The strong earnings beat and special dividend signal confidence in cash flow, but the $60M debt maturity over 30 months warrants monitoring. The Ad Fund rollout for Once Upon A Child and Play It Again Sports creates a new recurring revenue stream starting 2027 — watch for franchisee adoption and contribution ramp.
Price Chart
Executive Summary
Winmark reported strong Q3 2026 earnings with EPS of $3.21, beating consensus of $2.60 by 23.5%, and total revenue of $27.9M, beating the $26.2M estimate. The Board also approved a $1.02 quarterly dividend and a $4.00 special dividend (approx. $14.2M total), funded from cash on hand, while the company faces $60M in debt maturing over the next 30 months. Additionally, Winmark is implementing North American Ad Funds for its Once Upon A Child and Play It Again Sports brands, which will increase franchisee marketing contributions and create a new revenue stream starting in 2027.
Key Financial Metrics
Key Facts
- Q3 2026 EPS of $3.21 beat consensus of $2.60 by 23.5%
- Q3 2026 total revenue of $27.9M beat consensus of $26.2M
- Royalties grew 3.8% YoY to $21.7M; new North American advertising fund added $3.8M in revenue
- Board approved $1.02 quarterly dividend and $4.00 special dividend, total ~$14.2M, payable Dec 1, 2026
- Company has $60M of debt maturing over the next 30 months; management cited retaining cash for flexibility
- Once Upon A Child and Play It Again Sports Ad Funds launching Jan 31, 2027; would have generated ~$17.9M in contributions in FY2025
- Franchise count grew to 1,398, up from 1,389 in Q2 2026
- Operating cash flow for nine months was $35.5M, down slightly from $36.4M in prior year
Financial Impact
EPS beat of $0.61 (23.5%) vs consensus; special dividend of $4.00/share (~$14.2M total); new Ad Funds could add ~$17.9M in annual revenue starting 2027
Risk Factors
- $60M in debt maturing over next 30 months could pressure capital allocation
- Special dividend reduces cash on hand, limiting flexibility for share repurchases or debt repayment
- Ad Fund contributions are new and untested; franchisee pushback or lower-than-expected participation could disappoint
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000908315-26-000038 |
| Document: wina-20261013x8k.htm | 0000908315-26-000038 |
| Document: wina-ex99d2.htm | 0000908315-26-000038 |
| Document: 0000908315-26-000038-index-headers.html | 0000908315-26-000038 |
| Document: 0000908315-26-000038-index.html | 0000908315-26-000038 |
| Document: 0000908315-26-000038.txt | 0000908315-26-000038 |
| 8-K Data (Synthetic) | 0000908315-26-000038 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 144 | $279.71 $282.29 | ▲ +0.92% | ▲ +0.21% | $281.00 (+0.46%) |
Oct 14, 2026 13d ago | 8-K | $297.97 $314.26 | ▲ +5.47% | ▲ +5.18% | $281.00 (−5.70%) |
Jul 15, 2026 14w ago | 8-K | $376.76 $388.95 | ▲ +3.24% | ▲ +3.78% | $281.00 (−25.42%) |
May 6, 2026 24w ago | 8-K | $371.53 $367.83 | ▼ −1.00% | ▼ −0.66% | $281.00 (−24.37%) |
Apr 15, 2026 27w ago | 8-K | $379.21 $381.68 | ▼ −0.65% | ▼ −0.40% | $281.00 (+25.90%) |
Mar 3, 2026 34w ago | Insider Cluster | $477.50 $452.56 | ▲ +5.22% | ▲ +4.67% | $281.00 (+41.15%) |
US Market Status
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