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, 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: 001-38214

HAMILTON BEACH BRANDS HOLDING COMPANY

(Exact name of registrant as specified in its charter)

Delaware

31-1236686

(State or other jurisdiction of incorporation or organization)

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

4421 WATERFRONT DR.

GLEN ALLEN

23060

(Address of principal executive offices)

(Zip code)

(804)

273-9777

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, Par Value $0.01 Per Share

HBB

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 þ No o

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 þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 þ

Number of shares of Class A Common Stock outstanding as of April 25, 2025: 10,092,978

Number of shares of Class B Common Stock outstanding as of April 25, 2025: 3,598,619

HAMILTON BEACH BRANDS HOLDING COMPANY

TABLE OF CONTENTS

Page Number

Part I.

FINANCIAL INFORMATION

Item 1

Financial Statements

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income (Loss)

Consolidated Statements of Cash Flows

Consolidated Statements of Changes in Equity

Notes to Unaudited 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

Part II.

OTHER INFORMATION

Item 1

Legal Proceedings

Item 1A

Risk Factors

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3

Defaults Upon Senior Securities

Item 4

Mine Safety Disclosures

Item 5

Other Information

Item 6

Exhibits

Signatures

Part I

FINANCIAL INFORMATION

Item 1. Financial Statements

HAMILTON BEACH BRANDS HOLDING COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	MARCH 31 2025		DECEMBER 31 2024		MARCH 31 2024
	(In thousands)
Assets
Current assets
Cash and cash equivalents	$	48,296	$	45,644	$	26,279
Trade receivables, net	82,331		117,068		89,596
Inventory	165,890		124,904		133,523

Prepaid expenses and other current assets	16,931		16,103		12,893

Total current assets	313,448		303,719		262,291
Property, plant and equipment, net	34,015		34,401		36,851
Right-of-use lease assets	37,961		36,049		37,848
Goodwill	7,099		7,099		6,253
Other intangible assets, net	2,023		2,101		2,375
Deferred income taxes	7,115		6,693		2,410
Deferred costs	2,720		16,156		14,550

Other non-current assets	13,639		8,849		6,372

Total assets	$	418,020	$	415,067	$	368,950
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	126,342	$	104,161	$	96,579


Accrued compensation	5,302		18,792		5,701
Accrued product returns	7,074		7,876		6,135
Lease liabilities	5,531		5,193		6,086
Other current liabilities	14,589		18,098		11,693

Total current liabilities	158,838		154,120		126,194
Revolving credit agreements	50,000		50,000		50,000
Lease liabilities, non-current	40,184		39,008		41,009
Other long-term liabilities	5,817		6,036		6,340

Total liabilities	254,839		249,164		223,543
Stockholders’ equity
Preferred stock, par value $0.01 per share	—		—		—
Class A Common stock	118		115		114
Class B Common stock	36		36		36
Capital in excess of par value	77,821		76,668		72,303
Treasury stock	(29,575)		(26,202)		(12,567)
Retained earnings	124,083		123,863		96,705
Accumulated other comprehensive loss	(9,302)		(8,577)		(11,184)
Total stockholders’ equity	163,181		165,903		145,407
Total liabilities and stockholders’ equity	$	418,020	$	415,067	$	368,950

See notes to unaudited consolidated financial statements.

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HAMILTON BEACH BRANDS HOLDING COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	THREE MONTHS ENDED MARCH 31
	2025		2024
	(In thousands, except per share data)
Revenue	$	133,372	$	128,277
Cost of sales	100,601		98,223
Gross profit	32,771		30,054
Selling, general and administrative expenses	30,380		30,947
Amortization of intangible assets	78		50
Operating profit (loss)	2,313		(943)
Interest (income) expense, net	(72)		156

Other (income) expense, net	(149)		173
Income (loss) before income taxes	2,534		(1,272)
Income tax expense (benefit)	729		(110)


Net income (loss)	$	1,805	$	(1,162)




Basic and diluted earnings (loss) per share	$	0.13	$	(0.08)






Basic weighted average shares outstanding	13,769		14,162
Diluted weighted average shares outstanding	13,788		14,162

See notes to unaudited consolidated financial statements.

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HAMILTON BEACH BRANDS HOLDING COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)


	THREE MONTHS ENDED MARCH 31
	2025		2024
	(In thousands)
Net income (loss)	$	1,805	$	(1,162)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	327		(1,097)

Cash flow hedging activity	(620)		37

Reclassification of hedging activities into earnings	(480)		472

Reclassification related to pension termination activity into earnings	46		—
Reclassification of pension adjustments into earnings	2		71
Total other comprehensive income (loss), net of tax	(725)		(517)
Comprehensive income (loss)	$	1,080	$	(1,679)

See notes to unaudited consolidated financial statements.

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HAMILTON BEACH BRANDS HOLDING COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	THREE MONTHS ENDED MARCH 31
	2025		2024
	(In thousands)
Operating activities
Net income (loss)	$	1,805	$	(1,162)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	1,225		1,188

Stock compensation expense	1,156		1,904


Other	(935)		1,255
Net changes in operating assets and liabilities:

Trade receivables	34,899		46,236
Inventory	(40,645)		(9,614)
Other assets	7,178		(3,074)
Accounts payable	22,031		(3,102)
Other liabilities	(20,094)		(13,930)
Net cash provided by (used for) operating activities	6,620		19,701
Investing activities
Expenditures for property, plant and equipment	(516)		(942)
Acquisition of business, net of cash acquired	—		(7,412)

Issuance of secured loan	—		(600)
Repayment of secured loan	—		2,205


Net cash provided by (used for) investing activities	(516)		(6,749)
Financing activities

Cash dividends paid	(1,585)		(1,531)
Purchase of treasury stock	(3,373)		(554)



Net cash provided by (used for) financing activities	(4,958)		(2,085)





Effect of exchange rate changes on cash, cash equivalents and restricted cash	626		(2)
Cash, cash equivalents and restricted cash
Increase (decrease) for the period	1,772		10,865

Balance at the beginning of the period	46,524		16,379
Balance at the end of the period	$	48,296	$	27,244

Reconciliation of cash, cash equivalents and restricted cash

Cash and cash equivalents	$	48,296	$	26,279
Restricted cash included in prepaid expenses and other current assets	—		51
Restricted cash included in other non-current assets	—		914

Total cash, cash equivalents and restricted cash	$	48,296	$	27,244

See notes to unaudited consolidated financial statements.

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HAMILTON BEACH BRANDS HOLDING COMPANY

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)


	Class A Common Stock		Class B Common Stock		Capital in Excess of Par Value		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	(In thousands, except per share data)
Balance, January 1, 2025	$	115	$	36	$	76,668	$	(26,202)	$	123,863	$	(8,577)	$	165,903
Net income (loss)	—		—		—		—		1,805		—		1,805
Purchase of treasury stock	—		—		—		(3,373)		—		—		(3,373)
Issuance of common stock, net of conversions	3		—		(3)		—		—		—		—
Share-based compensation expense	—		—		1,156		—		—		—		1,156
Cash dividends, $0.115 per share	—		—		—		—		(1,585)		—		(1,585)
Other comprehensive income (loss), net of tax	—		—		—		—		—		(293)		(293)
Reclassification adjustment to net income (loss)	—		—		—		—		—		(432)		(432)
Balance, March 31, 2025	$	118	$	36	$	77,821	$	(29,575)	$	124,083	$	(9,302)	$	163,181



Balance, January 1, 2024	$	112	$	36	$	70,401	$	(12,013)	$	99,398	$	(10,667)	$	147,267
Net income (loss)	—		—		—		—		(1,162)		—		(1,162)
Purchase of treasury stock	—		—		—		(554)		—		—		(554)
Issuance of common stock, net of conversions	2		—		(2)		—		—		—		—
Share-based compensation expense	—		—		1,904		—		—		—		1,904
Cash dividends, $0.11 per share	—		—		—		—		(1,531)		—		(1,531)
Other comprehensive income (loss), net of tax	—		—		—		—		—		(1,060)		(1,060)
Reclassification adjustment to net income (loss)	—		—		—		—		—		543		543
Balance, March 31, 2024	114		36		72,303		(12,567)		96,705		(11,184)		145,407

See notes to unaudited consolidated financial statements.

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HAMILTON BEACH BRANDS HOLDING COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

(Tabular amounts in thousands, except as noted and per share amounts)

NOTE 1—Basis of Presentation and Recently Issued Accounting Standards

Basis of Presentation

Throughout this Quarterly Report on Form 10-Q and the notes to unaudited consolidated financial statements, references to “Hamilton Beach Holding”, “the Company”, “we”, “us” and “our” and similar references are to Hamilton Beach Brands Holding Company and its subsidiaries on a consolidated basis unless otherwise noted or as the context otherwise requires. Hamilton Beach Brands Holding Company is a holding company and operates through its indirect, wholly owned subsidiary, Hamilton Beach Brands, Inc., a Delaware corporation (“HBB”).

We are a leading designer, marketer and distributor of a wide range of brand name small electric household and specialty housewares appliances, and commercial products for restaurants, fast food chains, bars and hotels, and a provider of connected devices and software for home healthcare management.

Our operations are managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health. During the year ended December 31, 2023, the Company had one operating and one reportable segment. During the fourth quarter of 2024, the Company added a second reportable segment; therefore, certain revenue and significant expenses for the three months ended March 31, 2024 have been recast as shown in Note 9 “Segment Information” to these unaudited consolidated financial statements.

The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the remainder of the year as our revenue typically increases during the second half of the year and peaks during the fourth quarter due to the fall holiday-selling season. Accordingly, quarter-to-quarter comparisons of our past operating results are meaningful only when comparing equivalent time periods, if at all.

We maintain a $125.0 million senior secured floating-rate revolving credit facility (the “HBB Facility”) that expires on December 13, 2029, therefore all borrowings are classified as long term debt as of March 31, 2025. We believe funds available from cash on hand, the HBB Facility and operating cash flows will provide sufficient liquidity to meet our operating needs and commitments arising during the next twelve months.

Accounting Standards Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances income tax disclosure requirements primarily involving more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively but retrospective application is permitted. The Company is currently in the process of evaluating the impact of the new requirements but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, “Income Statement — Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40),” which requires additional information to be disclosed about specific expense categories in the notes to financial statements at interim and annual reporting periods. The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is currently in the process of evaluating the impact of the new requirements.

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U.S. Pension Plan Termination

During 2022, the Board approved the termination of our U.S. Pension Plan with an effective date of September 30, 2022. The Company substantially completed the termination in 2024.

During the first quarter of 2025, the Company transferred $13.4 million of surplus assets to a qualified replacement plan which will be used to fund qualifying employee retirement benefits in the future. During the three months ended March 31, 2025, $3.5 million was used to fund employee retirement benefits. As of March 31, 2025, the Company had $4.3 million included in prepaid expenses and other current assets (current portion) and $5.6 million included in other non-current assets.

Accounts Payable - Supplier Finance Program

The Company has an agreement with a third-party administrator to provide an accounts payable tracking system which facilitates a participating supplier’s ability to monitor and voluntarily elect to sell payment obligations owed by the Company to the designated third-party financial institution. Participating suppliers can sell one or more of the Company’s payment obligations at their sole discretion. The Company has no economic interest in a supplier’s decision to sell one or more of its payment obligations. The Company’s rights and obligations with respect to such payment obligations, including amounts due and scheduled payment terms, are not impacted by suppliers’ decisions to sell amounts under these arrangements.

As of March 31, 2025, December 31, 2024 and March 31, 2024, the Company had $66.9 million, $56.9 million and $54.8 million, respectively, in outstanding payment obligations to the third-party financial institution that are presented in Accounts payable on the Consolidated Balance Sheets. There is no requirement to provide assets pledged as security or other forms of guarantees under the agreement. The Company pays the third-party financial institution based upon the original payment terms negotiated with participating suppliers. The payment of these obligations by the Company is included in cash provided by operating activities in the Consolidated Statements of Cash Flows.

The agreement limits payment obligations owed by the Company but sold by participating suppliers to $65.0 million. Of the amounts owed by the Company referenced above that are presented in Accounts payable, participating suppliers have sold $57.1 million, $48.2 million and $46.1 million, as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

NOTE 2—Transfer of Financial Assets

The Company has an arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis. Under the terms of the agreement, the Company receives cash proceeds and retains no rights or interest and has no obligations with respect to the sold receivables. These transactions, which are accounted for as sold receivables, result in a reduction in trade receivables because the agreement transfers effective control over and risk related to the receivables to the buyer. Under this arrangement, the Company derecognized $32.4 million and $30.1 million of trade receivables during the three months ended March 31, 2025 and March 31, 2024, respectively, and $149.7 million during the year ended December 31, 2024. The loss incurred on sold receivables in the consolidated results of operations for the three months ended March 31, 2025 and 2024 was not material. The Company does not carry any servicing assets or liabilities. Cash proceeds from this arrangement are reflected as operating activities in the Consolidated Statements of Cash Flows.

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NOTE 3—Fair Value Disclosure

The following table presents the Company’s assets and liabilities accounted for at fair value on a recurring basis:


Description	Balance Sheet Location	MARCH 31 2025		DECEMBER 31 2024		MARCH 31 2024
Assets:
Interest rate swap agreements
Current	Prepaid expenses and other current assets	$	979	$	1,144	$	1,120
Long-term	Other non-current assets	2,150		2,808		3,579
Foreign currency exchange contracts
Current	Prepaid expenses and other current assets	133		789		—
		$	3,262	$	4,741	$	4,699
Liabilities:



Foreign currency exchange contracts
Current	Other current liabilities	41		—		607
		$	41	$	—	$	607

The Company measures its derivatives at fair value using significant observable inputs, which is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates the Secured Overnight Financing Rate (SOFR) swap curve, foreign currency spot rates and foreign currency forward rates to value its derivatives, including its interest rate swap agreements and foreign currency exchange contracts. The Company also incorporates the effect of HBB and counterparty credit risk into the valuation.

Other Fair Value Measurement Disclosures

The carrying amounts of cash and cash equivalents, trade receivables and accounts payable approximate fair value due to the short-term maturities of these instruments, with the exception of U.S. Treasury bills classified as cash and cash equivalents which are measured at amortized cost.

The $125.0 million fair value of the HBB Facility, including book overdrafts, which approximate book value, was determined using current rates offered for similar obligations taking into account the Company’s credit risk, which is Level 2 as defined in the fair value hierarchy.

There were no transfers into or out of Levels 1, 2 or 3 during the three months ended March 31, 2025.

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NOTE 4—Stockholders’ Equity

Capital Stock

The following table sets forth the Company’s authorized capital stock information:


	MARCH 31 2025	DECEMBER 31 2024	MARCH 31 2024

Preferred stock, par value $0.01 per share
Preferred stock authorized	5,000	5,000	5,000
Preferred stock outstanding	—	—	—
Class A Common stock, par value $0.01 per share
Class A Common authorized	70,000	70,000	70,000
Class A Common issued (1)(2)	11,797	11,476	11,427
Treasury Stock (3)	1,726	1,545	907
Class B Common stock, par value $0.01 per share, convertible into Class A Common stock on a one-for-one basis
Class B Common authorized	30,000	30,000	30,000
Class B Common issued (1)	3,601	3,603	3,612

(1) Class B Common converted to Class A Common were 2 and 4 shares during the three months ended March 31, 2025 and March 31, 2024, respectively.

(2) The Company issued Class A Common of 319 and 262 shares during the three months ended March 31, 2025 and March 31, 2024, respectively.

(3) On February 21, 2025 and March 5, 2024, a total of 39 and 30 mandatory cashless-exercise-award shares of Class A Common, respectively, were surrendered to the Company by the participants of our Executive Long-Term Equity Incentive Compensation Plan (the “Incentive Plan”) in order to satisfy the participants’ tax withholding obligations with respect to shares of Class A Common awarded under the Incentive Plan.

Stock Repurchase Program: In November 2023, the Company’s Board approved a stock repurchase program for the purchase of up to $25 million of the Company’s Class A Common outstanding starting January 1, 2024 and ending December 31, 2025. During the three months ended March 31, 2025, the Company repurchased 141,435 shares at prevailing market prices for an aggregate purchase price of $2.7 million. There were no share repurchases during the three months ended March 31, 2024. During the year ended December 31, 2024, the Company repurchased 638,381 shares for an aggregate purchase price of $13.5 million (excluding the 1% excise tax as a result of the Inflation Reduction Act of 2022). As of March 31, 2025, the Company had $8.8 million remaining authorized for repurchase.

Additionally, during the three months ended March 31, 2025 and March 31, 2024, the Company withheld shares for tax payments due upon issuance of stock to employees under the Incentive Plan. During the three months ended March 31, 2025 and March 31, 2024, the Company repurchased 39,121 and 30,404 shares, respectively, for an aggregate purchase price of $0.7 million and $0.6 million, respectively, pursuant to the Incentive Plan.

The total combined share repurchases from the stock repurchase program and the Incentive Plan during the three months ended March 31, 2025 and March 31, 2024 was 180,556 and 30,404 shares, respectively, for an aggregate purchase price of $3.4 million and $0.6 million, respectively.

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Accumulated Other Comprehensive Loss: The following table summarizes changes in accumulated other comprehensive loss by component and related tax effects for periods shown:


	Foreign Currency		Deferred Gain (Loss) on Cash Flow Hedging		Pension Plan Adjustment		Total

Balance, January 1, 2025	$	(12,279)	$	3,572	$	130	$	(8,577)
Other comprehensive income (loss)	327		(861)		—		(534)
Reclassification adjustment to net income (loss)	—		(654)		64		(590)
Tax effects	—		415		(16)		399
Balance, March 31, 2025	$	(11,952)	$	2,472	$	178	$	(9,302)









Balance, January 1, 2024	$	(6,412)	$	2,424	$	(6,679)	$	(10,667)
Other comprehensive income (loss)	(1,097)		29		—		(1,068)
Reclassification adjustment to net income (loss)	—		647		94		741
Tax effects	—		(167)		(23)		(190)
Balance, March 31, 2024	$	(7,509)	$	2,933	$	(6,608)	$	(11,184)

NOTE 5—Revenue

Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services, which includes an estimate for variable consideration.

The Company’s warranty program to the consumer consists generally of an assurance-type limited warranty lasting for varying periods of up to ten years for electric appliances, with the majority of products having a warranty of one to three years. There is no guarantee to the consumer as the Company may repair or replace, in its discretion, products returned under warranty. Accordingly, the Company determined that no separate performance obligation exists.

Most of the Company’s products are not sold with a general right of return. Subject to certain terms and conditions, however, the Company will agree to accept a portion of products sold that, based on historical experience, are estimated to be returned for reasons such as product failure and excess inventory stocked by the customer. Product returns, customer programs and incentive offerings, including special pricing agreements, price competition, promotions and other volume-based incentives are accounted for as variable consideration.

A description of revenue sources and performance obligations for the Company are as follows:

Consumer and Commercial product revenue

Transactions with both consumer and commercial customers generally originate upon the receipt of a purchase order from a customer, which in some cases are governed by master sales agreements, specifying product(s) that the customer desires. Contracts for product revenue have an original duration of one year or less, and payment terms are generally standard and based on customer creditworthiness. Revenue from product sales is recognized at the point in time when control transfers to the customer, which is either when a product is shipped from a Company facility, or delivered to customers, depending on the shipping terms. The amount of revenue recognized varies primarily with price concessions and changes in returns. The Company offers price concessions to its customers for incentive offerings, special pricing agreements, price competition, promotions or other volume-based arrangements. The Company evaluated such agreements with its customers and determined returns and price concessions should be accounted for as variable consideration.

Consumer product revenue consists of sales of small electric household and specialty housewares appliances to traditional brick and mortar and ecommerce retailers, distributors and directly to the end consumer. A majority of this revenue is in North America.

Commercial product revenue consists of sales of products for restaurants, fast-food chains, bars and hotels. Approximately one-half of the Company’s commercial sales is in the U.S. and the remaining is in markets across the globe.

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License revenue

From time to time, the Company enters into exclusive and non-exclusive licensing agreements which grant the right to use certain of the Company’s intellectual property (“IP”) in connection with designing, manufacturing, distributing, advertising, promoting and selling the licensees’ products during the term of the agreement. The IP that is licensed generally consists of trademarks, trade names, patents, trade dress, logos and/or products (the “Licensed IP”). In exchange for granting the right to use the Licensed IP, the Company receives a royalty payment, which is a function of (1) the total net sales of products that use the Licensed IP and (2) the royalty percentage that is stated in the licensing agreement. The Company recognizes revenue at the later of when the subsequent sales occur or when the performance obligation is satisfied over time.

Additionally, the Company enters into agreements which grant the right to use software for healthcare management. The Company receives a license payment which is recognized when the performance obligation is satisfied over time or as usage occurs based on the contract with the customer.

Lease revenue

The Company leases connected devices to specialty pharmacy networks and pharmaceutical companies and is accounted for under Accounting Standards Codification 842, Leases as operating leases.

The following table sets forth Company’s revenue on a disaggregated basis for the three months ended March 31:


	THREE MONTHS ENDED MARCH 31
	2025		2024
Type of good or service:
Consumer products	$	117,335	$	112,750
Commercial products	12,292		13,453
Licensing	2,560		1,615
Leasing	1,185		459
Total revenues	$	133,372	$	128,277

NOTE 6—Contingencies

The Company is involved in various legal and regulatory proceedings and claims that have arisen in the ordinary course of business, including product liability, patent infringement, environmental and other claims. Although it is difficult to predict the ultimate outcome of these proceedings and claims, the Company believes the ultimate disposition of these matters will not have a material adverse effect on the financial condition, results of operation or cash flows of the Company. Any costs that the Company estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount of such costs can be reasonably estimated. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss.

Environmental matters

The Company is investigating or remediating historical environmental contamination at some current and former sites operated by the Company or by businesses it acquired. Based on the current stage of the investigation or remediation at each known site, the Company estimates the total investigation and remediation costs and the period of assessment and remediation activity required for each site. The estimate of future investigation and remediation costs is primarily based on variables associated with site clean-up, including, but not limited to, physical characteristics of the site, the nature and extent of the contamination and applicable regulatory programs and remediation standards.

As of March 31, 2025, December 31, 2024 and March 31, 2024, the Company had accrued undiscounted obligations of $3.4 million, $3.9 million and $3.3 million, respectively, for environmental investigation and remediation activities. The Company estimates that it is reasonably possible that it may incur additional expenses in the range of zero to $0.9 million related to the environmental investigation and remediation at these sites. As of March 31, 2025, the Company has a $1.0 million asset associated with the reimbursement of costs associated with two sites.

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NOTE 7—Income Taxes

The Company’s provision for income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period.

The effective tax rate was 28.8% and 8.6% for the three months ended March 31, 2025 and 2024, respectively. The higher effective tax rate in the first quarter of 2025 reflects the shift from a loss in the first quarter of 2024 to profit in the first quarter of 2025, coupled with the exclusion of the foreign losses of HealthBeacon in both periods requiring a full valuation allowance for which no benefit can be recognized. Excluding these impacts, the Company’s effective tax rate remains consistent.

NOTE 8—Acquisitions

On February 2, 2024, we completed the acquisition of HealthBeacon PLC (“HealthBeacon”), a medical technology firm and strategic partner of the Company, for €6.9 million (approximately $7.5 million). The transaction was funded with cash on hand.

The acquisition of HealthBeacon was accounted for as a business combination using the acquisition method of accounting. The results of operations for HealthBeacon are included in the accompanying Consolidated Statements of Operations for the three months ended March 31, 2025 and in the comparable period from the acquisition date until March 31, 2024, in which HealthBeacon had $1.5 million and $0.6 million in revenue, respectively, and $0.7 million and $1.1 million in operating loss, respectively. Pro forma financial information has not been presented, as revenue and expenses related to the acquisition do not have a material impact on the Company’s unaudited consolidated financial statements.

The purchase price allocation for HealthBeacon is final as of December 31, 2024.

During the three months ended March 31, 2024, we incurred transaction costs of approximately $1.0 million, which are included in Selling, general and administrative expenses. There were no transactions costs during the three months ended March 31, 2025.

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The following table presents the final value of assets acquired and liabilities assumed:


	Fair Values as of February 2, 2024
Cash and cash equivalents	$	147


Current assets	1,452
Property, plant and equipment, net	6,634

Goodwill	847
Other intangible assets, net	1,111

Total assets acquired	10,191
Liabilities, current	2,016
Liabilities, non-current	616
Total liabilities acquired	2,632
Purchase Price	$	7,559

NOTE 9—Segment Information

The Company’s operations are managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health. These segments are organized principally by product and service category. The Company’s reportable segments are determined based on (1) financial information reviewed by the chief operating decision maker “CODM”, (2) operational structure of the Company which is designed and managed to share resources across the entire suite of products offered by the business, and (3) the basis upon which the CODM makes resource allocation decisions. The CODM for both segments is the Director, President and Chief Executive Officer of the Company. The CODM utilizes the segment operating profit (loss) to assess profitability and performance of actual results compared to forecasts.

The types of products and services from which each reportable segment derives its revenues are as follows:

Home and Commercial Products

Our Home and Commercial Products segment includes consumer product revenue, primarily concentrated in North America, consisting of sales of small electric household and specialty housewares appliances to traditional brick and mortar and ecommerce retailers, distributors and directly to the end consumer. Also included in this segment is commercial product revenue consisting of sales of products for restaurants, fast-food chains, bars and hotels. Approximately one-half of the Company’s commercial sales is in the U.S. and the remaining is in markets across the globe.

Health

Our Health segment includes lease revenue in the U.S. and globally associated with leases of connected devices to specialty pharmacy networks and pharmaceutical companies, as well as licensing revenue associated with agreements which grant customers the right to use software for healthcare management.

The table below presents the revenues and significant expenses of the two reportable segments along with a reconciliation of segment profit (loss) to consolidated income (loss) before income taxes. During the fourth quarter of 2024, the Company added a second reportable segment; therefore, the revenue and significant expenses for the three months ended March 31, 2024 shown below have been recast. Total assets by segment are not reported as the CODM does not regularly review asset information by segment.

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	THREE MONTHS ENDED MARCH 31
	2025						2024
	Home and Commercial Products		Health		Total		Home and Commercial Products		Health (1)		Total
Revenue	$	131,828	$	1,544	$	133,372	$	127,697	$	580	$	128,277








Less:
Cost of sales	100,226		375		100,601		98,032		191		98,223
Selling, general and administrative expenses	28,367		2,013		30,380		29,283		1,664		30,947
Amortization of intangible assets	50		28		78		50		—		50
Segment profit (loss)	$	3,185	$	(872)	$	2,313	$	332	$	(1,275)	$	(943)

Reconciliation of segment profit or (loss)
Interest (income) expense, net					(72)						156

Other (income) expense, net					(149)						173

Income (loss) before income taxes					$	2,534					$	(1,272)

(1) As noted in Note 8 – Acquisitions, the Company completed the acquisition of HealthBeacon on February 2, 2024. Therefore, the 2024 results for the Health segment represent activity from the date of acquisition through March 31, 2024.

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

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

Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon management’s current expectations and are subject to various uncertainties and changes in circumstances. Important factors that could cause actual results to differ materially from those described in these forward-looking statements are set forth below under the heading “Forward-Looking Statements.”

Our operations are managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health.

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

For a summary of the Company’s critical accounting policies, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as there have been no material changes from those disclosed in the Annual Report.

RESULTS OF OPERATIONS

The market for small electric household and specialty housewares appliances is fairly steady throughout the year, however the Company’s revenue typically increases during the second half of the year and peaks during the fourth quarter due to the fall holiday-selling season.

First Quarter of 2025 Compared with First Quarter of 2024


	THREE MONTHS ENDED MARCH 31
									Increase / (Decrease)
	2025		% of Revenue		2024		% of Revenue		$ Change		% Change
Revenue	$	133,372	100.0	%	$	128,277	100.0	%	$	5,095	4.0	%
Cost of sales	100,601		75.4	%	98,223		76.6	%	2,378		2.4	%
Gross profit	32,771		24.6	%	30,054		23.4	%	2,717		9.0	%
Selling, general and administrative expenses	30,380		22.8	%	30,947		24.1	%	(567)		(1.8)	%
Amortization of intangible assets	78		0.1	%	50		—	%	28		56.0	%
Operating profit (loss)	2,313		1.7	%	(943)		(0.7)	%	3,256		n/m
Interest (income) expense, net	(72)		(0.1)	%	156		0.1	%	(228)		n/m

Other (income) expense, net	(149)		(0.1)	%	173		0.1	%	(322)		n/m
Income (loss) before income taxes	2,534		1.9	%	(1,272)		(1.0)	%	3,806		n/m
Income tax expense (benefit)	729		0.5	%	(110)		(0.1)	%	839		n/m
Net income (loss)	$	1,805	1.4	%	$	(1,162)	(0.9)	%	$	2,967	n/m
n/m = not meaningful


Effective income tax rate			28.8		%										8.6		%

The following table identifies the components of the change in revenue:


	Revenue
2024	$	128,277
Increase (decrease) from:
Unit volume and product mix	9,284
Average sales price	(1,841)
Foreign currency	(2,348)
2025	$	133,372

Revenue - Revenue increased $5.1 million, or 4.0%, to $133.4 million compared to $128.3 million in the prior year. The revenue growth reflected favorable product mix and increased volume, partially offset by pricing and foreign currency. In the Company’s North America Consumer markets, revenue increased driven by growth in the U.S. market. In the Company’s Global Commercial market, revenue decreased slightly due to softness in international markets. HealthBeacon contributed $1.5 million in revenue for the three months ended March 31, 2025.

Gross profit - As a percentage of revenue, gross profit margin increased to 24.6% compared to 23.4% in the prior year primarily due to favorable product mix, including the addition of HealthBeacon which operates at a significantly higher gross margin.

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Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses decreased by $0.6 million compared to the first quarter of 2024. The decrease was primarily driven by HealthBeacon acquisition expenses that did not recur in 2025.

Interest (income) expense, net - The Company had net interest income of $0.1 million compared to net interest expense of $0.2 million in the prior year, primarily due to investment of increased cash on hand in the first quarter of 2025.

Other (income) expense, net - Other (income) expense, net includes currency gains of $0.3 million in the current year compared to currency losses of $0.1 million in the prior year.

Income tax expense (benefit) - The effective tax rate was 28.8% and 8.6% for three months ended March 31, 2025 and 2024, respectively. The higher effective tax rate in the first quarter of 2025 reflects the shift from a loss in the first quarter of 2024 to profit in the first quarter of 2025, coupled with the exclusion of the foreign losses of HealthBeacon in both periods requiring a full valuation allowance for which no benefit can be recognized. Excluding these impacts, the Company’s effective tax rate remains consistent.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Our cash flows are provided by dividends paid or distributions made by HBB. The only material assets held by us are the investments in our consolidated subsidiary. As a result, certain statutory limitations or regulatory or financing agreements could affect the levels of distributions allowed to be made by our subsidiary. We have not guaranteed any of the obligations of HBB.

Our principal sources of cash to fund liquidity needs are: (1) cash generated from operations and (2) borrowings available under the HBB Facility. Our primary use of funds consists of working capital requirements, operating expenses, payment of dividends, repurchase of shares, capital expenditures and payments of principal and interest on debt.

The HBB Facility expires on December 13, 2029. We believe funds available from cash on hand, the HBB Facility and operating cash flows will provide sufficient liquidity to meet our operating needs and commitments arising during the next twelve months.

The following table presents selected cash flow information:


	THREE MONTHS ENDED MARCH 31
	2025		2024
Net cash provided by (used for) operating activities	$	6,620	$	19,701
Net cash provided by (used for) investing activities	$	(516)	$	(6,749)
Net cash provided by (used for) financing activities	$	(4,958)	$	(2,085)

Operating activities - Net cash provided by operating activities was $6.6 million, compared to $19.7 million in the prior year. Net working capital provided cash of $16.3 million in 2025 compared to cash provided of $33.5 million in 2024. Cash provided by trade receivables decreased to $34.9 million in 2025 from $46.2 million in the prior year. The decrease is primarily related to improvements in trade receivable collections that benefited the prior year. Net inventory and accounts payable represented a use of cash of $18.6 million in 2025, up from $12.7 million in the prior year, driven by a material level of inventory pulled forward in the current period ahead of uncertainty related to tariff impacts.

Investing activities - Net cash used for investing activities in 2025 decreased $6.2 million compared to 2024 related primarily to the 2024 acquisition of HealthBeacon partially offset by the extinguishment of our secured loan to HealthBeacon in the first quarter of 2024, neither of which recurred in the first quarter of 2025.

Financing activities - Net cash used for financing activities was $5.0 million in 2025 compared to net cash used for financing activities of $2.1 million in 2024. The change is due to increased purchases of treasury stock in the first quarter of 2025.

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Capital Resources

HBB does not expect to make voluntary repayments within the next twelve months under the HBB Facility as the rate of return to invest excess cash exceeds the average interest rate of the HBB Facility. A material decrease in interest rates could cause HBB to re-evaluate. The obligations under the HBB Facility are secured by all of HBB’s U.S. assets. As of March 31, 2025, the borrowing base under the HBB Facility was $122.6 million and borrowings outstanding were $50.0 million. As of March 31, 2025, the excess availability under the HBB Facility was $72.6 million.

The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables and inventory of HBB. As of March 31, 2025, interest on outstanding loans under the HBB Facility accrues at a per annum rate equal to, at HBB’s option, either Term Secured Overnight Financing Rate (SOFR) (as defined in the HBB Facility) plus 1.65% or the Base Rate (as defined in the HBB Facility) plus 0.00%. As of March 31, 2025, the HBB Facility requires a fee of 0.20% per annum on the unused commitment thereunder. The weighted average interest rate applicable to the HBB Facility for the three months ended March 31, 2025 was 3.23% (after giving effect to the interest rate swap agreements described below).

To reduce the exposure to changes in the market rate of interest, we have entered into interest rate swap agreements for a portion of the HBB Facility. Terms of the interest rate swap agreements require us to receive a variable interest rate and pay a fixed interest rate. We have interest rate swaps with notional values totaling $50.0 million as of March 31, 2025 at an average fixed interest rate of 1.59%.

The HBB Facility contains customary representations and warranties, events of default and covenants, including, among other things, covenants applicable to HBB and its subsidiaries limiting indebtedness, liens, investments, dispositions and restricted payments. Additionally, if Excess Availability (as defined in the HBB Facility) is less than $15.0 million at any time, the HBB Facility will require that HBB maintain a minimum Fixed Charge Coverage Ratio (as defined in the HBB Facility) of 1.00 to 1.00 until Excess Availability is greater than or equal to $15.0 million for 30 consecutive days. As of March 31, 2025, we were in compliance with all applicable financial covenants in the HBB Facility.

The Company has an arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis. See Note 2 of the unaudited consolidated financial statements.

Contractual Obligations, Contingent Liabilities and Commitments

For a summary of the Company’s contractual obligations, contingent liabilities and commitments, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Contractual Obligations, Contingent Liabilities and Commitments” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as there have been no material changes from those disclosed in the Annual Report.

Off Balance Sheet Arrangements

For a summary of the Company’s off balance sheet arrangements, refer to “Part II - Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Off Balance Sheet Arrangements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as there have been no material changes from those disclosed in the Annual Report.

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FORWARD-LOOKING STATEMENTS

The statements contained in this Form 10-Q that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Such risks and uncertainties include, without limitation: (1) uncertain or unfavorable global economic conditions and impacts from tariffs, inflation, rising interest rates, recessions or economic slowdowns; (2) changes in costs, including transportation costs and tariffs, of sourced products; (3) the Company’s ability to source and ship products to meet anticipated demand; (4) changes in or unavailability of quality or cost effective suppliers; (5) the Company’s ability to successfully manage constraints throughout the global transportation supply chain; (6) delays in delivery of sourced products; (7) changes in the sales prices, product mix or levels of consumer purchases of small electric and specialty housewares appliances; (8) changes in consumer retail and credit markets, including the increasing volume of transactions made through third-party internet sellers; (9) bankruptcy of or loss of major retail customers or suppliers; (10) exchange rate fluctuations, changes in the import tariffs and monetary policies and other changes in the regulatory climate in the countries in which the Company operates or buys and/or sells products; (11) the impact of tariffs on customer purchasing patterns; (12) customer acceptance of changes in costs of or delays in the development of new products; (13) product liability, regulatory actions or other litigation, warranty claims or returns of products; (14) increased competition, including consolidation within the industry; (15) changes in customers’ inventory management strategies; (16) shifts in consumer shopping patterns, gasoline prices, weather conditions, the level of consumer confidence and disposable income as a result of economic conditions, unemployment rates or other events or conditions that may adversely affect the level of customer purchases of the Company’s products; (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation; (18) the Company’s ability to identify, acquire or develop, and successfully integrate, new businesses or new product lines; and (19) other risk factors, including those described in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2024. Furthermore, the future impact of unfavorable economic conditions, including inflation, changing interest rates, availability of capital markets and consumer spending rates remains uncertain. In uncertain economic environments, we cannot predict whether or when such circumstances may improve or worsen, or what impact, if any, such circumstances could have on our business, results of operations, cash flows and financial position.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

INTEREST RATE RISK

We enter into certain financing arrangements that require interest payments based on floating interest rates. As such, our financial results are subject to changes in the market rate of interest. There is an inherent rollover risk for borrowings as they mature and are renewed at current market rates. The extent of this risk is not quantifiable or predictable because of the variability of future interest rates and business financing requirements. To reduce the exposure to changes in the market rate of interest, we have entered into interest rate swap agreements for a portion of our floating rate financing arrangements. We do not enter into interest rate swap agreements for trading purposes. Terms of the interest rate swap agreements require us to receive a variable interest rate and pay a fixed interest rate.

For the purpose of risk analysis, we use sensitivity analysis to measure the potential loss in fair value of financial instruments sensitive to changes in interest rates. We assume that a loss in fair value is an increase in our receivables. The fair value of our interest rate swap agreements was an asset of $3.1 million as of March 31, 2025. A hypothetical 10% relative decrease in interest rates would cause a decrease of $0.1 million in the fair value of interest rate swap agreements. Additionally, a hypothetical 10% relative increase in interest rates would cause an increase of $0.1 million in the fair value of interest rate swap agreements. Neither would have a material impact to the Company’s interest income, net of $0.1 million for the three months ended March 31, 2025.

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FOREIGN CURRENCY EXCHANGE RATE RISK

We operate internationally through our foreign operating subsidiaries and enter into transactions denominated in foreign currencies, principally the Canadian dollar, the Mexican peso and, to a lesser extent, the Chinese yuan and the European Union euro. As such, our financial results are subject to the variability that arises from exchange rate movements. The fluctuation in the value of the U.S. dollar against other currencies affects the reported amounts of revenues, expenses, assets and liabilities. The potential impact of currency fluctuation increases as international expansion increases.

We use forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies and not for trading purposes. These contracts generally mature within twelve months and require us to buy or sell the functional currency in which the applicable subsidiary operates and buy or sell U.S. dollars at rates agreed to at the inception of the contracts.

For the purpose of risk analysis, we use sensitivity analysis to measure the potential loss in fair value of financial instruments sensitive to changes in foreign currency exchange spot rates. We assume that a loss in fair value is either a decrease to our assets or an increase to our liabilities. The fair value of our foreign currency exchange contracts was a net receivable of $0.1 million as of March 31, 2025. Assuming a hypothetical 10% weakening of the U.S. dollar as of March 31, 2025, the fair value of foreign currency-sensitive financial instruments, which represents forward foreign currency exchange contracts, would be decreased by $2.0 million compared with its fair value as of March 31, 2025.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Company management, with the participation of the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures as of March 31, 2025. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2025.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting identified during the quarter ended March 31, 2025, in connection with the evaluation by the Company’s management required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

On February 2, 2024, we acquired HealthBeacon, as discussed in Note 8: Acquisitions in Part I, Item 1 in this Quarterly Report on Form 10-Q. We are currently integrating HealthBeacon into our operations and internal control processes, and, as permitted by the SEC rules and regulations, we have not yet included HealthBeacon in our assessment of the effectiveness of our internal control over financial reporting. HealthBeacon will be included in management’s evaluation of internal control over financial reporting as of December 31, 2025.

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PART II

OTHER INFORMATION

Item 1 Legal Proceedings

The information required by this Item 1 is set forth in Note 6 “Contingencies” included in the unaudited consolidated financial statements contained in Part I of this Form 10-Q and is hereby incorporated herein by reference to such information.

Item 1A Risk Factors

Except as set forth below, there are no material changes to the risk factors for the Company from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”). The risk factor presented below supersedes the corresponding risk factor in the 2024 Form 10-K and should otherwise be read in conjunction with all of the risk factors disclosed in the 2024 Form 10-K.

Government trade actions could have a material adverse effect on our subsidiaries, financial position, and results of operation.

Over the past several years, the U.S. government has taken a number of trade actions that impact or could impact our operations, including imposing tariffs on certain goods imported into the U.S. In addition, several governments, including the European Union, China and India, have imposed tariffs on certain goods imported from the United States. While our suppliers are primarily located in the Asia-Pacific region, approximately three-fourths of our suppliers are currently based in China. As a result, many of our product lines are subject to the tariffs imposed under Section 301 of U.S. trade law that have been applied to separate lists of Chinese goods imported into the United States, beginning in 2018. The Section 301 tariffs on goods covered by lists 1, 2, 3 and 4a affect approximately 10% of our total purchases on an annualized basis. In addition, during April 2025 the U.S. government announced baseline tariffs on products from all countries and additional individualized reciprocal tariffs on the countries with which the United States has the largest trade deficits, including China. We are continually evaluating the impact of the current and any possible new tariffs on our supply chain, costs, sales and profitability and are implementing strategies to mitigate anticipated impact, including reviewing sourcing options and seeking alternate sources of supply in various countries outside of China, filing requests for exclusion from the tariffs for certain product lines and working with our suppliers and customers. We can provide no assurance that any strategies we implement to mitigate the impact of such tariffs or other trade actions will be successful. Given the uncertainty regarding the scope and duration of these trade actions by the U.S. government or other countries, as well as the potential for additional trade actions, the impact on our operations and results remains uncertain.

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds


Issuer Purchases of Equity Securities (1)
	(a)	(b)		(c)	(d)
Period	Total Number of Shares Purchased (2)	Average Price Paid per Share (3)		Total Number of Shares Purchased as Part of the Publicly Announced Program	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program
Month #1 January 1 to 31, 2025	31,732	$	16.51	31,732	$	10,924,841
Month #2 February 1 to 28, 2025	39,121	$	—	—	$	10,924,841
Month #3 March 1 to 31, 2025	109,703	$	19.69	109,703	$	8,764,857
	180,556	$	18.98	141,435	$	8,764,857

(1) In November 2023, the Company’s Board approved a stock repurchase program for the purchase of up to $25 million of the Company’s Class A Common outstanding starting January 1, 2024 and ending December 31, 2025.

(2) Of the repurchases made in February, 39,121 shares represent Class A Common of the Company that were withheld for tax payments due upon issuance of Class A Common to employees under the Incentive Plan. These shares were repurchased at an average price of $17.61. There were no shares withheld for tax payments in January or March.

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(3) Average price paid per share includes costs associated with the repurchases but excludes the 1% excise tax on stock repurchases imposed by the Inflation Reduction Act of 2022.

During the three months ended March 31, 2025, the Company repurchased 141,435 shares at prevailing market prices for an aggregate purchase price of $2.7 million. There were no share repurchases during the three months ended March 31, 2024. During the year ended December 31, 2024, the Company repurchased 638,381 shares for an aggregate purchase price of $13.5 million (excluding the 1% excise tax as a result of the Inflation Reduction Act of 2022).

Additionally, during the three months ended March 31, 2025 and March 31, 2024, the Company withheld shares for tax payments due upon issuance of stock to employees under the Executive Long-Term Equity Incentive Compensation Plan (the “Incentive Plan”). During the three months ended March 31, 2025 and March 31, 2024, the Company repurchased 39,121 and 30,404 shares, respectively, for an aggregate purchase price of $0.7 million and $0.6 million, respectively, pursuant to the Incentive Plan.

Item 3 Defaults Upon Senior Securities

None.

Item 4 Mine Safety Disclosures

None.

Item 5 Other Information

None of the Company’s directors or "officers" (as defined in Rule 16a-1(f) promulgated under the Exchange Act) adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K, during the Company's fiscal quarter ended March 31, 2025.

Item 6 Exhibits


Exhibit
Number*						Description of Exhibits

31(i)(1)						Certification of R. Scott Tidey pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act
31(i)(2)						Certification of Sally M. Cunningham pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act
32						Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by R. Scott Tidey and Sally M. Cunningham
101.INS						Inline XBRL Instance Document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Numbered in accordance with Item 601 of Regulation S-K.

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		Hamilton Beach Brands Holding Company (Registrant)
Date:	April 30, 2025	/s/ Sally M. Cunningham
		Sally M. Cunningham
		Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)/(Principal Accounting Officer)

Hamilton Beach Brands Holding Co 10-Q