# Gentex Corp: Form 10-Q for the period ended Jun 30, 2025

- Company: [Gentex Corp](/companies/gntx.md) (CIK 355811)
- Form: 10-Q
- Filed: 2025-08-08
- Accepted by EDGAR: Aug 8, 2025, 14:00 ET
- Period: 2025-06-30
- Accession: 0000355811-25-000041
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/355811/000035581125000041/gntx-20250630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/355811/000035581125000041/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $657.9m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2025-01-01 to 2025-06-30 | $1.23bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-04-01 to 2025-06-30 | $432.6m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2025-01-01 to 2025-06-30 | $817.6m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-04-01 to 2025-06-30 | $225.3m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2025-01-01 to 2025-06-30 | $417.0m | us-gaap:GrossProfit |
| Research and development | 3 months, 2025-04-01 to 2025-06-30 | $51.5m | us-gaap:ResearchAndDevelopmentExpense |
| Research and development | 6 months, 2025-01-01 to 2025-06-30 | $97.4m | us-gaap:ResearchAndDevelopmentExpense |
| Selling, general and administrative | 3 months, 2025-04-01 to 2025-06-30 | $48.5m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months, 2025-01-01 to 2025-06-30 | $78.4m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-04-01 to 2025-06-30 | $118.5m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2025-01-01 to 2025-06-30 | $231.5m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2025-04-01 to 2025-06-30 | $19.8m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-01-01 to 2025-06-30 | $38.6m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | $96.0m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-01-01 to 2025-06-30 | $190.9m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.43 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-01-01 to 2025-06-30 | $0.85 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.43 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-01-01 to 2025-06-30 | $0.85 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-04-01 to 2025-06-30 | 219,631,876 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-01-01 to 2025-06-30 | 221,385,600 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2025-01-01 to 2025-06-30 | $314.6m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2025-01-01 to 2025-06-30 | $67.8m | us-gaap:PaymentsToAcquireProductiveAssets |
| Dividends paid | 6 months, 2025-01-01 to 2025-06-30 | $54.2m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 6 months, 2025-01-01 to 2025-06-30 | $198.9m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-06-30 | $119.8m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-06-30 | $1.06bn | us-gaap:AssetsCurrent |
| Total assets | at 2025-06-30 | $2.81bn | us-gaap:Assets |
| Current liabilities | at 2025-06-30 | $336.9m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-06-30 | $380.7m | us-gaap:Liabilities |
| Short-term borrowings | at 2025-06-30 | $3.9m | us-gaap:ShortTermBorrowings |
| Shareholders' equity | at 2025-06-30 | $2.43bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 51,791 characters.

### RESULTS OF OPERATIONS:

### NON-GAAP MEASURES

The following discussion includes Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Income (Loss) from Operations, Adjusted Net Income (Loss) Attributable to Gentex Corporation, and Adjusted Earnings per Diluted Share Attributable to Gentex Corporation, which are non-GAAP measures. See section Non-GAAP Financial Measures for the most directly comparable GAAP measures, definitions of these terms, and reconciliations between such non-GAAP measures and the most directly comparable GAAP measures, as well as a discussion of why the Company believes this non-GAAP information is useful to investors and how management uses such non-GAAP information.

### SECOND QUARTER 2025 VERSUS SECOND QUARTER 2024

*Net Sales.* Consolidated net sales for the second quarter of 2025 increased by $84.9 million or 15%, when compared with the second quarter of 2024, which did not include VOXX. Gentex completed its acquisition of VOXX on April 1, 2025, which contributed $78.8 million of revenue for the second quarter of 2025. Core Gentex revenue (excluding VOXX) was $579.0 million in the second quarter of 2025, which was a 1% increase versus the second quarter of 2024, in comparison to light vehicle production in the Company's primary markets that decreased by approximately 2% in the second quarter of 2025 versus the second quarter of 2024.

Core Gentex Automotive net sales (excluding VOXX) for the second quarter of 2025 were $566.5 million, a 1% increase when compared with automotive net sales of $559.3 million in the second quarter of 2024. The 5% decrease in automotive mirror unit shipments in the second quarter of 2025 to 11.6 million units, compared with 12.2 million units in the second quarter of 2024, was driven by a 13% quarter over quarter decrease in exterior auto-dimming mirror unit shipments, while total interior auto-dimming mirror unit shipments were relatively flat quarter over quarter.

The below table represents the Company's auto-dimming mirror unit shipments for the three and six months ended June 30, 2025, and 2024 *(in thousands):*

|  | Three Months Ended June 30, 2025 | 2024 | % Change | Six Months Ended June 30, 2025 | 2024 | % Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| North American Interior Mirrors | 2,221 | 2,346 | (5)% | 4,470 | 4,608 | (3)% |
| North American Exterior Mirrors | 1,524 | 1,705 | (11)% | 2,895 | 3,326 | (13)% |
| Total North American Mirror Units | 3,746 | 4,051 | (8)% | 7,365 | 7,934 | (7)% |
| International Interior Mirrors | 5,313 | 5,189 | 2% | 10,453 | 10,744 | (3)% |
| International Exterior Mirrors | 2,517 | 2,944 | (15)% | 5,300 | 5,978 | (11)% |
| Total International Mirror Units | 7,830 | 8,133 | (4)% | 15,753 | 16,721 | (6)% |
| Total Interior Mirrors | 7,534 | 7,535 | —% | 14,923 | 15,352 | (3)% |
| Total Exterior Mirrors | 4,041 | 4,649 | (13)% | 8,194 | 9,304 | (12)% |
| Total Auto-Dimming Mirror Units | 11,575 | 12,184 | (5)% | 23,118 | 24,655 | (6)% |

#### Note: Percent change and amounts may not total due to rounding.

Core Gentex Other net sales (excluding VOXX) were $12.5 million in the second quarter of 2025, compared to $13.6 million in the second quarter of 2024, a decrease of 8%. Other net sales for the second quarter of 2025 included biometric product sales of $0.2 million generated from the Company's GalvanEyes subsidiary (acquired in the fourth quarter of 2024), which owned 100% of BioCenturion in the second quarter of 2025, as well as $0.2 million in sales of medical devices from the previously acquired eSight Go product line, which as previously announced, began shipments during the third quarter of 2024. Fire protection sales were $8.1 million in the second quarter of 2025, compared to $7.4 million in the same quarter of last year. Dimmable aircraft sales decreased during the second quarter of 2025 to $4.0 million, compared to $6.3 million in the same quarter of last year.

*Cost of Goods Sold.* As a percentage of net sales, cost of goods sold decreased to 65.8% for the second quarter of 2025, versus 67.1% in the same quarter last year, which did not include VOXX. The quarter over quarter increase in the gross margin resulted primarily from purchasing cost reductions, improved product mix, and operational efficiencies, which were partially offset by tariff related costs that were not reimbursed in the quarter. The core Gentex gross margin (excluding VOXX) was 35.3%, representing a 240 basis-point increase compared to the second quarter of 2024. The consolidated adjusted gross margin was 34.6%, reflecting the exclusion of a $2.5 million expense related to purchase accounting adjustments recorded under ASC 805, "*Business Combinations*," in connection with the VOXX acquisition.

*Operating Expenses.* Total operating expenses were $106.8 million in the second quarter of 2025, an increase of 45% quarter over quarter or $33.1 million, compared to $73.7 million in the second quarter of 2024, which did not include VOXX. The increase was primarily due to the VOXX acquisition, which accounted for $23.9 million of the increase (excluding acquisition and severance costs). Additionally, in the second quarter of 2025, the Company incurred $2.5 million in acquisition-related costs and $6.8 million in severance related expenses, neither of which were present in the second quarter of 2024. Core Gentex operating expenses (excluding VOXX) were $80.7 million compared to $73.7 million during the second quarter of 2024. The increase in core Gentex operating expenses included $1.0 million in acquisition-related costs and $6.2 million attributable to Gentex-specific severance expenses.

Engineering, research and development ("E, R & D") expenses for the second quarter of 2025 increased by $7.5 million, when compared with the second quarter of 2024, primarily due to the VOXX acquisition, as well as staffing and engineering related professional fees.

Selling, general and administrative ("S, G & A") expenses increased by 63% or $18.8 million for the second quarter of 2025, compared to the second quarter of 2024, primarily due to the VOXX acquisition. S, G & A expenses were approximately 7% of net sales in the second quarter of 2025, compared to 5% in the second quarter of 2024, which did not include VOXX.

*Total Other Loss, Net.* Total other loss, net for the second quarter of 2025 was $3.0 million, when compared with $13.6 million for the second quarter of 2024. During the second quarter of 2025, the total other loss included an impairment of $6.2 million related to one of the Company's equity method investments. In comparison, total other loss, net, in the second quarter of 2024 included a $16.6 million loss resulting from the fair value adjustment of its investment in VOXX.

*Provision for Income Taxes.* The effective tax rate was 17.2% for, and an income tax expense of $19.8 million was recorded in, the second quarter of 2025, compared to an effective tax rate of 15.1% for, and an income tax expense of $15.3 million recorded in, the same quarter of 2024. The quarter over quarter change in the effective tax rate was driven by lower tax benefits on stock-based compensation in the second quarter of 2025, compared to the second quarter of 2024, as well as reduced quarter over quarter benefit from the FDII deduction. Generally, effective tax rates for the Company differ from statutory federal income tax rates, due to provisions for state and local income taxes, the FDII deduction, and research and development tax credits.

*Net Income Attributable to Gentex Corporation.* Net income attributable to Gentex for the second quarter of 2025 was $96.0 million, up 12% from a net income attributable to Gentex of $86.0 million in the second quarter of 2024, which did not include VOXX. The increase in net income for the second quarter of 2025 was driven by higher income from operations, supported by gross margin expansion. Consolidated adjusted net income attributable to Gentex of $105.8 million was up 23% on a quarter-over-quarter basis, when adjusted for acquisition-related expenses and severance costs.

*Earnings Per Share Attributable to Gentex Corporation.* The Company had earnings per diluted share attributable to Gentex for the second quarter of 2025 of $0.43, which compared to earnings per diluted share of $0.37 for the second quarter of 2024, which did not include VOXX. Adjusted earnings per diluted share attributable to Gentex was $0.47, a 27% increase when adjusted for acquisition-related expenses and severance costs.

### NON-GAAP FINANCIAL MEASURES:

Financial information for the three months ended June 30, 2025 is provided in accordance with Generally Accepted Accounting Principles ("GAAP"). In addition, the Company believes that it is useful for the three months ended June 30, 2025 to provide certain non-GAAP measures, including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Income (Loss) from Operations, Adjusted Net Income (Loss) Attributable to Gentex Corporation, and Adjusted Earnings per Diluted Share Attributable to Gentex Corporation, with the adjustments set forth in the "Reconciliation of Non-GAAP Measures" table below. This non-GAAP financial information allows investors to evaluate current performance in the Company's core business in relation to historical performance by excluding the impact of certain purchase price adjustments pursuant to ASC 805, *Business Combinations*, acquisition related costs, and severance costs set forth in the table below.

The Company believes that the presentation of these non-GAAP financial measures provides insight into the Company's core performance and trends with respect to the same. Management of the Company similarly uses such non-GAAP financial measures in assessing the business internally. A reconciliation of Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Income (Loss) from Operations, Adjusted Net Income (Loss) Attributable to Gentex Corporation, and Adjusted Earnings per Diluted Share Attributable to Gentex Corporation to the most directly comparable GAAP measures is provided in the attached "Reconciliation of non-GAAP Measures" tables below. Like all non-GAAP financial measures, these non-GAAP measures are intended to supplement, not to replace, GAAP measures. All non-GAAP financial measures are subject to inherent limitations because not all of the expenses required by GAAP are included.

*Reconciliation of Non-GAAP Measures*

*(Unaudited)*

|  | Supplemental Information Gentex | VOXX | Three Months Ended June 30, Consolidated 2025 | Consolidated 2024 |
| --- | ---: | ---: | ---: | ---: |
| Gross Profit - GAAP | $204,479,347 | $20,811,556 | $225,290,903 | $188,563,309 |
| Inventory purchase price step-up adjustments pursuance to ASC 805 | — | 2,498,442 | 2,498,442 | — |
| Adjusted Gross Profit - (Non-GAAP) | $204,479,347 | $23,309,998 | $227,789,345 | $188,563,309 |
| Gross Margin - GAAP | 35.3% | 26.4% | 34.2% | 32.9% |
| Adjusted Gross Margin - (Non-GAAP) | 35.3% | 29.6% | 34.6% | 32.9% |
| Operating Expenses - GAAP | 80,718,427 | 26,052,341 | 106,770,768 | 73,679,287 |
| Less: |  |  |  |  |
| Acquisition Related Costs | 957,207 | 1,515,844 | 2,473,051 | — |
| Severance Costs | 6,196,902 | 587,234 | 6,784,136 | — |
| Adjusted Operating Expenses - (Non-GAAP) | $73,564,318 | $23,949,263 | $97,513,581 | $73,679,287 |
| Income (Loss) from Operations - GAAP | 123,760,920 | (5,240,785) | $118,520,135 | $114,884,022 |
| Inventory purchase price step-up adjustments pursuance to ASC 805 | — | 2,498,442 | 2,498,442 | — |
| Acquisition Related Costs | 957,207 | 1,515,844 | 2,473,051 | — |
| Severance Costs | 6,196,902 | 587,234 | 6,784,136 | — |
| Adjusted Income (Loss) from Operations - (Non-GAAP) | $130,915,029 | $(639,265) | $130,275,764 | $114,884,022 |

**Adjusted Net Income (Loss) and Adjusted Earnings per Diluted Share:** Adjusted Net Income Attributable to Gentex Corporation and Adjusted Earnings per Diluted Share Attributable to Gentex Corporation are also presented as supplemental measures of the Company's performance for the same reasons set forth above. Adjusted Net Income (Loss) is defined as Net Income (Loss) adjusted for purchase price adjustments pursuant to ASC 805, acquisition related costs, and severance costs during the second quarter of 2025. Adjusted Earnings per Diluted Share is defined as Adjusted Net Income (Loss) divided by weighted average diluted shares outstanding.

*Reconciliation of Non-GAAP Measures (continued)*

*(Unaudited)*

|  | Gentex | VOXX | Three Months Ended June 30, Consolidated 2025 | Consolidated 2024 |
| --- | ---: | ---: | ---: | ---: |
| Net Income (Loss) Attributable to Gentex Corporation - GAAP | $100,082,631 | $(4,043,047) | $96,039,584 | $86,040,438 |
| Inventory purchase price step-up adjustments pursuance to ASC 805, net of tax | — | 2,068,710 | 2,068,710 | — |
| Acquisition Related Costs, net of tax | 792,567 | 1,255,119 | 2,047,686 | — |
| Severance Costs, net of tax | 5,131,035 | 486,230 | 5,617,265 | — |
| Net Income (Loss) Attributable to Gentex Corporation - (Non-GAAP) | $106,006,233 | $(232,988) | $105,773,245 | $86,040,438 |
| Adjusted Earnings Per Share: |  |  |  |  |
| Basic | $0.48 | $— | $0.47 | $0.37 |
| Diluted | $0.48 | $— | $0.47 | $0.37 |

### SIX MONTHS ENDED JUNE 30, 2025 VERSUS SIX MONTHS ENDED JUNE 30, 2024

*Net Sales.* Consolidated net sales for the six months ended June 30, 2025 increased by $71.5 million or 6%, when compared with the same period in 2024, with VOXX contributing $78.8 million of revenue during the six months ended June 30, 2025 and nothing in the prior year period. Core Gentex revenue (excluding VOXX) was $1.2 billion in the six months ended June 30, 2025, which was a 1% decrease versus the six months ended June 30, 2024, in comparison to light vehicle production in the Company's primary markets that decreased by approximately 2% versus the first half of 2024.

Gentex Automotive net sales were relatively flat for the six months ended June 30, 2025 as compared to the same prior period in 2024, with approximately $1.1 billion of net sales in each period. Sales during the six months ended June 30, 2025, were negatively impacted by lower-than-expected sales into the China market due to the impact of counter-tariffs. There was a 6% decrease in automotive mirror unit shipments in the six months ended June 30, 2025 to 23.1 million units, compared with 24.7 million units in the same period in 2024, which was driven by a 3% period over period decrease in interior auto-dimming mirror unit shipments, and a 12% period over period decrease in exterior auto-dimming mirror unit shipments.

Gentex Other net sales were $25.4 million in the six months ended June 30, 2025, compared to $26.3 million in the same period of 2024, a decrease of 3%. Other net sales for the six months ended June 30, 2025, included biometric product sales of $1.1 million generated from the Company's GalvanEyes subsidiary, as well as $0.6 million in sales of medical devices from the eSight Go product line. Fire protection sales were $14.8 million in the six months ended June 30, 2025, compared to $14.2 million in the same period of last year. Dimmable aircraft sales decreased during the six months ended June 30, 2025 to $8.9 million, compared to $12.1 million in the same period of last year.

*Cost of Goods Sold.* As a percentage of net sales, cost of goods sold decreased to 66.2% for the six months ended June 30, 2025, versus 66.4% in the same period last year, which did not include VOXX. The change in the gross margin was driven in part by the addition of VOXX, which had a negative impact of 50 basis points for the six months ended June 30, 2025, as well as increased tariff related costs that were not reimbursed in the period. Those factors were, however, offset by the positive impact of purchasing cost reductions, improved product mix, and operational efficiencies.

*Operating Expenses.* Total operating expenses were $185.5 million in the six months ended June 30, 2025, an increase of 26.6% year over year or $38.9 million, compared to $146.6 million in the same period of 2024, which did not include VOXX. The increase was primarily due to the VOXX acquisition, which accounted for $23.9 million of the increase (excluding acquisition and severance costs). Additionally, the Company incurred $3.2 million in acquisition-related costs and $9.7 million in severance related expenses, neither of which were present in the comparable prior year period.

E, R & D expenses for the six months ended June 30, 2025 increased by $11.2 million, when compared with the same period of 2024, due to the VOXX acquisition, as well as staffing and engineering related professional fees.

S, G & A expenses for the six months ended June 30, 2025 increased $18.1 million to $78.4 million, when compared to $60.4 million for the same period in 2024. S, G & A expenses were approximately 6% of net sales in the six months ended June 30, 2025, and approximately 5% of net sales in the same period in 2024. S, G, & A expenses increased on a year over year basis primarily due to the VOXX acquisition.

*Total Other Loss, Net.* Total other loss, net for the six months ended June 30, 2025 was $2.4 million, compared $15.3 million for the same period last year. During the six months ended June 30, 2025, the total other loss, net included an impairment of $6.2 million related to one of the Company's equity method investments. In comparison, the six months ended June 30, 2024, included a $23.8 million loss resulting from the fair value adjustment of the Company's investment in VOXX.

*Provision for Income Taxes.* The effective tax rate was 16.8% for the six months ended June 30, 2025, compared to 15.2% for the same period of 2024. The period over period change in the effective tax rate was driven by lower tax benefits on stock-based compensation compared to the first six months of 2024. Generally, effective tax rates for the Company differ from statutory federal income tax rates, due to provisions for state and local income taxes, the FDII deduction, and research and development tax credits.

*Net Income Attributable to Gentex Corporation.* Net income attributable to Gentex Corporation for the six months ended June 30, 2025 decreased by $3.4 million or 2% to $190.9 million, compared to $194.3 million in the same period last year, which did not include VOXX. The decrease in net income for the six months ended June 30, 2025, was primarily the result of lower income from operations and higher operating expenses compared to the same prior period.

*Earnings Per Share Attributable to Gentex Corporation.* The Company had earnings per diluted share attributable to Gentex for the six months ended June 30, 2025 of $0.85, compared to earnings per diluted share of $0.84 for the six months ended June 30, 2024, which did not include VOXX.

### FINANCIAL CONDITION:

The Company's cash and cash equivalents as of June 30, 2025 were $119.8 million, a decrease of $113.5 million, compared to $233.3 million as of December 31, 2024. The decrease was primarily due to cash outflows related to the acquisition of VOXX, as well as share repurchases, capital expenditures, dividend payments, and investment purchases, which was partially offset by cash flows from operations and proceeds from the sale of investments during the six months ended June 30, 2025.

Short-term investments as of June 30, 2025 were $21.3 million, down from $22.3 million as of December 31, 2024, and long-term investments were $267.0 million as of June 30, 2025, down from $339.6 million as of December 31, 2024.

Accounts receivable as of June 30, 2025 increased approximately $77.6 million compared to December 31, 2024, primarily due to the sequential increase in sales, which includes the addition of VOXX sales, as well as the timing of customer payments during the six months ended June 30, 2025.

Inventories as of June 30, 2025 were $475.7 million, compared to $436.5 million as of December 31, 2024, primarily due to an increase in finished goods primarily as a result of the acquisition of VOXX.

Accounts payable as of June 30, 2025 increased approximately $36.4 million to $204.7 million, compared to December 31, 2024, primarily driven by timing of payments within the period and the addition of VOXX.

Accrued liabilities as of June 30, 2025 increased approximately $43.9 million compared to December 31, 2024, primarily due to increases in accrued salaries and wages and accrued royalties payable driven by the VOXX acquisition.

Cash flow from operating activities for the six months ended June 30, 2025 increased $55.5 million to $314.6 million, compared with $259.1 million during the same period last year, primarily due to changes in working capital.

Capital expenditures for the six months ended June 30, 2025 were approximately $67.8 million, compared with approximately $63.6 million for the same period last year. The increase was primarily due to timing of payments and an increase in expenditures related to building and facility construction projects beginning during the second half of 2024, as further described below.

The Company believes its existing and planned facilities are currently suitable, adequate, and have the capacity required for current and near-term planned business. Nevertheless, the Company continues to evaluate longer term facility needs. During the fourth quarter of 2024, the Company completed construction on two building expansions. The Company expanded its current distribution center by an additional 300,000 square feet, at a total cost of approximately $40 million. The Company also expanded one of its manufacturing facilities by an additional 60,000 square feet, with a total cost of approximately $20 million. Both of these expansion projects were funded with cash and cash equivalents on hand. The Company also entered into a multi-year lease for 32,000 square feet of manufacturing space at a location approximately 20 miles from its main campus that began operations during the second quarter of 2023.

During 2023, the Company began the design and initial build phase of the previously announced Gentex Discovery Preschool, an on-site daycare and preschool designed to provide Company employees with convenient, cost-effective access to quality childcare. As previously disclosed, construction began in the third quarter of 2024, with an expected completion date in the second half of 2025. The total cost of the building project is expected to be $15 - $20 million, which is also being funded with cash and cash equivalents on hand.

The Company estimates that it currently has building capacity to manufacture approximately 42 - 45 million interior mirror units annually and approximately 19 - 22 million exterior mirror units annually, based on current product mix. The Company also evaluates equipment capacity on an ongoing basis and adds equipment as needed.

Management considers the current working capital and long-term investments, in addition to internally generated cash flow, its Credit Agreement, and credit worthiness, to be sufficient to cover anticipated cash needs for the foreseeable future considering its contractual obligations and commitments.

The following is a summary of working capital and long-term investments:

|  | June 30, 2025 | December 31, 2024 |
| --- | ---: | ---: |
| Working Capital | $725,042,761 | $784,635,494 |
| Fixed Income Long-Term Investments | 101,014,623 | 141,961,474 |
| Total | $826,057,384 | $926,596,968 |

The Company has a previously announced share repurchase plan under which the Board of Directors has authorized the repurchase of shares of the Company's common stock, which remains a part of the broader publicly disclosed capital allocation strategy. Future share repurchases may vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including, but not limited to, the market price of the stock, anti-dilutive effect of repurchases, and available cash). During the six months ended June 30, 2025, the Company repurchased 8,802,415 shares. The Company had 646,983 shares remaining under the plan as of June 30, 2025, as is further detailed in Part II, Item 2 of this Form 10-Q. On July 16, 2025, the Company announced a new share repurchase authorization of 40 million shares in addition to the Company's prior repurchase authorization. With the new authorization, the Company has approximately 40.6 million shares available for repurchase under its share repurchase plan.

### BUSINESS UPDATE

For the second quarter of 2025, the Company reported net sales of $657.9 million, compared to net sales of $572.9 million in the second quarter of 2024 (which did not include VOXX), a 15% increase quarter over quarter. Core Gentex revenue (excluding VOXX) for the second quarter of 2025 increased 1% versus the second quarter of 2024, while global light vehicle production in North America, Europe, and Japan/Korea decreased approximately 2% in the second quarter of 2025, when compared to the second quarter of 2024.

In the second quarter of 2025, the Company had 18 net new nameplate launches of interior and exterior auto-dimming mirrors and electronic features, bringing the total number of nameplates launched to 139. Over half of the net launches in the quarter included advanced feature launches.

### PRODUCT UPDATE

#### Mirror Systems

In 2023, The People's Republic of China newly issued GB15084 and the related procedures, which allow for the Company's frameless inside mirrors to be used on vehicles in the China domestic market.

The United Nations Economic Commission (UN ECE) recently established a working group (Task Force Glare Protection) on the subject of glare in road traffic. The Task Force Glare Protection will investigate the burden and danger of road glare from vehicle headlamps and initiate necessary measures. The Company believes its auto-dimming mirror products can be a solution for necessary measures initiated by this UN ECE task force.

#### Camera Systems

Full Display Mirror® began production in 2015. Current automotive design trends are yielding vehicles with small rear windows that are often further obstructed by headrests, passengers, and roof support pillars, which can significantly hinder the mirror’s rearward view. The Company's Full Display Mirror® is an intelligent rear vision system that uses a custom, internally or externally mounted video camera and mirror-integrated video display to optimize a vehicle driver’s rearward view. This rear vision system consists of a hybrid Full Display Mirror® that offers bi-modal functionality. In mirror mode, the product functions as an auto-dimming rearview mirror which means that during nighttime driving, digital light sensors talk to one another via a microprocessor to automatically darken the mirror when glare is detected. With the flip of a switch, the mirror enters display mode, and a clear, bright display appears through the mirror’s reflective surface, providing a wide, unobstructed rearward view. The bi-modality of the Full Display Mirror® is essential, because in the event of any failure of the camera or display, the product is able to function as a mirror, which meets long-standing safety requirements in the automotive industry. In addition, the driver has the ability to switch between modes to accommodate usage preferences for various weather conditions, lighting conditions, and driving tasks.

As of the second quarter of 2025, the Company is shipping production Full Display Mirrors® to eighteen different automaker customers and 139 vehicle nameplates. For more information regarding the full display mirror please go to https://www.fulldisplaymirror.com/. The Company remains confident that ongoing discussions with other customers may cause such customers to consider more fully adding the Full Display Mirror® into their product roadmap for future vehicles.

To enhance capability and usability of the Company's Full Display Mirror®, the Company previously introduced its three-camera rear vision system that streams rear video in multiple composite views to its Full Display Mirror®. The Company believes it is the industry’s first practical and comprehensive rear vision solution designed to meet automaker, driver, safety, and regulatory requirements. The Company's rear vision system, known generally as a camera monitoring system ("CMS"), uses three cameras to provide a comprehensive view of the sides and rear of the vehicle. The side-view cameras are discretely housed in downsized, automatic-dimming exterior mirrors. Their video feeds are combined with that of a roof-mounted or rear window-based camera and stitched together into multiple composite views, which are streamed to the driver using the Full Display Mirror®. The system’s modular nature lets the automaker customize functionality while offering it as an affordable, optional feature thereby enhancing safety by allowing the system to fail safe. During any failures due to weather conditions or otherwise that disrupt the digital view, drivers can still safely use the interior and exterior mirrors. The system also supports user preference by permitting drivers to use standard mirror views, camera views, or both. The system can also be tuned to meet the various regulatory field-of-view requirements around the world by using different types of flat and curved glass, combined with simple alterations to the video viewing modes. Downsized exterior mirrors provide automakers with significant weight savings and fuel efficiency improvements. To further enhance safety, the Company's CMS solution can also work in conjunction with a vehicle’s side blind zone warning system. When a trailing vehicle enters a side blind zone, a warning indicator illuminates in both the interior and exterior mirrors, while the corresponding side-view video feed appears in the display until the vehicle passes.

In July 2016, a revision to UN-ECE Regulation 46 was published with an effective date of June 18, 2016, which allows for camera monitoring systems to replace mirrors in Japan and European countries. Since January 2017, camera monitoring systems are also permitted as an alternative to replace mirrors in the Korea market. As noted, China released an updated version of its GB15084, effective in 2023, which allows for camera monitoring systems, frameless mirrors and aspheric (free form) glass surfaces. Notwithstanding the foregoing, the Company continues to believe rearview mirrors provide a robust, simple and cost-effective means to view the surrounding areas of a vehicle and remain a primary safety function for rear vision today. Cameras, when used as the primary rear vision delivery mechanism, have some inherent limitations, such as: electrical failure; cameras being blocked or obstructed; depth perception challenges; and viewing angles of the camera. Nonetheless, the Company continues designing and manufacturing not only rearview mirrors, but CMOS imagers and video displays as well. The Company believes that combining video displays with mirrors may well provide a more robust product by addressing all driving conditions in a single solution that can be controlled by the driver. The Company has also previously announced that it continues development in the areas of imager performance, camera dynamic range, lens design, image processing from the camera to the display, and camera lens cleaning. The Company acknowledges that as such technology evolves over time, such as cameras replacing mirrors and/or autonomous driving, there is increased competition.

The Company began shipping Full Display Mirror® with Digital Video Recording ("DVR") capability in 2020. This mirror and system launched in the Japan market and combines the superior functionality of the Full Display Mirror® with the added capability to record video from the rearward facing and forward-facing cameras simultaneously. The data is stored to an SD storage card as requested by the customer. This integrated solution provides consumers with the features they want, while allowing the OEM to control the integration and execution in the vehicle. In the first quarter of 2025, the Company launched the Gentex ReVu app, which allows a user to connect to the mirror and download the images or recordings from the DVR to the app on the user's phone. Shipments to customers of this Full Display Mirror® with DVR to be used with the app are underway.

The Company's HomeLink® products are the auto industry's most widely used and trusted car-to-home communication system, with an estimated 50 million units on the road. The system consists of two or three in-vehicle buttons that can be programmed to operate garage doors, security gates, home lighting, and other radio-frequency-controlled devices. In 2017, the Company demonstrated the next generation of HomeLink®, commonly referred to as HomeLink app, which uses both RF and wireless cloud-based connectivity to deliver complete vehicle-to-home automation. With the HomeLink app, a HomeLink® button press communicates with the HomeLink app on the user’s smartphone. The app contains predefined, user-programmed actions, from single device operations to entire home automation scenes. The app, in turn, communicates to the home’s smart hub over the cloud, activating the appropriate devices, including security systems, door locks, thermostats, lighting, and other home automation devices, providing comprehensive vehicle-to-home automation. The ability to prepare the home for arrival or departure can occur with one button press. For automakers, this functionality allows them to offer customizable, yet proven solutions without the engineering efforts or security concerns associated with integrating third party software into the vehicle’s computer network. The Company also continues work on providing HomeLink® applications for alternative automobile and vehicle types which include, but are not limited to, motorcycles, mopeds, snowmobiles, tractors, combines, lawn mowers, loaders, bulldozers, road-graders, backhoes, and golf carts. In 2021, the Company announced Volkswagen as the first automaker to offer Bluetooth® enabled mirror for home automation that works in conjunction with the HomeLink app.

In 2016, the Company announced a partnership with TransCore to provide automobile manufacturers with a vehicle-integrated tolling solution that enables motorists to drive on nearly all U.S. toll roads without a traditional toll tag on the windshield. Currently more than 75 percent of new car registrations are in states with toll roads with over 50 million drivers accessing these roads each year. The interior mirror is the optimal location for a vehicle-integrated toll transponder, and it eliminates the need to affix multiple toll tags to the windshield and helps automakers seamlessly integrate toll collection into the car. Since the Integrated Toll Module® or ITM® enables travel across almost all United States toll roads, and others in North America, motorists would no longer need multiple toll tags for different regions of the country or to manage multiple toll accounts. The Company's vehicle-integrated solution simplifies and expedites local, regional, and national travel. ITM® provides transportation agencies with an interoperability solution without costly infrastructure changes to the thousands of miles of toll lanes throughout North America. The Company believes that this product can still represent another growth opportunity over the next several years.

The Company previously announced its first OEM award of ITM® with Audi. Currently, the Company is shipping ITM® on 11 Audi platforms, which are: the A4, A5, A6, A7, A8, Q5, Q5 Sportback, Q7, Q8, e-tron, and the e-tron Sportback. The Company expects further ITM® nameplate launches with Audi during 2025. The Company is also shipping ITM® to a second OEM customer, Mercedes, for the EQS model. In 2020, the Company was honored with an Automotive News PACE Award for its ITM® product, which recognizes automotive suppliers for superior innovation, technological advancement, and business performance.

Further, the Company has previously announced an embedded biometric solution for vehicles that leverages iris scanning technology to create a secure environment in the vehicle. There are many use cases for authentication, which range from vehicle security to start functionality to personalization of mirrors, music, seat location, and temperature, to the ability to control transactions not only for the ITM® system, but also the ride sharing car of the future. The Company believes iris recognition is among the most secure forms of biometric identification, with a false acceptance rate as low as one in 10 million, far superior to facial, voice, and other current biometric systems. The Company's future plans include integrating biometric authentication with HomeLink® and HomeLink® app. The biometric system will allow HomeLink® to provide added security and convenience for multiple drivers by activating the unique home automation presets of different authorized users.

In 2021, the Company announced a partnership, in the ordinary course of business, with Simplenight to provide drivers and vehicle occupants with access to enhanced mobile capability for booking personalized entertainment and lifestyle experiences in addition to everyday purchases. Simplenight delivers a customizable and robust platform that enables brands to globally offer real-time book-ability across multiple categories such as dining, accommodations, attractions, events, gas, parking, shopping and more. The platform is unique in that it is designed to seamlessly integrate into automaker infotainment and navigation systems, as well as mobile applications and voice assistants. Simplenight can be integrated into the Company's current and future connected vehicle technologies, including HomeLink®, which, again, is the automotive industry’s leading car-to-home automation system. HomeLink® consists of vehicle-integrated buttons that can be programmed to operate a myriad of home automation devices. Integration of Simplenight into the Company's HomeLink® app is underway and will allow users to program their HomeLink® buttons and control cloud-based devices from their vehicles.

#### Dimmable Devices

The Company previously announced that it is providing variably dimmable windows for the Boeing 787 Dreamliner series of aircraft. The Company continues to work with other aircraft manufacturers that have an interest in this technology regarding potential additional programs. In 2019, the Company announced that its latest generation of dimmable aircraft windows will be offered as optional content on the new Boeing 777X. In 2019, the first production shipments of variably dimmable windows were made to Boeing for the 777X program. As also previously announced, Airbus is now offering, as optional content, the Company's dimmable aircraft windows on its aircraft, with production having begun in 2021.

#### Medical

In 2020, the Company unveiled an innovative lighting technology for medical applications that was co-developed with Mayo Clinic. This new lighting concept represents the collaboration of a global, high-technology electronics company with a world leader in health care. The Company's new intelligent lighting system combines ambient room lighting with camera-controlled, adaptive task lighting to optimize illumination for surgical and patient-care environments. The system was developed over an 18-month period of collaboration between Company engineers and Mayo Clinic surgeons, scientists, and operating room staff. The teams researched, designed, and rapidly iterated multiple prototypes in order to develop unique features intended to address major gaps in current surgical lighting solutions. Through 2025, the Company has continued to further develop and work on the intelligent medical lighting system in order to assess system performance and work toward obtaining any necessary approvals.

In November 2023, in the ordinary course of business, the Company acquired certain technology assets from eSight. The technology acquired provides the most advanced and versatile low-vision smart glasses available for those with visual impairments and is compatible with more than 20 eye conditions including Macular Degeneration, Diabetic Retinopathy, and Stargardt disease. eSight4 is a Class 1 Medical Device that is registered with the FDA, registered with EUDAMED, and inspected by Health Canada. During the third quarter of 2024, the Company recorded its first official sales of medical devices from shipments of the e-Sight Go product.

#### Biometric Products

In November 2024, the Company acquired GalvanEyes, LLC, which is the managing partner and 50% owner of the BioCenturion joint venture with Eyelock, a majority-owned subsidiary of VOXX. BioCenturion specializes in creating and deploying authentication solutions to help clients secure their worlds, optimize their workloads, and organize their data through customized biometric solutions. BioCenturion's significant IP portfolio, including more than 100 patents granted, patents pending, and proprietary technology enables a high-speed, convenient, touchless, contactless, frictionless, and secure authentication of individuals across different business verticals. With the acquisition of VOXX on April 1, 2025, which included its majority-owned subsidiary EyeLock, the Company now owns a majority interest in BioCenturion. The acquisition has also enabled the Company to gain broader access to the EyeLock® iris biometric technology, which will provide more product applications in the Company's automotive, aerospace, and medical markets.

#### Fire Protection

During the second quarter of 2025, the Company began shipments of its PLACE product line. PLACE is a suite of advanced, multi-functional smoke and carbon monoxide alarms designed to elevate home safety, comfort, and security through room-specific intelligence. The system is managed via an intuitive mobile app and features an industry-first low-frequency sounder, engineered to improve alarm effectiveness for deep sleepers, children, and individuals with hearing impairments. It also aligns with emerging safety standards, including updated residential codes adopted in states like California.

#### VOXX Products

With the acquisition of VOXX on April 1, 2025, the Company made a strategic addition to its portfolio of products, as VOXX's product lines will both compliment the Company's existing businesses and help Gentex continue to expand in the consumer technology and connected home space. As a subsidiary of Gentex, VOXX will continue to manufacture and distribute various products across the automotive OEM and aftermarket electronics, consumer technologies, and premium audio global markets.

### OTHER

Automotive revenues represent approximately 88% - 92% of the Company's total revenue, consisting of interior and exterior electrochromic automatic-dimming rearview mirrors and other automotive electronics.

The Company has been, is being, and will continue to be impacted by tariffs, trade regulatory actions, and changes in international trade policies as further explained below.

The Company continues to experience pricing pressure from automotive customers and competitors, in addition to tariff increases, raw material cost increases, labor cost increases, and logistics cost increases, which will continue to cause downward pressure on its sales and profit margins. The Company works continuously to offset these supply chain issues and inflationary pressures with engineering and purchasing cost reductions, productivity improvements, increases in unit sales volume, and negotiations with customers to reduce the impact of the inflationary pressures, but there is no assurance the Company will be able to do so in the future.

Because the Company sells its products throughout the world, and automotive manufacturing is highly dependent on economic conditions, the Company is affected by uncertain economic conditions that reduce demand for its products, including the current inflationary environment and tariffs. The Company is likewise affected by industry-wide parts shortages and global supply constraints and labor shortages.

The Company believes that its patents and trade secrets provide it with a competitive advantage in dimmable devices, electronics, and other features that it offers for the automotive, premium audio, aerospace, medical, and biometrics industry. Claims of patent infringement can be costly and time-consuming to address. To that end, the Company obtains intellectual property rights in the ordinary course of business to strengthen its intellectual property portfolio and to minimize the risk of infringement.

The Company does not have any significant off-balance sheet arrangements or commitments that have not been recorded in its consolidated financial statements.

### OUTLOOK

The Company’s current forecasts for light vehicle production for the third quarter of 2025, and full years 2025 and 2026, are based on the mid-July 2025 S&P Global Mobility forecast for light vehicle production in North America, Europe, Japan/Korea, and China. Global light vehicle production for the third quarter of 2025 is expected to be relatively flat versus the third quarter of 2024, while light vehicle production in our primary markets is expected to be down approximately 1% in the third quarter of 2025 versus the third quarter of 2024. Global light vehicle production for the fourth quarter of 2025 is expected to be down approximately 6% versus the fourth quarter of 2024, including China, as well as across Gentex’s primary markets of North America, Europe, and Japan/Korea. Full-year 2025 production in the Company's primary markets is expected to be down 3% year-over-year, a notable downgrade from earlier forecasts, and production in North America is projected to fall approximately 4% in 2025 compared to 2024. Third quarter of 2025, and calendar years 2025 and 2026, forecasted light vehicle production volumes are shown below:

*Light Vehicle Production (per S&P Global Mobility mid-April light vehicle production forecast)*

*(in Millions)*

| Region | Q3 2025 | Q3 2024 | % Change | Calendar Year 2026 | Calendar Year 2025 | Calendar Year 2024 | 2026 vs 2025 % Change | 2025 vs 2024 % Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| North America | 3.78 | 3.77 | —% | 14.32 | 14.85 | 15.45 | (4)% | (4)% |
| Europe | 3.69 | 3.73 | (1)% | 16.80 | 16.74 | 17.17 | —% | (3)% |
| Japan and Korea | 2.92 | 2.90 | 1% | 11.34 | 11.87 | 11.98 | (4)% | (1)% |
| China | 7.36 | 7.30 | 1% | 31.24 | 31.23 | 30.09 | —% | 4% |
| Total Light Vehicle Production | 17.75 | 17.70 | —% | 73.70 | 74.69 | 74.69 | (1)% | —% |

Based on the aforementioned light vehicle production forecast, first-half 2025 results, reduced demand in the China market stemming from recently implemented counter-tariffs, and the expected incremental sales contribution from the VOXX acquisition, Gentex announced the revision of its full-year 2025 guidance as of July 25, 2025. This most recent guidance reflects the anticipated impact of all known tariffs effective as of July 25, 2025.

### 2025 Annual Guidance (as of July 25, 2025)

- Consolidated Revenue: $2.44 – $2.61 billion *(Previously: $2.15 – $2.32 billion)*
- Gentex primary markets: $2.10 – $2.20 billion
- Gentex China market: $100 – $125 million
- VOXX Revenue estimate: $240 – $280 million
- Gross Margin: 33% – 34% *(New consolidated guidance)*
- Gentex (stand-alone): 34% – 34.5% (Previously 33% - 34%)
- VOXX (stand-alone): 27% – 29%
- Operating Expenses *(excluding severance*): $370 – $390 million
- Gentex: $300 – $310 million *(unchanged)*
- VOXX: $70 – $80 million
- Tax Rate: 16% – 17% *(previously: 15% – 17%)*
- Capital Expenditures: $100 – $125 million *(unchanged)*
- Depreciation & Amortization: $91 – $96 million *(New consolidated guidance)*
- Gentex: $90 – $95 million
- VOXX: $1 - $3 million

Due to ongoing volatility in customer orders and vehicle production volumes, uncertainty related to tariffs, the Ukraine-Russia war, Israel-Hamas war, supply-end labor shortages, and overall economic uncertainty, the Company believes that revenue remains difficult to forecast for the remainder of the year and beyond. Ongoing uncertainties remain, including: prolonged and intensifying trade wars, including the impacts of already in place, and potential additional future tariffs, trade restrictions, and retaliatory measures; light vehicle production levels; impacts of regulation changes; automotive plant shutdowns; vehicle sales rates in Europe, Asia and North America; OEM strategies and cost pressures; customer inventory management and the impact of potential automotive customer (including their Tier 1 suppliers) and supplier bankruptcies; etc., all of which are disrupting and will further disrupt shipments to customers, disrupt global capital flows, and heighten market volatility.

Given the current geopolitical environment, tariff landscape, and evolving customer sourcing strategies, the Company will continue to withhold revenue guidance for calendar year 2026, until the needed visibility to support future guidance is available.

In accordance with the previously announced share repurchase plan, the Company will consider the appropriateness of continuing to repurchase additional shares of common stock in the future in support of the capital allocation strategy, but share repurchases will vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including the market price of the stock, anti-dilutive effect of repurchases, and available cash). As of June 30, 2025, the Company had 0.6 million shares remaining available for repurchase under the previously announced share repurchase plan. On July 16, 2025, the Company announced a new share repurchase authorization of 40 million shares in addition to the Company's prior repurchase authorization. With the new authorization on July 16, 2025, the Company has approximately 40.6 million shares available for repurchase under its share repurchase plan.

### CRITICAL ACCOUNTING POLICIES:

The preparation of the Company’s consolidated condensed financial statements contained in this report, which have been prepared in accordance with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates these estimates. Estimates are based on historical experience and/or on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that may not be readily apparent from other sources. Historically, actual results have not been materially different from the Company’s estimates. However, actual results may differ from these estimates under different assumptions or conditions.

The Company has identified critical accounting policies used in determining estimates and assumptions in the amounts reported in its Management’s Discussion and Analysis of Financial Condition and Results of Operations herein and in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

## Market risk

As filed, 3,270 characters.

The Company is subject to market risk exposures of varying correlations and volatilities, including foreign exchange rate risk, interest rate risk, commodity price risk, and tariffs. For the quarter ended June 30, 2025, any material changes in risk factors that were disclosed in the Company's report on Form 10-K for the year ended December 31, 2024 are set forth herein.

Fluctuating interest rates could negatively impact the Company's financial performance due to realized losses on the sale of fixed income investments and/or recognized losses due to an impairment adjustment on investment securities, as well as the impact on demand for light vehicles.

The Company has some assets, liabilities, and operations outside the United States, including Euro-denominated and Chinese Yuan Renminbi accounts, which currently are not significant overall to the Company as a whole. Because the Company sells its automotive mirrors throughout the world, and automotive manufacturing is highly dependent on general economic conditions and the global supply chain, the Company has been and will continue to be affected by uncertain economic conditions in North American and foreign markets, including tariffs and inflation, that have reduced, and will continue to reduce, demand for its products, to the extent they persist.

The geopolitical environment between the Unites States and other jurisdictions, most significantly China, continues to cause uncertainty, especially in light of recently imposed incremental tariffs and tariffs threatened to be imposed, in addition to those already existing. One example of the impact on the Company is the proactive decision to halt production and sales of products intended for the China market until customer agreements can be reached. Company input costs are already, and will continue to be, affected by a variety of factors, including: economic and market conditions; inflation; changes in customer demand; supply shortages, constraints, and disruptions; interest rate changes; foreign currency fluctuations; industry actions; and uncertainties in vehicle production schedules, as well as the aforementioned tariffs, trade regulatory actions, and changes in international trade policies, agreements, and/or regulation and competitor activity. Previously enacted tariffs have already increased the Company's input costs and challenge the Company's competitive position. The Executive Branch of the U.S. federal government has suggested the possibility of even more tariffs and tariff increases. While the Company continues to assess the impact of the current tariff and trade environment, tariffs and trade disputes in the geopolitical environment have interfered with and have disrupted automotive supply chains. While further actions regarding tariffs or trade relations between the U.S. and other governments are impossible to predict, the current trade environment has already, and will continue to, negatively impacted the Company’s business, financial condition, and results of operations, especially since the Company primarily manufactures and ships from one location. Any continuance of tariffs currently in place and/or escalation of tariffs and trade disputes will have further adverse impact on the Company’s business.

## Controls and procedures

As filed, 4,379 characters.

Evaluation of Disclosure Controls and Procedures.

Under the supervision of, and with the participation of management, the Company's Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of June 30, 2025, and have concluded that as of that date, the Company's disclosure controls and procedures are effective.

#### Changes in Internal Control Over Financial Reporting

There were no changes in the Company's internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the quarter ended June 30, 2025 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

### SAFE HARBOR STATEMENT:

This Quarterly Report contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company’s current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “hope,” “intend,” "likely", “may,” “opinion,” “optimistic,” “plan,” “poised,” “predict,” “project,” “should,” “strategy,” “target,” “will,” "work to," and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company’s control, and could cause the Company’s results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional market conditions, including the impact of inflation; import and export duty and tariff rates with the countries with which we conduct business; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations with customers and suppliers; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules (including the impact of customer employee strikes); changes in product mix; raw material and other supply shortages; labor shortages, supply chain constraints and disruptions; our dependence on information systems; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; negative impact of any governmental investigations and associated litigation, including securities litigation relating to the conduct of our business; and force majeure events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made.

The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading “Risk Factors” in the Company’s latest Form 10-K and Form 10-Q filed with the SEC, which risks and uncertainties include tariffs that have affected, are affecting, and will continue to affect, general economic and industry conditions, customers, suppliers, and the regulatory environment in which the Company operates. Includes content supplied by S&P Global Mobility Light Vehicle Production Forecast of July 16, 2025 (http://www.gentex.com/forecast-disclaimer).

## Risk factors

As filed, 543 characters.

Information regarding risk factors appears in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part I – Item 2 of this Form 10-Q and in Part I – Item 1A – Risk Factors of the Company’s report on Form 10-K for the fiscal year ended December 31, 2024. There have been no material changes to the risk factors previously disclosed in the Company’s report on Form 10-K for the year ended December 31, 2024, except to the extent described in Part I – Item 2 and Item 3 of this Form 10-Q, and otherwise herein.

Filed Aug 8, 2025.
Source: SEC EDGAR, the filing index for accession 0000355811-25-000041. Last ingested by Listed: Nov 6, 2026, 14:07 ET. No prices; not investment advice.