Escalade Tops EPS Expectations While Missing on Revenue
As seen on the 24/7 Wall St. homepage on October 29, 2026.
Margin is carrying Escalade: gross margin expanded 123 basis points to 29.4% even as revenue missed expectations. Operating cash flow of $14.9 million is the number that funds the dividend and the next acquisition.
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Escalade earned $0.48 per share in the third quarter of 2026, beating expectations, while revenue missed expectations on softer demand in basketball, indoor games and table tennis and a deliberate exit from lower-margin product lines.
Gross margin expanded 123 basis points to 29.4% on better fixed-cost absorption from 2025 acquisitions and a more favorable sales mix, lifting operating income and net income year over year.
Operating cash flow reached $14.9 million, versus cash used of roughly $1 million a year earlier, funding the quarterly dividend and giving management flexibility for further acquisitions, most recently ASL Solutions.
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CEO Patrick J. Griffin said gross margin expanded by more than 210 basis points through the first nine months of 2026 and called that structure sustainable, with 2027 growth expected from new product launches and recent acquisitions despite pressure on discretionary consumer spending.
Results include a tariff recovery credit for costs incurred in prior periods, a one-time item that flatters the underlying earnings run rate.
Mentioned: ESCA