Escalade (NASDAQ:ESCA) Issues Quarterly Earnings Results

Escalade (NASDAQ:ESCA) announced its earnings results on Friday. The company reported $0.27 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.07, FiscalAI reports. Escalade had a net margin of 5.26% and a return on equity of 7.49%. The business had revenue of $62.56 million during the quarter, compared to the consensus estimate of $57.55 million.

Here are the key takeaways from Escalade’s conference call:

• Net sales fell 2.2% in Q4 2025, driven by softer e‑commerce demand in basketball and outdoor games, partially offset by growth in archery and billiards.
• Gross margin expanded by 280 basis points to 27.7% and total inventory declined 10% year‑over‑year, reflecting structural cost actions and improved working capital management.
• Operating cash flow rose to $14.9 million, the company held $11.9 million in cash, repaid nearly $2 million of long‑term debt, and ended the quarter with net leverage of 0.3x.
• M&A and capacity investments are central to growth — the company integrated accretive Gold Tip, acquired AllCornhole, purchased a 110,000 sq ft facility for warehousing, and plans higher capex in 2026 to support expansion.
• Management sees no immediate tariff impact but is monitoring changes; they estimate potential tariff refunds in the range of $4–$5 million, though timing and realization remain uncertain.

Escalade Stock Performance

Shares of ESCA traded down $0.52 during trading hours on Friday, reaching $14.40. 33,407 shares of the company traded hands, compared to its average volume of 17,630. The stock has a market capitalization of $198.78 million, a P/E ratio of 15.82 and a beta of 0.69. The company has a quick ratio of 1.41, a current ratio of 3.30 and a debt-to-equity ratio of 0.08. The business has a fifty day moving average price of $13.99 and a 200-day moving average price of $13.00. Escalade has a 12-month low of $11.41 and a 12-month high of $16.99.

Wall Street Analyst Weigh In

ESCA has been the subject of several recent analyst reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Escalade in a research note on Thursday, January 22nd. Wall Street Zen raised Escalade from a “buy” rating to a “strong-buy” rating in a research report on Sunday, February 8th. Finally, Zacks Research lowered Escalade from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 27th. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has an average rating of “Hold”.

Insider Buying and Selling

In other Escalade news, Director Richard Fenton Baalmann, Jr. sold 5,490 shares of the business’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $13.00, for a total transaction of $71,370.00. Following the sale, the director owned 100,394 shares in the company, valued at approximately $1,305,122. The trade was a 5.18% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last ninety days, insiders sold 10,000 shares of company stock worth $130,100. Insiders own 28.75% of the company’s stock.

Institutional Investors Weigh In On Escalade

Institutional investors and hedge funds have recently modified their holdings of the company. Raymond James Financial Inc. acquired a new position in Escalade in the 2nd quarter worth approximately $29,000. Tower Research Capital LLC TRC lifted its stake in Escalade by 439.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,622 shares of the company’s stock valued at $51,000 after acquiring an additional 2,950 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of Escalade by 7.0% in the 4th quarter. Goldman Sachs Group Inc. now owns 11,845 shares of the company’s stock valued at $160,000 after acquiring an additional 779 shares during the last quarter. Wells Fargo & Company MN increased its stake in shares of Escalade by 42.3% in the fourth quarter. Wells Fargo & Company MN now owns 12,455 shares of the company’s stock worth $168,000 after acquiring an additional 3,701 shares during the period. Finally, JPMorgan Chase & Co. raised its holdings in shares of Escalade by 13.1% during the third quarter. JPMorgan Chase & Co. now owns 13,853 shares of the company’s stock worth $174,000 after purchasing an additional 1,600 shares during the last quarter. Institutional investors and hedge funds own 65.22% of the company’s stock.

About Escalade

Escalade, Inc is a U.S.-based manufacturer and distributor of recreational equipment and specialty products for both consumer and commercial markets. Headquartered in Evansville, Indiana, the company operates through two principal business segments: Sporting Goods and Commercial Products. The Sporting Goods segment encompasses a diverse range of products such as hockey and lacrosse goal assemblies, fitness accessories, archery and hunting gear, and table tennis equipment. The Commercial Products segment focuses on seating solutions for restaurants, hospitality venues and other public spaces under the Top Seat brand, as well as storage, display products and industrial carts.

Within Sporting Goods, Escalade markets its products under proprietary brands including Bear® Archery, Gene St.