false00000330022026Q202/28truehttp://fasb.org/us-gaap/2025#RevenueFromContractWithCustomerExcludingAssessedTaxhttp://fasb.org/us-gaap/2025#RevenueFromContractWithCustomerExcludingAssessedTaxhttp://fasb.org/us-gaap/2025#RevenueFromContractWithCustomerExcludingAssessedTaxhttp://fasb.org/us-gaap/2025#RevenueFromContractWithCustomerExcludingAssessedTaxhttp://fasb.org/us-gaap/2025#CostOfGoodsAndServicesSoldhttp://fasb.org/us-gaap/2025#CostOfGoodsAndServicesSoldhttp://fasb.org/us-gaap/2025#CostOfGoodsAndServicesSoldhttp://fasb.org/us-gaap/2025#CostOfGoodsAndServicesSoldtrueP5Yhttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#OperatingIncomeLosshttp://fasb.org/us-gaap/2025#RevenueFromContractWithCustomerExcludingAssessedTaxhttp://fasb.org/us-gaap/2025#RevenueFromContractWithCustomerExcludingAssessedTaxhttp://fasb.org/srt/2025#BoardOfDirectorsChairmanMember http://fasb.org/srt/2025#ChiefExecutiveOfficerMember http://fasb.org/srt/2025#PresidentMemberOneOne0000033002us-gaap:TrademarksAndTradeNamesMember2025-02-280000033002us-gaap:TreasuryStockCommonMember2025-05-310000033002ebf:ThirdAmendmentMemberus-gaap:StandbyLettersOfCreditMember2025-08-310000033002us-gaap:PropertyPlantAndEquipmentMember2025-08-310000033002us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-012025-08-310000033002us-gaap:LandAndBuildingMember2025-08-310000033002us-gaap:SellingGeneralAndAdministrativeExpensesMember2024-02-292024-08-310000033002us-gaap:TreasuryStockCommonMember2024-05-310000033002us-gaap:OperatingSegmentsMember2024-06-012024-08-3100000330022024-02-292024-08-310000033002us-gaap:RetainedEarningsMember2025-08-310000033002us-gaap:CustomerListsMember2025-02-280000033002ebf:StockRepurchaseProgramMember2024-06-012024-08-310000033002us-gaap:RetainedEarningsMember2024-08-310000033002us-gaap:AdditionalPaidInCapitalMember2024-06-012024-08-310000033002srt:MinimumMember2025-08-310000033002us-gaap:TreasuryStockCommonMember2024-08-310000033002us-gaap:TrademarksAndTradeNamesMember2025-08-310000033002ebf:PrintingTechnologiesIncMember2025-03-012025-08-310000033002us-gaap:SellingGeneralAndAdministrativeExpensesMember2025-06-012025-08-310000033002us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-012025-08-310000033002ebf:StockRepurchaseProgramMember2025-03-012025-08-310000033002us-gaap:AdditionalPaidInCapitalMember2025-03-012025-08-310000033002us-gaap:AdditionalPaidInCapitalMember2024-02-2900000330022024-02-290000033002us-gaap:CommonStockMember2025-05-310000033002srt:MinimumMemberebf:PerformanceBasedRestrictedStockUnitsMember2025-03-012025-08-310000033002us-gaap:RetainedEarningsMember2025-06-012025-08-310000033002us-gaap:TreasuryStockCommonMember2024-03-012024-08-3100000330022025-08-310000033002us-gaap:EmployeeStockOptionMember2025-03-012025-08-310000033002us-gaap:TreasuryStockCommonMember2025-02-280000033002us-gaap:OperatingSegmentsMember2025-06-012025-08-310000033002ebf:PrintingTechnologiesIncMember2024-06-260000033002srt:ScenarioForecastMember2025-03-012026-02-280000033002us-gaap:SubsequentEventMemberebf:O2025Q2DividendsMember2025-09-2200000330022025-03-012025-08-310000033002us-gaap:RelatedPartyMember2025-08-310000033002us-gaap:OperatingSegmentsMember2024-03-012024-08-310000033002us-gaap:SellingGeneralAndAdministrativeExpensesMember2024-06-012024-08-310000033002us-gaap:PropertyPlantAndEquipmentOtherTypesMember2025-02-280000033002us-gaap:RetainedEarningsMember2024-03-012024-08-310000033002us-gaap:NoncompeteAgreementsMember2025-02-280000033002us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-08-3100000330022025-06-012025-08-310000033002ebf:PrintingTechnologiesIncMember2024-06-262024-06-260000033002us-gaap:CustomerListsMember2025-08-310000033002us-gaap:LandAndBuildingMember2025-02-2800000330022024-03-012025-02-280000033002ebf:TimeBasedRestrictedStockUnitsMember2025-03-012025-08-310000033002us-gaap:RetainedEarningsMember2025-03-012025-08-310000033002ebf:IntegratedPrintAndGraphicsMember2024-03-012024-08-310000033002us-gaap:AdditionalPaidInCapitalMember2024-08-310000033002us-gaap:RelatedPartyMember2025-02-280000033002us-gaap:TreasuryStockCommonMember2025-03-012025-08-3100000330022024-08-3100000330022025-09-2600000330022008-10-012025-08-310000033002us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-08-310000033002srt:MaximumMember2025-03-012025-08-310000033002us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-012024-08-310000033002us-gaap:AdditionalPaidInCapitalMember2025-05-310000033002ebf:PerformanceBasedRestrictedStockUnitsMember2025-03-012025-08-310000033002us-gaap:RetainedEarningsMember2025-02-280000033002us-gaap:AdditionalPaidInCapitalMember2025-02-280000033002ebf:PerformanceBasedRestrictedStockUnitsMember2025-08-310000033002ebf:ComputerEquipmentAndSoftwareMember2025-08-310000033002us-gaap:CommonStockMember2024-05-310000033002us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-02-280000033002ebf:StockRepurchaseProgramMember2025-06-012025-08-310000033002us-gaap:SellingGeneralAndAdministrativeExpensesMember2025-03-012025-08-310000033002us-gaap:TreasuryStockCommonMember2025-06-012025-08-310000033002us-gaap:PropertyPlantAndEquipmentMember2025-02-280000033002ebf:TwoThousandTwentyOneLongTermIncentivePlanMember2021-04-160000033002us-gaap:NoncompeteAgreementsMember2025-08-310000033002us-gaap:PropertyPlantAndEquipmentOtherTypesMember2025-08-310000033002ebf:IntegratedPrintAndGraphicsMember2025-08-310000033002us-gaap:RestrictedStockUnitsRSUMember2025-03-012025-08-310000033002ebf:FairValueTimeBasedRestrictedStockUnitsMemberebf:TwoThousandTwentyOneLongTermIncentivePlanMember2025-03-012025-08-310000033002us-gaap:TechnologyBasedIntangibleAssetsMember2025-02-280000033002us-gaap:CommonStockMember2024-02-290000033002us-gaap:RestrictedStockMember2025-03-012025-08-310000033002us-gaap:RetainedEarningsMember2025-05-310000033002us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-02-290000033002us-gaap:TechnologyBasedIntangibleAssetsMember2025-08-3100000330022025-05-310000033002us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-05-310000033002ebf:IntegratedPrintAndGraphicsMember2025-02-280000033002us-gaap:RetainedEarningsMember2024-02-290000033002srt:MinimumMember2025-03-012025-08-310000033002ebf:PrintedProductsMember2025-03-012025-08-310000033002us-gaap:AdditionalPaidInCapitalMember2025-06-012025-08-310000033002us-gaap:StockOptionMember2025-03-012025-08-310000033002ebf:TwoThousandTwentyOneLongTermIncentivePlanMemberebf:PerformanceBasedRestrictedStockUnitsMember2025-03-012025-08-310000033002us-gaap:TreasuryStockCommonMember2024-06-012024-08-310000033002srt:MaximumMember2025-08-310000033002ebf:TimeBasedRestrictedStockUnitsMember2025-08-310000033002us-gaap:CommonStockMember2024-08-310000033002us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-05-310000033002ebf:StockRepurchaseProgramMember2024-03-012024-08-3100000330022024-06-012024-08-310000033002us-gaap:RestrictedStockMember2025-08-310000033002ebf:TwoThousandTwentyOneLongTermIncentivePlanMemberebf:FairValuePerformanceBasedRestrictedStockUnitsMember2025-03-012025-08-310000033002ebf:IntegratedPrintAndGraphicsMember2025-03-012025-08-310000033002ebf:TimeBasedRestrictedStockUnitsMember2025-02-280000033002us-gaap:SubsequentEventMemberebf:O2025Q2DividendsMember2025-09-222025-09-220000033002us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-012024-08-3100000330022025-02-280000033002ebf:PrintedProductsMember2024-03-012024-08-310000033002us-gaap:RetainedEarningsMember2024-06-012024-08-310000033002us-gaap:AdditionalPaidInCapitalMember2024-05-310000033002us-gaap:RetainedEarningsMember2024-05-310000033002ebf:PerformanceBasedRestrictedStockUnitsMember2025-02-2800000330022024-03-012024-08-310000033002us-gaap:CommonStockMember2025-08-310000033002us-gaap:RestrictedStockMember2025-02-280000033002ebf:ComputerEquipmentAndSoftwareMember2025-02-280000033002us-gaap:AdditionalPaidInCapitalMember2024-03-012024-08-310000033002ebf:NortheasternEnvelopeCompanyAndEnvelopeSuperstoreMember2025-04-1100000330022024-05-310000033002us-gaap:OperatingSegmentsMember2025-03-012025-08-310000033002ebf:NortheasternEnvelopeCompanyAndEnvelopeSuperstoreMember2025-03-012025-08-310000033002us-gaap:TreasuryStockCommonMember2025-08-310000033002ebf:TwoThousandTwentyOneLongTermIncentivePlanMemberebf:TimeBasedRestrictedStockUnitsMember2025-03-012025-08-310000033002us-gaap:AdditionalPaidInCapitalMember2025-08-310000033002us-gaap:SubsequentEventMember2025-09-220000033002ebf:NECAndESSMember2025-03-012025-08-310000033002us-gaap:StockOptionMember2025-08-310000033002us-gaap:CommonStockMember2025-02-280000033002us-gaap:TreasuryStockCommonMember2024-02-290000033002srt:MaximumMemberebf:PerformanceBasedRestrictedStockUnitsMember2025-03-012025-08-310000033002ebf:BDLithoFacilityMember2025-08-310000033002ebf:TwoThousandTwentyOneLongTermIncentivePlanMember2025-08-31xbrli:purexbrli:sharesiso4217:USDiso4217:USDxbrli:sharesebf:Segment

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 August 31, 2025

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period from to

Commission File Number 1-5807

ENNIS, INC.

(Exact Name of Registrant as Specified in Its Charter)


Texas		75-0256410
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

2441 Presidential Pkwy., Midlothian, Texas		76065
(Address of Principal Executive Offices)		(Zip code)

Registrant’s Telephone Number, Including Area Code: (972) 775-9801

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 $2.50 per share

     EBF

     New York Stock Exchange

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 Date 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, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

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

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

As of September 26, 2025, there were 25,629,751 shares of the Registrant’s common stock outstanding.

ENNIS, INC. AND SUBSIDIARIES

FORM 10-Q

FOR THE PERIOD ENDED AUGUST 31, 2025

TABLE OF CONTENTS


PART I: FINANCIAL INFORMATION

	Item 1. Condensed Consolidated Financial Statements (unaudited)	3

	Condensed Consolidated Balance Sheets at August 31, 2025 and February 28, 2025	3

	Condensed Consolidated Statements of Operations for the three and six months ended August 31, 2025 and August 31, 2024	4

	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended August 31, 2025 and August 31, 2024	5

	Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended August 31, 2025 and August 31, 2024	6

	Condensed Consolidated Statements of Cash Flows for the six months ended August 31, 2025 and August 31, 2024	7

	Notes to Condensed Consolidated Financial Statements (unaudited)	8

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	30

	Item 4. Controls and Procedures	30

PART II: OTHER INFORMATION

	Item 1. Legal Proceedings	30

	Item 1A. Risk Factors	30

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	31

	Item 3. Defaults Upon Senior Securities	31

	Item 4. Mine Safety Disclosures	31

	Item 5. Other Information	31

	Item 6. Exhibits	31

SIGNATURES		32

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except share and per share amounts)


	August 31,			February 28,
	2025			2025
Assets
Current assets
Cash	$	31,886		$	67,000
Short-term investments		—			5,475
Accounts receivable, net		36,457			37,037
Other receivables		5,700			1,716
Inventories, net		62,078			38,797
Prepaid expenses		2,595			2,587
Prepaid income taxes		198			128
Total current assets		138,914			152,740
Property, plant and equipment, net		57,964			52,586
Operating lease right-of-use assets, net		11,278			9,833
Goodwill		106,906			94,349
Intangible assets, net		40,645			33,270
Net pension asset		1,422			1,422
Other assets		4,704			4,735
Total assets	$	361,833		$	348,935

Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	19,641		$	13,799
Accrued expenses		17,262			15,339
Current portion of operating lease liabilities		4,251			4,166
Total current liabilities		41,154			33,304
Deferred income taxes		8,069			7,841
Operating lease liabilities, net of current portion		6,729			5,310
Other liabilities		501			500
Total liabilities		56,453			46,955
Shareholders’ equity
Common stock $2.50 par value, authorized 40,000,000 shares; issued 30,053,443 shares at August 31, 2025 and February 28, 2025		75,134			75,134
Additional paid-in capital		125,894			125,452
Retained earnings		194,307			184,430
Accumulated other comprehensive loss:
Minimum pension liability, net of taxes		(10,740	)		(11,426	)
Treasury stock		(79,215	)		(71,610	)
Total shareholders’ equity		305,380			301,980
Total liabilities and shareholders' equity	$	361,833		$	348,935

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except share and per share amounts)


	Three months ended						Six months ended
	August 31,						August 31,
	2025			2024			2025			2024
Net sales	$	98,676		$	99,038		$	195,872		$	202,146
Cost of goods sold		68,574			69,259			135,541			141,463
Gross profit		30,102			29,779			60,331			60,683
Selling, general and administrative		17,719			16,557			34,665			33,727
Loss from disposal of assets		—			39			—			43
Income from operations		12,383			13,183			25,666			26,913
Other income (expense)
Interest income		777			1,369			1,328			2,728
Proceeds from legal settlement		5,298			—			5,298			—
Other, net		(314	)		(335	)		(633	)		(683	)
Total other income (expense)		5,761			1,034			5,993			2,045
Earnings before income taxes		18,144			14,217			31,659			28,958
Income tax expense		4,989			3,909			8,706			7,963
Net earnings	$	13,155		$	10,308		$	22,953		$	20,995
Weighted average common shares outstanding
Basic		25,718,068			26,009,876			25,836,670			26,015,195
Diluted		25,791,647			26,054,499			25,905,625			26,156,161
Earnings per share
Basic	$	0.51		$	0.40		$	0.89		$	0.81
Diluted	$	0.51		$	0.40		$	0.89		$	0.80

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in thousands)


	Three months ended					Six months ended
	August 31,					August 31,
	2025		2024			2025		2024
Net earnings	$	13,155	$	10,308		$	22,953	$	20,995
Adjustment to pension, net of taxes		343		(528	)		686		(156	)
Comprehensive income	$	13,498	$	9,780		$	23,639	$	20,839

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(unaudited, in thousands, except share and per share amounts)


											Accumulated
					Additional						Other
	Common Stock				Paid-in			Retained			Comprehensive			Treasury Stock
	Shares		Amount		Capital			Earnings			Income (Loss)			Shares			Amount			Total
Balance May 31, 2025		30,053,443	$	75,134	$	125,677		$	187,658		$	(11,083	)		(4,299,282	)	$	(76,234	)	$	301,152
Net earnings		—		—		—			13,155			—			—			—			13,155
Adjustment to pension, net of deferred tax of $113		—		—		—			—			343			—			—			343
Dividends paid ($0.25 per share)		—		—		—			(6,506	)		—			—			—			(6,506	)
Stock based compensation		—		—		779			—			—			—			—			779
Exercise of stock options and restricted stock		—		—		(562	)		—			—			31,640			561			(1	)
Common stock repurchases		—		—		—			—			—			(196,111	)		(3,542	)		(3,542	)
Balance August 31, 2025		30,053,443	$	75,134	$	125,894		$	194,307		$	(10,740	)		(4,463,753	)	$	(79,215	)	$	305,380

Balance February 28, 2025		30,053,443	$	75,134	$	125,452		$	184,430		$	(11,426	)		(4,060,655	)	$	(71,610	)	$	301,980
Net earnings		—		—		—			22,953			—			—			—			22,953
Adjustment to pension, net of deferred tax of $227		—		—		—			—			686			—			—			686
Dividends paid ($0.50 per share)		—		—		—			(13,076	)		—			—			—			(13,076	)
Stock based compensation		—		—		1,346			—			—			—			—			1,346
Exercise of stock options and restricted stock		—		—		(904	)		—			—			53,573			948			44
Common stock repurchases		—		—		—			—			—			(456,671	)		(8,553	)		(8,553	)
Balance August 31, 2025		30,053,443	$	75,134	$	125,894		$	194,307		$	(10,740	)		(4,463,753	)	$	(79,215	)	$	305,380

Balance May 31, 2024		30,053,443	$	75,134	$	123,948		$	240,423		$	(12,647	)		(4,110,893	)	$	(72,485	)	$	354,373
Net earnings		—		—		—			10,308			—			—			—			10,308
Adjustment to pension, net of deferred tax of $1,024		—		—		—			—			(528	)		—			—			(528	)
Dividends paid ($0.25 per share)		—		—		—			(6,496	)		—			—			—			(6,496	)
Stock based compensation		—		—		713			—			—			—			—			713
Exercise of stock options and restricted stock		—		—		(346	)		—			—			19,676			346			—
Common stock repurchases		—		—		—			—			—			(39	)		(1	)		(1	)
Balance August 31, 2024		30,053,443	$	75,134	$	124,315		$	244,235		$	(13,175	)		(4,091,256	)	$	(72,140	)	$	358,369

Balance February 29, 2024		30,053,443	$	75,134	$	126,253		$	236,196		$	(13,019	)		(4,250,226	)	$	(74,723	)	$	349,841
Net earnings		—		—		—			20,995			—			—			—			20,995
Adjustment to pension, net of deferred tax of $1,148		—		—		—			—			(156	)		—			—			(156	)
Dividends paid ($0.50 per share)		—		—		—			(12,956	)		—			—			—			(12,956	)
Stock based compensation		—		—		2,473			—			—			—			—			2,473
Exercise of stock options and restricted stock		—		—		(4,411	)		—			—			250,892			4,411			—
Common stock repurchases		—		—		—			—			—			(91,922	)		(1,828	)		(1,828	)
Balance August 31, 2024		30,053,443	$	75,134	$	124,315		$	244,235		$	(13,175	)		(4,091,256	)	$	(72,140	)	$	358,369

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)


	Six months ended
	August 31,
	2025			2024
Cash flows from operating activities:
Net earnings	$	22,953		$	20,995
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation		4,519			4,566
Amortization of intangible assets		3,973			3,864
Loss from disposal of assets		—			43
Amortization of discount on short-term investments		(25	)		(737	)
Bad debt expense, net of recoveries		118			177
Stock based compensation		1,346			2,473
Net pension expense		913			992
Changes in operating assets and liabilities, net of the effects of acquisitions
Accounts and other receivables		(1,937	)		4,639
Prepaid expenses and income taxes		(78	)		(1,042	)
Inventories		(20,767	)		227
Cash paid to pension plan		—			(1,200	)
Other assets		31			—
Accounts payable and accrued expenses		7,320			(77	)
Other liabilities		59			21
Net cash provided by operating activities		18,425			34,941
Cash flows from investing activities:
Capital expenditures		(2,793	)		(3,618	)
Purchase of businesses, net of cash acquired		(34,931	)		(5,622	)
Purchase of short-term investments		—			(10,093	)
Maturity of short-term investments		5,500			17,500
Proceeds from disposal of plant and property		270			56
Net cash used in investing activities		(31,954	)		(1,777	)
Cash flows from financing activities:
Dividends paid		(13,076	)		(12,956	)
Common stock repurchases		(8,553	)		(1,828	)
Proceeds from exercise of stock options		44			—
Net cash used in financing activities		(21,585	)		(14,784	)
Net change in cash and cash equivalents		(35,114	)		18,380
Cash and cash equivalents at beginning of period		67,000			81,597
Cash and cash equivalents at end of period	$	31,886		$	99,977

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED AUGUST 31, 2025
(unaudited)

1. Significant Accounting Policies and General Matters

Basis of Presentation

These unaudited condensed consolidated financial statements of Ennis, Inc. and its subsidiaries (collectively referred to as the “Company,” “Registrant,” “Ennis,” or “we,” “us,” or “our”) for the six months ended August 31, 2025 have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP') and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2025, from which the accompanying consolidated balance sheet at February 28, 2025 was derived. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation of the interim financial information have been included and are of a normal recurring nature. The preparation of the condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the disclosure and reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates these estimates and judgments on an ongoing basis, including those related to credit losses, inventory valuations, property, plant and equipment, intangible assets, pension plan, accrued liabilities, and income taxes. The Company bases estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. The results of operations for any interim period are not necessarily indicative of the results of operations for a full year.

Recent Accounting Pronouncements

Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in a public entity’s income tax rate reconciliation table and other disclosures regarding cash taxes paid both in the U.S. and foreign jurisdictions. This ASU is effective for annual periods beginning after December 15, 2024 (fiscal 2026 for the Company), but early adoption is permitted. This ASU should be applied on a prospective basis, although retrospective application is permitted. Management expects the adoption of the pronouncement will result in additional disclosures in its Consolidated Financial Statements for fiscal year 2026 but does not expect it to have a material impact on our Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, that requires entities to disclose additional information in the notes to the financial statements about prescribed categories underlying any relevant income statement expense caption. The new standard is effective for annual reporting periods beginning after December 15, 2026 (fiscal year 2028 for the Company and interim periods within annual reporting periods beginning after December 15, 2027. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements but will result in some disaggregation of the Company’s income statement expenses in the notes to the Consolidated Financial Statements.

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments - Credit Losses (Topic 326): Measurements of Credit Losses for Accounts Receivable and Contract Assets" ("ASU 2025-05"). The amendments in this update provide a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under FASB Accounting Standards Codification 606. Under ASU 2025-05, an entity is required to disclose whether it has elected to use the practical expedient. An entity that makes the accounting policy election is required to disclose the date through which subsequent cash collection are evaluated. ASU 2025-05 is effective for the Company beginning in the fiscal year ending February 28, 2027. The Company is currently evaluating the impacts of the adoption of ASU 2025-05 on the Consolidated Financial Statements.

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED AUGUST 31, 2025
(unaudited)

2. Revenue

Nature of Revenues

Substantially all of the Company’s revenue is derived from the sale of printed products in the continental United States of America and is primarily recognized at a point in time in an amount that reflects the consideration the Company expects to be provided in exchange for those goods. Revenue from the sale of commercial printing products, including shipping and handling fees billed to customers, is recognized when the performance obligation is met upon the transfer of control to the customer, which is generally upon shipment to the customer when the terms of the sale are freight on board ("FOB") shipping point, or, to a lesser extent, upon delivery to the customer if the terms of the sale are FOB destination. Net sales represent gross sales invoiced to customers, less certain related charges, including sales tax, discounts, returns and other allowances. Returns, discounts and other allowances have historically been insignificant.

In a small number of cases and upon customer request, the Company prints and stores printed product for customer specified future delivery, generally within the same year as the product is manufactured. In this case, revenue is recognized upon the transfer of control when manufacturing is complete and title and risk of ownership is passed to the customer while the inventory remains in the Company’s warehouse. Approximately $6.1 million and $6.9 million of revenue was recognized under these arrangements during the six months ended August 31, 2025 and 2024, respectively.

Storage revenue for certain customers may be recognized over time rather than at a point in time. The amount of storage revenue is immaterial to the Consolidated Financial Statements. As the output method for measure of progress is determined to be appropriate, the Company recognizes revenue in the amount for which it has the right to invoice for revenue that is recognized over time and for which it demonstrates that the invoiced amount corresponds directly with the value to the customer for the performance completed to date.

The Company does not disaggregate revenue and operates in one reportable segment consisting of printed product revenue, which is reported as net sales on the condensed consolidated statements of operations. See Note 19. The Company does not have material contract assets and contract liabilities as of August 31, 2025.

Significant Judgments

Generally, the Company’s contracts with customers are comprised of a written quote and customer purchase order or statement of work, and governed by the Company’s trade terms and conditions. In certain instances, it may be further supplemented by separate pricing agreements and customer incentive arrangements, which typically only affect the contract’s transaction price. Contracts do not contain a significant financing component as payment terms on invoiced amounts are typically between 30 to 90 days, based on the Company’s credit assessment of individual customers, as well as industry expectations. Product returns are not significant as the bulk of the Company's sales are custom in nature.

From time to time, the Company may offer incentives to its customers considered to be variable consideration including volume-based rebates or early payment discounts. Customer incentives considered to be variable consideration are recorded as a reduction to revenue as part of the transaction price at contract inception when there is a basis to reasonably estimate the amount of the incentive and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Customer incentives are allocated entirely to the single performance obligation of transferring printed product to the customer and are not considered material.

For customers with terms of FOB shipping point, the Company accounts for shipping and handling activities performed after the control of the printed product has been transferred to the customer as a fulfillment cost. The Company accrues for the costs of shipping and handling activities if revenue is recognized before contractually agreed shipping and handling activities occur.

The Company’s contracts with customers are generally short-term in nature. Accordingly, the Company does not disclose the value of unsatisfied performance obligations nor the timing of revenue recognition.

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED AUGUST 31, 2025
(unaudited)

3. Short-term Investments and Fair Value Measurements

Short-term investments are securities with original maturities of greater than three months but less than twelve months and were comprised of U.S. Treasury Bills. The Company determined the classification of these securities as trading, available for sale or held to maturity at the time of purchase and reevaluated these determinations at each balance sheet date. The Company's short-term investments were classified as held-to-maturity for the period presented as it had the positive intent and ability to hold these investments to maturity. The Company's held-to-maturity investments were stated at amortized cost with a zero credit loss allowance because the probability of default was virtually zero due to the high credit rating, long history of no credit losses and the widely recognized risk free nature of these investments.

Amortized cost and estimated fair value of investment securities classified as held-to-maturity were as follows at August 31, 2025 and February 28, 2025 (in thousands):


			Gross		Gross
	Cost or		Unrealized		Unrealized		Estimated
	Amortized		Holding		Holding		Fair
	Cost		Gains		Losses		Value
August 31, 2025
Investment securities due in less than one year	$	—	$	—	$	—	$	—

February 28, 2025
Investment securities due in less than one year	$	5,475	$	4	$	—	$	5,479

The Company’s short-term investments in investment securities were Level 1 fair value measure. The Company did not hold any Level 2 or 3 financial assets or liabilities measured at fair value on a recurring basis. There were no transfers between levels during the three and six months ended August 31, 2025.

4. Receivables

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are reduced by an allowance for an estimate of amounts that are uncollectible. Substantially all of the Company’s receivables are due from customers in North America. The Company extends credit to its customers based upon its evaluation of the following factors: (i) the customer’s financial condition, (ii) the amount of credit the customer requests, and (iii) the customer’s actual payment history (which includes disputed invoice resolution). The Company does not typically require its customers to post a deposit or supply collateral. The Company’s allowance for credit losses is based on an analysis that estimates the amount of its total customer receivable balance that is not collectible. This analysis includes assessing a default probability to customers’ receivable balances, which is influenced by several factors including (i) current market conditions, (ii) periodic review of customer credit worthiness, and (iii) review of customer receivable aging and payment trends. Accounts receivable relate to credit extended directly to customers in the ordinary course of business.

The Company writes off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance in the period the payment is received. Recoveries for the years presented were not significant to the financial statements. Credit losses from continuing operations have consistently been within management’s expectations.

The following table presents the activity in the Company’s allowance for credit losses (in thousands):


	Three months ended						Six months ended
	August 31,						August 31,
	2025			2024			2025			2024
Balance at beginning of period	$	1,758		$	1,720		$	1,713		$	1,707
Bad debt expense, net of recoveries		28			67			118			177
Accounts written off		(127	)		(11	)		(172	)		(108	)
Balance at end of period	$	1,659		$	1,776		$	1,659		$	1,776

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED AUGUST 31, 2025
(unaudited)

Other Receivables

Other receivables primarily consist of vendor rebate receivables which represent amounts due from vendors for volume and are generally negotiated at the beginning of the annual period. The Company receives volume-based rebates from certain suppliers. These rebates are recognized as a reduction in the cost of inventory and are recognized in cost of goods sold when the related inventory is sold. Rebates are accrued based on purchases and in accordance with the contractual terms.

5. Inventories

The Company values its inventories at the lower of first-in, first out (“FIFO”) cost or market cost, with the exception of approximately 11.1% and 7.1% of inventories which is valued at last-in, first-out (“LIFO”) as of August 31, 2025 and February 28, 2025, respectively, or net realizable value. The Company regularly reviews inventories on hand, using specific aging categories, and writes down the carrying value of its inventories for excess and potentially obsolete inventories based on historical usage and estimated future usage. In assessing the ultimate realization of its inventories, the Company is required to make judgments as to future demand requirements. As actual future demand or market conditions may vary from those projected by the Company, adjustments to inventories may be required. Reserves for excess and obsolete inventory at August 31, 2025 and February 28, 2025 were $1.9 million and $1.8 million, respectively.

The following table summarizes the components of inventories at the different stages of production as of the dates indicated (in thousands):


	August 31,		February 28,
	2025		2025
Raw material	$	35,231	$	20,862
Work-in-process		5,545		4,919
Finished goods		21,302		13,016
	$	62,078	$	38,797

6. Property, Plant and Equipment

The following table presents a summary of property, plant and equipment, net:


	August 31,		February 28,
	2025		2025
Plant, machinery and equipment	$	160,324	$	158,730
Land and buildings		72,472		67,946
Computer equipment and software		10,350		10,597
Other		3,946		3,995
Property, plant and equipment		247,092		241,268
Less accumulated depreciation		189,128		188,682
Property, plant and equipment, net	$	57,964	$	52,586

7. Acquisitions

The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values with certain limited exceptions permitted under US GAAP. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets and liabilities assumed, is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Acquisition-related costs are expensed in the period incurred.

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED AUGUST 31, 2025
(unaudited)

Acquisition of Northeastern Envelope Company and Envelope Superstore

On April 11, 2025 the Company acquired the net assets and business of Northeastern Envelope Company ("NEC"), which is based in Old Forge, Pennsylvania, and Envelope Superstore ("ESS") which is based in Hiram, Georgia, for approximately $34.9 million in cash. The Company performed an allocation of the total estimated consideration and recorded the underlying assets acquired (including certain identified intangible assets) and liabilities assumed based on the estimated fair values prepared by management using the information available as of the acquisition date. All goodwill of $12.6 million recognized as a part of this acquisition is deductible for tax purposes. The Company also recorded intangible assets with definite lives ranging from 2 to 13 years of approximately $11.3 million in connection with the transaction, which are also deductible for tax purposes. This allocation is preliminary and subject to change, which may be material. The acquisition of NEC and ESS strengthens our production capabilities to serve our customers in the Northeast and Southeast United States.

The following table summarizes the Company's purchase price allocation for NEC and ESS as of the acquisition date (in thousands):


Accounts receivable	$	1,585
Inventories		2,514
Right-of-use asset		601
Property, plant and equipment		7,371
Goodwill		12,557
Intangibles		11,348
Operating lease liability		(601	)
Accounts payable and accrued liabilities		(444	)
Acquisition price	$	34,931

Acquisition of Printing Technologies

On June 26, 2024, the Company acquired the assets and business of Printing Technologies, Inc. ("PTI"), which is based in Indianapolis, Indiana, for approximately $5.5 million in cash. The Company performed an allocation of the total estimated consideration and recorded the underlying assets acquired (including certain identified intangible assets) and liabilities assumed based on the estimated fair values using the information available as of the acquisition date. The Company recorded intangible assets with definite lives of approximately $2.0 million in connection with the transaction, which are deductible for tax purposes. The acquisition of PTI strengthens our production capabilities and diversifies our product offerings to enable us to better serve our broad customer base.

The following table summarizes the Company's purchase price allocation for PTI subsequent to the acquisition date (in thousands), which includes a working capital adjustment of approximately $0.1 million:


Accounts receivable	$	1,339
Inventories		1,826
Other assets		100
Right-of-use asset		847
Property, plant and equipment		887
Intangibles		2,012
Operating lease liability		(847	)
Accounts payable and accrued liabilities		(633	)
Acquisition price	$	5,531

The results of operations for PTI, NEC and ESS are included in the Company’s condensed consolidated financial statements from the respective dates of acquisition. The following table sets forth certain operating information on a pro forma basis as though each acquisition had occurred as of the beginning of the comparable prior period (that is, March 1, 2024). The following pro forma information includes the estimated impact of adjustments such as amortization of intangible assets, depreciation expense and interest expense and related tax effects (in thousands, except per share amounts).

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED AUGUST 31, 2025
(unaudited)


	Three months ended				Six months ended
	August 31, 2025		August 31, 2024		August 31, 2025		August 31, 2024
Pro forma net sales	$	98,676	$	106,054	$	197,958	$	204,232
Pro forma net earnings		13,155		10,974		23,218		21,260
Pro forma earnings per share - diluted	$	0.51	$	0.42	$	0.90	$	0.81

The pro forma results are not necessarily indicative of what would have occurred if the acquisitions had been in effect for the full duration of the comparative periods presented.

8. Leases

The Company leases certain of its facilities and equipment under operating leases, which are recorded as right-of-use assets and lease liabilities. The Company’s leases generally have terms of 1 – 5 years, with certain leases including renewal options to extend the leases for additional periods at the Company’s discretion. At lease inception, all renewal options reasonably certain to be exercised are considered when determining the lease term. The Company currently does not have leases that include options to purchase or provisions that would automatically transfer ownership of the leased property to the Company.

Operating lease expense is recognized on a straight-line basis over the lease term, and variable lease payments are expensed as incurred. The Company had no material variable lease costs for the three and six months ended August 31, 2025 and 2024.

The Company determines whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and directs the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from the use of the property, plant, and equipment.

Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates based on the information available at lease commencement date, as rates are not implicitly stated in most leases.

Components of lease expense for the three and six months ended August 31, 2025 and 2024 were as follows (in thousands):


	Three months ended				Six months ended
	August 31, 2025		August 31, 2024		August 31, 2025		August 31, 2024
Operating lease cost	$	1,434	$	1,389	$	2,865	$	2,736

Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,446	$	1,410	$	2,892	$	2,779

Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	1,793	$	847	$	4,092	$	1,495


Weighted Average Remaining Lease Terms
Operating leases	3.2 Years	2.5 Years

Weighted Average Discount Rate
Operating leases	4.20%	4.27%

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED AUGUST 31, 2025
(unaudited)

Future minimum lease commitments under non-cancelable operating leases for each of the fiscal years ending are as follows (in thousands):


	Operating
	Lease
	Commitments
2026 (remaining 6 months)	$	2,170
2027		4,157
2028		2,610
2029		1,631
2030		718
Thereafter		392
Total future minimum lease payments	$	11,678
Less imputed interest		698
Present value of lease liabilities	$	10,980

9. Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of net assets of acquired businesses and is not amortized. Goodwill and other intangible assets are tested for impairment at a reporting unit level. The annual impairment test of goodwill and intangible assets is performed as of December 1 of each fiscal year.

The Company uses qualitative factors to determine whether it is more likely than not (likelihood of more than 50%) that the fair value of a reporting unit exceeds its carrying amount, including goodwill. Some of the qualitative factors considered in applying this test include consideration of macroeconomic conditions, industry and market conditions, cost factors affecting the business, overall financial performance of the business, and performance of the share price of the Company.

If qualitative factors are not deemed sufficient to conclude that the fair value of the reporting unit more likely than not exceeds its carrying value, then a one-step approach is applied in making an evaluation. The evaluation utilizes multiple valuation methodologies, including a market approach (market price multiples of comparable companies) and an income approach (discounted cash flow analysis). The computations require management to make significant estimates and assumptions, including, among other things, selection of comparable publicly traded companies, the discount rate applied to future earnings reflecting a weighted average cost of capital, and earnings growth assumptions. A discounted cash flow analysis requires management to make various assumptions about future sales, operating margins, capital expenditures, working capital, and growth rates. If the evaluation results in the fair value of the goodwill for the reporting unit being lower than the carrying value, an impairment charge is recorded. A goodwill impairment charge was not required as of August 31, 2025.

Definite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired.

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED AUGUST 31, 2025
(unaudited)

The carrying amount and accumulated amortization of the Company’s intangible assets at each balance sheet date are as follows (in thousands):


	Weighted
	Average
	Remaining		Gross
	Life		Carrying		Accumulated
As of August 31, 2025	(in years)		Amount		Amortization		Net
Definite-lived intangible assets
Trademarks and trade names		6.2	$	32,411	$	17,549	$	14,862
Customer lists		7.5		93,133		67,791		25,342
Non-compete		0.9		280		234		46
Technology		4.3		650		255		395
Total		7.0	$	126,474	$	85,829	$	40,645


As of February 28, 2025
Definite-lived intangible assets
Trademarks and trade names		6.9	$	30,911	$	16,544	$	14,367
Customer lists		4.8		83,303		64,890		18,413
Non-compete		0.8		261		212		49
Technology		4.8		650		209		441
Total		5.7	$	115,125	$	81,855	$	33,270

Aggregate amortization expense was $2.0 and $4.0 million for the three and six months ended August 31, 2025 and $1.9 million and $3.9 million for the three and six months ended August 31, 2024.

The Company’s estimated amortization expense for the current and next five fiscal years is as follows (in thousands):


2026 (remaining)	$	4,697
2027	$	7,759
2028	$	6,245
2029	$	5,609
2030	$	4,394
2031	$	3,731

Changes in the net carrying amount of goodwill as of the dates indicated are as follows (in thousands):


Balance as of March 1, 2024	$	94,349
Goodwill acquired		—
Balance as of February 28, 2025		94,349
Goodwill acquired		12,557
Balance as of August 31, 2025	$	106,906

During fiscal year 2026, $12.6 million was added to goodwill related to the acquisition of NEC and ESS.

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED AUGUST 31, 2025
(unaudited)

10. Accrued Expenses

The following table summarizes the components of accrued expenses as of the dates indicated (in thousands):


	August 31,		February 28,
	2025		2025
Employee compensation and benefits	$	12,372	$	11,505
Taxes other than income		2,430		1,440
Accrued legal and professional fees		483		521
Accrued utilities		118		108
Income taxes payable		586		567
Other accrued expenses		1,273		1,198
	$	17,262	$	15,339

11. Credit Facility

As of August 31, 2025, the Company had $0.2 million outstanding under a standby letters of credit arrangement secured by a cash collateral bank account.

12. Shareholders’ Equity

The Company’s board of directors (the "Board") has authorized the repurchase of the Company’s outstanding common stock through a stock repurchase program, which authorized amount is currently up to $60.0 million in the aggregate. Under the repurchase program, purchases may be made from time to time in the open market or through privately negotiated transactions depending on market conditions, share price, trading volume and other factors. Such purchases, if any, will be made in accordance with applicable insider trading and other securities laws and regulations. These repurchases may be commenced or suspended at any time or from time to time without prior notice.

During the three months ended August 31, 2025 and 2024 the Company repurchased 196,111 and 39 shares of common stock under the program at an average price of $17.92 and $22.62, respectively. During the six-month period ended August 31, 2025 and 2024 the Company repurchased 456,671 and 91,883 shares of common stock under the program at an average price of $18.54 and $19.79, respectively. Since the program’s inception in October 2008, there have been 2,791,015 common shares repurchased at an average price of $16.81 per share. As of August 31, 2025, $13.1 million remained available to repurchase shares of the Company’s common stock under the program.

13. Stock Based Compensation

The Company grants stock options, restricted stock and restricted stock units (“RSUs”) to key executives and managerial employees and non-employee directors. At August 31, 2025, the Company had one stock option plan, the 2021 Long-Term Incentive Plan of Ennis, Inc., adopted by the Board April 16, 2021 and affirmed by vote of the shareholders July 15, 2021 (the “Plan”). The Plan authorized 1,033,648 shares of common stock for awards and expires June 30, 2031 and all unissued stock will expire on that date. As of August 31, 2025, the Company has 259,560 shares of unissued common stock reserved under the Plan for issuance. The exercise price of each stock option granted under the Plan equals a referenced price of the Company’s common stock as reported on the New York Stock Exchange on the date of grant, and an option’s maximum term is ten years. Stock options and restricted stock may be granted at different times during the year and vest ratably over various periods, from grant date up to five years. The Company uses treasury stock to satisfy option exercises and restricted stock awards.

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED AUGUST 31, 2025
(unaudited)

The Company recognizes compensation expense for stock options and restricted stock grants based on the grant date fair value of the award for stock options, restricted stock grants and RSUs on a straight-line basis over the requisite service period. The estimated number of shares to be achieved for performance based RSUs is updated each reporting period. For the three months ended August 31, 2025 and August 31, 2024, the Company included in selling, general and administrative expenses, compensation expense related to stock-based compensation of $0.8 million and $0.7 million, respectively. For the six months ended August 31, 2025 and August 31, 2024, the Company included in selling, general and administrative expenses, compensation expense related to stock-based compensation of $1.3 million and $2.5 million, respectively.

Stock Options

The Company had the following stock option activity for the six months ended August 31, 2025.

          
         Weighted

          
         Weighted

         Average

         Aggregate

          
         Number

         Average

         Remaining

         Intrinsic

          
         of Shares

         Exercise

         Contractual

         Value(a)

ENNIS, INC. 10-Q