Escalade, Inc. reported fourth‑quarter and full‑year 2025 financial results on February 27, 2026. Net income for the quarter was $3.7 million, or $0.27 per diluted share, while full‑year net income reached $13.7 million, or $0.99 per diluted share. Net sales fell 2.2% year‑over‑year to $62.6 million, but the company’s gross margin expanded to 27.7%, a 280‑basis‑point increase driven by lower fixed costs and reduced inventory‑handling expenses.
Operating cash flow rose 21.2% to $14.9 million, and total debt was cut 27.9% to $18.5 million, leaving net leverage at 0.3× trailing‑12‑month EBITDA. The company declared a quarterly dividend of $0.1525 per share, payable April 13, 2026, with a record date of April 6, 2026.
Earnings per share of $0.27 fell short of the consensus estimate of $0.28, a miss of $0.01, while revenue of $62.6 million beat analyst expectations of $61.38 million and $58.70 million. The revenue beat was supported by resilient demand for the company’s premium brands, even as uneven consumer demand across most product categories weighed on overall sales.
Management highlighted the immediate accretion from the Gold Tip Archery acquisition and noted that the fourth‑quarter results were “sustained” amid a softer holiday season. “We concluded 2025 with strong margin performance, driven by disciplined operational execution across the business,” said Interim President and CEO Patrick Griffin. “Fourth‑quarter margins reflect the cost structure improvements implemented over the last year.”
The company’s margin expansion and debt reduction underscore a disciplined operational transformation. Lower fixed costs and inventory‑handling efficiencies have lifted gross margin, while the reduction in debt has improved leverage and freed cash flow for dividends and future growth initiatives. These developments suggest that Escalade is positioning itself for profitable, market‑share‑driven growth in a challenging consumer environment.
The results also highlight the company’s focus on maintaining profitability while navigating headwinds such as softer consumer demand and tariff uncertainties. Management emphasized that demand for higher‑value, premium brands remains resilient and that the company will continue to deploy free cash flow toward organic growth, strategic acquisitions, and disciplined capital allocation.
Overall, Escalade’s Q4 and full‑year 2025 results demonstrate a company that is successfully executing on cost discipline, margin expansion, and debt reduction while maintaining a strong cash‑flow profile, positioning it for continued resilience in a soft consumer environment.
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