SN Q2 2026 - Preliminary Earnings Alert

Event: Quartr Q2 2026 event Retrieved: 2026-08-05T13:55:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available | financials=earnings release only | transcript=available (call held 2026-08-05 12:30Z)

Consensus scorecard

Reported results and guidance

Fiscal 2026 outlook, raised on every guided line:

• Scorecard recap: net sales of $1,765.5m beat consensus by 6.8% and Adjusted Net Income per diluted share of $1.26 beat the $1.11 estimate by 13.5%.
• CEO Mark Barrocas called the quarter "a standout performance," with 22.2% net sales growth described as the fastest pace since 2024 and International growth of 36.6%.
• Approximately $0.15 of the $0.45 increase in the adjusted EPS guide and approximately $30m of the $67–69m increase in the adjusted EBITDA guide are attributed to an expected net tariff refund benefit; the remainder is attributed to stronger underlying operating performance.
• In Q3 2026 SharkNinja submitted approximately $247.1m of refund claims through the U.S. Customs and Border Protection process and CBP accepted them; the company expects to recognize approximately $247.1m as a reduction of cost of sales, with a corresponding receivable, in Q3 2026.
• The underlying duties subject to refund are expected to split approximately evenly between amounts previously expensed in fiscal 2025 and in the first half of 2026. The 2025 portion benefits GAAP results and cash flow but is excluded from the Adjusted metrics in the outlook; the 2026 portion is included in them.
• The outlook assumes current tariff levels persist for the remainder of 2026: minimum rates of 10% for Indonesia, Malaysia and Cambodia, and 12.5% for China, Vietnam and Thailand.
• The company repurchased 815,233 shares for $99.7m at an average of $122.29 in the quarter (1,008,368 shares for $119.7m at $118.71 for the half) under the $750.0m program authorized 11 February 2026.
• Liquidity at 30 June 2026: $779.8m of cash, $489.8m of undrawn revolver capacity, and $718.9m of total debt excluding unamortized deferred financing costs.

Key bullish aspects

• Net sales beat consensus by 6.8% and Adjusted Net Income per diluted share beat by 13.5%, and the company raised the full-year net sales, adjusted EPS and adjusted EBITDA guides simultaneously.
• Net sales growth of 22.2% accelerated and was 21.6% on a constant-currency basis, so almost none of the growth was currency-assisted.
• Growth was broad across all four categories: Beauty and Home Environment +65.3%, Cooking and Beverage +36.5%, Food Preparation +13.3%, Cleaning +4.1%.
• International net sales rose 36.6% to $623.6m, more than twice the Domestic growth rate of 15.5%, and the US share of net sales fell to 61.5% from 63.7% — a genuine geographic diversification rather than a mix accident.
• Adjusted EBITDA rose 18.6% to $264.9m and Adjusted Operating Income rose 19.6% to $231.5m, both well ahead of the 6.4% GAAP operating income growth.
• Interest expense, net fell 42.7% to $7.9m in the quarter and 45.1% to $14.5m for the half, on lower debt.
• Six-month operating cash flow swung to a $275.5m inflow from a $(63.9)m outflow a year earlier, a $339m year-over-year swing.
• The tariff refund is a cash and GAAP event, not just an accounting one: CBP has accepted approximately $247.1m of claims, and the company states the 2025-related portion will benefit both GAAP results and cash flow.
• Even excluding the tariff benefit, the raise is substantial: roughly $0.30 of the $0.45 adjusted EPS increase and roughly $37–39m of the adjusted EBITDA increase are attributed to underlying operating performance.
• Accounts receivable fell 5.1% since year end while net sales grew 19.1% for the half, so the receivable-to-sales relationship improved.
• Shareholders' equity rose 6.2% to $2,843.4m and the company repurchased $119.7m of stock in the half while still adding cash.
• Gross margin compression of only 30 basis points (70 on the adjusted basis) is modest given that management names US tariffs, unfavorable currency and increased retailer activations as the drivers.

Key bearish aspects

• GAAP net income fell 7.0% to $129.8m and diluted EPS fell 6.1% to $0.92 despite 22.2% net sales growth; the entire adjusted improvement is below the GAAP line.
• Share-based compensation added back to operating income rose to $47.2m from $10.9m — a $36.3m increase that is by itself larger than the $40.4m increase in Adjusted Net Income, so the 29.3% adjusted growth rests heavily on a larger exclusion rather than on operating leverage alone.
• G&A rose 40.8% to $130.1m, nearly double the net sales growth rate, and rose to 7.4% of net sales from 6.4%; $30.3m of the $37.7m increase is personnel-related and $22.6m of that is share-based compensation.
• Total operating expenses grew 26.2%, faster than the 22.2% net sales growth, so GAAP operating margin fell 1.5 percentage points to 10.1%.
• Adjusted EBITDA margin fell 0.5 percentage points to 15.0% and Adjusted Operating Margin fell 0.3 points to 13.1%, so even on the company's preferred measures the quarter deleveraged.
• Other (expense) income, net swung to a $(7.8)m expense from $26.0m of income, a $33.8m year-over-year headwind, and to $(18.1)m from $39.2m for the half; the company states it cannot forecast these currency items with reasonable certainty.
• Inventories rose 14.1% since year end to $1,143.6m, faster than the 4.5% growth in total assets, and used $141.3m of cash in the half.
• Prepaid expenses and other current assets rose 56.3% since year end to $257.4m and consumed $92.8m of operating cash in the half.
• Cleaning Appliances — the largest category at $522.0m — grew only 4.1%, so the headline acceleration depends on the smaller Cooking/Beverage and Beauty categories.
• Six-month capital expenditures rose 38.2% to $83.1m and the full-year capex guide of $190–210m is a further step up.
• Sales and marketing rose 23.4% to $441.5m and reached 25.0% of net sales from 24.8%, with $26.2m of the increase in delivery and distribution costs attributed partly to higher fuel costs.
• The prior-year quarter benefited from a $5.3m Product Procurement Adjustment add-back that no longer exists (the JS Global sourcing fee ended 31 July 2025), so part of the adjusted margin comparison is against a differently constructed base.

Key uncertainties

• The $247.1m refund will be recognized in Q3 2026 as a reduction of cost of sales with a corresponding receivable; the release does not state when the cash is expected to be collected from CBP.
• The refund is split "approximately evenly" between fiscal 2025 and first-half 2026 duties but no exact split is given, so the portion flowing into the Adjusted metrics cannot be pinned down from this document.
• The company states its current intention is to reinvest the 2026-related refund back into the business (retail activation, media, technology and AI capabilities, and mitigation of ongoing tariff and input-cost pressures), so the guide increase is partly a spending decision that may not repeat.
• The outlook assumes the stated tariff rates persist for the remainder of 2026; the release gives no sensitivity for a change in those rates and does not state whether further refund claims are contemplated.
• SharkNinja does not provide a reconciliation of forward-looking Adjusted Net Income or Adjusted EBITDA to GAAP net income, citing the difficulty of forecasting realized and unrealized foreign currency movements, and states the difference may be material.
• Share-based compensation more than quadrupled year over year without explanation in the release beyond "personnel-related expenses"; whether this is a new grant cycle, a modification, or a run-rate step-up is not disclosed.
• The full-year adjusted EPS guide assumes approximately 142.5m diluted shares against 141.5m in the quarter just reported, which implies dilution despite an active $750m repurchase program with $630.3m still unused.
• The Q2 gross margin decline is attributed to five offsetting factors (tariffs, currency, retailer activations, cost optimization, category and channel mix, and the ended JS Global sourcing fee) with none of them quantified.
• Beauty and Home Environment grew 65.3% off a $172.9m base driven by "skincare and fan product portfolios"; the release does not separate the seasonal fan contribution from the skincare contribution.
• The $56.7m increase in operating lease liabilities and $50.7m increase in right-of-use assets since year end are not explained in the release.
• Deferred tax assets more than tripled to $33.9m since year end without commentary.
• A transcript for the 8:30 a.m. ET call exists but is covered separately; management's account of the refund timing, the reinvestment plan, and the share-based compensation step-up is not assessed at this stage.

Market context

• API Ninjas snapshot: SN $173.05 on NYSE, volume 633,533, quote timestamped 2026-08-05T13:47:59Z, retrieved 2026-08-05T13:48:30Z. The release was published before the U.S. open on 2026-08-05 and this quote sits in the pre-open window. It is a single quote of unstated session basis, not a measured reaction to the release.

Source limitations

• Every actual above comes from the Quartr Q2 2026 earnings release document. Quartr standardized financials for this event are not yet populated.
• API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter, so the exact ticker-and-event-date match path was used.
• Adjusted Gross Profit, Adjusted Net Income, Adjusted Net Income per diluted share and Adjusted EBITDA are quoted from the release's narrative highlights, which state them to one decimal place in millions; the statement-level figures are quoted to the thousand.
• Year-over-year percentage changes, margin percentages and expense ratios not printed in the release are calculated from the release's own columns.
• Balance-sheet and six-month cash-flow comparatives are to 31 December 2025 and to the six months ended 30 June 2025 respectively, not to the prior-year quarter.
• The condensed consolidated statements in this release are unaudited.
• The prior-year quarter's adjusted figures include a $5.279m Product Procurement Adjustment and $3.794m of product recall costs that do not recur in the current quarter, so the adjusted comparison spans two different add-back sets.
• The $247.1m refund claim was submitted and accepted in Q3 2026 and is not reflected in any Q2 2026 figure above.
• SharkNinja is incorporated in the Cayman Islands and reports in US dollars; the shares referenced are ordinary shares.

Source links

• Quartr Q2 2026 earnings release
• Quartr release highlights and category detail page
• Quartr release outlook and tariff refund page
• Quartr release balance sheet page
• Quartr release statements of income page
• Quartr release cash flow statement page
• Quartr release adjusted operating income reconciliation page
• Quartr Q2 2026 quarterly report