Escalade stock price drops 3% due to Q4 earnings falling short of expectations

LootboxPhobia · 2026-02-27T13:55:44+00:00

Escalade, Incorporated's fourth-quarter results showed revenue of $62.6 million, exceeding expectations, but adjusted earnings per share of $0.27 fell short of analyst estimates. Despite a 2.2% decline in sales, gross margin and EBITDA saw slight improvements, with net profit rising to $3.7 million. The company plans to increase the quarterly dividend to $0.1525 per share.

LootboxPhobia

2026-02-27 13:55:44

Abstract generation in progress

Evansville, Indiana - Escalade, Incorporated (NASDAQ: ESCA) reported its fourth-quarter results on Friday, showing revenue exceeded expectations, but profits fell short.

Following the announcement, the company’s stock dropped 2.95% in after-hours trading.

The sporting goods manufacturer reported adjusted earnings of $0.27 per share for the quarter, below analysts’ consensus estimate of $0.28.

Revenue declined 2.2% year-over-year to $62.6 million but beat analysts’ expectations of $61.38 million. The decrease in net sales was mainly due to uneven consumer demand across most product categories, but improved demand for archery, billiards, and gaming products partially offset this impact.

Gross margin increased by 280 basis points to 27.7%, driven by lower fixed costs and reduced inventory storage and handling costs, leading to improved operational efficiency. Net income rose to $3.7 million, or $0.27 per diluted share, compared to $2.7 million, or $0.19 per diluted share, in the same period last year.

“We finished FY2025 with strong profit margins, thanks to rigorous operational execution across the business,” said interim President and CEO Patrick Griffin. “The profit margin in the fourth quarter reflects the cost structure improvements implemented over the past year.”

EBITDA grew 9.3% year-over-year to $6.5 million from $5.9 million last year. The company generated $14.9 million in operating cash flow this quarter, up from $12.3 million in the same period last year.

Total debt decreased 27.9% from $25.6 million at the end of last year to $18.5 million. The net leverage ratio was 0.3x EBITDA over the past twelve months, down from 0.8x a year earlier.

For the full fiscal year 2025, Escalade reported net sales of $240.2 million, down 4.5% year-over-year, and net income of $13.7 million, or $0.99 per diluted share.

The company increased its quarterly dividend to $0.1525 per share, payable on April 13, 2026, to shareholders of record as of April 6, 2026.

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