01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
SharkNinja, Inc. reported net sales of $1,412.8 milliona for the three months ended March 31, 2026, up from $1,222.6 million a year earlier, an increase of $190.2 million, or 15.6%.
Growth was led by Cleaning Appliances (up 17.0%), Cooking and Beverage Appliances (up 19.8%) and Beauty and Home Environment Appliances (up 40.8%), while Food Preparation Appliances declined 3.3%. Operating income rose to $164.5 millionb from $144.9 million, and net income increased to $121.5 million from $117.8 million, or $0.85 per diluted share versus $0.83. Gross margin was 49.2% compared with 49.3% a year earlier, with the filing attributing the decline mainly to tariff-related cost pressures in the U.S. market, partly offset by cost optimization and favorable category and channel shifts.
Adjusted EBITDA was $235.4 millionc, a 16.7% margin, and Adjusted Net Income per diluted share was $1.09 versus $0.87. Liquidity declined over the quarter. Cash and cash equivalents fell to $511.8 million from $777.3 million at December 31, 2025, and net cash used in operating activities was $156.3 million, compared with $54.9 million a year earlier.
Accrued expenses and other current liabilities fell by $335.9 milliond in the operating cash flow discussion. Total debt outstanding under the 2023 Credit Agreement was $729.0 million, and the company had $489.1 million available under its revolving facility. Management stated that existing cash, operating cash flow and the revolver are expected to be sufficient for at least the next 12 months.
The filing also discloses that disclosure controls were not effective as of December 31, 2025, due to material weaknesses in internal control over financial reporting that continued to exist as of March 31, 2026. Management is pursuing remediation through 2026.
During the quarter, the company repurchased 193,135 ordinary shares for $20.0 million under a $750.0 million program authorized on February 11, 2026, leaving $730.0 million available. The filing states that the Section 122 import surcharge of 10% is set to expire July 24, 2026 by statute, and that no receivable for potential IEEPA tariff refunds has been recognized.
02—Key points
Key Highlights
- Net sales rose 15.6% to $1,412.8 million, led by Beauty and Home Environment (up 40.8%) and Cooking and Beverage Appliances (up 19.8%).
- International net sales increased 31.6% to $496.8 million, while Domestic net sales increased 8.4%.
- Gross margin was 49.2% versus 49.3%, with tariff cost pressures in the U.S. cited as the primary drag.
- Net income increased to $121.5 million, and diluted EPS was $0.85 versus $0.83; Adjusted Net Income per diluted share was $1.09 versus $0.87.
- Cash and cash equivalents fell to $511.8 million from $777.3 million, driven by $156.3 million of operating cash outflow in the quarter.
- Management reports material weaknesses in internal control over financial reporting that continued through March 31, 2026, and disclosure controls were not effective as of December 31, 2025.
- A $750.0 million share repurchase program was authorized February 11, 2026; $20.0 million was used in the quarter, leaving $730.0 million available.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, SharkNinja kept $0.09.
- Revenue$1.41B100.0%
- Cost of revenue−$717.8M50.8%
- Gross profit$695.0M49.2%
- Operating costs−$530.4M37.5%
- Operating income$164.5M11.6%
- Interest, other & tax−$43.1M3.0%
- Net income$121.5M8.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.41B$1.22B | +15.6% |
| Cost of Revenue | $717.84M$619.41M | +15.9% |
| Gross Profit | $694.97M$603.23M | +15.2% |
| R&D Expenses | $98.88M$87.60M | +12.9% |
| Operating Expenses | $530.44M$458.28M | +15.7% |
| Operating Income | $164.53M$144.95M | +13.5% |
| Net Income | $121.46M$117.83M | +3.1% |
| EPS (Basic) | $0.86$0.84 | +2.4% |
| EPS (Diluted) | $0.85$0.83 | +2.4% |
| Shares Outstanding (Basic) | 141.40M140.62M | +0.6% |
| Shares Outstanding (Diluted) | 142.36M142.18M | +0.1% |
05—Questions
Frequently Asked Questions
How did SharkNinja's revenue and profitability perform in the first quarter of 2026?
Net sales were $1,412.8 million, up 15.6% from $1,222.6 million. Operating income rose to $164.5 million from $144.9 million, and net income rose to $121.5 million from $117.8 million. Gross margin was 49.2% compared with 49.3% a year earlier.
Why did cash decline and what drove negative operating cash flow?
Cash and cash equivalents decreased to $511.8 million from $777.3 million at year-end 2025. Net cash used in operating activities was $156.3 million, mainly due to a $335.9 million decrease in accrued expenses and other liabilities and a $97.3 million decrease in accounts payable, partially offset by a $182.2 million decrease in accounts receivable.
What are the company's liquidity and debt positions?
The company had $729.0 million of term loan debt outstanding under the 2023 Credit Agreement and no revolver borrowings. $489.1 million remained available under the $500.0 million revolving facility after $10.9 million of letters of credit. Management believes these resources are sufficient for at least the next 12 months and reports compliance with the credit agreement covenants.
What internal control issues does the filing disclose?
Management concluded that disclosure controls were not effective as of December 31, 2025, due to material weaknesses in internal control over financial reporting that continued to exist as of March 31, 2026. Remediation efforts, including IT general controls and insourcing internal audit, are planned throughout 2026, with no assurance on timing or success.
How are tariffs affecting the business?
The U.S. Supreme Court held that IEEPA does not authorize tariffs, and a 10% Section 122 global import surcharge took effect February 24, 2026, set to expire July 24, 2026 unless extended by Congress. Tariffs under Sections 301 and 232, including on China-origin goods, remain in effect. No receivable for potential IEEPA refunds has been recognized, and tariff costs were cited as the primary driver of the gross margin decline.
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