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.

Insights

Equity research analyst

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.

0000908315false00009083152026-02-182026-02-18

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 8-K

CURRENT REPORT

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Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

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Date of report (Date of earliest event reported): February 18, 2026

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Winmark Corporation

(Exact Name of Registrant as Specified in Its Charter)

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Minnesota

(State or Other Jurisdiction of Incorporation)

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000-22012	41-1622691
(Commission File Number)	(I.R.S. Employer Identification Number)

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605 Highway 169 North, Suite 400, Minneapolis, Minnesota 55441

(Address of Principal Executive Offices) (Zip Code)

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(763) 520-8500

(Registrant’s Telephone Number, Including Area Code)

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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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☐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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Title of each class:	Trading Symbol	Name of each exchange on which registered:
Common Stock, no par value per share	WINA	Nasdaq Global Market

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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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Emerging growth company ☐

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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 2.02Results of Operations and Financial Condition

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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.

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Item 7.01Regulation FD Disclosure

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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.

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Item 9.01Financial Statements and Exhibits

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(d)Exhibits

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c	​	​
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)

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SIGNATURES

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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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co	​	​
​	WINMARK CORPORATION
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Date: February 18, 2026	By:	/s/ Anthony D. Ishaug
​	Anthony D. Ishaug
​	Chief Financial Officer and Treasurer

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Exhibit 99.1

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Contact:Anthony D. Ishaug

763/520-8500

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FOR IMMEDIATE RELEASE

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WINMARK CORPORATION ANNOUNCES

YEAR END RESULTS

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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.

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“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.

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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.  

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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.

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WINMARK CORPORATION

CONDENSED BALANCE SHEETS

(Unaudited)

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​	​ ​ ​	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, 3,571,861 and 3,539,744 shares issued and outstanding	​	​	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)

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Quarter Ended

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Fiscal Year Ended

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December 27, 2025

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December 28, 2024

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December 27, 2025

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December 28, 2024

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Revenue:

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Royalties

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$

19,004,800

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$

17,642,800

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$

76,352,800

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$

72,198,500

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Leasing income

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230,700

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134,500

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2,631,800

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1,811,800

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Merchandise sales

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844,300

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862,900

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3,282,800

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3,601,300

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Franchise fees

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437,800

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362,800

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1,525,800

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1,545,600

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Other

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568,700

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545,100

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2,262,500

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2,131,900

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Total revenue

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21,086,300

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19,548,100

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86,055,700

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81,289,100

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Cost of merchandise sold

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786,300

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816,700

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3,104,400

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3,379,200

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Leasing expense

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—

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—

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—

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36,600

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Provision for credit losses

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—

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—

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—

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(1,500)

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Selling, general and administrative expenses

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7,286,900

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5,965,200

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28,357,400

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24,944,200

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Income from operations

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13,013,100

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12,766,200

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54,593,900

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52,930,600

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Interest expense

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(612,900)

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(693,600)

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(2,446,800)

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(2,856,900)

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Interest and other income

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273,800

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295,100

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988,500

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1,150,300

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Income before income taxes

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12,674,000

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12,367,700

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53,135,600

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51,224,000

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Provision for income taxes

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(2,714,100)

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(2,784,600)

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(11,481,500)

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(11,269,800)

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Net income

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$

9,959,900

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$

9,583,100

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$

41,654,100

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$

39,954,200

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Earnings per share - basic

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$

2.79

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$

2.71

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$

11.73

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$

11.36

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Earnings per share - diluted

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$

2.69

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$

2.60

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$

11.30

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$

10.89

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Weighted average shares outstanding - basic

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3,567,717

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3,533,107

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3,549,753

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3,516,122

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Weighted average shares outstanding - diluted

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3,702,597

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3,679,992

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3,685,457

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3,667,479

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Winmark Corporation

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

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​	​	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	​
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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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FAQ

What were Winmark (WINA) 2025 full-year earnings and EPS?

Winmark reported 2025 net income of $41,654,100, up from $39,954,200 in 2024. Diluted earnings per share were $11.30, compared with $10.89 a year earlier, reflecting higher profitability on increased royalties and leasing income.

How much revenue did Winmark (WINA) generate in fiscal 2025?

Winmark generated 2025 revenue of $86,055,700, compared with $81,289,100 in 2024. Growth was led by higher royalties of $76,352,800 and increased leasing income of $2,631,800, partially offset by slightly lower merchandise sales and relatively flat franchise fees.

What were Winmark’s (WINA) Q4 2025 results?

For the quarter ended December 27, 2025, Winmark reported net income of $9,959,900, up from $9,583,100 in the prior-year quarter. Diluted EPS was $2.69 versus $2.60, on total quarterly revenue of $21,086,300 compared with $19,548,100 a year earlier.

How strong was Winmark’s (WINA) 2025 cash flow and how was it used?

Winmark generated net cash from operating activities of $44,896,800 in 2025, up from $42,157,900 in 2024. The company used cash primarily for dividends of $49,112,700, share repurchases of $2,418,700, and modest capital expenditures of $192,300 on property and equipment.

What is the size of Winmark’s (WINA) franchise system as of December 27, 2025?

As of December 27, 2025, Winmark had 1,378 franchises in operation across its resale brands. The company also reported over 2,800 available territories and an additional 82 franchises awarded but not yet open, indicating room for further system growth.

How is Winmark (WINA) capitalized and what is its debt position?

At December 27, 2025, Winmark reported a line of credit/term loan of $30,000,000 and notes payable of $29,961,000. Total long-term liabilities were $72,900,500, while shareholders’ equity showed a deficit of $53,682,400, consistent with its leveraged capital structure.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 242.0 KB

Other Documents

• EX-101 EX-101.SCH 2.9 KB
• EX-101 EX-101.LAB 15.6 KB
• EX-101 EX-101.PRE 10.6 KB