Escalade (NASDAQ:ESCA) Releases Earnings Results, Beats Estimates By $0.07 EPS

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

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 Trading Down 3.5%

NASDAQ ESCA traded down $0.52 on Friday, hitting $14.40. The company’s stock had a trading volume of 33,407 shares, compared to its average volume of 17,634. The company’s 50-day moving average is $13.99 and its 200 day moving average is $13.00. The firm has a market cap of $198.78 million, a PE ratio of 15.82 and a beta of 0.69. Escalade has a 1-year low of $11.41 and a 1-year high of $16.99. The company has a quick ratio of 1.41, a current ratio of 3.30 and a debt-to-equity ratio of 0.08.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Zacks Research cut shares of Escalade from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 27th. Weiss Ratings reissued a “hold (c)” rating on shares of Escalade in a research note on Thursday, January 22nd. Finally, Wall Street Zen upgraded shares of Escalade from a “buy” rating to a “strong-buy” rating in a research report on Sunday, February 8th. Two analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock has an average rating of “Hold”.

Insider Buying and Selling at Escalade

In related news, Director Richard Fenton Baalmann, Jr. sold 5,490 shares of the stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $13.00, for a total value of $71,370.00. Following the completion of the sale, the director directly owned 100,394 shares in the company, valued at $1,305,122. This represents a 5.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold a total of 10,000 shares of company stock valued at $130,100 over the last quarter. Insiders own 28.75% of the company’s stock.

Institutional Investors Weigh In On Escalade

A number of institutional investors have recently made changes to their positions in ESCA. Citadel Advisors LLC increased its stake in shares of Escalade by 120.1% in the third quarter. Citadel Advisors LLC now owns 27,916 shares of the company’s stock valued at $351,000 after buying an additional 15,231 shares during the period. Geode Capital Management LLC increased its position in Escalade by 2.1% during the 2nd quarter. Geode Capital Management LLC now owns 221,456 shares of the company’s stock valued at $3,096,000 after purchasing an additional 4,455 shares during the period. State Street Corp raised its holdings in Escalade by 3.2% during the 4th quarter. State Street Corp now owns 140,410 shares of the company’s stock worth $1,894,000 after purchasing an additional 4,373 shares during the last quarter. Wells Fargo & Company MN lifted its position in shares of Escalade by 42.3% in the 4th quarter. Wells Fargo & Company MN now owns 12,455 shares of the company’s stock worth $168,000 after purchasing an additional 3,701 shares during the period. Finally, Tower Research Capital LLC TRC lifted its position in shares of Escalade by 439.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,622 shares of the company’s stock worth $51,000 after purchasing an additional 2,950 shares during the period. Institutional investors 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.