Tandy Leather Factory Reports Second Quarter 2026 Results
Rhea-AI Summary
Tandy Leather Factory (Nasdaq: TLF) reported second quarter 2026 revenues of $18.0 million, up 1.5% from $17.8 million in 2025. Gross profit rose to $11.7 million, with gross margin improving to 64.8% from 59.5%.
Operating income was $0.5 million, up 722.9% year over year, and net income was $0.4 million, versus a net loss of ($0.2) million in 2025, or $0.05 basic and diluted earnings per share. EBITDA from operations reached $0.9 million.
Cash and cash equivalents totaled $6.4 million at June 30, 2026, down from $16.1 million at December 31, 2025, reflecting $6.0 million in dividends paid in Q1 2026 and about $4.0 million used for higher inventory purchases, a new POS system, and store investments including a new Waco, Texas location.
Positive
- Revenue up 1.5% year over year to $18.0 million
- Gross profit increased to $11.7 million with 64.8% margin vs. 59.5%
- Operating income reached $0.5 million, up 722.9% from 2025
- Net income improved to $0.4 million vs. ($0.2) million loss
- EPS swung to profit at $0.05 basic and diluted
- EBITDA from operations totaled $0.9 million in Q2 2026
Negative
- Cash and equivalents declined to $6.4 million from $16.1 million
- Operating expenses rose due to higher compensation, POS, loyalty program, and occupancy costs
- Approximately $4.0 million used for inventory and capital investments in Q1–Q2 2026
Market reaction after 2Q26 earnings report: TLF +5.49%
Following this news, TLF has gained 5.49%, reflecting a notable positive market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $2.55.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 11 | 1Q26 earnings report | Positive | -0.4% | Revenue and gross-margin gains accompanied improved operating income but cash declined after dividend and investments. |
| Feb 24 | FY25 earnings report | Neutral | -23.4% | Headline net income benefited from headquarters sale while operating loss and expenses weighed on results. |
| Nov 10 | 3Q25 earnings report | Negative | -0.0% | Net and operating losses worsened despite higher gross margin and cash from prior asset sale. |
| Aug 11 | 2Q25 earnings report | Neutral | -1.7% | Revenue and margin improved, but net loss and higher expenses created mixed results. |
| May 12 | 1Q25 earnings report | Negative | +0.0% | Revenue, operating income, and margins declined amid relocation costs and expected tariff pressure. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The tag-matched earnings context reports an average 24-hour reaction of -5.13%.
Key Terms
ebitda financial
gross margin financial
pos system technical
forward-looking statements regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
BENBROOK, Texas, Aug. 11, 2026 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the second fiscal quarter of 2026.
Highlights from second quarter 2026:
- Revenues were
$18.0 million , up1.5% from 2025 - Generated operating income of
$0.5 million up722.9% from 2025 - Net income of
$0.4 million versus net loss of ($0.2) million in 2025 - Gross margins of
64.8% , up from59.5% in 2025 - EBITDA from operations of
$0.9 million - Ended quarter with
$6.4 million of cash and cash equivalents
Tandy Leather Factory’s second quarter sales were
Johan Hedberg, Chief Executive Officer of the Company, said, “We are happy to have delivered another growth quarter with sales gains across both retail and e-commerce channels and a considerable improvement in operating income versus the prior year. Gross margin also increased, primarily due to better pricing of our products. Operating expenses increased year-over-year, reflecting higher compensation, investments in a new POS system, launching a new Loyalty program to further improve the customer experience, and occupancy costs including rent for our headquarters and flagship store in Fort Worth. Nonetheless, our sales increases and margin growth more than offset those expenses, driving a strong improvement in profit from operations.”
Investors are encouraged to send their questions to the Company’s investor relations hotline at investorrelations@tandyleather.com.
| Quarter ended June 30, 2026 | |||
| Net income | $ | 0.4 | |
| Add back: | |||
| Depreciation and amortization | 0.3 | ||
| Interest income | (0.1) | ||
| Income tax provision | 0.2 | ||
| Stock-based compensation | 0.1 | ||
| EBITDA | $ | 0.9 | |
Tandy Leather Factory, Inc., (http://www.tandyleather.com), headquartered in Benbrook, 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 101 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.
