tile-20260405

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________

Form 10-Q

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

For the Quarterly Period Ended April 5, 2026

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

Commission File Number 001-33994

INTERFACE INC

(Exact name of registrant as specified in its charter)


Georgia						58-1451243
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


1280 West Peachtree Street	Atlanta	Georgia	30309
(Address of principal executive offices)			(zip code)

Registrant’s telephone number, including area code: (770) 437-6800

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, $0.10 Par Value Per Share	TILE	Nasdaq Global Select Market

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 ¨

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 ¨

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 outstanding of each of the registrant’s classes of common stock, as of May 7, 2026:


Class			Number of Shares
Common Stock, $0.10 par value per share			58,056,192

TABLE OF CONTENTS


			Page
PART I.	FINANCIAL INFORMATION

	Item 1.	Financial Statements (Unaudited)	3

		Consolidated Condensed Balance Sheets – April 5, 2026 and December 2 8 , 20 25	3

		Consolidated Condensed Statements of Operations – Three Months Ended April 5 , 202 6 and March 3 0 , 202 5	4

		Consolidated Condensed Statements of Comprehensive Income – Three Months Ended April 5 , 202 6 and March 3 0 , 202 5	5

		Consolidated Condensed Statements of Cash Flows – Three Months Ended April 5 , 202 6 and March 3 0 , 202 5	6

		Notes to Consolidated Condensed Financial Statements	7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	33

	Item 4.	Controls and Procedures	34

PART II.	OTHER INFORMATION

	Item 1.	Legal Proceedings	35

	Item 1A.	Risk Factors	35

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

	Item 3.	Defaults Upon Senior Securities	37

	Item 4.	Mine Safety Disclosures	37

	Item 5.	Other Information	37

	Item 6.	Exhibits	38

SIGNATURE			39


	APRIL 5, 2026		DECEMBER 28, 2025
	(UNAUDITED)
ASSETS
Current assets
Cash and cash equivalents	$	61,231	$	71,323
Accounts receivable, net	163,303		174,457
Inventories, net	294,193		275,014
Prepaid expenses and other current assets	43,532		34,048
Total current assets	562,259		554,842
Property, plant and equipment, net	311,225		309,449
Operating lease right-of-use assets	73,395		78,191
Deferred tax assets	24,923		25,272
Goodwill and intangible assets, net	159,672		163,012
Other assets	74,314		75,756

Total assets	$	1,205,788	$	1,206,522

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	88,123	$	64,768
Accrued expenses	119,678		147,770
Current portion of operating lease liabilities	14,698		15,748
Current portion of long-term debt	8,789		8,778
Total current liabilities	231,288		237,064
Long-term debt	187,698		172,801
Operating lease liabilities	63,238		67,205
Deferred income taxes	23,199		23,365
Other long-term liabilities	65,780		65,413

Total liabilities	571,203		565,848

Commitments and contingencies (Note 14)

Shareholders’ equity
Preferred stock, par value $1.00 per share; 5,000 shares authorized; none issued or outstanding at April 5, 2026 and December 28, 2025	—		—
Common stock, par value $0.10 per share; 120,000 shares authorized; 58,055 and 57,891 shares issued and outstanding at April 5, 2026 and December 28, 2025, respectively	5,805		5,789
Additional paid-in capital	228,032		248,910
Retained earnings	539,709		517,980
Accumulated other comprehensive loss – foreign currency translation	(101,035)		(92,691)
Accumulated other comprehensive loss – pension liability	(37,926)		(39,314)

Total shareholders’ equity	634,585		640,674

Total liabilities and shareholders’ equity	$	1,205,788	$	1,206,522


	THREE MONTHS ENDED
	APRIL 5, 2026		MARCH 30, 2025
Net sales	$	331,037	$	297,413
Cost of sales	204,314		186,450
Gross profit	126,723		110,963

Selling, general and administrative expenses	94,393		87,736
Operating income	32,330		23,227

Interest expense	2,665		4,415
Other expense, net	774		1,703

Income before income tax expense	28,891		17,109
Income tax expense	5,280		4,107

Net income	$	23,611	$	13,002

Earnings per share – basic	$	0.41	$	0.22
Earnings per share – diluted	$	0.40	$	0.22

Common shares outstanding – basic	58,098		58,434
Common shares outstanding – diluted	59,010		59,173


	Three Months Ended
Geography	April 5, 2026	March 30, 2025
Americas	59%	60%
Europe	31%	30%
Asia-Pacific	10%	10%


	Three Months Ended
Market Segment	April 5, 2026	March 30, 2025
Corporate Office	47%	45%
Education	17%	18%
Healthcare	10%	10%
Other	26%	27%


	April 5, 2026		December 28, 2025
	(in thousands)
Finished goods	$	218,259	$	205,115
Work-in-process	20,869		17,418
Raw materials	55,065		52,481
Inventories, net	$	294,193	$	275,014


	April 5, 2026				December 28, 2025
	Outstanding Principal		Interest Rate(1)		Outstanding Principal		Interest Rate(1)
	(in thousands)				(in thousands)
Syndicated Credit Facility(2):
Revolving loan borrowings	$	23,103	4.97	%	$	6,158	6.07	%
Term loan borrowings	173,573		4.93	%	175,621		5.09	%
Total borrowings under Syndicated Credit Facility	196,676		4.94	%	181,779		5.12	%

Total debt	196,676				181,779
Less: Unamortized debt issuance costs	(189)				(200)

Total debt, net	196,487				181,579
Less: Current portion of long-term debt	(8,789)				(8,778)

Total long-term debt, net	$	187,698			$	172,801


	SHARES	COMMON STOCK		ADDITIONAL PAID-IN CAPITAL		RETAINED EARNINGS		PENSION LIABILITY		FOREIGN CURRENCY TRANSLATION ADJUSTMENT		TOTAL
	(in thousands, except per share data)
Balance, at December 28, 2025	57,891	$	5,789	$	248,910	$	517,980	$	(39,314)	$	(92,691)	$	640,674
Net income	—	—		—		23,611		—		—		23,611
Issuances of stock related to restricted share units and performance shares	1,065	106		(106)		—		—		—		—
Cash dividends declared, $0.03 per common share	—	—		—		(1,882)		—		—		(1,882)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings	(440)	(44)		(8,818)		—		—		—		(8,862)
Share repurchases	(461)	(46)		(11,954)								(12,000)
Pension liability adjustment	—	—		—		—		1,388		—		1,388
Foreign currency translation adjustment	—	—		—		—		—		(8,344)		(8,344)
Balance, at April 5, 2026	58,055	$	5,805	$	228,032	$	539,709	$	(37,926)	$	(101,035)	$	634,585


	Restricted Share Units	Weighted Average Grant Date Fair Value
Outstanding at December 28, 2025	797,400	$	15.88
Granted	216,700	31.51
Vested	(429,500)	13.10
Forfeited or canceled	(11,300)	20.20
Outstanding at April 5, 2026	573,300	$	23.79


	Performance Shares	Weighted Average Grant Date Fair Value
Outstanding at December 28, 2025	1,070,300	$	14.04
Granted	397,100	21.50
Vested	(635,500)	10.79
Forfeited or canceled	(14,500)	19.05
Outstanding at April 5, 2026	817,400	$	20.10


	April 5, 2026				December 28, 2025
Balance Sheet Location	Operating Leases		Finance Leases		Operating Leases		Finance Leases
	(in thousands)
Operating lease right-of-use assets	$	73,395			$	78,191

Current portion of operating lease liabilities	$	14,698			$	15,748
Operating lease liabilities	63,238				67,205
Total operating lease liabilities	$	77,936			$	82,953

Property, plant and equipment, net			$	10,522			$	9,574

Accrued expenses			$	3,305			$	3,155
Other long-term liabilities			7,611				6,817
Total finance lease liabilities			$	10,916			$	9,972


	THREE MONTHS ENDED
	APRIL 5, 2026		MARCH 30, 2025
OPERATING ACTIVITIES:
Net income	$	23,611	$	13,002
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	9,876		9,401
Share-based compensation expense	5,033		4,145
Deferred income taxes	677		(837)
Amortization of acquired intangible assets	—		1,255
Other	461		3,070
Working capital changes:
Accounts receivable	10,465		10,675
Inventories	(21,185)		(16,339)
Prepaid expenses and other current assets	(9,737)		(3,438)
Accounts payable and accrued expenses	(5,663)		(9,195)

Cash provided by operating activities	13,538		11,739

INVESTING ACTIVITIES:
Capital expenditures	(10,327)		(7,467)

Cash used in investing activities	(10,327)		(7,467)

FINANCING ACTIVITIES:
Borrowings of long-term debt	41,752		—
Repayments of long-term debt	(27,076)		(122)
Repurchases of common stock	(12,000)		—
Tax withholding payments for share-based compensation	(13,937)		(7,730)
Dividends paid	(138)		(54)
Finance lease payments	(983)		(762)

Cash used in financing activities	(12,382)		(8,668)

Net cash used in operating, investing and financing activities	(9,171)		(4,396)
Effect of exchange rate changes on cash	(921)		2,927

CASH AND CASH EQUIVALENTS:
Net decrease	(10,092)		(1,469)
Balance, beginning of period	71,323		99,226


	Three Months Ended
	April 5, 2026	March 30, 2025
Revenue from the sale of flooring material	98%	98%
Revenue from installation of flooring material	2%	2%


	April 5, 2026		December 28, 2025
Weighted-average remaining lease term – finance leases (in years)	4.15		4.07
Weighted-average remaining lease term – operating leases (in years)	6.90		7.05
Weighted-average discount rate – finance leases	6.09	%	6.52	%
Weighted-average discount rate – operating leases	6.34	%	6.33	%


Fiscal Year	Operating Leases		Finance Leases
	(in thousands)
2026 (excluding the three months ended April 5, 2026)	$	14,069	$	2,902
2027	17,304		3,413
2028	13,559		2,456
2029	11,431		1,498
2030	8,708		936
Thereafter	32,040		1,139
Total future minimum lease payments (undiscounted)	97,111		12,344
Less: Present value discount	(19,175)		(1,428)
Total lease liabilities	$	77,936	$	10,916


	Three Months Ended
Defined Benefit Retirement Plans (Europe)	April 5, 2026		March 30, 2025
	(in thousands)
Interest cost	$	1,857	$	1,813
Expected return on plan assets	(1,778)		(1,938)
Amortization of prior service cost	47		44
Amortization of net actuarial losses	410		375
Net periodic benefit cost	$	536	$	294


	Three Months Ended
Salary Continuation Plan	April 5, 2026		March 30, 2025
	(in thousands)
Interest cost	$	256	$	275
Amortization of net actuarial losses	63		47
Net periodic benefit cost	$	319	$	322


	Three Months Ended
nora Defined Benefit Plan	April 5, 2026		March 30, 2025
	(in thousands)
Service cost	$	95	$	103
Interest cost	311		253
Amortization of net actuarial gains	(190)		(82)
Net periodic benefit cost	$	216	$	274


	Goodwill(1)
	(in thousands)
Balance, at December 28, 2025	$	112,127
Foreign currency translation(2)	(2,301)
Balance, at April 5, 2026	$	109,826


		Three Months Ended
	Statement of Operations Location	April 5, 2026		March 30, 2025
		(in thousands)
Amortization of benefit plan net actuarial losses and prior service cost	Other expense, net	$	(330)	$	(384)
Total loss reclassified from AOCL		$	(330)	$	(384)


	April 5, 2026						December 28, 2025
	Carrying Value		Fair Value (Level 1)		Fair Value (Level 2)		Carrying Value		Fair Value (Level 1)		Fair Value (Level 2)
	(in thousands)
Assets:
Company-owned life insurance	$	23,091	$	—	$	23,091	$	23,048	$	—	$	23,048
Deferred compensation investments	32,193		8,159		24,034		33,728		8,941		24,787

Liabilities(1):
Borrowings under Syndicated Credit Facility(2)	196,676		—		196,676		181,779		—		181,779


	Three Months Ended				Percentage Change
	April 5, 2026		March 30, 2025
	(in thousands)
Consolidated net sales	$	331,037	$	297,413	11.3	%


	Three Months Ended				Percentage Change
	April 5, 2026		March 30, 2025
	(in thousands)
AMS segment net sales	$	195,671	$	179,937	8.7	%
AMS segment AOI(1)	23,896		19,863		20.3	%