Oct 29, 2026 earnings call — Margin expansion, stronger cash, and product launches
Net income of $6.7 million on net sales of $65.6 million, with gross margin of 29.4%.
Revenue $0.1B (est $0.1B) · EPS $0.48 (est $0.34)
Key quotes
"Our third quarter results demonstrated the effectiveness of our more efficient operating model in generating earnings and cash flow growth, even in the face of deteriorating consumer sentiment and a difficult year-over-year comparison."
"These launches illustrate our increased investment in product innovation across our portfolio."
"We remain focused on strategic, accretive acquisitions that enhance our existing platforms, expand our presence in attractive new categories, and strengthen our competitive positioning."
Analyst Q&A 2
Why sales mix changed and cash plans
Q (Rommel Dionisio · Aegis Capital): Analyst asked what 'favorable sales mix' means — customers moving to premium products or shifting between categories — and whether holiday promotions aim to gain share or clear retail inventory. He also asked how the company plans to use its free cash flow (acquisitions, debt paydown, buybacks, etc.).
A: Management said the mix change came from changes in their customer base: more dealer business and more direct-to-consumer, which is higher margin. They said they are comfortable with current inventory and will run more promotions to reach holiday buyers sooner. On cash, they keep at least a turn of EBITDA on the balance sheet, have an active pipeline of acquisitions, may use cash for acquisitions, will invest in capital projects in Q4 and next year, and will continue the dividend and occasional buybacks.
"We're thinking about capital allocation in a couple different ways, but we're comfortable having We've talked about having at least a turn of EBITDA, which is around that number you mentioned on the balance sheet." — Patrick Griffin (CEO)
Tariff refund impact on cash and free cash flow
Q (Michael Legg · Ladenburg): Analyst asked if the tariff refund cash is already included in the reported cash (so cash would be over $30 million) and whether the tariff affected free cash flow this quarter.
A: Management said the reported cash on the balance sheet already includes the tariff refund. They also confirmed the tariff did impact free cash flow this quarter.
"No, that is reflective of what you see on the balance sheet, includes the tariff refund that we received." — Patrick Griffin (CEO)