Interface Reports Fourth Quarter and Full Year 2025 Results

Delivered record 2025 sales and profitability as One Interface strategy accelerates growth

Interface, Inc. (NASDAQ:TILE), the global flooring and sustainability leader, today announced results for the fourth quarter and full fiscal year ended December 28, 2025.

Fourth quarter highlights (all comparisons are year-over-year):

• Net sales totaled $349 million, up 4.3% and 1.6% on a currency-neutral basis.
• GAAP earnings per diluted share of $0.41; Adjusted earnings per diluted share of $0.49.
• Generated $49 million of cash from operations, repaid $128 million of debt and repurchased $13 million of common stock.

Fiscal Year highlights (all comparisons are year-over-year):

• Net sales totaled $1,387 million, up 5.4% and 4.3% on a currency-neutral basis.
• Gross profit margin of 38.7%; Adjusted gross profit margin of 39.0%.
• GAAP earnings per diluted share of $1.96; Adjusted earnings per diluted share of $1.94.

"We delivered record results in 2025 as our team executed well in a dynamic macro environment. Currency-neutral net sales increased 4% year over year, driven by growth across all regions, all product categories, and key market segments. Adjusted gross profit margin expanded to 39%, reflecting favorable pricing and mix, as well as manufacturing efficiencies," commented Laurel Hurd, CEO of Interface.

"Our One Interface strategy continues to fuel growth as we strengthen global capabilities, improve commercial productivity, and simplify and optimize our operations. Performance was particularly strong in Healthcare and Education, with global billings up 21% and 8% respectively for the year, while we continued to gain share in Corporate Office," continued Hurd.

"We are proud of the progress our teams made throughout 2025. While macro conditions remain uncertain, we enter 2026 with confidence as we execute our One Interface strategy. We remain focused on expanding our addressable market through new designs and innovation, while allocating capital in a disciplined manner to drive enhanced shareholder value that reinforces our leadership in design, performance and sustainability," concluded Hurd.

"Our 2025 performance delivered strong earnings growth. Adjusted earnings per diluted share increased 33% year over year, underscoring the benefits of our ongoing operational discipline, consistent execution, and the high quality of our earnings. Strong cash generation further strengthened our balance sheet, enabling us to repay debt, extend remaining debt maturities to 2030, increase our quarterly dividend, and repurchase shares while we continued to invest in the business," added Bruce Hausmann, CFO of Interface.

Outlook

Interface entered fiscal year 2026 with solid orders and a healthy backlog, while remaining mindful of ongoing macro uncertainty and a competitive industry environment. In addition, the Company's fiscal year 2026 includes 53 weeks with an extra week in the first quarter, which is reflected in the guidance below. With that backdrop in mind, the Company anticipates the following:

Webcast and Conference Call Information

Interface will host a conference call on February 24, 2026, at 8:00 a.m. Eastern Time, to discuss its fourth quarter and fiscal year 2025 results. The conference call will be simultaneously broadcast live over the Internet.

Listeners may access the conference call live over the Internet at:

https://events.q4inc.com/attendee/621335748, or through the Company's website at: https://investors.interface.com.

The archived version of the webcast will be available at these sites for one year beginning approximately one hour after the call ends.

Non-GAAP Financial Measures

Interface provides adjusted earnings per share, adjusted net income, adjusted operating income ("AOI"), adjusted gross profit, adjusted gross profit margin, adjusted SG&A expenses, currency- neutral sales and currency-neutral sales growth, net debt, and adjusted EBITDA as additional information regarding its operating results in this press release. These non-GAAP measures are not in accordance with – or alternatives to – GAAP measures, and may be different from non-GAAP measures used by other companies. Adjusted EPS, adjusted net income, and AOI exclude nora purchase accounting amortization, the cyber event impact, and restructuring, asset impairment, severance, and other, net. Adjusted EPS and adjusted net income also exclude the loss on debt extinguishment, a warehouse fire recovery, property casualty loss impact, the loss on foreign subsidiary liquidation, the UK pension surplus tax rate change, and deferred taxes - rate changes and other. Adjusted gross profit and adjusted gross profit margin exclude the nora purchase accounting amortization. Adjusted SG&A expenses exclude restructuring, asset impairment, severance, and other, net and the cyber event impact. Currency-neutral sales and currency-neutral sales growth exclude the impact of foreign currency fluctuations.

Net debt is total debt less cash on hand. Adjusted EBITDA is GAAP net income excluding interest expense, income tax expense, depreciation and amortization, share-based compensation expense, cyber event impact, property casualty loss impact, restructuring, asset impairment, severance, and other, net, nora purchase accounting amortization, a warehouse fire recovery, and the loss on foreign subsidiary liquidation. This news release should be read in conjunction with the Company's Current Report on Form 8-K furnished today to the U.S. Securities & Exchange Commission, which explains why Interface believes presentation of these non-GAAP measures provides useful information to investors, as well as any additional material purposes for which Interface uses these non-GAAP measures.

About Interface

Interface is a global flooring and sustainability leader dedicated to rethinking how spaces work for people and the planet. Our portfolio includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs. Across every brand, we innovate in a way that combines design, performance, and sustainability—without compromise.

Trusted by architects, designers, and building professionals worldwide, we help bring bold visions to life with solutions that deliver real, measurable impact. Building on more than 30 years of sustainability progress and industry‑first innovation, we remain ‘all in' on our goal of becoming carbon negative by 2040, without the use of offsets.

Learn more about Interface (NASDAQ:TILE) and our brands at interface.com and FLOR.com. Join us on Facebook, Instagram, LinkedIn, and Pinterest.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. Forward-looking statements may be identified by words such as "may," "expect," "forecast," "anticipate," "intend," "plan," "believe," "could," "should," "goal," "aim," "objective," "seek," "project," "estimate," "target," "will" and similar expressions. Forward-looking statements in this press release include, without limitation, any projections we make regarding the Company's first quarter and full year 2026 under "Outlook" above. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2024, and Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2025: "We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design or sustainability", "Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets", "Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including experienced sales and manufacturing personnel), and our loss of any of them could affect us adversely", "Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to pass these cost increases through to our customers", "Unanticipated termination or interruption of any of our arrangements with our primary third-party suppliers of synthetic fiber or our primary third-party supplier for luxury vinyl tile ("LVT") or other key raw materials could have a material adverse effect on us", "Changes to our facilities, manufacturing processes, product construction, and product composition could disrupt our operations, increase our manufacturing costs, increase customer complaints, increase warranty claims, negatively affect our reputation, and have a material adverse effect on our financial condition and results of operations", "Our business operations could suffer significant losses from natural disasters, acts of war, terrorism, catastrophes, fire, adverse weather conditions, pandemics, endemics, unstable geopolitical situations or other unexpected events", "The market price of our common stock has been volatile and the value of your investment may decline", "Sales of our principal products have been and may continue to be affected by adverse economic cycles, and effects in the new construction market and renovation market", "Disruptions to or failures of information technology systems we use could adversely affect our business", "The impact of potential changes to environmental laws and regulations and industry standards regarding climate change and other sustainability matters could lead to unforeseen disruptions to our business operations", "Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations", Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including foreign currency fluctuations, restrictive taxation, custom duties, tariffs, border closings or other adverse government regulations", "The conflicts between Russia and Ukraine and in the Middle East could adversely affect our business, results of operations and financial position", "Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations", "The uncertainty surrounding the ongoing implementation and effect of the U.K.'s exit from the European Union, and related negative developments in the European Union, could adversely affect our business, results of operations or financial condition", "We have a substantial amount of debt, which could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our debt", "Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness", "We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness", "We face risks associated with litigation and claims", and "Changes in foreign trade policies and tariffs may adversely impact our business, financial condition, and results of operations".

You should consider any additional or updated information we include under the heading "Risk Factors" in our subsequent quarterly and annual reports.

Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements.

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Media Contact:

Christine Needles

Global Corporate Communications

[email protected]

+1 404-491-4660

Investor Contact:

Bruce Hausmann

Chief Financial Officer

[email protected]

+1 770-437-6802