Escalade Reports Fourth Quarter and Full Year 2025 Results

Rhea-AI Summary

Escalade (Nasdaq: ESCA) reported Q4 2025 net sales of $62.6M, down 2.2%, and full-year sales of $240.2M, down 4.5%. Q4 gross margin rose 280 bps to 27.7%; FY gross margin rose 219 bps to 26.9%. Q4 net income was $3.7M ($0.27/sh) and FY net income was $13.7M ($0.99/sh).

The company generated $14.9M cash from operations in Q4, reduced total debt 27.9% to $18.5M, reported net leverage of 0.3x, completed acquisitions (Gold Tip, AllCornhole), and raised the quarterly dividend to $0.1525.

Positive

• Gross margin improvement of 280 bps in Q4 2025
• Full‑year gross margin up 219 bps to 26.9%
• Total debt reduced 27.9% to $18.5M
• Net leverage improved to 0.3x trailing EBITDA
• Completed acquisitions: Gold Tip integration and AllCornhole

Negative

• Net sales declined 2.2% in Q4 2025 and 4.5% for FY 2025
• FY EBITDA decreased 8.4% to $23.9M
• Cash provided by operations fell to $31.0M from $36.0M in 2024

Key Figures

Q4 2025 net sales: $62.6 million Q4 2025 gross margin: 27.7% Q4 2025 net income: $3.7 million ($0.27 diluted EPS) +5 more

8 metrics

Q4 2025 net sales $62.6 million Fourth quarter 2025 vs Q4 2024

Q4 2025 gross margin 27.7% Up 280 basis points year-over-year

Q4 2025 net income $3.7 million ($0.27 diluted EPS) Vs $2.7 million ($0.19) in Q4 2024

Q4 2025 EBITDA $6.5 million Increase of 9.3% vs prior-year quarter

FY 2025 net sales $240.2 million Full year 2025, down 4.5% vs 2024

FY 2025 net income $13.7 million ($0.99 EPS) Vs $13.0 million ($0.93) in 2024

Total debt $18.5 million End of Q4 2025, down 27.9% year-over-year

Quarterly dividend $0.1525 per share Increased dividend approved for April 2026 payment

Market Reality Check

Price: $14.40 Vol: Volume 11,271 is below th...

normal vol

$14.40 Last Close

Volume Volume 11,271 is below the 20-day average of 14,252 (subdued trading ahead of results). normal

Technical Price $14.92 is trading above the 200-day MA of $13.26, indicating a pre-news uptrend.

Peers on Argus

ESCA was up 3.25% pre-release while key peers showed mixed moves (e.g., DOGZ up,...

1 Down

ESCA was up 3.25% pre-release while key peers showed mixed moves (e.g., DOGZ up, JAKK/FNKO/PLBY down slightly), suggesting the setup looked more stock-specific than sector-driven.

Previous Earnings Reports

5 past events · Latest: Oct 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 30	Q3 2025 earnings	Positive	+0.1%	Flat sales but higher margins, strong EBITDA, lower debt, steady dividend.
Aug 01	Q2 2025 earnings	Negative	-4.2%	Double-digit sales decline, lower earnings and EBITDA despite margin improvement.
May 05	Q1 2025 earnings	Positive	-3.1%	Sales down slightly but profitability, cash flow, and leverage all improved.
Feb 26	FY 2024 earnings	Positive	+0.6%	Lower sales but better margins, strong cash flow, debt paydown, buyback plan.
Oct 24	Q3 2024 earnings	Positive	-2.2%	Sales decline but higher income, margin resilience, and significant debt reduction.

Pattern Detected

Earnings releases have produced modest moves with a slight negative average (-1.74%), and reactions have been mixed even when fundamentals improved.

Recent Company History

Over the past year, Escalade’s earnings reports have repeatedly shown a trade-off between softer sales and improving margins and balance sheet strength. Quarterly updates in Q1–Q3 2025 highlighted declining revenue but better profitability, debt reduction, and consistent dividends. The prior Q4 2024 release also emphasized cost actions and cash generation. Today’s Q4 and full-year 2025 results continue that theme with lower sales but higher margins, stronger cash flow, and further deleveraging.

Historical Comparison

-1.7% avg move · Past earnings releases for ESCA generated an average move of -1.74%, often balancing softer sales wi...

earnings

-1.7%

Average Historical Move earnings

Past earnings releases for ESCA generated an average move of -1.74%, often balancing softer sales with better margins and deleveraging. The latest Q4/FY 2025 update fits this pattern of revenue pressure alongside operational and balance sheet improvements.

Across Q1–Q4 2025, Escalade has shown consistent margin gains, reduced debt, and maintained dividends despite year-over-year sales declines, extending the cost-discipline and cash-focus trajectory established in 2024.

Market Pulse Summary

This announcement underscores Escalade’s strategy of trading some revenue growth for stronger profit...

Analysis

This announcement underscores Escalade’s strategy of trading some revenue growth for stronger profitability and a cleaner balance sheet. Q4 2025 net sales declined to $62.6 million, yet gross margin expanded to 27.7% and full-year net income reached $13.7 million. Debt fell to $18.5 million and the dividend increased to $0.1525 per share. Investors may watch future earnings for sustained margin strength, cash generation, and whether sales stabilize across key product categories.

Key Terms

ebitda, non-gaap, basis points, senior secured revolving credit facility

4 terms

ebitda financial

"Earnings before interest, taxes, depreciation, and amortization ("EBITDA") increased 9.3%..."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

non-gaap financial

"this release contains the non-GAAP financial measure known as "EBITDA.""

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

basis points financial

"Gross margin improved 280 basis points, to 27.7%"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

senior secured revolving credit facility financial

"availability on its senior secured revolving credit facility maturing in 2027."

A senior secured revolving credit facility is a multi‑use bank lending line that a company can draw, repay and redraw as needed, backed by specific assets and ranked first in repayment order if the company defaults. Think of it like a collateralized credit card that gives flexible short‑term cash while lenders hold priority to recover their money; investors watch it because it affects a company’s liquidity, borrowing cost, and who gets paid first in financial distress.

AI-generated analysis. Not financial advice.

EVANSVILLE, Ind., Feb. 27, 2026 /PRNewswire/ -- Escalade, Inc. (Nasdaq: ESCA, or the "Company"), a leading manufacturer and distributor of sporting goods and indoor/outdoor recreational equipment, today announced results for the fourth quarter and full year 2025.

FOURTH QUARTER 2025 RESULTS
(As compared to the fourth quarter 2024)

• Net sales decreased 2.2% to $62.6 million
• Gross margin improved 280 basis points, to 27.7%
• Net income of $3.7 million, or $0.27 per diluted share vs. $2.7 million, or $0.19 per diluted share for 2024
• EBITDA totaled $6.5 million, an increase of 9.3%
• Cash provided by operations of $14.9 million vs $12.3 million in 2024
• Total debt decreased 27.9% and net leverage was 0.3x
• Increased quarterly dividend to $0.1525 per share

FULL YEAR 2025 RESULTS
(As compared to full year 2024)

• Net sales decreased 4.5% to $240.2 million
• Gross margin improved 219 basis points, to 26.9%
• Net income of $13.7 million, or $0.99 per diluted share vs. $13.0 million, or $0.93 per diluted share for 2024
• EBITDA totaled $23.9 million, a decrease of 8.4%
• Cash provided by operations of $31.0 million vs. $36.0 million in 2024

For the fourth quarter ended December 31, 2025, Escalade reported net income of $3.7 million, or $0.27 per diluted share, versus net income of $2.7 million, or $0.19 per diluted share for the fourth quarter in 2024. Total net sales declined 2.2% on a year-over-year basis in the fourth quarter, primarily due to uneven consumer demand across the majority of the Company's product categories, partially offset by improved demand in the archery, billiards, and games categories.

Escalade reported fourth quarter gross margin of 27.7%, an increase of 280 basis points versus the prior-year quarter, driven by improved operational efficiencies from lower fixed costs and decreased inventory storage and handling costs.

Earnings before interest, taxes, depreciation, and amortization ("EBITDA") increased 9.3% to $6.5 million in the fourth quarter 2025, versus $5.9 million in the prior-year period. The increase in EBITDA compared to the fourth quarter of 2024 primarily reflects improved gross margins and the impact of the Gold Tip acquisition, partly offset by $0.5 million in non-recurring executive transition expenses.

During the fourth quarter of 2025, the Company generated $14.9 million of cash flow from operations, compared to $12.3 million in the prior-year period. Operating cash flow during the fourth quarter reflected seasonal reductions in inventory associated with the holiday selling season, combined with the Company's efforts to reduce its inventory on hand.

Total debt at the end of the quarter was $18.5 million, down 27.9% from $25.6 million at the end of the fourth quarter of last year.

As of December 31, 2025, the Company had total cash and cash equivalents of $11.9 million, together with $52.9 million of availability on its senior secured revolving credit facility maturing in 2027. At the end of the fourth quarter 2025, net debt (total debt less cash) was 0.3x trailing twelve-month EBITDA, down from 0.8x at the end of the fourth quarter of 2024.

Escalade announced a quarterly dividend of $0.1525 per share to be paid to all shareholders of record on April 6, 2026 and payable April 13, 2026.

MANAGEMENT COMMENTARY

"We concluded 2025 with strong margin performance, driven by disciplined operational execution across the business," said Patrick Griffin, Interim President and CEO of Escalade. "Fourth‑quarter margins reflect the cost structure improvements implemented over the last year. Importantly, demand across our higher‑value, premium brands remains resilient, and our diversified product portfolio continues to position us well to navigate an uncertain consumer environment."

Griffin continued, "As we enter 2026, we are shifting our focus to drive growth while maintaining the operational discipline that delivered our strong performance in 2025. During the fourth quarter we completed the acquisition of AllCornhole, further expanding our presence in a premium, fast‑growing category, and we acquired a 110,000 square foot facility to support growth in our safety and fitness categories. In addition, we completed the integration of the Gold Tip Archery acquisition, which closed in the third quarter and was immediately accretive during the fourth quarter."

"Our shift to focus on growth is supported by a strong balance sheet and a continued focus on capital efficiency," Griffin added. "In the fourth quarter, we improved our cash flow 21.2% and reduced our total debt by 27.9%, resulting in net leverage of 0.3x. Reflecting the confidence we have in the long‑term cash‑generation profile of the business, our Board has approved an increase in our quarterly dividend to $0.1525 per share. Looking ahead, we remain focused on driving working capital efficiencies and we intend to deploy our strong free cash flow toward organic growth investments, strategic M&A, continued debt reduction, and a disciplined return of capital to shareholders."

CONFERENCE CALL

A conference call will be held Friday, February 27, 2026, at 11:00 a.m. ET to review the Company's financial results, discuss recent events and conduct a question-and-answer session.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of Escalade's website at www.escaladeinc.com.  To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference:

Domestic Live:	1-833-890-3250
International Live:	1-412-206-6441

To listen to a replay of the teleconference, which subsequently will be available through March 13, 2026:

Domestic Replay:	1-844-512-2921
International Replay:	1-412-317-6671
Conference ID:	10206528

USE OF NON-GAAP FINANCIAL MEASURES

In addition to disclosing financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"), this release contains the non-GAAP financial measure known as "EBITDA." A reconciliation of this non-GAAP financial measure is contained at the end of this press release. EBITDA is a non-GAAP financial measure that Escalade uses to facilitate comparisons of operating performance across periods. Escalade believes the disclosure of EBITDA provides useful information to investors regarding its financial condition and results of operations. Non-GAAP measures should be viewed as a supplement to and not a substitute for the Company's U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated. Non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or in lieu of an analysis of the Company's results as reported under U.S. GAAP and should be evaluated only on a supplementary basis.

ABOUT ESCALADE

Founded in 1922, and headquartered in Evansville, Indiana, Escalade designs, manufactures, and sells sporting goods, fitness, and indoor/outdoor recreation equipment. Our mission is to connect family and friends, create lasting memories, and play life to the fullest. Leaders in our respective categories, Escalade's distinct and acclaimed brands include Goalrilla™ in-ground basketball hoops; STIGA® tennis tables and accessories; Bear® Archery and archery equipment; Brunswick Billiards® tables and accessories; Accudart® darting; ONIX® pickleball; Lifeline® fitness products; and RAVE Sports® water recreation products. Escalade's products are available online and through leading retailers nationwide. For more information about Escalade's diverse and prominent brand portfolio, history, financials, and governance, please visit www.escaladeinc.com.

INVESTOR RELATIONS CONTACT

Wesley Smith
Vice President, Financial Reporting & Investor Relations
812-467-1334

FORWARD-LOOKING STATEMENTS 

This report contains statements that we believe are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 3b-6 promulgated thereunder. All statements, other than statements of historical fact, are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as "will likely result," "may," "are expected to," "is anticipated," "potential," "estimate," "forecast," "projected," "intends to," or may include other similar words or phrases such as "believes," "plans," "trend," "objective," "continue," "remain," or similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties. These risks include, but are not limited to: Escalade's ability to achieve its business objectives; Escalade's plans and expectations surrounding the transition to its new Chief Executive Officer and all potential related effects and consequences; Escalade's ability to successfully implement actions to lessen the potential impacts of tariffs, a potential trade war with China and other trade restrictions applicable to our products and raw materials, including impacts on the costs of producing our goods, importing products and materials into our markets for sale, and on the pricing of our products; our international operations, including any related to political uncertainty and geopolitical tensions; Escalade's ability to successfully achieve the anticipated results of strategic transactions, including the integration of the operations of acquired assets and businesses and of divestitures or discontinuances of certain operations, assets, brands, and products; the continuation and development of key customer, supplier, licensing and other business relationships; Escalade's ability to protect its intellectual property; Escalade's ability to develop and implement our own direct to consumer e-commerce distribution channel; the impact of competitive products and pricing; product demand and market acceptance; new product development; Escalade's ability to successfully negotiate the shifting retail environment and changes in consumer buying habits; the financial health of our customers; disruptions or delays in our business operations, including without limitation disruptions or delays in our supply chain, arising from political unrest, war, terrorist attacks, labor strikes, natural disasters, public health crises such as the coronavirus pandemic, and other events and circumstances beyond our control; the evaluation and implementation of remediation efforts designed and implemented to enhance the Company's control environment; the potential identification of one or more additional material weaknesses in the Company's internal control of which the Company is not currently aware or that have not yet been detected; Escalade's ability to control costs, including managing inventory levels; general economic conditions, including inflationary pressures; fluctuation in operating results; changes in foreign currency exchange rates; changes in the securities markets; continued listing of the Company's common stock on the NASDAQ Global Market; the Company's inclusion or exclusion from certain market indices; Escalade's ability to obtain financing, to maintain compliance with the terms of such financing and to manage debt levels; the availability, integration and effective operation of information systems and other technology, and the potential interruption of such systems or technology; the potential impact of actual or perceived defects in, or safety of, our products, including any impact of product recalls or legal or regulatory claims, proceedings or investigations involving our products; risks related to data security of privacy breaches; the potential impact of regulatory claims, proceedings or investigations involving our products; Escalade's use of estimates in its financial reporting as well as in its forward looking statements; and other risks detailed from time to time in Escalade's filings with the Securities and Exchange Commission. Escalade's future financial performance could differ materially from the expectations of management contained herein. Escalade undertakes no obligation to release revisions to these forward-looking statements after the date of this report.

Escalade, Incorporated and Subsidiaries Consolidated Statements of Operations (Unaudited, In Thousands Except Per Share Data)
	Fourth Quarter Ended				Four Quarters Ended
All Amounts in Thousands Except Per Share Data	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Net sales	$62,560		$63,942		$240,158		$251,510
Costs and Expenses
Cost of products sold	45,208		47,994		175,513		189,306
Selling, administrative and general expenses	11,608		10,864		43,626		43,303
Amortization	591		571		2,292		2,802
Gain on sale of assets held for sale	--		--		--		(3,905)
Operating Income	5,153		4,513		18,727		20,004
Other Income (Expense)
Interest expense	(175)		(307)		(836)		(2,302)
Other income (expense)	28		61		131		74
Income Before Income Taxes	5,006		4,267		18,022		17,776
Provision for Income Taxes	1,303		1,567		4,321		4,790
Net Income	$3,703		$2,700		$13,701		$12,986
Earnings Per Share Data:
Basic earnings per share	$ 0.27		$ 0.20		$ 1.00		$ 0.94
Diluted earnings per share	$ 0.27		$ 0.19		$ 0.99		$ 0.93
Dividends declared	$ 0.15		$ 0.15		$ 0.60		$ 0.60

 

Consolidated Balance Sheets (Unaudited, In Thousands)
All Amounts in Thousands Except Share Information		December 31, 2025		December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents		$11,878		$ 4,194
Receivables, less allowance for credit losses of $1,226 and $694; respectively		46,315		48,768
Inventories		68,474		76,025
Prepaid expenses		3,351		4,372
Prepaid income tax		557		465
TOTAL CURRENT ASSETS		130,575		133,824
Property, plant and equipment, net		22,355		22,221
Operating lease right-of-use assets		1,276		1,186
Intangible assets, net		25,445		25,838
Goodwill		42,326		42,326
Other assets		132		935
TOTAL ASSETS		$222,109		$226,330
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt		$  7,143		$  7,143
Trade accounts payable		9,150		11,858
Accrued liabilities		13,680		15,050
Current operating lease liabilities		510		444
TOTAL CURRENT LIABILITIES		30,483		34,495
Long-term debt		11,309		18,452
Deferred income tax liability, net		6,303		3,302
Operating lease liabilities		798		787
Other liabilities		--		297
TOTAL LIABILITIES		48,893		57,333
Commitments and contingencies		--		--
Stockholders' equity:
Preferred stock
Authorized:  1,000,000 shares, no par value, none issued		--		--
Common stock
Authorized:  30,000,000 shares, no par value
Issued and outstanding: 2025 —13,696,311 shares, 2024 —13,732,719 shares		3,013		4,218
Retained earnings		170,203		164,779
TOTAL STOCKHOLDERS' EQUITY		173,216		168,997
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$222,109		$226,330

 

Consolidated Statements of Cash Flows (Unaudited, In Thousands)
		Years Ended
All Amounts in Thousands		December 31, 2025		December 31, 2024
Operating Activities:
Net Income		$   13,701		$   12,986
Reconciling adjustments:
Depreciation and amortization		5,063		6,041
Allowance for credit losses		983		747
Stock option and restricted stock unit expense		1,651		1,932
Issuance of common stock for service		242		--
Deferred income taxes		3,001		177
Loss (gain) on disposals of assets		7		(3,651)
Changes in
Accounts receivable		1,469		470
Inventories		7,551		16,437
Prepaids and other assets		1,732		(1,724)
Accounts payable and accrued expenses		(4,386)		2,634
Net cash provided by operating activities		31,014		36,049
Investing Activities:
Purchase of property and equipment		(2,512)		(2,038)
Acquisitions		(2,300)		--
Proceeds from sale of property and equipment		--		5,967
Net cash (used in) provided by investing activities		(4,812)		3,929
Financing Activities:
Dividends paid		(8,277)		(8,306)
Proceeds from issuance of long-term debt		26,208		114,785
Payments on long-term debt		(33,351)		(140,085)
Purchase of stock		(3,098)		(2,194)
Net cash used in financing activities		(18,518)		(35,800)
Increase in Cash and Cash Equivalents		7,684		4,178
Cash and Cash Equivalents, beginning of year		4,194		16
Cash and Cash Equivalents, end of year		$11,878		$4,194
Supplemental Cash Flows Information
Interest paid		$  812		$  2,231
Income taxes paid, net		$  1,708		$  4,989

 

Reconciliation of GAAP Net Income to Non-GAAP EBITDA (Unaudited, In Thousands)
	Fourth Quarter Ended				Four Quarters Ended
All Amounts in Thousands	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Net Income (GAAP)	$3,703		$2,700		$13,701		$12,986
Interest expense	175		307		836		2,302
Income tax expense	1,303		1,567		4,321		4,790
Depreciation and amortization	1,296		1,350		5,063		6,041
EBITDA (Non-GAAP)	$6,477		$5,924		$23,921		$26,119

 

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SOURCE Escalade, Incorporated

FAQ

What were Escalade (ESCA) fourth-quarter 2025 results and EPS?

Escalade reported Q4 2025 net income of $3.7M, or $0.27 per diluted share. According to the company, net sales were $62.6M, down 2.2% year-over-year, driven by uneven consumer demand across categories.

How did Escalade (ESCA) full-year 2025 revenue and margins perform?

For full-year 2025, Escalade recorded $240.2M in net sales, a 4.5% decline, with gross margin improving to 26.9%. According to the company, margin gains reflected operational efficiencies and lower inventory costs.

What balance sheet and liquidity changes did Escalade (ESCA) report in Q4 2025?

At year-end, Escalade had $11.9M cash and $52.9M revolver availability, with total debt of $18.5M. According to the company, total debt fell 27.9%, producing net leverage of 0.3x.

What corporate actions did Escalade (ESCA) complete in Q4 2025 and how might they affect growth?

Escalade completed the integration of Gold Tip and acquired AllCornhole plus a 110,000 sq ft facility. According to the company, these moves expand premium categories and support operational scale.

Did Escalade (ESCA) change its dividend in 2026 following Q4 2025 results?

Yes. Escalade increased its quarterly dividend to $0.1525 per share, payable April 13, 2026. According to the company, the board approved the raise reflecting confidence in long-term cash generation.