SN earnings analysis
What we found in SN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
SharkNinja delivered a strong Q2 top-line result, with revenue up 22.2% YoY to $1.765B and all four product categories expanding; Beauty and Home Environment and international sales were the largest growth contributors. Profitability was mixed: gross margin fell 30 bps to 48.7%, operating margin fell from 11.6% to 10.1%, and GAAP EPS declined from $0.98 to $0.92 YoY, although EPS improved from $0.85 in Q1 and adjusted EPS reached $1.26. Six-month operating cash flow improved to $275.5M and implied free cash flow was $192.5M, while tariffs, a contingent $247.1M refund claim, and unresolved internal-control material weaknesses remain key watch items.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated to 22.2%
- Q2 net sales rose $320.6M, or 22.2% YoY, to $1.765B. This also accelerated from Q1 2026 sales of $1.413B, implying approximately 24.9% sequential growth.
- Broad category growth led by Beauty
- All four product categories grew: Beauty and Home Environment rose $112.9M (65.3%) to $285.8M, Cooking and Beverage increased $133.3M (36.5%) to $499.0M, Food Preparation gained $53.8M (13.3%), and Cleaning rose $20.6M (4.1%).
- International materially outgrew Domestic
- International sales increased $167.2M, or 36.6%, versus Domestic growth of $153.4M, or 15.5%. Management attributes international growth to expansion of core categories into new markets and continued strength in key countries.
- Sequential EPS and adjusted profits improved
- GAAP diluted EPS was $0.92, up from $0.85 in Q1 2026, while adjusted diluted EPS increased to $1.26 from $0.97 a year ago. Adjusted operating income grew $37.9M to $231.5M.
- Cash conversion turned strongly positive
- Six-month operating cash flow turned to an inflow of $275.5M from an outflow of $63.9M a year earlier. Less $83.0M of property-and-equipment purchases, implied free cash flow was $192.5M, or 6.1% of six-month sales.
- Liquidity supports investment and buybacks
- Liquidity was substantial at June 30: $779.8M of cash and cash equivalents plus $489.8M of unused revolver capacity. The company also repurchased $119.7M of shares in the first six months, leaving $630.3M authorized.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Tariffs and costs compressed margins
- Gross margin declined 30 bps YoY to 48.7% and operating margin fell 150 bps to 10.1%, as tariff cost pressures, unfavorable foreign exchange, and retailer activations more than offset mitigations. Q2 GAAP net income also fell $9.8M, or 7.0%, to $129.8M.
- FX swing reduced GAAP earnings
- GAAP diluted EPS declined 6.1% YoY to $0.92 from $0.98, despite 22.2% sales growth. Other income swung by $33.8M to a $7.8M expense, primarily on unrealized foreign-currency losses associated with U.S.-dollar intercompany balances.
- Holiday inventory build raises execution risk
- Working-capital consumption remained significant: inventory increased $141.3M and prepaid expenses and other assets increased $92.8M in the first six months, partly offset by a $88.5M increase in accounts payable and a $73.7M reduction in receivables. Management says inventory purchases were made ahead of the Q3/Q4 holiday selling season.
- Tariff-refund benefit remains contingent
- The company submitted approximately $247.1M of IEEPA-duty refund claims in July 2026 and expects to recognize the benefit in Q3, but the refund order remains subject to a government appeal. No related receivable was recorded as of June 30, 2026.
- Material weaknesses remain unresolved
- Disclosure controls and procedures were ineffective as of June 30, 2026 because material weaknesses in internal control over financial reporting continued from December 31, 2025. Management expects remediation efforts to continue throughout 2026 but cannot assure success or completion timing.
- No formal risk-factor updates; tariff uncertainty persists
- No material change to the risk factors in the 2025 Form 10-K was reported. Nonetheless, management cites uncertainty around successor tariff actions after the 10% Section 122 global import surcharge expired on July 24, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.92
- Gross margin
- 48.7%
- Operating margin
- 10.1%
- Segment
- Cleaning Appliances: $522.0M, +4.1% YoY
- Segment
- Cooking and Beverage Appliances: $499.0M, +36.5% YoY
- Segment
- Food Preparation Appliances: $458.6M, +13.3% YoY
- Segment
- Beauty and Home Environment Appliances: $285.8M, +65.3% YoY
- Segment
- Domestic sales: +15.5% YoY; International sales: +36.6% YoY
What they said about what is next.
The 10-Q does not provide a quantitative full-year sales, EPS, or EBITDA outlook; management states it expects to recognize the benefit of approximately $247.1M of accepted IEEPA-duty refund claims in Q3 2026.
The filing reads better than the one before it.
What came before.
- 10-Q · May 6, 2026
- SharkNinja, Inc. reported a strong first quarter for 2026, achieving revenues of $1.41 billion, which exceeded analyst expectations, while EPS came in at $0.85, slightly below the expected $1.00. The company raised its…
- 10-K · March 2, 2026
- SharkNinja, Inc. reports a strong performance for the year ended December 31, 2025, with net sales reaching $6.4 billion, up 15.7% from the previous year. The company demonstrated improved margins with an operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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