Escalade, Inc. (NASDAQ: ESCA) reported its financial results for the third quarter of 2026, which ended September 30, 2026. The company posted net sales of $65.6 million for the quarter, a decrease of 3.2% compared to the same period in 2025. Despite the decline in sales, the company reported a net income of $6.7 million, or $0.48 per diluted share, compared to $5.6 million, or $0.40 per diluted share, in the prior year.
Management attributed the sales decrease primarily to lower demand in basketball, indoor games, and table tennis categories. These declines were partially offset by strong performance in the archery category, driven by vertical bow demand and the incremental contribution from the Gold Tip acquisition completed in September 2025, as well as increased demand in safety and outdoor games categories.
On a positive note, the company reported a gross margin of 29.4% for the third quarter, an improvement of 123 basis points year-over-year. This improvement was driven by better absorption and a favorable customer and sales mix. Additionally, the company generated $14.9 million in cash flow from operations during the quarter, a significant turnaround from the $1.0 million cash used in operations during the prior-year period.
In terms of balance sheet strength, total debt at the end of the quarter was $13.1 million, down from $20.2 million at the end of the third quarter of 2025. Total cash and equivalents as of September 30, 2026, stood at $24.5 million, with $60.0 million of availability on the company's senior secured revolving credit facility.
The company also announced a quarterly dividend of $0.1525 per share. This dividend will be paid to all shareholders of record on January 4, 2027, with the payment date set for January 11, 2027.
