Escalade (ESCA) Q3 2026 earnings summary

Executive summary

• Q3 net sales fell 3.2% YoY to $65.608m; gross margin rose 123 bps to 29.4%, net income increased to $6.733m, and diluted EPS was $0.48.

• 9M net sales increased 0.8% to $179.095m and net income rose to $20.545m; results included $11.9m of tariff benefits.

Financial highlights

• Q3 operating income was $8.667m versus $7.301m; EBITDA was $9.973m versus $8.588m, including a $1.6m benefit from recovering prior-period tariff costs.

• Q3 SG&A increased to $11.6m from $11.2m, reflecting acquisition-related and professional fees and higher advertising expense.

• Q3 operating cash flow was $14.9m versus $1.0m used; 9M operating cash flow was $29.735m versus $16.118m.

• Cash and equivalents were $24.530m at Sept. 30, 2026.

Outlook and guidance

• New product launches and a full year of contribution from the recent acquisition are expected to support share gains and sales growth in 2027 despite consumer headwinds.

• More frequent holiday promotions with retail partners are intended to engage consumers earlier and support sell-through; inventory levels were described as comfortable.

• Capital expenditure is expected to increase in Q4 and into 2027 to support business investment, capacity and efficiency.

• Cash generated from 2026 and Q1 2027 operations is expected to repay the remaining term loan balance due Jan. 21, 2027.