SharkNinja (SN) Q1 2025 earnings summary

Executive summary

• Achieved eighth consecutive quarter of double-digit revenue growth, with Q1 net sales up 14.7% year over year to $1,222.6 million, reflecting strong market share gains and demand for new products across all four major categories.

• Adjusted EBITDA decreased 13.1% to $200.4 million, or 16.4% of net sales, due to strategic investments and tariff headwinds.

• Adjusted net income was $124 million ($0.87 per diluted share), down from $149 million ($1.06 per share) year over year.

• Company raised its fiscal 2025 outlook for net sales, adjusted net income per share, and adjusted EBITDA, reflecting confidence in continued growth.

• Proactive supply chain diversification and tariff mitigation strategies have offset much of the impact from recent tariff increases.

Financial highlights

• Q1 net sales increased 14.7% year over year to $1,222.6 million.

• Adjusted gross profit rose 13.2% to $613.4 million, with gross margin at 50.2%, down 60 bps year over year due to tariffs and product mix.

• Operating income decreased 6.5% to $144.9 million; adjusted operating income dropped 14.4% to $173.0 million.

• Cash and cash equivalents totaled $225 million, up 70% year over year; net leverage ratio at 0.6x.

• Total debt was $769.5 million as of March 31, 2025.

Outlook and guidance

• 2025 net sales expected to increase 11%-13%, above prior guidance.

• Adjusted net income per diluted share forecast at $4.90-$5.00, up from previous $4.80-$4.90.

• Adjusted EBITDA guidance raised to $1.09-$1.11 billion, representing 15%-17% growth.

• Capital expenditures reaffirmed at $180-$200 million, likely at the higher end.

• GAAP effective tax rate expected at 24%-25%.