Net Sales and Revenue Recognition

Customer Concentration

A significant portion of the Company’s revenues are realized from the sale of process fluids and services to manufacturers of steel, aluminum, automotive, aerospace, industrial and agricultural equipment, and durable goods. During the year ended December 31, 2025, the Company’s five largest customers (each composed of multiple subsidiaries or divisions with semiautonomous purchasing authority) accounted for approximately 11% of consolidated net sales, with its largest customer accounting for approximately 3% of consolidated net sales.

Contract Assets and Liabilities

The Company had no material contract assets recorded on its Consolidated Balance Sheets as of December 31, 2025 and 2024.

The Company had approximately $3.6 million and $4.2 million of deferred revenue as of December 31, 2025 and 2024, respectively. During the years ended December 31, 2025 and 2024, the Company satisfied materially all of the associated performance obligations and recognized into revenue the advance payments received and recorded as of December 31, 2024 and 2023, respectively.

Disaggregated Revenue

The Company sells its industrial process fluids, specialty chemicals and technical expertise as a global product portfolio. The Company generally manages and evaluates its performance by reportable segment first, and then by customer industries. Net sales of each of the Company’s major product lines are generally spread throughout all three of the Company’s segments, and in most cases, approximately proportionate to the level of total sales in each segment.

The following tables present disaggregated information regarding the Company’s net sales, first by major product lines that represent more than 10% of the Company’s consolidated net sales for the years ended December 31, 2025, 2024 and 2023, and followed then by a disaggregation of the Company’s net sales by segment and customer industry for the years ended December 31, 2025, 2024 and 2023.


Major Product Line	2025		2024		2023
Metal removal fluids	19.0	%	22.4	%	23.6	%
Rolling lubricants	18.3	%	20.5	%	19.5	%
Hydraulic fluids	12.2	%	14.2	%	14.1	%
Surface solutions	10.9	%	5.2	%	5.0	%


	Net sales for the year ending December 31, 2025
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	255,281	$	138,908	$	216,354	$	610,543
Metalworking and other	610,051		409,202		258,838		1,278,091
	$	865,332	$	548,110	$	475,192	$	1,888,634


	Net sales for the year ending December 31, 2024
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	258,818	$	135,373	$	207,324	$	601,515
Metalworking and other	623,313		401,062		213,796		1,238,171
	$	882,131	$	536,435	$	421,120	$	1,839,686


	Net sales for the year ending December 31, 2023
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	268,174	$	136,979	$	195,578	$	600,731
Metalworking and other	708,921		434,368		209,293		1,352,582
	$	977,095	$	571,347	$	404,871	$	1,953,313

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

QUAKER CHEMICAL CORP Revenue Disclosure

About Revenue Disclosures

Other Available Disclosures