Escalade, Incorporated

Escalade reported second-quarter 2026 net sales of $57.7 million, up 6% year over year. Net income was $9.4 million, or $0.68 per diluted share, versus the prior-year period, and gross margin expanded to 26.2% from 24.7%. EBITDA rose to $13.2 million from $3.9 million, while SG&A was $12.5 million, up $2.2 million year over year. Operating cash flow was $8.7 million versus $13.3 million a year ago, cash and equivalents were $16.4 million, and total debt was $14.9 million, all current. Management did not give formal next-quarter or full-year financial guidance, but said it expects to navigate second-half macro headwinds, keep growing top line profitably, and use tariff refunds to offset freight, commodity, and potential new tariff pressures while funding promotions and facility investments.

Patrick Griffin said the quarter validated Escalade’s strategy of profitable growth through innovation, market share gains, disciplined cost control, and capital allocation. He highlighted strong acceptance of new archery products, continued momentum in safety, table tennis, and basketball, and new launches in pickleball, basketball, and billiards. His tone was constructive but cautious on the macro backdrop, citing inflation, higher energy costs, and softer consumer spending as risks, while saying the business is positioned to keep growing profitably.

Stephen Wawrin said the financial improvement was driven by gross profit leverage and tariff recoveries, including a $9.9 million benefit to operating profit. He noted SG&A rose to $12.5 million, mainly from acquired businesses and variable compensation, while cash flow from operations was $8.7 million versus $13.3 million due to working capital use. He also said the company ended the quarter with $16.4 million in cash and equivalents and $14.9 million of debt, with debt all current.

In Q&A, analysts pressed management on higher freight and commodity inflation and whether Escalade would raise prices. Griffin said pricing is “pretty good” in the current environment, that near-term pricing changes are not expected, and that some tariff refunds will be used to absorb freight pressure and support incremental promotions in the third and fourth quarters. Asked where market share gains were coming from, he pointed to Bear Archery’s Trophy Ridge accessory line after new ATA show launches and to the safety category, including canopy weights and plastic chain.