01—Abstract
Summary
Summary of the 10-Q filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.
SharkNinja, Inc. reported second-quarter 2026 net sales of $1.77 billiona, up 22.2% from $1.44 billion a year earlier, with six-month net sales of $3.18 billion, up 19.1%.
Gross margin was 48.7% for the quarter, down 30 basis points, as the company cited tariff cost pressures, unfavorable foreign currency and increased retailer activations. Operating income rose to $179.4 millionb from $168.6 million, but net income declined to $129.8 million from $139.6 million, primarily because of a $33.8 million swing in other expense, driven by unrealized foreign currency losses on intercompany balances. Diluted EPS was $0.92 versus $0.98 a year earlier.
Adjusted EBITDA was $264.9 millionc, a 15.0% margin, and the company generated $275.5 million of operating cash flow for the six months, compared with a use of $63.9 million a year earlier. The balance sheet strengthened, with cash and cash equivalents of $779.8 million, no revolver borrowings, and $718.9 million of term loan debt outstanding. The company repurchased 1,008,368 shares for $119.7 million under a $750.0 million program, leaving $630.3 million available.
Subsequent to quarter end, the company submitted and had accepted IEEPA tariff refund claims of approximately $247.1 milliond, and expects to recognize that benefit as a reduction of cost of sales in the third quarter of 2026. Management disclosed that disclosure controls were not effective as of June 30, 2026 due to material weaknesses in internal control over financial reporting that existed at December 31, 2025 and continued into 2026. The filing also reports a higher effective tax rate reduction tied to the purchase of transferable income tax credits, and increased share-based compensation of $47.2 million in the quarter, up from $10.9 million a year earlier, which weighed on general and administrative expenses.
02—Key points
Key Highlights
- Net sales rose 22.2% to $1,765.5 million in Q2 2026; six-month net sales rose 19.1% to $3,178.3 million, with Beauty and Home Environment Appliances up 65.3% in the quarter.
- Net income fell to $129.8 million from $139.6 million, and diluted EPS was $0.92 versus $0.98, mainly due to unrealized foreign currency losses on intercompany balances in other expense.
- Gross margin was 48.7% versus 49.0%, down 30 basis points, reflecting tariff cost pressures in the U.S., unfavorable foreign currency and increased retailer activations.
- Adjusted EBITDA was $264.9 million, a 15.0% margin, compared with $223.4 million and a 15.5% margin a year earlier.
- Operating cash flow for the six months was $275.5 million, compared with a use of $63.9 million in the prior-year period, and cash and equivalents reached $779.8 million.
- Approximately $247.1 million of IEEPA tariff refund claims were submitted and accepted by CBP in July 2026, with a benefit expected in Q3 2026 as a reduction of cost of sales.
- Disclosure controls were concluded not effective as of June 30, 2026 due to material weaknesses in internal control over financial reporting that continued from December 31, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, SharkNinja kept $0.07.
- Revenue$1.77B100.0%
- Cost of revenue−$905.1M51.3%
- Gross profit$860.3M48.7%
- Operating costs−$681.0M38.6%
- Operating income$179.4M10.2%
- Interest, other & tax−$49.6M2.8%
- Net income$129.8M7.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.77B$1.44B | +22.2% |
| Cost of Revenue | $905.14M$736.71M | +22.9% |
| Gross Profit | $860.34M$708.17M | +21.5% |
| R&D Expenses | $109.33M$89.41M | +22.3% |
| Operating Expenses | $680.96M$539.52M | +26.2% |
| Operating Income | $179.38M$168.65M | +6.4% |
| Net Income | $129.82M$139.60M | −7.0% |
| EPS (Basic) | $0.92$0.99 | −7.1% |
| EPS (Diluted) | $0.92$0.98 | −6.1% |
| Shares Outstanding (Basic) | 141.38M141.04M | +0.2% |
| Shares Outstanding (Diluted) | 141.51M141.87M | −0.3% |
05—Questions
Frequently Asked Questions
How did SharkNinja's revenue perform in the second quarter of 2026?
Net sales were $1,765.5 million for the three months ended June 30, 2026, up $320.6 million, or 22.2%, from $1,444.9 million a year earlier. Growth came from Cooking and Beverage Appliances (up 36.5%), Beauty and Home Environment Appliances (up 65.3%), Food Preparation Appliances (up 13.3%) and Cleaning Appliances (up 4.1%). International net sales rose 36.6% and Domestic net sales rose 15.5%.
Why did net income decline despite higher sales?
Operating income increased to $179.4 million from $168.6 million, but other (expense) income, net swung to a $7.8 million expense from $26.0 million of income. The filing attributes this primarily to unrealized foreign currency losses from remeasuring U.S. Dollar-denominated intercompany balances, driven by movement in the British Pound. Operating expenses rose 26.2%, led by sales and marketing and general and administrative costs, including a $22.6 million increase in share-based compensation within G&A.
What is the status of the tariff refund and what impact could it have?
The company had not submitted IEEPA refund claims as of June 30, 2026, so nothing was recognized in the quarter. In July 2026 it submitted claims of approximately $247.1 million through CBP's refund process, and CBP accepted them. The company expects to recognize a benefit of about $247.1 million as a reduction of cost of sales in the third quarter of 2026, with a corresponding receivable. Cash timing remains subject to CBP processing.
How is SharkNinja managing its capital and shareholder returns?
Cash and cash equivalents were $779.8 million at June 30, 2026. Total debt outstanding under the 2023 Credit Agreement was $718.9 million, with no revolver borrowings and $489.8 million available under the $500.0 million revolving facility. During the six months, the company repurchased 1,008,368 shares for $119.7 million, and $630.3 million remained available under the $750.0 million repurchase program. The company stated it was in compliance with its debt covenants.
What control issues did management disclose?
Management concluded that disclosure controls and procedures were not effective as of June 30, 2026, due to material weaknesses in internal control over financial reporting that existed as of December 31, 2025 and continued to exist at June 30, 2026. The remediation plan includes redesigning IT general controls, building a standard SDLC controls framework, enhancing training, and insourcing the Internal Audit function to perform SOX testing. Management stated there is no assurance as to when remediation will be completed.
06—Continue