Knowles Corporation (KN) SEC Filings & Earnings Calls

Gross margin compression despite revenue growth; GAAP gross margin down 150 bps YoY, non-GAAP down 90 bps.

“GAAP gross margin 44.2% vs 45.7% YoY; non-GAAP 45.3% vs 46.2% YoY”

Tariff uncertainty

“The tariff environment remains highly dynamic. On February 20, 2026, a Supreme Court ruling invalidated certain tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA"). Knowles submitted refund requests and has, to date, received a portion of previously paid IEEPA tariffs. However, as a relatively small percentage of our pr” · word for word

Production transfer costs

“This increase was primarily due to higher shipping volumes, unfavorable product mix, and increased production transfer costs in our ceramic capacitor business.” · word for word

Dependence on specialty electronic components market; cyclical demand in industrial and defense.

“Exposure to medtech, defense, industrial, and electrification markets; potential cyclicality.”

Tariff uncertainty and potential input cost pressure

“Knowles has historically paid IEEPA duties, and we are currently pursuing the opportunity for potential tariff refunds. However, the amount and timing of any potential recovery is uncertain.” · word for word

Foreign currency exchange rate risk

“Other expense for the first quarter of 2026 was $3.4 million, compared with expense of $0.5 million for the first quarter of 2025, a change of $2.9 million. Expense in 2026 is primarily due to unfavorable foreign currency exchange rate changes.” · word for word

CD Business Underperformance

“CD Business Unit Performance ... Revenue ($M) ... Actual results $123.8 ... Results as a % of Target 60.0%”

CEO Financial PSU Award Dilution Risk

“The CEO Financial PSU Award has a grant date fair value of $1.5 million. ... maximum payout cap of 400%.” · word for word

Customer Concentration Risk

“Our MSA segment... relies on a limited number of customers for a significant portion of their sales. For 2025, MSA's top five customers accounted for approximately 76% of its revenues.”

Supply Chain Disruption Risk

“Certain of our businesses rely on highly specialized suppliers or foundries for critical materials, components, or subassemblies that are used in our products. In some cases, our suppliers or foundries are our sole source of supply.” · word for word

Trade Policy/Tariff Risk

“Any unfavorable government policies on international trade, such as export and import controls, capital controls or tariffs, may affect the demand for our products and services, increase the cost of components, delay production.” · word for word

Restructuring execution risk

“Restructuring charges of $3.2 million during the nine months ended September 30, 2025, related to headcount reductions across the Company primarily to rightsize operating expenses subsequent to the sale of CMM.”

Cash burn from buybacks and debt

“Cash and cash equivalents decreased from $130.1 million at December 31, 2024 to $92.5 million at September 30, 2025, driven by $55.0 million in share repurchases and $30.0 million in debt repayments.”