Escalade (ED9) Q3 2026 Earnings Report
DE:ED9 Q3 2026 EPS Results
- Actual EPS
- EUR 0.43
- Consensus EPS
- EUR 0.30
- Beat/Miss
- Beat by +EUR 0.13
- One Year Ago EPS
- EUR 0.36
DE:ED9 Q3 2026 Revenue Results
- Actual Revenue
- EUR 58.75M
- Expected Revenue
- EUR 61.32M
- Beat/Miss
- Missed by -EUR 2.57M
- YoY Revenue Growth
- -3.21%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
Escalade's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was predominantly positive. Escalade reported stronger gross margin, EBITDA, net income, operating cash flow, inventory efficiency, and balance-sheet liquidity, while continuing to invest in innovation, acquisitions, and facilities. These achievements outweighed the 3% net sales decline, category softness, higher SG&A, and ongoing pressure on discretionary consumer spending.
Management said it continues to work toward its longer-term inventory turn target of 3x and expects recent and upcoming new product introductions to support market share gains across several key categories as it moves into 2027, while current and ongoing investments in innovation are expected to drive an acceleration in new product introductions as it moves into 2027. The company is comfortable having at least a turn of EBITDA, which is around that number mentioned, on the balance sheet; anticipates that some cash could be used towards acquisitions; expects a little bit more capital expenditure in the fourth quarter and a little bit more into next year; and will continue to pay a dividend and buy back shares from time to time when that makes sense for the board of directors.
- Improved Earnings and Gross MarginThird-quarter net income was $6.7 million, or $0.48 per diluted share, on net sales of $65.6 million. Gross margin expanded approximately 123 basis points year-over-year to 29.4% from 28.1%, driven by lower operational costs, better fixed-cost absorption, favorable sales mix, and strong operational execution.
- Higher EBITDA Supported by Gross Profit and Tariff RecoveryThird-quarter EBITDA increased $1.4 million to $10.0 million from $8.6 million in the prior-year period. The increase reflected improved gross profit and a $1.6 million recovery for previously paid tariffs received during the quarter.
- Strong Operating Cash Flow and Working Capital ProgressCash flow from operations was $14.9 million in the third quarter compared with cash used of $1.0 million in the prior-year period, primarily reflecting higher net income and lower working capital requirements. Total inventory was $2.9 million below the prior-year level despite the Gold Tip, AllCornhole, and ASL Solutions acquisitions, supporting the company’s focus on working capital efficiency and its longer-term 3x inventory-turn target.
- Archery and Outdoor Categories Delivered GrowthThe sales decline was partially offset by growth in archery, driven by strong vertical bow demand and the incremental contribution from the September 2025 Gold Tip acquisition. Safety and outdoor games also benefited from increased demand.
- Favorable Customer and Sales MixManagement said favorable sales mix reflected more dealer business with customers that have fewer programs and more direct-to-consumer business, which is generally a higher-margin business for Escalade.
- Strengthened Balance SheetEscalade repaid $1.8 million of debt and increased its cash balance by $8.1 million during the third quarter, ending with a net cash position of $11.4 million. Total cash and equivalents were $24.5 million as of September 30, 2026, while total debt was $13.1 million. Low-cost fixed-rate debt and higher cash balances also contributed to increased net interest income.
- Continued Investment in Product InnovationThe company launched several new products, including Onix pickleball paddles such as the Praxis and Aeris, the STIGA Onyx18 table tennis table, the Pro Carbon Cybershape racket, and the American Heritage Ann Arbor 8-foot billiards table. Management said these launches reflect increased investment in innovation and expects current and ongoing investments to accelerate new product introductions into 2027.
- Acquisition Pipeline and Capital Allocation FlexibilityEscalade reported a growing pipeline of acquisition opportunities that meet its criteria of enhancing existing platforms, expanding into attractive categories, and strengthening competitive positioning. Management also cited plans to invest in its businesses and facilities, with additional capital expenditure projects expected in the fourth quarter and into next year, while continuing to pay a dividend and repurchase shares from time to time.
- Holiday Promotion Strategy and Inventory PositionManagement said it was comfortable with current inventory levels and plans to use more frequent promotions highlighting newness and value to engage consumers earlier in the holiday buying cycle and accelerate sell-through.
DE:ED9 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 18, 2027 | 2026 (Q4) | 0.23- | 0.24 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 0.300.43 | 0.36 | 20.00% (+0.07) | |
| Jul 30, 2026 | 2026 (Q2) | 0.140.61 | 0.12 | 423.08% (+0.49) | |
| Apr 30, 2026 | 2026 (Q1) | 0.160.29 | 0.17 | 68.42% (+0.12) | |
| Feb 27, 2026 | 2025 (Q4) | 0.180.24 | 0.17 | 42.11% (+0.07) | |
| Oct 30, 2025 | 2025 (Q3) | ―0.36 | 0.36 | 0.00% (+0.00) | |
| Aug 01, 2025 | 2025 (Q2) | 0.210.12 | 0.18 | -35.00% (-0.06) | |
| May 05, 2025 | 2025 (Q1) | 0.120.17 | 0.12 | 46.15% (+0.05) | |
| Feb 26, 2025 | 2024 (Q4) | 0.180.17 | 0.19 | -9.52% (-0.02) | |
| Oct 24, 2024 | 2024 (Q3) | ―0.36 | 0.28 | 29.03% (+0.08) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
