Escalade, Inc. (NASDAQ:ESCA) released its third-quarter 2026 earnings results on October 29, 2026, reporting net sales of $65.6 million, net income of $6.7 million, and a quarterly dividend of $0.1525 per share.

Key Highlights

  • Net sales of $65.6 million: A decrease of 3.2% compared to the third quarter of 2025, according to the filing.
  • Gross margin of 29.4%: An improvement of 123 basis points versus the prior-year period.
  • Net income of $6.7 million: Equal to $0.48 diluted earnings per share, up from $5.6 million, or $0.40 diluted earnings per share, in Q3 2025.
  • EBITDA of $10.0 million: An increase of $1.4 million compared to $8.6 million in the prior-year period, including a $1.6 million tariff-cost recovery benefit.
  • Cash from operations of $14.9 million: Compared to cash used of $1.0 million in the same quarter of 2025.
  • Total debt reduced to $13.1 million: Down from $20.2 million at the end of Q3 2025 and $18.5 million at year-end 2025.
  • Quarterly dividend of $0.1525 per share: Payable January 11, 2027, to shareholders of record on January 4, 2027.

Escalade Q3 2026 Results: Sales Mix, Tariff Recoveries, and Balance Sheet Improvement

According to the filing, Escalade reported net sales of $65.6 million for the three months ended September 30, 2026, a decline of 3.2% year over year. The company attributed the decrease primarily to lower sales in its basketball, indoor games, and table tennis categories, noting that the prior-year period had benefited from tariff-related order timing that pulled demand from Q2 2025 into Q3 2025. Partially offsetting these declines, the filing cited increases in the archery category, including what the company described as "strong vertical bow demand" and the incremental contribution from its September 2025 acquisition of Gold Tip, along with increased demand in safety and outdoor games.

Gross margin of 29.4% represented an improvement of 123 basis points versus Q3 2025, which the filing attributed to better absorption and a favorable customer and sales mix. Pre-tax income included tariff recoveries of $1.7 million, while EBITDA of $10.0 million included a $1.6 million benefit from recovery of tariff costs incurred in prior periods. Operating income was $8.7 million, compared to $7.3 million in the prior-year quarter.

The filing reported total cash and equivalents of $24.5 million as of September 30, 2026, with $60.0 million of availability on the company's senior secured revolving credit facility maturing in 2027. Total debt stood at $13.1 million at quarter end, down from $20.2 million a year earlier. Patrick J. Griffin, President and Chief Executive Officer, stated that the company also recently acquired ASL Solutions, describing it as an action that "broaden[s] and strengthen[s] our business." The filing notes that forward-looking statements made by management are subject to the company's cautionary language regarding risks and uncertainties.

What Was Disclosed

Escalade disclosed its Q3 2026 financial results, including net sales, gross margin, net income, EBITDA, cash flow from operations, total debt, and cash balances as of September 30, 2026, along with a declared quarterly dividend of $0.1525 per share.