The earnings improvement is real but small in absolute terms, and the cash burn from dividends and inventory build is a concern for a $20M market cap. Monitor next quarter for cash flow stabilization and whether the new POS system and Waco store drive further margin expansion. No analyst estimates were available, so the surprise magnitude is unquantifiable.
Price Chart
Executive Summary
Tandy Leather Factory reported Q2 2026 revenue of $18.0M (+1.5% YoY) and net income of $0.4M vs a net loss of ($0.2M) in Q2 2025, with gross margins expanding to 64.8% from 59.5%. Operating income surged 722.9% to $0.5M, but cash dropped to $6.4M from $16.1M due to $6.0M in dividends and $4.0M in inventory/IT investments. The earnings beat is modest and the cash burn is notable, making the overall read neutral for a $20M market cap company.
Key Financial Metrics
Key Facts
- Revenue $18.0M, up 1.5% YoY from $17.8M
- Net income $0.4M vs net loss ($0.2M) in Q2 2025
- Gross margin 64.8% vs 59.5% in Q2 2025
- Operating income $0.5M, up 722.9% YoY
- Cash $6.4M, down from $16.1M at Dec 31, 2025
- EPS $0.05 vs ($0.02) loss per share in prior year
- Paid $6.0M in dividends in Q1 2026
- 101 stores in 40 US states, 6 Canadian provinces, 1 in Spain
Financial Impact
Revenue +$0.2M YoY; net income swing of +$0.6M vs prior-year loss; cash burn of $9.7M in H1 2026
Risk Factors
- Cash burn rate: $9.7M decline in H1 2026 from $16.1M to $6.4M, with $6.0M in dividends and $4.0M in inventory/IT spend
- Low absolute revenue growth of 1.5% in a discretionary retail environment
- Small market cap ($20M) amplifies any operational misstep
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3343182 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 11, 2026 10w ago | Press Release | $2.49 | awaiting T+60 | — | $2.28 (−8.57%) |
Jun 10, 2026 19w ago | 8-K | $2.30 $2.62 | ▲ +13.91% | ▲ +9.52% | $2.28 (−0.87%) |
Apr 27, 2026 26w ago | DEFA14A | $2.34 $2.41 | ▲ +3.20% | ▼ −1.58% | $2.28 (−2.56%) |
Feb 24, 2026 34w ago | 8-K | $2.35 $2.39 | ▼ −1.70% | ▲ +5.25% | $2.28 (+2.98%) |
US Market Status
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