Tandy Leather Factory Reports First Quarter 2026 Results

Tandy Leather Factory (Nasdaq: TLF) reported first quarter 2026 revenue of $19.7 million, up 3.2% year over year.

Rhea-AI Summary

Tandy Leather Factory (Nasdaq: TLF) reported first quarter 2026 revenue of $19.7 million, up 3.2% year over year. Gross margin rose to 61.0% from 56.3%, and operating income was $0.4 million versus $0.3 million in 2025.

Net income was $0.2 million, compared with $11.6 million a year earlier, when results included the headquarters sale. The company paid a $0.75 per share special dividend (about $6.1 million) and ended the quarter with $10.1 million in cash and cash equivalents.

Positive

• Revenue increased 3.2% year over year to $19.7 million
• Gross margin expanded to 61.0% from 56.3% in 2025
• Operating income grew to $0.4 million from $0.3 million
• EBITDA from operations totaled $0.7 million in Q1 2026
• Paid a special dividend of $0.75 per share, about $6.1 million
• Ended Q1 2026 with $10.1 million in cash and equivalents

Negative

• Operating expenses rose 11.2% year over year to $11.6 million
• Cash and equivalents declined to $10.1 million from $16.1 million a year earlier
• Net income decreased to $0.2 million from $11.6 million in 2025
• Higher occupancy costs, including rent for headquarters and flagship store

Argus May 12 session

-0.42% close to close Open Argus

Details

News Market Reaction – TLF

On May 12, the first trading day after this news, TLF closed 0.42% below the previous close.

Data tracked by StockTitan Argus for the May 12 session.

Key Figures

Q1 2026 revenue: $19.7M Revenue growth: 3.2% Gross margin: 61.0% +5 more

Q1 2026 revenue

$19.7M

First quarter 2026 revenues, up from $19.0M in 2025

Revenue growth

3.2%

Year-over-year increase in Q1 2026 revenues

Gross margin

61.0%

Q1 2026 gross margin, up from 56.3% in 2025

Operating income

$0.4M

Q1 2026 operating income vs $0.3M in 2025

Net income

$0.2M

Q1 2026 net income vs $11.6M in 2025 (HQ sale impact)

EBITDA

$0.7M

Q1 2026 EBITDA from operations

Cash balance

$10.1M

Cash and cash equivalents at March 31, 2026

Special dividend

$0.75 per share (~$6.1M)

Substantial dividend paid in Q1 2026

Previous Earnings Reports

5 past events · Latest: Feb 24

Same Type 5 events

1. Feb 24

   FY 2025 earnings

   24h Move

   -23.4%

   Full-year 2025 revenue growth, large HQ-sale gain, higher net income.

2. Nov 10

   Q3 2025 earnings

   24h Move

   -0.0%

   Flat revenue with net loss, higher operating loss and costs.

3. Aug 11

   Q2 2025 earnings

   24h Move

   -1.7%

   Revenue growth but net loss and rising operating expenses.

4. May 12

   Q1 2025 earnings

   24h Move

   +0.0%

   Revenue decline, lower net income, higher expenses, HQ sale disclosure.

5. Feb 26

   FY 2024 earnings

   24h Move

   +0.9%

   Declining 2024 results but HQ sale and special dividend announced.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, stock-based compensation, forward-looking statements

3 terms

ebitda financial

"EBITDA from operations of 0.7 million"

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.

View in glossary

stock-based compensation financial

"Stock-based compensation | | 0.1"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

View in glossary

forward-looking statements regulatory

"These forward-looking statements are made only as of the date hereof"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

BENBROOK, Texas, May 11, 2026 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the first fiscal quarter of 2026.

Highlights from first quarter 2026:

• Revenues were $19.7 million, up 3.2% from 2025
• Generated operating income of $0.4 million versus $0.3 million in 2025
• Net income of $0.2 million versus $11.6 million in 2025 (from sale of headquarters)
• Gross margins of 61.0%, up from 56.3% in 2025
• Operating expenses $11.6 million, up 11.2% from 2025
• EBITDA from operations of 0.7 million
• Ended quarter with $10.1 million of cash and cash equivalents
  

Tandy Leather Factory’s first quarter sales were $19.7 million in 2026, up from $19.0 million in 2025. First quarter 2026 gross profit was $12.0 million, up from $10.7 million in 2025. As of March 31, 2026, the Company held $10.1 million of cash and cash equivalents, down from $16.1 million a year earlier; this decrease reflects the payment of a special dividend to stockholders in the first quarter of approximately $6.1 million, ongoing payment of income taxes related to the Company’s sale of its headquarters facilities in 2025, and other expenses relating to the Company moving its headquarters in the third quarter of 2025. The Company held inventory of $33.7 million, up from $33.2 million as of December 31, 2025. The Company had basic and diluted net income in the quarter of $0.03 per share, versus $1.36 basic and $1.35 diluted net income per share in the prior year, when the Company completed its headquarters sale.

Johan Hedberg, Chief Executive Officer of the Company, said, “We are happy to have delivered another growth quarter with increases in sales and operating income from the year-ago quarter and with our ability to pay another substantial dividend ($0.75 per share) to our stockholders.  We were also able to increase our gross margins, primarily driven by pricing changes.  Although our operating expenses rose from a year ago, driven by compensation, investments in Operations and technology and occupancy costs (including increased rent for now renting our headquarters facility and Fort Worth flagship store), our increased sales and margins were able to offset that and deliver more profit from operations.”

Investors are encouraged to send their questions to the Company’s investor relations hotline at investorrelations@tandyleather.com.

		Quarter ended March 31, 2026
Net income		$	0.2
Add back:
Depreciation and amortization			0.3
Interest income			(0.1	)
Income tax provision			0.2
Stock-based compensation			0.1
EBITDA		$	0.7

Tandy Leather Factory, Inc., (http://www.tandyleather.com), headquartered in Fort Worth, Texas, is a specialty retailer of a broad product line, including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. The Company distributes its products through its 100 stores located in 40 US states and six Canadian provinces, including one store located in Spain.  Its common stock trades on the Nasdaq Capital Market under the symbol “TLF”. To be included on Tandy Leather Factory’s email distribution list, go to: http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0. 

Contact: Johan Hedberg, Tandy Leather Factory, Inc., (817) 872-3200 or johan.hedberg@tandyleather.com 

This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and resultant price fluctuations; change in customer preferences for our product, and other factors disclosed in our filings with the Securities and Exchange Commission.  These forward-looking statements are made only as of the date hereof, and except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Tandy Leather Factory (NASDAQ: TLF) Q1 2026 earnings?

Tandy Leather Factory reported Q1 2026 net income of $0.2 million. According to Tandy Leather Factory, revenue reached $19.7 million, gross margin was 61.0%, operating income was $0.4 million, and EBITDA from operations totaled $0.7 million.

Why did Tandy Leather Factory Q1 2026 net income fall versus 2025?

Tandy Leather Factory Q1 2026 net income was $0.2 million, down from $11.6 million in 2025. According to Tandy Leather Factory, the prior-year quarter included gains from the sale of its headquarters facilities, which did not recur in 2026 results.

How did Tandy Leather Factory revenue and margins change in Q1 2026?

Tandy Leather Factory Q1 2026 revenue rose to $19.7 million, a 3.2% increase year over year. According to Tandy Leather Factory, gross margin improved to 61.0% from 56.3% in 2025, with management attributing margin gains primarily to pricing changes.

What special dividend did Tandy Leather Factory (TLF) pay in Q1 2026?

Tandy Leather Factory paid a $0.75 per share special dividend in Q1 2026. According to Tandy Leather Factory, this dividend totaled approximately $6.1 million and contributed to the reduction of cash and cash equivalents during the quarter.

What was Tandy Leather Factory cash position at March 31, 2026?

Tandy Leather Factory ended March 31, 2026 with $10.1 million in cash and cash equivalents. According to Tandy Leather Factory, cash declined from $16.1 million a year earlier due to the special dividend, tax payments on the headquarters sale, and move-related expenses.

How did operating expenses affect Tandy Leather Factory Q1 2026 results?

Tandy Leather Factory Q1 2026 operating expenses were $11.6 million, up 11.2% from 2025. According to Tandy Leather Factory, higher costs reflected compensation, investments in operations and technology, and increased occupancy expenses, including rent for its headquarters facility and Fort Worth flagship store.

What is Tandy Leather Factory EBITDA from operations for Q1 2026?

Tandy Leather Factory reported Q1 2026 EBITDA from operations of $0.7 million. According to Tandy Leather Factory, this figure adds back depreciation, amortization, income taxes, interest income adjustment, and stock-based compensation to net income of $0.2 million for the quarter.