Under Armour Inc (U9R.DE) Q4 2024 Earnings Report

Under Armour’s QQ4 2024 results show a revenue decline accompanied by continued profitability headwinds and a tight liquidity position requiring careful capital discipline. Revenue for the quarter stood at $1.332 billion, down 14.98% year-over-year, with a gross margin of approximately 45.0% but an operating margin near break-even and a net loss of $0.264 million. The company produced a positive EBITDA of about $29.5 million, yet operating cash flow was negative at $139.1 million and free cash flow was negative at $156.7 million, highlighting an ongoing struggle to convert gross profit into meaningful cash flow amid working capital needs and a heavy SG&A load. Despite the cash balance of roughly $876.9 million, total debt remains sizable at ~$1.44 billion, yielding a net debt position of ~$584 million and a leverage profile that weighs on investor sentiment. The quarter also indicates elevated working capital demands (DSO ~51 days, DIO ~118 days, CCC ~109 days), signaling inventory and receivables management challenges as the company continues to invest in direct-to-consumer initiatives and international expansion. While EBITDA margins imply some underlying operating efficiency, the near-term path to sustainable profitability requires stabilization of the top line, improvements in operating leverage, and a clearer path to convert near-term marketing and digital investments into durable cash flows. Note: The provided dataset does not include management call transcripts; therefore, direct quotes from the earnings call are not included herein.