UNDER ARMOUR REPORTS THIRD QUARTER FISCAL 2026 RESULTS; UPDATES FISCAL 2026 OUTLOOK

Rhea-AI Summary

Under Armour (NYSE: UA) reported third-quarter fiscal 2026 results for the period ended Dec. 31, 2025, with net revenue of $1.33 billion (down 5% year-over-year; down 6% currency-neutral) and an operating loss of $150 million. Adjusted operating income was $26 million and adjusted net income was $37 million.

The company recorded a $247 million valuation allowance on U.S. federal deferred tax assets and updated fiscal 2026 guidance: revenue down ~4%, adjusted operating income ~ $110 million, and adjusted diluted EPS $0.10–$0.11.

Positive

• Adjusted operating income of $26 million for the quarter
• Adjusted net income of $37 million reported for the quarter
• Adjusted diluted EPS guidance raised to $0.10–$0.11 for fiscal 2026
• EMEA revenue growth of 6% in the quarter
• Restricted investments of $600 million held for June 2026 note repayment

Negative

• Gross margin declined 310 basis points to 44.4%
• Footwear revenue down 12% to $265 million
• Recorded $247 million valuation allowance on U.S. deferred tax assets
• Operating loss of $150 million and net loss of $431 million
• Restructuring and impairment charges to date of $178 million

Key Figures

Q3 revenue: $1.33 billion Q3 net loss: $431 million Q3 adjusted net income: $37 million +5 more

8 metrics

Q3 revenue $1.33 billion Third quarter fiscal 2026, down 5% year-over-year

Q3 net loss $431 million Includes $247 million valuation allowance on U.S. deferred tax assets

Q3 adjusted net income $37 million Excludes litigation reserve, transformation, restructuring and tax valuation allowance

Q3 diluted loss per share $1.01 GAAP diluted loss per share for the quarter

Q3 adjusted EPS $0.09 Adjusted diluted earnings per share for the quarter

Inventory $1.1 billion Quarter-end balance, down 2% year-over-year

Cash and equivalents $465 million Quarter-end liquidity excluding $600M restricted investments

FY26 adjusted EPS outlook $0.10–$0.11 Updated fiscal 2026 adjusted diluted EPS guidance

Market Reality Check

Price: $7.34 Vol: Volume 5,406,119 is 0.8x ...

normal vol

$7.34 Last Close

Volume Volume 5,406,119 is 0.8x the 20-day average of 6,730,955, indicating only moderate trading interest into the print. normal

Technical Shares at 6.15 are trading above the 200-day moving average of 5.37, despite the post-earnings decline.

Peers on Argus

UA fell 5.53% with peers also weak: UAA -3.24%, ZGN -3.19%, COLM -5.52%, and HBI...

UA fell 5.53% with peers also weak: UAA -3.24%, ZGN -3.19%, COLM -5.52%, and HBI -0.92%, while KTB was roughly flat, pointing to broader apparel pressure alongside company-specific factors.

Historical Context

5 past events · Latest: Jan 16 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 16	Earnings call timing	Neutral	+2.0%	Announcement of Q3 fiscal 2026 results release date and conference call.
Nov 13	Brand separation	Neutral	-2.7%	Separation of Curry Brand from Under Armour and refocus on core UA brand.
Nov 13	Restructuring expansion	Positive	-2.7%	Expanded restructuring plan and higher fiscal 2026 adjusted operating income outlook.
Nov 06	CFO transition	Neutral	-1.6%	Announcement of incoming CFO Reza Taleghani and planned handover from David Bergman.
Nov 06	Q2 earnings	Negative	-1.6%	Q2 fiscal 2026 results with revenue decline, gross margin compression, and net loss.

Pattern Detected

Recent news shows mostly modest share reactions, with the stock tending to sell off on restructuring updates and weaker results even when guidance or strategic messaging was constructive.

Recent Company History

Over the last several months, Under Armour has focused on restructuring and leadership transition. On Nov 13, 2025, it expanded its fiscal 2025 restructuring plan to up to $255 million of charges and raised its fiscal 2026 adjusted operating income outlook to $95M–$110M, yet the stock fell. Earlier, second-quarter fiscal 2026 results on Nov 6, 2025 showed revenue at $1.33B and a $19M net loss, also met with a negative reaction. Today’s third-quarter results and outlook update continue this restructuring-driven narrative.

Market Pulse Summary

This announcement details Under Armour’s third-quarter fiscal 2026 results, with revenue of $1.33B, ...

Analysis

This announcement details Under Armour’s third-quarter fiscal 2026 results, with revenue of $1.33B, a GAAP net loss of $431M, and adjusted EPS of $0.09. Management highlighted progress on its Fiscal 2025 Restructuring Plan, having incurred $224M of related charges to date, and updated fiscal 2026 guidance, including adjusted EPS of $0.10–$0.11. Investors may track North America trends, gross margin impacts from tariffs, and execution against cost-reduction and transformation goals.

Key Terms

generally accepted accounting principles, gaap, non-gaap, currency-neutral, +4 more

8 terms

generally accepted accounting principles financial

"The company reports its financial performance in accordance with United States Generally Accepted Accounting Principles"

Generally accepted accounting principles (GAAP) are a standardized set of rules and practices companies use to record and report their financial results, like a common recipe so dishes from different cooks can be fairly compared. Investors rely on GAAP because it makes company earnings, assets and liabilities consistent and transparent across businesses, helping them compare performance, spot risks, and make informed decisions about buying or selling stock.

gaap financial

"The company reports its financial performance in accordance with United States Generally Accepted Accounting Principles ("GAAP")."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

non-gaap financial

"This press release includes references to "currency neutral" and "adjusted" amounts, which are non-GAAP financial measures"

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.

currency-neutral financial

"This press release includes references to "currency neutral" and "adjusted" amounts"

Currency-neutral means measuring a company’s sales, profits or growth as if exchange rates between currencies had not changed, so movements in foreign money don’t distort the result. It matters to investors because it isolates the company’s underlying business performance from swings in foreign exchange—like comparing two measurements using the same ruler—making trends and comparisons across periods or companies clearer.

basis points financial

"Gross margin declined 310 basis points to 44.4 percent, primarily due to higher tariffs."

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.

revolving credit facility financial

"no borrowings were outstanding under its $1.1 billion revolving credit facility."

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

deferred tax assets financial

"reduce the value of its U.S. federal deferred tax assets and record a corresponding non-cash tax expense"

An item on a company’s balance sheet showing tax benefits it can use later to reduce future tax bills — think of it as an IOU from the tax system for past losses or timing differences. It matters to investors because it can boost future cash flow and apparent value if the company expects profits ahead, but those benefits vanish if the company cannot generate taxable income and the asset must be reduced.

forward-looking statements regulatory

"Some of the statements contained in this press release constitute forward-looking statements."

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. Not financial advice.

BALTIMORE, Feb. 6, 2026 /PRNewswire/ -- Under Armour, Inc. (NYSE: UAA, UA) released its unaudited financial results for the third quarter of fiscal 2026, which ended on December 31, 2025. The company reports its financial performance in accordance with United States Generally Accepted Accounting Principles ("GAAP"). This press release includes references to "currency neutral" and "adjusted" amounts, which are non-GAAP financial measures detailed in the "Non-GAAP Financial Information" section below.

"Our third quarter adjusted operating results exceeded expectations, and despite a few unfortunate, non-recurring impacts, we're encouraged by the progress we're making in the business to reignite brand momentum," said Under Armour President and CEO Kevin Plank. "In North America, we believe the December quarter marked the most challenging phase of our business reset, and we expect greater stability ahead as we build on this progress globally."

Plank continued, "Our transformation is accelerating as we sharpen our focus and strengthen execution. Our strategy is gaining traction through better products, bolder storytelling, and a more disciplined market presence, positioning Under Armour to operate with greater intention and confidence going forward."

Third Quarter Fiscal 2026 Review

• Revenue decreased 5 percent to $1.33 billion (down 6 percent on a currency-neutral basis).
  • North America revenue declined 10 percent to $757 million, while international revenue increased 3 percent to $577 million (up 1 percent currency neutral). Within international markets, EMEA revenue grew 6 percent (up 2 percent currency neutral), Asia-Pacific declined 5 percent (down 5 percent currency neutral), and Latin America increased 20 percent (up 13 percent currency neutral).
  • Wholesale revenue decreased 6 percent to $660 million, and direct-to-consumer (DTC) revenue declined 4 percent to $647 million. Within DTC, owned-and-operated store revenue declined 2 percent, and eCommerce revenue fell 7 percent, representing 38 percent of total DTC revenue for the quarter.
  • By category, apparel revenue decreased 3 percent to $934 million, footwear declined 12 percent to $265 million, and accessories decreased 3 percent to $108 million.
• Gross margin declined 310 basis points to 44.4 percent, primarily due to higher tariffs. Other factors included pricing headwinds and an unfavorable channel and regional mix. Foreign exchange gains and a favorable product mix partially offset these impacts.
• Selling, general and administrative (SG&A) expenses increased 4 percent to $665 million. Excluding a $99 million litigation reserve expense related to a previously disclosed insurance carrier dispute and $3 million in transformation expenses related to the Fiscal 2025 Restructuring Plan, adjusted SG&A declined 7 percent to $563 million, primarily reflecting lower marketing spend due to timing shifts, with most prior-year spending occurring in the second half.
• Restructuring charges totaled $75 million.
• Operating loss was $150 million. Excluding the litigation reserve expense and transformation and restructuring charges, adjusted operating income was $26 million.
• During the quarter, the company recorded a net loss of $431 million, which included a $247 million valuation allowance on its U.S. federal deferred tax assets. Adjusted net income was $37 million, which excludes the litigation reserve expense, transformation and restructuring charges, and the valuation allowance. 
• Diluted loss per share was $1.01; adjusted diluted earnings per share was $0.09.
• Inventory decreased 2 percent to $1.1 billion.
• Liquidity: Cash and cash equivalents totaled $465 million at quarter-end. The company also held $600 million in restricted investments designated for the repayment of its senior notes due in June 2026. At quarter-end, no borrowings were outstanding under its $1.1 billion revolving credit facility.

Regarding the valuation allowance, in accordance with GAAP, the company was required to reduce the value of its U.S. federal deferred tax assets and record a corresponding non-cash tax expense as a result of cumulative GAAP U.S. losses over the past three years. These losses have been driven largely by restructuring and impairment charges, litigation reserve expenses, and other non-operating items. This valuation allowance has no impact on Under Armour's cash flow or tax filings and should reverse once the U.S. business returns to sustained profitability.

Fiscal 2025 Restructuring Plan

In May 2024, Under Armour announced a restructuring plan to improve financial and operational efficiency, which has since been updated as implementation progressed. The plan is now expected to cost up to $255 million, including up to $107 million in cash charges and up to $148 million in non-cash charges. Through the end of the third quarter of fiscal 2026, the company recorded $178 million in restructuring and impairment charges and $47 million in other transformation-related expenses. Of the $224 million incurred to date, $89 million is cash-related and $135 million is non-cash. The company expects to recognize the remaining charges under the updated plan by the end of fiscal 2026.

Fiscal 2026 Outlook

Compared with fiscal 2025, key highlights of the company's fiscal 2026 outlook are:

• Revenue is expected to decline approximately 4 percent, compared with the prior outlook of a 4 to 5 percent decline. This includes an approximate 8 percent decline in North America and a 6 percent decline in Asia-Pacific, each compared with a previously expected high-single-digit decline, partially offset by an approximate 9 percent increase in EMEA revenue, compared with a previously expected high-single-digit increase.
• Gross margin is expected to decline approximately 190 basis points, compared with the prior outlook of a 190 to 210 basis point decline, primarily due to higher U.S. tariffs, unfavorable channel and regional mix, and pricing headwinds, partially offset by favorable foreign exchange and product mix.
• SG&A expenses are expected to decline at a low-double-digit rate, compared with the prior outlook of a mid-teen percentage decline. Adjusted SG&A, which excludes litigation reserve expenses, transformation expenses related to the Fiscal 2025 Restructuring Plan, and impairment charges, is expected to decline at a mid-single-digit rate, unchanged from the prior outlook, driven by lower marketing costs, restructuring savings, and other cost management initiatives.
• Operating loss is expected to be approximately $154 million, compared with the prior outlook of a $56 million to $71 million loss. Excluding the litigation reserve expense and expected transformation and restructuring charges, adjusted operating income is expected to be approximately $110 million, compared with the prior outlook of $95 million to $110 million.
• Diluted loss per share is expected to range from $1.24 to $1.25. Adjusted diluted earnings per share is expected to range from $0.10 to $0.11, compared with the prior outlook of $0.03 to $0.05.

Conference Call and Webcast

Under Armour will hold its third-quarter fiscal 2026 conference call today at approximately 8:30 a.m. Eastern Time. The call will stream live at https://about.underarmour.com/investor-relations/financials and will be available for replay approximately three hours after the live event.

Non-GAAP Financial Information

This press release discusses "currency-neutral" and "adjusted" results, as well as the company's "adjusted" forward-looking estimates for the fiscal year ending March 31, 2026. Management believes this information is valuable for investors seeking to compare the company's operational results across periods, as it provides clearer insight into underlying performance by excluding these impacts. Currency-neutral financial data removes fluctuations caused by foreign currency exchange rates. Adjusted financial measures exclude the effects of the company's litigation reserve expense (and related insurance recoveries) and the company's Fiscal 2025 Restructuring Plan, its associated charges, and related tax effects, as well as the valuation allowance against its U.S. federal deferred tax assets. Management states that these adjustments are not essential to the company's core operations. The reconciliation of non-GAAP figures to the most directly comparable GAAP financial measure is included in the supplemental financial information accompanying this release. All per-share amounts are reported on a diluted basis. These supplemental non-GAAP financial measures should not be viewed in isolation; they should be considered alongside the company's reported results prepared in accordance with GAAP. Additionally, the company's non-GAAP financial information may not be comparable to similar measures reported by other companies.

About Under Armour, Inc.

Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories. Designed to empower human performance, Under Armour's innovative products and experiences are engineered to make athletes better. For further information, please visit http://about.underarmour.com.

Forward-Looking Statements

Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, plans, strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, such as statements regarding our share repurchase program, future financial condition or results of operations, growth prospects and strategies, potential restructuring efforts (including the scope, anticipated charges and costs, the timing of these measures, and the anticipated benefits of our restructuring initiatives), expectations related to promotional activities, freight, product cost pressures, foreign currency effects, the impact of global economic conditions, including changes in trade policy and inflation, on our results of operations, liquidity and use of capital resources, the development and introduction of new products, the execution of marketing strategies, benefits from significant investments, and impacts from litigation or other proceedings. In many cases, you can identify forward-looking statements by terms such as "may," "will," "could," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "outlook," "potential," or the negative of these terms or other comparable terminology. The forward-looking statements in this press release reflect our current views about future events. They are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe the expectations reflected in the forward-looking statements are reasonable, they are inherently uncertain. We cannot guarantee future events, results, actions, activity levels, performance, or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. Several important factors could cause actual results to differ materially from those indicated by these forward-looking statements, including, but not limited to: changes in general economic or market conditions (such as rising inflation and potential impacts of changes and uncertainties related to government fiscal, monetary, tax and trade policies) that could influence overall consumer spending or our industry; the impact of global events beyond our control, including military conflicts; and the effects of changes in the global trade environment, such as the imposition of new tariffs and countermeasures thereto, on our profitability; increased competition that may cause us to lose market share, lower product prices, or significantly increase marketing efforts; fluctuations in the costs of raw materials and commodities we use in our products and supply chain (including labor); our ability to successfully execute our long-term strategies; our ability to effectively drive operational efficiency in our business; changes in the financial health of our customers; our ability to effectively develop and launch new, innovative, and updated products; our ability to accurately forecast consumer preferences and demand for our products and to effectively manage our inventory; our ability to successfully execute any restructuring plans and achieve expected benefits; loss of key customers, suppliers, or manufacturers; our ability to further expand our business globally and drive brand awareness and consumer acceptance of our products in other countries; our ability to manage the increasingly complex operations of our global business; our ability to effectively market and maintain a positive brand image; our ability to successfully manage or achieve expected outcomes from significant transactions and investments; our ability to attract key talent and retain the services of our senior management and other key employees; our ability to effectively meet regulatory requirements and stakeholder expectations with respect to sustainability and social matters; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; any disruptions, delays or deficiencies in the design, implementation, or application of our global operating and financial reporting information technology system; our ability to access capital and financing required to manage our business on terms acceptable to us; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; risks related to foreign currency exchange rate fluctuations; our ability to comply with existing trade and other regulations; risks related to data security or privacy breaches; the impact of global or regional public health emergencies on our industry and our business, financial condition and results of operations, including impacts on the global supply chain; and our potential exposure to and the financial impact of litigation and other proceedings. The forward-looking statements here reflect our views and assumptions only as of the date of this press release. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect unanticipated events.

 

UNDER ARMOUR, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited; in thousands, except per share amounts)
	Three Months Ended December 31,								Nine Months Ended December 31,
	2025		% of Net Revenues		2024		% of Net Revenues		2025		% of Net Revenues		2024		% of Net Revenues
Net revenues	$ 1,327,761		100.0 %		$ 1,401,039		100.0 %		$ 3,795,209		100.0 %		$ 3,983,727		100.0 %
Cost of goods sold	738,021		55.6 %		735,884		52.5 %		2,028,389		53.4 %		2,059,765		51.7 %
Gross profit	589,740		44.4 %		665,155		47.5 %		1,766,820		46.6 %		1,923,962		48.3 %
Selling, general and administrative expenses	664,540		50.0 %		637,701		45.5 %		1,776,517		46.8 %		1,994,858		50.1 %
Restructuring charges	74,980		5.6 %		13,945		1.0 %		119,714		3.2 %		42,243		1.1 %
Income (loss) from operations	(149,780)		(11.3) %		13,509		1.0 %		(129,411)		(3.4) %		(113,139)		(2.8) %
Interest income (expense), net	(8,892)		(0.7) %		(3,391)		(0.2) %		(21,548)		(0.6) %		(2,794)		(0.1) %
Other income (expense), net	(1,584)		(0.1) %		(2,563)		(0.2) %		(7,221)		(0.2) %		(8,713)		(0.2) %
Income (loss) before income taxes	(160,256)		(12.1) %		7,555		0.5 %		(158,180)		(4.2) %		(124,646)		(3.1) %
Income tax expense (benefit)	270,604		20.4 %		6,295		0.4 %		293,886		7.7 %		9,308		0.2 %
Income (loss) from equity method investments	33		— %		(26)		— %		(187)		— %		144		— %
Net income (loss)	$ (430,827)		(32.4) %		$      1,234		0.1 %		$ (452,253)		(11.9) %		$ (133,810)		(3.4) %
Basic net income (loss) per share of Class A, B and C common stock	$       (1.01)				$        0.00				$       (1.06)				$       (0.31)
Diluted net income (loss) per share of Class A, B and C      common stock	$       (1.01)				$        0.00				$       (1.06)				$       (0.31)
Weighted average common shares outstanding Class A, B and C common stock
Basic	424,845				431,744				426,769				433,212
Diluted	424,845				437,297				426,769				433,212

 

UNDER ARMOUR, INC. (Unaudited; in thousands)
NET REVENUES BY SEGMENT
	Three Months Ended December 31,						Nine Months Ended December 31,
	2025		2024		% Change		2025		2024		% Change
North America	$       756,726		$       843,620		(10.3) %		$    2,218,547		$    2,416,225		(8.2) %
EMEA	315,751		297,890		6.0 %		882,037		807,960		9.2 %
Asia-Pacific	190,885		201,112		(5.1) %		533,446		590,609		(9.7) %
Latin America	70,603		58,990		19.7 %		178,992		170,340		5.1 %
Corporate Other (1)	(6,204)		(573)		(982.7) %		(17,813)		(1,407)		(1,166.0) %
Total net revenues	$    1,327,761		$    1,401,039		(5.2) %		$    3,795,209		$    3,983,727		(4.7) %
NET REVENUES BY DISTRIBUTION CHANNEL
	Three Months Ended December 31,						Nine Months Ended December 31,
	2025		2024		% Change		2025		2024		% Change
Wholesale	$       659,965		$       704,760		(6.4) %		$    2,084,065		$    2,211,266		(5.8) %
Direct-to-consumer	646,845		672,948		(3.9) %		1,648,456		1,703,497		(3.2) %
Net Sales	1,306,810		1,377,708		(5.1) %		3,732,521		3,914,763		(4.7) %
License revenues	27,155		23,904		13.6 %		80,501		70,371		14.4 %
Corporate Other (1)	(6,204)		(573)		(982.7) %		(17,813)		(1,407)		(1,166.0) %
Total net revenues	$    1,327,761		$    1,401,039		(5.2) %		$    3,795,209		$    3,983,727		(4.7) %
NET REVENUES BY PRODUCT CATEGORY
	Three Months Ended December 31,						Nine Months Ended December 31,
	2025		2024		% Change		2025		2024		% Change
Apparel	$       934,015		$       966,068		(3.3) %		$    2,617,090		$    2,671,048		(2.0) %
Footwear	265,135		301,208		(12.0) %		794,616		924,357		(14.0) %
Accessories	107,660		110,432		(2.5) %		320,815		319,358		0.5 %
Net Sales	1,306,810		1,377,708		(5.1) %		3,732,521		3,914,763		(4.7) %
Licensing revenues	27,155		23,904		13.6 %		80,501		70,371		14.4 %
Corporate Other (1)	(6,204)		(573)		(982.7) %		(17,813)		(1,407)		(1,166.0) %
Total net revenues	$    1,327,761		$    1,401,039		(5.2) %		$    3,795,209		$    3,983,727		(4.7) %

(1) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the company's operating segments but managed through its central foreign exchange risk management program.

 

UNDER ARMOUR, INC. (Unaudited; in thousands)
INCOME (LOSS) FROM OPERATIONS BY SEGMENT
	Three Months Ended December 31,								Nine Months Ended December 31,
	2025		% of Net Revenues(1)		2024		% of Net Revenues(1)		2025		% of Net Revenues(1)		2024		% of Net Revenues(1)
North America	$    105,902		14.0 %		$    164,068		19.4 %		$    365,295		16.5 %		$    529,216		21.9 %
EMEA	49,386		15.6 %		42,110		14.1 %		141,630		16.1 %		114,161		14.1 %
Asia-Pacific	20,954		11.0 %		14,009		7.0 %		63,732		11.9 %		58,158		9.8 %
Latin America	8,004		11.3 %		14,186		24.0 %		19,206		10.7 %		41,528		24.4 %
Corporate Other (2)	(334,026)		NM		(220,864)		NM		(719,274)		NM		(856,202)		NM
Income (loss) from operations	$  (149,780)		(11.3) %		$      13,509		1.0 %		$  (129,411)		(3.4) %		$  (113,139)		(2.8) %

(1) The percentage of operating income (loss) is calculated based on total segment net revenues. The operating income (loss) percentage for Corporate Other is not presented as a meaningful metric (NM).

(2) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the company's operating segments but managed through its central foreign exchange risk management program. Corporate Other also includes expenses related to the company's central supporting functions.

 

UNDER ARMOUR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited; in thousands)
		December 31, 2025		March 31, 2025
Assets
Current assets
Cash and cash equivalents		$                           464,648		$                           501,361
Accounts receivable, net		611,520		675,822
Inventories		1,074,527		945,836
Restricted investments		599,830		—
Prepaid expenses and other current assets, net		238,506		206,078
Total current assets		2,989,031		2,329,097
Property and equipment, net		592,705		645,147
Operating lease right-of-use assets		367,039		384,341
Goodwill		495,162		487,632
Intangible assets, net		4,425		5,224
Deferred income taxes		68,356		286,160
Other long-term assets		113,265		163,270
Total assets		$                        4,629,983		$                        4,300,871
Liabilities and Stockholders' Equity
Current maturities of long-term debt		$                           599,682		$                                      —
Accounts payable		664,489		429,944
Accrued expenses		471,288		348,747
Customer refund liabilities		143,423		146,021
Operating lease liabilities		140,656		130,050
Other current liabilities		69,929		54,381
Total current liabilities		2,089,467		1,109,143
Long-term debt, net of current maturities		390,049		595,125
Operating lease liabilities, non-current		558,133		574,277
Other long-term liabilities		157,275		132,048
Total liabilities		3,194,924		2,410,593
Total stockholders' equity		1,435,059		1,890,278
Total liabilities and stockholders' equity		$                        4,629,983		$                        4,300,871

 

UNDER ARMOUR, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in thousands)
	Nine Months Ended December 31,
	2025		2024
Cash flows from operating activities
Net income (loss)	$            (452,253)		$            (133,810)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization	83,535		96,786
Unrealized foreign currency exchange rate (gain) loss	(49)		8,072
Loss on disposal of property and equipment	3,932		4,039
Non-cash restructuring and impairment charges	99,538		38,575
Amortization of bond premium and debt issuance costs	2,141		1,703
Stock-based compensation	35,786		40,794
Deferred income taxes	217,406		(8,784)
Changes in reserves and allowances	(7,218)		10,480
Changes in operating assets and liabilities:
Accounts receivable	64,861		136,658
Inventories	(121,628)		(149,362)
Prepaid expenses and other assets	(48,163)		2,988
Other non-current assets	(27,251)		(39,662)
Accounts payable	252,753		172,504
Accrued expenses and other liabilities	114,251		(65,207)
Customer refund liabilities	(2,407)		30,838
Income taxes payable and receivable	41,845		(3,732)
Net cash provided by (used in) operating activities	257,079		142,880
Cash flows from investing activities
Purchases of property and equipment	(71,968)		(139,860)
Purchase of restricted investment	(601,235)		—
Sale of MyFitnessPal platform	—		50,000
Sale of MapMyFitness platform	—		8,000
Purchase of UNLESS COLLECTIVE, Inc, net of cash acquired	(500)		(9,788)
Purchase of equity method investment in ISC Sport	—		(7,546)
Net cash provided by (used in) investing activities	(673,703)		(99,194)
Cash flows from financing activities
Common stock repurchased	(25,000)		(65,000)
Proceeds from long-term debt and revolving credit facility	600,000		—
Repayment of long-term debt and revolving credit facility	(200,000)		(80,919)
Employee taxes paid for shares withheld for income taxes	(8,036)		(9,000)
Excise tax paid on repurchases of common stock	(743)		—
Proceeds from exercise of stock options and other stock issuances	1,657		1,852
Payments of debt financing costs	(7,392)		(1,388)
Net cash provided by (used in) financing activities	360,486		(154,455)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	9,480		(20,982)
Net increase in (decrease in) cash, cash equivalents and restricted cash	(46,658)		(131,751)
Cash, cash equivalents and restricted cash - Beginning of period	515,051		876,917
Cash, cash equivalents and restricted cash - End of period	$              468,393		$              745,166

 

UNDER ARMOUR, INC. (Unaudited)

The table below presents the reconciliation of net revenue growth (decline) calculated in accordance with GAAP to currency-neutral net revenue, a non-GAAP measure. For further information regarding the company's use of non-GAAP financial measures, see "Non-GAAP Financial Information" above.

CURRENCY-NEUTRAL NET REVENUE GROWTH (DECLINE) RECONCILIATION
	Three Months Ended December 31, 2025		Nine Months Ended December 31, 2025
Total Net Revenue
Net revenue growth (decline) - GAAP	(5.2) %		(4.7) %
Foreign exchange impact	(1.0) %		(0.8) %
Currency neutral net revenue growth (decline) - Non-GAAP	(6.2) %		(5.5) %
North America
Net revenue growth (decline) - GAAP	(10.3) %		(8.2) %
Foreign exchange impact	0.1 %		0.1 %
Currency neutral net revenue growth (decline) - Non-GAAP	(10.2) %		(8.1) %
EMEA
Net revenue growth (decline) - GAAP	6.0 %		9.2 %
Foreign exchange impact	(3.9) %		(4.3) %
Currency neutral net revenue growth (decline) - Non-GAAP	2.1 %		4.9 %
Asia-Pacific
Net revenue growth (decline) - GAAP	(5.1) %		(9.7) %
Foreign exchange impact	0.2 %		(0.2) %
Currency neutral net revenue growth (decline) - Non-GAAP	(4.9) %		(9.9) %
Latin America
Net revenue growth (decline) - GAAP	19.7 %		5.1 %
Foreign exchange impact	(6.5) %		0.3 %
Currency neutral net revenue growth (decline) - Non-GAAP	13.2 %		5.4 %
Total International
Net revenue growth (decline) - GAAP	3.4 %		1.6 %
Foreign exchange impact	(2.7) %		(2.2) %
Currency neutral net revenue growth (decline) - Non-GAAP	0.7 %		(0.6) %

 

UNDER ARMOUR, INC.  (Unaudited; in thousands)

The tables below present the reconciliation of the company's condensed consolidated statement of operations in accordance with GAAP to specific adjusted non-GAAP financial measures discussed in this press release. For further information regarding the company's use of non-GAAP financial measures, see "Non-GAAP Financial Information" above.

ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
	Three Months Ended December 31,				Nine Months Ended December 31,
	2025		2024		2025		2024
GAAP selling, general and administrative expenses	$       664,540		$       637,701		$    1,776,517		$    1,994,858
Add: Impact of litigation reserve	(98,500)		—		(98,500)		(261,046)
Add: Impact of restructuring-related transformational expenses	(2,714)		(3,819)		(15,418)		(15,200)
Add: Impact of other impairment charges	—		(28,360)		—		(28,360)
Adjusted selling, general and administrative expenses	$       563,326		$       605,522		$    1,662,599		$    1,690,252
ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION
	Three Months Ended December 31,				Nine Months Ended December 31,
	2025		2024		2025		2024
GAAP income (loss) from operations	$     (149,780)		$         13,509		$     (129,411)		$     (113,139)
Add: Impact of litigation reserve	98,500		—		98,500		261,046
Add: Impact of restructuring charges	74,980		13,945		119,714		42,243
Add: Impact of restructuring-related transformational expenses	2,714		3,819		15,418		15,200
Add: Impact of other impairment charges	—		28,360		—		28,360
Adjusted income from operations	$         26,414		$         59,633		$       104,221		$       233,710
ADJUSTED NET INCOME (LOSS) RECONCILIATION
	Three Months Ended December 31,				Nine Months Ended December 31,
	2025		2024		2025		2024
GAAP net income (loss)	$     (430,827)		$           1,234		$     (452,253)		$     (133,810)
Add: Impact of litigation reserve	98,500		—		98,500		261,046
Add: Impact of restructuring charges	74,980		13,945		119,714		42,243
Add: Impact of restructuring-related transformational expenses	2,714		3,819		15,418		15,200
Add: Impact of other impairment charges	—		28,360		—		28,360
Add: Impact of provision for income taxes	291,514		(12,361)		279,357		(43,272)
Adjusted net income	$         36,881		$         34,997		$         60,736		$       169,767

 

UNDER ARMOUR, INC. (Unaudited; in thousands, except per share amounts)

The table below presents the reconciliation of the company's condensed consolidated statement of operations in accordance with GAAP to specific adjusted non-GAAP financial measures discussed in this press release. For further information regarding the company's use of non-GAAP financial measures, see "Non-GAAP Financial Information" above.

ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION
	Three Months Ended December 31,				Nine Months Ended December 31,
	2025		2024		2025		2024
GAAP diluted net income (loss) per share	$            (1.01)		$             0.00		$            (1.06)		$            (0.31)
Add: Impact of litigation reserve	0.23		—		0.23		0.60
Add: Impact of restructuring charges	0.18		0.03		0.28		0.10
Add: Impact of restructuring-related transformational expenses	0.01		0.01		0.04		0.04
Add: Impact of other impairment charges	—		0.06		—		0.06
Add: Impact of provision for income taxes	0.68		(0.02)		0.65		(0.10)
Adjusted diluted net income per share	$             0.09		$             0.08		$             0.14		$             0.39

 

UNDER ARMOUR, INC. Outlook for the Year Ending March 31, 2026 (Unaudited; in millions, except per share amounts)

The tables below reconcile the company's condensed consolidated statement of operations, in accordance with GAAP, to specific adjusted non-GAAP financial measures discussed in this press release. For further information regarding the company's use of non-GAAP financial measures, see "Non-GAAP Financial Information" above.

ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION
		Year Ending March 31, 2026
		Approximately
GAAP income (loss) from operations		$                              (154)
Add: Impact of litigation reserve		99
Add: Impact of charges under the Fiscal 2025 Restructuring Plan		165
Adjusted income from operations		$                                110

 

ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION
	Year Ending March 31, 2026
	Low end of estimate		High end of estimate
GAAP diluted net loss per share	$                             (1.25)		$                             (1.24)
Add: Impact of litigation reserve	0.23		0.23
Add: Impact of charges under the Fiscal 2025 Restructuring Plan	0.38		0.38
Add: Impact of provision for income taxes	0.74		0.74
Adjusted diluted net income per share	$                               0.10		$                               0.11

 

UNDER ARMOUR, INC. COMPANY-OWNED & OPERATED DOOR COUNT
		December 31, 2025		December 31, 2024
Factory House		183		180
Brand House		16		16
North America total doors		199		196
Factory House		187		180
Brand House		64		72
International total doors		251		252
Factory House		370		360
Brand House		80		88
Total doors		450		448

 

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SOURCE Under Armour, Inc.

FAQ

What were Under Armour (UA) third-quarter fiscal 2026 revenues and how did they compare year-over-year?

Under Armour reported $1.33 billion in net revenue for Q3 FY2026, down 5% year-over-year. According to the company, the revenue decline was driven by a 10% drop in North America and mixed performance across international regions, with EMEA up 6% and Latin America up 20%.

Why did Under Armour (UA) report a large net loss in Q3 FY2026 and what non-cash items affected results?

The company recorded a $431 million net loss, including a $247 million valuation allowance on U.S. deferred tax assets. According to the company, prior GAAP losses and non-operating charges required the non-cash valuation allowance, which does not affect cash flow or tax filings.

What guidance did Under Armour (UA) update for fiscal 2026 on February 6, 2026?

Under Armour updated fiscal 2026 guidance to expect revenue down about 4% and adjusted operating income around $110 million. According to the company, adjusted diluted EPS is expected to be between $0.10 and $0.11, with operating loss including one-time items near $154 million.

How did gross margin and category performance trend for Under Armour (UA) in Q3 FY2026?

Gross margin fell to 44.4%, down 310 basis points versus prior year. According to the company, higher U.S. tariffs, pricing headwinds, and an unfavorable channel and regional mix were the primary drivers, while product mix and FX gains partially offset declines.

What restructuring and cash position details did Under Armour (UA) disclose for Q3 ending Dec. 31, 2025?

The company has recorded $178 million of restructuring and impairment charges through Q3 and expects plan costs up to $255 million. According to the company, cash and cash equivalents were $465 million, and $600 million in restricted investments are designated for June 2026 note repayment.