GNRC · 10-Q · 2026Q2 · Full report

Operating Expense Trends

GENERAC HOLDINGS INC. · 2026-08-04 · Importance 42 · Surprise 14 · In source text

First-half operating expenses increased $11.0 million, or 1.9%, to $604.3 million, and second-quarter operating expenses increased $6.4 million, or 2.1%, to $311.4 million. Research and development expense increased 4.9% year over year to $128.4 million in the first half and 9.0% to $65.8 million in the second quarter. Intangible amortization increased 19.6% to $61.2 million in the first half and 20.0% to $30.8 million in the second quarter. The increases were driven by higher intangible amortization and operating-expense investments supporting future C&I growth, partly offset by lower legal expense and a $4.7 million first-half decline in general and administrative expense.

Key facts

• Operating expenses for the three months ended June 30, 2026: $311,378 thousand, up $6,418 thousand, 2.1% versus prior year quarter. source
• Generac announced plan to reorganize reportable segments effective March 31, 2026, changing from Domestic and International to Residential and C&I. source
• Research and development expense for Q2 2026: $65,781 thousand, up $5,427 thousand, 9.0% versus prior year quarter. source
• Amortization of intangible assets for Q2 2026: $30,815 thousand, up $5,134 thousand, 20.0% versus prior year quarter. source
• Depreciation and amortization for the three months ended June 30, 2026 was $58,410 thousand and for the three months ended June 30, 2025 was $48,321 thousand; for the six months ended June 30, 2026 depreciation and amortization was $114,384 thousand and for 2025 was $94,462 thousand. source
• Change in fair value of investments for the three months ended June 30, 2026 was $(5,916) thousand and for the three months ended June 30, 2025 was $1,524 thousand; for the six months ended June 30, 2026 it was $(4,542) thousand and for 2025 it was $11,471 thousand. source
• Other (g) for the three months ended June 30, 2026 was $12,702 thousand and for the three months ended June 30, 2025 was $3,426 thousand; for the six months ended June 30, 2026 it was $17,632 thousand and for 2025 it was $3,579 thousand. source
• The $40.8 million net cash used in financing activities for the six months ended June 30, 2026 included $36.7 million for taxes paid related to equity awards and $1.0 million for payments of deferred acquisition consideration. source

Impact estimates