Knowles 10-Q: Q3 EPS $0.25, Cash Flow Slips, $25M Buyback, New COO Trading Plan
KN sits 66% above its 52-week low of $20.57.
Summary
Knowles' Q3 10-Q confirms the $184.0M revenue and $0.25 diluted EPS already reported October 22, but shows margin compression and weaker free cash flow, alongside $25.0M of Q3 buybacks and a new COO trading plan.
Key Events · Earnings and Guidance · KN
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Q3 Results Confirmed in Full 10-Q
Revenue of $184.0M (up 20.3% from $152.9M) and diluted EPS of $0.25 versus $0.20 a year ago; net earnings $21.6M.
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Gross Margin Compresses
Gross margin fell to 44.2% from 45.7% on non-recurring inventory adjustments, higher factory costs, unfavorable mix and ceramic capacitor production transfer costs, partly offset by higher pricing.
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Free Cash Flow Down Year Over Year
Nine-month operating cash flow was $72.1M and adjusted free cash flow $62.4M, versus $81.2M a year ago, as inventories rose $26.5M and receivables $20.0M.
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Buybacks Continue, $81.5M Left
Q3 repurchases totaled 695,052 shares for $25.0M at an average $35.97; $81.5M remains on the $400M authorization.
Analysis · KN · Manufacturing
The headline quarter was already out on October 22, so the revenue and EPS numbers are not new. What the 10-Q adds is the quality-of-earnings picture: gross margin fell to 44.2% from 45.7% on non-recurring inventory adjustments, higher factory costs and unfavorable mix, while nine-month adjusted free cash flow dropped to $62.4M from $81.2M as working capital absorbed cash. Cash sits at $46.6M against $116.0M drawn on the revolver, with no maturities until February 2028 and covenants in compliance. Buybacks continued as well — 695,052 shares for $25.0M in Q3 at an average $35.97 — leaving $81.5M on the authorization, and the COO adopted a new 10b5-1 plan covering 30,253 shares through February 2027.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.5% of the 1494 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.03%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, KN was trading at $34.10 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.9B. The 52-week trading range was $20.57 to $42.93. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.