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    SN
    Earnings call· Mar 2026(Q1 FY26)

    SharkNinja Q1 FY26 earnings call SN

    May 6, 2026 Source

    Executive summary

    SharkNinja Q1 FY26 — Strong Growth Across Categories, Geographies, and Channels, Driven by AI and Culture

    SharkNinja delivered a strong Q1 FY26, marked by nearly 16% net sales growth and over 25% adjusted EPS growth, fueled by broad-based strength across categories, geographies, and channels. The company is leveraging its unique "outrageously extraordinary" culture and a new "JailBreak SharkNinja" AI initiative to drive innovation and efficiency, positioning it for continued outperformance despite an unpredictable macro environment and tariff headwinds.

    Highlights

    5

    • Net sales increased nearly 16% year-over-year to $1.41 billion, driven by contributions from all three growth pillars.

    • International growth accelerated to almost 32% with broad-based strength across geographies.

    • Adjusted EBITDA increased roughly 18% to $235 million, with higher adjusted EBITDA margins compared to the prior period.

    • Adjusted EPS increased more than 25% year-over-year to $1.09 per diluted share, marking the fourth consecutive quarter of growth in excess of 23%.

    • Launched the company-wide "JailBreak SharkNinja" AI initiative with a $1 million prize fund, fostering broad-based experimentation and innovation.

    Concerns

    5

    • The U.S. market declined in the low single-digit to mid-single-digit range across all four major categories in Q1, excluding SharkNinja's performance.

    • Adjusted gross margin decreased approximately 100 basis points year-over-year to 49.2% due to sizable tariff headwinds.

    • Net sales in the food preparation category decreased 3.3% year-over-year, driven largely by lapping a very large sell-in period for frozen treats in Q1 '25.

    • GAAP general and administrative expenses increased 22.4% year-over-year to $116 million, primarily from tax related to share-based compensation.

    • Potential impact from the Middle East conflict on resin and other commodity prices, though viewed as manageable and incorporated into guidance.

    Guidance & targets

    8
    CategoryTargetConfidence
    Net sales growth
    11.5% to 12.5% increase
    high materiality
    High
    Adjusted net income per diluted share
    $6.00 to $6.10
    high materiality
    High
    Adjusted EBITDA
    $1.29 billion to $1.30 billion
    high materiality
    High
    Adjusted EBITDA growth
    13.5% to 14.5% year-over-year
    high materiality
    High
    Net interest expense
    flat
    medium materiality
    High
    GAAP effective tax rate
    22% to 23%
    medium materiality
    High
    Capital expenditures
    $190 million and $210 million
    medium materiality
    High
    International growth rate
    low 20s range
    medium materiality
    Medium

    Segment performance

    7
    SegmentRevenueYoYQoQMargin
    Domestic
    Point-of-sale growth was even higher in the double digits. Canada business was down year-on-year due to structural changes, but expected to change in the back half of the year.
    		$916 million8.4%——
    International
    Broad-based strength across geographies, including EMEA and Latin America. Strong performance despite business model transitions in certain EMEA countries like Italy and Spain.
    		$497 million31.6%——
    UK
    Accelerated growth after a strong second half of 2025, driven by category and channel diversification.
    		$220 million18%——
    Cleaning
    Uprights, the largest subcategory, and carpet extraction business performed well, highlighted by Shark Stainforce.
    		$517 million17%——
    Cooking and Beverage
    Strong consumer demand for Luxe Cafe espresso machine and Ninja Woodfire across multiple markets.
    		$415 million19.8%——
    Food Preparation
    Strong growth in blending franchise was offset by lapping a particularly large quarter of selling for frozen treats business in Q1 '25.
    		$288 million-3.3%——
    Beauty and Home Environment
    Shark beauty technology portfolio stood out, particularly the skin care business led by Shark SmoothStyle.
    		$194 million40.8%——

    Operational metrics

    30
    Net sales
    $1.41 billion15.6% year-over-year
    Q1 FY26

    Driven by contributions from all three growth pillars.

    Adjusted EBITDA
    $235 million17.5% year-over-year
    Q1 FY26

    Achieved goal of outperforming net sales growth.

    Adjusted EBITDA margin
    16.7%up approximately 30 basis points
    Q1 FY26

    Compared to the prior year period.

    Adjusted EPS
    $1.0925% year-over-year
    Q1 FY26

    Fourth consecutive quarter of growth in excess of 23%.

    Adjusted gross margin
    49.2%decreased approximately 100 basis points year-over-year
    Q1 FY26

    Impacted by tariff headwinds, offset by cost optimization, pricing, and mix.

    GAAP gross margin
    49.3%decreased roughly 10 basis points
    Q1 FY26

    Compared to the prior year period. Difference between adjusted and GAAP gross profit remains negligible.

    Adjusted operating expenses
    $495 million35% of net sales
    Q1 FY26

    Fourth consecutive quarter of leverage as a percentage of net sales.

    Research and development expenses (GAAP)
    $99 millionincreased 12.9% year-over-year
    Q1 FY26

    Robust investment in R&D remains a critical differentiator.

    Sales and marketing expenses (GAAP)
    $315 millionincreased 14.4% year-over-year
    Q1 FY26

    Continued deployment of resources to expand social media prowess.

    General and administrative expenses (GAAP)
    $116 millionincreased 22.4% year-over-year
    Q1 FY26

    Bulk of increase came from tax related to share-based compensation.

    Adjusted general and administrative expenses
    11%growth
    Q1 FY26

    On an adjusted basis.

    GAAP effective tax rate
    17.7%
    Q1 FY26

    For the first quarter.

    Non-GAAP effective tax rate
    20.7%
    Q1 FY26

    For the first quarter.

    Adjusted net income
    $155 million
    Q1 FY26

    In the period.

    Adjusted diluted EPS (prior year)
    $0.87
    Q1 FY25

    Compared to current period $1.09.

    Cash and cash equivalents
    $512 millionup more than 100% year-over-year
    End of Q1 FY26

    Balance sheet item.

    Total debt outstanding
    $729 million
    End of Q1 FY26

    Balance sheet item.

    Revolving credit facility capacity
    $489 million
    End of Q1 FY26

    Available capacity.

    Total inventories
    $1.03 billionup 6.3% year-over-year
    Exiting Q1 FY26

    Positioned well to support growth ambitions, lapping large tariff prebuild levels from late 2024 and early 2025.

    Share repurchase authorization
    $750 million
    Inaugural authorization

    Approved by Board of Directors. Repurchases through end of March.

    Tariff rates
    10%shifted from 20%
    Current

    Assumed to persist for the remainder of the year. Guidance does not incorporate any potential tariff refund benefit.

    Supply chain tariff parity
    66%
    Current

    Percentage of business with tariff parity in and outside China, allowing production flexibility.

    New subcategories entered
    1
    Q1 FY26

    On track to enter another new subcategory in 2026, in line with goal of adding 2 per year.

    SharkChillPill social media impressions
    tens of millions
    First month

    Showcases passionate and growing level of engagement.

    Cryoinspired direct contact cooling plate technology
    16
    Instant

    Technology can lower skin temperature.

    JailBreak SharkNinja employee submissions
    Over 150
    Ongoing

    Growing exponentially, signal of ingenuity and ambition.

    JailBreak SharkNinja prize fund
    $1 million
    Committed

    Committed to back up the program.

    JailBreak SharkNinja LinkedIn impressions
    Over 500,000
    Recent

    For a post sharing the intern's AI solution story.

    Organic net sales growth streak
    12double-digit growth
    Consecutive

    Since NYSE listing in July 2023.

    Adjusted net income per share growth streak
    4in excess of 23%
    Consecutive

    Demonstrates strong profitability and earnings growth.

    Industry KPIs

    1
    MetricValueDetails
    Tariff trade impact by segmentdecreased approximately 100 basis pointsbps

    Product announcements

    5
    ProductTypeDetails
    SharkBlastBosslaunch
    SharkChillPilllaunch
    Shark FlexStyleupdate
    Ninja Luxe Cafe Color Collectionlaunch
    Shark Stainforce cordless spot and stain cleanerupdate

    Deals & partnerships

    3
    Justin Bieber and SkylarkCollaboration for a limited edition SharkChillPill and exclusive chilled zone at [indiscernible].

    Justin Bieber headlined [indiscernible] with an exclusive chilled zone featuring a SharkChillPill. Partnered with Bieber and his lifestyle brands, Skylark, on a limited edition SharkChillPill in a custom heat color wage.

    David BeckhamCollaboration for a limited-edition Luxe Cafe Color Collection.

    David Beckham, global ambassador for SharkNinja, collaborated on a one-of-a-kind version of Luxe Cafe featuring a matt black stainless steel body, black chestnut wood grain, and gold accents.

    Mercado LibreStrategic partnership to reach Latin American consumers.

    SharkNinja is excited about its partnership with Mercado Libre as a great pathway to reach Latin American consumers, especially following strong momentum in Mexico.

    Risks & headwinds

    5
    Unpredictable macro environmentOngoing

    U.S. market declined in the low single-digit to mid-single-digit range across all four major categories in Q1.

    Mitigation: Operational discipline, diversification across categories, geographies, and channels; built company to handle uncertainty.

    Tariff headwindsFull year 2026

    Adjusted gross margin decreased approximately 100 basis points year-over-year in Q1.

    Mitigation: Cost optimization efforts, favorable trends within pricing and mix, supply chain diversification (66% of business has tariff parity in/outside China).

    Raw material price volatilityUnknown duration

    Potential impact on resin and other commodity prices due to Middle East conflict.

    Mitigation: Actively assessing the situation, taking action on cost mitigation and supply procurement; potential impact viewed as manageable and incorporated into guidance.

    Business model transitions in EMEARectified by end of Q2 FY26

    Took a bit of a hit in Q1 from transitioning Italy and Spain from a distributor market to a direct market.

    Mitigation: Successful transitions, increased ad spending in H2, deeper relationships with retail partners.

    Lapping prior-year strong sell-in periodsQ1 FY26

    Food preparation category net sales decreased 3.3% year-over-year due to lapping a very large sell-in period for frozen treats in Q1 '25.

    Mitigation: Power of category diversification, more innovation coming in frozen treats in the second half of the year.

    What to watch in Q2 FY26

    5

    International Business Model Transition Completion

    End of Q2 FY26
    CurrentItaly and Spain transitioning, caused a "hit" in Q1.
    TargetRectified and completed.

    Why it matters

    Completion of transitions is expected to remove headwinds and enable stronger international growth.

    There's also some noise within the international business because we're in the midst right now of transitioning Italy and Spain from a distributor market to a direct market. So we took a bit of a hit in that in Q1. That will get rectified as we close out Q2.

    Q&A highlights

    5

    How do U.S. industry trends look for the rest of the year, and how bullish is SharkNinja on international growth, especially with new DTC platforms and TikTok Shop expansion?

    Mark noted the U.S. market declined low to mid-single digits in Q1, but SharkNinja's domestic POS was up double digits. He expressed strong bullishness on international, citing new DTC platform launches in the UK, Germany, France, Spain, and Italy, and TikTok Shop expansion to 7 countries by the end of Q2. He also highlighted successful transitions to direct models in EMEA and Mexico, expecting a strong holiday season.

    “when we come out of Q2, Randy, I mean, we're now going to have the entire world on our new sales force platform. We're going to have TikTok Shop operating in 7 countries. It sets us up really well on the D2C business and the TikTok Shop business as we get into the second half of the year.”

    asked by Randal Konik · answered by Mark Adam Barrocas

    2 min read5 chapters

    Detailed Narrative

    01

    AI Integration and "JailBreak SharkNinja" Initiative

    SharkNinja has rapidly embraced AI across its business, launching a company-wide initiative called "JailBreak SharkNinja." This program incentivizes broad-based experimentation by proliferating AI tools and trainings, aiming to drive real business impact in product innovation, marketing, operations, and strategic thinking. The initiative has seen over 150 employee submissions and a $1 million prize fund, culminating in a global HackWeek to tackle complex problems and build long-term AI competency.

    02

    Cultural Superpower and Market Outperformance

    Mark Barrocas highlighted SharkNinja's "outrageously extraordinary" (OE) culture as its most durable competitive advantage, fostering rapid iteration and entrepreneurial fearlessness. This cultural edge is credited for the company's 12th consecutive quarter of double-digit organic net sales growth, significantly outperforming the U.S. market which declined in the low to mid-single-digit range across major categories in Q1 FY26.

    03

    New Category Expansion and Product Innovation

    The company continues to expand into new subcategories, launching the SharkBlastBoss, an indoor/outdoor air blasting system, bringing its total to 39 subcategories. Another notable launch is the SharkChillPill, a personal cooling system utilizing cryoinspired direct contact cooling technology, which generated tens of millions of social media impressions and partnered with Justin Bieber, showcasing the brand's cultural relevance and premium pricing strategy.

    04

    International Expansion and Omnichannel Strategy

    International business saw robust results, with the U.K. accelerating to over 18% growth and Latin America experiencing exceptional momentum, particularly Mexico after transitioning to a direct business model. SharkNinja is enhancing its international omnichannel strategy by rolling out new DTC sites in major markets (U.K., France, Germany, Spain, Italy) and expanding its TikTok Shop presence to 7 countries by the end of Q2 FY26.

    05

    Supply Chain Flexibility and Tariff Management

    Management emphasized the benefits of its diversified supply chain, noting that 66% of its business now has tariff parity in and outside China. This flexibility allows the company to easily move production, mitigating tariff headwinds🌐 and managing raw material price volatility. Despite a 100 bps decrease in adjusted gross margin due to tariffs, cost optimization and favorable pricing/mix helped manage the impact.

    AI-generated summary of the company’s earnings call. Not investment advice.