Escalade Reports Second Quarter 2026 Results
Rhea-AI Summary
Escalade (NASDAQ: ESCA) reported second quarter 2026 net sales of $57.7 million, up 6.2% year over year, driven mainly by archery (including Gold Tip), safety, table tennis and basketball, partially offset by lower outdoor games sales. Gross margin rose 146 basis points to 26.2%.
Operating income increased to $11.9 million from $2.6 million, and net income rose to $9.4 million, or $0.68 diluted EPS, versus $1.8 million, or $0.13, aided by tariff cost recoveries recorded as a separate line item. Excluding the tariff recovery, net income was $2.6 million and EBITDA $4.7 million, up from $3.9 million. Reported EBITDA was $13.2 million.
Escalade generated $8.7 million in operating cash flow in the quarter, down from $13.3 million, mainly due to higher working capital needs. Total debt fell to $14.9 million from $22.0 million a year ago, while cash and equivalents reached $16.4 million, putting the company in a net cash position with $56.7 million of revolver availability. For the first half of 2026, net sales were $113.5 million and net income $13.8 million, or $1.00 diluted EPS, compared with $109.8 million and $4.4 million, respectively, in 2025. The board declared a quarterly dividend of $0.1525 per share, payable October 13, 2026.
Positive
- Net sales up 6.2% to $57.7 million in Q2 2026
- Gross margin expanded 146 bps to 26.2% in Q2 2026
- Operating income rose to $11.9 million from $2.6 million
- Diluted EPS increased to $0.68 from $0.13 year over year
- EBITDA ex‑tariff recovery grew to $4.7 million from $3.9 million
- Total debt reduced to $14.9 million from $22.0 million year over year
- Net cash position with $16.4 million cash exceeding $14.9 million debt
- Dividend increased slightly to $0.1525 per share from $0.1500
Negative
- Operating cash flow fell to $8.7 million from $13.3 million in Q2
- Outdoor games category experienced lower sales year over year
- Selling, administrative and general expenses rose to $12.5 million from $10.2 million
- Current portion of long-term debt increased to $14.9 million from $7.1 million
- Management highlighted ongoing inflation and energy costs as consumer headwinds
News Explained
Reported profit includes a one-time $10.2 million tariff recovery; excluding it, second-quarter EBITDA was $4.7 million.
Escalade has completed its second-quarter reporting, but reported profit includes a one-time, pre-tax
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | First-quarter earnings | Positive | +6.6% | Profitability and cash flow improved while debt declined and the dividend was maintained. |
| Feb 27 | Full-year earnings | Negative | -3.5% | Annual sales declined despite improved margins, acquisitions, lower debt, and a higher dividend. |
| Oct 30 | Third-quarter earnings | Positive | +0.1% | Margin expansion, improved earnings, lower debt, and the Gold Tip acquisition supported results. |
| Aug 01 | Second-quarter earnings | Negative | -4.2% | Sales, net income, and EBITDA declined despite gross-margin improvement and debt reduction. |
| May 05 | First-quarter earnings | Neutral | -3.1% | Lower sales accompanied stronger profitability, debt reduction, share repurchases, and dividend continuity. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings history showed mixed reactions, with three aligned and two divergent outcomes; the average move was -0.8%.
Key Terms
ebitda financial
gaap financial
non-gaap financial measure financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SECOND QUARTER 2026 HIGHLIGHTS
(As compared to the second quarter 2025)
- Net sales increased
6.2% to$57.7 million - Gross margin improved 146 basis points to
26.2% - Operating income of
$11.9 million $2.6 million - Net income of
$9.4 million $0.68 $1.8 million $0.13 - EBITDA of
$13.2 million $3.9 million - Pre-tax income includes tariff recoveries of
$10.2 million - Cash provided by operations of
$8.7 million $13.3 million
For the three months ended June 30, 2026, Escalade posted net sales of
Total net sales increased
Escalade reported second quarter gross margin of
Net income for the second quarter of 2026 was
Earnings before interest, taxes, depreciation, and amortization ("EBITDA") was
During the second quarter of 2026, the Company generated
Total debt at the end of the quarter was
Total cash and equivalents as of June 30, 2026 was
Escalade announced a quarterly dividend of
MANAGEMENT COMMENTARY
"Escalade delivered a solid second quarter, with net sales up
"The gross margin improvement reflected lower fixed costs and a favorable sales mix," continued Griffin. "Reported operating income and EBITDA also included a one-time, pre-tax benefit of approximately
"Looking to the second half of the year, we remain confident in our ability to drive continued top-line growth," Griffin added. "While elevated energy costs and broader inflationary pressures will continue to weigh on consumer spending, we believe our investments in innovation and new products, operating leverage, and disciplined operational execution position us to navigate ongoing macroeconomic headwinds."
"We continued to strengthen our balance sheet during the quarter, reducing total debt to
CONFERENCE CALL
A conference call will be held Thursday, July 30, 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 August 13, 2026:
Domestic Replay: | 1-844-512-2921 |
International Replay: | 1-412-317-6671 |
Conference ID: | 10209663 |
USE OF NON-GAAP FINANCIAL MEASURES
In addition to disclosing financial statements in accordance with
ABOUT ESCALADE
Founded in 1922, and headquartered in Evansville, Indiana, Escalade designs, manufactures, and sells sporting goods, safety, 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) | |||||||
Three Months Ended | Six Months Ended | ||||||
All Amounts in Thousands Except Per Share Data | June 30, | June 30, | June 30, | June 30, | |||
Net Sales | |||||||
Costs and Expenses | |||||||
Cost of products sold | 42,588 | 40,896 | 81,224 | 81,585 | |||
Selling, administrative and general expenses | 12,476 | 10,249 | 23,209 | 20,820 | |||
Amortization | 579 | 567 | 1,160 | 1,134 | |||
Tariff recovery | (9,875) | -- | (9,875) | -- | |||
Operating Income | 11,934 | 2,621 | 17,769 | 6,273 | |||
Other Income (Expense) | |||||||
Interest expense | (176) | (213) | (364) | (457) | |||
Interest income | 426 | -- | 500 | -- | |||
Other income | 18 | 51 | 31 | 82 | |||
Income Before Income Taxes | 12,202 | 2,459 | 17,936 | 5,898 | |||
Provision for Income Taxes | 2,771 | 634 | 4,124 | 1,454 | |||
Net Income | |||||||
Earnings Per Share Data: | |||||||
Basic earnings per share | $ 0.68 | $ 0.13 | $ 1.00 | $ 0.32 | |||
Diluted earnings per share | $ 0.68 | $ 0.13 | $ 1.00 | $ 0.32 | |||
Dividends declared | $ 0.1525 | $ 0.1500 | $ 0.3025 | $ 0.3000 | |||
Consolidated Balance Sheets | |||
(Unaudited) | |||
All Amounts in Thousands Except Share Information | June 30, | December 31, | June 30, |
(Unaudited) | (Audited) | (Unaudited) | |
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | |||
Receivables, less allowance of | 44,612 | 46,315 | 41,926 |
Inventories | 71,184 | 68,474 | 72,672 |
Prepaid expenses | 3,118 | 3,351 | 2,449 |
Prepaid income tax | -- | 557 | 402 |
Other current assets | 9,042 | -- | -- |
TOTAL CURRENT ASSETS | 144,348 | 130,575 | 127,871 |
Property, plant and equipment, net | 22,303 | 22,355 | 21,827 |
Operating lease right-of-use assets | 1,233 | 1,276 | 1,428 |
Intangible assets, net | 24,284 | 25,445 | 24,703 |
Goodwill | 42,326 | 42,326 | 42,326 |
Other assets | 24 | 132 | 184 |
TOTAL ASSETS | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current Liabilities: | |||
Current portion of long-term debt | |||
Trade accounts payable | 15,342 | 9,150 | 14,120 |
Accrued liabilities | 12,536 | 13,680 | 9,086 |
Income tax payable | 1,571 | -- | -- |
Current operating lease liabilities | 625 | 510 | 496 |
TOTAL CURRENT LIABILITIES | 44,955 | 30,483 | 30,845 |
Other Liabilities: | |||
Long‑term debt | -- | 11,309 | 14,881 |
Deferred income tax liability | 6,303 | 6,303 | 3,302 |
Operating lease liabilities | 636 | 798 | 973 |
TOTAL LIABILITIES | 51,894 | 48,893 | 50,001 |
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 – 13,766,074; 13,696,311; and 13,803,745; shares respectively | 2,769 | 3,013 | 3,251 |
Retained earnings | 179,855 | 170,203 | 165,087 |
TOTAL STOCKHOLDERS' EQUITY | 182,624 | 173,216 | 168,338 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Consolidated Statements of Cash Flows | ||||
(Unaudited) | ||||
Six Months Ended | ||||
All Amounts in Thousands | June 30, 2026 | June 30, 2025 | ||
Operating Activities: | ||||
Net income | ||||
Depreciation and amortization | 2,503 | 2,501 | ||
Allowance for credit losses | 376 | 225 | ||
Stock-based compensation | 875 | 962 | ||
Loss on disposal of assets | -- | 3 | ||
Common stock issued in lieu of bonus to officers | 162 | 124 | ||
Director stock compensation | -- | 118 | ||
Changes in assets and liabilities | (2,912) | 8,706 | ||
Net cash provided by operating activities | 14,816 | 17,083 | ||
Investing Activities: | ||||
Purchase of property and equipment | (1,290) | (976) | ||
Net cash used in investing activities | (1,290) | (976) | ||
Financing Activities: | ||||
Proceeds from issuance of long-term debt | 568 | 9,046 | ||
Payments on long-term debt | (4,139) | (12,618) | ||
Cash dividends paid | (4,160) | (4,136) | ||
Purchase of stock | (1,281) | (2,171) | ||
Net cash used in financing activities | (9,012) | (9,879) | ||
Net increase in cash and cash equivalents | 4,514 | 6,228 | ||
Cash and cash equivalents, beginning of period | 11,878 | 4,194 | ||
Cash and cash equivalents, end of period | ||||
Supplemental Cash Flows Information | ||||
Interest paid | ||||
Income taxes paid, net | ||||
Reconciliation of GAAP Net Income to Non-GAAP EBITDA | |||||||
(Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
All Amounts in Thousands | June 30, | June 30, | June 30, | June 30, | |||
Net Income (GAAP) | |||||||
Interest expense | 176 | 213 | 364 | 457 | |||
Interest income | (426) | -- | (500) | -- | |||
Income tax expense | 2,771 | 634 | 4,124 | 1,454 | |||
Depreciation and amortization | 1,256 | 1,262 | 2,503 | 2,501 | |||
EBITDA (Non-GAAP) | |||||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/escalade-reports-second-quarter-2026-results-302838395.html
SOURCE Escalade, Incorporated