Q2 Earnings Show Revenue Growth, But Cash Flow Declines & Top Execs File New Selling Plans
KN sits 86% above its 52-week low of $19.29.
Summary
Knowles Corp reported strong Q2 2026 revenue and earnings, but cash flow from operations and adjusted free cash flow declined significantly. The CEO and CFO also filed new 10b5-1 plans to sell shares.
Key Events · Earnings and Guidance · KN
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Strong Q2 2026 Financial Performance
Revenues for Q2 2026 increased by 14.3% to $166.8 million (vs. $145.9 million in Q2 2025). GAAP net earnings rose to $19.4 million (vs. $7.8 million), and non-GAAP diluted EPS improved to $0.33 (vs. $0.24). These results were previously announced in an 8-K on July 23, 2026.
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Significant Decline in Cash Flow
Cash provided by operating activities for the six months ended June 30, 2026, decreased to $27.5 million from $37.7 million in the prior year period. Adjusted free cash flow saw a substantial drop to $19.8 million from $57.9 million, primarily due to increased working capital and higher capital expenditures.
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CEO and CFO File New 10b5-1 Selling Plans
CEO Jeffrey Niew adopted a plan to sell 200,000 shares (approximately $7.18 million at current prices) and CFO John Anderson adopted a plan to sell 40,000 shares (approximately $1.44 million) on May 13, 2026. These plans add to a recent trend of insider distribution.
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Continued Share Repurchase Program
The company repurchased $22.5 million of common stock during the first six months of 2026, with $106.5 million remaining under the current authorization. This represents a continued commitment to returning capital to shareholders.
Analysis · KN · Manufacturing
This 10-Q provides full financial details for Q2 2026, following the preliminary results announced in an 8-K on July 23, 2026. While the company reported strong revenue and earnings growth, a significant decline in cash flow from operations and adjusted free cash flow is a key concern. Additionally, new 10b5-1 selling plans from the CEO and CFO indicate further insider distribution, which could weigh on investor sentiment.
At the time of this filing, KN was trading at $35.91 on NYSE in the Manufacturing sector, with a market capitalization of approximately $3.1B. The 52-week trading range was $19.29 to $42.93. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.