Highlights from first quarter 2026:
Revenues were $19.7 million, up 3.2% from 2025
Generated operating income of $0.4 million versus $0.3 million in 2025
Net income of $0.2 million versus $11.6 million in 2025 (from sale of headquarters)
Gross margins of 61.0%, up from 56.3% in 2025
Operating expenses $11.6 million, up 11.2% from 2025
EBITDA from operations of 0.7 million
Ended quarter with $10.1 million of cash and cash equivalents
Tandy Leather Factory's first quarter sales were $19.7 million in 2026, up from $19.0 million in 2025. First quarter 2026 gross profit was $12.0 million, up from $10.7 million in 2025. As of March 31, 2026, the Company held $10.1 million of cash and cash equivalents, down from $16.1 million a year earlier; this decrease reflects the payment of a special dividend to stockholders in the first quarter of approximately $6.1 million, ongoing payment of income taxes related to the Company's sale of its headquarters facilities in 2025, and other expenses relating to the Company moving its headquarters in the third quarter of 2025. The Company held inventory of $33.7 million, up from $33.2 million as of December 31, 2025. The Company had basic and diluted net income in the quarter of $0.03 per share, versus $1.36 basic and $1.35 diluted net income per share in the prior year, when the Company completed its headquarters sale.
Johan Hedberg, Chief Executive Officer of the Company, said, "We are happy to have delivered another growth quarter with increases in sales and operating income from the year-ago quarter and with our ability to pay another substantial dividend ($0.75 per share) to our stockholders. We were also able to increase our gross margins, primarily driven by pricing changes. Although our operating expenses rose from a year ago, driven by compensation, investments in Operations and technology and occupancy costs (including increased rent for now renting our headquarters facility and Fort Worth flagship store), our increased sales and margins were able to offset that and deliver more profit from operations."
Investors are encouraged to send their questions to the Company's investor relations hotline at [email protected].
