Tandy Leather Factory (TLF) returns to profit with higher Q2 2026 margins
Rhea-AI Filing Summary
Tandy Leather Factory, Inc. reported second quarter 2026 results, furnishing a press release alongside its quarterly report. Sales were $18.0 million, slightly above $17.8 million in 2025, while gross profit rose to $11.7 million from $10.6 million, indicating stronger profitability on similar revenue.
The company generated net income of $0.05 per share for the quarter, compared with a basic and diluted net loss of $0.02 per share a year earlier. EBITDA for the quarter was $0.9, based on net income of $0.4, plus depreciation and amortization of $0.3, income tax provision of $0.2, interest income of $(0.1), and stock-based compensation of $0.1.
As of June 30, 2026, cash and cash equivalents were $6.4 million, down from $16.1 million at December 31, 2025, reflecting $6.0 million in dividends paid in the first quarter and approximately $4.0 million of spending on inventory, a new POS system, a new Waco, Texas store, and other capital investments. Management highlighted sales growth across retail and e-commerce, higher gross margins driven by pricing, and higher operating expenses tied to compensation, technology, a new loyalty program, and occupancy costs.
Positive
- Gross profit increased to $11.7 million from $10.6 million, more than a 10% rise year-over-year, indicating improved profitability despite only modest sales growth.
- Net income turned positive to $0.05 per share in the quarter, compared with a basic and diluted net loss of $0.02 per share in the prior year period.
- EBITDA reached $0.9 for the quarter, supported by higher gross margin and operating income improvements versus the prior year.
Negative
- Cash and cash equivalents fell to $6.4 million from $16.1 million over six months, driven by $6.0 million of dividends and roughly $4.0 million of investment-related outflows.
- Operating expenses increased year-over-year due to higher compensation, technology investments, a new loyalty program, and higher occupancy costs, partially offsetting margin gains.
Filing Explained
The quarterly results are reported through the filed Form 10-Q, while this Form 8-K furnishes the press release under Item 2.02; the release and Item 2.02 information are not treated as filed or incorporated by reference into other SEC filings unless expressly referenced.
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, and exhibit attachments filed with this report.
Key Figures
Sales: $18.0 million
Gross profit: $11.7 million
Net income per share: $0.05 per share
+5 more
8 metrics
Sales
$18.0 million
Second quarter 2026 sales, compared with $17.8 million in 2025
Gross profit
$11.7 million
Second quarter 2026 gross profit, up from $10.6 million in 2025
Net income per share
$0.05 per share
Basic and diluted net income for the second quarter of 2026
Prior-year EPS
($0.02) per share
Basic and diluted net loss per share in the prior-year quarter
Cash and cash equivalents
$6.4 million
Balance as of June 30, 2026
Cash and cash equivalents prior
$16.1 million
Balance as of December 31, 2025
Dividends paid
$6.0 million
Dividends paid to shareholders in Q1 2026
EBITDA
$0.9
Quarter ended June 30, 2026, based on reconciliation provided
Key Terms
EBITDA, gross margin, stock-based compensation, Nasdaq Capital Market, +1 more
5 terms
EBITDA financial
"EBITDA | | $ | 0.9"
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
gross margin financial
"Gross margin also increased, primarily due to better pricing"
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
stock-based compensation financial
"Stock-based compensation | | | 0.1"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
Nasdaq Capital Market market
"Its common stock trades on the Nasdaq Capital Market under the symbol"
The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.
forward-looking statements regulatory
"may contain statements regarding future events ... considered "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.
Earnings Snapshot
Sales: $18.0 million
quarter ended June 30, 2026
Sales
$18.0 million
up from $17.8 million in 2025
Gross profit
$11.7 million
up from $10.6 million in 2025
Net income per share
$0.05 per share
compared with ($0.02) per share in prior year
EBITDA
$0.9
based on reconciliation from net income of $0.4
Cash and cash equivalents
$6.4 million
down from $16.1 million at December 31, 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Tandy Leather Factory (TLF) perform in the second quarter of 2026?
Tandy Leather Factory reported second quarter 2026 sales of $18.0 million, up from $17.8 million in 2025, and gross profit of $11.7 million versus $10.6 million. The company generated net income of $0.05 per share, reversing a loss of $0.02 per share.
What happened to Tandy Leather Factory (TLF) cash balance by June 30, 2026?
As of June 30, 2026, Tandy Leather Factory held $6.4 million in cash and cash equivalents, down from $16.1 million at December 31, 2025. The decline reflects $6.0 million in dividends and about $4.0 million in inventory, POS, and store investments.
Did Tandy Leather Factory (TLF) return to profitability in Q2 2026?
Yes. Tandy Leather Factory reported basic and diluted net income of $0.05 per share in the second quarter of 2026, compared with a basic and diluted net loss of $0.02 per share in the second quarter of 2025.
What was Tandy Leather Factory (TLF) EBITDA for the quarter ended June 30, 2026?
For the quarter ended June 30, 2026, Tandy Leather Factory reported EBITDA of $0.9. This was derived from net income of $0.4, plus depreciation and amortization of $0.3, income tax provision of $0.2, stock-based compensation of $0.1, and interest income of $(0.1).
What factors drove Tandy Leather Factory (TLF) margin and expense trends in Q2 2026?
Management noted that gross margin increased, primarily from better product pricing, while operating expenses rose from higher compensation, investments in a new POS system, launching a loyalty program, and higher occupancy costs, including rent for the Fort Worth headquarters and flagship store.
How is Tandy Leather Factory (TLF) investing in its operations during 2026?
Tandy Leather Factory spent about $4.0 million on increased inventory, a new POS system, and capital investments in a new Waco, Texas store and other existing stores, contributing to the reduction in cash from $16.1 million to $6.4 million.
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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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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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 August 11, 2026, Tandy Leather Factory, Inc. (the “Company”) issued a press release (the “Press Release”) and filed its Quarterly Report on Form
10-Q announcing its financial results for the second 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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No.
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Exhibit
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99.1
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Press Release dated August 11, 2026
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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 for additional 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: August 11, 2026
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By:
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/s/ Johan Hedberg |
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Johan Hedberg, Chief Executive Officer | |
Exhibit 99.1
FOR IMMEDIATE RELEASE
August 11, 2026
Tandy Leather Factory Reports Second Quarter 2026 Results
BENBROOK, TEXAS – August 11, 2026 (GLOBE NEWSWIRE) – Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the second fiscal quarter of 2026.
Highlights from second quarter 2026:
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Revenues were $18.0 million, up 1.5% from 2025
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Generated operating income of $0.5 million up 722.9% from 2025
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Net income of $0.4 million versus net loss of ($0.2) million in 2025
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Gross margins of 64.8%, up from 59.5% in 2025
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EBITDA from operations of $0.9 million
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Ended quarter with $6.4 million of cash and cash equivalents
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Tandy Leather Factory’s second quarter sales were $18.0 million in 2026, up from $17.8 million in 2025. Second quarter 2026 gross profit was $11.7 million, up from
$10.6 million in 2025. As of June 30, 2026, the Company held $6.4 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 $4.0 million related to an increase in inventory purchases to support sales, investment in a new POS system, and some capital investments in our new store we opened in Waco, Texas during the second quarter of 2026 and other
existing stores. The Company had basic and diluted net income in the quarter of $0.05 per share, versus $0.02 basic and diluted net loss per share in the prior year.
Johan Hedberg, Chief Executive Officer of the Company, said, “We are happy to have delivered another growth quarter with sales gains across both retail and e-commerce
channels and a considerable improvement in operating income versus the prior year. Gross margin also increased, primarily due to better pricing of our products. Operating expenses increased year-over-year, reflecting higher compensation,
investments in a new POS system, launching a new Loyalty program to further improve the customer experience, and occupancy costs including rent for our headquarters and flagship store in Fort Worth. Nonetheless, our sales increases and margin
growth more than offset those expenses, driving a strong improvement in profit from operations.”
Investors are encouraged to send their questions to the Company’s investor relations hotline at investorrelations@tandyleather.com.
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Quarter ended
June 30, 2026
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Net income
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$
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0.4
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Depreciation and amortization
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0.3
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Interest income
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(0.1
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Income tax provision
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0.2
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Stock-based compensation
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0.1
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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 101 stores located in 40 US states and six Canadian provinces, including one store located in Spain. Its common stock trades on the
Nasdaq Capital Market under the symbol “TLF”. To be included on Tandy Leather Factory's email distribution list, go to: http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
Contact: Johan Hedberg, Tandy Leather Factory, Inc., (817) 872-3200 or johan.hedberg@tandyleather.com
This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and
results that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and
uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and
resultant price fluctuations; change in customer preferences for our product, and other factors disclosed in our filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and except
as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.