SharkNinja — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales increased 21.2% year-over-year to $1,976.4 million for the three months ended September 30, 2026, compared to $1,630.2 million in the prior year quarter.
• Gross margin increased 910 basis points to 59.2% of net sales, driven by $243.8 million in IEEPA duty refund claims (net of $45.2 million payable to factory partners), cost optimization, and favorable category/channel shifts.
• Adjusted Gross Margin increased 560 basis points to 55.9% of net sales.
• Net income increased 79.3% to $338.4 million, or $2.39 per diluted share, compared to $188.7 million, or $1.33 per diluted share, in the prior year quarter.
• Adjusted Net Income increased 55.1% to $330.9 million, or $2.34 per diluted share, compared to $213.4 million, or $1.50 per diluted share, in the prior year quarter.
• Adjusted EBITDA increased 45.7% to $461.3 million, representing 23.3% of net sales, compared to $316.5 million, or 19.4% of net sales, in the prior year quarter.
• Operating income increased 68.5% to $442.9 million (22.4% of net sales) compared to $262.9 million (16.1% of net sales) in the prior year quarter.
• Research and development expenses increased 27.0% to $117.9 million (6.0% of net sales).
• Sales and marketing expenses increased 25.9% to $460.7 million (23.3% of net sales).
• General and administrative expenses increased 55.0% to $148.5 million (7.5% of net sales).
• Cash and cash equivalents were $487.8 million as of September 30, 2026, with $495.3 million available under the revolving credit facility.
• Total debt was $708.8 million as of September 30, 2026.
• Inventories increased 42.5% to $1,428.2 million as of September 30, 2026, compared to $1,002.2 million as of December 31, 2025.

Guidance and Future Outlook:

• Fiscal 2026 net sales growth guidance raised to 18.0%–19.0% (previously 16.0%–17.0%).
• Fiscal 2026 Adjusted Net Income per diluted share guidance raised to $6.65–$6.75, reflecting a 25.9%–27.8% increase (previously $6.45–$6.55).
• Fiscal 2026 Adjusted EBITDA guidance raised to $1,380 million–$1,391 million, reflecting a 21.5%–22.5% increase (previously $1,357 million–$1,369 million).
• Fiscal 2026 GAAP effective tax rate expected to be approximately 22.0%–23.0%.
• Fiscal 2026 diluted weighted average shares outstanding expected to be approximately 142.0 million.
• Fiscal 2026 capital expenditures expected in the range of $190 million–$210 million.
• Updated outlook reflects continued operating strength and recognition of benefits from tariff refund claims, with total refund claims attributable to fiscal 2025 duties expected to be approximately $145.4 million.
• Outlook assumes current tariff levels persist for the remainder of 2026, including minimum rates of 10% for Indonesia, Malaysia, and Cambodia, and 12.5% for China, Vietnam, and Thailand.

Business Segments and Product Lines:

• Cleaning Appliances net sales increased 4.1% to $617.2 million, driven by corded and cordless vacuums.
• Cooking and Beverage Appliances net sales increased 36.6% to $597.7 million, driven by the Ninja Luxe Café espresso machine and Ninja Crispi.
• Food Preparation Appliances net sales increased 18.3% to $485.5 million, driven by strong growth in the blending sub-category.
• Beauty and Home Environment Appliances net sales increased 45.8% to $276.1 million, driven by skincare, air purifiers, and fan product portfolios.
• Domestic net sales increased 19.4% to $1,313.7 million, driven by growth in existing and new product categories.
• International net sales increased 25.2% to $662.7 million, driven by continued growth in core categories.
• The company entered the water filtration market with the Ninja HydraSense.
• Latin America distributor markets achieved the best net sales quarter ever.

Market and Competitive Landscape:

• The company reports 14 consecutive quarters of double-digit growth and two consecutive quarters of growth above 20%.
• Growth was balanced across Domestic and International markets, channels, categories, and geographies.
• The company describes its evolution into a Consumer Technology company operating at hyperscale.

Risks and Challenges:

• The press release notes that actual results may differ materially from forward-looking statements due to risks including inflation, changes in raw material costs, currency exchange rate fluctuations, and reliance on suppliers and retailers.
• Risks include potential changes to U.S. trade policies, import tariffs, and the ability to manage product inventory and demand forecasting.
• The company faces risks related to highly competitive markets, product counterfeiting, and intellectual property.

Management Commentary and Tone:

• CEO Mark Barrocas stated the results reflect the strength of the company's three-pillar growth strategy and a "positive flywheel" where scale drives success.
• Management expressed high confidence, stating, "I have never been more excited to be in business," and believes advantages are poised to deliver exceptional results heading into the holiday season.
• Management highlighted that the results reflect an evolution into a Consumer Technology company operating at hyperscale, impacting product design, marketing, sales speed, and reach.

Other Key Points:

• The company repurchased 293,132 ordinary shares in the third quarter of 2026 at an aggregate cost of $50.0 million (average price $170.57 per share).
• Year-to-date share repurchases totaled 1,301,500 shares at an aggregate cost of $169.7 million (average price $130.38 per share).
• The $750.0 million share repurchase program was authorized by the Board of Directors on February 11, 2026.
• The company recognized $109.6 million related to IEEPA duty refund claims expensed in fiscal 2025 during the third quarter of 2026.
• Subsequent to September 30, 2026, the company submitted additional refund claims of approximately $35.8 million for duties previously paid under IEEPA.
• The Product Procurement Adjustment eliminated inventory markups resulting from the separation from JS Global, with a transitional Sourcing Services Agreement ending on July 31, 2025.
• A voluntary product recall impacted results in the nine months ended September 30, 2026, and prior year periods.