- In Q2 2025, Under Armour reported revenue of $1.399 billion, down 10.7% year-over-year but up 18.2% quarter-over-quarter. Gross margin held steady at roughly 49.8%, delivering a gross profit of $696.1 million and contributing to an operating income of $173.1 million and a net income of $170.4 million (EPS $0.39). The quarter demonstrates tangible margin resilience despite revenue contraction, supported by disciplined cost management and a favorable product mix.
- Notable cash-flow dynamics: operating cash flow was negative at $-321.4 million and free cash flow was negative at $-367.2 million, driven by a substantial working-capital outflow of about $505.3 million. Ending cash was $549.8 million with total debt of $1.332 billion and net debt of $801.1 million, signaling solid liquidity but a cash-flow headwind from working-capital needs that investors should monitor as inventory normalizes.
- The balance sheet remains robust: total assets of $4.495 billion and stockholders’ equity of $1.985 billion, with a current ratio of 2.18 and a quick ratio of 1.24. The company maintains a moderate leverage profile (debt to equity ~0.67; debt ratio ~0.30) and a cash-rich liquidity stance that supports near-term obligations while continuing to invest in growth initiatives.
Overall, the QQ2 2025 print reflects a bifurcated narrative: durable profitability on a leaner cost base and steady gross-margin discipline, yet cash conversion remains pressured by working-capital dynamics. Investors should focus on inventory normalization, direct-to-consumer acceleration, and international expansion as key catalysts for a more favorable free-cash-flow trajectory and earnings durability going forward.