The revenue decline and miss versus consensus is the headline negative, but the EPS beat, margin expansion and strong cash flow provide offset. Watch the Q4 holiday selling season for evidence of whether the revenue decline is a timing issue (tariff-related order shifts in the prior year) or a demand problem. The balance sheet is strong for potential M&A.
Price Chart
Executive Summary
Escalade reported Q3 2026 net sales of $65.6 million, down 3.2% YoY, missing the $68.5M consensus. GAAP diluted EPS of $0.48 beat the $0.34 consensus, but the beat was aided by $1.6M in tariff recoveries. Gross margin expanded 123 bps to 29.4%, and operating cash flow improved to $14.9M from -$1.0M. The company maintained its $0.1525 quarterly dividend.
Key Financial Metrics
Key Facts
- Net sales decreased 3.2% YoY to $65.6 million, below the $68.5M consensus
- GAAP diluted EPS of $0.48 beat the $0.34 consensus estimate
- Gross margin improved 123 basis points to 29.4%
- Operating income was $8.7 million vs $7.3 million in Q3 2025
- EBITDA was $10.0 million, including a $1.6 million tariff recovery benefit
- Operating cash flow was $14.9 million vs cash used of $1.0 million in Q3 2025
- Total debt reduced to $13.1 million from $20.2 million a year ago
- Cash and equivalents were $24.5 million at quarter end
- Quarterly dividend of $0.1525 per share declared, payable January 11, 2027
- Management cited lower sales in basketball, indoor games and table tennis categories
Financial Impact
Revenue miss of $2.9M (4.2% below consensus); EPS beat of $0.14 (41.2% above consensus) but includes $1.6M tariff recovery
Risk Factors
- Revenue declined 3.2% YoY, driven by lower sales in basketball, indoor games and table tennis
- EPS beat was partly aided by $1.6M in non-recurring tariff recoveries
- Consumer discretionary spending headwinds from inflation and higher interest rates
- Management cited deteriorating consumer sentiment and geopolitical uncertainty
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-033842 |
| Document: esca20261028_8k.htm | 0001437749-26-033842 |
| Document: 0001437749-26-033842-index-headers.html | 0001437749-26-033842 |
| Document: 0001437749-26-033842-index.html | 0001437749-26-033842 |
| Document: 0001437749-26-033842.txt | 0001437749-26-033842 |
| 8-K Data (Synthetic) | 0001437749-26-033842 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $20.14 | awaiting T+20 | awaiting T+20 | $19.70 (−2.18%) |
Aug 25, 2026 9w ago | 8-K | $20.17 $19.43 | ▼ −3.67% | ▼ −4.91% | $19.70 (−2.33%) |
Aug 25, 2026 9w ago | Press Release | $20.17 $19.43 | ▼ −3.67% | ▼ −4.91% | $19.70 (−2.33%) |
Aug 21, 2026 10w ago | Institutional Cluster | $21.09 $19.43 | ▼ −7.87% | ▼ −7.34% | $19.70 (−6.59%) |
Aug 13, 2026 11w ago | Insider Cluster | $20.07 $19.47 | ▲ +2.97% | ▲ +0.97% | $19.70 (+1.82%) |
Aug 7, 2026 12w ago | Insider Cluster | $21.20 $20.46 | ▼ −3.46% | ▼ −2.55% | $19.70 (−7.07%) |
Aug 6, 2026 12w ago | Insider Cluster | $22.42 $20.70 | ▼ −7.65% | ▼ −7.26% | $19.70 (−12.12%) |
Jul 30, 2026 13w ago | 8-K | $20.88 $20.05 | ▼ −3.98% | ▼ −7.94% | $19.70 (−5.65%) |
Apr 30, 2026 26w ago | 8-K | $18.70 $18.77 | ▲ +0.37% | ▼ −4.85% | $19.70 (+5.35%) |
Feb 27, 2026 35w ago | 8-K | $14.28 $17.20 | ▲ +20.49% | ▲ +28.04% | $19.70 (+37.96%) |
US Market Status
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