Tandy Leather Factory's 2025 earnings reveal growth amid rising costs
Tandy Leather Factory reported mixed financial results for 2025. While revenues grew modestly, the company faced higher operating costs and an operating loss. Despite this, net income saw a significant increase compared to the previous year.
The company's full-year sales reached $76.3 million in 2025, a 2.6% rise from 2024's $74.4 million. Gross margins also improved slightly, climbing from 56.2% to 57.0%. However, operating expenses rose sharply, jumping 8.1% to $44.5 million, pushing expenses to 58.3% of sales—up from 55.4% in 2024.
This increase in costs led to an operating loss of $1.0 million, a reversal from 2024's $0.6 million profit. Adjusted EBITDA from operations remained low at $0.6 million. Yet, net income surged to $9.1 million, a dramatic rise from $0.8 million in 2024, partly due to non-operational factors.
By the end of 2025, the company held $16.1 million in cash and equivalents. Shareholders also received a special dividend of $0.75 per share. Globally, Tandy Leather Factory expanded its retail presence, operating stores in nine countries outside North America, including six locations in Australia and additional outlets in the UK, Spain, Italy, France, Germany, the Netherlands, Sweden, and New Zealand.
Tandy Leather Factory's 2025 results show a business balancing growth with rising costs. The company's revenue and net income improved, but higher expenses led to an operating loss. With a stronger cash position and global retail footprint, the firm continues to navigate a challenging market.
