Escalade (ESCA) disclosed its 2025 financial results on Wednesday, September 23, 2026. Net sales reached $240 million, up from $180.5 million in 2019 and $313 million in 2021. Net income was $13.7 million, delivering a net margin of 26.9% and diluted earnings per share of $0.99, a rise from $0.93 in 2024. Return on equity stood at 8% and return on assets slightly above 6%.
The company reduced total debt to $18.5 million at year‑end, down from $25.6 million a year earlier, and repurchased 218,000 shares in 2025. As of June 30, 2026, cash totaled $16.4 million against current liabilities of $45 million, with a $60 million revolving credit facility remaining untouched. Total debt fell further to $14.9 million, carried on a term loan at a 2.97% interest rate.
First‑half 2026 sales grew 3.3% year‑over‑year, while gross margin improved to 28.4% from 25.7% in the same period of 2025. Year‑to‑date earnings per share for the two quarters reached $1.00, compared with $0.32 a year earlier. The quarterly dividend was maintained at $0.1525 per share, yielding 3.13% annually for the 17th consecutive year.
Escalade’s strategy emphasizes margin expansion and debt reduction. Management aims for double‑digit pre‑tax EBITDA margins as gross margins approach and hold around 30% over the next two years. The firm expects to be debt‑free by the end of 2026 and prefers leverage not to exceed one times EBITDA, noting that the 2021 Brunswick acquisition briefly pushed leverage to about two times EBITDA.
Acquisition activity remains a core growth driver. Sixteen acquisitions have been completed over the past 14 years, with a target of one to two deals per year. Preferred purchase multiples range from six to eight times EBITDA, occasionally reaching ten times. The company focuses on strategic platforms and tuck‑in deals that broaden its footprint, customer base, or category presence, rather than replace organic growth.
Direct‑to‑consumer (DTC) channels operate 15‑16 Shopify‑based websites, currently contributing mid‑single‑digit revenue percentages. Escalade plans to lift DTC to the mid‑double‑digit range. Executive Patrick highlighted consumer engagement through partnerships, social media and DTC sites, while noting the overlap between sporting‑goods and pet markets at retailers such as Bass Pro Shops and Cabela’s.
Escalade’s product portfolio includes brands such as Bear Archery, Brunswick Billiards, STIGA, ASL Solutions, Gold Tip, Bee Stinger, All‑Cornhole, Cybershape, and a Rolling Stones‑themed table. Retail partners span Amazon, Dick’s Sporting Goods, Bass Pro Shops, Academy Sports + Outdoors, Dunham’s Sports, Scheels, Uline, Nebraska Furniture Mart, Rural King, Blain’s Farm & Fleet, Chewy, Petco and Bomgaars. Sponsorships feature the American Cornhole League with ESPN coverage, musician Chuck Leavell, and the Savannah Easton billiards player.
The stock closed at $19.10 on Wednesday, down 1.85% from the prior close of $19.46, within a 52‑week range of $11.41 to $23.07. Year‑to‑date return stands at 48%, and the past‑year return is 61%. The price‑earnings ratio is 11.4, with a PEG ratio of 0.14. InvestingPro’s financial health score is 3.02 out of 5.
