Full Press Release Details
Third Quarter 2026 Highlights
• Achieved quarterly net sales of $536 million , a 15% GAAP increase and a 6% organic increase year-over-year
• Generated GAAP operating income of $88 million , or 16.4% of sales, and adjusted operating income of $115 million , or 21.4% of sales
• Recorded GAAP net income of $58 million , or $1.51 per diluted share, a decrease from prior year due to Autronica acquisition costs, and adjusted earnings of $81 million , or $2.09 per diluted share, an increase of 8% year-over-year
• Completed the acquisition of Autronica Fire and Security for $563 million , net of cash acquired
PITTSBURGH , Nov. 2, 2026 /PRNewswire/ -- Global provider of advanced industrial safety technology products and solutions that protect people and facility infrastructures, MSA Safety Incorporated (NYSE: MSA) today reported financial results for the third quarter of 2026.
"The MSA team continued to advance our Accelerate strategy in the third quarter, delivering 15% sales growth," said Steve Blanco , President and Chief Executive Officer of MSA Safety . "We executed several strategic objectives, including closing the acquisition of Autronica Fire and Security , launching the G1 City Edition SCBA, and continuing momentum in MSA+ connected safety, with an ALTAIR io 6 order that marked our largest MSA+ order to date. Together, these actions strengthen our safety technology portfolio, reinforce our market leadership, and enhance our ability to deliver sustainable long-term growth," Mr. Blanco added.
Financial Highlights
Three Months Ended September 30 ,
Nine Months Ended September 30 ,
(In millions, except per share data and percentages)
2026
2025
% Change (a)
2026
2025
% Change (a)
Net Sales
$ 536.4
$ 468.4
15 %
$1,503.4
$1,363.9
10 %
GAAP
Operating income
88.2
94.3
(6) %
293.2
257.9
14 %
% of Net sales
16.4 %
20.1 %
(370) bps
19.5 %
18.9 %
60 bps
Net income
58.4
69.6
(16) %
215.9
192.0
12 %
Diluted EPS
1.51
1.77
(15) %
5.57
4.87
14 %
Non-GAAP
Adjusted EBITDA
$ 130.7
$ 118.9
10 %
$ 383.4
$ 336.9
14 %
% of Net sales
24.4 %
25.4 %
(100) bps
25.5 %
24.7 %
80 bps
Adjusted operating income
114.9
103.7
11 %
337.2
292.7
15 %
% of Net sales
21.4 %
22.1 %
(70) bps
22.4 %
21.5 %
90 bps
Adjusted earnings
80.6
76.2
6 %
251.2
218.6
15 %
Adjusted diluted EPS
2.09
1.94
8 %
6.48
5.55
17 %
Free cash flow
68.2
100.5
(32) %
216.0
189.4
14 %
Free cash flow conversion
117 %
144 %
100 %
99 %
Americas Segment
Net sales
$ 338.2
$ 313.3
8 %
$1,004.9
$ 926.6
8 %
GAAP operating income
93.9
86.7
8 %
295.8
254.5
16 %
% of Net sales
27.8 %
27.7 %
10 bps
29.4 %
27.5 %
190 bps
Adjusted operating income
96.7
88.7
9 %
303.9
260.7
17 %
% of Net sales
28.6 %
28.3 %
30 bps
30.2 %
28.1 %
210 bps
International Segment
Net sales
$ 198.2
$ 155.1
28 %
$ 498.5
$ 437.3
14 %
GAAP operating income
22.9
22.7
1 %
58.3
52.3
11 %
% of Net sales
11.6 %
14.7 %
(310) bps
11.7 %
12.0 %
(30) bps
Adjusted operating income
31.8
24.8
28 %
71.4
63.7
12 %
% of Net sales
16.1 %
16.0 %
10 bps
14.3 %
14.6 %
(30) bps
(a) Percentage change may not calculate exactly due to rounding.
"Our adjusted earnings per share increased by 8% and we continued to deliver strong free cash flow conversion. Our cash generation and disciplined capital allocation framework enabled the acquisition of Autronica Fire and Security and meaningful shareholder returns via dividends and share repurchases. With net leverage within our target range, we remain well positioned to pursue strategic growth opportunities. We are maintaining our full-year sales outlook of low-double-digit reported growth," stated Julie Beck , MSA Safety's Chief Financial Officer.
Conference Call MSA Safety will host a conference call on Tuesday, November 3, 2026 , at 10:00 a.m. Eastern Time to discuss its third quarter 2026 results. The call and an accompanying slide presentation will be webcast at http://investors.msasafety.com/ under the "News and Events" tab, subheading "Events & Presentations." Investors and interested parties can also dial into the call at 1-844-854-4415 (toll-free) or 1-412-902-6599 (international). When prompted, please instruct the operator to be joined into the MSA Safety Incorporated conference call. A replay of the conference call will be available at http://investors.msasafety.com/ shortly after the conclusion of the presentation and will be available for the next 90 days.
MSA Safety Incorporated
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share amounts)
Three Months Ended September 30 ,
Nine Months Ended September 30 ,
2026
2025
2026
2025
Net sales
$ 536,430
$ 468,445
$ 1,503,389
$ 1,363,900
Cost of products sold
292,199
250,829
790,287
732,179
Gross profit
244,231
217,616
713,102
631,721
Selling, general and administrative
132,377
102,852
354,133
308,895
Research and development
19,963
16,521
55,472
49,186
Restructuring charges
1,780
58
6,318
2,470
Currency exchange losses, net
1,876
3,875
3,971
13,237
Operating income
88,235
94,310
293,208
257,933
Interest expense
13,759
8,416
29,413
23,368
Other income, net
(7,478)
(6,562)
(22,538)
(18,585)
Total other expense, net
6,281
1,854
6,875
4,783
Income before income taxes
81,954
92,456
286,333
253,150
Provision for income taxes
23,558
22,843
70,474
61,159
Net income
$ 58,396
$ 69,613
$ 215,859
$ 191,991
Earnings per share attributable to common shareholders:
Basic
$ 1.51
$ 1.78
$ 5.58
$ 4.89
Diluted
$ 1.51
$ 1.77
$ 5.57
$ 4.87
Basic shares outstanding
38,564
39,168
38,681
39,253
Diluted shares outstanding
38,647
39,280
38,776
39,380
MSA Safety Incorporated
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
September 30, 2026
December 31, 2025
Assets
Cash and cash equivalents
$ 187,248
$ 165,067
Trade receivables, net
374,211
306,452
Inventories
370,595
343,035
Other current assets
58,690
54,738
Total current assets
990,744
869,292
Property, plant and equipment, net
282,269
283,063
Prepaid pension cost
297,101
279,450
Goodwill
1,044,108
731,592
Intangible assets, net
558,574
299,127
Other noncurrent assets
105,516
91,850
Total assets
$ 3,278,312
$ 2,554,374
Liabilities and shareholders' equity
Notes payable and current portion of long-term debt, net
$ 33,098
$ 8,225
Accounts payable
145,800
110,775
Other current liabilities
194,800
170,211
Total current liabilities
373,698
289,211
Long-term debt, net
1,088,108
572,709
Pensions and other employee benefits
139,464
143,834
Deferred tax liabilities
172,328
127,540
Other noncurrent liabilities
70,727
54,068
Total shareholders' equity
1,433,987
1,367,012
Total liabilities and shareholders' equity
$ 3,278,312
$ 2,554,374
MSA Safety Incorporated
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Three Months Ended September 30 ,
Nine Months Ended September 30 ,
2026
2025
2026
2025
Net income
$ 58,396
$ 69,613
$ 215,859
$ 191,991
Depreciation and amortization
23,009
18,585
60,683
52,935
Change in working capital and other operating
907
24,264
(23,167)
(3,413)
Cash flow from operating activities
82,312
112,462
253,375
241,513
Acquisitions, net of cash acquired
(563,087)
—
(563,087)
(187,774)
Capital expenditures
(14,128)
(11,986)
(37,388)
(52,104)
Property disposals and other investing
—
—
36
19
Cash flow used in investing activities
(577,215)
(11,986)
(600,439)
(239,859)
Change in debt
521,698
(49,892)
542,458
115,328
Cash dividends paid
(20,834)
(20,757)
(62,248)
(61,638)
Company stock purchases under repurchase program
(12,683)
—
(88,809)
(39,995)
Other financing
(224)
(1,156)
(9,392)
(11,521)
Cash flow (used in) from financing activities
487,957
(71,805)
382,009
2,174
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(5,900)
(5,690)
(12,477)
2,002
Change in cash, cash equivalents and restricted cash
$ (12,846)
$ 22,981
$ 22,468
$ 5,830
MSA Safety Incorporated
Sales by Product Group (Unaudited)
(In thousands, except percentages)
Three Months Ended September 30, 2026
Consolidated
Americas
International
Dollars
Percent
Dollars
Percent
Dollars
Percent
Detection (a)
$ 233,935
44 %
$ 130,107
38 %
$ 103,828
52 %
Fire Service (b)
173,214
32 %
119,179
35 %
54,035
27 %
Industrial PPE and Other (c)
129,281
24 %
88,960
27 %
40,321
21 %
Total
$ 536,430
100 %
$ 338,246
100 %
$ 198,184
100 %
Three Months Ended September 30, 2025
Consolidated
Americas
International
Dollars
Percent
Dollars
Percent
Dollars
Percent
Detection (a)
$ 191,188
41 %
$ 124,111
40 %
$ 67,077
43 %
Fire Service (b)
158,654
34 %
109,497
35 %
49,157
32 %
Industrial PPE and Other (c)
118,603
25 %
79,742
25 %
38,861
25 %
Total
$ 468,445
100 %
$ 313,350
100 %
$ 155,095
100 %
(a) Detection includes Fixed Gas and Flame Detection and Portable Gas Detection. Detection includes sales from the Autronica Fire and Security acquisition from July 9, 2026 onward ( Americas and International).
(b) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.
(c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core.
Nine Months Ended September 30, 2026
Consolidated
Americas
International
Dollars
Percent
Dollars
Percent
Dollars
Percent
Detection (a)
$ 616,154
41 %
$ 392,710
39 %
$ 223,444
45 %
Fire Service (b)
494,378
33 %
343,514
34 %
150,864
30 %
Industrial PPE and Other (c)
392,857
26 %
268,711
27 %
124,146
25 %
Total
$1,503,389
100 %
$1,004,935
100 %
$ 498,454
100 %
Nine Months Ended September 30, 2025
Consolidated
Americas
International
Dollars
Percent
Dollars
Percent
Dollars
Percent
Detection (a)
$ 546,094
40 %
$ 361,176
39 %
$ 184,918
42 %
Fire Service (b)
472,576
35 %
326,220
35 %
146,356
33 %
Industrial PPE and Other (c)
345,230
25 %
239,253
26 %
105,977
25 %
Total
$1,363,900
100 %
$ 926,649
100 %
$ 437,251
100 %
(a) Detection includes Fixed Gas and Flame Detection and Portable Gas Detection. Detection includes sales from the M&C TechGroup acquisition from May 6, 2025 , onward ( Americas and International) and sales from the Autronica Fire and Security acquisition from July 9, 2026 onward ( Americas and International).
(b) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.
(c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core.
MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Organic sales change (Unaudited)
Consolidated
Three Months Ended September 30, 2026
Detection (a)
Fire Service (b)
Industrial PPE and Other (c)
Net Sales
GAAP reported sales change
22 %
9 %
9 %
15 %
Currency translation effects
— %
— %
(2) %
(1) %
Less: Acquisitions
(20) %
— %
— %
(8) %
Organic sales change
2 %
9 %
7 %
6 %
Nine Months Ended September 30, 2026
Detection (a)
Fire Service (b)
Industrial PPE and Other (c)
Net Sales
GAAP reported sales change
13 %
5 %
14 %
10 %
Currency translation effects
(1) %
(2) %
(4) %
(2) %
Less: Acquisitions
(11) %
— %
— %
(4) %
Organic sales change
1 %
3 %
10 %
4 %
Americas Segment
Three Months Ended September 30, 2026
Detection (a)
Fire Service (b)
Industrial PPE and Other (c)
Net Sales
GAAP reported sales change
5 %
9 %
12 %
8 %
Currency translation effects
— %
— %
(3) %
(1) %
Less: Acquisitions
(1) %
— %
— %
— %
Organic sales change
4 %
9 %
9 %
7 %
Nine months ended September 30, 2026
Detection (a)
Fire Service (b)
Industrial PPE and Other (c)
Net Sales
GAAP reported sales change
9 %
5 %
12 %
8 %
Currency translation effects
(1) %
— %
(3) %
(1) %
Less: Acquisitions
(2) %
— %
— %
(1) %
Organic sales change
6 %
5 %
9 %
6 %
International Segment
Three Months Ended September 30, 2026
Detection (a)
Fire Service (b)
Industrial PPE and Other (c)
Net Sales
GAAP reported sales change
55 %
10 %
4 %
28 %
Currency translation effects
— %
— %
(1) %
— %
Less: Acquisitions
(59) %
— %
— %
(26) %
Organic sales change
(4) %
10 %
3 %
2 %
Nine months ended September 30, 2026
Detection (a)
Fire Service (b)
Industrial PPE and Other (c)
Net Sales
GAAP reported sales change
21 %
3 %
17 %
14 %
Currency translation effects
(2) %
(4) %
(4) %
(3) %
Less: Acquisitions
(29) %
— %
— %
(12) %
Organic sales change
(10) %
(1) %
13 %
(1) %
(a) Detection includes Fixed Gas and Flame Detection and Portable Gas Detection. Detection includes sales from M&C, acquired by the Company, from May 6th, 2025 , onward ( Americas and International).
(b) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel.
(c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core.
Management believes that organic sales change is a useful metric for investors, as foreign currency translation, acquisitions and divestitures can have a material impact on sales change trends. Organic sales change highlights ongoing business performance excluding the impact of fluctuating foreign currencies, acquisitions and divestitures. There can be no assurances that MSA's definition of organic sales change is consistent with that of other companies. As such, management believes that it is appropriate to consider sales change determined on a GAAP basis in addition to this non-GAAP financial measure.
MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Adjusted operating income (Unaudited)
Adjusted EBITDA (Unaudited)
(In thousands)
Three Months Ended September 30 ,
Nine months ended September 30 ,
2026
2025
2026
2025
Adjusted EBITDA from reportable segments
$ 144,278
$ 128,487
$ 421,559
$ 367,651
Less:
Depreciation and amortization
15,784
14,973
46,252
43,258
Adjusted operating income from reportable segments
128,494
113,514
375,307
324,393
Less:
Corporate expenses
13,564
9,773
38,138
31,718
Adjusted operating income
114,930
103,741
337,169
292,675
Less:
Currency exchange losses, net
1,876
3,875
3,971
13,237
Restructuring charges
1,780
58
6,318
2,470
Acquisition-related amortization
8,072
3,595
14,841
9,033
Transaction and digital transformation costs (a)
14,967
1,903
18,831
10,002
GAAP operating income
88,235
94,310
293,208
257,933
Less:
Interest expense
13,759
8,416
29,413
23,368
Other income, net
(7,478)
(6,562)
(22,538)
(18,585)
Income before income taxes
81,954
92,456
286,333
253,150
Provision for income taxes
23,558
22,843
70,474
61,159
Net income
$ 58,396
$ 69,613
$ 215,859
$ 191,991
(a) Transaction and digital transformation costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during our evaluation of or in connection with acquisitions and divestitures as well as costs associated with strategic digital transformation efforts. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income.
Adjusted operating income, adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are non-GAAP financial measures and operating ratios derived from non-GAAP measures. Adjusted operating income is defined as operating income excluding currency exchange gains / losses, restructuring charges, acquisition-related amortization, and transaction and digital transformation costs. Adjusted operating margin is defined as adjusted operating income divided by net sales to external customers. Adjusted EBITDA is defined as adjusted operating income plus depreciation and amortization, and adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales to external customers. These metrics are consistent with how management evaluates segment results and makes strategic decisions about the business. Additionally, these non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are not recognized terms under GAAP, and therefore do not purport to be alternatives to operating income or operating margin as a measure of operating performance. The company's definition of adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. As such, management believes that it is appropriate to consider operating income and net income determined on a GAAP basis in addition to these non-GAAP measures.
MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Adjusted earnings (Unaudited)
Adjusted diluted earnings per share (Unaudited)
(In thousands, except per share amounts and percentages)
Three Months Ended September 30 ,
Nine Months Ended September 30 ,
2026
2025
%
Change
2026
2025
%
Change
Net income
$ 58,396
$ 69,613
(16) %
$215,859
$191,991
12 %
Currency exchange losses, net
1,876
3,875
3,971
13,237
Restructuring charges
1,780
58
6,318
2,470
Acquisition-related amortization
8,072
3,595
14,841
9,033
Transaction and digital transformation costs (a)
14,967
1,903
18,831
10,002
Asset related losses
249
97
637
989
Pension settlement
—
—
—
721
Income tax expense on adjustments
(4,693)
(2,949)
(9,301)
(9,885)
Adjusted earnings
$ 80,647
$ 76,192
6 %
$251,156
$218,558
15 %
Adjusted diluted earnings per share
$ 2.09
$ 1.94
8 %
$ 6.48
$ 5.55
17 %
Diluted shares outstanding
38,647
39,280
38,776
39,380
(a) Transaction and digital transformation costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during our evaluation of or in connection with acquisitions and divestitures as well as costs associated with strategic digital transformation efforts. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income.
Management believes that adjusted earnings and adjusted diluted earnings per share are useful measures for investors, as management uses these measures to internally assess the company's performance and ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that MSA's definition of adjusted earnings is consistent with that of other companies. As such, management believes that it is appropriate to consider both net income determined on a GAAP basis as well as adjusted earnings.
MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Free Cash Flow (Unaudited)
(In thousands, except percentages)
Three Months Ended September 30 ,
Nine Months Ended September 30 ,
2026
2025
2026
2025
Cash flow from operating activities
$ 82,312
$ 112,462
$ 253,375
$ 241,513
Capital expenditures
(14,128)
(11,986)
(37,388)
(52,104)
Free cash flow
$ 68,184
$ 100,476
$ 215,987
$ 189,409
Net Income
$ 58,396
$ 69,613
$ 215,859
$ 191,991
Free cash flow conversion
117 %
144 %
100 %
99 %
Management believes that free cash flow is a meaningful measure for investors. Management reviews cash from operations after deducting capital expenditures because these expenditures are necessary to promote growth of MSA's business and are likely to produce cash from operations in future periods. It is important to note that free cash flow does not reflect the residual cash balance of the company for discretionary spending since other items, including debt and dividend payments, are deducted from free cash flow before arriving at the company's ending cash balance. Management defines free cash flow conversion as free cash flow divided by net income. There can be no assurances that MSA's definition of free cash flow is consistent with that of other companies. As such, management believes that it is appropriate to consider cash from operating activities determined on a GAAP basis as well as free cash flow.
MSA Safety Incorporated
Reconciliation of Non-GAAP Financial Measures
Debt to adjusted EBITDA / Net debt to adjusted EBITDA (Unaudited)
(In thousands)
Twelve Months Ended September 30 ,
2026
Operating income
$ 407,093
Depreciation and amortization
60,328
Currency exchange losses, net
6,535
Restructuring charges
7,745
Acquisition-related amortization
18,423
Transaction and digital transformation costs (a)
19,296
Autronica estimated adjusted EBITDA contribution (b)
24,000
Adjusted EBITDA
$ 543,420
Total end-of-period debt
1,121,206
Debt to adjusted EBITDA
2.1
Total end-of-period debt
$ 1,121,206
Total end-of-period cash and cash equivalents
187,248
Net debt
$ 933,958
Net debt to adjusted EBITDA
1.7
(a) Transaction and digital transformation costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during our evaluation of or in connection with acquisitions and divestitures as well as costs associated with strategic digital transformation efforts. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income.
(b) Adjusted EBITDA includes Autronica estimates for nine months preceding MSA's ownership. The estimate was developed using information disclosed in MSA's Form 8-K filed on May 5, 2026 . Pro forma Adjusted EBITDA is derived from Autronica's estimated 2025 revenue of approximately $160 million and estimated Adjusted EBITDA margin of approximately 20%. These amounts are unaudited and based on preliminary estimates.
Management believes that Debt to adjusted EBITDA and Net debt to adjusted EBITDA are useful measures for investors, as management uses these measures to internally assess the company's liquidity and balance sheet strength. There can be no assurances that MSA's definition of Debt to adjusted EBITDA and Net debt to adjusted EBITDA is consistent with that of other companies.
About MSA Safety:
MSA Safety Incorporated (NYSE: MSA) is the global leader in advanced industrial safety technology products and solutions. Driven by its singular mission of safety, the company has been at the forefront of safety innovation since 1914, protecting workers and facility infrastructure around the world across a broad range of diverse end markets while creating sustainable value for shareholders. With 2025 revenues of $1.9 billion, MSA Safety is headquartered in Cranberry Township, Pennsylvania and employs a team of approximately 5,300 associates across its more than 40 international locations. For more information, please visit www.MSASafety.com .
Cautionary Statement Regarding Forward-Looking Statements:
Except for historical information, certain matters discussed in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance and involve various assumptions, known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or other comparable words. Actual results, performance or outcomes may differ materially from those expressed or implied by these forward-looking statements and may not align with historical performance and events due to a number of factors, including those discussed in the sections of our annual report on Form 10-K entitled "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors," and those discussed in our Form 10-Q quarterly reports filed after such annual report. MSA's SEC filings are readily obtainable at no charge at www.sec.gov , as well as on its own investor relations website at http://investors.MSAsafety.com . Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and caution should be exercised against placing undue reliance upon such statements, which are based only on information currently available to us and speak only as of the date hereof. We are under no duty to update publicly any of the forward-looking statements after the date of this earnings press release, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures:
This press release includes certain non-GAAP financial measures. These financial measures include organic sales change, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted earnings, adjusted earnings per diluted share, debt to adjusted EBITDA, and net debt to adjusted EBITDA. These non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Management also uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use, and computational methods with respect thereto, may differ from the non-GAAP financial measures and key performance indicators, and computational methods, that our peers use to assess their performance and trends.
The presentation of these non-GAAP financial measures does not comply with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. When non-GAAP financial measures are disclosed, the Securities and Exchange Commission's Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. For an explanation of these measures, with a reconciliation to the most directly comparable GAAP financial measure, see the Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures in the financial tables section above.