Winmark(WINA) - 2025 Q3 - Quarterly Results

Third Quarter and Nine Months 2025 Financial Results Overview This section provides an overview of Winmark Corporation's financial performance for the third quarter and nine months ended September 27, 2025 Key Financial Highlights Winmark Corporation announced its third quarter and nine-month financial results for 2025, reporting stable net income for Q3 and an increase for the nine-month period compared to the previous year | Metric | Q3 2025 | Q3 2024 | 9 Months 2025 | 9 Months 2024 | | :-------------------- | :------------ | :------------ | :-------------- | :-------------- | | Net Income | $11,136,500 | $11,120,700 | $31,694,200 | $30,371,200 | | Diluted EPS | $3.02 | $3.03 | $8.61 | $8.29 | - Net income for the nine months ended September 27, 2025, increased by 4.36% year-over-year, and diluted EPS increased by 3.86% year-over-year[1] Company Business Description Winmark Corporation operates as a nationally recognized franchisor in the resale industry, promoting sustainability and small business formation through its five award-winning resale brands - Winmark is a nationally recognized franchisor focused on sustainability and small business formation[2] - The company operates five resale franchise brands: Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore®, and Music Go Round®[2] - As of September 27, 2025, there were 1,377 franchises in operation, over 2,800 available territories, and an additional 77 franchises awarded but not yet open[2] Forward-Looking Statements The press release includes forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially from those anticipated, cautioning investors against undue reliance - The press release contains forward-looking statements as per Section 21E of the Securities Exchange Act of 1934[3] - These statements are predictions or intentions subject to risks and uncertainties, and actual results could differ materially[3] - Shareholders and prospective investors are cautioned not to place undue reliance on such statements[3] Condensed Financial Statements This section presents Winmark Corporation's condensed balance sheets, statements of operations, and cash flows, highlighting key financial positions and performance metrics Condensed Balance Sheets Winmark Corporation's balance sheet as of September 27, 2025, shows a significant increase in total assets, primarily driven by a substantial rise in cash and cash equivalents, and a positive shift in shareholders' equity from a larger deficit to a reduced one | Metric | Sep 27, 2025 | Dec 28, 2024 | | :-------------------------------- | :----------- | :----------- | | Total Assets | $53,747,200 | $26,844,500 | | Cash and cash equivalents | $39,734,800 | $12,189,800 | | Total Current Assets | $43,064,300 | $15,365,600 | | Total Liabilities | $80,088,400 | $77,890,600 | | Total Shareholders' Equity (Deficit) | $(26,341,200) | $(51,046,100) | - Total assets increased by approximately 100% from December 28, 2024, to September 27, 2025, largely due to a significant increase in cash and cash equivalents[5] - The shareholders' deficit improved by approximately 48.4% from $(51,046,100) to $(26,341,200) over the period[7] Condensed Statements of Operations For the nine months ended September 27, 2025, Winmark reported an increase in total revenue and net income, primarily driven by higher royalties, with a slight increase in Q3 revenue and net income year-over-year Three Months Ended September 27, 2025 vs. September 28, 2024 | Metric | Sep 27, 2025 | Sep 28, 2024 | Change | | :------------------------ | :----------- | :----------- | :----- | | Total Revenue | $22,632,900 | $21,510,900 | +5.22% | | Royalties | $20,911,300 | $19,512,500 | +7.17% | | Income from operations | $14,923,200 | $14,928,600 | -0.04% | | Net income | $11,136,500 | $11,120,700 | +0.14% | | Diluted EPS | $3.02 | $3.03 | -0.33% | Nine Months Ended September 27, 2025 vs. September 28, 2024 | Metric | Sep 27, 2025 | Sep 28, 2024 | Change | | :------------------------ | :----------- | :----------- | :----- | | Total Revenue | $64,969,400 | $61,741,100 | +5.23% | | Royalties | $57,348,000 | $54,555,700 | +5.12% | | Income from operations | $41,580,800 | $40,164,400 | +3.53% | | Net income | $31,694,200 | $30,371,200 | +4.36% | | Diluted EPS | $8.61 | $8.29 | +3.86% | - Selling, general and administrative expenses increased for both the three-month period (+18.9%) and the nine-month period (+11.0%) year-over-year[9] Condensed Statements of Cash Flows For the nine months ended September 27, 2025, Winmark experienced a significant net increase in cash, cash equivalents, and restricted cash, primarily driven by strong operating activities cash flow, despite increased dividends paid and common stock repurchases | Metric | 9 Months Ended Sep 27, 2025 | 9 Months Ended Sep 28, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $36,373,800 | $33,700,000 | | Net cash used for investing activities | $(172,700) | $(194,900) | | Net cash used for financing activities | $(8,656,100) | $(9,604,600) | | Net increase in cash, cash equivalents and restricted cash | $27,545,000 | $23,900,500 | | Cash, cash equivalents and restricted cash, end of period | $39,874,800 | $37,287,000 | - Net cash provided by operating activities increased by 7.93% year-over-year[11] - Financing activities included $9,991,400 in dividends paid and $2,418,700 in common stock repurchases in 2025, partially offset by $3,754,000 from stock option exercises[11]