Under Armour’s QQ3 2025 results show a revenue base of approximately $1.401 billion, down 5.72% year-over-year and up 0.14% quarter-over-quarter. The gross margin stood at 47.48%, while operating margin remained sub-1% at 0.96% and net margin was a slender 0.088%. Despite a very small net income of about $1.23 million, the company generated robust operating cash flow of $311.3 million and delivered free cash flow of $262.9 million for the period. This combination underscores Material cash-generation discipline even as profit quality remains challenged by a lack of scale in profitability, ongoing SG&A outlays, and a high tax expense relative to pre-tax income.
The balance sheet reflects reasonable liquidity with cash and equivalents of roughly $726.9 million and current assets around $2.69 billion against current liabilities of about $1.34 billion, yielding a healthy current ratio of 2.01. However, total debt stood at approximately $1.305 billion with net debt at $578.3 million, resulting in a leverage profile that warrants caution (net debt to EBITDA around 6.3x based on reported EBITDA of ~$90.9 million). The company also repurchased $25 million of common stock during the period, which modestly reduced equity and supports capital allocation structure but may limit autonomous deleveraging momentum without stronger operating earnings growth.
Strategically, Under Armour remains positioned to push growth through direct-to-consumer expansion, digital platforms, and brand-building initiatives (e.g., MapMyRun ecosystem). The QQ3 results imply the need for sustained efficiency gains, inventory management, and a more favorable product/margin mix to translate top-line strength into meaningful profitability improvements. With no formal forward guidance published in the provided materials, the near-term investment thesis hinges on execution around DTC growth, international expansion, disciplined cost control, and a managed inventory profile to unlock operating leverage and free cash flow expansion.