SharkNinja Reports Fourth Quarter and Full Year 2025 Results
Provides Fiscal Year 2026 Outlook
Announces Inaugural
Highlights for the Fourth Quarter 2025 as compared to the Fourth Quarter 2024
-
Net sales increased 17.6% to
$2,101.4 million . - Gross margin and Adjusted Gross Margin increased 90 and 40 basis points, respectively.
-
Net income increased 98.3% to
$255.2 million . Adjusted Net Income increased 38.9% to$274.5 million . -
Adjusted EBITDA increased 36.0% to
$395.3 million , or 18.8% of net sales.
Highlights for the Year Ended 2025 as compared to the Year Ended 2024
-
Net sales increased 15.7% to
$6,399.2 million . - Gross margin and Adjusted Gross Margin increased 90 and 30 basis points, respectively.
-
Net income increased 59.9% to
$701.4 million . Adjusted Net Income increased 21.6% to$749.6 million . -
Adjusted EBITDA increased 19.4% to
$1,135.5 million , or 17.7% of net sales.
“Looking at 2025 as a whole, we achieved 15.7% net sales growth to
Three Months Ended
Net sales increased 17.6% to
-
Cleaning Appliances net sales increased by
$21.9 million , or 3.4%, to$669.9 million , compared to$648.0 million in the prior year quarter, driven by strength in the carpet extractor and robotics sub-categories. -
Cooking and Beverage Appliances net sales increased by
$70.0 million , or 11.7%, to$667.3 million , compared to$597.3 million in the prior year quarter, driven by sales momentum of the Ninja Luxe Café espresso machine, partially offset by a decline in the outdoor grill and kitchenware sub-categories. -
Food Preparation Appliances net sales increased by
$96.1 million , or 28.1%, to$438.0 million , compared to$342.0 million in the prior year quarter, driven by strong sales of the frozen drinks sub-category. -
Beauty and Home Environment Appliances net sales increased by
$126.3 million , or 63.2%, to$326.2 million , compared to$199.9 million in the prior year quarter, driven by strength of fans and air purifiers, as well as strong performance from the launch of face masks in 2025.
Geographically, Domestic net sales increased by
Gross profit increased 20.0% to
Research and development expenses increased 13.1% to
Sales and marketing expenses increased 8.0% to
General and administrative expenses decreased 13.0% to
Operating income increased 67.6% to
Net income increased 98.3% to
Adjusted Net Income increased 38.9% to
Adjusted EBITDA increased 36.0% to
Year Ended
Net sales increased 15.7% to
-
Cleaning Appliances net sales increased by
$142.2 million , or 6.9%, to$2,205.8 million , compared to$2,063.5 million in the prior year, driven by the carpet extraction and cordless vacuums sub-categories. -
Cooking and Beverage Appliances net sales increased by
$98.7 million , or 5.7%, to$1,816.3 million , compared to$1,717.7 million in the prior year, driven by sales of our Ninja Luxe Café espresso machine and the strength ofNinja Crispi , offset by declines in the core air fryer and outdoor grill sub-categories. -
Food Preparation Appliances net sales increased by
$372.0 million , or 31.6%, to$1,550.7 million , compared to$1,178.7 million in the prior year, driven by strong sales of our frozen drinks sub-category. -
Beauty and Home Environment Appliances net sales increased by
$257.6 million , or 45.3%, to$826.3 million , compared to$568.7 million in the prior year, driven by strength of fans and air purifiers, as well as strong performance from the launch of face masks in 2025.
Geographically, Domestic net sales increased by
Gross profit increased 17.8% to
Research and development expenses increased 7.8% to
Sales and marketing expenses increased 17.3% to
General and administrative expenses decreased 10.0% to
Operating income increased 42.9% to
Net income increased 59.9% to
Adjusted Net Income increased 21.6% to
Adjusted EBITDA increased 19.4% to
Balance Sheet and Cash Flow Highlights
As of
Inventories as of
Share Repurchase Program
Today, the Company announced that its Board of Directors authorized a share repurchase program of up to
Fiscal 2026 Outlook
For fiscal year 2026, SharkNinja expects:
- Net sales to increase 10.0% to 11.0% compared to the prior year.
-
Adjusted Net Income per diluted share between
$5.90 and$6.00 , reflecting a 11.7% to 13.6% increase compared to the prior year. -
Adjusted EBITDA between
$1,270 million and$1,280 million , reflecting a 11.8% to 12.7% increase compared to the prior year. - A GAAP effective tax rate of approximately 22.0% to 23.0%.
- Diluted weighted average shares outstanding of approximately 143.5 million.
-
Capital expenditures in the range of
$190 million to$210 million primarily to support investments in new product launches and technology.
Uncertainty and instability of the current operating environment, geopolitical landscape, and global economies, including changes in tariff rates, could affect this outlook and our future results.
Conference Call Details
A conference call to discuss the fourth quarter 2025 financial results and fiscal 2026 outlook is scheduled for today,
About SharkNinja
SharkNinja is a global product design and technology company, with a diversified portfolio of 5-star rated lifestyle solutions that positively impact people’s lives in homes around the world. Powered by two trusted, global brands, Shark and Ninja, the company has a proven track record of bringing disruptive innovation to market and developing one consumer product after another has allowed SharkNinja to enter multiple product categories, driving significant growth and market share gains. Headquartered in
Forward-looking statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our future business, financial condition, results of operations and prospects and fiscal 2026 outlook. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or phrases or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not statements of historical fact, and are based on current expectations, estimates and projections about our industry as well as certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which you should consider and read carefully, including but not limited to risks related to: our ability to maintain and strengthen our brands to generate and maintain ongoing demand for our products; our ability to commercialize a continuing stream of new products and line extensions; our ability to manage our future growth effectively; the level of consumer spending on our products; our ability to penetrate and expand into new markets; our ability to maintain product safety, quality and performance; highly competitive markets; our reliance on suppliers; our ability to timely and effectively obtain shipments of products from our suppliers and deliver products to our retailers, consumers and distributors; our ability to maintain existing consumers and attract new consumers; our ability to expand our DTC sales channel; our significant international operations; our ability to accurately forecast demand and manage product inventory; inflation, changes in the cost or availability of raw materials, energy, transportation and other necessary supplies and services; our reliance on our retailers and distributors; use of social media and influencers; financial difficulties; operational risks; our products being counterfeited or imitated in the market; payment-related risks; the failure of any bank in which we deposit our funds; seasonal and quarterly variations; conflicts with our retailers; our ability to generate anticipated cost savings, successfully implement our strategies or efficiently manage our supply chain and manufacturing processes; potential acquisitions of or investments in other companies; our ability to meet demand and store inventory; our dependence on highly skilled personnel; intellectual property, information technology and data privacy; our legal, tax, and regulatory environment, including significant changes to
This list of factors should not be construed as exhaustive and should be read in conjunction with those described in our Annual Report on Form 10-K filed with the
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|
||||||
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CONSOLIDATED BALANCE SHEETS |
||||||
|
(in thousands, except share and per share data) |
||||||
|
|
As of |
|||||
|
|
|
2025 |
|
|
2024 |
|
|
Assets |
|
|
|
|||
|
Current assets: |
|
|
|
|||
|
Cash and cash equivalents |
$ |
777,289 |
|
$ |
363,669 |
|
|
Accounts receivable, net |
|
1,667,143 |
|
|
1,266,595 |
|
|
Inventories |
|
1,002,205 |
|
|
899,989 |
|
|
Prepaid expenses and other current assets |
|
164,628 |
|
|
114,008 |
|
|
Total current assets |
|
3,611,265 |
|
|
2,644,261 |
|
|
Property and equipment, net |
|
232,226 |
|
|
211,464 |
|
|
Operating lease right-of-use assets |
|
142,487 |
|
|
146,257 |
|
|
Intangible assets, net |
|
451,137 |
|
|
462,678 |
|
|
|
|
834,781 |
|
|
834,781 |
|
|
Deferred tax assets |
|
10,706 |
|
|
43,093 |
|
|
Other assets, noncurrent |
|
66,832 |
|
|
51,625 |
|
|
Total assets |
$ |
5,349,434 |
|
$ |
4,394,159 |
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|||
|
Current liabilities: |
|
|
|
|||
|
Accounts payable |
$ |
679,534 |
|
$ |
612,031 |
|
|
Accrued expenses and other current liabilities |
|
1,016,645 |
|
|
841,529 |
|
|
Tax payable |
|
38,092 |
|
|
36,548 |
|
|
Debt, current |
|
39,344 |
|
|
39,344 |
|
|
Total current liabilities |
|
1,773,615 |
|
|
1,529,452 |
|
|
Debt, noncurrent |
|
696,795 |
|
|
736,139 |
|
|
Operating lease liabilities, noncurrent |
|
140,981 |
|
|
145,377 |
|
|
Deferred tax liabilities |
|
16,252 |
|
|
9,931 |
|
|
Other liabilities, noncurrent |
|
45,580 |
|
|
37,288 |
|
|
Total liabilities |
|
2,673,223 |
|
|
2,458,187 |
|
|
Shareholders’ equity: |
|
|
|
|||
|
Ordinary shares, |
|
14 |
|
|
14 |
|
|
Additional paid-in capital |
|
1,045,504 |
|
|
1,038,213 |
|
|
Retained earnings |
|
1,610,398 |
|
|
909,024 |
|
|
Accumulated other comprehensive income (loss) |
|
20,295 |
|
|
(11,279 |
) |
|
Total shareholders’ equity |
|
2,676,211 |
|
|
1,935,972 |
|
|
Total liabilities and shareholders’ equity |
$ |
5,349,434 |
|
$ |
4,394,159 |
|
|
|
|||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
|
(in thousands, except share and per share data) |
|||||||||||||||
|
|
Three Months Ended
|
|
Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Net sales(1)(2) |
$ |
2,101,434 |
|
|
$ |
1,787,187 |
|
|
$ |
6,399,188 |
|
|
$ |
5,528,639 |
|
|
Cost of sales |
|
1,093,806 |
|
|
|
947,719 |
|
|
|
3,262,698 |
|
|
|
2,866,648 |
|
|
Gross profit |
|
1,007,628 |
|
|
|
839,468 |
|
|
|
3,136,490 |
|
|
|
2,661,991 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Research and development |
|
98,235 |
|
|
|
86,832 |
|
|
|
368,073 |
|
|
|
341,289 |
|
|
Sales and marketing |
|
458,651 |
|
|
|
424,551 |
|
|
|
1,458,027 |
|
|
|
1,243,145 |
|
|
General and administrative |
|
106,945 |
|
|
|
122,963 |
|
|
|
390,109 |
|
|
|
433,395 |
|
|
Total operating expenses |
|
663,831 |
|
|
|
634,346 |
|
|
|
2,216,209 |
|
|
|
2,017,829 |
|
|
Operating income |
|
343,797 |
|
|
|
205,122 |
|
|
|
920,281 |
|
|
|
644,162 |
|
|
Interest expense, net |
|
(9,424 |
) |
|
|
(17,233 |
) |
|
|
(48,600 |
) |
|
|
(63,715 |
) |
|
Other (expense) income, net |
|
(4,506 |
) |
|
|
(22,948 |
) |
|
|
28,597 |
|
|
|
(7,980 |
) |
|
Income before income taxes |
|
329,867 |
|
|
|
164,941 |
|
|
|
900,278 |
|
|
|
572,467 |
|
|
Provision for income taxes |
|
74,655 |
|
|
|
36,225 |
|
|
|
198,904 |
|
|
|
133,762 |
|
|
Net income |
$ |
255,212 |
|
|
$ |
128,716 |
|
|
$ |
701,374 |
|
|
$ |
438,705 |
|
|
Net income per share, basic |
$ |
1.81 |
|
|
$ |
0.92 |
|
|
$ |
4.97 |
|
|
$ |
3.14 |
|
|
Net income per share, diluted |
$ |
1.80 |
|
|
$ |
0.91 |
|
|
$ |
4.94 |
|
|
$ |
3.11 |
|
|
Weighted-average number of shares used in computing net income per share, basic |
|
141,150,851 |
|
|
|
140,284,961 |
|
|
|
140,984,108 |
|
|
|
139,935,525 |
|
|
Weighted-average number of shares used in computing net income per share, diluted |
|
142,129,331 |
|
|
|
141,517,978 |
|
|
|
142,089,766 |
|
|
|
141,083,853 |
|
|
(1) |
|
Net sales in our product categories were as follows: |
|
|
Three Months Ended
|
|
Year Ended |
||||||||
|
($ in thousands) |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Cleaning Appliances |
$ |
669,935 |
|
$ |
648,026 |
|
$ |
2,205,757 |
|
$ |
2,063,514 |
|
Cooking and Beverage Appliances |
|
667,255 |
|
|
597,283 |
|
|
1,816,349 |
|
|
1,717,654 |
|
Food Preparation Appliances |
|
438,023 |
|
|
341,953 |
|
|
1,550,744 |
|
|
1,178,735 |
|
Beauty and Home Environment Appliances |
|
326,221 |
|
|
199,925 |
|
|
826,338 |
|
|
568,736 |
|
Total net sales |
$ |
2,101,434 |
|
$ |
1,787,187 |
|
$ |
6,399,188 |
|
$ |
5,528,639 |
|
(2) |
|
Net sales by region, based on the billing address of customers were as follows: |
|
|
Three Months Ended
|
|
Year Ended |
||||||||
|
($ in thousands) |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Domestic(a) |
$ |
1,372,384 |
|
$ |
1,186,555 |
|
$ |
4,306,638 |
|
$ |
3,795,707 |
|
International(b) |
|
729,050 |
|
|
600,632 |
|
|
2,092,550 |
|
|
1,732,932 |
|
Total net sales |
$ |
2,101,434 |
|
$ |
1,787,187 |
|
$ |
6,399,188 |
|
$ |
5,528,639 |
|
(a) Domestic consists of net sales in |
|||||||||||
|
(b) International consists of net sales in markets outside |
|||||||||||
Cash Flows
The following table summarizes our cash flows for the periods presented:
|
|
Year Ended |
||||||||||
|
($ in thousands) |
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net cash provided by operating activities |
$ |
634,132 |
|
|
$ |
446,620 |
|
|
$ |
280,601 |
|
|
Net cash used in investing activities |
|
(159,779 |
) |
|
|
(151,181 |
) |
|
|
(118,075 |
) |
|
Net cash used in financing activities |
|
(77,081 |
) |
|
|
(81,221 |
) |
|
|
(234,868 |
) |
Non-GAAP Financial Measures
In addition to the measures presented in our consolidated financial statements, we regularly review other financial measures, defined as non-GAAP financial measures by the
The key non-GAAP financial measures we consider are Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Effective Tax Rate. These non-GAAP financial measures are used by both management and our Board, together with comparable GAAP information, in evaluating our current performance and planning our future business activities. These non-GAAP financial measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or which occur relatively infrequently and/or which management considers to be unrelated to our core operations, as well as the cost of sales from (i) inventory markups that are being eliminated as a result of the transition of certain product procurement functions from a subsidiary of
SharkNinja does not provide a reconciliation of forward-looking Adjusted Net Income and Adjusted EBITDA to GAAP net income because such reconciliations are not available without unreasonable efforts. This is due to the inherent difficulty in forecasting with reasonable certainty certain amounts that are necessary for such reconciliations, including, in particular, the realized and unrealized foreign currency gains or losses reported within other expense. For the same reasons, we are unable to forecast with reasonable certainty all deductions and additions needed in order to provide forward-looking GAAP net income at this time. The amount of these deductions and additions may be material, and, therefore, could result in forward-looking GAAP net income being materially different or less than forward-looking Adjusted Net Income, and Adjusted EBITDA. See “Forward-looking statements” above.
We define Adjusted Gross Profit as gross profit as adjusted to exclude (i) certain items that we do not consider indicative of our ongoing operating performance following the separation, including the cost of sales from the Product Procurement Adjustment and (ii) the impact of a voluntary product recall. We define Adjusted Gross Margin as Adjusted Gross Profit divided by net sales. We believe that Adjusted Gross Profit and Adjusted Gross Margin are appropriate measures of our operating performance because each eliminates certain other adjustments that do not relate to the ongoing performance of our business.
The following table reconciles Adjusted Gross Profit and Adjusted Gross Margin to the most comparable GAAP measure, gross profit and gross margin, respectively, for the periods presented:
|
|
Three Months Ended
|
|
Year Ended |
||||||||||||
|
($ in thousands, except %) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Net sales |
$ |
2,101,434 |
|
|
$ |
1,787,187 |
|
|
$ |
6,399,188 |
|
|
$ |
5,528,639 |
|
|
Cost of sales |
|
(1,093,806 |
) |
|
|
(947,719 |
) |
|
|
(3,262,698 |
) |
|
|
(2,866,648 |
) |
|
Gross profit |
|
1,007,628 |
|
|
|
839,468 |
|
|
|
3,136,490 |
|
|
|
2,661,991 |
|
|
Gross margin |
|
47.9 |
% |
|
|
47.0 |
% |
|
|
49.0 |
% |
|
|
48.1 |
% |
|
Product Procurement Adjustment(1) |
|
4,249 |
|
|
|
15,195 |
|
|
|
18,725 |
|
|
|
53,071 |
|
|
Product recall(2) |
|
75 |
|
|
|
— |
|
|
|
4,616 |
|
|
|
— |
|
|
Adjusted Gross Profit |
$ |
1,011,952 |
|
|
$ |
854,663 |
|
|
$ |
3,159,831 |
|
|
$ |
2,715,062 |
|
|
Net sales |
$ |
2,101,434 |
|
|
$ |
1,787,187 |
|
|
$ |
6,399,188 |
|
|
$ |
5,528,639 |
|
|
Adjusted Gross Margin |
|
48.2 |
% |
|
|
47.8 |
% |
|
|
49.4 |
% |
|
|
49.1 |
% |
|
(1) |
|
Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, |
| (2) | Adjusted for gross profit impact from a voluntary product recall that was recognized during the three months and year ended |
We define Adjusted Operating Income as operating income excluding (i) share-based compensation, (ii) certain litigation costs, (iii) amortization of certain acquired intangible assets, (iv) certain transaction-related costs, (v) certain items that we do not consider indicative of our ongoing operating performance following the separation, including cost of sales from our Product Procurement Adjustment, and (vi) the impact of a voluntary product recall.
The following table reconciles Adjusted Operating Income to the most comparable GAAP measure, operating income, for the periods presented:
|
|
Three Months Ended
|
|
Year Ended |
|||||||||
|
($ in thousands) |
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
Operating income |
$ |
343,797 |
|
$ |
205,122 |
|
|
$ |
920,281 |
|
$ |
644,162 |
|
Share-based compensation(1) |
|
12,274 |
|
|
37,190 |
|
|
|
43,872 |
|
|
84,531 |
|
Litigation costs (recovery), net(2) |
|
— |
|
|
(5,884 |
) |
|
|
827 |
|
|
36,807 |
|
Amortization of acquired intangible assets(3) |
|
4,897 |
|
|
4,897 |
|
|
|
19,587 |
|
|
19,587 |
|
Transaction-related costs(4) |
|
1,509 |
|
|
— |
|
|
|
8,458 |
|
|
1,342 |
|
Product Procurement Adjustment(5) |
|
4,249 |
|
|
15,195 |
|
|
|
18,725 |
|
|
53,071 |
|
Product recall(6) |
|
576 |
|
|
— |
|
|
|
11,188 |
|
|
— |
|
Adjusted Operating Income |
$ |
367,302 |
|
$ |
256,520 |
|
|
$ |
1,022,938 |
|
$ |
839,500 |
|
(1) |
|
Represents non-cash expense related to awards issued from the SharkNinja equity incentive plan. |
|
|
||
|
(2) |
Represents litigation costs incurred and related settlements for certain patent infringement claims, false advertising claims, and any related settlement costs and recoveries, which were recorded in general and administrative expenses. |
|
|
|
||
|
(3) |
Represents amortization of acquired intangible assets that we do not consider normal recurring operating expenses, as the intangible assets relate to JS Global’s acquisition of our business. We exclude amortization charges for these acquisition-related intangible assets for purposes of calculating Adjusted Operating Income, although revenue is generated, in part, by these intangible assets, to eliminate the impact of these non-cash charges that are significantly impacted by the timing and valuation of JS Global’s acquisition of our business, as well as the inherent subjective nature of purchase price allocations. Of the amortization of acquired intangible assets, |
|
|
|
||
|
(4) |
Represents certain costs incurred related to secondary offering transactions and transaction-related due diligence initiatives. |
|
|
|
||
|
(5) |
Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, SNHK, and no longer purchase inventory from a purchasing office wholly owned by |
|
|
|
||
|
(6) |
Adjusted for operating income impact from a voluntary product recall that was recognized during the three months and year ended |
We define Adjusted Net Income as net income excluding (i) share-based compensation, (ii) certain litigation costs, (iii) foreign currency gains and losses, net, (iv) amortization of certain acquired intangible assets, (v) certain transaction-related costs, (vi) certain items that we do not consider indicative of our ongoing operating performance following the separation, including cost of sales from our Product Procurement Adjustment, (vii) the impact of a voluntary product recall and (viii) the tax impact of the adjusted items.
Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the diluted weighted average number of ordinary shares.
The following table reconciles Adjusted Net Income and Adjusted Net Income Per Share to the most comparable GAAP measures, net income and net income per share, diluted, respectively, for the periods presented:
|
|
Three Months Ended
|
|
Year Ended |
||||||||||||
|
($ in thousands, except share and per share amounts) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Net income |
$ |
255,212 |
|
|
$ |
128,716 |
|
|
$ |
701,374 |
|
|
$ |
438,705 |
|
|
Share-based compensation(1) |
|
12,274 |
|
|
|
37,190 |
|
|
|
43,872 |
|
|
|
84,531 |
|
|
Litigation costs (recovery), net(2) |
|
— |
|
|
|
(5,884 |
) |
|
|
827 |
|
|
|
36,807 |
|
|
Foreign currency (gains) losses, net(3) |
|
(1,576 |
) |
|
|
25,632 |
|
|
|
(36,059 |
) |
|
|
16,063 |
|
|
Amortization of acquired intangible assets(4) |
|
4,897 |
|
|
|
4,897 |
|
|
|
19,587 |
|
|
|
19,587 |
|
|
Transaction-related costs(5) |
|
1,509 |
|
|
|
— |
|
|
|
8,458 |
|
|
|
1,342 |
|
|
Product Procurement Adjustment(6) |
|
4,249 |
|
|
|
15,195 |
|
|
|
18,725 |
|
|
|
53,071 |
|
|
Product recall(7) |
|
576 |
|
|
|
— |
|
|
|
11,188 |
|
|
|
— |
|
|
Tax impact of adjusting items(8) |
|
(2,602 |
) |
|
|
(8,151 |
) |
|
|
(18,398 |
) |
|
|
(33,862 |
) |
|
Adjusted Net Income |
$ |
274,539 |
|
|
$ |
197,595 |
|
|
$ |
749,574 |
|
|
$ |
616,244 |
|
|
Net income per share, diluted |
$ |
1.80 |
|
|
$ |
0.91 |
|
|
$ |
4.94 |
|
|
$ |
3.11 |
|
|
Adjusted Net Income Per Share |
$ |
1.93 |
|
|
$ |
1.40 |
|
|
$ |
5.28 |
|
|
$ |
4.37 |
|
|
Diluted weighted-average number of shares used in
|
|
142,129,331 |
|
|
|
141,517,978 |
|
|
|
142,089,766 |
|
|
|
141,083,853 |
|
|
(1) |
|
Represents non-cash expense related to awards issued from the SharkNinja equity incentive plan. |
|
|
||
|
(2) |
Represents litigation costs incurred and related settlements for certain patent infringement claims, false advertising claims, and any related settlement costs and recoveries, which were recorded in general and administrative expenses. |
|
|
|
||
|
(3) |
Represents foreign currency transaction gains and losses recognized from the remeasurement of transactions that were not denominated in the local functional currency, including gains and losses related to foreign currency derivatives not designated as hedging instruments. |
|
|
|
||
|
(4) |
Represents amortization of acquired intangible assets that we do not consider normal recurring operating expenses, as the intangible assets relate to JS Global’s acquisition of our business. We exclude amortization charges for these acquisition-related intangible assets for purposes of calculated Adjusted Net Income, although revenue is generated, in part, by these intangible assets, to eliminate the impact of these non-cash charges that are significantly impacted by the timing and valuation of JS Global’s acquisition of our business, as well as the inherent subjective nature of purchase price allocations. Of the amortization of acquired intangible assets, |
|
|
|
||
|
(5) |
Represents certain costs incurred related to secondary offering transactions and transaction-related due diligence initiatives. |
|
|
|
||
|
(6) |
Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, SNHK, and no longer purchase inventory from a purchasing office wholly owned by |
|
|
|
||
|
(7) |
Adjusted for net income impact from a voluntary product recall that was recognized during the three months and year ended |
|
|
|
||
|
(8) |
Represents the income tax effects of the adjustments included in the reconciliation of net income to Adjusted Net Income, determined using the tax rate of 25.2% and 23.5% for the three months and year ended |
We define EBITDA as net income excluding: (i) interest expense, net, (ii) provision for income taxes and (iii) depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding (i) share-based compensation cost, (ii) certain litigation costs, (iii) foreign currency gains and losses, net, (iv) certain transaction-related costs, (v) certain items that we do not consider indicative of our ongoing operating performance following the separation, including cost of sales from our Product Procurement Adjustment, and (vi) the impact of a voluntary product recall. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales. We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are appropriate measures because they facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results according to GAAP, we believe provide a more complete understanding of the factors and trends affecting our business than GAAP measures alone.
The following table reconciles EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin to the most comparable GAAP measure, net income, for the periods presented:
|
|
Three Months Ended
|
|
Year Ended |
||||||||||||
|
($ in thousands, except %) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Net income |
$ |
255,212 |
|
|
$ |
128,716 |
|
|
$ |
701,374 |
|
|
$ |
438,705 |
|
|
Interest expense, net |
|
9,424 |
|
|
|
17,233 |
|
|
|
48,600 |
|
|
|
63,715 |
|
|
Provision for income taxes |
|
74,655 |
|
|
|
36,225 |
|
|
|
198,904 |
|
|
|
133,762 |
|
|
Depreciation and amortization |
|
38,941 |
|
|
|
36,239 |
|
|
|
139,631 |
|
|
|
123,109 |
|
|
EBITDA |
|
378,232 |
|
|
|
218,413 |
|
|
|
1,088,509 |
|
|
|
759,291 |
|
|
Share-based compensation (1) |
|
12,274 |
|
|
|
37,190 |
|
|
|
43,872 |
|
|
|
84,531 |
|
|
Litigation costs (recovery), net (2) |
|
— |
|
|
|
(5,884 |
) |
|
|
827 |
|
|
|
36,807 |
|
|
Foreign currency (gains) losses, net(3) |
|
(1,576 |
) |
|
|
25,632 |
|
|
|
(36,059 |
) |
|
|
16,063 |
|
|
Transaction-related costs(4) |
|
1,509 |
|
|
|
— |
|
|
|
8,458 |
|
|
|
1,342 |
|
|
Product Procurement Adjustment(5) |
|
4,249 |
|
|
|
15,195 |
|
|
|
18,725 |
|
|
|
53,071 |
|
|
Product recall(6) |
|
576 |
|
|
|
— |
|
|
|
11,188 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
395,264 |
|
|
$ |
290,546 |
|
|
$ |
1,135,520 |
|
|
$ |
951,105 |
|
|
Net sales |
$ |
2,101,434 |
|
|
$ |
1,787,187 |
|
|
$ |
6,399,188 |
|
|
$ |
5,528,639 |
|
|
Adjusted EBITDA Margin |
|
18.8 |
% |
|
|
16.3 |
% |
|
|
17.7 |
% |
|
|
17.2 |
% |
|
(1) |
|
Represents non-cash expense related to awards issued from the SharkNinja equity incentive plan. |
|
|
||
|
(2) |
Represents litigation costs incurred and related settlements for certain patent infringement claims, false advertising claims, and any related settlement costs and recoveries, which were recorded in general and administrative expenses. |
|
|
|
||
|
(3) |
Represents foreign currency transaction gains and losses recognized from the remeasurement of transactions that were not denominated in the local functional currency, including gains and losses related to foreign currency derivatives not designated as hedging instruments. |
|
|
|
||
|
(4) |
Represents certain costs incurred related to secondary offering transactions and transaction-related due diligence initiatives. |
|
|
|
||
|
(5) |
Represents cost of sales incurred related to the Product Procurement Adjustment. As a result of the separation, we purchase 100% of our inventory from one of our subsidiaries, SNHK, and no longer purchase inventory from a purchasing office wholly owned by |
|
|
|
||
|
(6) |
Adjusted for the EBITDA impact from a voluntary product recall that was recognized during the three months and year ended |
We define Adjusted Effective Tax Rate as our effective tax rate adjusted to remove the tax impact of (i) share-based compensation and (ii) other non-GAAP adjustments.
|
|
Three Months Ended
|
|
Year Ended |
||||||||
|
(in percentages) |
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
Effective tax rate |
22.6 |
% |
|
22.0 |
% |
|
23.4 |
% |
|
43.0 |
% |
|
Impact of share-based compensation(1) |
(0.8 |
) |
|
(3.7 |
) |
|
0.3 |
|
|
(2.1 |
) |
|
Tax impact of other non‑GAAP adjustments(2) |
0.1 |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
Adjusted Effective Tax Rate |
21.9 |
% |
|
18.3 |
% |
|
23.8 |
% |
|
41.0 |
% |
|
(1) |
|
Represents the income-tax effect of share-based compensation, including nondeductible amounts and discrete tax benefits. |
|
|
||
|
(2) |
Represents the aggregate income-tax effects of the other non-GAAP adjustments on the effective tax rate. |
We refer to growth rates in net sales on a constant currency basis so that results can be viewed without the impact of fluctuations in foreign currency exchange rates. These amounts are calculated by translating current year results at prior year average exchange rates. We believe elimination of the foreign currency translation impact provides useful information in understanding and evaluating trends in our operating results.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260211116162/en/
Investor Relations:
SVP, Investor Relations &
IR@sharkninja.com
ICR
SharkNinja@icrinc.com
Media Relations:
SVP, Chief Communications Officer
PR@sharkninja.com
Source: SharkNinja