Winmark (WINA) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 was $22.0 million, up from $20.4 million in Q2 2025, driven by higher royalties and additional franchise stores.

• Net income for Q2 2026 was $10.4 million ($2.81 per diluted share), down from $10.6 million ($2.89 per diluted share) in Q2 2025.

• The company completed the run-off of its leasing portfolio by the end of 2025 and now operates solely as a franchisor.

• All 50 franchise agreements up for renewal in the first half of 2026 were renewed, maintaining a 100% renewal rate.

• Investments were made in technology, innovation, and the Plato's Closet Ad Fund launch.

Financial highlights

• Royalties increased 7.8% year-over-year in Q2 2026 to $20.1 million.

• Selling, general, and administrative expenses rose 13.9% to $7.5 million in Q2 2026, mainly due to higher compensation and technology investments.

• Cost of merchandise sold remained stable at $0.8 million for Q2 2026.

• Income from operations for Q2 2026 was $13.6 million, up from $13.1 million in Q2 2025.

• Cash, cash equivalents, and restricted cash totaled $26.0 million at quarter-end, up from $10.3 million at December 27, 2025.

Outlook and guidance

• Management expects to fund planned operations through 2027 with current cash, cash flow, and available credit.

• Continued investments are planned in technology and innovation initiatives across the franchise network.

• The company is focused on supporting franchise growth, controlling expenses, and maintaining strong renewal rates.

• Forward-looking statements caution about risks and uncertainties that could impact future results.