01—Abstract
Summary
Summary of the 10-Q filed November 4, 2026. Cited figures are marked; the original filing is the authoritative source.
SharkNinja, Inc. reported strong third-quarter 2026 results, with net sales of $1,976.4 milliona for the three months ended September 30, 2026, up from $1,630.2 million a year earlier, and net income of $338.4 million, compared with $188.7 million.
Diluted EPS was $2.39b versus $1.33. Results were materially helped by tariff refund recognition: $243.8 million of IEEPA duty refunds accepted by CBP were recorded as a reduction to cost of sales, partly offset by $45.2 million accrued for amounts payable to factory partners, and $10.5 million of related interest was recorded in interest income. Excluding these and other non-GAAP adjustments, Adjusted Net Income was $330.9 million, or $2.34 per diluted share, versus $1.50 a year earlier, and Adjusted EBITDA was $461.3 million, a 23.3% margin.
For the nine months, net sales rose to $5,154.7 million and net income to $589.6 millionc. Balance sheet and cash flow show a working-capital build ahead of the holiday season. Cash and cash equivalents declined to $487.8 million from $777.3 million at year-end 2025, while inventories rose to $1,428.2 million and accounts receivable to $2,106.3 million.
Net cash from operating activities was $107.4 milliond for the nine months, versus $47.1 million a year earlier. The company repurchased 1,301,500 shares for $169.7 million under a $750.0 million program, leaving $580.3 million available, and had $708.8 million of term loan debt outstanding with $495.3 million available under its revolver.
The filing also discloses that management concluded disclosure controls were not effective as of September 30, 2026, due to material weaknesses in internal control over financial reporting that existed at December 31, 2025 and continued into the quarter. Remediation efforts are ongoing, and the company expects an additional approximately $35.8 million IEEPA refund benefit, with related interest of approximately $3.3 million, in the fourth quarter of 2026.
02—Key points
Key Highlights
- Net sales of $1,976.4 million in Q3 2026, up 21.2% from $1,630.2 million; nine-month net sales of $5,154.7 million, up 19.9%.
- Gross margin of 59.2% in Q3 2026 versus 50.1%, driven by a $243.8 million IEEPA tariff refund benefit net of $45.2 million payable to factory partners.
- Net income of $338.4 million (diluted EPS $2.39) in Q3 2026 versus $188.7 million (diluted EPS $1.33); Adjusted Net Income per diluted share of $2.34 versus $1.50.
- Adjusted EBITDA of $461.3 million in Q3 2026 with a 23.3% margin, versus $316.5 million and 19.4% a year earlier.
- Cash and cash equivalents fell to $487.8 million from $777.3 million at December 31, 2025, as inventories rose to $1,428.2 million and receivables to $2,106.3 million.
- Repurchased 1,301,500 shares for $169.7 million in 2026 under a $750.0 million program, with $580.3 million remaining; the CEO adopted a Rule 10b5-1 plan to sell up to 750,000 shares.
- Management reported that disclosure controls were not effective as of September 30, 2026 due to material weaknesses in internal control over financial reporting, with remediation ongoing.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, SharkNinja kept $0.17.
- Revenue$1.98B100.0%
- Cost of revenue−$806.4M40.8%
- Gross profit$1.17B59.2%
- Operating costs−$727.2M36.8%
- Operating income$442.9M22.4%
- Interest, other & tax−$104.5M5.3%
- Net income$338.4M17.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 4, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.98B$1.63B | +21.2% |
| Cost of Revenue | $806.42M$812.77M | −0.8% |
| Gross Profit | $1.17B$817.47M | +43.1% |
| R&D Expenses | $117.92M$92.83M | +27.0% |
| Operating Expenses | $727.15M$554.58M | +31.1% |
| Operating Income | $442.86M$262.89M | +68.5% |
| Net Income | $338.36M$188.73M | +79.3% |
| EPS (Basic) | $2.40$1.34 | +79.1% |
| EPS (Diluted) | $2.39$1.33 | +79.7% |
| Shares Outstanding (Basic) | 140.96M141.11M | −0.1% |
| Shares Outstanding (Diluted) | 141.52M142.12M | −0.4% |
05—Questions
Frequently Asked Questions
How much of the quarter's profit improvement came from tariff refunds?
The filing records $243.8 million of IEEPA tariff refunds as a reduction to cost of sales and $10.5 million of related interest income in the quarter. These were partly offset by $45.2 million accrued for amounts payable to factory partners, for a net benefit to cost of sales of $198.6 million. Excluding the refund-related items, Adjusted Net Income was $330.9 million, or $2.34 per diluted share, which the company presents as a non-GAAP measure.
Why did cash decline even though operating cash flow was positive?
Net cash provided by operating activities was $107.4 million for the nine months ended September 30, 2026. Cash was used for working capital, with accounts receivable increasing $460.8 million and inventories increasing $436.2 million, partly offset by higher accounts payable. The company also spent $137.2 million on investing activities, $169.7 million on share repurchases and $66.9 million on employee tax withholdings, and it made $30.4 million of debt repayments.
What are the company's material weaknesses and what is being done about them?
The filing states that material weaknesses in internal control over financial reporting, first disclosed in the 2025 Form 10-K, continued to exist as of September 30, 2026, and that disclosure controls were not effective. Remediation includes redesigning IT general controls, a new System Development Life Cycle controls framework completed in the third quarter of 2026, additional control activities, training, accountability policies and insourcing of the Internal Audit function. The company states it cannot assure when remediation will be complete.
What is the company's liquidity position and debt profile?
As of September 30, 2026, the company had $487.8 million of cash and cash equivalents and $495.3 million available under its 2023 Revolving Facility, which had no borrowings outstanding. Term loan debt was $708.8 million, and the company stated it was in compliance with its credit agreement covenants. Management believes existing resources will be sufficient for at least the next 12 months.
What additional tariff refund benefit is expected in the fourth quarter?
The company submitted additional IEEPA refund claims of approximately $35.8 million after September 30, 2026, which CBP accepted in October 2026. The company expects to recognize a benefit of approximately $35.8 million as a reduction of cost of sales, plus related interest of approximately $3.3 million, in the fourth quarter of 2026. The timing of cash receipt remains subject to CBP processing.
06—Continue