Escalade Reports Third Quarter 2026 Results

Patrick J. Griffin, President and Chief Executive Officer of Escalade

“Our third quarter results demonstrated the resilience of our more efficient operating model, with gross margin expanding 123 basis points year-over-year to 29.4% and strong cash flow from operations,”

Patrick J. Griffin, President and Chief Executive Officer of Escalade

“Consumer demand across our portfolio remained reasonably stable despite deteriorating consumer sentiment. Continued strength in archery, including robust demand for our vertical bows and the incremental contribution from Gold Tip, which we acquired in September 2025, as well as growth in our safety and outdoor games categories drove demand. Reported net sales were unfavorably impacted by comparisons to the third quarter of last year, when tariff-related dynamics shifted the timing of larger customer orders from the second quarter into the third quarter, and by our strategic exit from certain lower-margin product lines.”

Patrick J. Griffin, President and Chief Executive Officer of Escalade

“Gross margin improvement reflected a favorable sales mix and improved fixed-cost absorption resulting from the acquisitions we completed during 2025, which offset higher freight and material related costs incurred during the quarter,”

Patrick J. Griffin, President and Chief Executive Officer of Escalade

“Through the first nine months of 2026, we expanded gross margin by more than 210 basis points compared with the same period in 2025. The operational improvements we have made, together with our continued discipline in cost controls and inventory management, have established a margin structure that we believe is sustainable through the cycle.”

Patrick J. Griffin, President and Chief Executive Officer of Escalade

“As we enter the holiday season, we are working closely with our retail partners to highlight our brands with exciting promotions designed to fuel consumer demand and accelerate sell-through,”

Patrick J. Griffin, President and Chief Executive Officer of Escalade

“We expect inflationary pressures and higher interest rates, as well as broader economic and geopolitical uncertainty, to continue to weigh on consumer spending for discretionary goods. Looking ahead to 2027, we believe our steady cadence of new product launches and a full year of contribution from our recent acquisition will position the business to take market share and generate sales growth, even as consumer headwinds persist.”

Patrick J. Griffin, President and Chief Executive Officer of Escalade

“Our improved gross margin and strong cash flow enabled us to further strengthen our balance sheet during the third quarter,”

Patrick J. Griffin, President and Chief Executive Officer of Escalade

“We continued to prioritize debt repayment, reducing total debt to $13.1 million from $20.2 million a year ago, while increasing cash to $24.5 million and ending the quarter in a net cash position with full availability on our revolving credit facility. Maintaining a strong balance sheet remains a cornerstone of our capital allocation strategy and provides the financial flexibility to pursue acquisitions that broaden and strengthen our business, as demonstrated by our recent acquisition of ASL Solutions. We remain focused on disciplined capital deployment, with the goal of driving profitable growth through the cycle and creating long-term shareholder value.”