Crocs — Jul 30, 2026 release

12 Free cash flow reconciliation: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Cash provided by operating activities $ 351,702  $ 285,800  $ 270,768 $ 218,565  Purchases of property, equipment, and software (20,729) (16,571) (38,729) (31,946) Free cash flow $ 330,973  $ 269,229  $ 232,039  $ 186,619  13 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 $12.47 to $12.77 Non-GAAP adjustments (1)(2) $1.23 Non-GAAP diluted earnings per share $13.70 to $14.00 (1) During 2026, we expect to incur approximately $25 million of non-GAAP adjustments, primarily associated with our cost reduction initiatives. This estimate does not include the receipt of potential IEEPA tariff refunds, as we are not able to predict the timing quarter-by-quarter. We plan to recognize IEEPA tariff refunds when they are realized or considered realizable, in accordance with the gain contingency model. (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