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Escalade, Inc. Reports Third Quarter 2025 Results

On October 30, 2025, Escalade, Inc. (NASDAQ: ESCA) presented its financial results for the third quarter of 2025. The company, a prominent manufacturer and distributor of sporting goods and recreational equipment, noted a year-over-year increase in net sales.

Financial Highlights

In Q3 2025, Escalade achieved net sales of $67.8 million, a slight increase from $67.7 million during the same period last year. The company experienced a gross margin of 28.1%, a notable gain from the previous year’s 24.8%. Operating income stood at $7.3 million, compared to $8.0 million in Q3 2024, with net income reported at $5.6 million (or $0.40 per diluted share), which was on par with the previous year's figures. The company's EBITDA was reported at $8.6 million, declining from $9.9 million last year, primarily due to a non-recurring gain recorded in the previous quarter.

The report also highlighted a significant reduction in the company’s total debt, which shrank by 31.4% from $29.5 million at the end of Q3 2024 to $20.2 million this year.

Category Performance

The growth in net sales was largely attributed to robust sales in the archery, table tennis, billiards, and safety equipment sectors. However, demand in the basketball category faced decline alongside the company’s strategic choice to exit certain product segments.

Furthermore, the company's improved gross margin was significantly influenced by reduced fixed costs and lower inventory-related expenses, even as it faced challenges from fluctuating tariffs.

Management Insights

Patrick J. Griffin, Interim President and CEO of Escalade, expressed optimism regarding the company’s performance amidst a turbulent macroeconomic landscape. In his statement, he emphasized the elevated demand across core categories like safety and archery, while also acknowledging ongoing geopolitical uncertainties that influence consumer spending. Griffin noted that the company expanded its market share in key segments because of its strong domestic manufacturing capabilities and reliable product supply.

In anticipation of the holiday shopping season, Escalade has crafted a strategic promotional plan to ensure consumers recognize the quality of its brands while also implementing targeted promotions to maximize sales.

Future Outlook

As the company forges ahead, it remains focused on fostering disciplined capital allocation and nurturing profitable growth. The recent acquisition of Gold Tip, a leading name in the archery sector, emphasizes Escalade's commitment to expanding its product portfolio and sustaining its competitive edge.

The next conference call to discuss these results will take place on October 30, 2025, at 11:00 a.m. ET, where analysts and stakeholders can engage in a question-and-answer session regarding the company's financial health and future initiatives. More details are available in the Investor Relations section of the Escalade website.

Escalade, established in 1922 and based in Evansville, Indiana, continues its mission to connect families and friends through innovative sporting and recreational products. With a diverse brand portfolio that includes Goalrilla, STIGA, and Brunswick Billiards, the company is well poised to address market demands and consumer preferences heading into a new fiscal season.

In summary, Escalade's performance in Q3 2025 reflects a combination of growth, strategic management, and a strong commitment to quality and service in a competitive industry landscape.