Key financial results
- Total net sales: Net sales in the third quarter increased 21.2% year-over-year to $1.98 billion.
Net sales in the third quarter increased 21.2% year-over-year to $1.98 billion.
- Geography: Domestic net sales, which includes the U.S. and Canada, increased 19.4% to $1.31 billion, while international net sales grew 25.2% to $663 million.
domestic net sales, which includes U.S. and Canada, increased 19.4% to $1.31 billion and international net sales were $663 million, up 25.2%.
- Gross margin: Adjusted gross margin increased 560 basis points to 55.9% of net sales, while GAAP gross margin increased by roughly 910 basis points to 59.2% of net sales, driven primarily by tariff refund claims accepted by U.S. Customs and Border Protection.
Adjusted gross margin increased 560 basis points to 55.9% of net sales our GAAP gross margin increased by roughly 910 basis points to 59.2% of net sales.
- EBITDA: Adjusted EBITDA grew approximately 46% year-over-year for an adjusted EBITDA margin of 23.3% of net sales.
delivered over 21% sales growth and approximately 46% adjusted EBITDA growth in the third quarter for an adjusted EBITDA margin of 23.3% of net sales.
- Net income: Adjusted net income was $331 million, or $2.34 per diluted share, compared to $213 million, or $1.50 per diluted share in the prior year period.
Adjusted net income in the period was $331 million or $2.34 per diluted share. compared to $213 million or $1.50 per diluted share in the year ago period.
Business segment results
- Cleaning: Net sales in the cleaning category increased 4.1% year-over-year to $617 million, driven by corded and cordless vacuum subcategories.
Net sales in the cleaning category increased 4.1% year-over-year to $617 million, driven by our corded and cordless vacuum subcategories.
- Cooking and beverage: Net sales in the cooking and beverage category increased 36.6% year-over-year to $598 million, supported by franchises like the Ninja LuxeCafe and NinjaCriSpy.
Net sales in the cooking and beverage category increased 36.6% year-over-year to $598 million.
- Food preparation: Net sales in the food preparation category increased 18.3% year-over-year to $486 million, driven by robust growth in blending and frozen treats.
Net sales in the food preparation category increased 18.3% year-over-year to $486 million, driven by robust growth in our blending subcategory
- Beauty and home environment: Net sales in the beauty and home environment category increased 45.8% year-over-year to $276 million, with momentum in the Shark Beauty hair care and skin care portfolios.
Beauty and Home Environment category increased 45.8% year-over-year to $276 million with continued strength across product lines.
- U.K.: U.K. net sales grew 13.3% year-over-year to $268 million and are up nearly 17% year-to-date.
Our U.K. business grew 13.3% year-over-year to $268 million and is up nearly 17% year-to-date.
Capital allocation
- Share repurchase: During the third quarter, the company repurchased roughly $50 million worth of stock, bringing year-to-date repurchases to $170 million.
In the quarter, we repurchased roughly $50 million worth of stock as part of our authorization. This brings our year-to-date activity to $170 million so far in 2026.
- Cash balance: Cash and cash equivalents totaled almost $488 million exiting the quarter, up approximately 85% year-over-year.
At the end of the third quarter, cash and cash equivalents totaled almost $488 million, up approximately 85% year-over-year.
- Debt and liquidity: Total debt outstanding at quarter end was $709 million, with nearly $495 million of available capacity on the $500 million revolving credit facility.
Total debt outstanding at quarter end was $709 million, and we continue to have nearly $495 million of capacity available to us on our $500 million revolving credit facility.
- Capital expenditures: Capital expenditures for the full year 2026 are expected to be between $190 million and $210 million, tracking closer to the midpoint.
capital expenditures to be between $190 million to $210 million for the year, where we are now tracking closer to the midpoint instead of the high end.
Industry trends and dynamics
- Social commerce: Management highlighted the growth of social commerce across platforms like TikTok Shop, Meta, YouTube, and Snap as a major shift in retail consumer behavior.
I believe social commerce is the biggest change in consumer retail since Amazon.
- Demographics: The company is observing strong engagement across diverse demographic cohorts, with household penetration among 18 to 24 year olds up more than 50% over two years to the high single-digit range.
among 18- to 24-year olds, household penetration is up more than 50% over 2 years to the high single-digit range.
- Household size: Penetration also grew fastest in families with four or more members, representing an expanded cross-selling opportunity.
when looking at cohorts by household size, penetration grew fastest in families with 4 or more members.
Competitive landscape
- Global reach: SharkNinja operates in 41 subcategories globally and maintains long-standing retail partnerships across more than 30 countries with over 180 partners.
- Retail POS: Management noted that point-of-sale performance across major U.S. retailer digital storefronts is up more than 30% year-over-year.
year-to-date POS across our major U.S. retailer sites is up more than 30% year-over-year.
Macroeconomic environment
- Tariffs: The updated guidance assumes current tariff levels persist for the remainder of the year, including minimum rates of 10% for Indonesia, Malaysia, and Cambodia, and 12.5% for China, Vietnam, and Thailand.
- Tariff refunds: The company recognized approximately $110 million of gross FY 2025 tariff refund claims and approximately $134 million of tariff refund benefits associated with FY 2026 duties.
The IEEPA tariff refund claim related to 2025 of approximately $110 million represents the gross number recognized in Q3.
Growth opportunities and strategies
- Water filtration: The company launched the Ninja Hydro Sense water filtration system priced at $199, targeting a total addressable market sized over $6 billion.
For $199, we feel the Ninja Hydra Sense has democratized great water. We view this as a clear opportunity in a large market we have sized to over $6 billion.
- Category expansion: SharkNinja plans to enter two additional new subcategories in 2027 to build on the existing 41 subcategories.
Looking into 2027, we're committed to entering 2 additional new subcategories to build on our 41 today.
- Artificial intelligence: Management highlighted AI investments, including internal initiatives and AI-powered search on sharkninja.com, which yielded a high single-digit increase in revenue per search visitor.
AI-powered search is live with early results showing a nice high single-digit increase in revenue per search visitor
Financial guidance and outlook
- Net sales outlook: For the full year 2026, net sales are expected to increase between 18% and 19%, compared to the prior guidance of 16% to 17%.
For the full year 2026, we now expect net sales to increase between 18% and 19% compared to our prior guidance of a 16% to 17% increase.
- EPS outlook: Adjusted net income per diluted share for full year 2026 is expected to be in the range of $6.65 to $6.75, compared to $6.45 to $6.55 previously.
Adjusted net income per diluted share to be in the range of $6.65 and to $6.75 compared to $6.45 to $6.55 previously.
- EBITDA outlook: Adjusted EBITDA for full year 2026 is expected to be between $1.38 billion and $1.391 billion, representing growth of 21.5% to 22.5% year-over-year.
Adjusted EBITDA to be in the range of $1.38 billion to $1.391 billion representing growth of 21.5% to 22.5% year-over-year
- Q4 expectations: In the fourth quarter of 2026, net sales growth is expected to be up approximately 17% year-over-year, and adjusted EBITDA growth is expected to be up approximately 9% year-over-year.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Net sales | $1.98 billion | Up 21.2% year-over-year |
| Domestic net sales | $1.31 billion | Up 19.4% |
| International net sales | $663 million | Up 25.2% |
| Adjusted net income per diluted share | $2.34 | Compared to $1.50 in the year ago period |
| Adjusted EBITDA margin | 23.3% | Not stated |
How management sounded
Balanced (+35 on our -100 to +100 scale). Management highlighted robust double-digit growth, raised full-year guidance, and emphasized aggressive investments for future momentum. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Holiday 2026 performance of social commerce channels and TikTok Shop across multiple countries.
- The execution and payoff of tariff refund reinvestments in media, technology, and AI capabilities.
- Consumer adoption of new subcategories like the Ninja Hydro Sense.
Earlier calls
- Q2 2026 (Aug 5, 2026), tone Positive: SharkNinja reported second quarter net sales of $1.77 billion, up 22.2% year-over-year, driven by broad international growth and strong demand across its core categories.
