01—Abstract
Summary
Summary of the 8-K filed November 4, 2026. Cited figures are marked; the original filing is the authoritative source.
SharkNinja, Inc. reported third quarter 2026 results for the quarter ended September 30, 2026, with net sales increasing 21.2% to $1,976.4 milliona and net income increasing 79.3% to $338.4 million, or $2.39 per diluted share.
Adjusted EBITDA rose 45.7% to $461.3 millionb, or 23.3% of net sales. Gross margin rose 910 basis points to 59.2%, primarily driven by recognized benefits from refund claims for duties paid under the International Emergency Economic Powers Act (IEEPA), net of amounts payable to factory partners. These IEEPA refund benefits were excluded from all Adjusted measures, so the Adjusted results show a smaller improvement, with Adjusted Gross Margin up 560 basis points to 55.9% and Adjusted Net Income up 55.1% to $330.9 million.
Management raised its fiscal 2026 outlook across key metrics. Net sales are now expected to increase 18.0% to 19.0% (previously 16.0% to 17.0%), Adjusted Net Income per diluted share is expected between $6.65c and $6.75 (previously $6.45 to $6.55), and Adjusted EBITDA is expected between $1,380 million and $1,391 million (previously $1,357 million to $1,369 million). The company stated that the updated outlook reflects continued operating strength together with recognition of tariff refund benefits, and that the total refund claim attributable to fiscal 2025 duties is now approximately $145.4 million, with about $35.8 million expected in the fourth quarter of 2026.
On the balance sheet, cash and cash equivalents were $487.8 milliond at September 30, 2026, down from $777.3 million at December 31, 2025, and total debt excluding deferred financing costs was $708.8 million. Inventories increased 42.5% to $1,428.2 million, and accounts receivable rose to $2,106.3 million from $1,667.1 million at year-end 2025.
Nine-month operating cash flow was $107.4 million, compared with $47.1 million in the prior-year period. During the nine months, the company repurchased 1,301,500 ordinary shares for $169.7 million under its $750.0 million repurchase program.
02—Key points
Key Highlights
- Net sales rose 21.2% to $1,976.4 million in Q3 2026, the company's second consecutive quarter above 20% growth and its 14th consecutive quarter of double-digit growth, per the CEO.
- GAAP gross margin expanded 910 basis points to 59.2%, driven mainly by $243.8 million of IEEPA duty refund benefits less $45.2 million payable to factory partners; Adjusted Gross Margin excluded the refund benefit and rose 560 basis points to 55.9%.
- Net income increased 79.3% to $338.4 million ($2.39 per diluted share), while Adjusted Net Income increased 55.1% to $330.9 million ($2.34 per diluted share).
- Adjusted EBITDA increased 45.7% to $461.3 million, or 23.3% of net sales, versus 19.4% in the prior-year quarter.
- Fiscal 2026 outlook raised: net sales growth now 18.0% to 19.0%, Adjusted EPS $6.65 to $6.75, and Adjusted EBITDA $1,380 million to $1,391 million.
- Inventories rose 42.5% to $1,428.2 million from year-end 2025, and cash declined to $487.8 million from $777.3 million, while the company repurchased $169.7 million of shares year to date.
- Management noted that Q3 IEEPA refund recognition of $109.6 million was below its original expectation of approximately $123.6 million, and that about $35.8 million of additional claims were submitted after quarter end.
03—Questions
Frequently Asked Questions
How much of the margin improvement came from tariff refunds rather than operations?
The filing attributes the GAAP gross margin increase of 910 basis points primarily to recognition of IEEPA duty refund benefits, net of amounts payable to factory partners, along with cost optimization and favorable category and channel mix, partly offset by unfavorable foreign currency and increased retailer activations. Gross margin benefited from $243.8 million of refund claims less $45.2 million payable to factory partners. Because these refunds were excluded from Adjusted measures, Adjusted Gross Margin increased a smaller 560 basis points to 55.9%.
Why did the company raise its full-year outlook?
Management attributed the raised outlook to continued operating strength together with recognition of benefits from tariff refund claims. Net sales growth guidance moved to 18.0% to 19.0% from 16.0% to 17.0%, and Adjusted EBITDA guidance moved to $1,380 million to $1,391 million from $1,357 million to $1,369 million. The Adjusted guidance excludes the refund benefits, so the Adjusted EBITDA raise is tied to the company's stated operating performance.
How much tariff refund is still expected to be recognized?
The company now expects the total refund claim attributable to fiscal 2025 duties to be approximately $145.4 million, which includes the $109.6 million recognized in the third quarter and an additional approximately $35.8 million expected in the fourth quarter of 2026. Separately, the company submitted about $35.8 million of additional refund claims after September 30, 2026 through Phase 3 of the CBP refund process, which will also be excluded from Adjusted results when recognized.
How did cash flow and the balance sheet change?
Cash and cash equivalents were $487.8 million at September 30, 2026, versus $777.3 million at December 31, 2025. Total debt, excluding unamortized deferred financing costs, was $708.8 million, and the revolving credit facility had $495.3 million of available capacity. Net cash provided by operating activities was $107.4 million for the nine months, compared with $47.1 million a year earlier, while accounts receivable and inventories both increased substantially over the same period.
04—Continue