Winmark (WINA) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $20.4M, up from $20.1M in Q2 2024, driven by higher royalties and franchise expansion.

• Net income for Q2 2025 was $10.6M ($2.89/share diluted), up from $10.4M ($2.85/share) in Q2 2024; six-month net income was $20.6M ($5.60/share), up from $19.3M ($5.26/share) year-over-year.

• Franchising remains the core business, with 1,371 stores at quarter-end and a 98% franchise renewal rate; 77 new franchises awarded but not yet open.

• Franchise sales performance increased across all brands during the quarter.

Financial highlights

• Royalties increased 5% year-over-year to $18.7M in Q2 2025; six-month royalties rose 4% to $36.4M.

• Leasing income for Q2 2025 dropped to $46.6K from $524.4K in Q2 2024; six-month leasing income rose to $2.4M due to a litigation settlement.

• Merchandise sales for Q2 2025 were $0.8M, down from $0.9M year-over-year; cost of merchandise sold also decreased.

• Operating income for Q2 2025 was $13.1M, nearly flat year-over-year; six-month operating income was $26.7M, up from $25.2M.

• Diluted EPS for Q2 2025 was $2.89, up from $2.85 in Q2 2024; six-month diluted EPS was $5.60, up from $5.26.

Outlook and guidance

• Management expects lower leasing income for the remainder of 2025 as the leasing portfolio run-off is nearly complete.

• Cash on hand, operating cash flow, and available credit are expected to fund operations through 2026.

• Continued investments in operations, technology, marketing, and innovation to strengthen industry leadership.

• Management highlights a dynamic period for the resale industry and ongoing commitment to growth.