Executive Summary (QQ3 2025): Under Armour reported revenue of $1.401 billion for the quarter, a QoQ increase of 0.14% but a YoY decrease of 5.72%. Gross profit totaled $665.2 million with a gross margin of approximately 47.48%. Operating income was $13.5 million, and net income came in at $1.23 million, yielding basic EPS of $0.0029. While top-line stabilization limited true margin erosion in the quarter, the company continues to grapple with meaningfully thin profitability as SG&A levels remain elevated relative to sales.
From a cash-flow perspective, Under Armour generated strong operating cash flow of $311.3 million and free cash flow of $262.9 million, contributing to a cash balance of about $726.9 million and a net debt position of roughly $578.3 million. The balance sheet remains solid with ample liquidity (current ratio around 2.01) and a diversified asset base, though the business carries a modest leverage profile (debt to equity ~0.66).
Looking ahead, the lack of explicit quarterly guidance in the data set means investors should weigh the ongoing margin pressures, inventory dynamics (inventory days around 134.6), and the pace of growth in the company’s direct-to-consumer and digital ecosystem initiatives. Relative to peers in the apparel and broader consumer cyclical space, UA’s earnings power remains a key question mark even as its cash generation supports financial flexibility. Management commentary is not provided in the data set, so this analysis emphasizes the reported results and qualitative market dynamics.