Winmark (NASDAQ: WINA) 2025 earnings rise on higher royalty revenue
Rhea-AI Filing Summary
Winmark Corporation reported higher results for the year ended December 27, 2025. Net income rose to $41,654,100, or $11.30 per diluted share, compared with $39,954,200, or $10.89 per diluted share, in 2024. Revenue increased to $86,055,700 from $81,289,100, driven mainly by higher royalties and leasing income.
Fourth-quarter 2025 net income was $9,959,900 ($2.69 diluted EPS), up from $9,583,100 ($2.60 diluted EPS) a year earlier. Net cash provided by operating activities was $44,896,800, while dividends paid totaled $49,112,700. At December 27, 2025, Winmark had 1,378 franchises in operation and over 2,800 available territories.
Positive
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Negative
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Insights
Winmark posts steady 2025 growth with strong cash generation.
Winmark Corporation delivered modest year-over-year increases in revenue and earnings for 2025. Net income rose to $41.65M and revenue reached $86.06M, with royalties remaining the primary revenue driver and leasing income also growing versus 2024.
Profitability stayed solid, with income from operations of $54.59M. Cash flow from operations of $44.90M comfortably supported significant shareholder returns, including dividends of $49.11M and share repurchases of $2.42M, while debt levels on the line of credit and notes payable were largely unchanged.
The franchise base continued to expand, with 1,378 franchises open and 82 awarded but not yet operating as of December 27, 2025. Future filings may clarify how ongoing investments in marketing, technology and innovation influence royalty growth and system-wide franchise performance.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
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:
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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).
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Item 2.02Results of Operations and Financial Condition
On February 18, 2026, Winmark Corporation (the “Company”) announced in a press release its results of operations and financial condition for the year ended December 27, 2025. A copy of the press release is attached as Exhibit 99.1 of this Current Report on Form 8-K.
Item 7.01Regulation FD Disclosure
On February 18, 2025, the Company announced in a press release its results of operations and financial condition for the year ended December 27, 2025. A copy of the press release is attached as Exhibit 99.1 of this Current Report on Form 8-K.
Item 9.01Financial Statements and Exhibits
(d)Exhibits
99.1 | Year End Results Press Release dated February 18, 2026 | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document and incorporated as Exhibit 101) |
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.
WINMARK CORPORATION | ||
Date: February 18, 2026 | By: | /s/ Anthony D. Ishaug |
Anthony D. Ishaug | ||
Chief Financial Officer and Treasurer | ||
Exhibit 99.1
Contact:Anthony D. Ishaug
763/520-8500
FOR IMMEDIATE RELEASE
WINMARK CORPORATION ANNOUNCES
YEAR END RESULTS
Minneapolis, MN (February 18, 2026) - Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 27, 2025 of $41,654,100 or $11.30 per share diluted compared to net income of $39,954,200 or $10.89 per share diluted in 2024. The fourth quarter 2025 net income was $9,959,900 or $2.69 per share diluted compared to net income of $9,583,100 or $2.60 per share diluted for the same period last year. Revenues for the year ended December 27, 2025 were $86,055,700, up from $81,289,100 in 2024.
“During the year, Winmark made significant investments in marketing, technology, and innovation. We will continue to build a strong foundation in these areas to support our franchisees and enhance our shared business model.” Commented Brett D. Heffes, Chair and Chief Executive Officer.
Winmark - the Resale Company®, is a nationally recognized franchisor focused on sustainability and small business formation. We champion and guide entrepreneurs interested in operating one of our award winning resale franchises: Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. At December 27, 2025, there were 1,378 franchises in operation and over 2,800 available territories. An additional 82 franchises have been awarded but are not open.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to future events or the future financial performance of the Company. Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated. Because actual result may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.
WINMARK CORPORATION
CONDENSED BALANCE SHEETS
(Unaudited)
| | December 27, 2025 | | December 28, 2024 | ||
ASSETS | ||||||
Current Assets: | | | | | | |
Cash and cash equivalents | | $ | 10,295,700 | | $ | 12,189,800 |
Restricted cash | | | 165,000 | | | 140,000 |
Receivables, net | | | 1,483,500 | | | 1,336,400 |
Income tax receivable | | | 463,600 | | | 96,400 |
Inventories | | | 362,500 | | | 397,600 |
Prepaid expenses | | | 1,325,700 | | | 1,205,400 |
Total current assets | | | 14,096,000 | | | 15,365,600 |
| | | | | | |
Property and equipment, net | | | 1,219,000 | | | 1,419,400 |
Operating lease right of use asset | | | 1,761,500 | | | 2,108,700 |
Intangible assets, net | | | 2,286,300 | | | 2,640,300 |
Goodwill | | | 607,500 | | | 607,500 |
Other assets | | | 506,400 | | | 491,200 |
Deferred income taxes | | | 4,407,400 | | | 4,211,800 |
| | $ | 24,884,100 | | $ | 26,844,500 |
| | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||
Current Liabilities: | | | | | | |
Accounts payable | | $ | 1,673,900 | | $ | 1,562,000 |
Accrued liabilities | | | 2,324,800 | | | 1,866,200 |
Deferred revenue | | | 1,667,300 | | | 1,659,700 |
Total current liabilities | | | 5,666,000 | | | 5,087,900 |
Long-Term Liabilities: | | | | | | |
Line of credit/Term loan | | | 30,000,000 | | | 30,000,000 |
Notes payable, net | | | 29,961,000 | | | 29,942,800 |
Deferred revenue | | | 8,350,100 | | | 8,027,600 |
Operating lease liabilities | | | 2,414,200 | | | 3,092,800 |
Other liabilities | | | 2,175,200 | | | 1,739,500 |
Total long-term liabilities | | | 72,900,500 | | | 72,802,700 |
Shareholders’ Equity (Deficit): | | | | | | |
Common stock, no par, 10,000,000 shares authorized, | | | 19,612,800 | | | 14,790,500 |
Retained earnings (accumulated deficit) | | | (73,295,200) | | | (65,836,600) |
Total shareholders’ equity (deficit) | | | (53,682,400) | | | (51,046,100) |
| | $ | 24,884,100 | | $ | 26,844,500 |
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Winmark Corporation
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| | Quarter Ended | | Fiscal Year Ended | | ||||||||
| | December 27, 2025 | | December 28, 2024 | | December 27, 2025 | | December 28, 2024 | | ||||
Revenue: | | | | | | | | | | | | | |
Royalties | | $ | 19,004,800 | | $ | 17,642,800 | | $ | 76,352,800 | | $ | 72,198,500 | |
Leasing income | | | 230,700 | | | 134,500 | | | 2,631,800 | | | 1,811,800 | |
Merchandise sales | | | 844,300 | | | 862,900 | | | 3,282,800 | | | 3,601,300 | |
Franchise fees | | | 437,800 | | | 362,800 | | | 1,525,800 | | | 1,545,600 | |
Other | | | 568,700 | | | 545,100 | | | 2,262,500 | | | 2,131,900 | |
Total revenue | | | 21,086,300 | | | 19,548,100 | | | 86,055,700 | | | 81,289,100 | |
Cost of merchandise sold | | | 786,300 | | | 816,700 | | | 3,104,400 | | | 3,379,200 | |
Leasing expense | | | — | | | — | | | — | | | 36,600 | |
Provision for credit losses | | | — | | | — | | | — | | | (1,500) | |
Selling, general and administrative expenses | | | 7,286,900 | | | 5,965,200 | | | 28,357,400 | | | 24,944,200 | |
Income from operations | | | 13,013,100 | | | 12,766,200 | | | 54,593,900 | | | 52,930,600 | |
Interest expense | | | (612,900) | | | (693,600) | | | (2,446,800) | | | (2,856,900) | |
Interest and other income | | | 273,800 | | | 295,100 | | | 988,500 | | | 1,150,300 | |
Income before income taxes | | | 12,674,000 | | | 12,367,700 | | | 53,135,600 | | | 51,224,000 | |
Provision for income taxes | | | (2,714,100) | | | (2,784,600) | | | (11,481,500) | | | (11,269,800) | |
Net income | | $ | 9,959,900 | | $ | 9,583,100 | | $ | 41,654,100 | | $ | 39,954,200 | |
Earnings per share - basic | | $ | 2.79 | | $ | 2.71 | | $ | 11.73 | | $ | 11.36 | |
Earnings per share - diluted | | $ | 2.69 | | $ | 2.60 | | $ | 11.30 | | $ | 10.89 | |
Weighted average shares outstanding - basic | | | 3,567,717 | | | 3,533,107 | | | 3,549,753 | | | 3,516,122 | |
Weighted average shares outstanding - diluted | | | 3,702,597 | | | 3,679,992 | | | 3,685,457 | | | 3,667,479 | |
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Winmark Corporation
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
| | Year Ended | | ||||
| | December 27, 2025 | | December 28, 2024 | | ||
OPERATING ACTIVITIES: | | | | | | | |
Net income | | $ | 41,654,100 | | $ | 39,954,200 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | |
Depreciation of property and equipment | |
| 392,700 | |
| 445,300 | |
Amortization of intangible assets | | | 354,000 | | | 354,000 | |
Provision for credit losses | |
| — | |
| (1,500) | |
Compensation expense related to stock options | |
| 2,283,300 | |
| 1,988,000 | |
Deferred income taxes | |
| (195,600) | |
| (159,400) | |
Operating lease right of use asset amortization | | | 347,300 | | | 317,100 | |
Tax benefits on exercised stock options | |
| 1,619,000 | |
| 1,307,700 | |
Change in operating assets and liabilities: | | | | | | | |
Receivables | |
| (147,100) | |
| 138,900 | |
Principal collections on lease receivables | | | — | | | 104,700 | |
Income tax receivable/payable | |
| (1,986,200) | |
| (1,372,800) | |
Inventories | |
| 35,100 | |
| (11,500) | |
Prepaid expenses | |
| (120,300) | |
| 186,700 | |
Other assets | | | (15,200) | | | (19,900) | |
Accounts payable | |
| 111,700 | |
| (157,400) | |
Accrued and other liabilities | |
| 233,900 | |
| (1,251,900) | |
Rents received in advance and security deposits | |
| — | |
| (28,000) | |
Deferred revenue | |
| 330,100 | |
| 363,700 | |
Net cash provided by operating activities | |
| 44,896,800 | |
| 42,157,900 | |
INVESTING ACTIVITIES: | | | | | | | |
Purchase of property and equipment | |
| (192,300) | |
| (194,900) | |
Net cash used for investing activities | |
| (192,300) | |
| (194,900) | |
FINANCING ACTIVITIES: | | | | | | | |
Payments on notes payable | | | — | | | (9,187,500) | |
Repurchases of common stock | |
| (2,418,700) | |
| — | |
Proceeds from exercises of stock options | |
| 4,957,800 | |
| 5,033,700 | |
Dividends paid | |
| (49,112,700) | |
| (38,865,900) | |
Net cash used for financing activities | |
| (46,573,600) | |
| (43,019,700) | |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |
| (1,869,100) | |
| (1,056,700) | |
Cash, cash equivalents and restricted cash, beginning of period | |
| 12,329,800 | |
| 13,386,500 | |
Cash, cash equivalents and restricted cash, end of period | | $ | 10,460,700 | | $ | 12,329,800 | |
SUPPLEMENTAL DISCLOSURES: | | | | | | | |
Cash paid for interest | | $ | 2,415,700 | | $ | 2,851,000 | |
Cash paid for income taxes | | $ | 11,814,700 | | $ | 11,168,700 | |
| | | | | | | |
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Balance Sheets to the total of the same amounts shown above: | |||||||
| | Year Ended | | ||||
| | December 27, 2025 | | December 28, 2024 | | ||
Cash and cash equivalents | | $ | 10,295,700 | | $ | 12,189,800 | |
Restricted cash | |
| 165,000 | |
| 140,000 | |
Total cash, cash equivalents and restricted cash | | $ | 10,460,700 | | $ | 12,329,800 | |
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