Financial Data and Key Metrics Changes - Net sales increased by 14.3% year-over-year to $1.63 billion, marking the 10th consecutive quarter of double-digit growth [5][27] - Adjusted gross margins expanded by over 90 basis points year-over-year, surpassing 50% for the first time [5][29] - Adjusted EBITDA grew by nearly 21% year-over-year, reaching $317 million, with an adjusted EBITDA margin of 19.4% [5][33][34] - Adjusted net income increased by 24% year-over-year to $213 million, or $1.50 per diluted share [34] Business Line Data and Key Metrics Changes - Cleaning category net sales rose by 12.4% year-over-year to $593 million, with significant contributions from robotics and extraction products [27][28] - Cooking and beverage category net sales increased by 6.3% year-over-year to $437 million, driven by the Ninja Luxe Cafe espresso [28] - Food preparation category net sales grew by 11.9% year-over-year to $411 million, with the Ninja Slushie being a standout product [28] - Beauty and home environment category saw a remarkable increase of 56.7% year-over-year to $189 million, reflecting broad-based growth across various products [28] Market Data and Key Metrics Changes - Domestic net sales increased by 9.5% year-over-year to just over $1.1 billion, while international net sales grew by 25.8% year-over-year to $530 million [27] - U.K. net sales surged by 26.7% year-over-year to $237 million, with Mexico also performing exceptionally well [27][21] - Latin America experienced broad-based triple-digit growth in Q3, driven by strong consumer engagement and point-of-sale metrics [21] Company Strategy and Development Direction - The company is focused on a three-pillar growth strategy: expanding into new categories, growing share in existing categories, and international expansion [11][22] - Recent product launches include the Ninja Fireside360 outdoor heater and fire pit, Shark FlexStyle hair care products, and Shark CryoGlow skincare devices, showcasing the company's commitment to innovation [12][13][14] - The company aims to achieve 50% of its business from international markets in the short to mid-term [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform the market despite challenges such as supply chain disruptions and consumer uncertainty [4][23] - The company raised its full-year guidance, expecting net sales growth of 15% to 15.5% and adjusted net income per diluted share in the range of $5.05-$5.15 [37] - Management highlighted the importance of maintaining strong retailer relationships and consumer trust as key drivers for future growth [8][21] Other Important Information - The company has successfully navigated significant challenges in 2025, achieving record earnings per share and maintaining best-in-class profitability [23][24] - The transition to a direct-to-consumer model has been beneficial, particularly in Mexico, where consumer demand has been outstanding [21] Q&A Session Summary Question: Outlook for category growth for holiday and into 2026 - Management expressed confidence in their innovation pipeline and ability to continue outperforming the category, with a strong roadmap for new products [44][46] Question: Utilization of the new design center - The new design center in New York is expected to enhance innovation and attract top talent, complementing existing teams in Boston and London [50][52] Question: International growth and market opportunities - Management aims for 50% of the business to come from international markets, with strong growth expected in the U.K. and Germany [56] Question: Inventory levels and demand - The company reported healthy inventory levels heading into the holiday season, feeling confident about meeting consumer demand [61][62] Question: Price elasticity and market positioning - Management noted that they have cautiously taken price increases while maintaining a strong value proposition for consumers [64] Question: Impact of retailer inventory levels on business - Management indicated good retailer support and confidence in demand generation, despite some inventory challenges [70][72] Question: Update on international market transitions - The transition to self-distribution in international markets will be gradual, with a focus on maintaining relationships with distributors for smaller retailers [80]

Financial Data and Key Metrics Changes - Net sales growth of nearly 16% year over year, reaching $1.4 billion [43] - Adjusted EBITDA growth of approximately 33% year over year to $223 million, with an adjusted EBITDA margin of 15.5% [43][51] - Operating expenses as a percentage of net sales decreased by more than 200 basis points compared to the prior year quarter [6] Business Line Data and Key Metrics Changes - Domestic net sales increased roughly 14% year over year [44] - International net sales accelerated to over 20% growth year over year [8][44] - Cleaning category net sales increased 8% year over year to $500 million [45] - Food Preparation category net sales increased 53% year over year to $405 million [46] - Cooking and Beverage category net sales decreased 4% year over year to $366 million [46] - Beauty and Home Environment category net sales increased 25% year over year to $173 million [47] Market Data and Key Metrics Changes - The overall market in which the company operates declined in the low single-digit range year over year, excluding SharkNinja's performance [11] - The UK business showed strong sales momentum despite a 25% year over year decline in air fryers [31] Company Strategy and Development Direction - The company focuses on a three-pillar growth strategy: expanding into new categories, growing share in existing categories, and international expansion [14][34] - The company aims to introduce two new categories and 25 new products annually [15] - Significant investments in talent acquisition to enhance capabilities and drive growth [72][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and pursuing growth despite a turbulent environment [42][56] - The company raised its net sales and adjusted EBITDA growth ranges for FY 2025, reflecting optimism about future performance [35][54] - Management highlighted the importance of supply chain diversification and strategic pricing actions to mitigate tariff impacts [9][53] Other Important Information - The company achieved approximately 90% of U.S. volume produced outside of China, with plans to reach nearly 100% by year-end [13] - The company was named to Time Magazine's list of Time 100 most influential companies for 2025, validating its consumer-focused approach [38] Q&A Session Questions and Answers Question: How are you thinking about growth opportunities between U.S. and international markets? - Management noted strong domestic demand and new product introductions, while also expecting acceleration in international markets like the UK, Germany, and France [62][66] Question: Can you help us understand your tariff commentary and its impact on gross margins? - Management provided clarity on tariff rates, indicating that the reduction in expected rates allows for increased flexibility in supply chain decisions [67][69] Question: What is the approach to talent acquisition and its impact on growth? - Management emphasized the need for strong leadership in innovation and growth areas, highlighting recent key hires to support the company's expansion and complexity [72][78] Question: How do you plan to market the Shark and Ninja brands together? - Management discussed the upcoming launch of a unified website to enhance consumer experience and cross-sell opportunities between the two brands [81][83]

Financial Data and Key Metrics Changes - Net sales increased by 15.7% year over year to $1.4 billion, with adjusted EBITDA growing by approximately 33% to $223 million, resulting in an adjusted EBITDA margin of 15.5% [41][49] - Operating expenses as a percentage of net sales decreased by more than 200 basis points compared to the prior year [6] - Adjusted net income for the second quarter was $138 million, or $0.97 per diluted share, compared to $100 million, or $0.71 per diluted share in the prior year [49] Business Line Data and Key Metrics Changes - Domestic net sales grew by roughly 14% year over year, while international net sales accelerated to over 20% growth [42][7] - Cleaning category net sales increased by 8% year over year to $466 million, driven by strong performance in robotics and extraction products [43] - Food preparation category net sales surged by 53% year over year to $405 million, primarily due to the success of the Slushy frozen drink maker [44] - Cooking and beverage category net sales decreased by 4% year over year to $366 million, impacted by declines in air fryer and outdoor grill subcategories [44] - Beauty and home environment category net sales increased by 25% year over year to $173 million, driven by air purifiers and the CryoGlo skincare product [45] Market Data and Key Metrics Changes - The overall market for the end categories declined in the low single-digit range year over year, while SharkNinja's performance showed significant relative strength [11] - The UK business returned to form more quickly than expected, with sales momentum strengthening throughout the quarter despite a 25% year-over-year decline in air fryers [30] Company Strategy and Development Direction - The company is focused on a three-pillar growth strategy: expanding into new categories, growing share in existing categories, and international expansion [14][25][29] - SharkNinja aims to introduce two new categories and 25 new products annually, with a strong emphasis on innovation and consumer problem-solving [15][18] - The company has achieved approximately 90% of its U.S. volume produced outside of China, with plans to reach nearly 100% by year-end [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenging macro environment and highlighted strong consumer demand for SharkNinja products [40][41] - The company raised its outlook for 2025, expecting net sales to increase between 13% to 15%, up from a previous estimate of 11% [52] - Management emphasized the importance of agility and innovation in maintaining competitive advantages amid global supply challenges [12][34] Other Important Information - SharkNinja was named to Time Magazine's list of the 100 most influential companies for 2025, reflecting its focus on solving consumer problems [37] - The company plans to relaunch its direct-to-consumer website, enhancing cross-selling opportunities between the Shark and Ninja brands [36][78] Q&A Session Summary Question: Growth opportunities between U.S. and international markets - Management noted strong domestic demand and new product introductions, while international markets, particularly the UK, Germany, and France, are expected to see continued growth [59][61] Question: Clarification on tariff impacts and gross margins - Management provided clarity on tariff rates, indicating that the new rates would not significantly impact their operations but would offer increased flexibility in supply chain decisions [64][66] Question: Talent acquisition and capabilities - Management discussed recent key hires aimed at enhancing product complexity and innovation, particularly in software and electronics [69][70] Question: Marketing strategy and brand integration - Management highlighted the success of the F1 movie partnership and the upcoming website launch that will allow for better cross-selling and brand recognition [77][78]