10-Q · November 4, 2025
Tile Shop reported third‑quarter net sales of $83,064,000 and a net loss of $1,614,000 (diluted EPS $(0.04)). Gross profit declined to $52,279,000 (62.9% gross margin) and the company recorded an operating loss of…
Earnings analysis · 10-K
TTSH earnings analysis
Filed February 26, 2026 · Our reading of the company's report
The latest report
Tile Shop reported net sales of $336.8 million and a loss from operations of $5.8 million for the year ended December 31, 2025, with a store base of 140 stores and an assortment of over 6,000 products. Management…
Read full summary
Tile Shop reported net sales of $336.8 million and a loss from operations of $5.8 million for the year ended December 31, 2025, with a store base of 140 stores and an assortment of over 6,000 products. Management completed a 1-for-3,000 reverse split followed by a 3,000-for-1 forward split, paid approximately $32.2 million to cashed-out holders, and will cease SEC reporting following this Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Operating margin
- -1.72%
- Segment
- Man-made tiles 56% of net sales (2025)
- Segment
- Natural stone tiles 19% of net sales (2025)
- Segment
- Setting and maintenance materials 15% of net sales (2025)
- Segment
- Accessories 8% of net sales (2025)
- Segment
- Delivery service 2% of net sales (2025)
What stood out
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Large proprietary assortment
Company offers "over 6,000" products (10-K Overview: "Our assortment includes over 6,000 products").
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Nationwide store footprint
Operates 140 stores in 31 states and the District of Columbia with an average size of approximately 20,000 square feet (10-K: "As of December 31, 2025, we operated 140 stores in 31 states and the District of Columbia, with an average size of approximately 20,000 square feet").
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2025 revenue base
Net sales were $336.8 million for the year ended December 31, 2025 (10-K: "Our net sales ... were $336.8 million ... for the year ended December 31, 2025").
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Shift to man-made tiles
Man-made tiles represented 56% of net sales in 2025, up from 54% in 2024 (10-K: "Man-made tiles 56% 54%" for 2025 and 2024).
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Supplier diversification (but notable concentration)
Top ten tile suppliers accounted for 43.3% of purchases in 2025 and the largest supplier accounted for approximately 12.7% (10-K: "Our top ten tile suppliers accounted for 43.3% of our purchases in 2025. Our largest supplier accounted for approximately 12.7% of our total purchases in 2025").
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Inventory modestly higher
Inventory increased by $3.1 million from $86.3 million to $89.4 million as of December 31, 2024 and December 31, 2025, respectively, partly due to higher tariffs (10-K: "Our inventory balance increased by $3.1 million from $86.3 million to $89.4 million ... due in part to an increase in tariffs").
What to watch
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Delisting and suspension of SEC reporting
Company effected a 1-for-3,000 reverse split and 3,000-for-1 forward split and "paid an aggregate of approximately $32.2 million" to cashed-out holders; as a result the Company "is no longer subject to the reporting requirements under the Exchange Act" and "will cease to file annual, quarterly, current, and other reports and documents with the SEC" (10-K: reverse/forward split description and post-Transaction language).
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Material cash outflow related to stock-split transaction
Following the Reverse Stock Split the Company "paid an aggregate of approximately $32.2 million" to stockholders owning fewer than 3,000 shares and incurred a fixed cash payment of $6.60 per whole share (10-K: "paid an aggregate of approximately $32.2 million" and "converted ... into the right to receive $6.60 in cash, without interest").
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Declining top-line and operating profit trend
Net sales declined from $377.1 million in 2023 to $347.1 million in 2024 and $336.8 million in 2025, while income from operations fell from $16.2 million (2023) to $3.5 million (2024) to a loss of $5.8 million (2025) (10-K: "As of December 31, 2025 ... net sales were $336.8 million ... As of December 31, 2024 and 2023, net sales were $347.1 million and $377.1 million ... income from operations were $3.5 million and $16.2 million").
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Supplier concentration and sourcing exposure
Top ten tile suppliers accounted for 43.3% of purchases in 2025 and the largest supplier was ~12.7% of purchases, creating concentration risk (10-K: "Our top ten tile suppliers accounted for 43.3% of our purchases in 2025. Our largest supplier accounted for approximately 12.7% ...").
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Rising product costs and tariff exposure
Inventory rose $3.1 million to $89.4 million and management attributes the increase in part to "an increase in tariffs paid on tile products acquired outside of the United States" (10-K: "Our inventory balance increased by $3.1 million ... due in part to an increase in tariffs paid on tile products acquired outside of the United States").
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Loss of public-company safeguards and investor visibility
Reverse Stock Split reduced record holders "to a number below 300 (i.e., the level at or above which the Company was required to file reports with the SEC)", after which the Company "is no longer subject to the reporting requirements ... and will cease to file ... with the SEC" (10-K: language on record holders and cessation of reporting).
Management's outlook
The Form 10-K does not provide numeric forward revenue or EPS guidance; management's 2026 strategic priorities are described but quantitative outlook is not given (10-K: "Key elements of our 2026 strategy include..." and no numeric guidance included). Additionally, after this filing the Company will cease to file periodic reports with the SEC.
Earlier filings 4
10-Q · August 7, 2025
Tile Shop reported Q2 net sales of $88,260 (three months ended June 30, 2025), down from $91,384 in Q2 2024, with gross profit of $56,841 (64.4% margin) and operating income compressed to $440. Net income was $392 and…
10-Q · May 8, 2025
Tile Shop reported quarterly revenue of $88,009,000, down $3,719,000 (4.1%) from $91,728,000 in Q1 2024. Gross margin was essentially stable at 66.0% (vs 65.8% prior year) but operating income collapsed to $183,000 from…
10-K · February 27, 2025
Tile Shop reported declining net sales of $347.1 million in 2024 with income from operations of $3.5 million, down from $377.1 million and $16.2 million in 2023. The company emphasizes its differentiated assortment…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.