Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Is Escalade (ESCA) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.Escalade is a member of the Consumer Discretionary sector. This group includes 257 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank gauges the s ...

Market Overview - U.S. stock markets have experienced a downturn over the past three weeks due to geopolitical conflicts in the Middle East, particularly between the U.S.-Israel joint force and Iran, leading to increased crude oil and natural gas prices [1] - The Strait of Hormuz, a major oil supply line controlled by Iran, remains severely disturbed, raising concerns about global inflation [1] Stock Performance - A limited number of stocks have shown price strength during this downturn, with a focus on those that have recently been on a bull run [2] - Five stocks identified with strong price gains are Cardinal Infrastructure Group Inc. (CDNL), Escalade Inc. (ESCA), Century Aluminum Co. (CENX), BrightSpring Health Services Inc. (BTSG), and Constellium SE (CSTM) [2][7] Stock Analysis - Cardinal Infrastructure Group (CDNL) has seen a stock price increase of 34% in four weeks, with earnings estimates rising by 29.9% [7][8] - Escalade Inc. (ESCA) has experienced a price increase of 28.9% over the same period, with an expected earnings growth of 6.1% [10] - Century Aluminum Co. (CENX) has surged 15.6% in stock price, with an expected earnings growth rate exceeding 100% [13] - BrightSpring Health Services Inc. (BTSG) has advanced 9.5% in stock price, with an expected earnings growth rate of 61% [14] - Constellium SE (CSTM) has gained 7.5% in stock price, with an expected earnings growth rate of 6.8% [16] Investment Screening Criteria - Stocks were screened based on several parameters, including a percentage change in price over the last four weeks greater than zero and a percentage change over 12 weeks greater than 10% [4] - Additional criteria included a Zacks Rank of 1 (Strong Buy), an average broker rating of 1, a current price greater than $5, and a current price/52-week high-low range greater than 85% [5][6]

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the utility of a specific screening strategy to identify stocks with strong fundamentals and positive price momentum. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to maintain their upward price trends, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - Escalade (ESCA) is highlighted as a strong candidate for trend investing, having increased by 28.2% over the past 12 weeks, reflecting investor confidence in its potential upside [4]. - ESCA has also shown a price increase of 17.9% over the last four weeks, indicating that the upward trend is still intact [5]. Group 2: Fundamental Strength - ESCA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The Zacks Rank system has a proven track record, with Rank 1 stocks averaging an annual return of +25% since 1988, underscoring the reliability of this ranking [7]. - The Average Broker Recommendation for ESCA is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Additional Insights - The article suggests that the price trend for ESCA is unlikely to reverse soon, and encourages investors to explore other stocks that meet the criteria of the "Recent Price Strength" screen [8]. - The Zacks Premium Screens offer over 45 strategically created options to help investors identify potential winning stocks based on their personal investing styles [8].

United States Securities and Exchange Commission Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number 0-6966 ESCALADE, INCORPORATED (Exact name of registrant as specified in its charter) | Indiana | 13-2739290 | | --- | -- ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net income of $3.7 million, or $0.27 per diluted share, on net sales of $62.6 million, reflecting a gross margin of 27.7%, up from 24.9% year-over-year, indicating a 280 basis point improvement due to lower operational costs and the Gold Tip acquisition [11][12] - Total cash flow from operations for Q4 2025 was $14.9 million, compared to $12.3 million in the prior year, primarily driven by a 10% decrease in inventory [12][13] Business Line Data and Key Metrics Changes - Net sales declined 2.2% in Q4 2025, attributed to softer consumer demand in basketball and outdoor games, but were partially offset by growth in archery and billiards due to recent acquisitions and new product launches [3][4] - Selling, general, and administrative expenses increased by 6.8% to $11.6 million, mainly due to non-recurrent executive transition expenses [12] Market Data and Key Metrics Changes - The consumer environment remains mixed, with less affluent consumers being more price-sensitive while affluent consumers are less affected by price changes [5] - The company is closely monitoring tariff policy changes but does not anticipate immediate impacts from recent adjustments [6] Company Strategy and Development Direction - The company is shifting focus from cost optimization to profitable growth, leveraging a leaner balance sheet and operational discipline established in 2025 [5][9] - Strategic investments in M&A and capital expenditures are prioritized to expand capacity and improve efficiency, with recent acquisitions like Gold Tip Archery and AllCornhole supporting growth [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment, emphasizing a strong free cash flow position to support future growth investments [9] - The company expects consumer conditions to remain mixed in 2026, with plans to further reduce inventory levels and enhance working capital management [4][5] Other Important Information - The company repaid nearly $2 million of long-term debt in Q4 2025 while increasing cash levels, indicating a strong cash position [9] - The acquisition of a 110,000 sq ft facility in Olney, Illinois, is aimed at supporting growth in the fitness and safety categories [8][16] Q&A Session Summary Question: Inquiry about the new facility's purpose and location - The new facility in Olney, Illinois, will primarily be used for warehousing for fitness and safety businesses, with potential for future consolidation of additional categories [15][16] Question: Discussion on product mix and demand trends - Higher value premium brands are showing favorable sales trends, while lower price point products are experiencing less favorable trends [17][18] Question: Inquiry about potential future price increases due to tariffs - The company does not foresee significant near-term price increases but remains vigilant regarding the dynamic tariff environment [19][20] Question: Inquiry about the potential refund of tariffs paid - The company indicated that the potential refund of tariffs is meaningful, estimated in the $4 million-$5 million range [24][25]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net income of $3.7 million, or $0.27 per diluted share, on net sales of $62.6 million, reflecting a gross margin of 27.7%, up from 24.9% in the prior year period, marking a 280 basis point increase due to lower operational costs and the Gold Tip acquisition [11][4][3] - Total cash flow from operations for Q4 2025 was $14.9 million, compared to $12.3 million in the prior year, driven by a 10% decrease in inventory and improved profitability [12][13] Business Line Data and Key Metrics Changes - Net sales declined 2.2% in Q4 2025, primarily due to softer consumer demand in basketball and outdoor games, although this was partially offset by growth in archery and billiards, aided by recent acquisitions and new product launches [3][4] - The company made significant inventory efficiency improvements, with total inventory declining by 10% year-over-year, supporting better working capital management [4] Market Data and Key Metrics Changes - The consumer environment remains mixed, with less affluent consumers being more price-sensitive while affluent consumers are less affected by price changes [5] - The company is closely monitoring emerging tariff policy changes but does not anticipate immediate impacts from recent changes [6] Company Strategy and Development Direction - The company is shifting focus from cost optimization to profitable growth while leveraging a leaner balance sheet and operational discipline established in 2025 [5][9] - M&A remains a capital allocation priority, with recent acquisitions aimed at supporting growth and expanding market position [7][9] - The company plans to increase capital expenditures in 2026 to expand capacity and improve efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment, emphasizing a strong free cash flow generation that supports future growth investments [9] - The company expects consumer conditions to remain mixed in 2026, influenced by moderating interest rates and persistent inflation [5] Other Important Information - The company repaid nearly $2 million of long-term debt during Q4 2025 while increasing cash levels, reflecting a strong cash arbitrage position [9] - The acquisition of AllCornhole was completed in Q4 2025, enhancing the outdoor recreation portfolio [7] Q&A Session Summary Question: Inquiry about the new 110,000 sq ft facility - The facility, located in Olney, Illinois, will primarily be used for warehousing for fitness and safety businesses, with potential for future consolidation of additional categories [16][17] Question: Product mix and demand trends - Higher price point products are showing favorable sales trends, while lower price point products are not performing as well, impacting overall product mix [18][19] Question: Future price increases in response to tariffs - The company does not anticipate significant additional price increases in the near term but remains vigilant regarding tariff changes [20][21] Question: Impact of potential tariff refunds - The company indicated that potential refunds from tariffs could be meaningful, estimated in the $4 million-$5 million range [24][25]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net income of $3.7 million, or $0.27 per diluted share, on net sales of $62.6 million, reflecting a 2.2% decline in net sales compared to the previous year [11][3] - Gross margin improved by 280 basis points year-over-year to 27.7%, attributed to lower operational costs and the benefits from the Gold Tip acquisition [11][4] - Total cash flow from operations increased to $14.9 million from $12.3 million in the prior year, driven by a 10% decrease in inventory and improved profitability [12][13] Business Line Data and Key Metrics Changes - The decline in net sales was primarily driven by softer consumer demand in basketball and outdoor games, while archery and billiards experienced healthy growth due to recent acquisitions and new product introductions [3][4] - Selling, general, and administrative expenses rose by 6.8% to $11.6 million, mainly due to non-recurrent executive transition expenses [12] Market Data and Key Metrics Changes - The consumer environment remains mixed, with less affluent consumers being more price-sensitive, while affluent consumers are less affected by price changes [5] - The company is closely monitoring emerging tariff policy changes, indicating a proactive approach to market conditions [5] Company Strategy and Development Direction - The company is shifting focus from cost optimization to profitable growth, leveraging a leaner balance sheet and operational discipline established in 2025 [5][9] - M&A remains a priority for capital allocation, with recent acquisitions aimed at complementing existing product categories and strengthening market position [6][7] Management Comments on Operating Environment and Future Outlook - Management expects consumer conditions to remain mixed in 2026, influenced by moderating interest rates and persistent inflation [5] - The company is confident in its ability to meet financial commitments while investing in future growth, supported by strong free cash flow generation [9] Other Important Information - The company repaid nearly $2 million of long-term debt during the fourth quarter and increased cash levels to $11.9 million [9][13] - A new 110,000 sq ft facility was purchased to support growth in safety and fitness categories, initially intended for warehousing [8][16] Q&A Session Summary Question: Is the new facility production or distribution, and will it alleviate tariff pressure? - The facility is primarily for warehousing for fitness and safety businesses, with potential for future growth plans [16][17] Question: How does the product mix impact sales trends? - Higher value premium brands are showing favorable sales trends, while lower price point products are not performing as well [18][19] Question: What is the outlook on additional price increases due to tariffs? - The company does not foresee significant near-term price increases but remains vigilant about the dynamic tariff environment [20][21] Question: Is the potential refund of tariffs meaningful for the company? - Yes, the potential refund is meaningful, estimated in the $4 million-$5 million range [24][26]

Financial Performance - Net sales for Q4 2025 decreased by 2.2% to $62.6 million compared to Q4 2024, while full year 2025 net sales decreased by 4.5% to $240.2 million[4] - Net income for Q4 2025 was $3.7 million, or $0.27 per diluted share, compared to $2.7 million, or $0.19 per diluted share in Q4 2024; full year net income was $13.7 million, or $0.99 per diluted share[4] - EBITDA for Q4 2025 increased by 9.3% to $6.5 million, while full year EBITDA decreased by 8.4% to $23.9 million[4] - Net income increased from $12,986,000 in 2024 to $13,701,000 in 2025, representing a growth of about 5.5%[24] - EBITDA (Non-GAAP) for the four quarters ended December 31, 2025, was $23,921,000, down from $26,119,000 in 2024, a decrease of about 8.4%[26] Cash Flow and Operations - Cash provided by operations in Q4 2025 was $14.9 million, up from $12.3 million in Q4 2024; full year cash provided by operations was $31.0 million, down from $36.0 million in 2024[4] - Net cash provided by operating activities was $31,014,000 in 2025, compared to $36,049,000 in 2024, a decline of approximately 13.9%[24] Debt and Liabilities - Total debt decreased by 27.9% to $18.5 million at the end of Q4 2025, with net leverage at 0.3x trailing twelve-month EBITDA, down from 0.8x in Q4 2024[4] - Long-term debt decreased from $18,452,000 in 2024 to $11,309,000 in 2025, a decline of approximately 38.7%[22] - Total current liabilities decreased from $34,495,000 in 2024 to $30,483,000 in 2025, a reduction of about 11.7%[22] Assets and Inventories - Total assets decreased from $226,330,000 in 2024 to $222,109,000 in 2025, a decline of approximately 1.0%[22] - Cash and cash equivalents rose significantly from $4,194,000 in 2024 to $11,878,000 in 2025, an increase of approximately 183.5%[24] - The company reported an increase in inventories from $76,025,000 in 2024 to $68,474,000 in 2025, a decrease of approximately 9.9%[22] Dividends and Shareholder Returns - The company announced an increase in the quarterly dividend to $0.1525 per share, payable on April 13, 2026[10] - The company paid dividends totaling $8,277,000 in 2025, slightly down from $8,306,000 in 2024[24] Acquisitions and Strategic Focus - The acquisition of AllCornhole was completed in Q4 2025, expanding the company's presence in a premium, fast-growing category[11] - The integration of the Gold Tip Archery acquisition was completed, contributing positively to Q4 results[11] - The company plans to focus on organic growth investments, strategic M&A, continued debt reduction, and disciplined capital return to shareholders[11] Stock Issuance - The company issued common stock for service amounting to $242,000 in 2025, with no such issuance in 2024[24]

Core Insights - Escalade, Inc. reported a mixed financial performance for the fourth quarter and full year 2025, with net income increasing but net sales declining [1] - The company announced a quarterly dividend increase, reflecting confidence in its long-term cash generation profile [1] Fourth Quarter 2025 Results - Quarterly dividend increased to $0.1525 per share [1] - Total debt decreased by 27.9% to $18.5 million, with net leverage at 0.3x [1] - Cash provided by operations rose to $14.9 million from $12.3 million in 2024 [1] - EBITDA increased by 9.3% to $6.5 million [1] - Net income was $3.7 million, or $0.27 per diluted share, compared to $2.7 million, or $0.19 per diluted share in 2024 [1] - Gross margin improved by 280 basis points to 27.7% [1] - Net sales decreased by 2.2% to $62.6 million, attributed to uneven consumer demand [1] Full Year 2025 Results - Cash provided by operations was $31.0 million, down from $36.0 million in 2024 [1] - EBITDA totaled $23.9 million, a decrease of 8.4% [1] - Net income increased to $13.7 million, or $0.99 per diluted share, from $13.0 million, or $0.93 per diluted share in 2024 [1] - Gross margin improved by 219 basis points to 26.9% [1] - Net sales decreased by 4.5% to $240.2 million [1] Management Commentary - The Interim President and CEO highlighted strong margin performance and operational execution [1] - The company is focusing on growth while maintaining operational discipline [1] - Recent acquisitions, including AllCornhole, are expected to support growth in premium categories [1] - The company aims to deploy free cash flow towards organic growth investments, strategic M&A, and debt reduction [1]

Core Viewpoint - Escalade, Inc. will announce its fourth quarter and full year 2025 financial results on February 27, 2026, before market opening, followed by a conference call to discuss the results and answer questions [1]. Group 1: Financial Results Announcement - The financial results for the fourth quarter and full year 2025 will be released before the market opens on February 27, 2026 [1]. - A conference call is scheduled for the same day at 11:00 a.m. ET to review the financial results [1]. - A webcast of the conference call will be available on Escalade's Investor Relations website [1]. Group 2: Participation Details - Domestic participants can join the live teleconference by calling 833-890-3250, while international participants can call 412-206-6441 [1]. - A replay of the teleconference will be available until March 13, 2026, with domestic and international replay numbers provided [1]. Group 3: Company Overview - Escalade, Inc. was founded in 1922 and is headquartered in Evansville, Indiana, focusing on the design, manufacture, and sale of sporting goods and recreational equipment [1]. - The company aims to connect families and friends through its products, which include various well-known brands in the sporting goods sector [1].