bcpc-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 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: 1-13648

_______________________________________________________________________________________________________________

Balchem Corporation

(Exact name of Registrant as specified in its charter)


Maryland						13-2578432
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

5 Paragon Drive, Montvale, NJ 07645

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (845) 326-5600

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


Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, par value $.06-2/3 per share	BCPC	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 such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting 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

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of April 23, 2026, the registrant had 32,129,836 shares of its Common Stock, $.06 2/3 par value, outstanding.

Table of Contents

BALCHEM CORPORATION

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

Page No.

PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements (unaudited)

Condensed Consolidated Balance Sheets as of March 3 1 , 202 6 and December 31, 2025

Condensed Consolidated Statements of Earnings for the Three Months Ended March 3 1 , 202 6 and 2025

Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 3 1 , 202 6 and 2025

Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 3 1 , 202 6 and 2025

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 3 1 , 202 6 and 2025

Notes to Condensed Consolidated Financial Statements

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

Unregistered Sales of Equity Securities and Use of Proceeds

Part I. Financial Information

Item 1. Financial Statements

BALCHEM CORPORATION

Condensed Consolidated Balance Sheets

(Dollars in thousands, except share and per share data)


Assets	March 31, 2026		December 31, 2025
Current assets:	(unaudited)
Cash and cash equivalents	$	72,873	$	74,570
Accounts receivable, net of allowance for credit losses of $1,148 and $862 at March 31, 2026 and December 31, 2025, respectively	154,232		143,596
Inventories, net	146,743		131,449
Prepaid expenses	8,955		9,778
Other current assets	6,138		6,221
Total current assets	388,941		365,614
Property, plant and equipment, net	303,070		306,648
Goodwill	811,452		816,375
Customer relationships and lists, net	127,678		132,994
Other intangible assets with finite lives, net	28,784		30,295
Right of use assets - operating leases	13,661		14,672
Right of use assets - finance lease	1,469		1,520
Other non-current assets	18,687		18,134
Total assets	$	1,693,742	$	1,686,252
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable	$	70,729	$	60,425
Accrued expenses	51,820		49,288
Accrued compensation and other benefits	12,698		27,896
Dividends payable	169		31,044
Income taxes payable	13,473		3,912
Operating lease liabilities - current	3,444		3,614
Finance lease liabilities - current	207		205
Total current liabilities	152,540		176,384
Revolving loan	169,000		164,000
Deferred income taxes	53,376		54,143
Operating lease liabilities - non-current	10,571		11,324
Finance lease liabilities - non-current	1,492		1,544
Other long-term obligations	21,647		21,444
Total liabilities	408,626		428,839
Commitments and contingencies (Note 15)
Stockholders' equity:
Preferred stock, $25 par value. Authorized 2,000,000 shares; none issued and outstanding	—		—
Common stock, $0.0667 par value. Authorized 120,000,000 shares; 32,128,526 and 32,058,121 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively	2,143		2,139
Additional paid-in capital	89,543		92,331
Retained earnings	1,161,681		1,121,396
Accumulated other comprehensive income	31,749		41,547
Total stockholders' equity	1,285,116		1,257,413
Total liabilities and stockholders' equity	$	1,693,742	$	1,686,252

See accompanying notes to condensed consolidated financial statements.

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BALCHEM CORPORATION

Condensed Consolidated Statements of Earnings

(Dollars in thousands, except per share data)

(unaudited)


	Three Months Ended March 31,
	2026		2025

Net sales	$	270,709	$	250,519

Cost of sales	169,625		162,351

Gross margin	101,084		88,168

Operating expenses:
Selling expenses	21,096		16,926
Research and development expenses	5,881		4,662
General and administrative expenses	18,481		15,565
	45,458		37,153

Earnings from operations	55,626		51,015

Other expenses, net:
Interest expense, net	2,213		2,924
Other expense, net	891		151
	3,104		3,075

Earnings before income tax expense	52,522		47,940

Income tax expense	12,237		10,887

Net earnings	$	40,285	$	37,053

Net earnings per common share - basic	$	1.26	$	1.14

Net earnings per common share - diluted	$	1.25	$	1.13

See accompanying notes to condensed consolidated financial statements.

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BALCHEM CORPORATION

Condensed Consolidated Statements of Comprehensive Income

(Dollars in thousands)

(unaudited)


	Three Months Ended March 31,
	2026		2025

Net earnings	$	40,285	$	37,053

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	(10,102)		21,722
Change in postretirement benefit plans	304		(238)
Other comprehensive (loss) income	(9,798)		21,484

Comprehensive income	$	30,487	$	58,537

See accompanying notes to condensed consolidated financial statements.

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BALCHEM CORPORATION

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the Three Months Ended March 31, 2026 and 2025

(Dollars in thousands, except share and per share data)

(Unaudited)


	Total Stockholders' Equity		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Common Stock			Additional Paid-in Capital
							Shares	Amount
Balance - December 31, 2025	$	1,257,413	$	1,121,396	$	41,547	32,058,121	$	2,139	$	92,331
Net earnings	40,285		40,285		—		—	—		—
Other comprehensive loss	(9,798)		—		(9,798)		—	—		—
Repurchases of common stock	(14,923)		—		—		(89,880)	(6)		(14,917)
Shares and options issued under stock plans	12,139		—		—		160,285	10		12,129
Balance - March 31, 2026	$	1,285,116	$	1,161,681	$	31,749	32,128,526	$	2,143	$	89,543

Balance - December 31, 2024	$	1,149,913	$	997,493	$	(23,747)	32,527,244	$	2,170	$	173,997
Net earnings	37,053		37,053		—		—	—		—
Other comprehensive income	21,484		—		21,484		—	—		—
Repurchases of common stock	(5,325)		—		—		(32,869)	(2)		(5,323)
Shares and options issued under stock plans	5,576		—		—		117,169	7		5,569
Balance - March 31, 2025	$	1,208,701	$	1,034,546	$	(2,263)	32,611,544	$	2,175	$	174,243

See accompanying notes to condensed consolidated financial statements.

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BALCHEM CORPORATION

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(unaudited)


	Three Months Ended March 31,
	2026		2025
Cash flows from operating activities:
Net earnings	$	40,285	$	37,053

Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	12,491		11,014
Stock compensation expense	5,356		3,810
Deferred income taxes	(187)		(115)
Provision for (recovery of) credit losses	289		(79)
Unrealized loss on foreign currency transactions and deferred compensation	717		24
Loss on disposal of assets and asset impairment	151		65
Changes in assets and liabilities
Accounts receivable	(11,409)		(10,069)
Inventories	(16,216)		(12,897)
Prepaid expenses and other current assets	763		(859)
Accounts payable and accrued expenses	(1,554)		(737)
Income taxes	9,487		9,123
Other	(112)		124
Net cash provided by operating activities	40,061		36,457

Cash flows from investing activities:
Capital expenditures and intangible assets acquired	(6,252)		(5,559)
Cash paid for acquisitions, net of cash acquired	—		(323)
Proceeds from sale of assets	2		—
Investment in affiliates	(42)		(30)
Net cash used in investing activities	(6,292)		(5,912)

Cash flows from financing activities:
Proceeds from revolving loan	52,000		29,000
Principal payments on revolving loan	(47,000)		(29,000)
Principal payments on finance leases	(51)		(49)
Proceeds from stock options exercised	6,727		1,668
Dividends paid	(30,769)		(28,263)
Repurchases of common stock	(15,690)		(5,325)
Net cash used in financing activities	(34,783)		(31,969)

Effect of exchange rate changes on cash	(683)		1,810

(Decrease) increase in cash and cash equivalents	(1,697)		386

Cash and cash equivalents beginning of period	74,570		49,515
Cash and cash equivalents end of period	$	72,873	$	49,901

See accompanying notes to condensed consolidated financial statements.

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BALCHEM CORPORATION

Notes to Condensed Consolidated Financial Statements (Unaudited)

(All dollar amounts in thousands, except share and per share data)

NOTE 1 – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The condensed consolidated financial statements presented herein have been prepared in accordance with the accounting policies described in the December 31, 2025 consolidated financial statements, and should be read in conjunction with the consolidated financial statements and notes, which appear in the Annual Report on Form 10-K for the year ended December 31, 2025. The condensed consolidated financial statements reflect the operations of Balchem Corporation and its subsidiaries (the "Company" or "Balchem"). All intercompany balances and transactions have been eliminated in consolidation.

In the opinion of management, the unaudited condensed consolidated financial statements furnished in this Form 10-Q include all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal, recurring nature. The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP” or “GAAP”) governing interim financial statements and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934 (the "Exchange Act") and therefore do not include some information and notes necessary to conform to annual reporting requirements. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the operating results expected for the full year or any interim period.

Certain reclassifications have been made to prior period amounts to conform with the current period's presentation.

Recent Accounting Pronouncements

Recently Issued Accounting Standards

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, "Income Statement - Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)." The new guidance is intended to enhance transparency and disclosures by requiring public entities to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis. The ASU is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on the consolidated financial statements and related disclosures.

NOTE 2 - STOCKHOLDERS' EQUITY

Stock-Based Compensation

The Company’s results for the three months ended March 31, 2026 and 2025 reflected the following stock-based compensation cost, and such compensation cost had the following effects on net earnings:


	Increase/(Decrease) for the
	Three Months Ended March 31,
	2026		2025
Cost of sales	$	531	$	438
Operating expenses	4,825		3,372
Net earnings	(4,120)		(2,928)

The Company's omnibus incentive plan ("the Plan") allows for the granting of stock awards and options to purchase common stock. Both incentive stock options and nonqualified stock options can be awarded under the plan. The Company has approved and reserved a number of shares to be issued upon exercise of the outstanding options that is adequate to cover all exercises. As of March 31, 2026, the Plan had 503,567 shares available for future awards.

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Option activity for the three months ended March 31, 2026 and 2025 is summarized below:


For the Three Months Ended March 31, 2026	Shares (000s)	Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term
Outstanding as of December 31, 2025	900	$	120.48	$	29,888
Granted	71	178.68
Exercised	(66)	101.52
Forfeited	—	—
Canceled	(2)	139.31
Outstanding as of March 31, 2026	903	$	126.38	$	39,577	5.5

Exercisable as of March 31, 2026	653	$	114.89	$	35,662	4.5


For the Three Months Ended March 31, 2025	Shares (000s)	Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term
Outstanding as of December 31, 2024	962	$	114.81	$	46,346
Granted	51	159.18
Exercised	(18)	90.50
Forfeited	—

SEC Form 10-Q filed by Balchem Corporation