners, anchors, specialty fastening products, rope and chain, and personal protective equipment such as gloves, work gear, paint and cleaning wipes and cloths, as well as accessories, and in-store merchandising services for the related product category.

Robotics and Digital Solutions revenues consist primarily of sales of keys, automotive keys, and identification tags through self-service key duplication and engraving kiosks. It also includes our associate-assisted key duplication systems.

Canada revenues consist primarily of the delivery to Canadian customers of fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, personal protective equipment, and identification items as well as in-store merchandising services for the related product category.

The Company’s performance obligations under its arrangements with customers are providing products, in-store merchandising services, and access to key duplicating and engraving equipment. Generally, the price of the merchandising services and the access to the key duplicating and engraving equipment is included in the price of the related products. Control of products is transferred at the point in time when the customer accepts the goods, which occurs upon delivery of the products. Judgment is required in determining the time at which to recognize revenue for the in-store services and the access to key duplicating and engraving equipment. Revenue is recognized for in-store service and access to key duplicating and engraving equipment as the related products are delivered, which approximates a time-based recognition pattern. Therefore, the entire amount of consideration related to the sale of products, in-store merchandising services, and access to key duplicating and engraving equipment is recognized upon the delivery of the products.

The costs to obtain a contract are insignificant and generally contract terms do not extend beyond one year. Therefore, these costs are expensed as incurred. Freight and shipping costs and the cost of our in-store merchandising service teams are recognized in selling, warehouse, general, and administrative expense when control over products is transferred to the customer.

The Company used the practical expedient regarding the existence of a significant financing component as payments are due in less than one year after delivery of the products.

3. RECENT ACCOUNTING PRONOUNCEMENTS

On January 6, 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses, as an amendment to ASU 2024-03. This ASU mandates that public business entities provide detailed disclosures in the notes to their financial statements, breaking down certain expense categories presented on the income statement into specified natural expense components. This enhanced disclosure aims to provide investors with more detailed information about the types of expenses included in commonly presented expense captions, such as cost of sales, selling, general, and administrative expenses (SG&A),


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and research and development. The amendments introduced by ASU 2025-01 are effective for public business entities for fiscal years beginning after December 15, 2026 and for interim periods beginning after December 15, 2027 with early adoption permitted. The Company is currently evaluating the impact provided by the new standard.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05), which provides a practical expedient to measure credit losses on current accounts receivable and current contract assets under Accounting Standards Codification 606, Revenue from Contracts with Customers. The practical expedient assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. For public business entities, ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption of ASU 2025-05 is permitted. The Company is currently evaluating the impact provided by the new standard.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which is intended to modernize the accounting for the costs of internal-use software. The amendments remove all references to prescriptive and sequential development stages and, instead, require an entity to start capitalizing software costs when management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the function intended. The amendments are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period with the amendments to be applied using a prospective, modified or retrospective transition approach. The Company is currently evaluating the impact provided by the new standard.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements which is intended to clarify existing requirements without fundamentally altering interim reporting or changing existing disclosure requirements. Key aspects include clarifying that ASC 270 applies to entities providing a full set of GAAP interim financial statements and notes, centralizing a list of all required interim disclosures from other ASC topics within Topic 270, and codifying a principle requiring disclosure of material events and changes since the most recent annual report. The amendments in this update are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact provided by the new standard.

4. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill amounts by reportable segment are summarized as follows:


	Goodwill at		Acquisitions		Dispositions		Other (1)			Goodwill at
	December 27, 2025								March 28, 2026
Hardware and Protective Solutions	$	592,527	$	—	$	—	$	29		$	592,556
Robotics and Digital Solutions	210,356		—		—		—			210,356
Canada	27,864		—		—		(404)			27,460
Total	$	830,747	$	—	$	—	$	(375)		$	830,372

(1)The "Other" change to goodwill relates to adjustments resulting from fluctuations in foreign currency exchange rates for the Canada, Hardware Solutions, and Protective Solutions reporting units.

Other intangibles, net, as of March 28, 2026 and December 27, 2025 consist of the following:


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	Estimated Useful Life (Years)			March 28, 2026		December 27, 2025
Customer relationships	9	-	20	$	956,495	$	956,880
Trademarks - indefinite	Indefinite			85,191		85,274
Trademarks - other	2	-	15	29,549		29,549
Technology and patents	5	-	12	67,262		67,216
Intangible assets, gross				1,138,497		1,138,919
Less: Accumulated amortization				607,790		592,748
Other intangibles, net				$	530,707	$	546,171

The amortization expense for intangible assets for the thirteen weeks ended March 28, 2026 was $15,276, and the thirteen weeks ended March 29, 2025 was $15,415, respectively.

The Company tests goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter. Impairment is also tested when events or changes in circumstances indicate that the carrying values of the assets may be greater than their fair values. During the thirteen weeks ended March 28, 2026, the Company did not identify any triggering events that would result in an impairment analysis outside of the annual assessment.

5. COMMITMENTS AND CONTINGENCIES

Insurance Coverage

The Company self-insures its general liability including product liability, automotive and workers' compensation losses up to $500 per occurrence. Catastrophic coverage has been purchased from third party insurers for occurrences up to $60,000. The two risk areas involving the most significant accounting estimates are workers' compensation and automotive liability. Actuarial valuations performed by the Company's outside risk insurance expert were used by the Company's management to form the basis for workers' compensation and automotive liability loss reserves. The actuary contemplated the Company's specific loss history, actual claims reported, and industry trends among statistical and other factors to estimate the range of reserves required. Risk insurance reserves are comprised of specific reserves for individual claims and additional amounts expected for development of these claims, as well as for incurred but not yet reported claims. The Company believes that the liability of approximately $3,419 recorded for such risks is adequate as of March 28, 2026.

As of March 28, 2026, the Company has provided certain vendors and insurers letters of credit aggregating to $3,250 related to our product purchases and insurance coverage for product liability, workers’ compensation, and general liability.

The Company self-insures group health claims up to an annual stop loss limit of $300 per participant. Historical group insurance loss experience forms the basis for the recognition of group health insurance reserves. Provisions for losses expected under these programs are recorded based on an analysis of historical insurance claim data and certain actuarial assumptions. The Company believes that the liability of approximately $3,472 recorded for such risks is adequate as of March 28, 2026.

Import Duties

The Company imports large quantities of fastener products which are subject to customs requirements and to tariffs and quotas set by governments through mutual agreements and bilateral actions. The Company could be subject to the assessment of additional duties and interest if it or its suppliers fail to comply with customs regulations or similar laws. The U.S. Department of Commerce (the "Department”) has received requests from petitioners to conduct administrative reviews of compliance with anti-dumping duty and countervailing duty laws for certain nail products sourced from Asian countries. The Company sourced products under review from vendors in China and Taiwan during the periods selected for review. The Company accrues for the duty expense once it is determined to be probable and the amount can be reasonably estimated.

Litigation


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of International Trade against the United States of America seeking a full refund of all IEEPA tariffs that Hillman has paid to the United States. The financial impact of these events is uncertain, as it is unclear to what extent duties will be refunded by CBP, how effective the refund process will be, the timeline that refunds could be issued, or if we can fully collect on any refunds owed. We are evaluating the impact of these developments on our business and financial statements. No adjustments have been recorded in the accompanying unaudited condensed consolidated financial statements as we cannot reasonably estimate the financial impact; however, it is reasonably possible that it could be material.

We are involved in litigation arising in the normal course of business. In management’s opinion, any such litigation is not expected to have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.

6. RELATED PARTY TRANSACTIONS

Sales to related parties, which are included in net sales, consist of the sale of excess inventory to Ollie's Bargain Outlet Holdings, Inc. ("Ollie's"). John Swygert, Executive Chairman of Ollie's since 2025, and before that President and Chief Executive Officer of Ollie's, is a member of our Board of Directors. Sales to related parties were $203 in the thirteen weeks ended March 28, 2026 and immaterial in the thirteen weeks ended March 29, 2025.

In late 2024, the Company signed a contract with Ollie's to place Minute Key and Quick-Tag machines in select Ollie's locations. The Company paid royalty shares to Ollie's as a result of this agreement. The payments to related parties were immaterial in the thirteen weeks ended March 28, 2026 and in the thirteen weeks ended March 29, 2025.

7. INCOME TAXES

ASC 740 requires companies to apply their estimated annual effective tax rate on a year-to-date basis in each interim period. These rates are derived, in part, from expected annual pre-tax income or loss. In the thirteen weeks ended March 28, 2026, the Company applied an estimated annual effective tax rate based on expected annual pre-tax income to the interim period pre-tax loss to calculate the income tax benefit.

For the thirteen weeks ended March 28, 2026, the effective income tax rate was 18.3%. The Company recorded an income tax benefit for the thirteen weeks ended March 28, 2026 of $1,059. The difference between the expected statutory tax rate and the effective tax rate for the thirteen weeks ended March 28, 2026 was the result of certain non-deductible expenses and state and foreign income taxes.

For the thirteen weeks ended March 29, 2025, the effective income tax rate was 9.7%. The Company recorded an income tax benefit for the thirteen weeks ended March 29, 2025 of $34. The effective tax rate for the thirteen weeks ended March 29, 2025 was the result of certain non-deductible expenses and state and foreign income taxes.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The legislation included several provisions that impact the timing and magnitude of certain tax deductions, including, among others, making 100% bonus depreciation permanent, allowing for the expensing of domestic research costs, and modifying the business interest expense limitation calculation. These changes were incorporated into our income tax provision for the thirteen week period ended March 28, 2026. Although we do not expect the OBBBA to have a material impact on our effective tax rate, we do expect favorable changes to the timing of cash tax payments in the current fiscal year and future periods.

8. LONG-TERM DEBT

The following table summarizes the Company’s debt:


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	March 28, 2026		December 27, 2025
Revolving loans	$	83,162	$	36,000
Senior Term Loan, due 2028	634,832		636,960
Finance lease & other obligations	19,851		20,090
	737,845		693,050
Unamortized discount on Senior Term Loan	(1,876)		(2,087)
Current portion of long-term debt and finance leases	(14,898)		(14,830)
Deferred financing fees	(7,016)		(7,796)
Total long-term debt, net	$	714,055	$	668,337

As of March 28, 2026, the Asset-Backed Loan ("ABL") Revolver had an outstanding balance of $83,162, and had outstanding letters of credit of $3,250. Certain portions of the ABL Revolver are separately available to the Company’s United States and Canadian subsidiaries, each of which currently maintains outstanding borrowings of $81,000 and $2,162, respectively. The Company has $254,691 of available borrowings under the revolving credit facility as a source of liquidity as of March 28, 2026 based on the customary ABL borrowing base and availability provisions.

On January 14, 2025, the Company entered into a Repricing Amendment (2025 Repricing Amendment) on its existing Senior Term Loan due July 14, 2028. The 2025 Repricing Amendment (i) reduces the interest rate per annum applicable to the Term Loan outstanding from SOFR plus a margin varying from 2.25% to 2.50% to SOFR plus a margin of 2.00%, as well as a 1.00% margin for ABR Loans and (ii) implements a 1% prepayment premium for the existing Term Loan to apply to Repricing Transactions that occur within six months after the effective date of the 2025 Repricing Amendment. In connection with the closing of the 2025 Repricing Amendment, the Company expensed $906 of new fees in 2025.

9. LEASES

Lessee

The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both 1) the right to obtain substantially all of the economic benefits from the use of the asset and 2) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2042. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees, nor material restrictive covenants.

The components of operating and finance lease costs for the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025 were as follows:


	Thirteen Weeks Ended March 28, 2026		Thirteen Weeks Ended March 29, 2025
Operating lease costs	$	6,292	$	5,648
Short term lease costs	1,239		713
Variable lease costs	143		602
Finance lease costs:
Amortization of right of use assets	1,501		1,271
Interest on lease liabilities	281		223

Rent expense is recognized on a straight-line basis over the expected lease term. Rent expense totaled $7,674, and $6,963 in the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025, respectively. Rent expense includes operating lease costs as well as expenses for non-lease components such as common area


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maintenance, real estate taxes, real estate insurance, variable costs related to our leased vehicles, and short-term rental expenses.

The implicit rate is not determinable in most of the Company’s leases, as such management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 28, 2026 and December 27, 2025:


	March 28, 2026				December 27, 2025
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted average remaining lease term	4.67		3.90		4.84		4.00
Weighted average discount rate	6.15	%	5.80	%	6.18	%	5.82	%

Supplemental balance sheet information related to the Company's finance leases was as follows as of March 28, 2026 and December 27, 2025:


	March 28, 2026		December 27, 2025
Finance lease assets, net, included in property plant and equipment	$	18,618	$	18,778

Current portion of long-term debt	5,655		5,599
Long-term debt, less current portion	13,425		13,619
Total principal payable on finance leases	$	19,080	$	19,218

Supplemental cash flow information related to the Company's operating and finance leases was as follows for the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025:


	Thirteen Weeks Ended March 28, 2026		Thirteen Weeks Ended March 29, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	5,851	$	5,468
Operating cash outflow from finance leases	281		207
Financing cash outflow from finance leases	1,484		1,270

Maturities of our lease liabilities for all operating and finance leases are as follows as of March 28, 2026:


	Operating Leases		Finance Leases
Remaining 2026	$	17,627	$	5,012
2027	22,412		5,571
2028	19,945		4,536
2029	15,289		3,807
2030	9,829		2,180
Thereafter	10,765		100
Total future minimum rental commitments	95,867		21,206
Less - amounts representing interest	(12,502)		(2,126)
Present value of lease liabilities	$	83,365	$	19,080

In July 2025, the Company entered into one additional operating lease for a new property located in Forest Park, Ohio for the purpose of consolidating office, warehouse, and distribution in the Cincinnati area. Occupancy has not yet commenced and the estimated future minimum rental commitments for the Forest Park lease are approximately $4.5 million per year beginning in late summer 2027 and increasing 3.25% per year thereafter for 15 years.


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Lessor

The Company has certain arrangements for key duplication equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material.

10. EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS

Common Stock

Hillman Solutions Corp. has one class of common stock.

Share Repurchases

On July 31, 2025, the Board of Directors of the Company authorized a share repurchase program of up to $100,000 (the “Repurchase Program”) of the Company's common stock. The Repurchase Program permits shares of common stock to be repurchased from time to time at management's discretion, through a variety of methods, including a 10b5-1 trading plan, open market purchases, privately negotiated transactions or transactions otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

The timing and number of shares of common stock repurchased will be opportunistic depending on a variety of factors, including price, general business and market conditions, alternative investment opportunities and funding considerations. The Repurchase Program does not obligate the Company to repurchase any specific number of shares of common stock and may be suspended or discontinued at any time.

The following table presents information about our repurchases of common stock, all of which were completed through open market purchases (amounts in thousands):


	Thirteen weeks ended March 28, 2026
Total number of shares repurchased	(1,221)
Total cost of shares repurchased (1)	$	(10,116)

(1) The Company’s share repurchases are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. Excise taxes incurred on share repurchases represent direct costs of the repurchase and are recorded as a part of the cost basis of the shares within treasury stock.

The cost of shares repurchased may differ from the repurchases of common stock amounts in the consolidated statements of cash flows due to unsettled share repurchases at the end of a period and excise taxes incurred on share repurchases.

Stock Rollforward

The following table presents a reconciliation of the number of shares of our common stock outstanding (amounts in thousands).


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	Common Stock (Shares)	Treasury Stock (Shares)	Total Net Shares Outstanding
Thirteen weeks ended March 28, 2026
Balance at December 27, 2025	197,857	(1,370)	196,487
Stock option activity, stock awards and employee stock purchase plan	1,089	—	1,089
Repurchases of common stock	—	(1,221)	(1,221)
Balance at March 28, 2026	198,946	(2,591)	196,355







Thirteen weeks ended March 29, 2025
Balance at December 28, 2024	196,706	—	196,706
Stock option activity, stock awards and employee stock purchase plan	675	—	675
Repurchases of common stock	—	—	—
Balance at March 29, 2025	197,381	—	197,381

Accumulated Other Comprehensive Income (Loss)

The following is detail of the changes in the Company's accumulated other comprehensive income (loss) from December 28, 2024 to March 28, 2026, including the effect of significant reclassifications out of accumulated other comprehensive income (loss) (net of tax):


	Accumulated Other Comprehensive Income (Loss)
Balance at December 28, 2024	$	(41,656)
Other comprehensive income before reclassifications	5,842
Amounts reclassified from other comprehensive loss	(2,052)
Net current period other comprehensive income (1)	3,790
Balance at December 27, 2025	(37,866)
Other comprehensive loss before reclassifications	(314)
Amounts reclassified from other comprehensive loss	(4)
Net current period other comprehensive loss (2)	(318)
Balance at March 28, 2026	(38,184)

1.During the year ended December 27, 2025, the Company deferred a loss of $1,956, reclassified a gain of $2,052 including tax expense of $1,002 into other comprehensive loss due to hedging activities. The amounts reclassified out of other comprehensive loss were recorded as interest expense. See Note 13 - Derivatives and Hedging for additional information on the interest rate swaps.

2.During the thirteen weeks ended March 28, 2026, the Company deferred a loss of $1,333, reclassified a gain of $4 and a tax benefit of $332 into other comprehensive loss due to hedging activities. The amounts reclassified out of other comprehensive loss were recorded as interest expense. See Note 13 - Derivatives and Hedging for additional information on the interest rate swaps.

11. STOCK-BASED COMPENSATION

2014 Equity Incentive Plan

The 2014 Equity Incentive Plan may grant options, stock appreciation rights, restricted stock, and other stock-based awards for up to an aggregate of 14,523,510 shares of its common stock.

The 2014 Equity Incentive Plan did not have any stock compensation expense recognized in the thirteen weeks ended March 28, 2026. Stock compensation expense of $73 was recognized in the thirteen weeks ended March 29, 2025.


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Stock Options

The fair value of stock options is determined at the grant date using the Black-Scholes option pricing model. The time-based stock option awards generally vest evenly over four years from the grant date and performance-based options vest based on Company stock price hurdles.

Restricted Stock Units

The Restricted Stock Units ("RSUs") granted to employees for service generally vest after three years, subject to continued employment.

2021 Equity Incentive Plan

Effective July 14, 2021, the Company established the 2021 Equity Incentive Plan. On June 3, 2025, the 2021 Equity Incentive Plan was amended to increase the share reserve by 1,800,000 shares of common stock (the 2021 Equity Incentive Plan as amended is referred to as the “2021 Plan”). Under the 2021 Plan, as amended, the maximum number of shares of common stock that may be delivered in satisfaction of awards under the 2021 Plan as of the Effective Date is (i) 10,950,814 shares, plus (ii) the number of shares of stock underlying awards under the 2014 Equity Incentive Plan that on or after the Effective Date expire or become unexercisable, or are forfeited, cancelled or otherwise terminated, in each case, without delivery of shares or cash therefore, and would have become available again for grant under the Prior Plan in accordance with its terms (in the case of this subclause (ii), not to exceed 14,523,510 shares of common stock in the aggregate).

The 2021 Equity Incentive Plan had stock compensation expense of $3,865 and $3,077 was recognized in the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss) for the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025, respectively.

Stock Options

Restricted Stock Units

Beginning in the first quarter of 2025, the RSUs granted to employees for service generally vest evenly over three years from the grant date, subject to continued employment. Prior to 2025, the RSUs granted to employees for service generally vest after three years, subject to continued employment. The RSUs granted to non-employee directors generally vest in full on the sooner of the first anniversary of the grant date or the Company's next annual meeting of stockholders.

Performance Stock Units

Beginning in the first quarter of 2025, the Company determined to grant Performance Stock Units ("PSUs"), using return on invested capital as the performance metric, instead of granting stock options. The PSUs granted to employees for service generally vest after three years, subject to continued employment.

2021 Employee Stock Purchase Plan

Our Employee Stock Purchase Plan ("ESPP") became effective on July 14, 2021, in which 1,140,754 shares of common stock were available for issuance under the ESPP. On June 3, 2025, the ESPP plan was amended to increase the share reserve by 1,000,000 shares of common stock, for a total of 2,140,754 shares available for issuance. Under the ESPP, eligible employees are granted options to purchase shares of common stock at 85% of the fair market value at the time of exercise. Options to purchase shares are granted four times a year on the first payroll date in January, April, July, and October of each year and ending approximately three months later on the last business day in March, June, September or December. No employee may be granted an option under the Plan if, immediately after the option is granted, the employee would own stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Company.

Compensation expense associated with ESPP purchase rights is recognized on a straight-line basis over the vesting period. As of the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025, there was approximately $142 and $128 of compensation expense related to the ESPP recognized, respectively.


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12. EARNINGS PER SHARE

Basic earnings per share is computed based on the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share include the dilutive effect of stock options and restricted stock awards and units. The following is a reconciliation of the basic and diluted earnings per share ("EPS") computations for both the numerator and denominator (in thousands, except per share data):


	Thirteen Weeks Ended March 28, 2026
	Earnings (Numerator)		Shares (Denominator)	Per Share Amount
Net loss	$	(4,732)	196,626	(0.02)
Dilutive effect of stock options and awards	—		—	—

Net loss per diluted common share	$	(4,732)	196,626	(0.02)


	Thirteen Weeks Ended March 29, 2025
	Earnings (Numerator)		Shares (Denominator)	Per Share Amount
Net loss	$	(317)	197,284	(0.00)
Dilutive effect of stock options and awards	—		—	—
Net loss per diluted common share	$	(317)	197,284	(0.00)

Stock options and awards outstanding totaling 3,678 were excluded from the computation for the thirteen weeks ended March 28, 2026, and 3,114 for the thirteen weeks ended March 29, 2025, as they would have had an antidilutive effect under the treasury stock method.

13. DERIVATIVES AND HEDGING

FASB ASC 815, Derivatives and Hedging ("ASC 815"), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company's objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments.

The Company uses derivative financial instruments to manage its exposures to (1) interest rate fluctuations on its floating rate senior term loan and (2) fluctuations in foreign currency exchange rates. The Company measures those instruments at fair value and recognizes changes in the fair value of derivatives in earnings in the period of change, unless the derivative qualifies as an effective hedge that offsets certain exposures.

The Company does not enter into derivative transactions for speculative purposes and, therefore, holds no derivative instruments for trading purposes.

Interest Rate Swap Agreements

On December 19, 2023, the Company entered into an interest swap agreement ("2024 Swap 1") for a notional amount of $144,000. The forward start date of the 2024 Swap 1 was July 21, 2024 and the termination date is January 31, 2027. The 2024 Swap 1 has a determined pay fixed interest rate of 3.8%. In accordance with ASC 815, the Company determined the 2024 Swap 1 constituted an effective cash flow hedge and therefore changes in fair value are recorded within other comprehensive income (loss) within the Company's Statement of Comprehensive Income (Loss) and the deferred gains or losses are reclassified out of other comprehensive income (loss) into interest expense in the same period during which the hedged transactions affect earnings.


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On December 19, 2023, the Company entered into an interest swap agreement ("2024 Swap 2") for a notional amount of $216,000. The forward start date of the 2024 Swap 2 was July 21, 2024 and the termination date is January 31, 2027. The 2024 Swap 2 has a determined pay fixed interest rate of 3.62%. In accordance with ASC 815, the Company determined the 2024 Swap 2 constituted an effective cash flow hedge and therefore changes in fair value are recorded within other comprehensive income (loss) within the Company's Statement of Comprehensive Income and the deferred gains or losses are reclassified out of other comprehensive income (loss) into interest expense in the same period during which the hedged transactions affect earnings.

The following table summarizes the Company's derivative financial instruments:


	Asset Derivatives					Liability Derivatives
		As of March 28, 2026		As of December 27, 2025			As of March 28, 2026		As of December 27, 2025
	Balance Sheet Location	Fair Value		Fair Value		Balance Sheet Location	Fair Value		Fair Value
Derivatives designated as hedging instruments:


2024 Swap 1	Other current/other non-current assets	—		—		Other non-current liabilities	(101)		(670)
2024 Swap 2	Other current/other non-current assets	171		—		Other non-current liabilities	—		(589)
Total hedging instruments:		$	171	$	—		$	(101)	$	(1,259)

Foreign Currency Forward Contracts

As of March 28, 2026 and December 27, 2025 the Company entered into foreign currency forward contracts. The purpose of the Company's foreign currency forward contracts is to manage the Company's exposure to fluctuations in the exchange rate of the Canadian dollar.

The total notional amount of contracts outstanding was C$2,594 and C$1,551 as of March 28, 2026 and December 27, 2025, respectively. The total fair value of the foreign currency forward contracts was $2,615 and $1,504 as of March 28, 2026 and December 27, 2025, respectively, and was reported on the accompanying Condensed Consolidated Balance Sheets in other accrued expenses. A loss in other income of $24 and gain in other income of $160 was recorded in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the change in fair value during the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025, respectively.

The Company's foreign currency forward contracts did not qualify for hedge accounting treatment because they did not meet the provisions specified in ASC 815. Accordingly, the gain or loss on these derivatives was recognized in other (income) expense in the Condensed Consolidated Statements of Comprehensive Income (Loss).

The Company does not enter into derivative transactions for speculative purposes and, therefore, holds no derivative instruments for trading purposes.

Additional information with respect to the fair value of derivative instruments is included in Note 14 - Fair Value Measurements.

14. FAIR VALUE MEASUREMENTS

The Company uses the accounting guidance that applies to all assets and liabilities that are being measured and reported on a fair value basis. The guidance defines 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. The guidance also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:


Level 1:						Quoted market prices in active markets for identical assets or liabilities.
Level 2:						Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3:						Unobservable inputs reflecting the reporting entity’s own assumptions.


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The accounting guidance establishes a hierarchy which requires an entity to maximize the use of quoted market prices and minimize the use of unobservable inputs. An asset or liability's level is based on the lowest level of input that is significant to the fair value measurement.

The following tables set forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the period, by level, within the fair value hierarchy:


	As of March 28, 2026
	Level 1		Level 2		Level 3		Total
Trading securities	$	773	$	—	$	—	$	773
Interest rate swaps	—		70		—		70
Foreign exchange forward contracts	—		2,615		—		2,615
Contingent consideration payable	—		—		3,772		3,772

	As of December 27, 2025
	Level 1		Level 2		Level 3		Total
Trading securities	$	847	$	—	$	—	$	847
Interest rate swaps	—		(1,259)		—		(1,259)
Foreign exchange forward contracts	—		1,504		—		1,504
Contingent consideration payable	—		—		4,358		4,358

Trading securities are valued using quoted prices on an active exchange. Trading securities represent assets held in a Rabbi Trust to fund deferred compensation liabilities and are included as Other assets on the accompanying Condensed Consolidated Balance Sheets.

The Company utilizes interest rate swap contracts to manage our targeted mix of fixed and floating rate debt, and these contracts are valued using observable benchmark rates at commonly quoted intervals for the full term of the swap contracts. As of March 28, 2026 and December 27, 2025, the Company's interest rate swaps were recorded on the accompanying Condensed Consolidated Balance Sheets in accordance with ASC 815.

The Company utilizes foreign exchange forward contracts to manage our exposure to currency fluctuations in the Canadian dollar versus the U.S. dollar. The forward contracts were valued using observable benchmark rates at commonly quoted intervals during the term of the forward contract. As of March 28, 2026 and December 27, 2025, the foreign exchange forward contracts were included in other accrued expenses on the accompanying Condensed Consolidated Balance Sheets.

The contingent consideration represents future potential earn-out payments related to the Resharp acquisition in fiscal 2019 and the Instafob acquisition in the first quarter of 2020. The estimated fair value of the contingent earn-outs was determined using a Monte Carlo analysis examining the frequency and mean value of the resulting earn-out payments. The resulting value captures the risk associated with the form of the payout structure. The risk neutral method is applied, resulting in a value that captures the risk associated with the form of the payout structure and the projection risk. The carrying amount of the liability may fluctuate significantly and actual amounts paid may be materially different from the estimated value of the liability. The current and non-current portions of these obligations are reported separately on the Condensed Consolidated Balance Sheets as other accrued expense and other non-current liabilities, respectively. Subsequent changes in the fair value of the contingent consideration liabilities, as determined by using a simulation model of the Monte Carlo analysis that includes updated projections applicable to the liability, are recorded within other income (expense) in the Condensed Consolidated Statements of Comprehensive Income (Loss).

The table below provides a summary of the changes in fair value of the Company’s contingent consideration (Level 3) for Resharp and Instafob as of March 28, 2026.


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	Resharp				Instafob
	Other accrued expenses		Other non-current liabilities		Other accrued expenses		Other non-current liabilities		Total
Fair value as of December 27, 2025	$	229	$	4,071	$	25	$	33	$	4,358
Fair value of cash consideration paid	(74)		—		(3)		—		(77)
Change in fair value of contingent consideration	70		(596)		(3)		20		(509)
Fair value as of March 28, 2026	$	225	$	3,475	$	19	$	53	$	3,772

Cash, accounts receivable, short-term borrowings and accounts payable are reflected in the Condensed Consolidated Balance Sheets at book value, which approximates fair value, due to the short-term nature of these instruments. The carrying amounts of the long-term debt under the revolving credit facility and term loan approximate the fair value at March 28, 2026 and December 27, 2025 as the interest rate is variable and approximates current market rates of debt based on observable market transactions with similar terms and comparable credit risk.

Additional information with respect to the derivative instruments is included in Note 13 - Derivatives and Hedging.

15. SEGMENT REPORTING

The Company’s segment reporting structure uses the Company’s management reporting structure as the foundation for how the Company manages its business. The Company periodically evaluates its segment reporting structure in accordance with ASC 350-20-55 and has concluded that it has three reportable segments as of March 28, 2026.

The segments are as follows:

•Hardware and Protective Solutions

•Robotics and Digital Solutions

•Canada

In the second quarter of 2025, the Company realigned its Hardware and Protective Solutions segment to include the sales of accessories, which are now managed by the Hardware and Protective Solutions leadership team. Previously, accessories were included under the Robotics and Digital Solutions segment leadership team. Please see Note 1 - Basis of Presentation for more information.

For a reconciliation of our segment sales by product category and geographic area, please see Note 2 - Summary of Significant Accounting Policies.

The tables below present net sales, significant segment expenses, and segment adjusted EBITDA for the reportable segments for the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025. See Note 2 - Summary of Significant Accounting Policies for a reconciliation of total reportable segments' revenues to consolidated revenues. Certain amounts in the prior year Condensed Consolidated Financial Statements and in the Notes to the Condensed Consolidated Financial Statements were reclassified to conform to the current year’s presentation. This had no impact on the prior period's condensed consolidated balance sheets, condensed consolidated statements of comprehensive income (loss), condensed consolidated statements of cash flows, or condensed consolidated statements of stockholders' equity.


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Hardware and Protective Solutions	Thirteen weeks ended March 28, 2026		Thirteen weeks ended March 29, 2025
Net sales	$	281,308	$	278,009

Significant segment expenses
Cost of sales (exclusive of depreciation and amortization)	167,293		159,223
Adjusted selling expense(1)	30,297		28,900
Adjusted warehouse expense (2)	34,586		34,845
Adjusted general and administrative expense(3)	17,373		16,944
Other segment items	(137)		(162)
Segment adjusted EBITDA	$	31,896	$	38,259

1.Adjusted selling expense excludes expense related to corporate restructuring activities.

2.Adjusted warehouse expense excludes restructuring expense associated with our distribution center relocations and corporate restructuring activities.

3.Adjusted general and administrative expense excludes stock-based compensation, acquisition and integration costs, expense associated with corporate restructuring, and legal charges related to settlements.


Robotics and Digital Solutions	Thirteen weeks ended March 28, 2026		Thirteen weeks ended March 29, 2025
Net sales	$	56,062	$	52,910

Significant segment expenses
Cost of sales (exclusive of depreciation and amortization)	14,170		14,897
Adjusted selling expense(1)	19,392		16,528
Adjusted warehouse expense (2)	2,479		2,437
Adjusted general and administrative expense(3)	3,806		4,450
Other segment items(4)	15		61
Segment adjusted EBITDA	$	16,200	$	14,537

1.Adjusted selling expense excludes expense related to corporate restructuring activities.

2.Adjusted warehouse expense excludes restructuring expense associated with our distribution center relocations and corporate restructuring activities.

3.Adjusted general and administrative expense excludes stock compensation expense, acquisition and integration expense, consulting expense and legal charges related to settlements, see Note 5 - Commitments and Contingencies.

4.Other excludes the gain or loss on the revaluation of our contingent consideration liability, see Note 14 - Fair Value Measurements.


20 \| March 28, 2026 Form 10-Q

Table of Contents


Canada	Thirteen weeks ended March 28, 2026		Thirteen weeks ended March 29, 2025
Net sales	$	32,703	$	28,424

Significant segment expenses
Cost of sales (exclusive of depreciation and amortization)	20,033		16,620
Adjusted selling expense(1)	3,655		3,198
Adjusted warehouse expense (2)	5,163		4,966
Adjusted general and administrative expense(3)	1,710		1,759
Other segment items	148		151
Segment adjusted EBITDA	$	1,994	$	1,730

1.Adjusted selling expense excludes restructuring expense.

2.Adjusted warehouse expense excludes restructuring expense associated with our distribution center relocations and corporate restructuring activities.

3.Adjusted general and administrative expense excludes stock-based compensation and expense associated with corporate restructuring activities.

The following table reconciles segment adjusted EBITDA by segment to the Company’s consolidated income (loss) before income taxes. Certain amounts in the prior year presentation between segments were reclassified to conform to the current year’s presentation.


	Thirteen weeks ended March 28, 2026		Thirteen weeks ended March 29, 2025
Hardware and Protective Solutions	$	31,896	$	38,259
Robotics and Digital Solutions	16,200		14,537
Canada	1,994		1,730
Total adjusted EBITDA	50,090		54,526
Interest expense, net	13,005		14,460
Depreciation	21,999		19,395
Amortization	15,276		15,415
Stock compensation expense	4,007		3,278
Restructuring and other costs	2,011		1,691

Transaction and integration expense	92		58
Change in fair value of contingent consideration	(509)		(326)

Refinancing costs	—		906

Total adjusting items	55,881		54,877
Loss before income taxes	$	(5,791)	$	(351)

16. SUBSEQUENT EVENTS

On April 3, 2026, the Company completed the acquisition of Campbell Chain and Fittings (“Campbell”) from Apex Tool Group. Campbell is a widely recognized provider of industrial chain and chain-related products including welded and weldless chain, forged fittings, overhead lifting, and lifting clamp products. Campbell has business operations in North America and its financial results will reside in the Company's Hardware and Protective Solutions reportable segment.


21 \| March 28, 2026 Form 10-Q

Table of Contents

On April 10, 2026, the Company completed the acquisition of Delaney Hardware ("Delaney"). Delaney Hardware is a U.S.-based supplier of door hardware and related products used in residential, multifamily, and commercial construction. Their core offerings include door hardware for residential, multi‑family & light commercial, builder’s‑grade hardware, sliding door & specialty hardware, bath & trim hardware and builder & project services (keying, project quotes). Delaney's financial results will reside in the Company's Hardware and Protective Solutions reportable segment.


22 \| March 28, 2026 Form 10-Q

ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion provides information which the Company’s management believes is relevant to an assessment and understanding of the Company’s operations and financial condition. This discussion should be read in conjunction with the Condensed Consolidated Financial Statements and accompanying notes in addition to the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 27, 2025.

FORWARD-LOOKING STATEMENTS

This quarterly report contains certain forward-looking statements, including, but not limited to, certain disclosures related to acquisitions, refinancing, capital expenditures, resolution of pending litigation, and realization of deferred tax assets, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements.

All forward-looking statements are made in good faith by the Company and are intended to qualify for the safe harbor from liability established by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. You should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," “target”, “goal”, "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) unfavorable economic conditions that may affect our and our customers’, suppliers’ and other business partners’ operations, financial condition and cash flows including spending on home renovation or construction projects, inflation, recessions, instability in the financial markets or credit markets; (2) increased supply chain costs, including tariffs, raw materials, sourcing, transportation and energy; (3) the highly competitive nature of the markets that we serve; (4) the ability to continue to innovate with new products and services; (5) seasonality; (6) large customer concentration; (7) the ability to recruit and retain qualified employees; (8) the outcome of any legal proceedings that may be instituted against the Company; (9) adverse changes in currency exchange rates; or (10) regulatory changes and potential legislation that could adversely impact financial results. The foregoing list of factors is not exclusive, and readers should also refer to those risks that are included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Annual Report on Form 10-K filed on February 17, 2026. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward-looking statements.

Except as required by applicable law, the Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this communication to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

GENERAL

Hillman Solutions Corp. and its wholly-owned subsidiaries (collectively, “Hillman” or “Company”) are one of the largest providers of hardware-related products and related merchandising services to retail markets in North America. Our principal business is operated through our wholly-owned subsidiary, Hillman Solutions Corp. and its wholly-owned subsidiaries (collectively, “Hillman Group”), which had net sales of $370.1 million in the thirteen weeks ended March 28, 2026. Hillman sells its products to hardware stores, home improvement centers, mass merchants, pet supply stores, and other retail outlets principally in the United States, Canada, and Mexico. Product lines include thousands of small hardware parts such as fasteners and related items; threaded rod and metal shapes; keys and accessories; builder's hardware; personal protective equipment, such as gloves and eyewear; rope and chain; and identification items, such as tags and letters, numbers, and signs. We support product sales


23 \| March 28, 2026 Form 10-Q

with services that include design and installation of merchandising systems, maintenance of appropriate in-store inventory levels, and break-fix for our robotics kiosks.

RECENT DEVELOPMENTS

On February 20, 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). On April 15, 2026, Hillman filed a lawsuit in the U.S. Court of International Trade against the United States of America seeking a full refund of all IEEPA tariffs that Hillman has paid to the United States. The financial impact of these events is uncertain, as it is unclear to what extent duties will be refunded by CBP, how effective the refund process will be, the timeline that refunds could be issued, or if we can fully collect on any refunds owed. We are evaluating the impact of these developments on our business and financial statements. No adjustments have been recorded in the accompanying unaudited condensed consolidated financial statements as we cannot reasonably estimate the financial impact; however, it is reasonably possible that it could be material.

IMPACT OF GLOBAL ECONOMIC CONDITIONS ON OUR RESULTS OF OPERATIONS

Our business is impacted by general economic conditions in the North American markets, particularly the U.S. and Canadian retail markets, including hardware stores, home improvement centers, mass merchants, and other retailers. Changes in current economic conditions, including inflationary pressures in the cost of inventory, transportation, and employee compensation, foreign currency volatility, housing market trends, tariffs, and concerns of a potential recession, have impacted consumer discretionary income levels and spending. Consumer discretionary income levels and spending impact the purchasing trends of our products by our retail customers. Any adverse trends in discretionary income and consumer spending could have a material adverse effect on our business or operating results.

We are exposed to the risk of unfavorable changes in foreign currency exchange rates for the U.S. dollar versus local currency of our suppliers, particularly those located in China and Taiwan, because we purchase a majority of our products for resale from multiple vendors located in these countries. The purchase price of these products is routinely negotiated in U.S. dollar amounts rather than the local currency of the vendors and our suppliers' profit margins decrease when the U.S. dollar declines in value relative to the local currency. This puts pressure on our suppliers to increase prices to us. The U.S. dollar declined in value relative to the CNY by approximately 1.4% in the thirteen weeks ended March 28, 2026, declined by 4.0% in 2025, and increased by 2.8% in 2024. The U.S. dollar increased in value relative to the Taiwan dollar by approximately 1.7% in the thirteen weeks ended March 28, 2026, declined by 4.2% in 2025, and increased by 7.1% in 2024.

We are also exposed to risk of unfavorable changes in the Canadian dollar exchange rate versus the U.S. dollar. Our sales in Canada are denominated in Canadian dollars, while a majority of the products are sourced in U.S. dollars. A weakening of the Canadian dollar versus the U.S. dollar results in lower sales in terms of U.S. dollars while the cost of sales remains unchanged. We have a practice of hedging some of our Canadian subsidiary's purchases denominated in U.S. dollars. The U.S. dollar increased in value relative to the Canadian dollar by approximately 1.5% in the thirteen weeks ended March 28, 2026, declined by 5.2% in 2025, and increased by 9.0% in 2024.

In addition, the negotiated purchase price of our products may be dependent upon market fluctuations in the cost of raw materials (i.e. steel, zinc, and nickel) used by our vendors in their manufacturing processes. The final purchase cost of our products may also be dependent upon inflation or deflation in the local economies of vendors that could impact the cost of labor and materials used in the manufacturing of our products. We identify the directional impact of changes in our product cost, but the quantification of each of these variable impacts cannot be measured as to the individual impact on our product cost with a sufficient level of precision. We may take pricing action, when warranted, in an attempt to offset a portion of product cost increases. The ability of our operating divisions to implement or maintain price increases and seek price concessions, as appropriate, is dependent on competitive market conditions.

We import products, which are subject to customs requirements and to tariffs and quotas set by governments, through mutual agreements and bilateral actions. The historical U.S. tariffs on steel and aluminum and other imported goods have increased our product costs and required us to increase prices on the affected products. Current uncertainties about increases in tariffs of imported products from countries may have an adverse effect


24 \| March 28, 2026 Form 10-Q

on our results. (see Recent Developments - Tariff Environment of Item 2 - Management’s Discussion and Analysis above and Risk Factors of Part II - Other Information for additional information).

Thirteen weeks ended March 28, 2026 vs the Thirteen weeks ended March 29, 2025

FINANCIAL SUMMARY AND OTHER KEY METRICS

•Net sales for the thirteen weeks ended March 28, 2026 were $370.1 million compared to net sales of $359.3 million for the thirteen weeks ended March 29, 2025, an increase of approximately $10.7 million or 3.0%.

•Net loss for the thirteen weeks ended March 28, 2026 was $(4.7) million, or $(0.02) per diluted share, compared to a net loss of $(0.3) million, or $(0.00) per diluted share for the thirteen weeks ended March 29, 2025.

•Adjusted EBITDA(1) totaled $50.1 million versus $54.5 million in the thirteen weeks ended March 28, 2026 and in the thirteen weeks ended March 29, 2025, respectively.

RESULTS OF OPERATIONS

The following analysis of results of operations includes a brief discussion of the factors that affected our operating results and a comparative analysis of the thirteen weeks ended March 28, 2026 and the thirteen weeks ended March 29, 2025.


	Thirteen weeks ended March 28, 2026				Thirteen weeks ended March 29, 2025
(dollars in thousands)	Amount		% of Net Sales		Amount		% of Net Sales
Net sales	$	370,073	100.0	%	$	359,343	100.0	%
Cost of sales (exclusive of depreciation and amortization shown separately below)	201,496		54.4		190,740		53.1
Selling, warehouse, general and administrative expenses	124,571		33.7		119,052		33.1
Depreciation	21,999		5.9		19,395		5.4
Amortization	15,276		4.1		15,415		4.3
Other income, net	(483)		(0.1)		(274)		(0.1)
Income from operations	7,214		1.9		15,015		4.2

Interest expense, net	13,005		3.5		14,460		4.0

Refinancing costs	—		—		906		0.3
Loss before income taxes	(5,791)		(1.6)		(351)		(0.1)
Income tax benefit	(1,059)		(0.3)		(34)		—
Net loss	$	(4,732)	(1.3)	%	$	(317)	(0.1)	%

Adjusted EBITDA(1)	$	50,090	13.5	%	$	54,526	15.2	%

(1)Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from net loss to Adjusted EBITDA.


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Net Sales by Segment



	Thirteen weeks ended March 28, 2026		% of Net Sales		Thirteen weeks ended March 29, 2025		% of Net Sales		$ Change		% Change
Hardware and Protective Solutions	$	281,308	76.0	%	$	278,009	77.4	%	$	3,299	1.2	%
Robotics and Digital Solutions	56,062		15.1		52,910		14.7		3,152		6.0
Canada	32,703		8.8		28,424		7.9		4,279		15.1
Consolidated	$	370,073			$	359,343			$	10,730	3.0	%

We evaluate our net sales growth by measuring changes from new business wins (e.g. new customers, new product lines, or categories at existing customers), mergers and acquisitions, and core performance of the existing business. We define core performance as the impact of the following factors on our existing base of business: market volume growth, change in customer footprint, product category management, price increases and/or decreases, and the impact of foreign currency exchange. During the quarter, our business was impacted by macroeconomic influences like economic uncertainty and concerns over housing affordability resulting from the combined pressure of high home prices and elevated interest rates, both of which impact existing home sales and repair and remodel spending on the home. During the first quarter of 2026, net sales increased by $10.7 million or 3.0%.

Our Hardware and Protective Solutions segment increased by $3.3 million, or 1.2%. Primarily driving the increase was 2.9% in new business wins, partially offset by a 1.7% decline in core performance. Our core performance was by impacted low double digit volume declines partially offset by a low double digit increase from pricing increases.

Our Robotics and Digital Solutions segment increased by $3.2 million, or 6.0%. Primarily driving the increase was 9.0% in new business wins offset by a 3.0% decrease in core performance. Core performance within RDS was negatively impacted by low double digit volume declines partially offset by the high single digit impact of price increases.

Lastly, our Canada segment increased by $4.3 million, or 15.1%. Primarily driving the increase was 15.5% in new business wins, partially offset by a 0.4% decline in core performance. Canada's core performance was negatively impacted by mid-single digit volume declines partially offset by the favorable mid-single digit impact of foreign exchange.

Cost of Sales (excluding depreciation and amortization)

The following table summarizes cost of sales by segment:



	Thirteen weeks ended March 28, 2026		% of Segment Net Sales		Thirteen weeks ended March 29, 2025		% of Segment Net Sales		$ Change		% Change
Hardware and Protective Solutions	$	167,293	59.5	%	$	159,223	57.3	%	$	8,070	5.1	%
Robotics and Digital Solutions	14,170		25.3		14,897		28.2		(727)		(4.9)
Canada	20,033		61.3		16,620		58.5		3,413		20.5
Consolidated	$	201,496	54.4	%	$	190,740	53.1	%	$	10,756	5.6	%

Hardware and Protective Solutions' cost of sales as a percentage of net sales increased primarily due increased tariff costs and change in product costs.

Robotics and Digital Solutions' cost of sales as a percentage of net sales decreased due to price increases and sales mix.

Canada cost of sales as a percentage of net sales increased primarily due to increased product and shipping costs along with customer and product mix.

Selling, Warehouse, and General and Administrative Expenses

The following table summarizes selling, warehouse, and general and administrative expense ("SG&A") by segment:


26 \| March 28, 2026 Form 10-Q



	Thirteen weeks ended March 28, 2026		% of Segment Net Sales		Thirteen weeks ended March 29, 2025		% of Segment Net Sales		$ Change		% Change
Hardware and Protective Solutions	$	87,649	31.2	%	$	85,403	30.7	%	$	2,246	2.6	%
Robotics and Digital Solutions	26,175		46.7		23,668		44.7		2,507		10.6
Canada	10,747		32.9		9,981		35.1		766		7.7
Consolidated	$	124,571	33.7	%	$	119,052	33.1	%	$	5,519	4.6	%

Hardware and Protective Solutions' SG&A increased due to the following:

•Selling expense increased $1.5 million due to increased compensation costs.

•Warehouse expense increased $0.7 million primarily due to costs associated with our Cincinnati, Ohio distribution center consolidation project.

•General and administrative expense (“G&A”) was comparable to prior year.

Robotics and Digital Solutions' SG&A increased due to the following:

•Selling expense increased $2.9 million primarily due to increased variable selling expenses due to the shift from full-service keys to self-service keys, which have a higher variable selling cost.

•G&A expense decreased $0.5 million primarily due to reduced variable compensation.

•Warehouse expense was comparable to prior year.

Canada SG&A increased due to the following:

•Selling expense increased by $0.5 million primarily due increased variable selling expenses.

•Warehouse expense increased by $0.2 million primarily due primarily due to higher sales volumes.

•G&A expense was comparable to prior year.

Other Operating Expenses

Depreciation expense increased $2.6 million due to capital spend on merchandising racks and key duplication kiosks.

Amortization expense in the thirteen weeks ended March 28, 2026 was comparable to prior year quarter.

In the thirteen weeks ended March 28, 2026, other income (expense) consisted primarily of a $0.5 million gain on the revaluation of the contingent consideration associated with the acquisition of Resharp and Instafob (see Note 14 - Fair Value Measurements of the Notes to Condensed Consolidated Financial Statements for additional information) along with $0.2 million in rebate income. This was partially offset by exchange rate losses of $0.2 million.

In the thirteen weeks ended March 29, 2025, other income (expense) consisted primarily of a $0.3 million gain on the revaluation of the contingent consideration associated with the acquisition of Resharp and Instafob.

Income from Operations



	Thirteen weeks ended March 28, 2026		Thirteen weeks ended March 29, 2025		$ Change		% Change
Hardware and Protective Solutions	$	4,011	$	11,470	$	(7,459)	(65.0)	%
Robotics and Digital Solutions	2,655		3,056		(401)		(13.1)
Canada	548		489		59		12.1
Total segment income from operations	$	7,214	$	15,015	$	(7,801)	(52.0)	%

Income from operations in our Hardware and Protective Solutions segment decreased $7.5 million due to the changes in net sales, cost of sales, and SG&A expenses described above and an increase in depreciation expense of $0.6 million due to capital spend on merchandising racks.


27 \| March 28, 2026 Form 10-Q

Income from operations in our Robotics and Digital Solutions segment decreased $0.4 million. The $0.4 million decrease is primarily due to the changes in net sales, cost of sales, and SG&A expenses described above, and an increase in depreciation expense of $1.9 million due to capital spend on key duplication kiosks and machines. Additionally, we saw an increase of $0.2 million in other income driven by the changes in revaluation of the contingent consideration described above.

Canada's income from operations was comparable with the prior year.

Interest expense, net, decreased $1.5 million in the thirteen weeks ended March 28, 2026 primarily due to a reduction in outstanding debt and a reduction in interest rate spreads driven by the debt repricing in the first quarter of 2025 (see Note 9 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information).

Income Taxes

For the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025, the effective income tax rate was 18.3% and 9.7%, respectively. The Company recorded an income tax benefit for the thirteen weeks ended March 28, 2026 of $1.1 million based on a pre-tax loss of $5.8 million, and an income tax benefit for the thirteen weeks ended March 29, 2025 of $0.03 million based on a pre-tax loss of $0.35 million.

In 2026 and 2025, the effective tax rate differed from the U.S. federal statutory tax rate due to state and foreign income taxes and certain non-deductible expenses.

See Note 7 - Income Taxes of the Notes to Condensed Consolidated Financial Statements for additional information.

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA is a non-GAAP financial measure and is the primary basis used to measure the operational strength and performance of our businesses, as well as to assist in the evaluation of underlying trends in our businesses. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of our businesses and from intangible assets recognized in business combinations. It is also unaffected by our capital and tax structures, as our management excludes these results when evaluating our operating performance. Our management uses this financial measure to evaluate our consolidated operating performance and the operating performance of our operating segments as well as to allocate resources and capital to our operating segments. Additionally, we believe that Adjusted EBITDA is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Adjusted EBITDA may not be directly comparable to similar measures used by other companies.

The following table presents a reconciliation of net loss, the most directly comparable financial measure under GAAP, to Adjusted EBITDA for the periods presented:


28 \| March 28, 2026 Form 10-Q


(dollars in thousands)	Thirteen Weeks Ended March 28, 2026		Thirteen Weeks Ended March 29, 2025
Net loss	$	(4,732)	$	(317)
Income tax benefit	(1,059)		(34)
Interest expense, net	13,005		14,460


Depreciation	21,999		19,395
Amortization	15,276		15,415

EBITDA	$	44,489	$	48,919

Stock compensation expense	4,007		3,278
Restructuring and other(1)	2,011		1,691

Transaction and integration expense (2)	92		58
Change in fair value of contingent consideration	(509)		(326)
Refinancing costs (3)	—		906

Adjusted EBITDA	$	50,090	$	54,526

(1)Includes consulting and other costs associated with severance related to our distribution center relocations and corporate restructuring activities.

(2)Transaction and integration expense includes professional fees and other costs related to acquisition activity, including the to the Campbell Chain and Fittings and Delaney Hardware acquisitions in 2026 (see Note 16 - Subsequent Events of the Notes to Condensed Consolidated Financial Statements for additional information).

(3)In the first quarter of 2025, we entered into a Repricing Amendment (2025 Repricing Amendment) on our existing Senior Term Loan due July 14, 2028 (see Note 8 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information).

The following tables presents a reconciliation of segment operating income, the most directly comparable financial measure under GAAP, to segment Adjusted EBITDA for the periods presented.


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Thirteen weeks ended March 28, 2026	Hardware and Protective Solutions		Robotics and Digital Solutions		Canada
Operating income	$	4,011	$	2,655	$	548
Depreciation and amortization	22,491		13,557		1,227
Stock compensation expense	3,511		315		181
Restructuring and other	1,791		182		38

Transaction and integration expense	92		—		—
Change in fair value of contingent consideration	—		(509)		—

Adjusted EBITDA	$	31,896	$	16,200	$	1,994

Thirteen weeks ended March 29, 2025	Hardware and Protective Solutions		Robotics and Digital Solutions		Canada
Operating income	$	11,470	$	3,056	$	489
Depreciation and amortization	22,076		11,553		1,181
Stock compensation expense	2,848		231		199
Restructuring and other	1,809		21		(139)

Transaction and integration expense	56		2		—
Change in fair value of contingent consideration	—		(326)		—

Adjusted EBITDA	$	38,259	$	14,537	$	1,730

LIQUIDITY AND CAPITAL RESOURCES

Our working capital position, which we define as current assets minus current liabilities, of $442.8 million as of March 28, 2026 represents an increase of $53.9 million from the December 27, 2025 level of $388.9 million driven by seasonality of the business and tariff costs. We expect to generate sufficient operating cash flows to meet our short-term liquidity needs, and we expect to maintain access to the capital markets, although there can be no assurance of our ability to do so. However, disruption and volatility in the global capital markets and economic uncertainties driven by increases in tariffs could impact our capital resources and liquidity in the future. We do expect the current tariff environment to increase our costs of products we import, which will increase our working capital position and unfavorably impact our future cash flows (see Recent Developments - Tariff Environment of Item 2 - Management’s Discussion and Analysis and Risk Factors of Part II - Other Information for additional information).

The following table presents the key categories of our condensed consolidated statements of cash flows:


	Thirteen weeks ended March 28, 2026		Thirteen weeks ended March 29, 2025		$ Change
Net cash used for operating activities	$	(19,533)	$	(655)	$	(18,878)
Net cash used for investing activities	(14,870)		(20,725)		5,855
Net cash provided by financing activities	34,726		14,393		20,333
Net increase (decrease) in cash and cash equivalents	455		(8,201)		8,656

Operating Cash Flows:

Net cash used for operating activities for the thirteen weeks ended March 28, 2026 was unfavorably impacted by increases in accounts receivable and timing of supplier payments due to the seasonality of our business.


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Additionally, net cash used for operating activities was unfavorably impacted by a decrease in accrued incentive compensation related to the payout of 2025 incentive compensation.

Net cash used for operating activities for the thirteen weeks ended March 29, 2025 was unfavorably impacted by increases in accounts receivable due to the seasonality of our business in addition to a decrease in accrued incentive compensation related to the payout of 2024 incentive compensation.

Investing Cash Flows:

Capital Expenditures:

Cash of $14.8 million and $20.7 million was used in the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025, respectively, to invest in new key duplicating kiosks and merchandising racks.

Financing Cash Flows:

Term Loan:

The Company used $2.1 million of cash for principal payments on the senior term loan. As of March 28, 2026, we have outstanding borrowings of $634.8 million on the term loan. See Note 8 - Long-term Debt of the Notes to Condensed Consolidated Financial Statements for additional information.

ABL Revolver:

Our revolver draws, net of payments, provided cash of $47.2 million in the thirteen weeks ended March 28, 2026, primarily used to fund capital expenditures.

Our revolver draws, net of payments, provided cash of $18.0 million in the thirteen weeks ended March 29, 2025, to fund capital expenditures.

Treasury Stock:

In the thirteen weeks ended March 28, 2026, the Company repurchased $10.1 million of its common stock, see Note 10 - Equity and Accumulated Other Comprehensive Loss of the Notes to Consolidated Financial Statements for additional information.

Stock Option Exercises:

In the thirteen weeks ended March 28, 2026 and thirteen weeks ended March 29, 2025, the Company received $1.5 million and $0.3 million from the exercise of stock options, respectively.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Significant accounting policies and estimates are summarized in the Notes to the Condensed Consolidated Financial Statements. Some accounting policies require management to exercise significant judgment in selecting the appropriate assumptions for calculating financial estimates. Such judgments are subject to an inherent degree of uncertainty. These judgments are based on our historical experience, known trends in our industry, terms of existing contracts, and other information from outside sources, as appropriate. Management believes that these estimates and assumptions are reasonable based on the facts and circumstances as of March 28, 2026, however, actual results may differ from these estimates under different assumptions and circumstances.

There have been no material changes to our critical accounting policies and estimates which are discussed in the “Critical Accounting Policies and Estimates” section of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Annual Report on Form 10-K for the year ended December 27, 2025, as filed with the Securities and Exchange Commission on February 17, 2026.


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Recent Accounting Pronouncements

See “Note 3 - Recent Accounting Pronouncements” of the Notes to Condensed Consolidated Financial Statements.

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

INTEREST RATE EXPOSURE

We are exposed to the impact of interest rate changes as borrowings under the Senior Facilities bear interest at variable interest rates. It is our policy to enter into interest rate swaps only to the extent considered necessary to meet our objectives.

Based on our exposure to variable rate borrowings at March 28, 2026, after consideration of our SOFR floor rate and interest rate swap agreements, a one percent (1%) change in the weighted average interest rate for a period of one year would change the annual interest expense by approximately $3.6 million.

FOREIGN CURRENCY EXCHANGE

We are exposed to foreign exchange rate changes of the Canadian and Mexican currencies as they impact the $137.1 million tangible and intangible net asset value of our Canadian and Mexican subsidiaries as of March 28, 2026. The foreign subsidiaries' net tangible assets were $85.2 million and the net intangible assets were $51.9 million as of March 28, 2026.

We utilize foreign exchange forward contracts to manage the exposure to currency fluctuations in the Canadian dollar versus the U.S. Dollar. See Note 13 - Derivatives and Hedging of the Condensed Notes to the accompanying Condensed Consolidated Financial Statements.

COMMODITY PRICE RISK

Our transportation costs are exposed to fluctuations in the price of fuel and some of our products contain commodity-priced materials. The Company regularly monitors commodity trends and works to mitigate any material exposure to commodity price risk by having alternative sourcing plans in place, limiting supplier concentrations, passing commodity-related inflation to customers, and continuing to scale its distribution networks.

ITEM 4 - CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

We carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective, as of March 28, 2026, in ensuring that material information required to be disclosed in reports that we file or submit 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 Chief Executive Officer and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.


32 \| March 28, 2026 Form 10-Q

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the thirteen weeks ended March 28, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


33 \| March 28, 2026 Form 10-Q

PART II - OTHER INFORMATION

ITEM 1. – LEGAL PROCEEDINGS

The Information required by this Item is set forth in Note 5 - Commitments and Contingencies, to the accompanying Condensed Consolidated Financial Statements included in this Form 10-Q and is incorporated into this Item by reference.

ITEM 1A – RISK FACTORS

There have been no material changes to the risks from those disclosed in the Form 10-K filed on February 17, 2026 with the Securities and Exchange Commission (“SEC”).

ITEM 2. – UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

ISSUER PURCHASES OF EQUITY SECURITIES

The following table presents the number and average price of shares purchased in each fiscal month of the first quarter of fiscal 2026, all of which were completed through open market purchases (shares in whole numbers, dollars in thousands):


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan(1)(2)
December 28, 2025 - January 24, 2026	91,726	$	8.97	1,461,294	$	86,754
January 25, 2026 - February 21, 2026	92,505	8.99		1,553,799	$	85,922
February 22, 2026 - March 28, 2026	1,036,690	$	8.16	2,590,489	$	77,459
	1,220,921	$	8.29	2,590,489

(1)On July 31, 2025, the Board of Directors of the Company authorized a share repurchase program of up to $100,000. The July 2025 authorization does not have a prescribed expiration date.

(2)Excludes excise taxes incurred on share repurchases.

ITEM 3. – DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. – MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. – OTHER INFORMATION


34 \| March 28, 2026 Form 10-Q

Insider Adoption or Termination of Trading Arrangements

During the fiscal quarter ended March 28, 2026, none of our directors or officers adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408.


35 \| March 28, 2026 Form 10-Q

ITEM 6. – EXHIBITS


a)			Exhibits, including those incorporated by reference.



31.1			Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Exchange Act (filed herewith).
31.2			Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Exchange Act (filed herewith).
32.1			Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.2			Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
101			The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 28, 2026 filed with the Securities and Exchange Commission on April 28, 2026, formatted in eXtensible Business Reporting Language: (i) Condensed Consolidated Balance Sheets as of March 28, 2026 and December 27, 2025, (ii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the thirteen weeks ended March 28, 2026 and the thirteen weeks ended March 29, 2025, (iii) Condensed Consolidated Statements of Cash Flows for the thirteen weeks ended March 28, 2026 and the thirteen weeks ended March 29, 2025, (iv) Condensed Consolidated Statements of Stockholders' Equity for the thirteen weeks ended March 28, 2026 and the thirteen weeks ended March 29, 2025, and (v) Notes to Condensed Consolidated Financial Statements.


36 \| March 28, 2026 Form 10-Q

SIGNATURES

Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HILLMAN SOLUTIONS CORP.



/s/ Robert O. Kraft						/s/ Anne S. McCalla
Robert O. Kraft						Anne S. McCalla
Chief Financial Officer						Controller
(Principal Financial Officer}						(Principal Accounting Officer)

DATE: April 28, 2026


37 \| March 28, 2026 Form 10-Q

Form: 10-Q

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