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  4. [8-K] Crocs, Inc. Reports Material Event

Guidance raised as Crocs (NASDAQ: CROX) grows DTC and trims debt

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(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Crocs, Inc. reported first quarter 2026 revenue of $921.5 million, down 1.7% year over year, as strong direct-to-consumer growth of 12.1% offset weaker wholesale demand, which fell 9.9%. Operating margin was 21.8%, with GAAP diluted EPS of $2.71 and adjusted diluted EPS of $2.99, nearly flat versus last year.

The Crocs brand grew revenue 0.8% to $767.4 million, while HEYDUDE declined 12.3% to $154.0 million, reflecting wholesale softness even as both brands expanded their direct-to-consumer channels. First quarter free cash flow was negative $98.9 million, and total borrowings were $1.34 billion, down from $1.48 billion a year earlier.

Based on these results, Crocs raised its full-year 2026 outlook. It now expects revenue to range from down 1% to up 1% versus 2025, and projects adjusted operating margin above 22.3%. Adjusted diluted EPS guidance increased to $13.20–$13.75. The company also repurchased 0.8 million shares for $73.6 million after quarter end.

Positive

  • Raised 2026 outlook: Full-year revenue now expected between down 1% and up 1% versus 2025, with adjusted diluted EPS guidance increased to $13.20–$13.75 and adjusted operating margin projected to expand modestly from 22.3%.
  • Strong direct-to-consumer growth: DTC revenues grew 12.1% overall, with Crocs brand DTC up 12.9% and HEYDUDE DTC up 8.6%, supporting higher-margin channels even as wholesale softened.

Negative

  • HEYDUDE brand weakness: HEYDUDE revenue declined 12.3% year over year to $154.0 million, driven by a 24.7% drop in wholesale revenue despite growth in its direct-to-consumer business.
  • Negative free cash flow: Free cash flow was -$98.9 million in Q1 2026, reflecting cash used in operating activities of $80.9 million and capital expenditures of $18.0 million during the quarter.

Insights

Mixed quarter: DTC strength and higher guidance offset wholesale and HEYDUDE weakness.

Crocs, Inc. delivered Q1 2026 revenue of $921.5M, down only 1.7% despite a challenging wholesale environment. Direct-to-consumer sales grew 12.1%, pushing consolidated gross margin to 56.8% and non-GAAP operating margin to 22.3%, indicating resilient profitability.

The Crocs brand grew modestly, while HEYDUDE revenue fell 12.3%, with wholesale down 24.7%. This highlights brand and channel divergence: core Crocs and DTC are healthy, but HEYDUDE wholesale remains under pressure. Free cash flow of -$98.9M and total borrowings of $1.34B reflect continued balance-sheet leverage.

Management raised full-year 2026 guidance, now targeting revenue from down 1% to up 1% and adjusted EPS of $13.20–$13.75, higher than prior ranges. The outlook assumes non-GAAP adjustments of about $25M and an adjusted tax rate near 18%, while planned capital expenditures of $70–$80M support ongoing growth initiatives.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q1 2026 Revenue $921.5M Three months ended March 31, 2026; down 1.7% year over year
GAAP Diluted EPS $2.71 Q1 2026 diluted earnings per share, down from $2.83 in Q1 2025
Adjusted Diluted EPS $2.99 Q1 2026 non-GAAP diluted EPS, slightly below $3.00 in Q1 2025
Crocs Brand Revenue $767.4M Q1 2026 Crocs brand revenue, up 0.8% year over year
HEYDUDE Brand Revenue $154.0M Q1 2026 HEYDUDE revenue, down 12.3% year over year
Total Borrowings $1.34B Total borrowings as of March 31, 2026, versus $1.48B a year earlier
Free Cash Flow -$98.9M Q1 2026 free cash flow from operating cash use and capex
Share Repurchases Post-Q1 $73.6M 0.8M shares repurchased between March 31 and April 23, 2026
direct-to-consumer financial
"Direct-to-consumer (“DTC”) revenues grew 12.1%, or 10.2% on a constant currency basis."
A direct-to-consumer (DTC) model is when a company sells its products or services straight to customers, skipping middlemen like retailers or wholesalers. For investors, DTC matters because it can mean higher profit margins, closer customer relationships and faster feedback—like a baker who sells directly from the shop instead of through a grocery chain—while also exposing the business to costs for marketing, customer support and logistics that affect growth and profitability.
wholesale revenues financial
"Wholesale revenues decreased 9.9%, or 12.5% on a constant currency basis."
Non-GAAP operating margin financial
"Adjusted income from operations of $206 million ... resulting in adjusted operating margin of 22.3% compared to 23.8%."
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
free cash flow financial
"Free cash flow is calculated as ‘Cash provided by operating activities’ less ‘Purchases of property, equipment, and software.’"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
constant currency financial
"a decrease of 1.7%, or 4.0% on a constant currency basis."
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
non-GAAP financial measures financial
"which are non-GAAP financial measures. We also present future period guidance for “Non-GAAP operating margin,”"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Revenue $921.5M -1.7% year over year
GAAP diluted EPS $2.71 down from $2.83 in Q1 2025
Adjusted diluted EPS $2.99 -0.3% year over year
Adjusted operating margin 22.3% down from 23.8% in Q1 2025
Guidance

For 2026, Crocs expects revenue from down 1% to up 1% versus 2025 and adjusted diluted EPS of $13.20–$13.75, with adjusted operating margin projected to expand modestly from 22.3%.

Understanding 8-K Material Events →
0001334036false00013340362026-04-302026-04-30

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): April 30, 2026
CROCS, INC.
(Exact name of registrant as specified in its charter)
Delaware

0-51754

20-2164234
(State or other jurisdiction

(Commission File Number)

(I.R.S. Employer
of incorporation)
 

 
 

Identification No.)



500 Eldorado Blvd., Building 5

Broomfield,
Colorado
80021
(Address of principal executive offices)
 
 
(Zip Code)
 
 Registrant’s telephone number, including area code: (303) 848-7000
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class:Trading symbol:Name of each exchange on which registered:
Common Stock, par value $0.001 per shareCROXThe Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.45) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
    Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02. Results of Operations and Financial Condition.
 
On April 30, 2026, Crocs, Inc. issued a press release reporting its results of operations for the three months ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report.

Item 9.01. Financial Statements and Exhibits.
 
(d) Exhibits.
 
Exhibit
No.
 
 
 
Description
 
99.1

Crocs, Inc. press release dated April 30, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
CROCS, INC.
 
 
 
 
 
 
 
Date: April 30, 2026
By:
/s/ Patraic Reagan
 
 
 
 
Patraic Reagan
 
 
 
 
Executive Vice President and Chief Financial Officer
 
 


2

Exhibit 99.1
 
crocslogogreena.jpg
 
Investor Contact:
Abigail Ritter, Crocs, Inc.
(302) 265-0922
aritter@crocs.com
PR Contact:Melissa Layton, Crocs, Inc.
(303) 848-7885
mlayton@crocs.com

Crocs, Inc. Reports Better-Than-Expected First Quarter 2026 Results And Raises Full-Year Outlook

•First Quarter Outperformance Supported By Broad Consumer Relevance Across Both Brands
•Crocs And HEYDUDE Brand Performance Led By Healthy Direct-To-Consumer Channel Growth
•Full-Year Outlook Raised On Both The Top- And Bottom-Line
___________________________________________________________________________

BROOMFIELD, COLORADO — April 30, 2026 — Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for all, today announced its first quarter 2026 financial results.

“We are pleased to have started the year with better-than-expected results, fueled by broad consumer relevance for both of our brands and disciplined execution against our strategy. We delivered enterprise revenue of over $900 million including growth in our direct-to-consumer channels for both brands. We are encouraged by strong consumer response to product newness across categories, supported by our high pace of innovation and consistent brand storytelling,” said Andrew Rees, Chief Executive Officer.

Mr. Rees continued, “Based on our first quarter performance, we are raising our full-year outlook on both the top- and bottom-line. We are focused on executing against our initiatives to drive diversified growth across both brands, channels, and markets, and we remain confident in the long-term health of the business.”

Amounts referred to as “Adjusted” or “Non-GAAP” are Non-GAAP measures and include adjustments that are described under the heading “Reconciliation of GAAP Measures to Non-GAAP Measures.” A reconciliation of these amounts to their GAAP counterparts is contained in the schedules below.

First Quarter 2026 Operating Results (Compared to the Same Period Last Year)

•Consolidated revenues were $921 million, a decrease of 1.7%, or 4.0% on a constant currency basis. Direct-to-consumer (“DTC”) revenues grew 12.1%, or 10.2% on a constant currency basis. Wholesale revenues decreased 9.9%, or 12.5% on a constant currency basis.
•Gross margin was 56.8% compared to 57.8%. Adjusted gross margin decreased 90 basis points to 56.9% compared to 57.8%.
•Selling, general, and administrative expenses (“SG&A”) of $322 million increased 1.1% from $319 million, and represented 35.0% of revenues compared to 34.0%. Adjusted SG&A remained approximately flat at $319 million, and represented 34.6% of revenues compared to 34.0%.
•Income from operations of $201 million decreased 9.9% from $223 million, resulting in operating margin of 21.8% compared to 23.8%. Adjusted income from operations of $206 million decreased 7.8% from $223 million, resulting in adjusted operating margin of 22.3% compared to 23.8%.
•Diluted earnings per share of $2.71 decreased 4.2% from diluted earnings per share of $2.83. Adjusted diluted earnings per share of $2.99 decreased 0.3% from $3.00.


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Balance Sheet and Cash Flow (March 31, 2026, as compared to March 31, 2025)

•Cash and cash equivalents were $131 million compared to $166 million.
•Inventories were $398 million compared to $391 million.
•Total borrowings were $1.34 billion compared to $1.48 billion.
•Capital expenditures were $18 million compared to $15 million.

Share Repurchase Activity

Subsequent to March 31, 2026 and through April 23, 2026, we repurchased 0.8 million shares of our common stock for $73.6 million. Following these repurchases, $673.2 million of share repurchase authorization remained available for future repurchases.

First Quarter 2026 Brand Summary (Compared to the Same Period Last Year)

•Crocs Brand: Revenues increased 0.8% to $767 million, or decreased 1.9% on a constant currency basis.
◦Channel
▪DTC revenues increased 12.9% to $322 million, or 10.6% on a constant currency basis.
▪Wholesale revenues decreased 6.5% to $446 million, or 9.4% on a constant currency basis.
◦Geography
▪North America revenues decreased 6.1% to $346 million, or 6.4% on a constant currency basis.
▪International revenues increased 7.2% to $421 million, or 2.3% on a constant currency basis.
•HEYDUDE Brand: Revenues decreased 12.3% to $154 million, or 13.2% on a constant currency basis.
◦Channel
▪DTC revenues increased 8.6% to $71 million or 8.4% on a constant currency basis.
▪Wholesale revenues decreased 24.7% to $83 million, or 26.0% on a constant currency basis.

Financial Outlook

Second Quarter 2026
For the second quarter of 2026, we expect:
•Revenues to be down slightly compared to the second quarter of 2025, at currency rates as of April 27, 2026.
◦Crocs Brand to be up approximately 1% to 3% compared to the second quarter of 2025.
◦HEYDUDE Brand to be down approximately 14% to 12% compared to the second quarter of 2025.
•Adjusted operating margin to be approximately 24.7%.
•Adjusted diluted earnings per share to be in the range of $4.15 to $4.35. Adjusted diluted earnings per share guidance does not assume any impact from potential future share repurchases.

Full Year 2026
For 2026, we expect:
•Revenues to be down approximately 1% to up 1% compared to full year 2025, up from our previous guidance of down 1% to up slightly, at currency rates as of April 27, 2026.
◦Crocs Brand to be flat to up approximately 2% compared to full year 2025.
◦HEYDUDE Brand to be down approximately 7% to 5% compared to full year 2025, up from our previous guidance of down 9% to 7%.
•Non-GAAP adjustments to be approximately $25 million primarily associated with our cost reduction initiatives.

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•Adjusted operating margin to expand modestly from 22.3%.
•GAAP effective tax rate to be approximately 23% and adjusted effective tax rate to be approximately 18%.
•Adjusted diluted earnings per share to be in the range of $13.20 to $13.75, up from our previous guidance range of $12.88 to $13.35. Adjusted diluted earnings per share guidance does not assume any impact from potential future share repurchases.
•Capital expenditures of $70 million to $80 million.

Conference Call Information

A conference call to discuss first quarter results is scheduled for today, Thursday, April 30, 2026, at 8:30 am ET. To receive conference call details, please register at the Investor Relations section of the Crocs website, investors.crocs.com. The webcast will also be available live and on replay through April 30, 2027, at this site.

About Crocs, Inc.:

Crocs, Inc. (Nasdaq: CROX), headquartered in Broomfield, Colorado, is a world leader in innovative casual footwear for all, combining comfort and style with a value that consumers know and love. The Company's brands include Crocs and HEYDUDE, and its products are sold in more than 85 countries through wholesale and direct-to-consumer channels. For more information on Crocs, Inc. visit investors.crocs.com. To learn more about our brands, visit www.crocs.com or www.heydude.com. Individuals can also visit https://investors.crocs.com/news-and-events/ and follow both Crocs and HEYDUDE on their social platforms.

Forward Looking Statements

This press release includes estimates, projections, and statements relating to our business plans, commitments, objectives, and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

These statements include, but are not limited to, statements regarding our financial condition, brand and liquidity outlook, and expectations regarding our future financial results, share repurchases, our strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, statements regarding future financial outlook and future profitability, cash flows, and brand strength, anticipated product portfolio and our ability to deliver sustained, highly profitable growth and create significant shareholder value. These statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include the factors described in our most recent Annual Report on Form 10-K under the heading "Risk Factors" and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.

All information in this document speaks only as of April 30, 2026. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise, except as required by applicable law.

Category:Investors

3

CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in thousands, except per share data)

Three Months Ended March 31,
20262025
Revenues
$921,457 $937,333 
Cost of sales
398,512 395,784 
Gross profit
522,945 541,549 
Selling, general and administrative expenses
322,101 318,575 
Income from operations
200,844 222,974 
Foreign currency gains (losses), net
(1,625)4,873 
Interest income
335 333 
Interest expense
(20,459)(22,766)
Other expense, net
(251)(475)
Income before income taxes
178,844 204,939 
Income tax expense
41,288 44,836 
Net income
$137,556 $160,103 
Net income per common share:
Basic
$2.74 $2.85 
Diluted
$2.71 $2.83 
Weighted average common shares outstanding:
Basic
50,282 56,110 
Diluted
50,707 56,502 



4

CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and par value amounts)
March 31,
2026		December 31,
2025
ASSETS
  
Current assets:
  
Cash and cash equivalents
$130,881 $130,354 
Accounts receivable, net of allowances of $26,303 and $28,136, respectively
442,320 278,191 
Inventories
397,557 368,687 
Income taxes receivable
2,443 32,782 
Other receivables
25,315 22,082 
Prepaid expenses and other assets
66,687 53,787 
Total current assets
1,065,203 885,883 
Property and equipment, net of accumulated depreciation of $222,974 and $209,873, respectively
236,874 238,191 
Intangible assets, net of accumulated amortization of $190,442 and $184,490, respectively
1,320,658 1,324,680 
Goodwill
404,662 404,689 
Deferred tax assets, net
920,050 935,054 
Restricted cash
3,467 3,557 
Right-of-use assets
345,137 338,669 
Other assets
47,363 44,027 
Total assets
$4,343,414 $4,174,750 
LIABILITIES AND STOCKHOLDERS’ EQUITY
  
Current liabilities:
  
Accounts payable
$242,474 $266,090 
Accrued expenses and other liabilities
259,430 300,959 
Income taxes payable
43,764 47,308 
Current borrowings
5,550 — 
Current operating lease liabilities
88,298 85,772 
Total current liabilities
639,516 700,129 
Deferred tax liabilities, net
902 882 
Long-term income taxes payable
640,521 649,057 
Long-term borrowings
1,330,271 1,230,885 
Long-term operating lease liabilities301,325 297,192 
Other liabilities
3,489 3,322 
Total liabilities
2,916,024 2,881,467 
Commitments and contingencies
Stockholders’ equity:
  
Common stock, par value $0.001 per share, 250.0 million shares authorized, 110.9 million and 110.7 million issued, 50.4 million and 50.2 million outstanding, respectively
111 111 
Treasury stock, at cost, 60.5 million and 60.5 million shares, respectively
(3,042,686)(3,040,416)
Additional paid-in capital
907,212 896,605 
Retained earnings
3,618,194 3,480,638 
Accumulated other comprehensive loss
(55,441)(43,655)
Total stockholders’ equity
1,427,390 1,293,283 
Total liabilities and stockholders’ equity
$4,343,414 $4,174,750 

5

CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Three Months Ended March 31,
20262025
Cash flows from operating activities:
Net income
$137,556 $160,103 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
20,240 18,537 
Operating lease cost
28,053 24,186 
Share-based compensation
10,607 8,777 
Asset impairments
3,301 — 
Deferred taxes
954 13,589 
Other non-cash items
4,568 (355)
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities:
Accounts receivable
(165,459)(183,607)
Inventories
(30,959)(36,633)
Prepaid expenses and other assets
(20,246)3,516 
Accounts payable, accrued expenses and other liabilities
(64,574)(71,094)
Right-of-use assets and operating lease liabilities
(27,786)(23,901)
Income taxes
22,811 19,647 
Cash used in operating activities
(80,934)(67,235)
Cash flows from investing activities:
Purchases of property, equipment, and software
(18,000)(15,375)
Cash used in investing activities
(18,000)(15,375)
Cash flows from financing activities:
Proceeds from borrowings
178,550 195,000 
Repayments of borrowings
(76,000)(65,000)
Repurchases of common stock
— (60,866)
Repurchases of common stock for tax withholding
(2,455)(3,310)
Cash provided by financing activities
100,095 65,824 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
(724)2,845 
Net change in cash, cash equivalents, and restricted cash
437 (13,941)
Cash, cash equivalents, and restricted cash—beginning of period
133,911 183,678 
Cash, cash equivalents, and restricted cash—end of period
$134,348 $169,737 

6

CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America (“GAAP”), we present "Non-GAAP gross profit," “Non-GAAP gross margin,” “Non-GAAP gross margin by brand,” "Non-GAAP selling, general, and administrative expenses,” “Non-GAAP selling, general and administrative expenses as a percent of revenues,” “Non-GAAP income from operations,” “Non-GAAP operating margin,” “Non-GAAP income before income taxes,” “Non-GAAP income tax expense,” “Non-GAAP effective tax rate,” “Non-GAAP net income,” and “Non-GAAP basic and diluted net income per common share," which are non-GAAP financial measures. We also present future period guidance for “Non-GAAP operating margin,” “Non-GAAP effective tax rate,” “Non-GAAP diluted earnings per share,” and “Free cash flow.” We also present a long-term target for ‘Net leverage.’ Non-GAAP results exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented.

We also present certain information related to our current period results of operations through “constant currency,” which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period to enhance the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.

Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures, in addition to corresponding GAAP measures, are useful to investors and other users of our condensed consolidated financial statements as an additional tool for evaluating operating performance and trends by providing meaningful information about operations compared to our peers by excluding the impacts of various differences. The calculation of our non-GAAP financial metrics may vary from company to company. As a result, our calculation of these metrics may not be comparable to similarly titled metrics used by other companies.

Management believes Non-GAAP gross profit, Non-GAAP gross margin, and Non-GAAP gross margin by brand are useful performance measures for investors because they provide investors with a means of comparing these measures between periods without the impact of certain expenses that we believe are not indicative of our routine cost of sales. Our routine cost of sales includes core product costs and distribution expenses primarily related to receiving, inspecting, warehousing, and packaging product and transportation costs associated with delivering products from distribution centers. Costs not indicative of our routine cost of sales may or may not be recurring in nature and include costs to expand and transition to new distribution centers.

Management believes Non-GAAP selling, general and administrative expenses and Non-GAAP selling, general and administrative expenses as a percent of revenues are useful performance measures for investors because they provide a more meaningful comparison to prior periods and may be indicative of the level of such expenses to be incurred in future periods. These measures exclude the impact of certain expenses not related to our normal operations that are expected to be non-recurring in nature, such as impairment charges.

Non-GAAP income from operations and Non-GAAP operating margin reflect the impact of Non-GAAP gross profit and Non-GAAP selling, general, and administrative expenses, as discussed above. We believe these are useful performance measures for investors because they provide a basis to compare performance in the period to prior periods.

Non-GAAP income before income taxes reflects the impact of Non-GAAP income from operations, as discussed above. We believe this is a useful performance measure for investors because it provides a basis to compare performance in the period to prior periods.

Management believes Non-GAAP income tax expense is a useful performance measure for investors because it provides a basis to compare our tax rates to historical tax rates, and because the adjustment is necessary in order to calculate Non-GAAP net income.

Management believes Non-GAAP effective tax rate is a useful performance measure for investors because it provides an ongoing effective tax rate that they can use for historical comparisons and forecasting.

Management believes Non-GAAP net income is a useful performance measure for investors because it focuses on underlying operating results and trends and improves the comparability of our results to prior periods. This measure reflects the impact of

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Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.

Management believes Non-GAAP basic and diluted net income per common share are useful performance measures for investors because they focus on underlying operating results and trends and improve the comparability of our results to prior periods. These measures reflect the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.

Management believes Net leverage is a useful performance measure for investors because it provides a measure of our financial strength and liquidity.

Free cash flow is calculated as ‘Cash provided by operating activities’ less ‘Purchases of property, equipment, and software.’ Management believes free cash flow is useful for investors because it provides a clear measure of our ability to generate cash for discretionary uses such as funding growth opportunities, repurchasing shares, and reducing debt.

For the three months ended March 31, 2026, management believes it is helpful to evaluate our results excluding the impacts of various adjustments relating to special or non-recurring items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

8

CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(UNAUDITED)

Non-GAAP gross profit and gross margin reconciliation:
Three Months Ended March 31,
20262025
(in thousands)
GAAP revenues$921,457 $937,333 
GAAP gross profit$522,945 $541,549 
Distribution centers (1)
1,377 — 
Other70 — 
Total adjustments1,447 — 
Non-GAAP gross profit$524,392 $541,549 
GAAP gross margin
56.8 %57.8 %
Non-GAAP gross margin
56.9 %57.8 %
(1) Relates to the transition away from a third-party logistics provider for the HEYDUDE Brand and software transition costs at our Crocs Brand distribution center in Dayton, Ohio.

Non-GAAP gross margin reconciliation by brand:

Crocs Brand:
Three Months Ended March 31,
20262025
GAAP Crocs Brand gross margin59.5 %60.7 %
Non-GAAP adjustments:
Distribution centers (1)
less than 0.1%— %
Other
less than 0.1%— %
Non-GAAP Crocs Brand gross margin59.5 %60.7 %
(1) Represents software transition costs at our distribution center in Dayton, Ohio.

HEYDUDE Brand:
Three Months Ended March 31,
20262025
GAAP HEYDUDE Brand gross margin43.9 %46.6 %
Non-GAAP adjustments:
Distribution centers (1)
0.6 %— %
Non-GAAP HEYDUDE Brand gross margin44.5 %46.6 %
(1) Relates to the transition away from a third-party logistics provider.


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Non-GAAP selling, general and administrative reconciliation:
Three Months Ended March 31,
20262025
(in thousands)
GAAP revenues$921,457 $937,333 
GAAP selling, general and administrative expenses$322,101 $318,575 
Impairment of leasehold improvement assets (1)
(3,301)— 
Charges incurred in connection with cost savings initiatives
(1,659)— 
Severance costs (2)
1,570 — 
Total adjustments(3,390)— 
Non-GAAP selling, general and administrative expenses (3)
$318,711 $318,575 
GAAP selling, general and administrative expenses as a percent of revenues35.0 %34.0 %
Non-GAAP selling, general and administrative expenses as a percent of revenues34.6 %34.0 %
(1) Represents impairment charges for certain HEYDUDE leasehold improvement assets.
(2) Represents a change in estimate in the three months ended March 31, 2026, for severance costs recorded as of December 31, 2025.
(3) Non-GAAP selling, general and administrative expenses are presented gross of tax.

Non-GAAP income from operations and operating margin reconciliation:
Three Months Ended March 31,
20262025
(in thousands)
GAAP revenues$921,457 $937,333 
GAAP income from operations
$200,844 $222,974 
Non-GAAP gross profit adjustments (1)
1,447 — 
Non-GAAP selling, general and administrative expenses adjustments (2)
3,390 — 
Non-GAAP income from operations$205,681 $222,974 
GAAP operating margin21.8 %23.8 %
Non-GAAP operating margin22.3 %23.8 %
(1) See 'Non-GAAP gross profit and gross margin reconciliation' above for more details.
(2) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more details.


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Non-GAAP income tax expense (benefit) and effective tax rate reconciliation:
Three Months Ended March 31,
20262025
(in thousands)
GAAP income from operations
$200,844 $222,974 
GAAP income before income taxes
178,844 204,939 
Non-GAAP income from operations (1)
$205,681 $222,974 
GAAP non-operating income (expenses):
Foreign currency gains (losses), net(1,625)4,873 
Interest income335 333 
Interest expense(20,459)(22,766)
Other income (expense), net(251)(475)
Non-GAAP income before income taxes$183,681 $204,939 
GAAP income tax expense$41,288 $44,836 
Tax effect of non-GAAP operating adjustments133 — 
Impact of intra-entity IP transactions (2)
(9,179)(9,572)
Non-GAAP income tax expense$32,242 $35,264 
GAAP effective income tax rate23.1 %21.9 %
Non-GAAP effective income tax rate17.6 %17.2 %
(1) See ‘Non-GAAP income from operations and operating margin reconciliation’ above for more details.
(2) In the fourth quarter of 2024, and previously in 2023, 2021, and 2020, we made changes to our international legal structure, including an intra-entity transaction related to certain intellectual property rights, primarily to align with current and future international operations. The transactions resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the current period impact of these transactions.

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Non-GAAP net income per share reconciliation:
Three Months Ended March 31,
20262025
(in thousands, except per share data)
Numerator:
GAAP net income
$137,556 $160,103 
Non-GAAP gross profit adjustments (1)
1,447 — 
Non-GAAP selling, general and administrative expenses adjustments (2)
3,390 — 
Tax effect of non-GAAP adjustments (3)
9,046 9,572 
Non-GAAP net income
$151,439 $169,675 
Denominator:
GAAP weighted average common shares outstanding - basic
50,282 56,110 
Plus: GAAP dilutive effect of stock options and unvested restricted stock units425 392 
GAAP weighted average common shares outstanding - diluted
50,707 56,502 
GAAP net income per common share:
Basic$2.74 $2.85 
Diluted$2.71 $2.83 
Non-GAAP net income per common share:
Basic$3.01 $3.02 
Diluted$2.99 $3.00 
(1) See 'Non-GAAP gross profit and gross margin reconciliation' above for more information.
(2) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more information.
(3) See ‘Non-GAAP income tax expense (benefit) and effective tax rate reconciliation’ above for more information.

Free cash flow reconciliation:
Three Months Ended March 31,
20262025
(in thousands)
Cash used in operating activities
$(80,934)$(67,235)
Purchases of property, equipment, and software
(18,000)(15,375)
Free cash flow$(98,934)$(82,610)

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RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL GUIDANCE

Full Year 2026:
Approximately:
Non-GAAP operating margin reconciliation:
GAAP operating margin
>21.7%
Non-GAAP adjustments (1)
0.6%
Non-GAAP operating margin
>22.3%
Non-GAAP effective tax rate reconciliation:
GAAP effective tax rate
23%
Non-GAAP adjustments (2)
(5)%
Non-GAAP effective tax rate
18%
Non-GAAP diluted earnings per share reconciliation:
GAAP diluted earnings per share
$12.01 to $12.56
Non-GAAP adjustments (1)(2)
$1.19
Non-GAAP diluted earnings per share
$13.20 to $13.75
(1) During 2026, we expect to incur approximately $25 million of non-GAAP adjustments, primarily associated with our cost reduction initiatives.
(2) In the fourth quarter of 2024, and previously in 2023, 2021, and 2020, we made changes to our international legal structure, including an intra-entity transaction related to certain intellectual property rights, primarily to align with current and future international operations. The transactions resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the full year 2026 impact of these transactions.


Non-GAAP Financial Guidance

Our forward-looking guidance for consolidated “adjusted operating margin” and “adjusted diluted earnings per share” represents non-GAAP financial measures that excludes or otherwise has been adjusted for special items from our U.S. GAAP financial statements. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment.

While we are able to estimate full year non-GAAP adjustments, we are unable to reconcile forward-looking adjusted measures to their nearest U.S. GAAP measure quarter-by-quarter because we are unable to predict the timing of these adjustments with a reasonable degree of certainty. By their very nature, special and other non-core items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures for the guidance related to the second quarter of 2026.


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CROCS, INC. AND SUBSIDIARIES
REVENUES BY SEGMENT, CHANNEL, AND GEOGRAPHY
(UNAUDITED)
Three Months Ended March 31,
% Change
Constant Currency
% Change (1)
Favorable (Unfavorable)
20262025
Q1 2026-2025
Q1 2026-2025
($ in thousands)
Crocs Brand:
North America:
Wholesale$138,397 $170,682 (18.9)%(19.2)%
Direct-to-consumer207,529 197,835 4.9 %4.6 %
Total North America (2)
345,926 368,517 (6.1)%(6.4)%
International:
Wholesale307,425 306,122 0.4 %(3.9)%
Direct-to-consumer114,065 86,969 31.2 %24.3 %
Total International421,490 393,091 7.2 %2.3 %
Total Crocs Brand$767,416 $761,608 0.8 %(1.9)%
Crocs Brand:
Wholesale$445,822 $476,804 (6.5)%(9.4)%
Direct-to-consumer321,594 284,804 12.9 %10.6 %
Total Crocs Brand767,416 761,608 0.8 %(1.9)%
HEYDUDE Brand:
Wholesale83,402 110,693 (24.7)%(26.0)%
Direct-to-consumer70,639 65,032 8.6 %8.4 %
Total HEYDUDE Brand (3)
154,041 175,725 (12.3)%(13.2)%
Total consolidated revenues$921,457 $937,333 (1.7)%(4.0)%
(1) Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See ‘Reconciliation of GAAP Measures to Non-GAAP Measures’ above for more information.
(2) North America includes the United States and Canada.
(3) The vast majority of HEYDUDE Brand revenues are derived from North America.

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Source: View Original Filing on SEC EDGAR

FAQ

How did Crocs (CROX) perform financially in Q1 2026?

Crocs generated $921.5 million in Q1 2026 revenue, down 1.7% year over year, with GAAP diluted EPS of $2.71 and adjusted diluted EPS of $2.99. Operating margin was 21.8%, and adjusted operating margin reached 22.3%.

What were Crocs (CROX) brand and HEYDUDE brand results in Q1 2026?

The Crocs brand delivered $767.4 million in revenue, up 0.8% year over year, while HEYDUDE revenue declined 12.3% to $154.0 million. HEYDUDE’s wholesale sales dropped sharply, partly offset by growth in direct-to-consumer sales.

How is Crocs (CROX) shifting between wholesale and direct-to-consumer channels?

Direct-to-consumer revenue grew 12.1% in Q1 2026, while wholesale revenue fell 9.9%. For the Crocs brand, DTC rose 12.9% and wholesale declined 6.5%. HEYDUDE DTC increased 8.6%, but wholesale dropped 24.7%, highlighting a mix shift toward DTC.

What guidance did Crocs (CROX) provide for full-year 2026?

Crocs expects 2026 revenue to range from down 1% to up 1% versus 2025. Adjusted operating margin is projected to expand modestly from 22.3%, and adjusted diluted EPS is guided between $13.20 and $13.75, above prior expectations.

How did Crocs (CROX) manage debt, cash, and share repurchases?

Total borrowings were $1.34 billion at March 31, 2026, down from $1.48 billion a year earlier. Cash and cash equivalents were $130.9 million. After quarter end, Crocs repurchased 0.8 million shares for $73.6 million, with $673.2 million remaining under authorization.

What were Crocs (CROX) margins and non-GAAP adjustments in Q1 2026?

GAAP gross margin was 56.8% and non-GAAP gross margin 56.9%. GAAP SG&A was $322.1 million, or 35.0% of revenue, while non-GAAP SG&A was $318.7 million, or 34.6%. Non-GAAP operating income was $205.7 million, yielding a 22.3% operating margin.

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