Crocs (CROX) Q4 2025 earnings summary

Executive summary

• Ended 2025 with revenue exceeding $4 billion, driven by strong international growth for the Crocs brand and strategic actions to strengthen both Crocs and HEYDUDE brands.

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

• Direct-to-consumer (DTC) accounted for over half of revenue and grew faster than wholesale.

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

• Returned $577 million to shareholders via buybacks and paid down $128 million in debt.

Financial highlights

• Full-year 2025 revenue: $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; Crocs brand at 61.3%, HEYDUDE at 44.8%.

• Adjusted operating margin for 2025 was 22.3%, down 330 bps; adjusted EPS $12.51, down 5%.

• Free cash flow for 2025 was $659 million; ended year with $130 million cash and $900 million revolver capacity.

• Q4 2025 revenue: $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% (10% international growth, North America down), HEYDUDE down 7%-9%.

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

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

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

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