Tandy Leather Factory earns $0.06 a share in Q3 2026
Quarter-end cash was $5.7 million; Tandy linked the decline to $6.0 million of first-quarter dividends and approximately $4.4 million in inventory, POS and store-related spending.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Tandy Leather Factory (TLF) reported third-quarter fiscal 2026 sales of $18.5 million, up from $17.3 million in third-quarter 2025, and gross profit of $11.6 million, compared with $10.2 million. The company said most of these gains came from operational improvements. Basic and diluted net income was $0.06 per share, versus a net loss of $(0.17) per share in the prior-year quarter; net income was $0.5 million and Adjusted EBITDA was $0.9 million.
Cash and cash equivalents were $5.7 million as of September 30, 2026, down from $16.1 million as of December 31, 2025. Tandy said the decrease reflected $6.0 million of dividends paid in the first quarter of 2026 and approximately $4.4 million related to increased inventory purchases, a new POS system and capital investments in new and existing stores. The company opened a store in Charleston, South Carolina, in the third quarter, after opening one in Waco, Texas, in the second quarter.
3 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter sales reached $18.5 million, up from $17.3 million.
- Moderate pointGross profit was $11.6 million, up from $10.2 million.
- Moderate pointBasic and diluted per-share results were $0.06 income versus $(0.17) loss.
Negative
- None.
Filing Explained
This 8-K accompanies Tandy Leather Factory’s
8-K Event Classification
2 items: 2.02, 9.01
2 items
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, or exhibit attachments filed with this report.
Key Figures
Sales: $18.5 million
Gross profit: $11.6 million
Basic and diluted net income per share: $0.06 per share
+5 more
8 metrics
Sales
$18.5 million
Third quarter 2026; $17.3 million in third quarter 2025
Gross profit
$11.6 million
Third quarter 2026; $10.2 million in third quarter 2025
Basic and diluted net income per share
$0.06 per share
Third quarter 2026; $(0.17) per share of net loss in the prior-year quarter
Net income
$0.5 million
Quarter ended September 30, 2026
Adjusted EBITDA
$0.9 million
Quarter ended September 30, 2026
Cash and cash equivalents
$5.7 million
As of September 30, 2026; $16.1 million as of December 31, 2025
Dividends paid
$6.0 million
First quarter 2026
Inventory, POS system and store-related amount
Approximately $4.4 million
Related to increased inventory purchases, a new POS system and capital investments in stores
Key Terms
Adjusted EBITDA, non-GAAP financial measure, stock-based compensation, POS system
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA is a non-GAAP financial measure"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP financial measure financial
"should not be considered in isolation or as a substitute for net income"
A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.
stock-based compensation financial
"Stock-based compensation"
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.
POS system technical
"investment in a new POS system"
A POS system (point-of-sale system) is the combined hardware and software used to process customer transactions in stores, restaurants and other sales environments—typically including a register or terminal, card reader, receipt printer and sales/inventory software. Investors care because it captures real-time sales, payment and inventory data; like a business’s cash register and brain rolled into one, changes or problems can directly affect revenue, efficiency and customer experience, which influence profitability and valuation.
Earnings Snapshot
Sales: $18.5 million
Third quarter of fiscal year 2026
Sales
$18.5 million
Up from $17.3 million in third-quarter 2025
Gross profit
$11.6 million
Up from $10.2 million in third-quarter 2025
Basic and diluted net income per share
$0.06 per share
Versus $(0.17) per share of basic and diluted net loss in the prior-year quarter
Net income
$0.5 million
Adjusted EBITDA
$0.9 million
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were TLF's third-quarter 2026 sales and gross profit?
TLF reported third-quarter 2026 sales of $18.5 million and gross profit of $11.6 million. Sales were $17.3 million and gross profit was $10.2 million in the third quarter of 2025.
How many stores does Tandy Leather Factory operate?
Tandy Leather Factory distributed products through 102 stores: 93 in the United States, eight in Canada and one in Spain.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
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(Former Name or Former Address, if Changed Since Last Report)
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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 (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of
the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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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Results of Operations and Financial Condition
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On November 10, 2026, Tandy Leather Factory, Inc. (the “Company”) filed its Quarterly Report on Form 10-Q and issued a press release (the “Press
Release”) announcing its financial results for the third quarter of fiscal year 2026. A copy of the Press Release is attached as Exhibit 99.1.
The information furnished pursuant to Item 2.02 of this report and the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of
the Securities Exchange Act of 1934 as amended (the “Exchange Act”), or otherwise subject to liabilities under that section, nor shall they be deemed incorporated by reference in any filing of the Company with the Securities and Exchange Commission
under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.
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Financial Statements and Exhibits.
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(d) Exhibits
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No.
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Exhibit
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99.1
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Press Release dated November 10, 2026
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104
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Cover page interactive data file (embedded within the Inline XBRL document)
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Forward Looking Statements
Certain statements contained in this report and other materials the
Company files with the SEC, as well as information included in oral statements or other written statements made or to be made by the Company, other than statements of historical fact, are forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as “may,” “will,” “could,” “should,” “anticipate,” “believe,”
“budgeted,” “expect,” “intend,” “plan,” “project,” “potential,” “estimate,” “continue,” “outlook,” “forecast” or “future,” variations thereof or other similar statements. Please refer to the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q for information concerning these and other uncertainties that could negatively impact the Company. The Company assumes no obligation to update or otherwise revise its
forward-looking statements, except as required by law.
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.
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TANDY LEATHER FACTORY, INC.
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Date: November 10, 2026
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By: /s/ Johan Hedberg
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Johan Hedberg, Chief Executive Officer
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Exhibit 99.1
FOR IMMEDIATE RELEASE
November 10, 2026
Tandy Leather Factory Reports Third Quarter 2026 Results
BENBROOK, TEXAS – November 10, 2026 (GLOBE NEWSWIRE) – Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the third fiscal quarter of
2026.
Highlights from third quarter 2026:
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Revenues were $18.5 million, up 7.3% from 2025
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Generated operating income of $0.6 million, up 181.9% from 2025
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Net income of $0.5 million versus net loss of $1.4 million in 2025
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Gross margin of 62.4%, up from 58.9% in 2025
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Adjusted EBITDA of $0.9 million
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Ended quarter with $5.7 million of cash and cash equivalents
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Tandy Leather Factory’s third quarter sales were $18.5 million in 2026, up from $17.3 million in 2025. Third quarter 2026 gross profit was $11.6 million, up
from $10.2 million in 2025. The majority of these gains came from operational improvements. As of September 30, 2026, the Company held $5.7 million of cash and
cash equivalents, down from $16.1 million as of December 31, 2025. This decrease reflects $6.0 million in dividends paid to shareholders in Q1 2026 and approximately $4.4 million related to an increase in inventory purchases to support sales,
investment in a new POS system, and some capital investments in new stores in Waco, Texas, and Charleston, South Carolina as well as in existing stores. The Company had basic and diluted net income in the quarter of $0.06 per share, versus $(0.17)
per share of basic and diluted net loss in the prior year.
Johan Hedberg, Chief Executive Officer of the Company, said,
“We are happy to have continued our growth from the first half of the year with another strong quarter. We saw growth in both retail and e-commerce channels and
considerably increased our operating income. Following our new store opening in Waco, Texas in the second quarter, we continued our store expansion in the third quarter with a new opening in Charleston, South Carolina. During the third quarter, we
continued to invest in our store fleet, our e-commerce channel and operations but our sales and margin growth more than offset these expenses, driving strong increases in profit from operations.”
Investors are encouraged to send their questions to the Company’s investor relations email at investorrelations@tandyleather.com.
Non-GAAP Financial Measures: Adjusted EBITDA is a non-GAAP financial measure, defined as net income before interest income, income tax provision, depreciation
and amortization, and stock-based compensation. Management believes Adjusted EBITDA is useful to investors in evaluating the Company’s operating performance. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or
other measures prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies. A reconciliation of net income to Adjusted EBITDA (in millions) is provided below.
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Quarter ended
September 30, 2026
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Net income
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$
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0.1
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Stock-based compensation
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0.1
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Adjusted EBITDA
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$
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0.9
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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 102 stores, 93 stores in the United States, eight stores in Canada and one store 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: https://tandyleather.irpass.com/Email_Alerts.
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; changes in tariff rates and the timing and amount of any tariff refunds, 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.