# ESCALADE INC (ESCA)

Informational only - not investment advice.

CIK: 0000033488
SIC: 3949 Sporting & Athletic Goods, NEC
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 39](/major-group/39/) > [SIC 3949 Sporting & Athletic Goods, NEC](/industry/3949/)
Latest 10-K filed: 2026-02-27
SEC page: https://www.sec.gov/edgar/browse/?CIK=33488
Filing source: https://www.sec.gov/Archives/edgar/data/33488/000143774926006094/esca20251231_10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001437749-26-006094 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000033488.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 240,158,000 USD | 2025 | verified |
| Net income | 13,701,000 USD | 2025 | verified |
| Assets | 222,109,000 USD | 2025 | verified |
| Free cash flow | 28,502,000 USD | 2025 | computed |
| Net margin | 5.70% | 2025 | computed |
| Operating margin | 7.80% | 2025 | computed |
| Revenue YoY | -4.51% | 2025 | computed |
| ROE | 7.91% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ESCA | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 5.7% | -1.1% | 71 | 8 |
| Operating margin | 7.8% | 6.4% | 71 | 8 |
| Revenue growth | -4.5% | -1.3% | 29 | 8 |
| FCF margin | 11.9% | 9.1% | 71 | 8 |
| ROA | 6.2% | -0.5% | 71 | 8 |
| Current ratio | 4.28 | 3.37 | 86 | 8 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3949 Sporting & Athletic Goods, NEC, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 240158000 | USD | 2025 | 2026-02-27 |
| Net income | 13701000 | USD | 2025 | 2026-02-27 |
| Assets | 222109000 | USD | 2025 | 2026-02-27 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000033488.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 189,958,000 | 195,779,000 | 175,780,000 | 180,541,000 | 273,649,000 | 313,612,000 | 313,757,000 | 263,566,000 | 251,510,000 | 240,158,000 |
| Net income | 11,493,000 | 14,061,000 | 20,442,000 | 7,258,000 | 25,934,000 | 24,405,000 | 17,989,000 | 9,829,000 | 12,986,000 | 13,701,000 |
| Operating income | 14,583,000 | 14,600,000 | 13,817,000 | 9,275,000 | 33,032,000 | 31,896,000 | 26,315,000 | 17,811,000 | 20,004,000 | 18,727,000 |
| Diluted EPS | 0.80 | 0.98 | 1.41 | 0.50 | 1.82 | 1.76 | 1.31 | 0.71 | 0.93 | 0.99 |
| Operating cash flow | 12,169,000 | 13,363,000 | 6,506,000 | 16,038,000 | 2,633,000 | 1,074,000 | 8,575,000 | 48,328,000 | 36,049,000 | 31,014,000 |
| Capital expenditures | 2,653,000 | 2,745,000 | 2,818,000 | 2,185,000 | 5,455,000 | 9,696,000 | 2,111,000 | 2,085,000 | 2,038,000 | 2,512,000 |
| Dividends paid | 6,282,000 | 6,607,000 | 7,215,000 | 7,204,000 | 7,466,000 | 7,693,000 | 8,154,000 | 6,180,000 | 8,306,000 | 8,277,000 |
| Share buybacks | 0.00 | 0.00 | 10,000 | 2,938,000 | 6,739,000 | 10,434,000 | 0.00 | 0.00 | 2,194,000 | 3,098,000 |
| Assets | 150,761,000 | 156,105,000 | 149,527,000 | 148,779,000 | 220,705,000 | 251,798,000 | 298,718,000 | 253,005,000 | 226,330,000 | 222,109,000 |
| Liabilities | 49,048,000 | 44,435,000 | 21,206,000 | 22,609,000 | 81,549,000 | 105,183,000 | 140,243,000 | 88,426,000 | 57,333,000 | 48,893,000 |
| Stockholders' equity | 101,713,000 | 111,670,000 | 128,321,000 | 126,170,000 | 139,156,000 | 146,615,000 | 158,475,000 | 164,579,000 | 168,997,000 | 173,216,000 |
| Free cash flow | 9,516,000 | 10,618,000 | 3,688,000 | 13,853,000 | -2,822,000 | -8,622,000 | 6,464,000 | 46,243,000 | 34,011,000 | 28,502,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 6.05% | 7.18% | 11.63% | 4.02% | 9.48% | 7.78% | 5.73% | 3.73% | 5.16% | 5.70% |
| Operating margin | 7.68% | 7.46% | 7.86% | 5.14% | 12.07% | 10.17% | 8.39% | 6.76% | 7.95% | 7.80% |
| Return on equity | 11.30% | 12.59% | 15.93% | 5.75% | 18.64% | 16.65% | 11.35% | 5.97% | 7.68% | 7.91% |
| Return on assets | 7.62% | 9.01% | 13.67% | 4.88% | 11.75% | 9.69% | 6.02% | 3.88% | 5.74% | 6.17% |
| Liabilities / equity | 0.48 | 0.40 | 0.17 | 0.18 | 0.59 | 0.72 | 0.88 | 0.54 | 0.34 | 0.28 |
| Current ratio | 4.11 | 4.11 | 5.26 | 4.77 | 3.16 | 3.55 | 4.83 | 4.41 | 3.88 | 4.28 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/ESCA/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000033488.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2012-Q3 | 2012-10-06 |  |  | -0.85 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.07 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.26 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 73,358,000 | 4,275,000 | 0.31 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 65,506,000 | 2,864,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 57,304,000 | 1,775,000 | 0.13 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 62,526,000 | 2,844,000 | 0.20 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 67,738,000 | 5,667,000 | 0.40 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 63,942,000 | 2,700,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 55,479,000 | 2,619,000 | 0.19 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 54,333,000 | 1,825,000 | 0.13 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 67,786,000 | 5,554,000 | 0.40 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 62,560,000 | 3,703,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 55,785,000 | 4,381,000 | 0.32 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 57,702,000 | 9,431,000 | 0.68 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ESCA's latest 10-K: [/company/ESCA/business/](/company/ESCA/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ESCA's latest 10-K: [/company/ESCA/risk-factors/](/company/ESCA/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/33488/000143774926024943/esca20260630_10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-30
Report date: 2026-06-30

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This report contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 3b-6 promulgated thereunder. All statements, other than statements of historical fact, are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “potential,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties. These risks include, but are not limited to: Escalade’s ability to achieve its business objectives; Escalade’s plans and expectations surrounding the transition to its new Chief Executive Officer and all potential related effects and consequences; Escalade’s ability to successfully implement actions to lessen the potential impacts of tariffs, a potential trade war with China and other trade restrictions applicable to our products and raw materials, including impacts on the costs of producing our goods, importing products and materials into our markets for sale, and on the pricing of our products; our international operations, including any related to political uncertainty and geopolitical tensions; Escalade’s ability to successfully achieve the anticipated results of strategic transactions, including the integration of the operations of acquired assets and businesses and of divestitures or discontinuances of certain operations, assets, brands, and products; the continuation and development of key customer, supplier, licensing and other business relationships; Escalade’s ability to protect its intellectual property; Escalade’s ability to develop and implement our own direct to consumer e-commerce distribution channel; the impact of competitive products and pricing; product demand and market acceptance; new product development; Escalade’s ability to successfully negotiate the shifting retail environment and changes in consumer buying habits; the financial health of our customers; disruptions or delays in our business operations, including without limitation disruptions or delays in our supply chain, arising from political unrest, war, terrorist attacks, labor strikes, natural disasters, public health crises such as the coronavirus pandemic, and other events and circumstances beyond our control; the evaluation and implementation of remediation efforts designed and implemented to enhance the Company’s control environment; the potential identification of one or more additional material weaknesses in the Company’s internal control of which the Company is not currently aware or that have not yet been detected; Escalade’s ability to control costs, including managing inventory levels; general economic conditions, including inflationary pressures; fluctuation in operating results; changes in foreign currency exchange rates; changes in the securities markets; continued listing of the Company’s common stock on the NASDAQ Global Market; the Company’s inclusion or exclusion from certain market indices; Escalade’s ability to obtain financing, to maintain compliance with the terms of such financing and to manage debt levels; the availability, integration and effective operation of information systems and other technology, and the potential interruption of such systems or technology; the potential impact of actual or perceived defects in, or safety of, our products, including any impact of product recalls or legal or regulatory claims, proceedings or investigations involving our products; risks related to data security of privacy breaches; the potential impact of regulatory claims, proceedings or investigations involving our products; Escalade’s use of estimates in its financial reporting as well as in its forward looking statements; and other risks detailed from time to time in Escalade’s filings with the Securities and Exchange Commission. Escalade’s future financial performance could differ materially from the expectations of management contained herein. Escalade undertakes no obligation to release revisions to these forward-looking statements after the date of this report.

Overview

Escalade, Incorporated (Escalade, the Company, we, us or our) is focused on growing its Sporting Goods business through organic growth of existing categories, strategic acquisitions, and new product development. The Sporting Goods business competes in a variety of categories including basketball goals, archery, billiards, indoor and outdoor game recreation, safety and fitness products. Strong brands and on-going investment in product development provide a solid foundation for building customer loyalty and continued growth.

Within the sporting goods industry, the Company has successfully built a robust market presence in several niche markets. This strategy is heavily dependent on expanding our customer base, barriers to entry, strong brands, excellent customer service and a commitment to innovation. A key strategic advantage is the Company’s established relationships with major customers that allow the Company to bring new products to market in a cost effective manner while maintaining a diversified portfolio of products to meet the demands of consumers. In addition to strategic customer relations, the Company has substantial manufacturing and import experience that enable it to be a low cost supplier.

13

To enhance growth opportunities, the Company has focused on promoting new product innovation and development and brand marketing. In addition, the Company has embarked on a strategy of acquiring companies or product lines that complement or expand the Company's existing product lines or provide expansion into new or emerging categories in sporting goods. A key objective is the acquisition of product lines with barriers to entry that the Company can take to market through its established distribution channels or through new market channels. Significant synergies are achieved through assimilation of acquired product lines into the existing Company structure.

Management believes that key indicators in measuring the success of these strategies are revenue growth, earnings growth, new product introductions, and the expansion of channels of distribution.

The United States Government has made a series of announcements concerning tariffs enacted and/or proposed to be enacted on the importation of goods into the United States including a baseline tariff rate and individualized higher rates on many countries including countries that supply goods to the Company, including China from which the Company imports a substantial amount of goods. While the United States Supreme Court issued a ruling earlier this year striking down tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”), the U.S. government has since initiated new tariffs under Section 122 of the Trace Act. Although the Company has recognized and received recoveries of certain IEEPA tariffs and may recover additional IEEPA claims as well, the Company still faces challenges from these newly imposed tariffs and uncertainties regarding international trade policy and practices including retaliatory tariffs and trade restrictions.

Additionally, hostilities in the Middle East have adversely affected shipping routes and oil prices and may have effects on the economy in general. Tariffs, restrictions on trade, rising energy costs and disrupted shipping routes have in the past and may again in the future result in increased costs and/or the unavailability of goods purchased by the Company, which in turn may result in lower profitability and/or a decline in sales as well as the loss of goodwill among customers.

General economic conditions, inflation, recessionary fears, rising energy costs, rising interest rates, changes in the housing market and declining consumer confidence also may impact the Company adversely. Management cannot predict the full impact of these factors on the Company. Due to the above circumstances and as described generally in this Form 10-Q, the Company’s results of operations for the period ended June 30, 2026 are not necessarily indicative of the results to be expected for fiscal year 2026.

Results of Operations

The following schedule sets forth certain consolidated statement of operations data as a percentage of net revenue:

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","","Six Months Ended"],["","","June 30, 2026","","","June 30, 2025","","","June 30, 2026","","","June 30, 2025"],["Net revenue","","","100.0","%","","","100.0","%","","","100.0","%","","","100.0","%"],["Cost of products sold","","","73.8","%","","","75.3","%","","","71.6","%","","","74.3","%"],["Gross margin","","","26.2","%","","","24.7","%","","","28.4","%","","","25.7","%"],["Selling, administrative and general expenses","","","21.6","%","","","18.9","%","","","20.4","%","","","19.0","%"],["Amortization","","","1.0","%","","","1.0","%","","","1.0","%","","","1.0","%"],["Tariff recovery","","","(17.1","%)","","","--","","","","(8.7","%)","","","--"],["Operating income","","","20.7","%","","","4.8","%","","","15.7","%","","","5.7","%"]]
[[/GREPCENT_TABLE]]

Revenue and Gross Margin

Sales increased 6.2% for the second quarter of 2026, compared with the same period in the prior year. Sales increased largely due to increases in our archery categories, including the incremental contribution from our September 2025 acquisition of Gold Tip assets. Net sales also benefited from increased demand in the safety, table tennis and basketball categories. These increases were partially offset by lower sales in outdoor game categories.

For the six months ended June 30, 2026, net sales increased 3.3% compared with the same period in the prior year, driven by the same factors that impacted the second quarter.

Gross margin increased 146 basis points to 26.2% for the second quarter of 2026 compared to 24.7% for the same period in 2025, primarily driven by better absorption, operating leverage and a favorable sales mix. For the six months ended June 30, 2026, gross margin increased to 28.4% compared to 25.7% for the same period in 2025.

14

Selling, General and Administrative Expenses

Selling, general and administrative expenses (SG&A) were $12.5 million for the second quarter of 2026 compared to $10.2 million for the same period in the prior year, an increase of $2.2 million or 21.7%. The increase in SG&A is largely driven by selling and marketing expenses related to recent acquisitions and an increase in variable compensation.

SG&A as a percent of sales is 21.6% for the second quarter of 2026 compared with 18.9% for the same period in the prior year.

For the six months ended June 30, 2026, SG&A were $23.2 million compared to $20.8 million for the same period in the prior year.

Tariff Recovery

During the three months ended June 30, 2026, the Company recognized $10.2 million of tariff recoveries related to the U.S. Court of International Trade ruling stating importers who paid IEEPA tariffs were entitled to refunds plus interest. The Company recognized approximately $9.9 million in operating income and $0.3 million of interest income related to the IEEPA recoveries.

Provision for Income Taxes

The effective tax rate

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/33488/000143774926006094/esca20251231_10k.htm
Complete FY 2025 MD&A: /company/ESCA/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-27
Report date: 2025-12-31

ITEM 7—MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following section should be read in conjunction with Item 1: Business; Item 1A: Risk Factors; and Item 8: Financial Statements and Supplementary Data.

Forward-Looking Statements

This report contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 3b-6 promulgated thereunder. All statements, other than statements of historical fact, are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “potential,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties. These risks include, but are not limited to: Escalade’s ability to achieve its business objectives; Escalade’s plans and expectations surrounding the transition to its new Chief Executive Officer and all potential related effects and consequences; Escalade’s ability to successfully implement actions to lessen the potential impacts of tariffs, a potential trade war with China and other trade restrictions applicable to our products and raw materials, including impacts on the costs of producing our goods, importing products and materials into our markets for sale, and on the pricing of our products; our international operations, including any related to political uncertainty and geopolitical tensions; Escalade’s ability to successfully achieve the anticipated results of strategic transactions, including the integration of the operations of acquired assets and businesses and of divestitures or discontinuances of certain operations, assets, brands, and products; the continuation and development of key customer, supplier, licensing and other business relationships; Escalade’s ability to protect its intellectual property; Escalade’s ability to develop and implement our own direct to consumer e-commerce distribution channel; the impact of competitive products and pricing; product demand and market acceptance; new product development; Escalade’s ability to successfully negotiate the shifting retail environment and changes in consumer buying habits; the financial health of our customers; disruptions or delays in our business operations, including without limitation disruptions or delays in our supply chain, arising from political unrest, war, terrorist attacks, labor strikes, natural disasters, public health crises such as the coronavirus pandemic, and other events and circumstances beyond our control; the evaluation and implementation of remediation efforts designed and implemented to enhance the Company’s control environment; the potential identification of one or more additional material weaknesses in the Company’s internal control of which the Company is not currently aware or that have not yet been detected; Escalade’s ability to control costs, including managing inventory levels; general economic conditions, including inflationary pressures; fluctuation in operating results; changes in foreign currency exchange rates; changes in the securities markets; continued listing of the Company’s common stock on the NASDAQ Global Market; the Company’s inclusion or exclusion from certain market indices; Escalade’s ability to obtain financing, to maintain compliance with the terms of such financing and to manage debt levels; the availability, integration and effective operation of information systems and other technology, and the potential interruption of such systems or technology; the potential impact of actual or perceived defects in, or safety of, our products, including any impact of product recalls or legal or regulatory claims, proceedings or investigations involving our products; risks related to data security of privacy breaches; the potential impact of regulatory claims, proceedings or investigations involving our products; Escalade’s use of estimates in its financial reporting as well as in its forward looking statements; and other risks detailed from time to time in Escalade’s filings with the Securities and Exchange Commission. Escalade’s future financial performance could differ materially from the expectations of management contained herein. Escalade undertakes no obligation to release revisions to these forward-looking statements after the date of this report.

22

Overview

Escalade, Incorporated (Escalade, the Company, we, us or our) is focused on growing its Sporting Goods segment through organic growth of existing categories, strategic acquisitions, and new product development. The Sporting Goods segment competes in a variety of categories including basketball goals, archery, indoor and outdoor recreation and fitness products. Strong brands and on-going investment in product development provide a solid foundation for building customer loyalty and continued growth.

Within the sporting goods industry, the Company has successfully built a robust market presence in several niche markets. This strategy is heavily dependent on expanding our customer base, barriers to entry, strong brands, excellent customer service and a commitment to innovation. A key strategic advantage is the Company’s established relationships with major customers that allow the Company to bring new products to market in a cost-effective manner while maintaining a diversified portfolio of products to meet the demands of consumers. In addition to strategic customer relations, the Company has substantial manufacturing and import experience that enable it to be a reliable and low-cost supplier.

To enhance growth opportunities, the Company has focused on promoting new product innovation and development and brand marketing. In addition, the Company has embarked on a strategy of acquiring companies or product lines that complement or expand the Company's existing product lines or provide expansion into new or emerging categories in sporting goods. A key objective is the acquisition of product lines with barriers to entry the Company can take to market through its established distribution channels or through new market channels. Significant synergies are achieved through assimilation of acquired product lines into the existing Company structure.

In September 2025, Escalade acquired the assets of Gold Tip, a leading brand of products for target archery and bow and crossbow hunting from Revelyst, Inc., strengthening the Company’s market position in archery. In December 2025, Escalade acquired AllCornhole, a leading brand and supplier of cornhole bags and equipment for competitive cornhole play.

Management seeks acquisitions that strengthen the Company’s leadership in various product categories or provide entry into attractive new product categories. The Company also sometimes divests or discontinues certain operations, assets, and products that do not perform to the Company's expectations or no longer fit with the Company's strategic objectives. Consistent with that philosophy, the Company completed the discontinuance of its Mexico operations, sale of its Mexican facilities, discontinuance of its Orlando, FL operations and terminated its long-term lease for the Orlando, FL facility in 2024.

Management believes that key indicators in measuring the success of these strategies are revenue growth, earnings growth, new product introductions, and the expansion of channels of distribution. The following table sets forth the annual percentage change in revenues and net income over the past two years:

[[GREPCENT_TABLE]]
[["","","2025","","","2024"],["Net sales"],["Sporting Goods","","","(4.5","%)","","","(4.6","%)"],["Consolidated","","","(4.5","%)","","","(4.6","%)"],["Net income"],["Sporting Goods","","","(1.0","%)","","","72.6","%"],["Consolidated","","","5.5","%","","","32.1","%"]]
[[/GREPCENT_TABLE]]

General economic conditions, inflation, recessionary fears, rising interest rates, changes in the housing market and declining consumer confidence may impact the Company adversely. Management cannot predict the full impact of these factors on the Company. Due to the above circumstances and as described generally in this Form 10-K, the Company’s results of operations for the 2025 fiscal year are not necessarily indicative of the results to be expected for fiscal year 2026.

23

Results of Operations

The following schedule sets forth certain consolidated statement of operations data as a percentage of net sales:

[[GREPCENT_TABLE]]
[["","","2025","","","2024"],["Net sales","","","100.0","%","","","100.0","%"],["Cost of products sold","","","73.1","%","","","75.3","%"],["Gross margin","","","26.9","%","","","24.7","%"],["Selling, administrative and general expenses","","","18.2","%","","","17.2","%"],["Amortization","","","0.9","%","","","1.1","%"],["Gain on sale of assets held","","","-","","","","(1.6","%)"],["Operating income","","","7.8","%","","","8.0","%"]]
[[/GREPCENT_TABLE]]

Revenue and Gross Margin

Net sales decreased 4.5% in 2025 compared to 2024. The Company recognized declines in sales across multiple categories due to softer consumer demand, partially offset by improved demand in the archery, billiards, and fitness categories.

The overall gross margin increased to 26.9% in 2025 compared with 24.7% in 2024. Gross margins were favorably impacted by lower manufacturing costs due to a smaller operational footprint, when compared to the prior-year period.

Selling, General and Administrative Expenses

Selling, general and administrative expenses (SG&A) were $43.6 million in 2025 compared to $43.3 million in 2024, an increase of $0.3 million or 0.7%. The increase in SG&A was primarily related to CEO transition costs incurred during 2025. SG&A as a percent of sales is 18.2% in 2025 compared with 17.2% in 2024.

Provision for Income Taxes

The effective tax rate for 2025 and 2024 was 24.0% and 26.9%, respectively. The 2025 effective tax rate is higher than the federal statutory rate primarily due to the impact of state taxes and nondeductible expenses. The 2024 effective tax rate is higher than the federal statutory rate primarily due to state income tax expense, nondeductible expenses, and the sale of Harvard Sports, partially offset by federal income tax credits.

Sporting Goods

Net sales, operating income, and net income for the Sporting Goods segment for the two years ended December 31, 2025 were as follows:

[[GREPCENT_TABLE]]
[["In Thousands","","2025","","","2024"],["Net sales","","$","240,158","","","$","251,510"],["Operating income","","","21,346","","","","23,088"],["Net income","","","14,970","","","","15,128"]]
[[/GREPCENT_TABLE]]

Net sales decreased 4.5% in 2025 compared to 2024.

Gross margin in 2025 was 26.9% compared to 24.7% in 2024. Operating income, as a percentage of net sales, decreased to 8.9% in 2025 compared to 9.2% in 2024.

24

Financial Condition and Liquidity

The current ratio, a basic measure of liquidity (current assets divided by current liabilities), for 2025 was 4.3, compared to 3.9 in 2024. Receivable levels decreased to $46.3 million in 2025 compared with $48.8 million in 2024 as a result of lower sales. Net inventory decreased $7.5 million to $68.5 million in 2025 from $76.0 million in 2024, due to continued efforts to right size our on hand inventory. Trade accounts payable and accrued liabiliti

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ESCA/mda/fy2025/
All MD&A years: /company/ESCA/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ESCA/mda/fy2024/): filed 2025-03-10; accession 0001437749-25-006863 (https://www.sec.gov/Archives/edgar/data/33488/000143774925006863/esca20241231_10k.htm)
- [FY 2023 MD&A](/company/ESCA/mda/fy2023/): filed 2024-03-29; accession 0001437749-24-010066 (https://www.sec.gov/Archives/edgar/data/33488/000143774924010066/esca20231231_10k.htm)
- [FY 2022 MD&A](/company/ESCA/mda/fy2022/): filed 2023-02-24; accession 0001437749-23-004461 (https://www.sec.gov/Archives/edgar/data/33488/000143774923004461/esca20221231_10k.htm)
- [FY 2021 MD&A](/company/ESCA/mda/fy2021/): filed 2022-02-22; accession 0001437749-22-003913 (https://www.sec.gov/Archives/edgar/data/33488/000143774922003913/esca20211225_10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3949 Sporting & Athletic Goods, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ESCA.md · JSON record: /company/ESCA.json · verified financials: /company/ESCA/financials.json / /company/ESCA/financials.csv · machine TOC for the whole site: /llms.txt