Tandy Leather Factory (TLF) Q4 2025 earnings summary

Executive summary

• Revenues grew 2.6% year-over-year to $76.3 million for 2025, with fourth quarter sales up to $22.2 million from $20.5 million.

• Net income surged to $9.1 million from $0.8 million in 2024, aided by the sale of the corporate headquarters.

• Gross margin improved to 57.0% for the year, up from 56.2% in 2024.

Financial highlights

• Operating loss of $1.0 million in 2025, compared to operating income of $0.6 million in 2024.

• Adjusted EBITDA from operations was $0.6 million for 2025.

• Operating expenses rose 8.1% to $44.5 million, reflecting increased costs from renting new facilities and employee bonuses.

• Inventory decreased to $33.2 million from $35.6 million year-over-year.

• Cash and cash equivalents increased to $16.1 million, up from $13.3 million, after the HQ sale and special dividend payment.

Outlook and guidance

• Management expects to focus on continued sales growth and a return to operating profitability in 2026.