SharkNinja, Inc. 10-Q Summary: Q1 2026
Business Context and Reporting Period
This filing covers the quarterly period ended March 31, 2026. SharkNinja, Inc. is a global product design and technology company operating under the "Shark" and "Ninja" brands. The company reports a single segment aggregating Domestic (U.S. and Canada) and International operations. As of April 30, 2026, the company had 141,520,379 ordinary shares outstanding.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Sales | $1,412.8 million | $1,222.6 million |
| Gross Profit | $695.0 million | $603.2 million |
| Gross Margin | 49.2% | 49.3% |
| Operating Income | $164.5 million | $144.9 million |
| Net Income | $121.5 million | $117.8 million |
| Diluted EPS | $0.85 | $0.83 |
| Cash and Equivalents | $511.8 million | $224.7 million |
| Total Debt (Gross) | $729.0 million | $831.1 million (avg) |
| Free Cash Flow Proxy (Operating Cash Flow) | ($156.3 million) used | ($54.9 million) used |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 15.6% year-over-year, driven by strong performance in Cleaning Appliances (+17.0%), Cooking and Beverage Appliances (+19.8%), and Beauty and Home Environment Appliances (+40.8%). Food Preparation Appliances declined 3.3%.
- Geographic Mix: International sales grew 31.6%, outpacing Domestic growth of 8.4%.
- Expense Increases: Operating expenses rose 15.7% to $530.4 million. General and Administrative expenses increased 22.4%, largely due to a $13.2 million increase in share-based compensation.
- Cash Flow Dynamics: Net cash used in operating activities increased significantly to $156.3 million (from $54.9 million in Q1 2025). This was primarily driven by a $335.9 million decrease in accrued expenses and a $97.3 million decrease in accounts payable, partially offset by a $182.2 million decrease in accounts receivable.
- Share Repurchases: The company initiated a new $750 million share repurchase program in February 2026, repurchasing 193,135 shares for $20.0 million in Q1 2026.
Outlook, Risks, and Unusual Items
- Tariff Environment: The company faces a dynamic tariff landscape. Following a Supreme Court ruling in February 2026, a 10% global import surcharge under Section 122 of the Trade Act of 1974 was imposed, set to expire July 24, 2026. The company is monitoring potential refunds for previously paid IEEPA duties but has not recognized a receivable.
- Product Recall: A voluntary recall of the Ninja Foodi OP300 series pressure cooker (announced May 2025) resulted in $1.1 million of expenses in Q1 2026. Accrued expenses for remedies stood at $1.8 million as of March 31, 2026.
- Internal Controls: Management concluded that disclosure controls and procedures were not effective as of March 31, 2026, due to material weaknesses in internal control over financial reporting (specifically IT general controls) that existed as of December 31, 2025. A remediation plan is underway.
- Non-GAAP Measures: Adjusted Net Income was $154.8 million ($1.09 per share), excluding share-based compensation, foreign currency impacts, and recall costs.
Investor Verification Checklist
- Working Capital Management: Verify the sustainability of the significant cash outflow in operating activities ($156M) driven by the reduction in accrued expenses and accounts payable.
- Tariff Impact: Assess the financial impact of the new 10% Section 122 surcharge and the uncertainty surrounding potential refunds for prior IEEPA duties.
- Internal Control Remediation: Monitor the progress of the remediation plan for material weaknesses in IT general controls and financial reporting systems.
- Recall Costs: Track the final cost of the Ninja Foodi recall against the current $1.8 million accrual to ensure no material under-accrual.
- Share-Based Compensation: Note the sharp increase in share-based compensation ($30.3M vs $11.6M prior year) and its impact on future expense guidance.