Winmark (Nasdaq: WINA) posts $9,254,700 Q1 profit and declares $1.02 dividend

Rhea-AI Filing Summary

Winmark Corporation reported first quarter 2026 net income of $9,254,700, or $2.50 per diluted share, compared with $9,956,400 and $2.71 per diluted share a year earlier. Prior-year results included $2.2 million of leasing income from a customer litigation settlement.

Total revenue was $20,849,700 versus $21,919,700 in 2025, as royalties increased but leasing income declined. Cash and cash equivalents rose to $19,828,300 at March 28, 2026 from $10,295,700 at December 27, 2025, while the shareholders’ equity deficit narrowed.

The Board approved a quarterly cash dividend of $1.02 per share, payable on June 1, 2026 to shareholders of record on May 13, 2026. Winmark had 1,383 franchises in operation and over 2,800 available territories at March 28, 2026.

Insights

Equity research analyst

Winmark posts steady Q1 profit, softer revenue, and maintains dividend.

Winmark generated Q1 2026 net income of $9,254,700, slightly below the prior year’s $9,956,400, with diluted EPS moving from $2.71 to $2.50. Revenue eased to $20,849,700 from $21,919,700, as last year benefited from a one-time litigation-related leasing income boost.

Core franchise economics appear resilient, with royalties rising while leasing income and merchandise sales declined. Cash and cash equivalents nearly doubled since December 27, 2025 to $19,828,300, and the shareholders’ equity deficit narrowed, suggesting a stronger balance sheet position despite leverage remaining significant.

The quarterly dividend of $1.02 per share, payable on June 1, 2026, signals ongoing cash returns to shareholders, though future dividends remain subject to Board approval. Franchise system scale reached 1,383 operating locations, with additional awarded franchises and available territories supporting potential longer-term growth.

8-K Event Classification

4 items: 2.02, 7.01, 8.01, 9.01

4 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net income Q1 2026: $9,254,700 Net income Q1 2025: $9,956,400 Total revenue Q1 2026: $20,849,700 +5 more

8 metrics

Net income Q1 2026 $9,254,700 Quarter ended March 28, 2026

Net income Q1 2025 $9,956,400 Quarter ended March 29, 2025, includes $2.2M leasing income

Total revenue Q1 2026 $20,849,700 Quarter ended March 28, 2026

Royalties revenue Q1 2026 $19,262,800 Quarter ended March 28, 2026

Cash and cash equivalents $19,828,300 As of March 28, 2026

Shareholders’ equity (deficit) $(46,208,700) As of March 28, 2026

Quarterly dividend $1.02 per share Payable June 1, 2026 to holders on May 13, 2026

Franchises in operation 1,383 franchises As of March 28, 2026

Key Terms

royalties, franchise fees, operating lease right of use asset, deferred revenue, +2 more

6 terms

royalties financial

"Royalties | $ | 19,262,800 | | $ | 17,774,700"

Payments made to the owner of an asset or intellectual property each time that asset is used or a product is sold, often calculated as a percentage of sales or a set amount per unit. Royalties matter to investors because they create predictable, ongoing income streams and affect a company’s cash flow and valuation—like a landlord collecting rent or an author getting a steady cut whenever a book is sold.

franchise fees financial

"Franchise fees | | 342,900 | | | 332,100"

operating lease right of use asset financial

"Operating lease right of use asset | | 1,670,700"

deferred revenue financial

"Deferred revenue | | 1,654,700 | | | 1,667,300"

Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.

forward-looking statements regulatory

"This press release contains forward-looking statements within the meaning"

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.

emerging growth company regulatory

"Emerging growth company"

An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.

Earnings Snapshot

Net income: $9,254,700

Q1 2026

Net income $9,254,700

Total revenue $20,849,700

Diluted EPS $2.50

Understanding 8-K Material Events →

0000908315false00009083152026-04-152026-04-15

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): April 15, 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 April 15, 2026, Winmark Corporation (the “Company”) announced in a press release its results of operations and financial condition for the first quarter ended March 28, 2026. 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 April 15, 2026, the Company announced in a press release its results of operations and financial condition for the first quarter ended March 28, 2026. A copy of the press release is attached as Exhibit 99.1 of this Current Report on Form 8-K.

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On April 15, 2026, the Company announced in a press release that its Board of Directors has approved the payment of a cash dividend to its shareholders. The quarterly dividend of $1.02 per share will be paid on June 1, 2026 to shareholders of record on the close of business on May 13, 2026. Future dividends will be subject to Board approval. A copy of the press release is attached as Exhibit 99.2 of this Current Report of Form 8-K.

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Item 8.01Other Events

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On April 15, 2026, the Company announced in a press release that its Board of Directors has approved the payment of a cash dividend to its shareholders. The quarterly dividend of $1.02 per share will be paid on June 1, 2026 to shareholders of record on the close of business on May 13, 2026. Future dividends will be subject to Board approval. A copy of the press release is attached as Exhibit 99.2 of this Current Report of 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 ​ ​	​	First Quarter Results Press Release dated April 15, 2026
99.2 ​	​	Quarterly Cash Dividend Press Release dated April 15, 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: April 15, 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

FIRST QUARTER RESULTS

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Minneapolis, MN (April 15, 2026)  -  Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended March 28, 2026 of $9,254,700 or $2.50 per share diluted compared to net income of $9,956,400 or $2.71 per share diluted in 2025. First quarter 2025 results included $2.2 million of leasing income from the settlement of customer litigation.

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“During the quarter we introduced two significant enhancements to our business model in partnership with our franchisees,” noted Brett D. Heffes, Chair and Chief Executive Officer. “We are launching a North American Ad Fund for Plato’s Closet as well as modernizing the point-of-sale offering for our franchisees. These two improvements are intended to provide permanent vehicles to fund ongoing reinvestment in marketing, technology and innovation initiatives on behalf of our franchisees.” For additional details on these announcements, please refer to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 16, 2026.

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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 March 28, 2026, there were 1,383 franchises in operation and over 2,800 available territories.  An additional 79 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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​	​ ​ ​	March 28, 2026		​ ​ ​	December 27, 2025
ASSETS
Current Assets:	​	​	​ ​ ​	​	​	​
Cash and cash equivalents	​	$	19,828,300	​	$	10,295,700
Restricted cash	​	​	100,000	​	​	165,000
Receivables, net	​	​	2,002,500	​	​	1,483,500
Income tax receivable	​	​	—	​	​	463,600
Inventories	​	​	421,400	​	​	362,500
Prepaid expenses	​	​	2,698,800	​	​	1,325,700
Total current assets	​	​	25,051,000	​	​	14,096,000
​	​	​	​	​	​	​
Property and equipment, net	​	​	1,138,400	​	​	1,219,000
Operating lease right of use asset	​	​	1,670,700	​	​	1,761,500
Intangible assets, net	​	​	2,197,800	​	​	2,286,300
Goodwill	​	​	607,500	​	​	607,500
Other assets	​	​	525,400	​	​	506,400
Deferred income taxes	​	​	4,407,400	​	​	4,407,400
​	​	$	35,598,200	​	$	24,884,100
​	​	​	​	​	​	​
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:	​	​	​	​	​	​
Accounts payable	​	$	1,057,500	​	$	1,673,900
Income tax payable	​	​	1,919,100	​	​	—
Accrued liabilities	​	​	4,496,800	​	​	2,324,800
Deferred revenue	​	​	1,654,700	​	​	1,667,300
Total current liabilities	​	​	9,128,100	​	​	5,666,000
Long-Term Liabilities:	​	​	​	​	​	​
Line of credit/Term loan	​	​	30,000,000	​	​	30,000,000
Notes payable, net	​	​	29,965,600	​	​	29,961,000
Deferred revenue	​	​	8,307,000	​	​	8,350,100
Operating lease liabilities	​	​	2,235,800	​	​	2,414,200
Other liabilities	​	​	2,170,400	​	​	2,175,200
Total long-term liabilities	​	​	72,678,800	​	​	72,900,500
Shareholders’ Equity (Deficit):	​	​	​	​	​	​
Common stock, no par, 10,000,000 shares authorized, 3,577,671 and 3,571,861 shares issued and outstanding	​	​	21,260,800	​	​	19,612,800
Retained earnings (accumulated deficit)	​	​	(67,469,500)	​	​	(73,295,200)
Total shareholders’ equity (deficit)	​	​	(46,208,700)	​	​	(53,682,400)
​	​	$	35,598,200	​	$	24,884,100

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Winmark Corporation

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

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​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	​
​	​	March 28, 2026		​	March 29, 2025		​	​
Revenue:	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​ ​ ​
Royalties	​	$	19,262,800	​	$	17,774,700	​	​
Leasing income	​	​	—	​	​	2,307,800	​	​
Merchandise sales	​	​	653,900	​	​	941,300	​	​
Franchise fees	​	​	342,900	​	​	332,100	​	​
Other	​	​	590,100	​	​	563,800	​	​
Total revenue	​	​	20,849,700	​	​	21,919,700	​	​
Cost of merchandise sold	​	​	618,500	​	​	888,300	​	​
Selling, general and administrative expenses	​	​	7,869,600	​	​	7,434,800	​	​
Income from operations	​	​	12,361,600	​	​	13,596,600	​	​
Interest expense	​	​	(613,900)	​	​	(613,900)	​	​
Interest and other income	​	​	118,700	​	​	149,900	​	​
Income before income taxes	​	​	11,866,400	​	​	13,132,600	​	​
Provision for income taxes	​	​	(2,611,700)	​	​	(3,176,200)	​	​
Net income	​	$	9,254,700	​	$	9,956,400	​	​
Earnings per share - basic	​	$	2.59	​	$	2.81	​	​
Earnings per share - diluted	​	$	2.50	​	$	2.71	​	​
Weighted average shares outstanding - basic	​	​	3,573,767	​	​	3,538,647	​	​
Weighted average shares outstanding - diluted	​	​	3,708,538	​	​	3,672,943	​	​

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Winmark Corporation

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

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​	​	Three Months Ended					​
​	​ ​ ​	March 28, 2026		​	March 29, 2025		​ ​ ​
OPERATING ACTIVITIES:	​	​	​	​	​	​	​
Net income	​	$	9,254,700	​	$	9,956,400	​
Adjustments to reconcile net income to net cash provided by operating activities:	​	​	​	​	​	​	​
Depreciation of property and equipment	​		95,200	​		97,200	​
Amortization of intangible assets	​	​	88,500	​	​	88,500	​
Compensation expense related to stock options	​		614,100	​		536,600	​
Operating lease right of use asset amortization	​	​	90,800	​	​	82,200	​
Tax benefits on exercised stock options	​		302,800	​		—	​
Change in operating assets and liabilities:	​	​	​	​	​	​	​
Receivables	​		(519,000)	​		(1,250,000)	​
Income tax receivable/payable	​		2,079,900	​		2,980,000	​
Inventories	​		(58,900)	​		59,400	​
Prepaid expenses	​		(1,373,100)	​		323,700	​
Other assets	​	​	(19,000)	​	​	(25,200)	​
Accounts payable	​		(616,400)	​		(18,000)	​
Accrued and other liabilities	​		1,993,500	​		2,018,300	​
Deferred revenue	​		(55,800)	​		229,300	​
Net cash provided by operating activities	​		11,877,300	​		15,078,400	​
INVESTING ACTIVITIES:	​	​	​	​	​	​	​
Purchase of property and equipment	​		(14,600)	​		(51,200)	​
Net cash used for investing activities	​		(14,600)	​		(51,200)	​
FINANCING ACTIVITIES:	​	​	​	​	​	​	​
Repurchases of common stock	​		—	​		(2,249,900)	​
Proceeds from exercises of stock options	​		1,033,900	​		47,700	​
Dividends paid	​		(3,429,000)	​		(3,186,000)	​
Net cash used for financing activities	​		(2,395,100)	​		(5,388,200)	​
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	​		9,467,600	​		9,639,000	​
Cash, cash equivalents and restricted cash, beginning of period	​		10,460,700	​		12,329,800	​
Cash, cash equivalents and restricted cash, end of period	​	$	19,928,300	​	$	21,968,800	​
SUPPLEMENTAL DISCLOSURES:	​	​	​	​	​	​	​
Cash paid for interest	​	$	604,000	​	$	604,000	​
Cash paid for income taxes	​	$	207,600	​	$	196,200	​
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The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Condensed Balance Sheets to the total of the same amounts shown above:
​	​	Three Months Ended					​
​	​ ​ ​	March 27, 2026		​	March 29, 2025		​ ​ ​
Cash and cash equivalents	​	$	19,828,300	​	$	21,828,800	​
Restricted cash	​		100,000	​		140,000	​
Total cash, cash equivalents and restricted cash	​	$	19,928,300	​	$	21,968,800	​

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Exhibit 99.2

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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

QUARTERLY CASH DIVIDEND

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Minneapolis, MN (April 15, 2026)  -  Winmark Corporation (Nasdaq: WINA) announced today that its Board of Directors has approved the payment of a quarterly cash dividend to shareholders. The quarterly dividend of $1.02 per share will be paid on June 1, 2026 to shareholders of record on the close of business on May 13, 2026. Future dividends will be subject to Board approval.

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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 March 28, 2026, there were 1,383 franchises in operation and over 2,800 available territories.  An additional 79 franchises have been awarded but are not open.  

FAQ

How did Winmark (WINA) perform financially in Q1 2026?

Winmark reported Q1 2026 net income of $9,254,700, down from $9,956,400 a year earlier. Diluted earnings per share were $2.50 versus $2.71 in 2025, with revenue at $20,849,700 compared to $21,919,700.

What drove the year-over-year change in Winmark (WINA) earnings?

Net income declined mainly because Q1 2025 included $2.2 million of leasing income from a customer litigation settlement. In Q1 2026, Winmark’s revenue mix shifted as royalties increased while leasing income and merchandise sales were lower.

What dividend did Winmark (WINA) declare for shareholders?

Winmark’s Board approved a quarterly cash dividend of $1.02 per share. The dividend will be paid on June 1, 2026 to shareholders of record at the close of business on May 13, 2026, with future dividends subject to Board approval.

How strong is Winmark’s (WINA) balance sheet after Q1 2026?

At March 28, 2026, Winmark held $19,828,300 in cash and cash equivalents, up from $10,295,700 at December 27, 2025. Total assets were $35,598,200, and the shareholders’ equity deficit improved to $(46,208,700) from $(53,682,400).

What were Winmark’s (WINA) key revenue components in Q1 2026?

In Q1 2026, Winmark generated $19,262,800 in royalties, $653,900 in merchandise sales, $342,900 in franchise fees, and $590,100 in other revenue. Total revenue was $20,849,700, compared with $21,919,700 in the prior-year quarter.

How large is Winmark’s (WINA) franchise system as of March 28, 2026?

As of March 28, 2026, Winmark had 1,383 franchises in operation across its resale brands and over 2,800 available territories. An additional 79 franchises had been awarded but were not yet open, providing a pipeline for future store openings.

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 EX-99.1 201.5 KB
• EX-99.2 EX-99.2 5.6 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