Executive Summary
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.
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 (YoY -14.86%, QoQ -19.06%).
Gross Profit: $546.5M; Gross Margin: 48.19% (YoY -8.82%, QoQ -17.84%).
Operating Income: $3.3M; Operating Margin: 0.29% (YoY +151.46%, QoQ -75.40%).
Net Income: -$2.61M; Net Margin: -0.23% (YoY -889.39%, QoQ -311.67%).
EPS: -$0.0061 (YoY -916.67%, QoQ -310.34%).
EBITDA: $45.1M; EBITDA Margin: 3.98%.
Interest Expense: $4.04M; Depreciation & Amortization: $28.98M.
Free Cash Flow: $14.49M; Operating Cash Flow: $48.85M.
Cash at End of Period: $925.16M...
Financial Highlights
Revenue: $1.134B (YoY -14.86%, QoQ -19.06%).
Gross Profit: $546.5M; Gross Margin: 48.19% (YoY -8.82%, QoQ -17.84%).
Operating Income: $3.3M; Operating Margin: 0.29% (YoY +151.46%, QoQ -75.40%).
Net Income: -$2.61M; Net Margin: -0.23% (YoY -889.39%, QoQ -311.67%).
EPS: -$0.0061 (YoY -916.67%, QoQ -310.34%).
EBITDA: $45.1M; EBITDA Margin: 3.98%.
Interest Expense: $4.04M; Depreciation & Amortization: $28.98M.
Free Cash Flow: $14.49M; Operating Cash Flow: $48.85M.
Cash at End of Period: $925.16M; Net Debt: $764.74M; Total Debt: $1.6757B.
Current Assets: $2.9029B; Current Liabilities: $1.8954B; Total Liabilities: $2.9908B; Total Equity: $1.8744B.
Key liquidity indicators: Current ratio ~1.53; Quick ratio ~0.93 (approximate, using provided figures).
Capex: -$35.36M; Cash from Financing Activities: +$387.30M; Net Change in Cash: +$410.11M.
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
transcript data not provided in the input. Earnings call transcript and management quotes are not available in the supplied material. As a result, thematic highlights and quotes from management could not be synthesized from the provided data.
Forward Guidance
No explicit management guidance was included in the provided data for QQ1 2026. Given the observed metrics, the forward outlook hinges on three key levers: (1) revenue stabilization or growth through Direct-to-Consumer (DTC) expansion and regional mix optimization, (2) margin normalization via ongoing SG&A discipline and gross margin resilience around the mid-40s to high-40s, and (3) balance sheet flexibility supported by cash on hand and moderate net debt. Monitoring points for investors include: trend in revenue trajectory by channel (DTC vs wholesale), inventory levels and turnover, gross margin development amid potential price/mix changes, SG&A as a percentage of revenue, and debt maturities. Without stated guidance, the viability of a sustained earnings recovery will depend on a clear path to revenue growth and margin expansion over the next several quarters, aided by cost controls and gross margin resilience.