Winmark (WINA) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 was $22.63 million, up from $21.51 million in Q3 2024, driven by higher royalties and franchise expansion.

• Net income for Q3 2025 was $11.14 million, nearly flat compared to $11.12 million in Q3 2024; nine-month net income rose to $31.69 million from $30.37 million year-over-year.

• The company operated 1,377 franchises as of September 27, 2025, with 77 more awarded but not yet open and a 99% renewal rate for expiring franchise agreements.

Financial highlights

• Royalties increased 7.2% year-over-year in Q3 2025 to $20.9 million; nine-month royalties rose 5.1% to $57.3 million.

• Leasing income for the nine months was $2.4 million, up from $1.7 million, mainly due to a litigation settlement; leasing income is expected to end after Q4 2025.

• Selling, general, and administrative expenses increased 19% in Q3 and 11% for the nine months, primarily due to higher compensation and non-recurring software license costs.

• Earnings per share (diluted) for Q3 2025 was $3.02, nearly flat year-over-year; nine-month EPS (diluted) was $8.61, up from $8.29.

• Income from operations for Q3 2025 was $14.92 million, nearly unchanged from $14.93 million in Q3 2024.

Outlook and guidance

• Management expects no leasing income after Q4 2025 as the leasing portfolio run-off is substantially complete.

• The company believes its cash, cash flow, and credit facilities are sufficient to fund operations through 2026.

• A $10.00 per share special cash dividend, totaling approximately $35.6 million, was approved for payment in December 2025.

• Forward-looking statements highlight risks and uncertainties regarding future financial performance.