CXTHIGH SIGNALFINANCIAL10-K

CXT substantially increased its debt burden through major acquisitions while experiencing declining profitability despite revenue growth.

The company has transformed its capital structure through significant M&A activity, acquiring OpSec and De La Rue Authentication Solutions, which required expanding credit facilities from $500M to $700M plus a £300M term loan. While these acquisitions drove meaningful revenue growth and expanded the Security and Authentication Technologies segment, net income declined over 20% despite higher gross profits, suggesting integration costs or operational challenges are pressuring margins.

Comparing 2026-02-26 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

CXT's balance sheet reflects major acquisition activity with total debt increasing by 86% to $1.0B and total assets growing 31% to $3.1B, supported by expanded credit facilities and cash reserves that rose 41% to $234M. Revenue growth drove gross profit up 29% to $1.2B, but net income fell 21% to $145M, indicating margin compression from acquisition-related costs or operational inefficiencies. The substantial debt increase and declining profitability amid expansion suggests the company is in a heavy investment phase with execution risk around realizing synergies from recent acquisitions.

FINANCIAL STATEMENT CHANGES
Total Debt
Balance Sheet
+85.8%
$540.6M→$1.0B

Debt increased 85.8% — substantial leverage increase; assess whether deployed for growth or covering losses.

Cash & Equivalents
Balance Sheet
+41%
$165.8M→$233.8M

Cash position surged 41% — strong cash generation or capital raise providing significant financial cushion.

Total Liabilities
Balance Sheet
+40.7%
$1.3B→$1.9B

Liabilities grew 40.7% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Assets
Balance Sheet
+32.7%
$642.5M→$852.9M

Current assets grew 32.7% — improving short-term liquidity or inventory/receivables build.

Accounts Receivable
Balance Sheet
+32.3%
$265.9M→$351.8M

Receivables surged 32.3% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Total Assets
Balance Sheet
+30.6%
$2.4B→$3.1B

Asset base grew 30.6% — expansion through organic growth, acquisitions, or capital deployment.

Gross Profit
P&L
+28.6%
$965.1M→$1.2B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Net Income
P&L
-21.2%
$184.1M→$145.1M

Net income declined 21.2% — review whether driven by operations, interest costs, or non-recurring items.

Stockholders Equity
Balance Sheet
+17.7%
$1.1B→$1.3B

Equity base grew 17.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Inventory
Balance Sheet
+17.1%
$144.8M→$169.5M

Inventory built 17.1% — monitor whether demand supports this build or if write-downs may follow.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-20
ADDED
Any differences could result from a variety of factors, including the following: Macroeconomic fluctuations may harm our business, results of operations and stock price; Demand for our products is variable and subject to factors beyond our control, any of which could adversely affect our financial condition, results of operations or cash flow; We conduct a substantial portion of our business outside the U.S.
and face risks inherent in non-domestic operations, including the risk of tariffs and other trade measures by the U.S.
63 2023 Kim DiMaurizio Senior Vice President, Chief People Officer Senior Vice President, Chief People Officer of Crane NXT since October 2025.
Vice President, Global HR Business Partnering; Organizational Talent Solutions at Jazz Pharmaceuticals December 2019 to September 2025.
49 2025 Sam Keayes Senior Vice President, Security and Authentication Technologies Senior Vice President, Security and Authentication Technologies since May 2024.
In connection with the acquisition of OpSec, we renamed our Crane Currency reportable segment to Security and Authentication Technologies, which consists of the Crane Currency business and the Crane Authentication business comprised of the acquired OpSec and De La Rue businesses.
To compete effectively, we seek to provide high quality products, with technological differentiation, at competitive prices, with superior customer service and timely delivery.
8 The Company has a diverse global workforce located in 35 countries, spanning six continents.
At December 31, 2025, we employed approximately 4,800 persons worldwide, of which substantially all were full time employees.
In the United States, we employed approximately 2,200 people across 32 locations.
REMOVED
Any differences could result from a variety of factors, including the following: Macroeconomic fluctuations may harm our business, results of operations and stock price; Demand for our products is variable and subject to factors beyond our control, which could result in unanticipated events significantly impacting our results of operations; We conduct a substantial portion of our business outside the U.S.
62 2023 Jennifer Kartono Senior Vice President, Chief Human Resources Officer Senior Vice President, Chief Human Resources Officer since April 2023.
Senior Vice President, Global Human Resources of Iron Mountain Incorporated (a global provider of information management and storage) from January 2018 to April 2023.
55 2023 Sam Keayes Senior Vice President, Security and Authentication Technologies Senior Vice President, Security and Authentication Technologies since May 2024.
Recent Transactions Credit Facilities We are party to a senior secured credit agreement (the Credit Agreement ) entered into on March 17, 2023, which provides for a $500 million, five-year revolving credit facility (the Revolving Facility ), funding under which became available in connection with the Separation.
On December 9, 2024, we entered into an amendment to the Credit Agreement which increased the Revolving Facility by $200 million to an aggregate $700 million and provided a delayed draw term loan of 300 million British pounds to be used as part of the funding for the De La Rue Authentication Solutions acquisition discussed below, subject to customary closing conditions including the closing of the De La Rue Authentication Solutions transaction.
On March 17, 2023, we also entered into a $350 million, 3-year term loan facility (the Term Facility ), funding under which became available in connection with the Separation.
On December 9, 2024, proceeds from the Revolving Facility were used to repay the outstanding Term Facility.
OpSec Acquisition On May 3, 2024, we acquired OpSec Security ( OpSec ), for a base purchase price of $270 million on a cash-free and debt-free basis, subject to customary purchase price adjustments.
OpSec is a global leader in brand protection and authentication solutions, serving the world s most recognized brands, as well as government agencies and financial insti tutions.
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