Company reports 16% annual sales growth and $750M buyback plan for 2026

SharkNinja's Fourth Quarter 2025 and FY 2025 Earnings Call Transcript

DATE

Company reports 16% annual sales growth and $750M buyback plan for 2026

Wednesday, February 11, 2026 at 8:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer - Mark Barrocas
• Chief Financial Officer - Adam Quigley
• Senior Vice President, Investor Relations and Treasury - James Lamb

TAKEAWAYS

• Net Sales Growth: Net sales increased 17.6% year over year in the quarter, reaching $2.1 billion, driven by double-digit growth across domestic and international markets.
• Domestic Net Sales: U.S. net sales rose 15.7% to slightly over $1.37 billion in the quarter, indicating ongoing demand and retailer momentum.
• International Net Sales: International net sales increased 21.4% to $729 million in the quarter, reflecting broad-based geographic expansion.
• UK Performance: The UK business grew 9.2%, reaching $326 million in quarterly sales, even as air fryers, the largest UK category, saw declines offset by other portfolio categories.
• Segment Results: Cleaning category net sales increased 3.4% to $670 million; cooking and beverage grew 11.7% to $667 million; food preparation rose 28.1% to $438 million; beauty and home environment climbed 3.2% to $326 million.
• Adjusted EBITDA: Adjusted EBITDA grew 36% year over year to $395 million in the quarter, representing an 18.8% margin and expanding approximately 250 basis points.
• Full-Year Results: Full-year net sales totaled $6.4 billion, up 16%, with adjusted EBITDA of $1.14 billion and margin up roughly 50 basis points to 17.7%.
• Adjusted Earnings Per Share: Adjusted EPS reached $1.93 for the quarter, a 38% increase, while full-year adjusted EPS hit $5.28, up nearly 21%.
• Gross Margins: Adjusted gross margin for the quarter was 48.2%, up nearly 40 basis points; GAAP gross margin increased 90 basis points to 47.9%.
• Operating Expense Leverage: Adjusted operating expenses were $645 million, or 30.7% of net sales, down from 33.5% the prior year, achieving nearly 280 basis points of leverage.
• Research and Development: R&D expenses rose 13.1% to $98 million, leveraging 20 basis points, supporting continued innovation.
• Sales and Marketing: Sales and marketing expenses increased 8% to $459 million, achieving nearly 200 basis points of leverage.
• General and Administrative: G&A expenses declined 13% to $107 million, resulting in approximately 180 basis points of leverage.
• Balance Sheet Strength: The company exited the year with $777 million in cash and equivalents, up over 100%; total inventories were $1 billion, and total debt stood at $739 million.
• Share Repurchase Authorization: The board authorized a $750 million share repurchase program, intended "to repurchase shares opportunistically while also planning to offset the natural dilution from stock-based compensation."
• 2026 Guidance: Management projects 10%-11% net sales growth, adjusted EPS of $5.90 to $6.00 (up 12%-14%), and adjusted EBITDA of $1.27 billion to $1.28 billion (12%-13% growth), assuming current tariff levels persist.
• International Model Shift: The company transitioned to direct operations in the Nordics, Poland, and Benelux in the quarter, with Italy and Spain expected to follow in the first half of 2026.
• Product Innovation Pipeline: SharkNinja entered two new subcategories in 2025, bringing the total to 38, and plans two more category launches in 2026 with a pipeline of 25 new products.
• Market Share Gains: Management credited market share gains across all four category groupings in 2025, demonstrating broad-based competitive momentum even as core markets contracted.
• Social Media Scale: SharkNinja's social media following reached 3.9 million across Instagram and TikTok, a 119% rise, outpacing the peer average of 8% growth.

SUMMARY

Management outlined a three-pillar growth strategy centered on category expansion, share gains in core segments, and accelerated international growth, with the direct-to-consumer and omnichannel investments underpinning a global scaling model. The company completed its supply chain diversification, now able to manufacture nearly all U.S. volume outside China, reducing tariff and geopolitical risk and entering the first full year of optimization in 2026. The inaugural $750 million share repurchase program marks a significant milestone for capital allocation and was framed as "a testament to our operational discipline and cash management execution." Artificial intelligence initiatives have progressed from call center analytics to plans for AI-enabled features in products launching in 2026, especially within coffee, air purification, and robotics segments.

INDUSTRY GLOSSARY

• Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, excluding non-recurring or non-cash items, used internally by SharkNinja as a primary profitability metric.
• DTC (Direct-to-Consumer): Sales channel involving direct engagement and sales to end customers without retail intermediaries, highlighted as a strategic focus for SharkNinja's global expansion.
• Subcategory: Distinct product groups within broader appliance categories, referenced in relation to innovation milestones and category count.
• Omnichannel: Integrated retail strategy combining physical and digital distribution to provide a consistent consumer experience, identified as a key go-to-market approach.