Crocs (CROX) investor relations material

Executive summary

• Q3 revenue rose 4.6% to $1,042.6M, with Crocs Brand up 4.4% and HEYDUDE up 6.1%; FY26 revenue growth guidance increased to ~3%.

• Crocs Brand posted record Q3 revenue, while HEYDUDE returned to growth; adjusted operating margin expanded 150 bps to 22.3%.

Financial highlights

• Q3 GAAP net income was $216.8M versus $145.8M, and diluted EPS was $4.52 versus $2.70; results included a non-recurring $67M IEEPA tariff refund, including interest.

• Adjusted operating income was $232M, up 12%; adjusted diluted EPS was $3.69, up 26% and above prior guidance of $3.20–$3.30.

• Reported gross margin expanded 770 bps to 66.2%; adjusted gross margin was 60.3%, up 180 bps.

• Free cash flow was $275.5M versus $226.2M; operating cash flow was $290.4M and capital expenditures were $14.9M.

• 9M revenue rose 2.0% to $3.144B; net income was $559.2M versus a $186.4M net loss in 9M 2025, which included prior-year impairments.

Outlook and guidance

• FY26 revenue growth guidance increased to ~3%, with Crocs Brand expected to grow ~4% and HEYDUDE approximately flat, at currency rates as of October 26, 2026.

• FY26 adjusted diluted EPS guidance rose to $14.45–$14.65; adjusted operating margin is expected to expand modestly from 22.5%, excluding a ~$40M non-GAAP net benefit.

• Q4 revenue is expected to rise 7%–9%; Crocs Brand 6%–8% and HEYDUDE 10%–12%, with adjusted operating margin ~20.5% and adjusted diluted EPS $3.25–$3.45.

• FY26 adjusted gross margin is expected to increase slightly; Q4 adjusted gross margin is expected to rise ~200 bps YoY.

• FY26 capex is forecast at $70M–$80M; management expects Crocs Brand to grow in 2027 at roughly FY26’s rate and HEYDUDE’s normalized near-term growth to be low- to mid-single digits.