Crocs (CROX) Q4 2025 earnings summary

Executive summary

• Ended 2025 with revenue exceeding $4 billion, driven by strong holiday sales, new products, and double-digit international growth for the Crocs brand.

• Operating cash flow reached approximately $700 million, supporting $577 million in share repurchases and $128 million in debt repayment.

• Direct-to-consumer (DTC) channel surpassed half of total revenue and outpaced wholesale growth.

• Identified $100 million in cost savings for 2026 to drive efficiency and support continued brand investment.

• Returned $577 million to shareholders via buybacks and repurchased 10% of shares outstanding.

Financial highlights

• 2025 consolidated revenue was $4,041 million, down 1.5%-2% year-over-year; Crocs brand up 1%-1.5%, HEYDUDE down 13.3%-14%.

• Adjusted gross margin for 2025 was 58.3%, down 50 bps; adjusted operating margin was 22.3%, down 330 bps.

• Adjusted diluted EPS for 2025 was $12.51, down 5% year-over-year.

• Free cash flow for 2025 was $659 million.

• Q4 2025 revenue was $958 million; adjusted operating margin 16.8%.

Outlook and guidance

• 2026 enterprise revenue expected to be flat to down 1%; Crocs brand flat to up 2%, HEYDUDE down 9% to 7%.

• Adjusted operating margin for 2026 expected to expand modestly from 22.3%; adjusted diluted EPS guidance: $12.88-$13.35.

• Adjusted gross margin to be up slightly despite $80 million tariff headwind.

• Capital expenditures for 2026 projected at $70-$80 million.

• Q1 2026 revenue expected down 3.5%-5.5%; Crocs brand down low single digits, HEYDUDE down 15%-18%.