Escalade, Inc. reported profits improved 37 percent in the fourth quarter as higher gross margins offset a 2.2 percent decline in sales. For 2026, Escalade plans to refocus on driving growth, marked by the recent additions of AllCornhole and Gold Tip Archery, as well as the purchase of a 110,000-square-foot facility to support its safety and fitness categories.

Fourth Quarter 2025 Highlights

  • Net sales decreased 2.2 percent to $62.6 million
  • Gross margin improved 280 basis points, to 27.7 percent
  • Net income of $3.7 million, or $0.27 per diluted share vs. $2.7 million, or $0.19 per diluted share for 2024
  • EBITDA totaled $6.5 million, an increase of 9.3 percent
  • Cash provided by operations of $14.9 million vs $12.3 million in 2024
  • Total debt decreased 27.9 percent and net leverage was 0.3x
  • Increased quarterly dividend to $0.1525 per share

Full-Year 2025 Highlights

  • Net sales decreased 4.5 percent to $240.2 million
  • Gross margin improved 219 basis points, to 26.9 percent
  • Net income of $13.7 million, or $0.99 per diluted share vs. $13.0 million, or $0.93 per diluted share for 2024
  • EBITDA totaled $23.9 million, a decrease of 8.4 percent
  • Cash provided by operations of $31.0 million vs. $36.0 million in 2024

For the fourth quarter ended December 31, 2025, Escalade reported net income of $3.7 million, or 27 cents per diluted share, versus net income of $2.7 million, or 19 cents per diluted share for the fourth quarter in 2024. Total net sales declined 2.2 percent on a year-over-year basis in the fourth quarter, primarily due to uneven consumer demand across the majority of the company’s product categories, partially offset by improved demand in the archery, billiards, and games categories.

Escalade reported fourth quarter gross margin of 27.7 percent, an increase of 280 basis points versus the prior-year quarter, driven by improved operational efficiencies from lower fixed costs and decreased inventory storage and handling costs.

Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) increased 9.3 percent to $6.5 million in the fourth quarter 2025, versus $5.9 million in the prior-year period. The increase in EBITDA compared to the fourth quarter of 2024 primarily reflects improved gross margins and the impact of the Gold Tip acquisition, partly offset by $0.5 million in non-recurring executive transition expenses.

During the fourth quarter of 2025, the company generated $14.9 million of cash flow from operations, compared to $12.3 million in the prior-year period. Operating cash flow during the fourth quarter reflected seasonal reductions in inventory associated with the holiday selling season, combined with the Company’s efforts to reduce its inventory on hand.

Total debt at the end of the quarter was $18.5 million, down 27.9 percent from $25.6 million at the end of the fourth quarter of last year.

As of December 31, 2025, the Company had total cash and cash equivalents of $11.9 million, together with $52.9 million of availability on its senior secured revolving credit facility maturing in 2027. At the end of the fourth quarter 2025, net debt (total debt less cash) was 0.3x trailing twelve-month EBITDA, down from 0.8x at the end of the fourth quarter of 2024.

Escalade announced a quarterly dividend of $0.1525 per share to be paid to all shareholders of record on April 6, 2026 and payable April 13, 2026.

Management Commentary
“We concluded 2025 with strong margin performance, driven by disciplined operational execution across the business,” said Patrick Griffin, interim president and CEO of Escalade. “Fourth‑quarter margins reflect the cost structure improvements implemented over the last year. Importantly, demand across our higher‑value, premium brands remains resilient, and our diversified product portfolio continues to position us well to navigate an uncertain consumer environment.”

Griffin continued, “As we enter 2026, we are shifting our focus to drive growth while maintaining the operational discipline that delivered our strong performance in 2025. During the fourth quarter we completed the acquisition of AllCornhole, further expanding our presence in a premium, fast‑growing category, and we acquired a 110,000 square foot facility to support growth in our safety and fitness categories. In addition, we completed the integration of the Gold Tip Archery acquisition, which closed in the third quarter and was immediately accretive during the fourth quarter.”

“Our shift to focus on growth is supported by a strong balance sheet and a continued focus on capital efficiency,” Griffin added. “In the fourth quarter, we improved our cash flow 21.2 percent and reduced our total debt by 27.9 percent, resulting in net leverage of 0.3x. Reflecting the confidence we have in the long‑term cash‑generation profile of the business, our Board has approved an increase in our quarterly dividend to $0.1525 per share. Looking ahead, we remain focused on driving working capital efficiencies and we intend to deploy our strong free cash flow toward organic growth investments, strategic M&A, continued debt reduction, and a disciplined return of capital to shareholders.”

Escalade’s brands include Goalrilla in-ground basketball hoops; Stiga tennis tables and accessories; Bear Archery and archery equipment; Brunswick Billiards tables and accessories; Accudart darting; ONIX pickleball; Lifeline fitness products; and Rave Sports water recreation products.

Image courtesy Escalade