Core Insights - Q.E.P. Co., Inc. reported a decline in net sales and gross profit for the first nine months and third quarter of fiscal year 2026, attributed to economic uncertainty and high interest rates [2][3][4]. Financial Performance - Net sales for the nine months ended November 30, 2025, were $178.3 million, down from $187.2 million in the same period of fiscal 2025, a decrease of $8.9 million or 4.7%. For the third quarter, net sales were $59.1 million, compared to $61.1 million in the prior year, a decrease of $2.0 million or 3.2% [2]. - Gross profit for the first nine months of fiscal 2026 was $63.6 million, down from $66.5 million in the prior year, a decrease of $2.9 million or 4.4%. Third quarter gross profit was $20.3 million, compared to $21.7 million in the third quarter of fiscal 2025, a decrease of $1.4 million or 6.4% [3][4]. - Gross margin for the first nine months and third quarter of fiscal 2026 was 35.7% and 34.4%, respectively, compared to 35.5% in the corresponding periods of fiscal 2025 [4]. Operating Expenses - Operating expenses totaled $48.8 million for the first nine months of fiscal 2026 and $15.9 million for the third quarter, representing 27.3% and 26.8% of net sales, respectively. This compares to $50.0 million and $15.5 million in the comparable fiscal 2025 periods [5]. Income and Earnings - Net income from continuing operations for the first nine months of fiscal 2026 was $11.5 million, or $3.53 per diluted share, compared to $12.3 million, or $3.74 per diluted share, in the comparable fiscal 2025 period. For the third quarter, net income was $3.5 million, or $1.08 per diluted share, compared to $4.6 million, or $1.40 per diluted share, in the prior-year quarter [7]. - Adjusted EBITDA from continuing operations for the first nine months of fiscal 2026 was $16.0 million, or 9.0% of net sales, compared to $17.5 million, or 9.4% in the comparable fiscal 2025 period. Third quarter adjusted EBITDA was $4.9 million, or 8.3% of net sales, compared to $6.5 million, or 10.6% in the prior-year quarter [8]. Cash Flow and Liquidity - Cash provided by operating activities during the first nine months of fiscal 2026 was $15.8 million, compared to $16.1 million in the first nine months of fiscal 2025 [11]. - As of November 30, 2025, working capital was $71.3 million, compared to $67.4 million at the end of fiscal 2025. Aggregate available cash, net of outstanding debt, totaled $36.1 million, compared to $28.4 million at the end of fiscal 2025 [13]. Management Commentary - The CEO expressed pride in the company's performance amid consumer uncertainty and housing market pressures, emphasizing a strong balance sheet and commitment to returning capital to stockholders [14].