Crocs — Feb 12, 2026 release

13 Free cash flow reconciliation: Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 (in thousands) Cash provided by operating activities $ 252,530  $ 321,937  $ 710,431 $ 992,486  Purchases of property, equipment, and software (6,111) (18,490) (51,231) (69,347) Free cash flow $ 246,419  $ 303,447  $ 659,200  $ 923,139  14 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL GUIDANCE Full-Year 2026: Approximately: Non-GAAP operating margin reconciliation: GAAP operating margin >21.7% Non-GAAP adjustments (1) 0.6% Non-GAAP operating margin >22.3% Non-GAAP effective tax rate reconciliation: GAAP effective tax rate 23% Non-GAAP adjustments (2) (5)% Non-GAAP effective tax rate 18% Non-GAAP diluted earnings per share reconciliation: GAAP diluted earnings per share $11.71 to $12.18 Non-GAAP adjustments (1)(2) $1.17 Non-GAAP diluted earnings per share $12.88 to $13.35 (1) During 2026, we expect to incur approximately $25 million of non-GAAP adjustments, primarily associated with supply chain optimization and other cost savings efficiencies. (2) In the fourth quarter of 2024, and previously in 2023, 2021, and 2020, we made changes to our international legal structure, including an intra-entity transaction related to certain intellectual property rights, primarily to align with current and future international operations. The transactions resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the full-year 2026 impact of these transactions. Non-GAAP Financial Guidance Our forward-looking guidance for