Escalade Reports Fourth Quarter and Full Year 2025 Results

EVANSVILLE, Ind., Feb. 27, 2026 /PRNewswire/ -- Escalade, Inc. (Nasdaq: ESCA, or the "Company"), a leading manufacturer and distributor of sporting goods and indoor/outdoor recreational equipment, today announced results for the fourth quarter and full year 2025.

FOURTH QUARTER 2025 RESULTS
(As compared to the fourth quarter 2024)

• Net sales decreased 2.2% to $62.6 million
• Gross margin improved 280 basis points, to 27.7%
• Net income of $3.7 million, or $0.27 per diluted share vs. $2.7 million, or $0.19 per diluted share for 2024
• EBITDA totaled $6.5 million, an increase of 9.3%
• Cash provided by operations of $14.9 million vs $12.3 million in 2024
• Total debt decreased 27.9% and net leverage was 0.3x
• Increased quarterly dividend to $0.1525 per share

FULL YEAR 2025 RESULTS
(As compared to full year 2024)

• Net sales decreased 4.5% to $240.2 million
• Gross margin improved 219 basis points, to 26.9%
• Net income of $13.7 million, or $0.99 per diluted share vs. $13.0 million, or $0.93 per diluted share for 2024
• EBITDA totaled $23.9 million, a decrease of 8.4%
• Cash provided by operations of $31.0 million vs. $36.0 million in 2024

For the fourth quarter ended December 31, 2025, Escalade reported net income of $3.7 million, or $0.27 per diluted share, versus net income of $2.7 million, or $0.19 per diluted share for the fourth quarter in 2024. Total net sales declined 2.2% on a year-over-year basis in the fourth quarter, primarily due to uneven consumer demand across the majority of the Company's product categories, partially offset by improved demand in the archery, billiards, and games categories.

Escalade reported fourth quarter gross margin of 27.7%, an increase of 280 basis points versus the prior-year quarter, driven by improved operational efficiencies from lower fixed costs and decreased inventory storage and handling costs.

Earnings before interest, taxes, depreciation, and amortization ("EBITDA") increased 9.3% to $6.5 million in the fourth quarter 2025, versus $5.9 million in the prior-year period. The increase in EBITDA compared to the fourth quarter of 2024 primarily reflects improved gross margins and the impact of the Gold Tip acquisition, partly offset by $0.5 million in non-recurring executive transition expenses.

During the fourth quarter of 2025, the Company generated $14.9 million of cash flow from operations, compared to $12.3 million in the prior-year period. Operating cash flow during the fourth quarter reflected seasonal reductions in inventory associated with the holiday selling season, combined with the Company's efforts to reduce its inventory on hand.

Total debt at the end of the quarter was $18.5 million, down 27.9% from $25.6 million at the end of the fourth quarter of last year.

As of December 31, 2025, the Company had total cash and cash equivalents of $11.9 million, together with $52.9 million of availability on its senior secured revolving credit facility maturing in 2027. At the end of the fourth quarter 2025, net debt (total debt less cash) was 0.3x trailing twelve-month EBITDA, down from 0.8x at the end of the fourth quarter of 2024.

Escalade announced a quarterly dividend of $0.1525 per share to be paid to all shareholders of record on April 6, 2026 and payable April 13, 2026.

MANAGEMENT COMMENTARY

"We concluded 2025 with strong margin performance, driven by disciplined operational execution across the business," said Patrick Griffin, Interim President and CEO of Escalade. "Fourth‑quarter margins reflect the cost structure improvements implemented over the last year. Importantly, demand across our higher‑value, premium brands remains resilient, and our diversified product portfolio continues to position us well to navigate an uncertain consumer environment."

Griffin continued, "As we enter 2026, we are shifting our focus to drive growth while maintaining the operational discipline that delivered our strong performance in 2025. During the fourth quarter we completed the acquisition of AllCornhole, further expanding our presence in a premium, fast‑growing category, and we acquired a 110,000 square foot facility to support growth in our safety and fitness categories. In addition, we completed the integration of the Gold Tip Archery acquisition, which closed in the third quarter and was immediately accretive during the fourth quarter."

"Our shift to focus on growth is supported by a strong balance sheet and a continued focus on capital efficiency," Griffin added. "In the fourth quarter, we improved our cash flow 21.2% and reduced our total debt by 27.9%, resulting in net leverage of 0.3x. Reflecting the confidence we have in the long‑term cash‑generation profile of the business, our Board has approved an increase in our quarterly dividend to $0.1525 per share. Looking ahead, we remain focused on driving working capital efficiencies and we intend to deploy our strong free cash flow toward organic growth investments, strategic M&A, continued debt reduction, and a disciplined return of capital to shareholders."

CONFERENCE CALL

A conference call will be held Friday, February 27, 2026, at 11:00 a.m. ET to review the Company's financial results, discuss recent events and conduct a question-and-answer session.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of Escalade's website at www.escaladeinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference:

Domestic Live:

1-833-890-3250

International Live:

1-412-206-6441

To listen to a replay of the teleconference, which subsequently will be available through March 13, 2026:

Domestic Replay:

1-844-512-2921

International Replay:

1-412-317-6671

Conference ID:

10206528

USE OF NON-GAAP FINANCIAL MEASURES

In addition to disclosing financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"), this release contains the non-GAAP financial measure known as "EBITDA." A reconciliation of this non-GAAP financial measure is contained at the end of this press release. EBITDA is a non-GAAP financial measure that Escalade uses to facilitate comparisons of operating performance across periods. Escalade believes the disclosure of EBITDA provides useful information to investors regarding its financial condition and results of operations. Non-GAAP measures should be viewed as a supplement to and not a substitute for the Company's U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated. Non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or in lieu of an analysis of the Company's results as reported under U.S. GAAP and should be evaluated only on a supplementary basis.

ABOUT ESCALADE

Founded in 1922, and headquartered in Evansville, Indiana, Escalade designs, manufactures, and sells sporting goods, fitness, and indoor/outdoor recreation equipment. Our mission is to connect family and friends, create lasting memories, and play life to the fullest. Leaders in our respective categories, Escalade's distinct and acclaimed brands include Goalrilla™ in-ground basketball hoops; STIGA® tennis tables and accessories; Bear® Archery and archery equipment; Brunswick Billiards® tables and accessories; Accudart® darting; ONIX® pickleball; Lifeline® fitness products; and RAVE Sports® water recreation products. Escalade's products are available online and through leading retailers nationwide. For more information about Escalade's diverse and prominent brand portfolio, history, financials, and governance, please visit www.escaladeinc.com.

INVESTOR RELATIONS CONTACT

Wesley Smith
Vice President, Financial Reporting & Investor Relations
812-467-1334