UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended ~~November~~May 3031, ~~2024~~2025

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period from to

Commission File Number 1-5807

ENNIS, INC.

(Exact Name of Registrant as Specified in Its Charter)

Texas		75-0256410
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
2441 Presidential Pkwy., Midlothian, Texas		76065
(Address of Principal Executive Offices)		(Zip code)

Registrant’s Telephone Number, Including Area Code: (972) 775-9801

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		TradingSymbol(s)		Name of each exchange on which registered
Common Stock, par value $2.50 per share		EBF		New York Stock Exchange

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~January~~June 323, 2025, there were 2625,~~012~~795,~~603~~161 shares of the Registrant’s common stock outstanding.

ENNIS, INC. AND SUBSIDIARIES

FORM 10-Q

FOR THE PERIOD ENDED ~~NOVEMBER~~MAY 3031, ~~2024~~2025

TABLE OF CONTENTS

PART I: FINANCIAL INFORMATION
	Item 1. Condensed Consolidated Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets at November 30, 2024 and February 29, 2024	3
	Condensed Consolidated Balance Sheets at May 31, 2025 and February 28, 2025	3
	Condensed Consolidated Statements of Operations for the three and nine months ended November 30, 2024 and November 30, 2023	5
	Condensed Consolidated Statements of Operations for the three months ended May 31, 2025 and May 31, 2024	5
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended November 30, 2024 and November 30, 2023	6
	Condensed Consolidated Statements of Comprehensive Income for the three months ended May 31, 2025 and May 31, 2024	6
	Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended November 30, 2024 and November 30, 2023	7
	Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended May 31, 2025 and May 31, 2024	7
	Condensed Consolidated Statements of Cash Flows for the three and nine months ended November 30, 2024 and November 30, 2023	8
	Condensed Consolidated Statements of Cash Flows for the three months ended May 31, 2025 and May 31, 2024	8
	Notes to Condensed Consolidated Financial Statements (unaudited)	9
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	3029
	Item 4. Controls and Procedures	3029
PART II: OTHER INFORMATION
	Item 1. Legal Proceedings	3029
	Item 1A. Risk Factors	30
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	3130
	Item 3. Defaults Upon Senior Securities	3130
	Item 4. Mine Safety Disclosures	3130
	Item 5. Other Information	3130
	Item 6. Exhibits	3130
SIGNATURES		3231

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

	November 30,		February 29,
	May 31,		February 28,
	2024		2024
	2025		2025
Assets
Current assets
Cash	$	55,704	$	81,597
Cash and cash equivalents	$	32,623	$	67,000
Short-term investments		~~12,862~~—		295,~~325~~475
Accounts receivable, net		4036,~~255~~942		4737,~~209~~037
Inventories, net		39,379		40,037
Other receivables		10,646		1,716
Prepaid expenses		2,746		2,168
Inventories, net		53,109		38,797
Prepaid income taxes		1,469		1,046
Prepaid expenses		2,725		2,587
Total current assets		152,415		201,382
Prepaid income taxes		—		128
Total current assets		136,045		152,740
Property, plant and equipment
Plant, machinery and equipment		~~157~~161,~~749~~316		~~160~~158,~~305~~730
Land and buildings		6771,~~772~~703		67,~~121~~946
Computer equipment and software		10,~~589~~488		10,~~680~~597
Other		3,~~996~~947		43,~~124~~995
Total property, plant and equipment		~~240~~247,~~106~~454		~~242~~241,~~230~~268
Less accumulated depreciation		~~186~~188,~~911~~368		~~187~~188,~~265~~682
Property, plant and equipment, net		5359,~~195~~086		5452,~~965~~586
Operating lease right-of-use assets, net		1110,~~124~~808		9,~~827~~833
Goodwill		94106,~~349~~756		94,349
Intangible assets, net		3442,~~532~~824		3833,~~327~~270
Net pension asset		801,422		801,422
Other assets		~~360~~4,719		~~260~~4,735
Total assets	$	~~346~~361,~~055~~660	$	~~399~~348,~~190~~935

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS-Continued

(unaudited, in thousands, except for par value and share amounts)

	November 30,			February 29,
	May 31,			February 28,
	2024			2024
	2025			2025
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	1223,~~077~~144		$	1113,~~846~~799
Accrued expenses		1518,~~578~~391			1715,~~541~~339
Current portion of operating lease liabilities		4,~~664~~271			4,~~414~~166
Total current liabilities		3245,~~319~~806			33,~~801~~304
Deferred income taxes		97,~~377~~955			97,~~305~~841
Operating lease liabilities, net of current portion		6,~~161~~246			5,~~160~~310
Other liabilities		~~502~~501			~~1,083~~500
Total liabilities		4860,~~359~~508			4946,~~349~~955
Shareholders’ equity
Common stock $2.50 par value, authorized 40,000,000 shares; issued 30,053,443 shares at November 30, 2024 and February 29, 2024		75,134			75,134
Common stock $2.50 par value, authorized 40,000,000 shares; issued 30,053,443 shares at May 31, 2025 and February 28, 2025		75,134			75,134
Additional paid-in capital		125,~~212~~677			~~126~~125,~~253~~452
Retained earnings		~~182~~187,~~140~~658			~~236~~184,~~196~~430
Accumulated other comprehensive loss:
Minimum pension liability, net of taxes		(1211,~~804~~083	)		(1311,~~019~~426	)
Treasury stock		(7176,~~986~~234	)		(7471,~~723~~610	)
Total shareholders’ equity		~~297~~301,~~696~~152			~~349~~301,~~841~~980
Total liabilities and shareholders' equity	$	~~346~~361,~~055~~660		$	~~399~~348,~~190~~935

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except share and per share amounts)

Three months ended

~~Nine months ended~~

November 30,

May 31,

2024

2023

2024

2023

2025

2024

Net sales

9997,~~771~~197

~~104~~103,~~621~~108

~~301,917~~

~~322,675~~

Cost of goods sold

7066,~~522~~967

7472,~~090~~204

~~211,985~~

~~225,004~~

Gross profit

2930,~~249~~230

30,~~531~~904

~~89,932~~

~~97,671~~

Selling, general and administrative

16,~~341~~947

17,~~410~~170

~~50,068~~

~~54,094~~

(Gain) loss from disposal of assets

(138

)

(95

)

Loss from disposal of assets

—

Income from operations

13,~~046~~283

13,~~120~~730

~~39,959~~

~~43,524~~

Other income (expense)

Interest income

~~1,390~~550

1,~~020~~359

~~4,118~~

~~2,714~~

Other, net

(~~361~~318

)

(~~324~~348

)

~~(1,044~~

)

~~(979~~

)

Total other income (expense)

~~1,029~~232

~~696~~1,011

~~3,074~~

~~1,735~~

Earnings before income taxes

1413,~~075~~515

1314,~~816~~741

~~43,033~~

~~45,259~~

Income tax expense

3,~~871~~716

34,~~910~~054

~~11,834~~

~~12,808~~

Net earnings

109,~~204~~799

910,~~906~~687

~~31,199~~

~~32,451~~

Weighted average common shares outstanding

Basic

2625,~~013~~956,~~892~~639

2526,~~894~~156,~~578~~928

~~26,028,596~~

~~25,826,691~~

Diluted

26,~~088~~021,~~957~~247

26,~~083~~279,~~301~~646

~~26,192,008~~

~~25,991,567~~

Earnings per share

Basic

0.3938

0.3841

~~1.20~~

~~1.26~~

Diluted

0.3938

0.3841

~~1.19~~

~~1.25~~

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in thousands)

	Three months ended				~~Nine months ended~~
	November 30,				November 30,
	May 31,
	2024		2023		2024		2023
	2025		2024
Net earnings	$	109,~~204~~799	$	910,~~906~~687	$	~~31,199~~	$	~~32,451~~
Adjustment to pension, net of taxes		~~371~~343		~~360~~372		~~215~~		~~1,080~~
Comprehensive income	$	10,~~575~~142	$	1011,~~266~~059	$	~~31,414~~	$	~~33,531~~

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(unaudited, in thousands, except share and per share amounts)

											Accumulated
					Additional						Other
	Common Stock				Paid-in			Retained			Comprehensive			Treasury Stock
	Shares		Amount		Capital			Earnings			Income (Loss)			Shares			Amount			Total
Balance August 31, 2024		30,053,443	$	75,134	$	124,315		$	244,235		$	(13,175	)		(4,091,256	)	$	(72,140	)	$	358,369
Balance February 28, 2025		30,053,443	$	75,134	$	125,452		$	184,430		$	(11,426	)		(4,060,655	)	$	(71,610	)	$	301,980
Net earnings		—		—		—			109,~~204~~799			—			—			—			109,~~204~~799
Adjustment to pension, net of deferred tax of $124		—		—		—			—			371			—			—			371
Adjustment to pension, net of deferred tax of $114		—		—		—			—			343			—			—			343
Dividends paid ($2.75 per share)		—		—		—			(72,299	)		—			—			—			(72,299	)
Dividends paid ($0.25 per share)		—		—		—			(6,571	)		—			—			—			(6,571	)
Stock based compensation		—		—		~~877~~568			—			—			—			—			~~877~~568
Exercise of stock options and restricted stock		—		—		20(343	)		—			—			821,~~749~~933			~~154~~387			~~174~~44
Common stock repurchases		—		—		—			—			—			—(260,560	)		—(5,011	)		—(5,011	)
Balance November 30, 2024		30,053,443	$	75,134	$	125,212		$	182,140		$	(12,804	)		(4,082,507	)	$	(71,986	)	$	297,696
Balance May 31, 2025		30,053,443	$	75,134	$	125,677		$	187,658		$	(11,083	)		(4,299,282	)	$	(76,234	)	$	301,152
Balance February 29, 2024		30,053,443	$	75,134	$	126,253		$	236,196		$	(13,019	)		(4,250,226	)	$	(74,723	)	$	349,841
Net earnings		—		—		—			3110,~~199~~687			—			—			—			3110,~~199~~687
Adjustment to pension, net of deferred tax of $72		—		—		—			—			215			—			—			215
Adjustment to pension, net of deferred tax of $124		—		—		—			—			372			—			—			372
Dividends paid ($3.25 per share)		—		—		—			(85,255	)		—			—			—			(85,255	)
Dividends paid ($0.25 per share)		—		—		—			(6,460	)		—			—			—			(6,460	)
Stock based compensation		—		—		31,~~350~~760			—			—			—			—			31,~~350~~760
Exercise of stock options and restricted stock		—		—		(4,~~391~~065	)		—			—			~~259~~231,~~642~~216			4,~~565~~065			~~174~~—
Common stock repurchases		—		—		—			—			—			(91,~~923~~883	)		(1,~~828~~827	)		(1,~~828~~827	)
Balance November 30, 2024		30,053,443	$	75,134	$	125,212		$	182,140		$	(12,804	)		(4,082,507	)	$	(71,986	)	$	297,696
Balance May 31, 2024		30,053,443	$	75,134	$	123,948		$	240,423		$	(12,647	)		(4,110,893	)	$	(72,485	)	$	354,373
Balance August 31, 2023		30,053,443	$	75,134	$	126,440		$	229,082		$	(13,384	)		(4,220,210	)	$	(74,126	)	$	343,146
Net earnings		—		—		—			9,906			—			—			—			9,906
Adjustment to pension, net of deferred tax of $120		—		—		—			—			360			—			—			360
Dividends paid ($0.25 per share)		—		—		—			(6,469	)		—			—			—			(6,469	)
Stock based compensation		—		—		1,041			—			—			—			—			1,041
Exercise of stock options and restricted stock		—		—		(346	)		—			—			(666	)		(11	)		(357	)
Balance November 30, 2023		30,053,443	$	75,134	$	127,135		$	232,519		$	(13,024	)		(4,220,876	)	$	(74,137	)	$	347,627
Balance February 28, 2023		30,053,443	$	75,134	$	125,887		$	219,459		$	(14,104	)		(4,266,835	)	$	(74,944	)	$	331,432
Net earnings		—		—		—			32,451			—			—			—			32,451
Adjustment to pension, net of deferred tax of $359		—		—		—			—			1,080			—			—			1,080
Dividends paid ($0.75 per share)		—		—		—			(19,391	)		—			—			—			(19,391	)
Stock based compensation		—		—		2,055			—			—			—			—			2,055
Exercise of stock options and restricted stock		—		—		(807	)		—			—			45,959			807			—
Balance November 30, 2023		30,053,443	$	75,134	$	127,135		$	232,519		$	(13,024	)		(4,220,876	)	$	(74,137	)	$	347,627

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	Nine months ended
	Three months ended
	November 30,
	May 31,
	2024			2023
	2025			2024
Cash flows from operating activities:
Net earnings	$	319,~~199~~799		$	3210,~~451~~687
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation		62,~~703~~239			72,~~465~~314
Amortization of intangible assets		51,~~807~~944			51,~~830~~929
(Gain) loss from disposal of assets		(95	)		53
Loss from disposal of assets		—			4
Amortization of discount on short-term investments		(~~944~~25	)		(~~102~~408	)
Bad debt expense, net of recoveries		~~152~~90			~~373~~110
Stock based compensation		~~3,350~~568			21,~~055~~760
Net pension expense		1,488			1,439
Deferred income taxes		—			56
Net pension expense		457			496
Changes in operating assets and liabilities, net of the effects of acquisitions
Accounts receivable		8,147			8,228
Accounts and other receivables		(7,340	)		3,190
Prepaid expenses and income taxes		(~~1,001~~10	)		~~(4,126~~677	)
Inventories		2(11,~~484~~798	)		~~6,828~~(966	)
Cash paid to pension plan		(1,200	)		—
Other assets		16			—
Other assets		—			81
Accounts payable and accrued expenses		11,953			3,275
Accounts payable and accrued expenses		(2,365	)		(7,763	)
Other liabilities		67			(19	)
Other liabilities		(628	)		(312	)
Net cash provided by operating activities		7,960			23,105
Net cash provided by operating activities		53,097			52,500
Cash flows from investing activities:
Capital expenditures		(41,~~250~~368	)		(42,~~884~~510	)
Purchase of businesses, net of cash acquired		(534,~~537~~931	)		~~(19,907~~—	)
Purchase of short-term investments		~~(10,093~~—	)		(1810,~~393~~093	)
Maturity of short-term investments		275,500			—7,500
Proceeds from disposal of plant and property		~~299~~—			951
Net cash provided by (used in) investing activities		7,919			(43,175	)
Net cash used in investing activities		(30,799	)		(5,052	)
Cash flows from financing activities:
Dividends paid		(856,~~255~~571	)		(196,~~391~~460	)
Common stock repurchases		(15,~~828~~011	)		—(1,827	)
Proceeds from exercise of stock options		~~174~~44			—
Net cash used in financing activities		(8611,~~909~~538	)		(198,~~391~~287	)
Net change in cash		(25,893	)		(10,066	)
Net change in cash and cash equivalents		(34,377	)		9,766
Cash at beginning of period		81,597			93,968
Cash and cash equivalents at beginning of period		67,000			81,597
Cash at end of period	$	55,704		$	83,902
Cash and cash equivalents at end of period	$	32,623		$	91,363

See accompanying notes to condensed consolidated financial statements.

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED ~~NOVEMBER~~MAY 3031, ~~2024~~2025(unaudited)

1. Significant Accounting Policies and General Matters

Basis of Presentation

These unaudited condensed consolidated financial statements of Ennis, Inc. and its subsidiaries (collectively referred to as the “Company,” “Registrant,” “Ennis,” or “we,” “us,” or “our”) for the period ended ~~November~~May 3031, ~~2024~~2025 have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP') and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 2928, ~~2024~~2025, from which the accompanying consolidated balance sheet at February 2928, ~~2024~~2025 was derived. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation of the interim financial information have been included and are of a normal recurring nature. The preparation of the condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the disclosure and reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates these estimates and judgments on an ongoing basis, including those related to bad debts, inventory valuations, property, plant and equipment, intangible assets, pension plan, accrued liabilities, and income taxes. The Company bases estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. The results of operations for any interim period are not necessarily indicative of the results of operations for a full year.

Recent Accounting Pronouncements

Issued Accounting Standards Not Yet Adopted

In ~~November~~December 2023, the FASB issued ASU ~~No.~~ 2023-0709, ~~Segment~~Income ~~Reporting~~Taxes (Topic ~~280~~740): Improvements to ~~Reportable~~Income ~~Segment~~Tax Disclosures, which ~~aims~~expands ~~to improve~~ disclosures ~~about a public entity’s reportable segments. This update addresses requests from investors for more detailed information about a reportable segment’s expenses~~ in ~~order to improve understanding of~~ a public entity’s ~~business~~income ~~activities,~~tax ~~overall~~rate ~~performance,~~reconciliation ~~and~~table ~~potential future cash flows. The amendments in this ASU include a requirement for public business entities to disclose, on an annual~~ and ~~interim~~other ~~basis,~~disclosures ~~significant~~regarding ~~segment~~cash ~~expenses~~taxes ~~that~~paid ~~are~~both ~~regularly~~in ~~provided to~~ the ~~chief~~U.S. ~~operating decision maker ("CODM")~~ and ~~are~~foreign ~~included within each reported measure of segment profit or loss~~jurisdictions. This ~~update~~ASU is effective for ~~fiscal~~annual ~~years~~periods beginning after December 15, ~~2023,~~2024 ~~and~~(fiscal ~~interim~~2026 ~~periods~~for ~~within~~the ~~those~~Company), ~~fiscal~~but ~~years~~early ~~starting~~adoption ~~after~~is ~~December 15, 2024~~permitted. This ASU ~~must~~should be applied ~~retrospectively~~on toa ~~all~~prospective ~~prior~~basis, ~~periods~~although ~~presented~~retrospective application is permitted. Management expects the adoption of the pronouncement will result in additional ~~segment~~ disclosures in its Consolidated Financial Statements for fiscal year ~~2025~~2026 but does not expect it to have a material impact on our Consolidated Financial Statements.

In ~~December~~November ~~2023~~2024, the FASB issued ASU ~~2023~~2024-0903, Income ~~Taxes~~Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (~~Topic~~Subtopic ~~740~~220-40): ~~Improvements~~Disaggregation toof Income ~~Tax~~Statement ~~Disclosures~~Expenses, ~~which~~that ~~expands~~requires ~~disclosures~~entities into adisclose ~~public~~additional ~~entity’s~~information ~~income~~in ~~tax~~the ~~rate~~notes ~~reconciliation~~to ~~table~~the ~~and~~financial ~~other~~statements ~~disclosures~~about ~~regarding~~prescribed ~~cash~~categories ~~taxes~~underlying ~~paid~~any ~~both~~relevant inincome ~~the~~statement ~~U.S.~~expense ~~and foreign jurisdictions~~caption. The ~~This~~new ~~ASU~~standard is effective for annual reporting periods beginning after December 15, ~~2024~~2026 (fiscal ~~2026~~year 2028 for the Company) and interim periods within annual reporting periods beginning after December 15, ~~but~~2027. ~~early~~The adoption of this standard is ~~permitted.~~not ~~This~~expected ~~ASU~~to ~~should~~have bea ~~applied~~material impact on athe ~~prospective~~Company’s ~~basis,~~consolidated ~~although~~financial ~~retrospective~~statements ~~application~~but iswill ~~permitted.~~result ~~The~~in ~~Company~~some isdisaggregation ~~assessing~~of the ~~effect~~Company’s ofincome ~~this~~statement ~~update~~expenses onin ~~its~~the ~~Consolidated~~notes ~~Financial~~to ~~Statements~~the ~~and~~Consolidated ~~related~~Financial ~~disclosures~~Statements.

~~Proposed Accounting Standards~~9

~~In November 2024~~ENNIS, ~~the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses~~INC. ~~The~~ ~~guidance~~AND requires disclosures about specific expense categories, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. The ASU is effective for annual reporting periods beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. The Company is currently assessing the effect that adoption of this guidance will have on its Consolidated Financial Statements.SUBSIDIARIES

9NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~ENNIS,~~FOR ~~INC.~~THE ~~AND~~PERIOD ~~SUBSIDIARIES~~ENDED MAY 31, 2025(unaudited)

~~NOTES~~2. ~~TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~Revenue

~~FOR~~Nature ~~THE~~of ~~PERIOD ENDED NOVEMBER 30, 2024(unaudited)~~Revenues

2.Substantially all of the Company’s revenue is derived from the sale of printed products in the continental United States of America and is primarily recognized at a point in time in an amount that reflects the consideration the Company expects to be provided in exchange for those goods. Revenue from the sale of commercial printing products, including shipping and handling fees billed to customers, is recognized when the performance obligation is met upon the transfer of control to the customer, which is generally upon shipment to the customer when the terms of the sale are freight on board ("FOB") shipping point, or, to a lesser extent, upon delivery to the customer if the terms of the sale are FOB destination. Net sales represent gross sales invoiced to customers, less certain related charges, including sales tax, discounts, returns and other allowances. Returns, discounts and other allowances have historically been insignificant.

~~Nature~~In a small number of ~~Revenues~~cases and upon customer request, the Company prints and stores printed product for customer specified future delivery, generally within the same year as the product is manufactured. In this case, revenue is recognized upon the transfer of control when manufacturing is complete and title and risk of ownership is passed to the customer while the inventory remains in the Company’s warehouse. Approximately $3.0 million and $3.8 million of revenue was recognized under these arrangements during the three months ended May 31, 2025 and 2024, respectively.

~~Substantially~~Storage ~~all of the Company’s~~ revenue isfor ~~derived~~certain ~~from~~customers ~~the~~may ~~sale~~be ofrecognized ~~commercial~~over ~~printing~~time ~~products~~rather inthan ~~the continental United States of America and is primarily recognized~~ at a point in time. inThe an amount ~~that~~of ~~reflects~~storage ~~the~~revenue ~~consideration~~is ~~the~~immaterial ~~Company expects~~ to bethe ~~provided~~Consolidated inFinancial ~~exchange for those goods~~Statements. ~~Revenue~~ ~~from~~As the ~~sale~~output ofmethod ~~commercial~~for ~~printing~~measure ~~products,~~of ~~including~~progress ~~shipping~~is ~~and~~determined ~~handling fees billed~~ to ~~customers~~be appropriate, ~~is recognized when~~ the ~~performance~~Company ~~obligation~~recognizes isrevenue ~~met~~in ~~upon~~ the ~~transfer~~amount offor ~~control to the customer,~~ which isit ~~generally~~has ~~upon~~the ~~shipment~~right to ~~the~~invoice ~~customer~~for ~~when~~revenue ~~the~~that ~~terms~~is ofrecognized ~~the~~over ~~sale~~time ~~are~~and ~~freight~~for onwhich ~~board~~it ~~("FOB")~~demonstrates ~~shipping~~that ~~point,~~the ~~or,~~invoiced toamount acorresponds ~~lesser~~directly ~~extent,~~with ~~upon~~the ~~delivery~~value to the customer iffor the ~~terms~~performance ofcompleted ~~the sale are FOB destination. Net sales represent gross sales invoiced~~ to ~~customers, less certain related charges, including sales tax, discounts, returns and other allowances~~date. ~~Returns, discounts and other allowances have historically been insignificant.~~

InThe ~~a small number of cases and upon customer request, the~~ Company ~~prints~~does ~~and~~not ~~stores~~disaggregate ~~commercial printing product for customer specified future delivery, generally within the same year as the product is manufactured. In this case,~~ revenue ~~is recognized upon the transfer of control when manufacturing is complete~~ and ~~title~~operates ~~and risk of ownership is passed to the customer. Storage revenue for certain customers may be recognized over time rather than at a point~~ in ~~time. As~~one ofreportable ~~the~~segment ~~date~~consisting of ~~this~~printed ~~report~~product revenue, ~~the~~which ~~amount~~is ofreported ~~storage~~as ~~revenue~~net issales ~~not~~on ~~significant to~~ the ~~Company’s~~ condensed consolidated ~~financial~~ statements~~. The~~ ~~output method for measure~~ of ~~progress~~operations. isSee ~~determined~~Note ~~to be appropriate~~19. The Company ~~recognizes~~does ~~storage~~not ~~revenue~~have inmaterial ~~the~~contract ~~amount~~assets ~~for which it has the right to invoice for revenue that is recognized over time~~ and ~~for~~contract ~~which~~liabilities itas ~~demonstrates~~of ~~that~~May ~~the~~31, ~~invoiced amount corresponds directly with the value to the customer for the performance completed to date~~2025.

~~The~~Significant Company does not disaggregate revenue and operates in one reportable segment consisting of commercial printed product revenue, which is reported as net sales on the condensed consolidated statements of operations. The Company does not have material contract assets and contract liabilities as of November 30, 2024.Judgments

~~Significant~~Generally, ~~Judgments~~the Company’s contracts with customers are comprised of a written quote and customer purchase order or statement of work, and governed by the Company’s trade terms and conditions. In certain instances, it may be further supplemented by separate pricing agreements and customer incentive arrangements, which typically only affect the contract’s transaction price. Contracts do not contain a significant financing component as payment terms on invoiced amounts are typically between 30 to 90 days, based on the Company’s credit assessment of individual customers, as well as industry expectations. Product returns are not significant as the bulk of the Company's sales are custom in nature.

~~Generally~~From time to time, the Company’s ~~contracts~~may ~~with~~offer ~~customers~~incentives ~~are~~to ~~comprised~~its ofcustomers aconsidered ~~written~~to ~~quote~~be ~~and~~variable ~~customer~~consideration ~~purchase~~including ~~order~~volume-based rebates or ~~statement~~early ofpayment ~~work, and governed by the Company’s trade terms and conditions~~discounts. In ~~certain~~Customer ~~instances,~~incentives itconsidered ~~may~~to be ~~further~~variable ~~supplemented~~consideration byare ~~separate~~recorded ~~pricing~~as ~~agreements~~a ~~and~~reduction ~~customer~~to ~~incentive~~revenue ~~arrangements,~~as ~~which~~part ~~typically~~of ~~only affect~~ the ~~contract’s~~ transaction price. ~~Contracts~~at docontract ~~not~~inception ~~contain~~when athere ~~significant~~is ~~financing~~a ~~component~~basis asto ~~payment~~reasonably ~~terms~~estimate onthe ~~invoiced~~amount ~~amounts~~of ~~are~~the ~~typically~~incentive ~~between~~and 30only to 90the ~~days,~~extent ~~based~~that onit ~~the~~is ~~Company’s~~probable ~~credit~~that ~~assessment~~a ofsignificant ~~individual~~reversal ~~customers,~~of asany ~~well~~incremental asrevenue ~~industry~~will ~~expectations~~not occur. ~~Product~~Customer ~~returns~~incentives are ~~not~~allocated ~~significant~~entirely asto the ~~bulk~~single performance obligation of ~~our~~transferring ~~sales~~printed product to the customer and are ~~custom~~not inconsidered ~~nature~~material.

~~From~~For ~~time~~customers towith ~~time,~~terms ~~the~~of ~~Company~~FOB ~~may~~shipping ~~offer~~point, ~~incentives~~the toCompany ~~its~~accounts ~~customers~~for ~~considered~~shipping toand behandling ~~variable~~activities ~~consideration~~performed ~~including~~after ~~volume-based~~the ~~rebates~~control orof ~~early~~the ~~payment~~printed ~~discounts.~~product ~~Customer~~has ~~incentives~~been ~~considered~~transferred to bethe ~~variable~~customer ~~consideration are recorded~~ as a ~~reduction~~fulfillment tocost. ~~revenue~~The asCompany ~~part~~accrues offor the ~~transaction~~costs ~~price at contract inception when there is a basis to reasonably estimate the amount~~ of ~~the~~shipping ~~incentive~~ and ~~only~~handling toactivities ~~the~~if ~~extent~~revenue ~~that it~~ is ~~probable~~recognized ~~that~~before acontractually ~~significant~~agreed ~~reversal~~shipping ofand ~~any~~handling ~~incremental~~activities ~~revenue will not~~ occur. ~~Customer incentives are allocated entirely to the single performance obligation of transferring printed product to the customer and are not considered material.~~

~~For~~The ~~customers~~Company’s contracts with ~~terms~~customers ofare ~~FOB~~generally ~~shipping~~short-term ~~point~~in nature. Accordingly, the Company ~~accounts~~does ~~for~~not ~~shipping~~disclose ~~and handling activities performed after~~ the ~~control~~value of ~~the~~unsatisfied ~~printed~~performance ~~product~~obligations ~~has~~nor ~~been transferred to~~ the ~~customer~~timing ~~as a fulfillment cost. The Company accrues for the costs~~ of ~~shipping and handling activities if~~ revenue ~~is recognized before contractually agreed shipping and handling activities occur~~recognition.

The Company’s contracts with customers are generally short-term in nature. Accordingly, the Company does not disclose the value of unsatisfied performance obligations nor the timing of revenue recognition.10

10ENNIS, INC. AND SUBSIDIARIES

~~ENNIS,~~NOTES ~~INC.~~TO ~~AND~~CONDENSED ~~SUBSIDIARIES~~CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES~~FOR TOTHE ~~CONDENSED~~PERIOD ~~CONSOLIDATED~~ENDED ~~FINANCIAL~~MAY ~~STATEMENTS~~31, 2025(unaudited)

~~FOR~~3. ~~THE~~Short-term ~~PERIOD~~Investments ~~ENDED~~and ~~NOVEMBER~~Fair ~~30,~~Value ~~2024(unaudited)~~Measurements

3Short-term investments are securities with original maturities of greater than three months but less than twelve months and were comprised of U.S. ~~Short~~Treasury Bills. The Company determines the classification of these securities as trading, available for sale or held to maturity at the time of purchase and re-evaluates these determinations at each balance sheet date. The Company's short-term ~~Investments~~investments were classified as held-to-maturity for the period presented as it had the positive intent and ~~Fair~~ability ~~Value~~to ~~Measurements~~hold these investments to maturity. The Company's held-to-maturity investments were stated at amortized cost with a zero credit loss allowance because the probability of default is virtually zero due to the high credit rating, long history of no credit losses and the widely recognized risk free nature of these investments.

~~Short-term~~Amortized ~~investments~~cost ~~are securities with original maturities of greater than three months but less than twelve months~~ and ~~are~~estimated ~~comprised~~fair ofvalue ~~U.S. Treasury Bills. The Company determines the classification~~ of ~~these~~investment securities ~~as trading, available for sale or held to maturity at the time of purchase and re-evaluates these determinations at each balance sheet date. The Company's short-term investments are~~ classified as held-to-maturity ~~for~~were ~~the period presented~~ as itfollows ~~has the positive intent and ability to hold these investments to maturity. The Company's held-to-maturity investments are stated~~ at ~~amortized~~May ~~cost with a zero credit loss allowance because the probability of default is virtually zero due to the high credit rating~~31, ~~long~~2025 ~~history of no credit losses~~ and ~~the~~February ~~widely~~28, ~~recognized~~2025 ~~risk~~(in ~~free nature of these investments.~~thousands):

Amortized cost and estimated fair value of investment securities classified as held-to-maturity were as follows at November 30, 2024 and February 29, 2024 (in thousands):


			Gross		Gross
	Cost or		Unrealized		Unrealized		Estimated
	Amortized		Holding		Holding		Fair
	Cost		Gains		Losses		Value
May 31, 2025
Investment securities due in less than one year	$	—	$	—	$	—	$	—

February 28, 2025
Investment securities due in less than one year	$	5,475	$	4	$	—	$	5,479

	November 30, 2024
			Gross		Gross
	Cost or		Unrealized		Unrealized		Estimated
	Amortized		Holding		Holding		Fair
	Cost		Gains		Losses		Value
November 30, 2024
Investment securities due in less than one year	$	12,862	$	9	$	—	$	12,871
February 29, 2024
Investment securities due in less than one year	$	29,325	$	—	$	45	$	29,280

The Company’s short-term investments in investment securities were Level 1 fair value measure. The Company did not hold any Level 2 or 3 financial assets or liabilities measured at fair value on a recurring basis. There were no transfers between levels during the three months ended May 31, 2025.

~~The Company’s short-term investments in investment securities are Level 1 fair value measure~~4. ~~The~~ Company did not hold any Level 2 or 3 financial assets or liabilities measured at fair value on a recurring basis. There were no transfers between levels during the three and nine months ended November 30, 2024.Receivables

4. Accounts Receivable and Allowance for Credit Losses

Accounts receivable are reduced by an allowance for an estimate of amounts that are uncollectible. Substantially all of the Company’s receivables are due from customers in North America. The Company extends credit to its customers based upon its evaluation of the following factors: (i) the customer’s financial condition, (ii) the amount of credit the customer requests, and (iii) the customer’s actual payment history (which includes disputed invoice resolution). The Company does not typically require its customers to post a deposit or supply collateral. The Company’s allowance for credit losses is based on an analysis that estimates the amount of its total customer receivable balance that is not collectible. This analysis includes assessing a default probability to customers’ receivable balances, which is influenced by several factors including (i) current market conditions, (ii) periodic review of customer credit worthiness, and (iii) review of customer receivable aging and payment trends. Accounts receivable relate to credit extended directly to customers in the ordinary course of business.

The Company writes off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance in the period the payment is received. Recoveries for the years presented were not significant to the financial statements. Credit losses from continuing operations have consistently been within management’s expectations.

The following table presents the activity in the Company’s allowance for credit losses (in thousands):

	Three months ended						~~Nine months ended~~
	November 30,						November 30,
	May 31,
	2024			2023			2024			2023
	2025			2024
Balance at beginning of period	$	1,~~776~~713		$	1,~~866~~707		$	~~1,707~~		$	~~1,710~~
Bad debt expense, net of recoveries		~~(25~~90	)		~~138~~110			~~152~~			~~373~~
Accounts written off		(3345	)		(4697	)		~~(141~~	)		~~(125~~	)
Balance at end of period	$	1,~~718~~758		$	1,~~958~~720		$	~~1,718~~		$	~~1,958~~

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED ~~NOVEMBER~~MAY 3031, ~~2024~~2025(unaudited)

~~The~~Other ~~following table summarizes the components of accounts receivable as of the dates indicated (in thousands):~~Receivables

	November 30,		February 29,
	2024		2024
Trade receivables, net of allowance for credit losses	$	34,389	$	39,665
Vendor rebates		1,442		3,109
Note receivable		4,395		4,435
Other		29		—
	$	40,255	$	47,209

Other receivables primarily consist of vendor rebate receivables which represent amounts due from vendors for volume and are generally negotiated at the beginning of the annual period. The Company receives volume-based rebates from certain suppliers. These rebates are recognized as a reduction in the cost of inventory and are recognized in cost of goods sold when the related inventory is sold. Rebates are accrued based on purchases and in accordance with the contractual terms.

~~The note receivable relates to the sale of an unused manufacturing facility and was originally structured to be paid in 12 consecutive monthly installments, with a fixed interest rate of~~ 5.~~95%~~ per annum and a balloon payment due upon completion of the final payment. In accordance with the note receivable agreement, the note receivable has been extended beyond the one-year maturity date due to regulatory delays in clearing the facility for third-party financing. The note receivable continues to be classified as current as the Company believes the regulatory delays will be resolved in the next twelve months. Inventories

5The Company values its inventories at the lower of first-in, first out (“FIFO”) cost or market cost, with the exception of approximately 10.4% ~~Inventories~~and 7.1% of inventories which is valued at last-in, first-out (“LIFO”) as of May 31, 2025 and February 28, 2025, respectively, or net realizable value. The Company regularly reviews inventories on hand, using specific aging categories, and writes down the carrying value of its inventories for excess and potentially obsolete inventories based on historical usage and estimated future usage. In assessing the ultimate realization of its inventories, the Company is required to make judgments as to future demand requirements. As actual future demand or market conditions may vary from those projected by the Company, adjustments to inventories may be required. Reserves for excess and obsolete inventory at May 31, 2025 and February 28, 2025 were $1.8 million and $1.8 million, respectively.

~~With~~The ~~the~~following ~~exception~~table ofsummarizes ~~approximately 8.4% and 7.0% of its inventories valued at~~ the ~~lower~~components of ~~last-in first-out ("LIFO") for the periods ended November 30, 2024 and February 29, 2024, respectively, the Company values its~~ inventories at the ~~lower~~different ofstages ~~first-in, first-out ("FIFO") cost or net realizable value. The Company regularly reviews inventories on hand, using specific aging categories, and writes down the carrying value~~ of ~~its~~production ~~inventories~~as ~~for excess and potentially obsolete inventories based on historical usage and estimated future usage. In assessing the ultimate realization~~ of ~~its inventories,~~ the ~~Company~~dates isindicated ~~required~~(in to make judgments as to future demand requirements. As actual future demand or market conditions may vary from those projected by the Company, adjustments to inventories may be required. Reserves for excess and obsolete inventory at November 30, 2024 and February 29, 2024 were $1.8 million and $1.8 million, respectively.thousands):

The following table summarizes the components of inventories at the different stages of production as of the dates indicated (in thousands):


	May 31,		February 28,
	2025		2025
Raw material	$	31,073	$	20,862
Work-in-process		5,736		4,919
Finished goods		16,300		13,016
	$	53,109	$	38,797

	November 30,		February 29,
	2024		2024
Raw material	$	21,111	$	21,764
Work-in-process		4,702		5,621
Finished goods		13,566		12,652
	$	39,379	$	40,037

6. Acquisitions

6The Company applies the acquisition method of accounting for business combinations. Under ~~Acquisitions~~the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values with certain limited exceptions permitted under US GAAP. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets and liabilities assumed, is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Acquisition-related costs are expensed in the period incurred.

~~The~~Acquisition ~~Company applies the acquisition method~~ of ~~accounting~~Northeastern ~~for~~Envelope ~~business~~Company ~~combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired~~ and ~~liabilities~~Envelope assumed at their acquisition date fair values with certain limited exceptions permitted under US GAAP. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets and liabilities assumed, is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Acquisition-related costs are expensed in the period incurred.Superstore

~~Acquisition~~On April 11, 2025 the Company acquired the net assets and business of ~~Printing~~Northeastern ~~Technologies~~Envelope Company ("NEC"), which is based in Old Forge, Pennsylvania, and Envelope Superstore ("ESS") which is based in Hiram, Georgia, for approximately $34.9 million in cash. The Company performed a preliminary allocation of the total estimated consideration and recorded the underlying assets acquired (including certain identified intangible assets) and liabilities assumed based on the estimated fair values prepared by management using the information available as of the acquisition date. All goodwill of $12.4 million recognized as a part of this acquisition is deductible for tax purposes. The Company also recorded intangible assets with definite lives ranging from 2 to 13 years of approximately $11.5 million in connection with the transaction, which are also deductible for tax purposes. This allocation is preliminary and subject to change, which may be material. The acquisition of NEC and ESS strengthens our production capabilities to serve our customers in the Northeast United States.

On June 26, 2024, the Company acquired the assets and business of Printing Technologies, Inc. ("PTI"), which is based in Indianapolis, Indiana, for approximately $5.5 million in cash. The Company performed an allocation of the total estimated consideration and recorded the underlying assets acquired (including certain identified intangible assets) and liabilities assumed based on the estimated fair values using the information available as of the acquisition date. The Company recorded intangible assets with definite lives of approximately $2.0 million in connection with the transaction, which are deductible for tax purposes. The acquisition 12

12ENNIS, INC. AND SUBSIDIARIES

~~ENNIS,~~NOTES ~~INC.~~TO ~~AND~~CONDENSED ~~SUBSIDIARIES~~CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES~~FOR TOTHE ~~CONDENSED~~PERIOD ~~CONSOLIDATED~~ENDED ~~FINANCIAL~~MAY ~~STATEMENTS~~31, 2025(unaudited)

~~FOR~~The ~~THE~~following ~~PERIOD~~table ~~ENDED~~summarizes ~~NOVEMBER~~the ~~30,~~Company's ~~2024~~purchase price allocation for NEC and ESS as of the acquisition date (~~unaudited~~in thousands):

of PTI strengthens our production capabilities and diversifies our product offerings to enable us to better serve our broad customer base.


Accounts receivable	$	1,585
Inventories		2,514
Right-of-use asset		601
Property, plant and equipment		7,371
Goodwill		12,407
Intangibles		11,498
Operating lease liability		(601	)
Accounts payable and accrued liabilities		(444	)
Acquisition price	$	34,931

~~The~~Acquisition ~~following~~of ~~table~~Printing ~~summarizes the Company's purchase price allocation for PTI subsequent to the acquisition date (in thousands):~~Technologies

Accounts receivable	$	1,339
Inventories		1,826
Other assets		100
Right-of-use asset		847
Property, plant and equipment		887
Intangibles		2,012
Operating lease liability		(847	)
Accounts payable and accrued liabilities		(633	)
Acquisition price	$	5,531

~~Acquisition~~The offollowing ~~Eagle~~table ~~Graphics~~summarizes ~~and~~the ~~Diamond~~Company's ~~Graphics~~purchase price allocation for PTI subsequent to the acquisition date (in thousands):

On October 11, 2023, the Company acquired the assets and business of Eagle Graphics, Inc. ("Eagle"), which is based in Annville, Pennsylvania, and Diamond Graphics, Inc. ("Diamond"), which is based in Bensalem, Pennsylvania, for approximately $7.9 million in cash. The Company performed an allocation of the total estimated consideration and recorded the underlying assets acquired (including certain identified intangible assets) and liabilities assumed based on the estimated fair values prepared by management using the information available as of the acquisition date. All goodwill of $0.2 million recognized as a part of this acquisition is deductible for tax purposes. The Company also recorded intangible assets with definite lives of approximately $0.8 million in connection with the transaction, which are also deductible for tax purposes. The acquisition of Eagle and Diamond strengthens our production capabilities to serve our customers in the Northeast United States.


Accounts receivable	$	1,339
Inventories		1,826
Other assets		100
Right-of-use asset		847
Property, plant and equipment		887
Intangibles		2,012
Operating lease liability		(847	)
Accounts payable and accrued liabilities		(633	)
Acquisition price	$	5,531

The ~~following~~results ~~table~~of ~~summarizes~~operations for PTI, NEC and ESS are included in the Company'’s ~~purchase~~condensed ~~price~~consolidated ~~allocation~~financial ~~for~~statements ~~Eagle~~from ~~and~~the ~~Diamond~~respective dates of acquisition. The following table sets forth certain operating information on a pro forma basis as though each acquisition had occurred as of the ~~acquisition~~beginning ~~date~~of the comparable prior period (that is, March 1, 2024). The following pro forma information includes the estimated impact of adjustments such as amortization of intangible assets, depreciation expense and interest expense and related tax effects (in thousands, except per share amounts):.

Accounts receivable	$	838
	Three months ended
Inventories		917
	May 31, 2025			May 31, 2024
Property, plant and equipment		5,304
Pro forma net sales	$	99,283		$	110,506
Goodwill and intangibles		971
Pro forma net earnings		10,064			11,175
Accounts payable and accrued liabilities		(159	)
Pro forma earnings per share - diluted	$	0.39		$	0.43
Acquisition price	$	7,871

~~Acquisition~~The pro forma results are not necessarily indicative of ~~UMC~~what ~~Print~~would have occurred if the acquisitions had been in effect for the full duration of the comparative periods presented.

On June 2, 2023, the Company acquired the assets and business of UMC Print ("UMC"), which is based in Overland Park, Kansas, for approximately $7.5 million in cash plus the assumption of trade payables of approximately $0.8 million. The Company performed an allocation of the total estimated consideration and recorded the underlying assets acquired (including certain identified intangible assets) and liabilities assumed based on the estimated fair values prepared by management using the information available as of the acquisition date. In January 2024, the Company received an indemnity claim from escrow related to a piece of equipment in the amount of $0.2 million. All goodwill of $2.2 million recognized as a part of this acquisition is deductible for tax purposes. The Company also recorded intangible assets with definite lives of approximately $2.7 million in connection with the transaction, which are also deductible for tax purposes. The acquisition of UMC brings the Company expanded commercial print capabilities serving customers throughout the Midwest United States. 13

13ENNIS, INC. AND SUBSIDIARIES

~~ENNIS,~~NOTES ~~INC.~~TO ~~AND~~CONDENSED ~~SUBSIDIARIES~~CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES~~FOR TOTHE ~~CONDENSED~~PERIOD ~~CONSOLIDATED~~ENDED ~~FINANCIAL~~MAY ~~STATEMENTS~~31, 2025(unaudited)

~~FOR~~7. ~~THE PERIOD ENDED NOVEMBER 30, 2024(unaudited)~~Leases

The ~~following~~Company ~~table~~leases ~~summarizes~~certain of its facilities and equipment under operating leases, which are recorded as right-of-use assets and lease liabilities. The Company’s leases generally have terms of 1 – 5 years, with certain leases including renewal options to extend the leases for additional periods at the Company'’s discretion. At lease inception, all renewal options reasonably certain to be exercised are considered when determining the lease term. The Company currently does not have leases that include options to purchase ~~price~~or ~~allocation~~provisions ~~for~~that ~~UMC~~would asautomatically transfer ownership of the ~~acquisition~~leased ~~date~~property ~~(in~~to ~~thousands):~~the Company.

Cash	$	758
Accounts receivable		1,839
Inventories		553
Property, plant and equipment		2,137
Goodwill and intangibles		2,971
Accounts payable and accrued liabilities		(789	)
Acquisition price	$	7,469

Operating lease expense is recognized on a straight-line basis over the lease term, and variable lease payments are expensed as incurred. The Company had no material variable lease costs for the three months ended May 31, 2025 and 2024.

~~Acquisition~~The Company determines whether a contract is or contains a lease at the inception of ~~Stylecraft~~the ~~Printing~~contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and directs the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from the use of the property, plant, and equipment.

OnOperating ~~May~~lease ~~23,~~assets ~~2023, the Company acquired the real estate~~ and ~~operations~~liabilities ofare ~~Stylecraft~~recognized ~~Printing~~at ~~Company~~the ~~("Stylecraft"),~~lease ~~which~~commencement isdate based inon ~~Canton,~~the ~~Michigan,~~present ~~for~~value ~~$5.0~~of ~~million~~lease ~~plus~~payments over the ~~assumption~~lease ~~of trade payables~~term. To ~~The~~determine ~~Company~~the ~~performed~~present anvalue ~~allocation~~ of ~~the~~lease ~~total~~payments ~~estimated~~not ~~consideration~~yet ~~and~~paid, ~~recorded~~ the ~~underlying~~Company ~~assets~~estimates ~~acquired~~incremental ~~(including~~borrowing ~~certain~~rates ~~identified intangible assets) and liabilities assumed~~ based on ~~their estimated fair values using~~ the information available asat oflease ~~the~~commencement ~~acquisition~~ date., ~~All goodwill of $0.2 million recognized~~ as arates ~~part of this acquisition is deductible for tax purposes. The Company also recorded intangible assets with definite lives of approximately $0.3 million in connection with the transaction, which~~ are ~~also~~not ~~deductible~~implicitly ~~for~~stated ~~tax purposes. The acquisition of Stylecraft expands the Company's product lines and footprint specializing~~ in ~~business~~most ~~forms, integrated products and commercial printing~~leases.

~~The~~Components ~~following~~of ~~table~~lease ~~summarizes~~expense for the ~~Company's~~three ~~purchase~~months ~~price~~ended ~~allocation~~May ~~for~~31, ~~Stylecraft~~2025 asand of2024 ~~the~~were ~~acquisition~~as ~~date~~follows (in thousands):

Accounts receivable	$	554
	Three months ended
Inventories		849
	May 31, 2025			May 31, 2024
Right-of-use asset		28
Operating lease cost	$	1,431		$	1,347
Property, plant and equipment		3,160
Supplemental cash flow information related to leases was as follows:
Goodwill and intangibles		476
Cash paid for amounts included in the measurement of lease liabilities
Operating lease liability		(28	)
Operating cash flows from operating leases	$	1,446		$	1,369
Accounts payable and accrued liabilities		(12	)
Right-of-use assets obtained in exchange for lease obligations
Acquisition price	$	5,027
Operating leases	$	2,299		$	648

The results of operations for Stylecraft, UMC, Eagle and PTI are included in the Company’s consolidated financial statements from the respective dates of acquisition. The following table sets forth certain operating information on a pro forma basis as though each acquisition had occurred as of the beginning of the comparable prior period (that is, March 1, 2023). The following pro forma information includes the estimated impact of adjustments such as amortization of intangible assets, depreciation expense and interest expense and related tax effects (in thousands, except per share amounts).


Weighted Average Remaining Lease Terms
Operating leases	3.0 Years	2.4 Years

Weighted Average Discount Rate
Operating leases	4.39%	4.16%

	Three months ended				Nine months ended
	November 30,2024		November 30,2023		November 30,2024		November 30,2023
Pro forma net sales	$	99,771	$	108,830	$	306,582	$	344,268
Pro forma net earnings		10,204		10,235		31,274		34,543
Pro forma earnings per share - diluted	$	0.39	$	0.39	$	1.19	$	1.33

Future minimum lease commitments under non-cancelable operating leases for each of the fiscal years ending are as follows (in thousands):

The pro forma results are not necessarily indicative of what would have occurred if the acquisitions had been in effect for the full duration of the comparative periods presented.


	Operating
	Lease
	Commitments
2026 (remaining 9 months)	$	3,384
2027		3,675
2028		2,254
2029		1,391
2030		477
2031		12
Total future minimum lease payments	$	11,193
Less imputed interest		676
Present value of lease liabilities	$	10,517

ENNIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED ~~NOVEMBER~~MAY 3031, ~~2024~~2025(unaudited)

78. ~~Leases~~Goodwill and Intangible Assets

~~The~~Goodwill ~~Company~~represents ~~leases~~the ~~certain~~excess of ~~its~~the ~~facilities~~purchase ~~and~~price ~~equipment~~over ~~under~~the ~~operating~~fair ~~leases,~~value ~~which~~of ~~are~~net ~~recorded~~assets ~~as right-~~of~~-use~~ ~~assets~~acquired businesses and ~~lease~~is ~~liabilities~~not amortized. ~~The~~Goodwill ~~Company’s~~and ~~leases~~other ~~generally~~intangible ~~have~~assets ~~terms~~are oftested ~~1 – 5 years, with certain leases including renewal options to extend the leases~~ for ~~additional~~impairment ~~periods~~ at ~~the~~a ~~Company’s~~reporting ~~discretion. At~~unit ~~lease inception, all renewal options reasonably certain to be exercised are considered when determining the lease term~~level. The ~~Company~~annual ~~currently~~impairment ~~does~~test ~~not~~of ~~have~~goodwill ~~leases~~and ~~that~~intangible ~~include~~assets ~~options~~is toperformed ~~purchase~~as orof ~~provisions~~December ~~that~~1 ~~would automatically transfer ownership~~ of ~~the~~each ~~leased~~fiscal ~~property to the Company~~year.

~~Operating~~The ~~lease~~Company ~~expense~~uses qualitative factors to determine whether it is ~~recognized~~more onlikely athan ~~straight-line~~not ~~basis~~(likelihood ~~over~~of more than 50%) that the ~~lease~~fair ~~term,~~value ~~and~~of ~~variable~~a ~~lease~~reporting ~~payments~~unit ~~are~~exceeds ~~expensed~~its ascarrying ~~incurred~~amount, including goodwill. ~~The~~ ~~Company~~Some ~~had~~of nothe ~~material~~qualitative ~~variable~~factors ~~lease~~considered ~~costs~~in ~~for~~applying ~~the~~this ~~three~~test include consideration of macroeconomic conditions, industry and ~~nine~~market ~~months~~conditions, ~~ended~~cost ~~November~~factors 30affecting the business, ~~2024~~overall financial performance of the business, and ~~2023~~performance of the share price of the Company.

~~The~~If ~~Company~~qualitative ~~determines~~factors ~~whether~~are anot ~~contract~~deemed issufficient orto ~~contains~~conclude athat ~~lease at~~ the ~~inception~~fair value of the ~~contract.~~reporting Aunit ~~contract~~more ~~will~~likely bethan ~~deemed~~not toexceeds beits orcarrying ~~contain~~value, then a ~~lease~~one-step ifapproach ~~the~~is ~~contract~~applied ~~conveys~~in ~~the~~making ~~right~~an evaluation. The evaluation utilizes multiple valuation methodologies, including a market approach (market price multiples of comparable companies) and an income approach (discounted cash flow analysis). The computations require management to ~~control~~make significant estimates and ~~directs~~assumptions, ~~the~~including, ~~use~~among other things, selection of ~~identified~~comparable ~~property,~~publicly ~~plant~~traded companies, orthe ~~equipment~~discount ~~for~~rate applied to future earnings reflecting a ~~period~~weighted average cost of ~~time~~capital, inand ~~exchange~~earnings ~~for~~growth ~~consideration~~assumptions. ~~The~~A ~~Company~~discounted ~~generally~~cash ~~must~~flow ~~also~~analysis ~~have~~requires ~~the~~management ~~right~~ to ~~obtain~~make ~~substantially~~various ~~all~~assumptions ofabout future sales, operating margins, capital expenditures, working capital, and growth rates. If the ~~economic~~evaluation ~~benefits~~results ~~from~~in the ~~use~~fair value of the ~~property,~~goodwill ~~plant~~for the reporting unit being lower than the carrying value, ~~and~~an ~~equipment~~impairment charge is recorded. A goodwill impairment charge was not required as of May 31, 2025.

~~Operating~~Definite-lived ~~lease~~intangible assets ~~and liabilities~~ are ~~recognized~~amortized ~~at the lease commencement date based on the present value of lease payments~~ over ~~the~~their ~~lease~~estimated ~~term. To~~useful ~~determine~~lives ~~the~~and ~~present~~tested ~~value~~for ofimpairment ~~lease~~if ~~payments~~events ~~not~~or ~~yet~~changes ~~paid,~~in ~~the~~circumstances ~~Company~~indicate ~~estimates~~that ~~incremental borrowing rates based on~~ the ~~information~~asset ~~available~~may atbe ~~lease commencement date, as rates are not implicitly stated in most leases~~impaired.

~~Components~~The ofcarrying ~~lease~~amount ~~expense~~and ~~for~~accumulated ~~the~~amortization ~~three~~of ~~and~~the ~~nine~~Company’s ~~months~~intangible ~~ended~~assets ~~November~~at ~~30,~~each ~~2024~~balance ~~and~~sheet ~~2023~~date ~~were~~are as follows (in thousands):

	Three months ended				Nine months ended
	Weighted
	November 30,2024		November 30,2023		November 30,2024		November 30,2023
	Average
Operating lease cost	$	1,412	$	1,390	$	4,148	$	4,241
	Remaining		Gross
Supplemental cash flow information related to leases was as follows:
	Life		Carrying		Accumulated
Cash paid for amounts included in the measurement of lease liabilities
As of May 31, 2025	(in years)		Amount		Amortization		Net
Operating cash flows from operating leases	$	1,431	$	1,394	$	4,210	$	4,256
Definite-lived intangible assets
Right-of-use assets obtained in exchange for lease obligations
Trademarks and trade names		6.4	$	32,421	$	17,038	$	15,383
Operating leases	$	4,052	$	214	$	5,547	$	993
Customer lists		7.6		93,273		66,306		26,967
Non-compete		1.0		280		224		56
Technology		4.5		650		232		418
Total		7.1	$	126,624	$	83,800	$	42,824
As of February 28, 2025
Definite-lived intangible assets
Trademarks and trade names		6.9	$	30,911	$	16,544	$	14,367
Customer lists		4.8		83,303		64,890		18,413
Non-compete		0.8		261		212		49
Technology		4.8		650		209		441
Total		5.7	$	115,125	$	81,855	$	33,270

Weighted Average Remaining Lease Terms
Operating leases	3.0 Years	3.0 Years
Weighted Average Discount Rate
Operating leases	4.56%	4.03%

15ENNIS, INC. AND SUBSIDIARIES

~~ENNIS,~~NOTES ~~INC.~~TO ~~AND~~CONDENSED ~~SUBSIDIARIES~~CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES~~FOR TOTHE ~~CONDENSED~~PERIOD ~~CONSOLIDATED~~ENDED ~~FINANCIAL~~MAY ~~STATEMENTS~~31, 2025(unaudited)

~~FOR~~Aggregate ~~THE~~amortization ~~PERIOD~~expense ~~ENDED~~was ~~NOVEMBER~~$1.9 30million for the three months ended May 31, 2025 and May 31, 2024~~(unaudited)~~.

~~Future~~The ~~minimum~~Company’s ~~lease~~estimated ~~commitments~~amortization ~~under~~expense ~~non-cancelable~~for ~~operating~~the ~~leases~~current ~~for~~and ~~each~~next offive ~~the~~ fiscal years ~~ending~~is ~~are~~ as follows (in thousands):

	Operating
2026 (remaining)	$	6,726
	Lease
2027	$	7,759
	Commitments
2028	$	6,245
2025 (remaining 3 months)	$	947
2029	$	5,609
2026		4,807
2030	$	4,394
2027		3,104
2031	$	3,731
2028		1,666
2029		824
2030		297
Total future minimum lease payments	$	11,645
Less imputed interest		820
Present value of lease liabilities	$	10,825

8.Changes ~~Goodwill~~in ~~and~~the ~~Intangible~~net ~~Assets~~carrying amount of goodwill as of the dates indicated are as follows (in thousands):

Goodwill represents the excess of the purchase price over the fair value of net assets of acquired businesses and is not amortized. Goodwill and other intangible assets are tested for impairment at a reporting unit level. The annual impairment test of goodwill and intangible assets is performed as of December 1 of each fiscal year.


Balance as of March 1, 2024	$	94,349
Goodwill acquired		—
Balance as of February 28, 2025		94,349
Goodwill acquired		12,407
Balance as of May 31, 2025	$	106,756

~~The~~During ~~Company~~fiscal ~~uses~~year ~~qualitative factors to determine whether it is more likely than not (likelihood of more than 50%) that the fair value of a reporting unit exceeds its carrying amount~~2026, ~~including goodwill~~$12.4 ~~Some~~million ofwas ~~the~~added ~~qualitative~~to ~~factors~~goodwill ~~considered~~related into ~~applying this test include consideration of macroeconomic conditions, industry and market conditions, cost factors affecting~~ the ~~business,~~acquisition ~~overall financial performance~~ of ~~the~~NEC ~~business,~~ and ~~performance of the share price of the Company~~ESS.

If qualitative factors are not deemed sufficient to conclude that the fair value of the reporting unit more likely than not exceeds its carrying value, then a one-step approach is applied in making an evaluation9. ~~The~~Accrued evaluation utilizes multiple valuation methodologies, including a market approach (market price multiples of comparable companies) and an income approach (discounted cash flow analysis). The computations require management to make significant estimates and assumptions, including, among other things, selection of comparable publicly traded companies, the discount rate applied to future earnings reflecting a weighted average cost of capital, and earnings growth assumptions. A discounted cash flow analysis requires management to make various assumptions about future sales, operating margins, capital expenditures, working capital, and growth rates. If the evaluation results in the fair value of the goodwill for the reporting unit being lower than the carrying value, an impairment charge is recorded.Expenses

~~Definite-lived~~The ~~intangible~~following ~~assets~~table ~~are~~summarizes ~~amortized~~the ~~over~~components ~~their~~of ~~estimated~~accrued ~~useful~~expenses ~~lives~~as ~~and~~of ~~tested~~the ~~for~~dates ~~impairment~~indicated ~~if events or changes~~ (in ~~circumstances indicate that the asset may be impaired.~~thousands):


	May 31,		February 28,
	2025		2025
Employee compensation and benefits	$	10,759	$	11,505
Taxes other than income		1,866		1,440
Accrued legal and professional fees		342		521
Accrued utilities		138		108
Income taxes payable		3,960		567
Other accrued expenses		1,326		1,198
	$	18,391	$	15,339

~~ENNIS, INC~~10. ~~AND~~Credit ~~SUBSIDIARIES~~Facility

~~NOTES~~As TOof ~~CONDENSED~~May ~~CONSOLIDATED~~31, ~~FINANCIAL~~2025, ~~STATEMENTS~~the Company had $0.3 million outstanding under a standby letters of credit arrangement secured by a cash collateral bank account.

~~FOR~~11. ~~THE~~Shareholders’ ~~PERIOD ENDED NOVEMBER 30, 2024(unaudited)~~Equity

The ~~carrying~~Company’s ~~amount~~board ~~and~~of ~~accumulated~~directors ~~amortization~~(the "Board") has authorized the repurchase of the Company’s ~~intangible~~outstanding ~~assets~~common atstock ~~each~~through ~~balance~~a ~~sheet~~stock ~~date~~repurchase ~~are~~program, aswhich ~~follows~~authorized (amount is currently up to $60.0 million in ~~thousands):~~the aggregate. Under the repurchase program, purchases may be made from time to time in the open market or through privately negotiated transactions depending on market conditions, share price, trading volume and other factors. Such purchases, if any, will be made in accordance with applicable insider trading and other securities laws and regulations. These repurchases may be commenced or suspended at any time or from time to time without prior notice.

	Weighted
	Average
	Remaining		Gross
	Life		Carrying		Accumulated
As of November 30, 2024	(in years)		Amount		Amortization		Net
Definite-lived intangible assets
Trademarks and trade names		7.1	$	30,911	$	15,991	$	14,920
Customer lists		4.8		82,653		63,558		19,095
Non-compete		1.1		256		203		53
Technology		5.0		650		186		464
Total		5.8	$	114,470	$	79,938	$	34,532
As of February 29, 2024
Definite-lived intangible assets
Trademarks and trade names		7.6	$	29,817	$	14,366	$	15,451
Customer lists		5.1		81,753		59,473		22,280
Non-compete		1.6		238		176		62
Technology		5.8		650		116		534
Total		6.1	$	112,458	$	74,131	$	38,327

~~Aggregate amortization expense was $1.9 million and $5.8 million for the three and nine months ended November 30~~ENNIS, ~~2024 and $1~~INC.9 ~~million~~AND ~~and $5.8 million for the three and nine months ended November 30, 2023.~~SUBSIDIARIES

~~The~~NOTES ~~Company’s~~TO ~~estimated~~CONDENSED ~~amortization~~CONSOLIDATED ~~expense~~FINANCIAL ~~for the current and next five fiscal years is as follows (in thousands):~~STATEMENTS

2025 (remaining)	$	1,981
2026	$	7,158
2027	$	6,066
2028	$	4,569
2029	$	3,934
2030	$	2,719

FOR THE PERIOD ENDED MAY 31, 2025
(unaudited)

~~Changes~~During inthe three months ended May 31, 2025, the ~~net~~Company ~~carrying~~repurchased ~~amount~~260,560 shares of ~~goodwill~~common asstock ofunder the ~~dates~~program ~~indicated~~at ~~are~~an asaverage ~~follows~~price (of $19.04. Since the program’s inception in ~~thousands):~~October 2008, there have been 2,594,904 common shares repurchased at an average price of $16.73 per share. As of May 31, 2025, $16.6 million remained available to repurchase shares of the Company’s common stock under the program.

Balance as of March 1, 2023	$	91,819
Goodwill acquired		2,530
Balance as of February 29, 2024		94,349
Goodwill acquired		—
Balance as of November 30, 2024	$	94,349

12. Stock Based Compensation

~~During~~The ~~fiscal~~Company ~~year~~grants ~~2024~~stock options, ~~$2.5~~restricted ~~million~~stock ~~was~~and ~~added~~restricted tostock ~~goodwill~~units ~~related~~(“RSUs”) to key executives and managerial employees and non-employee directors. At May 31, 2025, the ~~acquisition~~Company had one stock option plan, the 2021 Long-Term Incentive Plan of ~~Stylecraft~~Ennis, ~~UMC~~Inc., ~~Eagle~~adopted by the Board April 16, 2021 and ~~Diamond~~affirmed by vote of the shareholders July 15, 2021 (the “Plan”). The plan authorized 1,033,648 shares of common stock for awards and expires June 30, 2031 and all unissued stock will expire on that date. May 31, 2025, the Company has 290,261 shares of unissued common stock reserved under the Plan for issuance. The exercise price of each stock option granted under the Plan equals a referenced price of the Company’s common stock as reported on the New York Stock Exchange on the date of grant, and an option’s maximum term is ten years. Stock options and restricted stock may be granted at different times during the year and vest ratably over various periods, from grant date up to five years. The Company uses treasury stock to satisfy option exercises and restricted stock awards.

17The Company recognizes compensation expense for stock options and restricted stock grants based on the grant date fair value of the award for stock options, restricted stock grants and RSUs on a straight-line basis over the requisite service period. The estimated number of shares to be achieved for performance based RSUs is updated each reporting period. For the three months ended May 31, 2025 and May 31, 2024, the Company included in selling, general and administrative expenses, compensation expense related to stock-based compensation of $0.7 million and $1.8 million, respectively.

~~ENNIS,~~Stock ~~INC. AND SUBSIDIARIES~~Options

~~NOTES~~The TOCompany ~~CONDENSED~~had ~~CONSOLIDATED~~the ~~FINANCIAL~~following ~~STATEMENTS~~stock option activity for the three months ended May 31, 2025.

FOR THE PERIOD ENDED NOVEMBER 30, 2024(unaudited)


						Weighted
				Weighted		Average		Aggregate
	Number			Average		Remaining		Intrinsic
	of Shares			Exercise		Contractual		Value(a)
	(exact quantity)			Price		Life (in years)		(in thousands)
Outstanding at March 1, 2025		31,251		$	19.88		9.0		—
Granted		10,809			17.27
Terminated		—			—
Exercised		(2,500	)		17.27
Outstanding at May 31, 2025		39,560		$	19.33		8.3	$	11.7
Exercisable at May 31, 2025		26,222		$	19.05		8.5	$	11.7

9.A ~~Accrued~~summary ~~Expenses~~of the status of the Company’s unvested stock options at May 31, 2025 and the changes during the three months ended May 31, 2025 are presented below:

The following table summarizes the components of accrued expenses as of the dates indicated (in thousands):


		Weighted
		Average
	Number	Grant Date
	of Options	Fair Value
Unvested at March 1, 2025	26,669	2.47
New grants	10,809	2.41
Vested	(24,140)	2.44
Forfeited	—	—
Unvested at May 31, 2025	13,338	2.47

	November 30,		February 29,
	2024		2024
Employee compensation and benefits	$	11,507	$	13,714
Taxes other than income		1,561		1,341
Accrued legal and professional fees		522		510
Accrued utilities		108		108
Accrued acquisition related obligations		—		200
Income taxes payable		654		626
Other accrued expenses		1,226		1,042
	$	15,578	$	17,541

10ENNIS, INC. ~~Credit~~AND ~~Facility~~SUBSIDIARIES

AsNOTES ofTO ~~November~~CONDENSED ~~30,~~CONSOLIDATED ~~2024,~~FINANCIAL ~~the Company had $0.3 million outstanding under a standby letters of credit arrangement secured by a cash collateral bank account.~~STATEMENTS

~~11.~~FOR ~~Shareholders’~~THE ~~Equity~~PERIOD ENDED MAY 31, 2025(unaudited)

~~The~~As ~~Company’s board~~ of ~~directors~~May ~~(the~~31, ~~"Board") has authorized the repurchase of the Company’s outstanding common stock through a stock repurchase program~~2025, ~~which~~there ~~authorized~~was ~~amount is currently up to~~ $~~60.~~0.1 million inof ~~the~~unrecognized ~~aggregate. Under~~compensation ~~the~~cost ~~repurchase~~related ~~program,~~to ~~purchases~~unvested ~~may~~stock beoptions ~~made~~granted ~~from~~under ~~time to time in~~ the ~~open market or through privately negotiated transactions depending on market conditions, share price, trading volume and other factors~~Plan. ~~Such~~The ~~purchases,~~weighted ifaverage ~~any,~~remaining ~~will~~requisite beservice ~~made~~period inof ~~accordance~~the ~~with~~unvested ~~applicable~~stock ~~insider~~options ~~trading~~was ~~and other securities laws and regulations~~0. ~~These~~9 ~~repurchases may be commenced or suspended at any time or from time to time without prior notice~~years.

~~During~~Restricted the nine months ended November 30, 2024, the Company repurchased 40 shares of common stock unrelated to the stock repurchase program at an average price of $22.62. During the nine month period ended November 30, 2024, the Company repurchased 91,883 shares of common stock under the program at an average price of $19.79. The Company did not repurchase, under the program, any shares for the three months ended November 30, 2024 or for the three and nine months ended November 30, 2023. Since the program’s inception in October 2008, there have been 2,334,344 common shares repurchased at an average price of $16.47 per share. As of November 30, 2024, $21.5 million remained available to repurchase shares of the Company’s common stock under the program.Stock

~~During~~The ~~the~~following ~~quarter,~~activity ~~the~~occurred ~~Company~~with ~~returned~~respect ~~$72.3 million~~ to ~~shareholders~~the inCompany’s ~~dividends~~restricted ~~which~~stock ~~included~~awards afor ~~special~~the ~~dividend~~three ofmonths ~~$2.50~~ended ~~per~~May ~~share.~~31, 2025:

12. Stock Based Compensation


				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
Outstanding at March 1, 2025		41,667		$	21.68
Granted		—			—
Terminated		—			—
Vested		(667	)		17.58
Outstanding at May 31, 2025		41,000		$	21.68

~~The~~As Company grants stock options, restricted stock and restricted stock units ("RSUs") to key executives and managerial employees and non-employee directors. Prior to June 30, 2021, the Company had one stock incentive plan, the 2004 Long-Term Incentive Plan of ~~Ennis, Inc., as amended and restated as of~~ May 1831, ~~2008 and was further amended on June 30~~2025, ~~2011 (~~the ~~"Old~~total ~~Plan"). The Old Plan expired June 30, 2021 and all~~ remaining ~~unused~~unrecognized ~~shares~~compensation ~~expired. Subject~~cost related to ~~the~~unvested ~~affirmative~~restricted ~~vote~~stock ofwas ~~the~~approximately ~~shareholders, the Board adopted the 2021 Long-Term Incentive Plan of Ennis, Inc~~$1. ~~(the "New Plan") on April 16, 2021 authorizing~~ 1~~,033,648~~ ~~shares of common stock for awards~~million. ~~The New Plan was approved by the shareholders at the Annual Meeting on July 15, 2021 by a majority vote.~~ The ~~New~~weighted ~~Plan~~average ~~expires~~remaining ~~June~~requisite ~~30,~~service ~~2031~~period ~~and all unissued stock will expire on that date. At November 30, 2024, the Company has 227,940 shares~~ of ~~unissued common stock reserved under~~ the ~~New~~unvested ~~Plan~~restricted ~~for issuance and uses treasury~~ stock toawards ~~satisfy~~was ~~option~~1.5 ~~exercises and restricted stock awards~~years.

~~The~~Restricted ~~Company~~Stock recognizes compensation expense for stock options and restricted stock grants based on the grant date fair value of the award for stock options, restricted stock grants and RSUs on a straight-line basis over the requisite service period. The estimated Units

18During the three months ended May 31, 2025, no performance-based or time-based RSUs were granted under the Plan. The fair value of the time-based RSUs was estimated based on the fair market value of the Company’s stock on the date of grant of $19.43 per unit. The fair value of the performance-based RSUs, using a Monte Carlo valuation model, was $19.97 per unit. The performance measures include a threshold, target and maximum performance level providing the grantees an opportunity to receive more or less shares than targeted depending on actual financial performance of the Company. The award will be based on the Company’s return on equity, EBITDA and adjusted for the Company’s Relative Shareholder Return as measured against a defined peer group. Holders of RSUs receive cash dividends equal to the dividends we declare and pay on our common stock, which are included in dividends paid in the Condensed Consolidated Financial Statements.

~~ENNIS,~~The ~~INC.~~performance-based ~~AND~~RSUs ~~SUBSIDIARIES~~vest on the third anniversary from the date of grant and the time-based RSUs vest ratably over three years from the date of grant.

~~NOTES~~The TOfollowing ~~CONDENSED~~activity ~~CONSOLIDATED~~occurred ~~FINANCIAL~~with ~~STATEMENTS~~respect to the Company’s restricted stock units for the three months ended May 31, 2025:

FOR THE PERIOD ENDED NOVEMBER 30, 2024(unaudited)


	Time-based					Performance-based
				Weighted				Weighted
				Average				Average
	Number of			Grant Date		Number of		Grant Date
	Shares			Fair Value		Shares		Fair Value
Outstanding at March 1, 2025 (1)		101,961		$	19.43		198,827	$	19.97
Granted		—			—		—		—
Change due to performance achievement		—			—		—		—
Terminated		(5,403	)		19.43		—		—
Vested		(28,582	)		19.43		—		—
Outstanding at May 31, 2025		67,976		$	19.43		198,827	$	19.97

(1) The number of shares toof betime-based ~~achieved~~grants ~~for~~may, ~~performance~~upon ~~based~~vesting, ~~RSUs~~convert is50% ~~updated~~into ~~each~~common ~~reporting~~stock ~~period.~~and ~~For~~ the ~~three~~remaining ~~months~~50% ~~ended~~into ~~November~~two ~~30,~~incentive ~~2024~~stock ~~and~~options ~~November~~for ~~30,~~each ~~2023,~~RSU ~~the~~with ~~Company~~an ~~included~~exercise inprice ~~selling,~~equal ~~general~~to ~~and~~the ~~administrative~~closing ~~expenses,~~price ~~compensation~~of ~~expense~~the ~~related~~Company's to stock~~-based~~ ~~compensation~~on ofthat ~~$0.9~~date ~~million~~for ~~and~~employees ~~$0.7~~who ~~million,~~have ~~respectively~~not met their stock ownership requirements. ~~For~~The ~~the~~number ~~nine~~of ~~months~~shares ~~ended~~of ~~November~~performance-based ~~30,~~grants ~~2024~~includes ~~and~~an ~~November~~estimate 3055,037 ~~2023,~~of ~~the~~additional ~~Company~~RSUs ~~included~~at inthe ~~selling,~~maximum ~~general~~achievement ~~and~~level ~~administrative~~of ~~expenses,~~130% ~~compensation~~of ~~expense~~target ~~related~~payout. Actual toshares ~~stock-based~~that ~~compensation~~may ofbe ~~$3.3~~issued ~~million~~can ~~and~~range ~~$2.~~from 0% ~~million,~~to ~~respectively~~130% of target.

~~Stock Options~~18

~~The Company had the following stock option activity for the nine months ended November 30~~ENNIS, ~~2024~~INC. AND SUBSIDIARIES

						Weighted
				Weighted		Average		Aggregate
	Number			Average		Remaining		Intrinsic
	of Shares			Exercise		Contractual		Value(a)
	(exact quantity)			Price		Life (in years)		(in thousands)
Outstanding at March 1, 2024		52,500		$	19.88		10.0		—
Granted		—			—
Terminated		(2,500	)		19.88
Exercised		(8,749	)		19.88
Outstanding at November 30, 2024		41,251		$	19.88		8.4	$	59.8
Exercisable at November 30, 2024		7,915		$	19.88		8.4	$	11.5

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AFOR ~~summary~~THE ofPERIOD ~~the~~ENDED ~~status~~MAY ~~of the Company’s unvested stock options at November 30~~31, ~~2024 and the changes during the nine months ended November 30, 2024 are presented below:~~2025(unaudited)

		Weighted
		Average
	Number	Grant Date
	of Options	Fair Value
Unvested at March 1, 2024	52,500	2.47
New grants	—	—
Vested	(17,497)	2.47
Forfeited	(1,667)	2.47
Unvested at November 30, 2024	33,336	2.47

As of May 31, 2025, the total remaining unrecognized compensation cost of time-based RSUs was approximately $2.3 million over a weighted average remaining requisite service period of 1.9 years. As of May 31, 2025, the total remaining unrecognized compensation of performance-based RSUs was approximately $5.3 million over a weighted average remaining requisite service period of 1.9 years.

~~As of November 30, 2024, there was $0~~13.1 ~~million~~Pension ~~of unrecognized compensation cost related to unvested stock options granted under the~~ Plan~~. The weighted average remaining requisite service period of the unvested stock options was 1.4 years.~~

~~Restricted~~The ~~Stock~~Company and certain subsidiaries have a noncontributory defined benefit retirement plan (the "Pension Plan"), covering approximately 12% of the Company’s aggregate employees. Benefits are based on years of service and the employee’s average compensation for the highest five compensation years preceding retirement or termination.

~~The~~Pension expense is composed of the following ~~activity~~components, ~~occurred~~included ~~with~~in ~~respect~~cost toof ~~the~~goods ~~Company’s~~sold ~~restricted~~and ~~stock~~selling, ~~awards~~general, ~~for~~and administrative expenses in the ~~nine~~Company’s ~~months~~consolidated ~~ended~~statements ~~November~~of ~~30,~~earnings ~~2024~~(in thousands):

					Weighted
		Three months ended
					Average
		May 31,
	Number of				Grant Date
		2025				2024
	Shares				Fair Value
Components of net periodic benefit cost
Outstanding at March 1, 2024		42,131			$	20.11
Service cost		$	151			$	166
Granted		19,880				23.24
Interest cost			650				649
Terminated		—				—
Expected return on plan assets			(710	)			(755	)
Vested		(20,344	)			20.08
Amortization of:
Outstanding at November 30, 2024		41,667			$	21.61
Unrecognized net loss			366				436
Net periodic benefit cost		$	457			$	496

AsThe Company is required to make contributions to the Pension Plan. These contributions are required under the minimum funding requirements of ~~November~~the 30Employee Retirement Income Security Act of 1974 ("ERISA"). The assumptions used to calculate the pension funding deficit are different from the assumptions used to determine the net pension obligation for purposes of our condensed consolidated financial statements. Due to the enactment of the American Rescue Plan ("ARP") Act of 2021, ~~2024~~plan sponsors can calculate the discount rate used to measure the Pension Plan liability using a 25-year average of interest rates plus or minus a corridor. Assuming a stable funding status, the ~~total~~Company ~~remaining~~would ~~unrecognized~~expect ~~compensation~~to ~~cost~~make ~~related~~a cash contribution to ~~unvested~~the ~~restricted~~Pension ~~stock~~Plan ~~was~~of ~~approximately~~between $1.0 million and $3.70 million per year. However, changes in actual investment returns or in discount rates could change this amount significantly. The ~~weighted~~Company ~~average~~is ~~remaining~~not ~~requisite~~required ~~service~~to ~~period~~make ofa contribution to the ~~unvested~~pension ~~restricted~~plan ~~stock~~for ~~awards~~fiscal ~~was~~year 2026. The Company made a $1.92 ~~years~~million contribution to the Pension Plan during the fiscal year 2025. As the Company's Pension Plan assets are invested in marketable securities, fluctuations in market values could potentially impact the Company's funding status, associated liabilities recorded and future required minimum contributions. At May 31, 2025, the Company had an unfunded pension asset recorded on its condensed consolidated balance sheet of approximately $1.4 million.

1914. Earnings Per Share

~~ENNIS~~Basic earnings per share have been computed by dividing net earnings by the weighted average number of common shares outstanding during the applicable period. Diluted earnings per share reflect the potential dilution that could occur if stock options, ~~INC~~performance-based RSUs or other contracts to issue common shares were exercised or converted into common stock. This ~~AND~~is ~~SUBSIDIARIES~~calculated using the treasury stock method.

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~19

~~FOR~~ENNIS, ~~THE~~INC. ~~PERIOD~~AND ~~ENDED NOVEMBER 30, 2024(unaudited)~~SUBSIDIARIES

~~Restricted~~NOTES ~~Stock~~TO ~~Units~~CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~During~~FOR ~~the~~THE ~~nine~~PERIOD ~~months~~ENDED ~~ended~~MAY ~~November 30~~31, 2024, 183,457 performance-based RSUs and 122,303 time-based RSUs were granted under the New Plan. The fair value of the time-based RSUs was estimated based on the fair market value of the Company’s stock on the date of grant of $19.43 per unit. The fair value of the performance-based RSUs, using a Monte Carlo valuation model, was $19.97 per unit. The performance measures include a threshold, target and maximum performance level providing the grantees an opportunity to receive more or less shares than targeted depending on actual financial performance of the Company. The award will be based on the Company’s return on equity, EBITDA and adjusted for the Company’s Relative Shareholder Return as measured against a defined peer group. Holders of RSUs receive cash dividends equal to the dividends we declare and pay on our common stock, which are included in dividends paid in the Condensed Consolidated Financial Statements.2025(unaudited)

The ~~performance-based~~following ~~RSUs~~table ~~vest~~sets onforth the ~~third~~computation ~~anniversary~~for ~~from~~basic ~~the date of grant~~ and ~~the~~diluted ~~time-based~~earnings ~~RSUs~~per ~~vest~~share ~~ratably~~for ~~over three years from~~ the ~~date~~periods ~~of grant.~~indicated:

The following activity occurred with respect to the Company’s restricted stock units for the nine months ended November 30, 2024:


	Three months ended
	May 31,
	2025		2024
Basic weighted average common shares outstanding		25,956,639		26,156,928
Effect of dilutive stock options, restricted stock, time-based RSUs and performance-based RSUs		64,608		122,718
Diluted weighted average common shares outstanding		26,021,247		26,279,646
Earnings per share
Net earnings - basic	$	0.38	$	0.41
Net earnings - diluted	$	0.38	$	0.41
Cash dividends per share	$	0.25	$	0.25

	Time-based					Performance-based
				Weighted					Weighted
				Average					Average
	Number of			Grant Date		Number of			Grant Date
	Shares			Fair Value		Shares			Fair Value
Outstanding at March 1, 2024		16,639		$	20.11		152,572		$	23.17
Granted (1)		122,303			19.43		238,494			19.97
Change due to vested performance achievement		—			—		61,337			—
Terminated		—			—		—			—
Vested		(16,639	)		20.11		(213,909	)		22.72
Outstanding at November 30, 2024		122,303		$	19.43		238,494		$	19.97

The Company treats unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share. The Company's unvested restricted shares participate on an equal basis with common shares; therefore, there is no difference in undistributed earnings allocated to each participating security. Accordingly, the presentation above is prepared on a combined basis. At May 31, 2025, 38,619 shares related to outstanding stock options were not included in the computation of earnings per diluted share as they were considered anti-dilutive.

(1) The number of shares of time-based grants may, upon vesting, convert 50% into common stock and the remaining 50% into two incentive stock options for each RSU with an exercise price equal to the closing price of the Company's stock on that date for employees who have not met their stock ownership requirements15. ~~The~~ ~~number~~Concentrations of shares of performance-based grants includes an estimate 55,037 of additional RSUs at the maximum achievement level of 130% of target payout. Actual shares that may be issued can range from 0% to 130% of target. Risk

AsFinancial ofinstruments ~~November~~that ~~30,~~potentially ~~2024,~~subject the ~~total~~Company ~~remaining~~to ~~unrecognized~~a ~~compensation~~concentration ~~cost~~ of ~~time-based~~credit ~~RSUs~~risk ~~was~~principally ~~approximately~~consist ~~$1.6~~of ~~million~~cash ~~over~~and aaccounts ~~weighted~~receivable. ~~average~~Cash ~~remaining~~is ~~requisite~~placed ~~service~~with ~~period~~high-credit ofquality ~~2.4~~financial ~~years~~institutions. AsFor the purposes of ~~November~~the ~~30,~~condensed ~~2024~~consolidated statements of cash flows, the ~~total~~Company ~~remaining~~considers ~~unrecognized~~cash ~~compensation~~to ofinclude ~~performance-based~~cash ~~RSUs~~on ~~was~~hand ~~approximately~~and in bank accounts. The Federal Deposit Insurance Corporation insures accounts up to $3250,000.2 At May 31, 2025, cash balances included $32.1 million ~~over~~that awas ~~weighted~~not ~~average~~federally ~~remaining~~insured ~~requisite~~because ~~service~~it ~~period~~represented ofamounts 2in individual accounts above the federally insured limit for each such account.4 This ~~years~~at-risk amount is subject to fluctuation on a daily basis. While management does not believe there is significant risk with respect to such deposits, no assurance can be made that the Company will not experience losses on the Company’s deposits.

13The Company believes its credit risk with respect to accounts receivable is limited due to industry and geographic diversification. ~~Pension~~As ~~Plan~~disclosed on the condensed consolidated balance sheets, the Company maintains an allowance for credit losses to cover the Company’s estimate of credit losses associated with accounts receivable.

The Company, for quality and ~~certain~~pricing ~~subsidiaries~~reasons, ~~have~~purchases aits ~~noncontributory~~paper ~~defined~~products ~~benefit~~from ~~retirement~~a ~~plan~~limited ~~(the~~number ~~"Pension~~of ~~Plan"),~~suppliers. While ~~covering~~other ~~approximately~~sources ~~12%~~may ofbe available to the Company’s ~~aggregate~~to ~~employees. Benefits~~purchase ~~are~~these ~~based~~products, onthey ~~years~~may ofnot ~~service~~be ~~and~~available at the ~~employee’s~~cost ~~average~~or ~~compensation~~at ~~for~~ the ~~highest~~quality ~~five~~the ~~compensation~~Company ~~years~~has ~~preceding~~come ~~retirement~~to ~~or termination~~expect.

2016. Related Party Transactions

~~ENNIS~~The Company leases a facility and sells product to an entity controlled by a member of the Board. The total right-of-use asset and related lease liability as of May 31, ~~INC~~2025 was $1.6 ~~AND~~million ~~SUBSIDIARIES~~and $1.6 million, respectively. The total right-of-use asset and related lease liability as of May 31, 2024 was $0.3 million and $0.3 million, respectively. During the three months ended May 31, 2025, total lease payments and sales made to the related party were approximately $0.1 million and $1.1 million, respectively. During the three months ended May 31, 2024, total lease payments and sales made to the related party were approximately $0.1 million and $0.7 million, respectively. The accounts receivable balances as of May 31, 2025 and 2024 were $0.2 and $0.2 million, respectively.

~~NOTES~~17. TOIncome ~~CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~Taxes

~~FOR~~The ~~THE~~Company ~~PERIOD~~is ~~ENDED~~subject ~~NOVEMBER~~to 30U.S. federal income tax as well as income taxes of multiple state jurisdictions. The quarterly income tax provision was computed based on the Company's estimated annualized effective tax rate and the full-year forecasted income or loss plus the tax impact of unusual, ~~2024(unaudited)~~infrequent, or nonrecurring significant items during the period.

Pension expense is composed of the following components included in cost of goods sold and selling, general, and administrative expenses in the Company’s consolidated statements of earnings (in thousands): 20

	Three months ended						Nine months ended
	November 30,						November 30,
	2024			2023			2024			2023
Components of net periodic benefit cost
Service cost	$	166		$	168		$	498		$	504
Interest cost		649			614			1,947			1,841
Expected return on plan assets		(755	)		(776	)		(2,265	)		(2,328	)
Amortization of:
Unrecognized net loss		436			474			1,308			1,422
Net periodic benefit cost	$	496		$	480		$	1,488		$	1,439

ENNIS, INC. AND SUBSIDIARIES

~~The~~NOTES ~~Company~~TO isCONDENSED ~~required~~CONSOLIDATED toFINANCIAL make contributions to the Pension Plan. These contributions are required under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 ("ERISA"). The assumptions used to calculate the pension funding deficit are different from the assumptions used to determine the net pension obligation for purposes of our condensed consolidated financial statements. Due to the enactment of the American Rescue Plan ("ARP") Act of 2021, plan sponsors can calculate the discount rate used to measure the Pension Plan liability using a 25-year average of interest rates plus or minus a corridor. Assuming a stable funding status, the Company would expect to make a cash contribution to the Pension Plan of between $1.0 million and $3.0 million per year. However, changes in actual investment returns or in discount rates could change this amount significantly. The Company made a $1.2 million contribution during the nine months ended November 30, 2024 and a $1.2 million contribution to the Pension Plan during the fiscal year 2024. As our Pension Plan assets are invested in marketable securities, fluctuations in market values could potentially impact our funding status, associated liabilities recorded and future required minimum contributions. At November 30, 2024, we had an unfunded pension asset recorded on our condensed consolidated balance sheet of approximately $0.1 million. STATEMENTS

~~14.~~FOR ~~Earnings~~THE ~~Per~~PERIOD ~~Share~~ENDED MAY 31, 2025(unaudited)

~~Basic~~The ~~earnings~~Company's ~~per~~effective ~~share~~tax ~~have~~rate ~~been~~for ~~computed by dividing net earnings by~~ the ~~weighted~~three ~~average~~months ~~number~~ended ofMay ~~common~~31, ~~shares~~2025 ~~outstanding~~and ~~during~~2024 ~~the~~was ~~applicable period~~27.5%. ~~Diluted~~The ~~earnings~~Company ~~per~~made ~~share~~cash ~~reflect~~payments ~~the~~for ~~potential~~income ~~dilution~~taxes, ~~that~~net ~~could~~of ~~occur~~income iftax ~~stock options~~refunds, ~~performance-based~~of ~~RSUs~~$0.2 ormillion ~~other~~and ~~contracts~~$0.3 tomillion ~~issue~~for ~~common~~the ~~shares~~three ~~were~~months ~~exercised~~ended orMay ~~converted~~31, ~~into~~2025 ~~common~~and ~~stock. This~~2024, ~~is calculated using the treasury stock method~~respectively.

~~The~~18. ~~following~~Other ~~table sets forth the computation for basic and diluted earnings per share for the periods indicated:~~Contingencies

	Three months ended				Nine months ended
	November 30,				November 30,
	2024		2023		2024		2023
Basic weighted average common shares outstanding		26,013,892		25,894,578		26,028,596		25,826,691
Effect of dilutive stock options, restricted stock, time-based RSUs and performance-based RSUs		75,065		188,723		163,412		164,876
Diluted weighted average common shares outstanding		26,088,957		26,083,301		26,192,008		25,991,567
Earnings per share
Net earnings - basic	$	0.39	$	0.38	$	1.20	$	1.26
Net earnings - diluted	$	0.39	$	0.38	$	1.19	$	1.25
Cash dividends per share	$	2.75	$	0.25	$	3.25	$	0.75

In the ordinary course of business, the Company also enters into real property leases, which require the Company as lessee to indemnify the lessor from liabilities arising out of the Company’s occupancy of the properties. The Company’s indemnification obligations are generally covered under the Company’s general insurance policies.

~~The~~From ~~Company~~time ~~treats unvested share-based payment awards that contain non-forfeitable rights~~ to ~~dividends or dividend equivalents (whether paid or unpaid) as participating securities~~time, ~~which are included in~~ the ~~computation~~Company ~~of earnings per share. Our unvested restricted shares participate on an equal basis with common shares; therefore, there~~ is noinvolved ~~difference~~ in ~~undistributed~~various ~~earnings~~litigation ~~allocated~~matters toarising ~~each~~in ~~participating security. Accordingly,~~ the ~~presentation~~ordinary ~~above~~course isof ~~prepared on a combined basis~~business. ~~For~~The ~~the~~Company ~~three~~does ~~and nine months ended November 30, 2024, 49,787 and 41,251 shares related to stock options were~~ not ~~included~~believe in the ~~computation~~disposition of ~~earnings~~any ~~per~~current ~~diluted~~matter ~~share~~will ashave ~~they~~a ~~were~~material ~~considered~~adverse ~~anti-dilutive. For~~effect ~~the~~on ~~three~~its ~~and~~consolidated ~~nine~~financial ~~months~~position ~~ended~~or ~~November~~results ~~30, 2023, 52,500 shares related to outstanding stock options were not included in the computation~~ of ~~earnings per diluted share as they were considered anti-dilutive~~operations.

21In October 2023, Crabar/GBF, Inc., a subsidiary of Ennis, was awarded $5.8 million in actual damages, exemplary damages and attorney’s fees in a case against Wright Printing Company, its owner Mark Wright, and CEO Mardra Sikora. Given the defendants’ pending appeal, we have not yet recognized a contingent gain from the October 2023 judgment. Nevertheless, the defendants have posted cash bonds that total approximately $5.1 million, which should be recoverable by the Company if defendants’ appeal is unsuccessful.

~~ENNIS~~Ennis and one of its subsidiaries are defendants in a lawsuit in Arizona concerning the lease of the former B&D Litho facility that was closed in 2019. The Company has denied the landlord’s allegations and is vigorously contesting the landlord’s unreasonable claim. The Court has made a preliminary ruling that defendants failed to maintain the facility’s air conditioning equipment, ~~INC~~paved surfaces and roof in good condition even though the landlord had assumed responsibility for some of those maintenance obligations. ~~AND~~The ~~SUBSIDIARIES~~Company has accrued a liability reserve of approximately $0.4 million related to this claim. The case will be tried during either the fourth calendar quarter of 2025 or the first calendar quarter of 2026.

~~NOTES~~19. TOSegment ~~CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~Reporting

~~FOR~~The ~~THE~~Company’s ~~PERIOD~~Chief ~~ENDED~~Operating ~~NOVEMBER~~Decision ~~30,~~Maker ~~2024~~(~~unaudited~~"CODM") is its Chairman, President, and Chief Executive Office. The CODM evaluates performance and allocates resources on a consolidated basis using consolidated net income, earnings releases, investor presentations, and the Company’s SEC filings, as well as through the approval of the Company’s annual budget and forecast.

~~15.~~The ~~Concentrations~~single operating segment is also the Company's single reportable segment called “Print” and derives its operating revenues from the manufacturing of ~~Risk~~mostly custom or semi-custom printed products sold mostly to independent distributors in the United States. Independent distributors are responsible for selling the printed product to the end consumer. The single reportable segment derives its revenues by manufacturing print products at the Company's printing plants dispersed throughout the United States.

~~Financial~~The ~~instruments~~accounting ~~that~~policies ~~potentially subject the Company to a concentration~~ of ~~credit~~this ~~risk~~single ~~principally~~reportable ~~consist~~segment ofare ~~cash and trade receivables. Cash is placed with high-credit quality financial institutions. For~~ the ~~purposes~~same ofas ~~the~~those ~~condensed~~described ~~consolidated statements of cash flows, the Company considers cash to include cash on hand and~~ in bank accounts. The Federal Deposit Insurance Corporation insures accounts up to $250,000. At November 30, 2024, cash balances included $55.2 million that was not federally insured because it represented amounts in individual accounts above the ~~federally~~summary ~~insured~~of ~~limit for each such account. This at-risk amount is subject to fluctuation on a daily basis. While management does not believe there is~~ significant ~~risk~~accounting ~~with~~policies ~~respect~~ to ~~such deposits, no assurance can be made that~~ the ~~Company~~condensed ~~will~~consolidated ~~not~~financial ~~experience losses on the Company’s deposits~~statements.

The ~~Company~~CODM ~~believes~~assesses ~~its~~the ~~credit~~performance ~~risk~~of ~~with~~this ~~respect~~reportable tosegment ~~trade~~using ~~receivables~~the isentity-wide ~~limited~~revenue ~~due~~and toexpense ~~industry~~information reported on the Statement of Operations and ~~geographic~~the ~~diversification.~~more Asdetailed expense categories disclosed onin the ~~condensed~~table below. The primary measure of segment profit (loss) is consolidated ~~balance~~net ~~sheets,~~income (loss) as reported on the ~~Company~~Condensed ~~maintains~~Consolidated anStatement ~~allowance~~of ~~for~~Operations. In ~~credit~~addition, ~~losses~~segment toassets ~~cover~~reviewed by the CODM are reported on the Company’s ~~estimate~~Condensed ofConsolidated ~~credit~~Balance ~~losses~~Sheets ~~associated~~as ~~with~~total ~~accounts receivable~~assets.

The Company, for quality and pricing reasons, purchases its paper products from a limited number of suppliers. While other sources may be available to the Company to purchase these products, they may not be available at the cost or at the quality the Company has come to expect.21

16ENNIS, INC. ~~Related~~AND ~~Party Transactions~~SUBSIDIARIES

~~The~~NOTES ~~Company~~TO ~~leases~~CONDENSED aCONSOLIDATED ~~facility~~FINANCIAL and sells product to an entity controlled by a member of the Board. The total right-of-use asset and related lease liability as of November 30, 2024 was $0.1 million and $0.1 million, respectively. The total right-of-use asset and related lease liability as of November 30, 2023 was $0.5 million and $0.5 million, respectively. During the three months ended November 30, 2024, total lease payments and sales made to the related party were approximately $0.1 million and $0.8 million, respectively. During the nine months ended November 30, 2024, total lease payments and sales made to the related party were approximately $0.4 million and $2.2 million, respectively. During the three months ended November 30, 2023, total lease payments and sales made to the related party were approximately $0.1 million and $0.8 million, respectively. During the nine months ended November 30, 2023, total lease payments and sales made to the related party were approximately $0.3 million and $2.4 million, respectively.STATEMENTS

~~17.~~FOR ~~Income~~THE ~~Taxes~~PERIOD ENDED MAY 31, 2025(unaudited)

The Company is subject to U.S. federal income tax as well as income taxes of multiple state jurisdictions. The quarterly income tax provision was computed based on our estimated annualized effective tax rate and the full-year forecasted income or loss plus the tax impact of unusual, infrequent, or nonrecurring significant items during the period.


	Three months ended May 31,
(Dollars in thousands)	2025			2024
Segment operating net sales	$	97,197		$	103,108

Segment operating expenses
Product purchases		30,218			32,426
Compensation expense		21,603			21,737
Product supplies		6,106			6,529
Manufacturing depreciation		2,110			2,157
Other product cost (1)		6,930			9,355
Segment cost of goods sold		66,967			72,204

Segment SG&A expenses
Compensation expense		11,585			11,369
Depreciation expense		130			157
Amortization expense		1,944			1,930
Other expense (2)		3,288			3,714
Segment SG&A expenses		16,947			17,170

Other segment items
(Gain) loss sale of asset		-			4
Interest (income) expense		(550	)		(1,359	)
Other expense		318			348
Provision for income tax		3,716			4,054

Consolidated net earnings	$	9,799		$	10,687

~~Our~~(1) ~~effective~~Other ~~tax~~product ~~rate~~cost ~~for~~includes ~~the~~manufacturing ~~nine~~overhead ~~months ended November 30, 2024~~ and ~~2023~~freight ~~was 27~~expenses.5% and 28.3%, respectively. The decrease in our overall tax rate this period as compared to the same period last year is due to a decrease in our overall expected state tax rate due to changes in state apportionment. The Company made cash payments for income taxes, net of income tax refunds, of $12.2 million and $16.2 million for the nine months ended November 30, 2024 and 2023, respectively.

~~18.~~(2) ~~Other~~SG&A, ~~Contingencies~~other expense includes professional services and utility services not included in the manufacturing process.

~~We are subject to a variety of claims and suits that arise from time to time in the ordinary course of our business~~20. ~~Although~~ ~~management~~Subsequent currently believes that resolving claims against us, individually or in the aggregate, will not have a material adverse impact in our consolidated financial statements, these matters are subject to inherent uncertainties and management's view of these matters may change in the future. Events

19On June 20, 2025, the Board declared a quarterly cash dividend on the Company's common stock of $0.25 ~~Subsequent~~per ~~Event~~share. The dividend is payable on August 11, 2025 to shareholders of record as of July 11, 2025. The expected payout for this dividend is approximately $6.5 million.

On December 19, 2024, the Board declared a quarterly cash dividend on the Company's common stock of 25.0 cents per share. The dividend is payable on February 6, 2025 to shareholders of record as of January 9, 2025. The expected payout for this dividend is approximately $6.5 million. 22

22ENNIS, INC. AND SUBSIDIARIES

~~ENNIS,~~FORM ~~INC. AND SUBSIDIARIES~~10-Q

~~FORM~~FOR ~~10-Q~~THE PERIOD ENDED MAY 31, 2025

~~FOR~~Item ~~THE~~2. ~~PERIOD~~MANAGEMENT’S ~~ENDED~~DISCUSSION ~~NOVEMBER~~AND ~~30,~~ANALYSIS ~~2024~~OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

~~Item~~Cautionary 2.Statement ~~MANAGEMENT’S~~Regarding ~~DISCUSSION~~Forward-Looking ~~AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~Statements

~~Cautionary~~The ~~Statement~~following ~~Regarding~~“Management’s ~~Forward~~Discussion and Analysis of Financial Condition and Results of Operations” should be read together with the unaudited consolidated financial statements and related notes of Ennis, Inc. (collectively with its subsidiaries, the “Company,” “Registrant,” “Ennis,” or “we,” “us,” or “our”), included in Part 1, Item 1 of this report, and with the audited consolidated financial statements and the related notes of the Company included in our Annual Report on Form 10-~~Looking~~K ~~Statements~~for the fiscal year ended February 28, 2025.

~~The~~All ~~following~~of the statements in this report, other than historical facts, are forward-looking statements, including, without limitation, the statements made in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” As ~~should~~a begeneral ~~read~~matter, ~~together~~forward-looking ~~with~~statements ~~the~~are ~~unaudited~~those ~~consolidated~~focused ~~financial~~upon ~~statements~~anticipated events or trends, expectations, and ~~related~~beliefs ~~notes~~relating ofto ~~Ennis,~~matters ~~Inc.~~that ~~(collectively~~are ~~with~~not ~~its~~historical ~~subsidiaries,~~in ~~the~~nature. The words “~~Company~~could,” “~~Registrant~~should,” “~~Ennis~~feel,” or“anticipate,” “weaim,” “uspreliminary,” or“expect,” “~~our~~believe,”) “estimate,” ~~included~~“intend,” in“intent,” ~~Part~~“plan,” 1“will,” ~~Item~~“foresee,” 1“project,” ~~of this report~~“forecast,” ~~and~~or ~~with~~ the ~~audited~~negative ~~consolidated~~thereof ~~financial~~or ~~statements~~variations thereon, and ~~the~~similar ~~related~~expressions ~~notes~~identify ~~of the Company included in our Annual Report on Form 10~~forward-Klooking ~~for the fiscal year ended February 29, 2024~~statements.

~~All~~The ofPrivate ~~the~~Securities ~~statements~~Litigation inReform ~~this~~Act ~~report,~~of ~~other~~1995 ~~than~~provides ~~historical~~a ~~facts,~~“safe ~~are~~harbor” for these forward-looking statements,. In ~~including,~~order ~~without~~to ~~limitation,~~comply with the ~~statements~~terms ~~made~~of inthe ~~this~~safe ~~“Management’s~~harbor, ~~Discussion~~the ~~and~~Company ~~Analysis~~notes ofthat ~~Financial~~forward-looking ~~Condition~~statements ~~and~~are ~~Results~~subject ofto ~~Operations.” As~~known aand ~~general~~unknown ~~matter~~risks, ~~forward-looking~~uncertainties ~~statements~~and ~~are~~other ~~those~~factors ~~focused~~relating ~~upon~~to ~~anticipated~~its ~~events~~operations orand ~~trends,~~business ~~expectations~~environment, ~~and~~all ~~beliefs~~of ~~relating~~which are difficult to ~~matters~~predict ~~that~~and ~~are~~many ~~not~~of ~~historical~~which inare ~~nature. The~~beyond ~~words~~the ~~“could,”~~control ~~“should,”~~of ~~“feel,”~~the ~~“anticipate,”~~Company. These ~~“aim,”~~known ~~“preliminary,”~~and ~~“expect,”~~unknown ~~“believe~~risks,” ~~“estimate,”~~uncertainties ~~“intend,”~~and ~~“intent,”~~other ~~“plan,”~~factors ~~“will,”~~could ~~“foresee,”~~cause ~~“project,”~~actual ~~“forecast,”~~results orto ~~the~~differ ~~negative~~materially ~~thereof~~from orthose ~~variations~~matters ~~thereon~~expressed in, ~~and~~anticipated ~~similar~~by ~~expressions~~or ~~identify~~implied by such forward-looking statements.

~~The~~These ~~Private~~statements ~~Securities~~reflect ~~Litigation~~the ~~Reform~~current ~~Act~~views ofand ~~1995~~assumptions ~~provides~~of amanagement ~~“safe~~with ~~harbor”~~respect ~~for~~to ~~these~~future ~~forward-looking statements~~events. InThe ~~order~~Company todoes ~~comply~~not ~~with~~undertake, ~~the~~and ~~terms~~hereby ~~of the safe harbor~~disclaims, ~~the~~any ~~Company~~duty ~~notes~~to ~~that~~update these forward-looking statements, ~~are~~even ~~subject~~though toits ~~known~~situation and ~~unknown~~circumstances ~~risks,~~may ~~uncertainties~~change ~~and~~in ~~other~~the ~~factors~~future. Readers ~~relating~~are tocautioned ~~its~~not ~~operations~~to ~~and~~place ~~business~~undue ~~environment,~~reliance ~~all~~on offorward-looking statements, which ~~are~~speak ~~difficult~~only toas ~~predict and many~~ of ~~which are beyond~~ the ~~control~~date of ~~the~~this ~~Company~~report. ~~These~~The ~~known~~inclusion ~~and~~of ~~unknown~~any ~~risks,~~statement ~~uncertainties~~in ~~and~~this ~~other~~report ~~factors~~does ~~could~~not ~~cause~~constitute ~~actual~~an ~~results~~admission toby ~~differ~~the ~~materially~~Company ~~from~~or ~~those~~any ~~matters~~other ~~expressed~~person ~~in,~~that ~~anticipated~~the byevents or ~~implied~~circumstances bydescribed in such ~~forward-looking~~statement ~~statements~~are material.

~~These~~We ~~statements~~believe ~~reflect~~these ~~the~~forward-looking ~~current~~statements ~~views~~are ~~and~~based ~~assumptions~~upon ofreasonable ~~management~~assumptions. All ~~with~~such ~~respect~~statements toinvolve ~~future~~risks ~~events. The~~and ~~Company~~uncertainties, ~~does~~and ~~not~~as ~~undertake~~a result, ~~and~~actual ~~hereby~~results ~~disclaims~~could differ materially from those projected, ~~any~~anticipated ~~duty~~or toimplied ~~update~~by these statements. Such forward-looking statements involve known and unknown risks, ~~even~~including ~~though~~but ~~its~~not ~~situation~~limited ~~and~~to: general ~~circumstances~~economic, ~~may~~business ~~change~~and inlabor conditions and the ~~future~~potential adverse effects of potential recessionary concerns, inflationary issues, U.S. import tariffs and supply chain disruptions and the potential ~~Readers~~impact ~~are~~on ~~cautioned~~our ~~not~~operations; our ability to ~~place~~implement ~~undue~~our ~~reliance~~strategic initiatives and control our operational costs; dependence on ~~forward-looking~~a ~~statements,~~limited ~~which~~number ~~speak~~of ~~only~~key assuppliers; our ability to recover the rising cost of raw materials and other costs (including energy, freight, labor and benefit costs) in markets that are highly price competitive and volatile; uninsured losses, including those from natural disasters, catastrophes, pandemics, theft, sabotage; the ~~date~~impact of ~~this~~future ~~report~~pandemics on the U.S. and local economies, our business operations, our workforce, our supply chain and our customer base; our ability to timely or adequately respond to technological changes in the industry; cybersecurity risks, ~~The~~the ~~inclusion~~impact of ~~any~~the ~~statement~~internet and other electronic media on the demand for forms and printed materials; the impact of foreign competition, tariffs, trade regulations and import restrictions; customer credit risk; competitors’ pricing strategies; a decline in ~~this~~business ~~report~~volume ~~does~~and ~~not~~profitability ~~constitute~~could result in an ~~admission~~impairment byin ~~the~~our ~~Company~~reported goodwill negatively impacting our operational results; our ability to retain key management personnel; our ability to identify, manage or ~~any~~integrate ~~other~~acquisitions.; ~~person~~In ~~that~~addition to the ~~events~~factors orindicated ~~circumstances~~above, you should carefully consider the risks described in ~~such~~and ~~statement~~incorporated ~~are~~by ~~material~~reference herein and in the risk factors in our Annual Report on Form 10-K for the fiscal year ended February 28, 2025 before making an investment in our common stock.

We believe these forward-looking statements are based upon reasonable assumptions. All such statements involve risks and uncertainties, and as a result, actual results could differ materially from those projected, anticipated or implied by these statements. Such forward-looking statements involve known and unknown risks, including but not limited to: general economic, business and labor conditions and the potential adverse effects of potential recessionary concerns, inflationary issues and supply chain disruptions and the potential impact on our operations; our ability to implement our strategic initiatives and control our operational costs; dependence on a limited number of key suppliers; our ability to recover the rising cost of raw materials and other costs (including energy, freight, labor and benefit costs) in markets that are highly price competitive and volatile; uninsured losses, including those from natural disasters, catastrophes, pandemics, theft, sabotage; the impact of future pandemics on the U.S. and local economies, our business operations, our workforce, our supply chain and our customer base; our ability to timely or adequately respond to technological changes in the industry; cybersecurity risks, the impact of the internet and other electronic media on the demand for forms and printed materials; the impact of foreign competition, tariffs, trade regulations and import restrictions; customer credit risk; competitors’ pricing strategies; a decline in business volume and profitability could result in an impairment in our reported goodwill negatively impacting our operational results; our ability to retain key management personnel; our ability to identify, manage or integrate acquisitions.; In addition to the factors indicated above, you should carefully consider the risks described in and incorporated by reference herein and in the risk factors in our Annual Report on Form 10-K for the fiscal year ended February 29, 2024 before making an investment in our common stock.Overview

~~Overview~~Ennis, Inc. (formerly Ennis Business Forms, Inc.) (collectively with its subsidiaries, “the “Company,” “Registrant,” Ennis,” or “we,” “us,” or “our”) was organized under the laws of Texas in 1909. We print and manufacture a broad line of business forms and other business products. We distribute business products and forms throughout the United States primarily through independent distributors. This distributor channel encompasses independent print distributors, commercial printers, direct mail, fulfillment companies, payroll and accounts payable software companies, and advertising agencies, among others. We also sell products to many of our competitors to satisfy their customers’ needs.

Ennis, Inc. (formerly Ennis Business Forms, Inc.) (collectively with its subsidiaries, “the “Company,” “Registrant,” Ennis,” or “we,” “us,” or “our”) was organized under the laws of Texas in 1909. We and our subsidiaries print and manufacture a broad line of business forms and other business products. We distribute business products and forms throughout the United States primarily through independent distributors. This distributor channel encompasses independent print distributors, commercial printers, direct mail, fulfillment companies, payroll and accounts payable software companies, and advertising agencies, among others. We also sell products to many of our competitors to satisfy their customers’ needs.23

~~Business~~ENNIS, ~~Overview~~INC. AND SUBSIDIARIES

~~Our~~FORM ~~management believes we are the largest provider of business forms, pressure~~10-~~seal forms, labels, tags, envelopes, and presentation folders to independent distributors in the United States.~~Q

23FOR THE PERIOD ENDED MAY 31, 2025

~~ENNIS,~~Business ~~INC. AND SUBSIDIARIES~~Overview

~~FORM~~Our 10management believes we are the largest provider of business forms, pressure-Qseal forms, labels, tags, envelopes, and presentation folders to independent distributors in the United States.

~~FOR~~We ~~THE~~are ~~PERIOD~~in ~~ENDED~~the ~~NOVEMBER~~business 30of manufacturing, ~~2024~~designing, and selling business forms and other printed business products primarily to distributors located in the United States. As of May 31, 2025, we operate 57 manufacturing plants throughout the United States in 20 strategically located states as one reportable segment: printing services. Approximately 96% of the business products we manufacture are custom and semi-custom products, constructed in a wide variety of sizes, colors, number of parts, and quantities on an individual job basis, depending upon the customers’ specifications.

WeThe ~~are~~products inwe ~~the~~sell ~~business~~include ofsnap ~~manufacturing~~sets, ~~designing~~continuous forms, ~~and~~laser ~~selling~~cut ~~business~~sheets, ~~forms~~tags, ~~and~~labels, ~~other~~envelopes, ~~printed~~integrated ~~business~~ products, ~~primarily~~jumbo torolls ~~distributors~~and ~~located~~pressure sensitive products in short, medium and long runs under the ~~United~~following ~~States.~~labels: AsEnnis®, ofRoyal ~~November~~Business 30Forms®, ~~2024~~Block Graphics®, weColorWorx®, ~~operate~~Enfusion®, 57Uncompromised ~~manufacturing~~Check ~~plants~~Solutions®, ~~throughout~~VersaSeal®, Ad ConceptsSM, FormSource LimitedSM, Star Award Ribbon Company®, Witt Printing®, Genforms®, PrintGraphics®, Calibrated Forms®, PrintXcel®, Printegra®, Forms ManufacturersSM, Mutual Graphics®, TRI-C Business FormsSM, Major Business SystemsSM, Independent PrintingSM, Hayes Graphics®, Wright Business GraphicsSM, Wright 360SM, Integrated Print & GraphicsSM, the ~~United~~Flesh ~~States~~CompanySM, inAmeriPrintSM; 20StylecraftSM, ~~strategically~~UMC ~~located~~PrintSM; ~~states~~Eagle asGraphicsSM, ~~one~~Diamond ~~reportable~~GraphicsSM ~~segment~~and Printing TechnologiesSM. ~~Approximately~~ ~~94%~~We also sell the Adams McClure® brand (which provides Point of Purchase advertising); the ~~business~~Admore®, ~~products~~Folder weExpress®, ~~manufacture~~and ~~are~~Independent Folders® brands (which provide presentation folders and document folders); Ennis Tag & LabelSM (which provides custom printed, high performance labels and ~~semi~~custom and stock tags); Allen-Bailey Tag & LabelSM, Atlas Tag & Label®, Kay Toledo Tag®, and Special Service Partners® (SSP) (which provides custom and stock tags and labels); Trade Envelopes®, Block Graphics®, Wisco®, Northeastern Envelope CompanySM, Envelope SuperstoreSM and National Imprint Corporation® (which provide custom and imprinted envelopes); Northstar® and General Financial Supply® (which provide financial and security documents); InfosealSM and PrintXcel® (which provide custom and stock pressure seal documents). School Photo Marketing and National School Forms are a one-stop shop for over 1,400 school portrait photographers and professional photo labs nationwide, providing them with a complete array of products and services that reach over 15 million families and 30,000 ~~constructed~~schools, primarily in athe ~~wide~~K-8 ~~variety~~market. We sell predominantly through independent distributors, as well as to many of ~~sizes~~our competitors. Northstar Computer Forms, ~~colors~~Inc., ~~number~~one of ~~parts~~our wholly-owned subsidiaries, ~~and~~also ~~quantities~~sells ondirect anto ~~individual~~a ~~job~~small ~~basis~~number of customers, ~~depending~~generally ~~upon~~large banking organizations (where a distributor is not acceptable or available to the end-user). Adams McClure, LP, a wholly-owned subsidiary, also sells direct to a small number of customers’, ~~specifications~~where sales are generally through advertising agencies.

The ~~products~~printing weindustry ~~sell~~generally ~~include~~sells ~~snap~~its ~~sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated~~ products, ~~jumbo~~either ~~rolls~~predominantly ~~and~~to ~~pressure~~end ~~sensitive products in short~~users, ~~medium~~a ~~and~~market ~~long~~dominated ~~runs~~by ~~under~~a ~~the~~few ~~following~~large ~~labels: Ennis®~~manufacturers, ~~Royal~~such ~~Business~~as ~~Forms®,~~R.R. ~~Block~~Donnelley ~~Graphics®,~~and ~~360º~~Taylor ~~Custom LabelsSM~~Corporation, ~~ColorWorx®~~or, ~~Enfusion®,~~like ~~Uncompromised~~the ~~Check Solutions®, VersaSeal®, Ad ConceptsSM, FormSource LimitedSM, Star Award Ribbon~~ Company®, ~~Witt~~through ~~Printing®,~~a ~~B&D~~variety ~~Litho®,~~of ~~Genforms®,~~independent ~~PrintGraphics®,~~distributors ~~Calibrated~~and ~~Forms®,~~distributor ~~PrintXcel®,~~groups. ~~Printegra®,~~While ~~Forms~~it ~~ManufacturersSM,~~is ~~Mutual~~not ~~Graphics®~~possible, ~~TRI-C~~because ~~Business~~of ~~FormsSM,~~the ~~Major~~lack ~~Business~~of ~~SystemsSM,~~adequate ~~Independent~~public ~~PrintingSM,~~statistical ~~Hoosier Data Forms®~~information, ~~Hayes~~to ~~Graphics®,~~determine ~~Wright~~the ~~Business~~Company’s ~~GraphicsSM,~~share ~~Wright~~of ~~360SM, Integrated Print & GraphicsSM,~~ the ~~Flesh~~total ~~CompanySM,~~business ~~Impressions~~products ~~DirectSM~~market, ~~AmeriPrintSM;~~management ~~StylecraftSM,~~believes ~~UMC~~the ~~PrintSM;~~Company ~~Eagle~~is ~~GraphicsSM, Diamond GraphicsSM, Printing TechnologiesSM, Paper SolutionsSM and Partek SolutionsSM We also sell~~ the ~~Adams~~largest ~~McClure®~~producer ~~brand (which provides Point~~ of ~~Purchase~~business ~~advertising); the Admore®~~forms, ~~Folder~~pressure-seal ~~Express®~~forms, ~~and Independent Folders® brands (which provide presentation folders and document folders); Ennis Tag & LabelSM (which provides custom printed, high performance~~ labels ~~and custom and stock tags); Allen-Bailey Tag & LabelSM~~, ~~Atlas Tag & Label®, Kay Toledo Tag®, and Special Service Partners® (SSP) (which provides custom and stock~~ tags ~~and labels); Trade Envelopes®~~, ~~Block Graphics®, Wisco®, and National Imprint Corporation® (which provide custom and imprinted~~ envelopes) and Northstar® and General Financial Supply® (which provide financial and security documents); InfosealSM and PrintXcel® (which provide custom and stock pressure seal documents). School Photo Marketing is a one-stop shop for over 1,~~400~~ ~~school portrait photographers~~ and ~~professional~~presentation ~~photo~~folders ~~labs nationwide, providing them with a complete array of products and services that reach over 15 million families and 30,000 schools, primarily~~ in the ~~K-8~~United ~~market. We~~States ~~sell~~distributing ~~predominantly~~primarily through independent distributors~~, as well as to many of our competitors~~. Northstar Computer Forms, Inc., one of our wholly-owned subsidiaries, also sells direct to a small number of customers, generally large banking organizations (where a distributor is not acceptable or available to the end-user). Adams McClure, LP, a wholly-owned subsidiary, also sells direct to a small number of customers, where sales are generally through advertising agencies.

~~The~~There ~~printing~~are ~~industry generally sells its products either predominantly to end users,~~ a ~~market~~number ~~dominated~~of bycompetitors athat ~~few~~operate ~~large~~in ~~manufacturers,~~this ~~such as R~~segment.R. ~~Donnelley~~We ~~and~~believe ~~Taylor~~our ~~Corporation,~~strategic ~~or,~~locations ~~like the Company, through a variety of independent distributors~~ and ~~distributor~~buying ~~groups.~~power ~~While~~permit itus isto ~~not~~compete ~~possible,~~on ~~because~~a offavorable ~~the~~basis ~~lack~~within ~~of adequate public statistical information, to determine~~ the ~~Company’s~~distributor ~~share of the total business products~~ market, ~~management~~on ~~believes~~factors ~~the~~such ~~Company~~as ~~is the largest producer of business forms~~service, ~~pressure-seal~~quality ~~forms, labels, tags, envelopes,~~ and ~~presentation folders in the United States distributing primarily through independent distributors~~price.

~~There~~Our products are asold ~~number~~throughout ofthe ~~competitors~~United ~~that~~States ~~operate~~primarily inby ~~this~~independent ~~segment.~~distributors, Weincluding ~~believe~~business ~~our~~forms ~~strategic~~distributors, ~~locations~~resellers, ~~and~~direct ~~buying~~mail, ~~power~~commercial ~~permit~~printers, ussoftware ~~to compete on a favorable basis within the distributor market on factors such as service~~companies, ~~quality~~ and ~~price~~advertising agencies.

~~Our~~Raw ~~products~~materials ~~are~~principally ~~sold~~consist ~~throughout~~of ~~the~~a ~~United~~wide ~~States~~variety ~~primarily~~of byweights, ~~independent~~widths, ~~distributors~~colors, ~~including~~sizes, and qualities of paper for business ~~forms~~products ~~distributors,~~purchased ~~resellers,~~primarily ~~direct~~from ~~mail,~~one ~~commercial~~major ~~printers,~~supplier ~~software~~at ~~companies,~~favorable ~~and~~prices ~~advertising~~based ~~agencies~~on our high volume of business with that supplier relative to our competitors.

~~Raw~~Business ~~materials~~products ~~principally~~usage ~~consist~~in ofthe aprinting ~~wide~~industry ~~variety~~is generally not seasonal. Acquisitions of ~~weights,~~new ~~widths~~business, ~~colors,~~general ~~sizes,~~economic conditions and ~~qualities~~contraction of ~~paper~~the ~~for~~traditional business ~~products~~forms ~~purchased~~industry ~~primarily~~are ~~from~~the ~~one~~predominant ~~major~~factors ~~supplier~~in atquarterly ~~favorable prices based on the~~ volume ~~of business~~fluctuations.

~~Business~~Recent products usage in the printing industry is generally not seasonal. General economic conditions and contraction of the traditional business forms industry are the predominant factors in quarterly volume fluctuations.Acquisitions

~~Our~~On ~~Business~~April ~~Challenges~~11, 2025, the Company acquired the net assets and business of NEC, which is based in Old Forge, Pennsylvania and ESS, which is based in Hiram, Georgia. The acquisition of NEC and ESS, which prior to the acquisition generated approximately $26.0 million in sales for its fiscal year ended December 31, 2024, strengthens our production capabilities to serve our customers in the Northeast United States

Our industry is currently experiencing consolidation of traditional supply channels, product obsolescence, paper supplier capacity adjustments, and increased pricing and potential supply allocations due to demand/supply curve imbalance. Technology advances have made electronic distribution of documents, internet hosting, digital printing and print-on-demand valid, cost-effective alternatives to traditional custom-printed documents and customer communications. Improved equipment has become more accessible to our competitors. We face highly competitive conditions throughout our supply chain in an already over-supplied, price-competitive print industry. The challenges of our business include the following:24

24ENNIS, INC. AND SUBSIDIARIES

~~ENNIS,~~FORM ~~INC. AND SUBSIDIARIES~~10-Q

~~FORM~~FOR ~~10-Q~~THE PERIOD ENDED MAY 31, 2025

~~FOR~~Our ~~THE~~Business ~~PERIOD ENDED NOVEMBER 30, 2024~~Challenges

~~Transformation~~Our ofindustry ~~our~~is ~~portfolio~~currently ofexperiencing ~~products~~consolidation –of ~~While~~ traditional ~~business~~supply ~~documents~~channels, ~~are~~product ~~essential in order to conduct business~~obsolescence, ~~many are being replaced through the use of cheaper~~ paper ~~grades~~supplier orcapacity ~~imported paper~~adjustments, orand ~~devalued~~increased ~~with~~pricing ~~advances~~and inpotential ~~digital~~supply ~~technologies,~~allocations ~~causing~~due ~~steady~~to ~~declines in~~ demand/supply ~~for~~curve ~~a portion of our current product line~~imbalance. ~~Transforming~~Technology ~~our~~advances ~~product~~have ~~offerings~~made inelectronic ~~order~~distribution toof ~~continue~~documents, tointernet ~~provide innovative~~hosting, ~~valuable~~digital ~~solutions~~printing ~~through lower labor~~ and ~~fixed charges to our customers on a proactive basis will require us to make investments in new and existing technology and to develop key strategic business relationships, such as~~ print-on-demand ~~services and product offerings that assist customers in their transition to digital business environments. In addition~~valid, wecost-effective ~~will~~alternatives ~~continue~~ to ~~look~~traditional ~~for~~custom-printed ~~new~~documents ~~market opportunities~~ and ~~niches~~customer ~~through~~communications. Improved ~~acquisitions,~~equipment ~~such~~has asbecome ~~the~~more ~~addition~~accessible ofto our ~~envelope~~competitors. ~~offerings,~~We ~~tag~~face ~~offerings,~~highly ~~folder~~competitive ~~offerings,~~conditions ~~healthcare~~throughout ~~wristbands,~~our ~~specialty~~supply ~~packaging,~~chain ~~direct mail, pressure seal products, secure document solutions, innovative~~ in~~-mold~~ ~~label~~an ~~offerings~~already ~~and long~~over-~~run integrated products with high color web printing~~supplied, ~~which~~price-competitive ~~provide~~print ~~us with an opportunity for growth and differentiate us from our competition~~industry. The ~~ability~~challenges toof ~~make~~our ~~investments~~business ininclude ~~new and existing technology and/or to acquire new market opportunities through acquisitions is dependent on~~ the ~~Company’s liquidity and operational results.~~following:

~~Production~~Transformation ~~capacity~~of ~~and~~our ~~price~~portfolio ~~competition~~of ~~within~~products ~~our industry~~ – ~~Industry~~While ~~supply~~traditional ofbusiness ~~paper~~documents ~~products~~are isessential ~~subject~~in order to ~~fluctuation~~conduct asbusiness, ~~changing~~many ~~industry~~are ~~conditions~~being ~~influence~~replaced ~~producers~~through tothe ~~idle~~use orof ~~permanently~~cheaper ~~close~~paper ~~individual~~grades ~~machines~~ or ~~mills~~imported paper, ~~and/~~or ~~convert~~devalued ~~them~~with toadvances ~~different~~in ~~product~~digital ~~lines~~technologies, ~~such~~causing assteady ~~packaging~~declines toin ~~offset~~demand for a ~~decline~~portion inof ~~demand.~~our ~~Paper~~current ~~mill~~product ~~shipments~~line. Transforming ~~were~~our ~~down~~product ~~across~~offerings ~~the~~in ~~board~~order ~~through~~to ~~the~~continue ~~first~~to ~~half~~provide ofinnovative, ~~2023~~valuable assolutions ~~buyers worked~~ through ~~elevated~~lower ~~inventories~~labor ofand ~~their~~fixed ~~products.~~charges ~~Producers~~to ~~responded~~our tocustomers ~~the~~on ~~sluggish~~a ~~demand~~proactive ~~conditions~~basis ~~with~~will ~~heavy~~require ~~downtime~~us ~~rather~~to ~~than~~make ~~permanent~~investments ~~closures~~in ~~keeping~~new ~~prices~~and ~~mostly~~existing ~~stable.~~technology ~~While~~and ~~our~~to ~~supply~~develop ofkey ~~paper~~strategic ~~during~~business ~~the~~relationships, ~~current~~such ~~fiscal~~as ~~year~~print-on-demand toservices ~~date~~and ~~has~~product ~~remained~~offerings ~~stable,~~that ~~margins~~assist ~~remain~~customers ~~under~~in ~~pressure~~their ~~due~~transition to ~~the~~digital ~~resulting~~business ~~weak~~environments. In ~~volumes and competitive pricing~~addition, we ~~intend~~will to continue to ~~focus~~look onfor ~~effectively~~new ~~managing~~market opportunities and ~~controlling~~niches ~~our~~through ~~product~~acquisitions, ~~costs~~such ~~through~~as the ~~use~~addition of ~~forecasting,~~our ~~production~~envelope ~~and~~offerings, ~~costing~~tag ~~models~~offerings, asfolder ~~well~~offerings, ashealthcare ~~working~~wristbands, ~~closely~~specialty ~~with~~packaging, ~~our~~direct ~~domestic~~mail, ~~suppliers~~pressure toseal ~~reduce~~products, ~~our~~secure ~~procurement~~document ~~costs~~solutions, innovative in-mold ~~order~~label toofferings ~~minimize~~and ~~effects~~long-run onintegrated ~~our~~products ~~operational~~with ~~results. In~~high ~~addition~~color web printing, wewhich ~~will~~provide ~~continue~~us towith ~~look~~an opportunity for ~~ways~~growth toand ~~reduce~~differentiate ~~and~~us ~~leverage~~from our ~~fixed~~competition. The ~~costs~~ability to make investments in new and ~~focus~~existing technology and/or to acquire new market opportunities through acquisitions is dependent on ~~maintaining~~the ~~our~~Company’s ~~margins.~~liquidity and operational results.

~~Continued~~Production ~~consolidation~~capacity ofand price competition within our ~~customers~~industry – ~~Our~~Industry ~~customers~~supply ~~are~~of ~~distributors~~paper products is subject to fluctuation as changing industry conditions have and will continue to influence producers to idle or permanently close individual machines or mills, ~~many~~and or convert them to different product lines, such as packaging to offset a decline in demand. Recently, there have been consolidations of paper suppliers and mill closure announcements which ~~are~~may ~~consolidating~~cause orthe ~~are~~paper ~~being~~prices ~~acquired~~to byfluctuate ~~competitors~~substantially in the future. WeThe ~~continue~~sole mill in the United States that produces rolls of carbonless paper announced that it would be closing this calendar year. In preparation for that supply disruption, we invested in and are continuing to ~~maintain~~purchase aadditional ~~majority~~inventory as buffer stock in response to the transition to alternative sources of carbonless paper. While margins remain under pressure due to the ~~business~~resulting weak volumes, we ~~have~~continue ~~had~~to ~~with~~focus ~~our~~on ~~customers~~effectively ~~historically,~~managing ~~but~~and itcontrolling isour ~~possible~~product ~~that~~costs ~~these~~through ~~consolidations~~the use of forecasting, production and ~~acquisitions~~costing models, ~~which~~as wewell ~~expect~~as working closely with our suppliers to ~~continue~~reduce our procurement costs, in ~~the~~order ~~future~~to minimize effects on our operational results. In addition, ~~ultimately~~we will ~~impact~~continue to look for ways to reduce and leverage our ~~margins~~fixed costs and ~~sales~~focus on maintaining our margins.

~~For~~Continued ~~further~~consolidation ~~information,~~of ~~please~~our ~~see~~customers ~~“Cautionary~~– ~~Statement~~Our ~~Regarding~~customers ~~Forward-Looking~~are ~~Statements~~distributors,” ~~above~~many ~~and~~of ~~“Risk~~which ~~Factors”~~are ~~contained~~consolidating ~~within~~or ~~our~~are ~~Annual~~being ~~Report~~acquired onby ~~Form~~competitors. We ~~10-K~~continue ~~for~~to maintain a majority of the ~~fiscal~~business ~~year~~we ~~ended~~have ~~February~~had 29with our customers historically, ~~2024~~but it is possible that these consolidations and acquisitions, which we expect to continue in the future, ultimately will impact our margins and sales.

~~Critical~~For ~~Accounting~~further ~~Estimates~~information, please see “Cautionary Statement Regarding Forward-Looking Statements,” above and “Risk Factors” contained within our Annual Report on Form 10-K for the fiscal year ended February 28, 2025.

~~Our~~Critical ~~Annual~~Accounting Report on Form 10-K for the year ended February 29, 2024, includes a description of certain critical accounting estimates, including those with respect to the pension plan, impairment assessments on goodwill and other intangible assets, allowance for credit losses and accounts receivable, and allowance for excess and obsolete inventories, which we believe are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management's judgments and estimates. During the quarter ended November 30, 2024, there have been no material changes to the critical accounting estimates described in our Annual Report on Form 10-K for the year ended February 29, 2024.Estimates

~~Recent~~Our ~~Accounting~~Annual ~~Pronouncements~~Report on Form 10-K for the year ended February 28, 2025, includes a description of certain critical accounting estimates, including those with respect to the pension plan, impairment assessments on goodwill and other intangible assets, allowance for credit losses and accounts receivable, and allowance for excess and obsolete inventories, which we believe are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management's judgments and estimates. During the quarter ended May 31, 2025, there have been no material changes to the critical accounting estimates described in our Annual Report on Form 10-K for the year ended February 28, 2025.

~~See~~Recent ~~Note~~Accounting ~~1 of the accompanying unaudited condensed consolidated financial statements for a discussion of recent accounting guidance.~~Pronouncements

~~Results~~See Note 1 of ~~Operations~~the accompanying unaudited condensed consolidated financial statements for a discussion of recent accounting guidance.

The following discussion provides information which we believe is relevant to understanding our results of operations and financial condition. The discussion and analysis should be read in conjunction with the accompanying interim unaudited consolidated financial statements and notes included in this filing. The operating results of the Company for the three and nine months ended November 30, 2024 and the comparative period for 2023 are set forth in the tables below.25

25ENNIS, INC. AND SUBSIDIARIES

~~ENNIS,~~FORM ~~INC. AND SUBSIDIARIES~~10-Q

~~FORM~~FOR ~~10-Q~~THE PERIOD ENDED MAY 31, 2025

~~FOR~~Results ~~THE~~of ~~PERIOD ENDED NOVEMBER 30, 2024~~Operations

~~Consolidated~~The ~~Summary~~following discussion provides information which we believe is relevant to understanding our results of operations and financial condition. The discussion and analysis should be read in conjunction with the accompanying interim unaudited consolidated financial statements and notes included in this filing. The operating results of the Company for the three months ended May 31, 2025 and the comparative period for 2024 are set forth in the tables below.

Unaudited Consolidated Statements of	Three Months Ended November 30,									Nine Months Ended November 30,
Operations - Data (in thousands)	2024					2023				2024					2023
Net sales	$	99,771		100.0	%	$	104,621	100.0	%	$	301,917		100.0	%	$	322,675	100.0	%
Cost of goods sold		70,522		70.7			74,090	70.8			211,985		70.2			225,004	69.7
Gross profit margin		29,249		29.3			30,531	29.2			89,932		29.8			97,671	30.3
Selling, general and administrative		16,341		16.4			17,410	16.6			50,068		16.6			54,094	16.8
(Gain) loss from disposal of assets		(138	)	(0.1	)		1	—			(95	)	—			53	—
Income from operations		13,046		13.1			13,120	12.5			39,959		13.2			43,524	13.5
Other income		1,029		1.0			696	0.7			3,074		1.0			1,735	0.5
Earnings before income taxes		14,075		14.1			13,816	13.2			43,033		14.3			45,259	14.0
Provision for income taxes		3,871		3.9			3,910	3.7			11,834		3.9			12,808	4.0
Net earnings	$	10,204		10.2	%	$	9,906	9.5	%	$	31,199		10.4	%	$	32,451	10.0	%

Consolidated Summary

Three months ended November 30, 2024 compared to three months ended November 30, 2023


Unaudited Condensed Consolidated Statements of	Three Months Ended May 31,
Operations - Data (in thousands)	2025				2024
Net sales	$	97,197	100.0	%	$	103,108	100.0	%
Cost of goods sold		66,967	68.9			72,204	70.0
Gross profit margin		30,230	31.1			30,904	30.0
Selling, general and administrative		16,947	17.4			17,170	16.7
Loss from disposal of assets		—	—			4	—
Income from operations		13,283	13.7			13,730	13.3
Other income		232	0.2			1,011	1.0
Earnings before income taxes		13,515	13.9			14,741	14.3
Provision for income taxes		3,716	3.8			4,054	3.9
Net earnings	$	9,799	10.1	%	$	10,687	10.4	%

~~Net~~Three ~~Sales. Our~~months ~~net sales were $99.8 million for the quarter~~ ended ~~November~~May 3031, ~~2024,~~2025 compared to ~~$104.6~~three ~~million~~months ~~for~~ended ~~the~~May ~~same quarter in the prior year~~31, a decrease of $4.8 million, or -4.6%. Sales from legacy plants decreased $8.4 million due to weaker volume demand and was partially offset by an approximately $3.6 million increase in revenues generated from our recent acquisitions. We face increased competition with respect to certain product lines which is exerting downward pressure on prices and production volumes. We also observe softening demand in some markets as customers transition from print to digital products. 2024

~~Cost~~Net ~~of Goods Sold and Gross Profit Margin~~Sales. AsOur anet ~~result of decreased~~ sales ~~volume,~~were ~~our cost of goods sold decreased~~ $397.62 million, ~~or -4.8%, from $74.1 million~~ for the ~~three~~quarter ~~months~~ ended ~~November~~May 3031, ~~2023~~2025, compared to $70103.51 million for the ~~three~~same ~~months~~quarter ~~ended~~in ~~November~~the 30prior year, ~~2024. Our~~a ~~gross~~decrease ~~profit~~of ~~was~~ $295.29 million, or 29-5.37%. Sales offrom ~~revenue~~legacy ~~for~~plants ~~the~~decreased ~~quarter ended November 30, 2024 compared to~~ $3011.54 million ordue ~~29.2%~~to ofweaker ~~revenue~~volume ~~for~~demand ~~the~~and ~~same~~was ~~quarter~~partially inoffset ~~the~~by ~~prior~~an ~~year~~approximately $5. ~~Our~~5 ~~gross~~million ~~profit~~increase ~~margin~~in ~~for~~revenues ~~the~~generated ~~quarter~~from ofour 29recent acquisitions.3% We ~~showed~~face anincreased 80competition ~~basis-point~~with ~~decline~~respect ~~compared~~ to ~~the~~certain ~~immediately~~product ~~preceding~~lines ~~quarter~~which ~~ending~~is ~~August~~exerting ~~31,~~downward ~~2024~~pressure aton ~~30.1%~~prices and ~~remained~~production ~~relatively flat compared to 29~~volumes.2% inWe ~~the~~also ~~same~~observe ~~prior~~softening ~~year quarter. Softening~~ demand ~~and more competitive pricing~~ in some ~~of our~~ markets ~~put~~as ~~downward~~customers ~~pressure~~transition onfrom ~~operating~~print ~~margins. We continue~~ to ~~take~~digital ~~mitigating actions through our cost management and pricing strategies to maintain our margins and offset continued pressure from soft market conditions and increased competition on price~~products.

~~Selling,~~Cost ~~general,~~of Goods Sold and ~~administrative~~Gross ~~expense~~Profit Margin. ~~For~~As ~~the~~a ~~three~~result ~~months~~of ~~ended~~decreased ~~November~~sales 30volume, ~~2024,~~ our ~~selling,~~cost ~~general,~~of ~~and~~goods ~~administrative~~sold ~~("SG&A")~~decreased ~~expenses~~$5.2 ~~were~~million, or -7.2%, from $1672.32 million ~~compared~~for the three months ended May 31, 2024 to $1767.40 million for the three months ended ~~November~~May 3031, ~~2023,~~2025. Our agross ~~decrease~~profit ofwas $130.12 million, or -631.1%~~. As~~ aof ~~percentage~~revenue offor ~~net~~the ~~sales~~quarter ended May 31, ~~SG&A~~2025 ~~expenses~~compared to $30.9 million or 30.0% of revenue for the ~~current~~same quarter ~~were~~in ~~16.4%~~the ~~and~~prior 16year.6% We ~~for~~continue ~~the~~to ~~three~~take ~~months~~mitigating ~~ended~~actions ~~November~~through ~~30,~~our ~~2024~~cost management and ~~November~~pricing ~~30,~~strategies ~~2023,~~to ~~respectively. Our~~maintain ~~SG&A~~our ~~expense~~margins ~~decreased~~and asoffset acontinued ~~result~~pressure offrom ~~operational~~soft ~~efficiencies~~market conditions and increased competition on price.

~~Gain~~Selling, general, and ~~loss~~administrative ~~from~~expense. For ~~disposal~~the ofthree ~~assets~~months ended May 31, 2025, our selling, general, and administrative ("SG&A") expenses were $16. ~~The~~9 million compared to $~~138~~17.2 million for the three months ended May 31,~~000~~ ~~net~~2024, ~~gain~~a ~~and~~decrease of $10.3 million,~~000~~ ~~net~~or ~~loss~~-1.7%. As ~~from~~a ~~disposal~~percentage of ~~assets~~net ~~during~~sales, SG&A expenses for the ~~three~~current ~~month~~quarter ~~period~~were 17.4% and 16.7% for the three months ended ~~November~~May 3031, ~~2024~~2025 and ~~2023~~May 31, ~~respectively~~2024, ~~was~~respectively. Our ~~primarily~~SG&A ~~attributed~~expense todecreased ~~the~~as ~~sale~~a result of ~~equipment.~~operational efficiencies.

~~Income~~Gain ~~from~~and ~~operations. Primarily~~loss ~~due~~from todisposal ~~factors~~of ~~described~~assets. The ~~above~~$4,000 ~~our~~net ~~income~~loss from ~~operations~~disposal ~~for~~of assets during the three ~~months~~month period ended ~~November~~May 3031, 2024, was ~~$13.0~~primarily ~~million,~~attributed orto ~~13.1%~~the sale of ~~net~~equipment. ~~sales,~~There ~~remained~~was ~~relatively~~no ~~flat~~gain ~~compared to $13.1 million,~~ or ~~12.5%~~loss ofin ~~net sales, for~~ the three ~~months~~month ~~ended~~period ~~November 30, 2023. Income from operations declined on a sequential quarter basis by $0.2 million and was $13.2 million for the quarter~~ ended ~~August~~May 31, ~~2024~~2025.

~~Other~~Income ~~income~~from ~~(expense)~~operations. ~~Other~~Primarily ~~income~~due ~~was~~to ~~$1.0~~factors ~~million~~described ~~for the three months ended November 30~~above, ~~2024~~our ~~compared~~income tofrom ~~$0.7~~operations ~~million~~ for the three months ended ~~November~~May 3031, ~~2023. Our~~2025 ~~increase in income~~ was ~~primarily~~$13.3 ~~from~~million, anor ~~increase~~13.7% inof ~~interest~~net ~~income~~sales, ~~from the increase in balance~~ and ~~rates~~remained ~~received~~relatively onflat ~~money~~compared ~~market~~to ~~accounts and short-term investments in the current quarter,~~ $113.47 million, ~~for~~or ~~the~~13.3% ~~three~~of ~~months~~net ~~ended November 30~~sales, ~~2024 compared to $1.0 million~~ for the three months ended ~~November~~May 3031, ~~2023~~2024.

~~Provision~~Other ~~for~~income (expense). Other income ~~taxes~~was $0.2 ~~Our~~million ~~effective~~for ~~tax~~the ~~rate~~three ~~was~~months ~~27.5%~~ended ~~and~~May 2831, 2025 compared to $1.3%0 million for the three months ended ~~November~~May 3031, 2024 ~~and 2023, respectively~~. ~~The~~Our decrease in ~~our~~income ~~overall~~was ~~tax~~primarily ~~rate~~from ~~this~~a ~~period~~decrease asin ~~compared~~interest toincome ~~last~~from ~~period~~lower iscash, ~~due~~cash toequivalent, aand ~~decrease~~investment inbalances. ~~our~~Interest ~~overall~~income ~~expected~~for ~~state~~the ~~tax~~three ~~rate~~months ~~due~~ended toMay ~~changes~~31, in2025 ~~state~~and ~~apportionment~~2024 were $0.6 and $1.4 million.

~~Net~~Provision ~~earnings. Net~~for ~~earnings,~~income ~~due~~taxes. toOur ~~the~~effective ~~factors~~income ~~above,~~tax ~~were~~rate ~~$10~~was 27.25% ~~million~~ for the three months ended ~~November~~May 3031, ~~2024~~2025 asand remained flat compared to ~~$9.9 million for~~ the ~~comparable~~three ~~quarter~~months inended ~~the~~May ~~prior~~31, ~~year~~2024. ~~Net earnings were impacted by decreased revenues for the three~~

26Net earnings. Net earnings, due to the factors above, were $9.8 million for the three months ended May 31, 2025 as compared to $10.7 million for the comparable quarter in the prior year. Net earnings were impacted by decreased revenues for the three months

~~ENNIS, INC. AND SUBSIDIARIES~~26

~~FORM~~ENNIS, ~~10-Q~~INC. AND SUBSIDIARIES

~~FOR~~FORM ~~THE PERIOD ENDED NOVEMBER 30, 2024~~10-Q

~~months~~FOR ~~ended~~THE ~~November~~PERIOD ~~30,~~ENDED ~~2024~~MAY ~~compared to the three months ended November 30~~31, ~~2023. After-tax earnings per diluted share for the three months ended November 30, 2024 were $0.39, compared to $0.38 for the same quarter last year.~~ 2025

~~Nine~~ended May 31, 2025 compared to the three months ended ~~November~~May 3031, 2024. After-tax ~~compared~~earnings toper ~~nine~~diluted share for the three months ended ~~November~~May 3031, ~~2023~~2025 were $0.38, compared to $0.41 for the same quarter last year.

~~Net~~Liquidity Sales. Our net sales were $301.9 million for the nine month period ended November 30, 2024, compared to $322.7 million for the same period last year, a decrease of $20.8 million, or -6.4%. Sales from legacy plants decreased $31.5 million due to weaker volume demand and ~~was~~Capital partially offset by an approximately $10.7 million increase in revenues generated from our recent acquisitions. We face increased competition with respect to certain product lines which is exerting downward pressure on prices and production volumes. We also observe softening demand in some markets as customers transition from print to digital products. Resources

~~Cost~~We ofrely ~~Goods~~on ~~Sold~~our ~~and~~cash ~~Gross~~flows ~~Profit~~generated ~~Margin. Our~~from ~~cost~~operations ofto ~~goods~~meet ~~sold~~all ~~decreased~~cash ~~$13.0~~requirements ~~million,~~of orour -5business.~~8%,~~ The ~~from~~primary ~~$225.0~~cash ~~million~~requirements ~~for~~of ~~the~~our ~~nine~~business ~~months~~are ~~ended~~payments ~~November 30, 2023~~ to ~~$212.0~~vendors ~~million~~in ~~for~~ the ~~nine~~normal ~~months~~course ~~ended~~of ~~November 30~~business, ~~2024.~~capital ~~Our~~expenditures, ~~gross~~compensation ~~profit~~and ~~was~~benefits ~~$89.9~~for ~~million~~employees ~~for~~and the ~~nine~~payment ~~month~~of ~~period~~dividends ~~ended November 30, 2024 compared~~ to ~~$97~~our shareholders.7 We ~~million~~believe ~~for~~that ~~the~~our ~~same~~current ~~period~~cash inbalance ~~the prior year. Our gross profit margin~~ of 29$32.8%6 ~~for~~million ~~the~~at ~~current~~May ~~nine~~31, ~~month period~~2025, ~~decreasing~~as ~~from~~well ~~the~~as ~~prior~~our ~~year~~anticipated ~~nine~~cash ~~month~~flows ~~period~~from ~~of 30.3%~~operations, iswhich ~~within~~are ~~our~~expected ~~target~~to ~~range.~~be ~~Our~~similar ~~gross~~to ~~profit~~prior ~~margin~~periods, asshould abe ~~percentage~~adequate ofto ~~sales~~cover ~~was higher in~~ the ~~prior~~next ~~year~~twelve ~~nine~~months ~~month~~and ~~period~~beyond ~~ending November 30, 2023 due to a higher absorption~~ of ~~fixed~~our ~~costs~~operating ~~driven~~and ~~from~~capital ~~greater volumes shipped~~requirements. Our Wecapital ~~continue~~requirements to ~~take~~maintain ~~mitigating actions through~~ our ~~cost~~manufacturing ~~management~~property ~~and~~are ~~pricing~~expected ~~strategies~~ to ~~maintain~~be ~~our~~between ~~margins~~$4.0 million and ~~offset~~$7.0 ~~continued~~million ~~pressure~~over ~~from~~the ~~soft~~next ~~market~~twelve ~~conditions~~months. These ~~and~~amounts ~~increased~~are ~~competition~~consistent onwith ~~price~~our historical levels.

Selling, general, and administrative expense. For the nine months ended November 30, 2024, our SG&A expenses were $50.1 million compared to $54.1 million for the nine months ended November 30, 2023, a decrease of $4.0 million, or -7.4%. As a percentage of net sales, SG&A expenses for the period were 16.6% and 16.8% for the nine months ended November 30, 2024 and 2023, respectively. Our SG&A expense decreased as a result of operational efficiencies.


	May 31,		February 28,
(Dollars in thousands)	2025		2025
Working capital	$	90,239	$	119,436
Cash	$	32,623	$	67,000
Short-term investments	$	-	$	5,475

~~Gain~~Working ~~and~~Capital. Due ~~loss~~primarily ~~from~~to ~~disposal~~the acquisition of ~~assets~~NEC and ESS for approximately $34. ~~The~~9 million during the three months ended May 31, 2025, our working capital decreased $9529.2 million or -24.4%,~~000~~ ~~net~~from ~~gain~~$119.4 ~~and~~million at February 28, 2025 to $5390.2 million at May 31,~~000~~ ~~net~~2025. Our ~~loss~~current ~~from~~ratio, ~~disposal~~calculated ofby dividing our current assets ~~during~~by ~~the~~our ~~nine~~current ~~month~~liabilities, ~~period~~decreased ~~ended~~from ~~November~~4.6 30to 1.0 at February 28, ~~2024~~2025 to 3.0 to 1.0 at May 31, 2025. Our decrease in working capital primarily reflects the decrease in cash, cash equivalents and ~~2023~~short-term investments of $39.9 million, ~~respectively~~an increase in other receivables of $8.8 million, ~~was~~and ~~primarily~~an ~~attributed~~increase toin inventory of $14.3, offset by the ~~sale~~increase in accounts payable and accrued expenses of ~~equipment~~$12.4 million.

Income from operations. Primarily due to factors described above, our income from operations for the nine months ended November 30, 2024 was $40.0 million, or 13.2% of net sales, as compared to $43.5 million, or 13.5% of net sales, for the nine months ended November 30, 2023.


	Three months ended May 31,
(Dollars in thousands)	2025			2024
Net cash provided by operating activities	$	7,960		$	23,105
Net cash used in investing activities	$	(30,799	)	$	(5,052	)
Net cash used in financing activities	$	(11,537	)	$	(8,287	)

~~Other~~Cash ~~income~~flows ~~(expense)~~from operating activities. ~~Other~~Cash ~~income~~provided by operating activities was $38.10 million ~~for~~in the ~~nine~~three months ended ~~November~~May 3031, ~~2024~~2025 compared to $123.71 million ~~for~~in the ~~nine~~comparative ~~months~~period ended ~~November~~May 3031, ~~2023~~2024. Our ~~increase~~decreased operational cash flows in ~~income~~the three months ended May 31, 2025 compared to the three months ended May 31, 2024 was primarily ~~from~~the anresult of $10.5 million increase infrom ~~interest~~accounts ~~income~~and other receivables, $10.8 million increase from inventories offset by $8.6 increase in ~~balance~~accounts payable and ~~rates~~accrued ~~received~~expenses. The onincrease ~~money~~in ~~market~~inventory, accounts payable and ~~short-term~~accrued ~~investments~~expenses induring the current period, $4was primarily due to an increase in purchasing activities.1 ~~million~~The ~~for~~sole mill in the ~~nine~~United ~~months~~States ~~ended~~that ~~November~~produces ~~30,~~carbonless ~~2024~~paper ~~compared~~announced tothat $2it would be closing this calendar year.7 ~~million~~In preparation for that supplier disruption, we invested in and are continue to purchase additional inventory as a buffer stock in response to the ~~nine~~transition ~~months~~to ~~ended~~alternative ~~November~~sources ~~30,~~of ~~2023~~carbonless paper.

~~Provision~~Cash ~~for~~flows ~~income~~from ~~taxes~~investing activities. Cash ~~Our~~used ~~effective~~by ~~tax~~investing ~~rate~~activities was 27$30.5%8 ~~and~~million 28in the three months ended May 31, 2025 compared to cash used in investing activities of $5.3%1 ~~for~~million in the ~~nine~~three months ended ~~November~~May 3031, 2024. ~~and~~In ~~2023~~the three months ended May 31, ~~respectively~~2025, $34.9 ~~The~~million ~~decrease~~was inused ~~our~~to ~~overall~~acquire ~~tax~~NEC ~~rate~~and ~~this~~ESS. In addition, during the current period, aswe ~~compared~~did tonot ~~last~~purchase ~~period~~any isU.S. ~~due~~government totreasury abills ~~decrease~~and intherefore, ~~our~~there ~~overall~~is ~~expected~~a ~~state~~$10.1 ~~tax~~million ~~rate~~change ~~due~~from tothe ~~changes~~same period in ~~state~~the ~~apportionment~~prior year.

~~Net~~Cash ~~earnings~~flows from financing activities. ~~Net~~We ~~earnings,~~used ~~due~~$3.3 tomillion ~~the~~more ~~factors~~cash ~~above,~~in ~~were~~financing ~~$31.2~~activities ~~million~~during ~~for~~ the ~~nine~~three months ended ~~November~~May 3031, ~~2024~~2025 as compared to ~~$32.5 million for~~ the ~~comparable~~same period in the prior year~~, a decrease of $1~~.~~3 million.~~ ~~Net~~During ~~earnings~~the ~~per~~three ~~diluted~~months ~~share~~ended ~~for~~May ~~the~~31, ~~nine~~2025 ~~months~~and ~~ended~~May ~~November 30~~31, 2024, ~~was~~we purchased $15.~~19,~~0 ~~compared~~million toand $1.258 ~~for~~million, ~~the~~respectively ~~same~~in ~~period~~common instock ~~the~~under ~~prior~~our ~~year~~stock repurchase program.

~~Liquidity~~Credit Facility – As of May 31, 2025, we had $0.3 million outstanding under a standby letter of credit arrangement secured by a cash collateral bank account. It is anticipated that our cash, short-term investments and ~~Capital~~funds ~~Resources~~from operating cash flows will be sufficient to fund anticipated future expenditures, including acquisitions.

We rely on our cash flows generated from operations to meet all cash requirements of our business. The primary cash requirements of our business are payments to vendors in the normal course of business, capital expenditures, compensation and benefits for employees and the payment of dividends to our shareholders. We believe that our current cash balance of $55.7 million and our short-term investments of $12.9 million at November 30, 2024, as well as our anticipated cash flows from operations, which are expected to be similar to prior periods, should be adequate to cover the next twelve months and beyond of our operating and capital requirements. Our 27

27ENNIS, INC. AND SUBSIDIARIES

~~ENNIS,~~FORM ~~INC. AND SUBSIDIARIES~~10-Q

~~FORM~~FOR ~~10-Q~~THE PERIOD ENDED MAY 31, 2025

~~FOR~~Pension ~~THE~~Plan ~~PERIOD~~– ~~ENDED~~The ~~NOVEMBER~~funded 30status of our Pension Plan is dependent on many factors, ~~2024~~including returns on invested assets, the level of market interest rates and the level of funding. We are not required to make a contribution to the pension plan for fiscal year 2026. We made a contribution of $1.2 million to the pension plan for fiscal year 2025. As our pension assets are invested in marketable securities, changes in actual investment returns or in discount rates could change funding status and requirements significantly. At May 31, 2025, we had a funded pension asset of $1.4 million.

~~capital~~Inventories ~~requirements~~– We believe our inventory levels are ~~expected~~sufficient to besatisfy ~~between~~our $3customer demands and we anticipate having adequate sources of raw materials to meet future business requirements.0 ~~million~~Recently, there have been consolidations of paper suppliers and $6mill closure announcements which may cause the paper prices to fluctuate substantially in the future.0 The ~~million~~sole ~~over~~mill in the ~~next~~United ~~twelve~~States ~~months~~that produces rolls of carbonless paper announced that it would be closing this calendar year. ~~These~~In ~~amounts~~preparation for that supply disruption, we invested in and are ~~consistent~~continuing to purchase additional inventory as buffer stock in response to the transition to alternative sources of carbonless paper. We have long-term contracts in effect with paper suppliers that govern prices, but do not require minimum purchase commitments. Certain of our ~~historical~~rebate ~~levels~~programs do, however, require minimum purchase volumes. Management anticipates meeting the required volumes.

	November 30,		February 29,
(Dollars in thousands)	2024		2024
Working capital	$	120,096	$	167,581
Cash	$	55,704	$	81,597
Short-term investments	$	12,862	$	29,325

Capital Expenditures – We continue to make capital expenditures for operational maintenance purposes, as may be required. Additionally, we will carefully review and make capital expenditures for additional equipment to the extent such additions make economic sense by improving our operations and not jeopardizing our strong liquidity position. We expect our capital requirements for our current fiscal year, exclusive of capital required for possible acquisitions, will be within our historical levels of between $4.0 million and $7.0 million. For the three months ended May 31, 2025, we spent approximately $1.4 million on capital expenditures that was funded out of our cash balance. We expect to generate sufficient cash flows from our operating activities to cover our operating and other normal capital requirements for the foreseeable future.

~~Working~~Contractual ~~Capital. Due~~Obligations ~~primarily~~– toThere ahave ~~special~~been ~~dividend~~no ofsignificant ~~$65.0~~changes ~~million~~in ~~paid to Shareholders during the nine months ended November 30, 2024,~~ our ~~working~~contractual ~~capital~~obligations ~~decreased~~since ~~$47.5~~February ~~million or -~~28~~.3%~~, ~~from~~2025 ~~$167.6~~that ~~million~~have, ator ~~February~~are ~~29,~~reasonably ~~2024~~likely to ~~$120.1 million at November 30~~have, ~~2024. Our~~a ~~current~~material ~~ratio,~~impact ~~calculated~~on ~~by dividing~~ our ~~current~~results ~~assets~~of byoperations ~~our~~or ~~current~~financial ~~liabilities, decreased from 6~~condition.~~0 to 1.0 at February 29, 2024 to 4.7 to 1.0 at November 30, 2024.~~ ~~Our~~We ~~decrease~~do innot ~~working~~have ~~capital~~off-balance ~~primarily~~sheet ~~reflects~~arrangements ~~the~~or ~~decrease in cash and short~~special-~~term~~purpose ~~investments, $42~~entities.~~4 million, and net trade receivable, $7.0 million, offset by the decrease in accrued expenses, $2.0 million.~~

	Nine months endedNovember 30,
(Dollars in thousands)	2024			2023
Net cash provided by operating activities	$	53,097		$	52,500
Net cash provided by (used in) investing activities	$	7,919		$	(43,175	)
Net cash used in financing activities	$	(86,909	)	$	(19,391	)

~~Cash flows from operating activities. Cash provided by operating activities was $53.1 million in the nine months ended November 30~~ENNIS, ~~2024 compared to $52~~INC.5 ~~million~~AND in the comparative period ended November 30, 2023. Accounts receivable, net of accounts receivable from acquired business since the prior fiscal year-end, provided cash of $8.1 million in the current year nine-month period, and $8.2 million in the comparable nine-month period of the prior year. The decrease in accounts receivable in the current period was primarily due to decreased sales volume and improved collections. A decrease in inventories provided cash of $2.5 million in the nine-month period ended November 30, 2024 and $6.8 million in the same period of 2023. Cash used in the current year nine-month period for accounts payable and accrued expenses were $2.4 million and $7.8 million in the prior year comparable nine-month period. The decrease in accounts payable and accrued expenses during the current period was primarily due to a decrease in purchasing activities and inventory management. We continue to monitor incoming orders and adjust raw material purchases accordingly.SUBSIDIARIES

~~Cash~~FORM flows from investing activities. Cash provided by investing activities was $7.9 million in the nine months ended November 30, 2024 compared to cash used in investing activities of $43.2 million in the nine months ended November 30, 2023. Capital expenditures primarily of equipment was $4.3 million and $4.9 million for the nine months ended November 30, 2024 and November 30, 2023, respectively. In the nine months ended November 30, 2024, $5.5 million was used to acquire businesses compared to $19.9 million in same period last year. During the current period, we purchased approximately $10.1 million of U.S. government treasury bills, which was partially offset by $27.5 million in matured treasury bills and invested in money market funds. We purchased $18.4 million of U.S. government treasury bills during the nine months ended November 30, 2023.-Q

~~Cash~~FOR ~~flows~~THE ~~from~~PERIOD ~~financing~~ENDED ~~activities. We~~MAY ~~used $67.5 million more cash in financing activities during the nine months ended November 30~~31, 2024 compared to the same period in the prior year. The increase in cash used during the nine months ended November 30, 2024 resulted from a one-time special dividend of $2.50 per share or $65.0 million and a $1.8 million common stock repurchased under our stock repurchase program in the nine months ended November 30, 2024.2025

~~Credit~~Item ~~Facility – As of November 30, 2024, we had $0.~~3 ~~million outstanding under a standby letter of credit arrangement secured by a cash collateral bank account~~. It isQUANTITATIVE ~~anticipated~~AND ~~that~~QUALITATIVE ~~our~~DISCLOSURES ~~cash,~~ABOUT ~~short-term~~MARKET ~~investments and funds from operating cash flows will be sufficient to fund anticipated future expenditures, including acquisitions.~~RISK

28Market Risk

~~ENNIS,~~Interest ~~INC. AND SUBSIDIARIES~~Rates

~~FORM~~From 10time to time, we are exposed to interest rate risk on short-Qterm and long-term financial instruments carrying variable interest rates. We may from time to time utilize interest rate swaps to manage overall borrowing costs and reduce exposure to adverse fluctuations in interest rates. We do not use derivative instruments for trading purposes. While we had no outstanding debt at May 31, 2025, we will be exposed to interest rate risk if we borrow in the future.

~~FOR~~This ~~THE~~market ~~PERIOD~~risk ~~ENDED~~discussion ~~NOVEMBER~~contains ~~30,~~forward-looking ~~2024~~statements. Actual results may differ materially from this discussion based upon general market conditions and changes in domestic and global financial markets.

~~Pension~~Item ~~Plan – The funded status of our Pension Plan is dependent on many factors, including returns on invested assets, the level of market interest rates and the level of funding~~4. ~~Assuming~~CONTROLS aAND stable funding status, we would expect that future required contributions would be between $1.0 million and $3.0 million per year. As our pension assets are invested in marketable securities, changes in actual investment returns or in discount rates could change funding status and requirements significantly. We made a contribution of $1.2 million to our Pension Plan during the nine months ended November 30, 2024. At November 30, 2024, we had a funded pension asset of $0.1 million.PROCEDURES

~~Inventories~~Evaluation –of Disclosure Controls and Procedures. We ~~believe~~maintain ~~our~~“disclosure ~~inventory~~controls ~~levels~~and procedures” as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act of 1934, as amended (the “Exchange Act”) that are ~~sufficient~~designed to ~~satisfy~~ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our ~~customer~~management, ~~demands~~including our principal executive and wefinancial ~~anticipate~~officers, ~~having~~as appropriate to allow timely decisions regarding required disclosures. Our controls and procedures are tested and evaluated at regular intervals to confirm that they are adequate ~~sources~~and followed by our personnel to prevent misstatement of ~~raw~~the ~~materials~~Company’s financial statements. Due to ~~meet~~the ~~future~~inherent ~~business~~limitations ~~requirements~~of control systems, not all misstatements may be detected. WeThose ~~have~~inherent ~~long-term~~limitations ~~contracts~~include the realities that judgments in ~~effect~~decision-making ~~with~~can ~~paper~~be ~~suppliers~~faulty and that ~~govern~~breakdowns ~~prices~~can occur because of simple errors or mistakes. Additionally, ~~but~~controls docould be circumvented by the individual acts of some persons or by collusion of two or more people. Our controls and procedures can only provide reasonable, not ~~require~~absolute, ~~minimum~~assurance ~~purchase~~that ~~commitments~~the above objectives have been met. ~~Certain~~Our management, with the participation of our ~~rebate~~Chairman ~~programs~~of dothe Board, ~~however~~President and Chief Executive Officer (“CEO”) and Chief Financial Officer and Treasurer (“CFO”), ~~require~~has ~~minimum~~evaluated ~~purchase~~the ~~volumes~~effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q. ~~Management~~ ~~anticipates~~Based ~~meeting~~on that evaluation, our CEO and CFO have concluded that, as of May 31, 2025, our disclosure controls and procedures are effective to provide reasonable assurance that information relating to us (including our consolidated subsidiaries), which is required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required ~~volumes~~disclosure.

~~Capital~~There ~~Expenditures~~have –been Weno ~~continue~~changes toin ~~make~~our ~~capital~~internal ~~expenditures~~control ~~for~~over ~~operational~~financial ~~maintenance~~reporting ~~purposes,~~ (as ~~may~~defined bein ~~required. Additionally,~~Rule we13a–15(f) ~~will~~or ~~carefully~~Rule ~~review~~15d–15(f) ~~and~~of ~~make capital expenditures for additional equipment to~~ the ~~extent~~Exchange ~~such~~Act) ~~additions~~that ~~make~~occurred ~~economic~~during sense by improving our operations and not jeopardizing our strong liquidity position. We expect our capital requirements for our current fiscal year, exclusive of capital required for possible acquisitions, will be within our historical levels of between $3.0 million and $6.0 million. For the ~~nine~~three months ended ~~November~~May 3031, ~~2024,~~2025 ~~we spent approximately $4.3 million on capital expenditures~~ that ~~was~~have ~~funded~~materially ~~out~~affected, ofor ~~our~~are ~~cash~~reasonably ~~balance. We~~likely ~~expect~~ to ~~generate~~materially ~~sufficient~~affect, ~~cash flows from~~ our ~~operating~~internal ~~activities~~control toover ~~cover~~financial ~~our operating and other normal capital requirements for the foreseeable future~~reporting.

~~Contractual~~PART Obligations – There have been no significant changes in our contractual obligations since February 29, 2024 that have, or are reasonably likely to have, a material impact on our results of operations or financial conditionII. We doOTHER ~~not have off-balance sheet arrangements or special-purpose entities.~~INFORMATION

29Item 1. Legal Proceedings

~~ENNIS,~~From ~~INC~~time to time we are involved in various litigation matters arising in the ordinary course of our business. ~~AND~~We ~~SUBSIDIARIES~~do not believe the disposition of any current matter will have a material adverse effect on our consolidated financial position or results of operations.

~~FORM~~In ~~10-Q~~October 2023, Crabar/GBF, Inc., a subsidiary of Ennis, was awarded $5.8 million in actual damages, exemplary damages and attorney’s fees in a case against Wright Printing Company, its owner Mark Wright, and CEO Mardra Sikora. Given the defendants’ pending appeal, we have not yet recognized a contingent gain from the October 2023 judgment. Nevertheless, the defendants have posted cash bonds that total approximately $5.1 million, which should be recoverable by the Company if defendants’ appeal is unsuccessful.

~~FOR~~Ennis ~~THE~~and ~~PERIOD~~one ~~ENDED~~of ~~NOVEMBER~~its 30subsidiaries are defendants in a lawsuit in Arizona concerning the lease of the former B&D Litho facility that was closed in 2019. The Company has denied the landlord’s allegations and is vigorously contesting the landlord’s unreasonable claim. The Court has made a preliminary ruling that defendants failed to maintain the facility’s air conditioning equipment, ~~2024~~paved surfaces and roof in good condition even though the landlord had assumed responsibility for some of those maintenance obligations. The Company has accrued a liability reserve of approximately $0.4 million related to this claim. The case will be tried during either the fourth calendar quarter of 2025 or the first calendar quarter of 2026.

~~Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~29

~~Market~~ENNIS, ~~Risk~~INC. AND SUBSIDIARIES

~~Interest~~FORM ~~Rates~~10-Q

~~From~~FOR ~~time~~THE toPERIOD ~~time,~~ENDED weMAY are exposed to interest rate risk on short-term and long-term financial instruments carrying variable interest rates. We may from time to time utilize interest rate swaps to manage overall borrowing costs and reduce exposure to adverse fluctuations in interest rates. We do not use derivative instruments for trading purposes. While we had no outstanding debt at November 3031, ~~2024, we will be exposed to interest rate risk if we borrow in the future.~~2025

~~This~~Item ~~market risk discussion contains forward-looking statements~~1A. ~~Actual~~ ~~results~~Risk ~~may differ materially from this discussion based upon general market conditions and changes in domestic and global financial markets.~~Factors

~~Item~~There 4.have ~~CONTROLS~~been ~~AND~~no ~~PROCEDURES~~material changes in our Risk Factors as previously discussed in our Annual Report on Form 10-K for the year ended February 28, 2025.

~~Evaluation~~Item ~~of Disclosure Controls and Procedures~~2. WeUnregistered ~~maintain~~Sales ~~“disclosure controls and procedures” as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act~~ of ~~1934,~~Equity as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the Securities and ~~Exchange~~Use Commission’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosures. Our controls and procedures are tested and evaluated at regular intervals to confirm that they are adequate and followed by our personnel to prevent misstatement of the Company’s financial statements. Due to the inherent limitations of control systems, not all misstatements may be detected. Those inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple errors or mistakes. Additionally, controls could be circumvented by the individual acts of some persons or by collusion of two or more people. Our controls and procedures can only provide reasonable, not absolute, assurance that the above objectives have been met. Our management, with the participation of our Chairman of the Board, President and Chief Executive Officer (“CEO”) and Chief Financial Officer and Treasurer (“CFO”), has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our CEO and CFO have concluded that, as of November 30, 2024, our disclosure controls and procedures are effective to provide reasonable assurance that information relating to us (including our consolidated subsidiaries), which is required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.Proceeds

~~There~~At ~~have~~its ~~been~~July no14, ~~changes~~2022 meeting, the Ennis, Inc. Board of Directors authorized an additional $20.0 million in ~~our~~funding ~~internal~~for ~~control~~the ~~over~~Company’s ~~financial~~share ~~reporting~~repurchase ~~(as~~program ~~defined~~that was first implemented in ~~Rule~~2008. With ~~13a–15(f)~~this orlatest ~~Rule~~funding ~~15d–15(f)~~authorization, ofthe cumulative funds authorized for share repurchases totals $60.0 million. Under the ~~Exchange~~repurchase ~~Act)~~program, ~~that~~purchases ~~occurred~~may ~~during~~be made from time to time in the ~~nine~~open ~~months~~market ~~ended~~or ~~November~~through 30privately negotiated transactions depending on market conditions, ~~2024~~share ~~that~~price, ~~have~~trading ~~materially~~volume ~~affected~~and other factors. Such purchases, if any, will be made in accordance with applicable insider trading rules and other securities laws and regulations. These repurchases may be commenced or ~~are~~suspended ~~reasonably~~at ~~likely~~any totime ~~materially~~or ~~affect,~~from ~~our~~time ~~internal~~to ~~control~~time ~~over~~without ~~financial~~prior ~~reporting~~notice.

~~PART~~During IIthe three months ended May 31, 2025, the Company repurchased 260,560 shares of common stock under the program at an average price of $19.04. Since ~~OTHER~~the ~~INFORMATION~~program’s inception in October 2008, there have been 2,594,904 common shares repurchased at an average price of $16.73 per share. As of May 31, 2025, $16.6 million remained available to repurchase shares of the Company’s common stock under the program.

~~Item~~Items 1.3, ~~Legal~~4 ~~Proceedings~~and 5 are not applicable and have been omitted

~~From~~Item ~~time to time, we are involved in various litigation matters arising in the ordinary course of our business~~6. We ~~do not believe the disposition of any current matter will have a material adverse effect on our consolidated financial position or results of operations.~~ Exhibits

InThe ~~October~~following ~~2023,~~exhibits ~~Crabar/GBF,~~are ~~Inc.,~~filed aas ~~subsidiary~~part of ~~Ennis,~~this ~~was awarded $5~~report.8 million in actual damages, exemplary damages and attorney’s fees in a case against Wright Printing Company, its owner Mark Wright, and CEO Mardra Sikora. Given the defendants’ pending appeal, we have not yet recognized the contingent gain from the judgment in the accompanying condensed consolidated financial statements as of November 30, 2024. In addition, the defendants have posted cash bonds that total approximately $5.1 million, which should be recoverable by the Company if defendants’ appeal is unsuccessful.

Item 1A. Risk Factors


Exhibit Number		Description

Exhibit 3.1(a)		Restated Articles of Incorporation, as amended through June 23, 1983 with attached amendments dated June 20, 1985, July 31, 1985, June 16, 1988 and November 4, 1998, incorporated herein by reference to Exhibit 3.1(a) to the Registrant’s Form 10-Q filed on October 6, 2017 (File No. 001-05807).

Exhibit 3.1(b)		Amendment to Articles of Incorporation, dated June 17, 2004, incorporated herein by reference to Exhibit 3.1(b) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 28, 2007 filed on May 9, 2007 (File No. 001-05807).

Exhibit 3.2		Fourth Amended and Restated Bylaws of Ennis, Inc., dated July 10, 2017, incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on July 10, 2017 (File No. 001-05807).

Exhibit 31.1		Certification Pursuant to Rule 13a-14(a) of Chief Executive Officer.*

Exhibit 31.2		Certification Pursuant to Rule 13a-14(a) of Chief Financial Officer.*

Exhibit 32.1		Section 1350 Certification of Chief Executive Officer.**

Exhibit 32.2		Section 1350 Certification of Chief Financial Officer.**

Exhibit 101		The following information from Ennis, Inc.’s Quarterly Report on Form 10-Q for the quarter ended May 31, 2025, filed on June 30, 2025, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements, tagged as blocks of text and in detail.*

Exhibit 104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

~~There~~* Filed ~~have~~herewith ~~been no material changes in our Risk Factors as previously discussed in our Annual Report on Form 10-K for the year ended February 29, 2024.~~

30** Furnished herewith

~~ENNIS, INC. AND SUBSIDIARIES~~30

~~FORM~~ENNIS, ~~10-Q~~INC. AND SUBSIDIARIES

~~FOR~~FORM ~~THE PERIOD ENDED NOVEMBER 30, 2024~~10-Q

~~Item~~FOR 2.THE ~~Unregistered~~PERIOD ~~Sales~~ENDED ofMAY ~~Equity~~31, ~~Securities and Use of Proceeds~~2025

At its July 14, 2022 meeting, the Ennis, Inc. Board of Directors authorized an additional $20 million in funding for the Company’s share repurchase program that was first implemented in 2008. With this latest funding authorization, the cumulative funds authorized for share repurchases totals $60 million. Under the repurchase program, purchases may be made from time to time in the open market or through privately negotiated transactions depending on market conditions, share price, trading volume and other factors. Such purchases, if any, will be made in accordance with applicable insider trading rules and other securities laws and regulations. These repurchases may be commenced or suspended at any time or from time to time without prior notice.SIGNATURES

~~During~~Pursuant ~~the~~to ~~nine months ended November 30, 2024,~~ the ~~Company~~requirements ~~repurchased 91,883 shares~~ of ~~common stock under~~ the ~~program~~Securities atExchange anAct ~~average price~~ of ~~$19.79. Since~~1934, the ~~program’s~~registrant ~~inception~~has induly ~~October~~caused ~~2008,~~this ~~there~~report ~~have~~to ~~been~~be ~~2,334,344~~signed ~~common~~on ~~shares~~its ~~repurchased~~behalf atby ~~an average price of $16.47 per share. As of November 30, 2024, $21.5 million remained available to repurchase shares of~~ the ~~Company’s~~undersigned ~~common~~thereunto ~~stock~~duly ~~under the program~~authorized.

Items 3, 4 and 5 are not applicable and have been omitted


		ENNIS, INC.

Date: June 30, 2025		/s/ Keith S. Walters
		Keith S. Walters
		Chairman, Chief Executive Officer and President

Date: June 30, 2025		/s/ Vera Burnett
		Vera Burnett
		Chief Financial Officer, Treasurer and
		Principal Financial and Accounting Officer

~~Item 6. Exhibits~~31

The following exhibits are filed as part of this report.

Exhibit Number		Description
Exhibit 3.1(a)		Restated Articles of Incorporation, as amended through June 23, 1983 with attached amendments dated June 20, 1985, July 31, 1985, June 16, 1988 and November 4, 1998, incorporated herein by reference to Exhibit 3.1(a) to the Registrant’s Form 10-Q filed on October 6, 2017 (File No. 001-05807).
Exhibit 3.1(b)		Amendment to Articles of Incorporation, dated June 17, 2004, incorporated herein by reference to Exhibit 3.1(b) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 28, 2007 filed on May 9, 2007 (File No. 001-05807).
Exhibit 3.2		Fourth Amended and Restated Bylaws of Ennis, Inc., dated July 10, 2017, incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on July 10, 2017 (File No. 001-05807).
Exhibit 31.1		Certification Pursuant to Rule 13a-14(a) of Chief Executive Officer.*
Exhibit 31.2		Certification Pursuant to Rule 13a-14(a) of Chief Financial Officer.*
Exhibit 32.1		Section 1350 Certification of Chief Executive Officer.**
Exhibit 32.2		Section 1350 Certification of Chief Financial Officer.**
Exhibit 101		The following information from Ennis, Inc.’s Quarterly Report on Form 10-Q for the quarter ended November 30, 2024, filed on January 7, 2025, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements, tagged as blocks of text and in detail.*
Exhibit 104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

* Filed herewith

** Furnished herewith

ENNIS, INC. AND SUBSIDIARIES

FORM 10-Q

FOR THE PERIOD ENDED NOVEMBER 30, 2024

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ENNIS, INC.
Date: January 7, 2025		/s/ Keith S. Walters
		Keith S. Walters
		Chairman, Chief Executive Officer and President
Date: January 7, 2025		/s/ Vera Burnett
		Vera Burnett
		Chief Financial Officer, Treasurer and
		Principal Financial and Accounting Officer

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