Under Armour’s QQ1 2026 results show a continued revenue decline with a modest operating profit and a return to EBITDA positive territory, supported by favorable gross margins and meaningful cash generation. Revenue came in at $1.134B, down 14.9% year over year and 19.1% quarter over quarter, while gross profit reached $546.5M for a gross margin of 48.2%. Despite a small operating profit of $3.3M, net income remained negative at $2.6M, translating to an EPS of -0.0061. EBITDA stood at $45.1M (3.98% of revenue), underscoring that earnings strength is emerging from a combination of cost discipline and revenue mix rather than top-line expansion. Free cash flow was $14.5M, and net cash provided by operating activities was $48.9M, highlighting healthy cash generation even as profitability remains tight. The balance sheet remains liquidity-rich with approximately $926M in cash and cash equivalents, while total debt stands around $1.676B and net debt approximates $764.7M, yielding a cushion for near-term liquidity. Management commentary is not included in the provided data, so the assessment relies on reported metrics, with a note that deeper insights into cost optimization, DTC initiatives, and regional mix would be found in the earnings call. Investors should watch for progression on gross margin resilience, SG&A containment, and revenue trajectory in the coming quarters to determine the durability of the current profitability trajectory.