Executive Summary
Under Armour (UA) delivered QQ1 2026 results reflective of a challenging consumer backdrop and a structurally evolving margins profile. Revenue of $1.134 billion declined versus both the prior-year period and the immediately preceding quarter (YoY down ~14.9%, QoQ down ~19.1%), signaling continued demand pressures in a highly competitive apparel market. The company posted a modest operating profit of $3.3 million and an EBITDA of $45.1 million, while reporting a net loss of $2.6 million and earnings per share of -$0.006. Gross margin stood at 48.2%, offering some cushion against SG&A intensity, but overall profitability remains constrained by non-operating items and tax effects that weighed on net income. Free cash flow was modestly positive at $14.5 million, with operating cash flow of $48.9 million and capital expenditures of $35.4 million, leaving a healthy cash balance of roughly $0.91 billion at quarter-end. The balance sheet shows total assets of $4.87 billion and total liabilities of $2.99 billion, with net debt of about $764.7 million against quarterly EBITDA of $45.1 million, implying leverage that demands attention as UA looks to drive profitability and balance-sheet durability in a volatile macro environment.
Key Performance Indicators
QoQ: -19.06% | YoY:-14.86%
QoQ: -17.84% | YoY:-8.82%
QoQ: -75.40% | YoY:151.46%
QoQ: -311.67% | YoY:-889.39%
QoQ: -310.34% | YoY:-916.67%
Key Insights
Revenue: $1.134B (QQ1 2026); YoY change: -14.86%; QoQ change: -19.06%
Gross Profit: $546.5M; Gross Margin: 48.19%; YoY Gross Profit change: -8.82%; QoQ change: -17.84%
Operating Income: $3.32M; Margin: 0.29%; YoY change: +151.46%; QoQ change: -75.40%
EBITDA: $45.13M; EBITDA Margin: 3.98%
Net Income: -$2.61M; EPS: -$0.0061; YoY EPS change: -916.67%; QoQ change: -310.34%
Cash Flow: Net cash from operating activities $48.85M; Free cash flow $14.49M; Capex $35.36M
Balance Sheet: Cash and cash equiva...
Financial Highlights
Revenue: $1.134B (QQ1 2026); YoY change: -14.86%; QoQ change: -19.06%
Gross Profit: $546.5M; Gross Margin: 48.19%; YoY Gross Profit change: -8.82%; QoQ change: -17.84%
Operating Income: $3.32M; Margin: 0.29%; YoY change: +151.46%; QoQ change: -75.40%
EBITDA: $45.13M; EBITDA Margin: 3.98%
Net Income: -$2.61M; EPS: -$0.0061; YoY EPS change: -916.67%; QoQ change: -310.34%
Cash Flow: Net cash from operating activities $48.85M; Free cash flow $14.49M; Capex $35.36M
Balance Sheet: Cash and cash equivalents $911.0M; Total assets $4.87B; Total liabilities $2.99B; Net debt $764.7M; Debt total $1.68B; Equity $1.87B
Liquidity/Leverage: Net debt/EBITDA (quarterly) approximately 17x (based on trailing 12-month EBITDA proxies), highlighting leverage risk even as cash flow improves.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.13B |
-14.86% |
-19.06% |
| Gross Profit |
546.50M |
-8.82% |
-17.84% |
| Operating Income |
3.32M |
151.46% |
-75.40% |
| Net Income |
-2.61M |
-889.39% |
-311.67% |
| EPS |
-0.01 |
-916.67% |
-310.34% |
Management Commentary
Note: Transcript content not provided in the dataset. The following highlights synthesize typical management themes for a QQ1 cycle in a high-visibility apparel brand context. If a full transcript becomes available, these themes should be revised to reflect actual quotes:
- Strategy and product: Emphasis on optimized product assortment, innovation in core categories, and strengthening brand positioning across DTC and wholesale channels.
- Operational efficiency: Focus on cost discipline, SG&A optimization, and supply chain resilience to protect gross margins amid commodity and freight volatility.
- Digital and DTC: Continued investment in direct-to-consumer, digital platforms, and consumer data capabilities to improve margin mix and personalize marketing.
- Market conditions: Acknowledgment of macro softness in certain regions and competitive intensity, with a plan to navigate through promotional environments while preserving brand value.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. Management commentary typically outlines ongoing initiatives around product cycles, cost containment, and leverage of digital channels. Investors should monitor: (1) trajectory of gross margin with input cost dynamics and mix shift toward higher-margin DTC; (2) cadence of SG&A optimization and leverage on fixed costs; (3) progress in inventory discipline and working capital efficiency; (4) cash flow generation trajectory and any changes in debt levels or financing terms. Given the current leverage, any improvement in operating performance and margin expansion would be critical for a sustained investment thesis.