Executive Summary
Under Armour reported QQ2 2025 results with revenue of $1.399 billion, down 5.9% year-over-year but up 18.2% quarter-over-quarter. The company delivered a solid gross margin of 49.8% and an operating margin of 12.4%, with net income of $170.4 million and earnings per share of $0.39. Despite a positive bottom line, operating cash flow remained negative at -$321.4 million and free cash flow was -$367.2 million, reflecting a substantial working capital build (change in working capital of -$505.3 million) and ongoing investments that weighed on cash generation. The balance sheet remains relatively healthy, with cash of $530.7 million and total debt of $1.3318 billion, yielding a net debt of $801.1 million and a net debt to EBITDA backdrop that supports a cautious but constructive view on liquidity.
Key Performance Indicators
QoQ: 157.75% | YoY:142.38%
QoQ: 155.79% | YoY:53.84%
QoQ: 155.71% | YoY:50.00%
Key Insights
Revenue: $1.399B; YoY change: -5.9%; QoQ change: +18.2%; Gross Profit: $696.1M; Gross Margin: 49.8%; Operating Income: $173.1M; Operating Margin: 12.37%; Net Income: $170.4M; Net Margin: 12.18%; EPS: $0.39; EBITDA: $209.0M; EBITDA Margin: 14.94%; Cash from Operations: -$321.4M; Free Cash Flow: -$367.2M; Cash and cash equivalents: $530.7M; Total debt: $1,331.8M; Net debt: $801.1M; Current ratio: 2.18; Quick ratio: 1.24; Gross Margin stability supported by favorable product mix and pricing; Signif...
Financial Highlights
Revenue: $1.399B; YoY change: -5.9%; QoQ change: +18.2%; Gross Profit: $696.1M; Gross Margin: 49.8%; Operating Income: $173.1M; Operating Margin: 12.37%; Net Income: $170.4M; Net Margin: 12.18%; EPS: $0.39; EBITDA: $209.0M; EBITDA Margin: 14.94%; Cash from Operations: -$321.4M; Free Cash Flow: -$367.2M; Cash and cash equivalents: $530.7M; Total debt: $1,331.8M; Net debt: $801.1M; Current ratio: 2.18; Quick ratio: 1.24; Gross Margin stability supported by favorable product mix and pricing; Significant working capital shift driven by payables and other working capital components; DTC and international growth potential remain key accelerants if cash flow normalization occurs.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.40B |
-5.86% |
18.19% |
| Gross Profit |
696.13M |
3.80% |
23.72% |
| Operating Income |
173.08M |
142.38% |
157.75% |
| Net Income |
170.38M |
53.84% |
155.79% |
| EPS |
0.39 |
50.00% |
155.71% |
Key Financial Ratios
operatingProfitMargin
12.4%
operatingCashFlowPerShare
$-0.74
freeCashFlowPerShare
$-0.85
Management Commentary
Management transcripts for QQ2 2025 were not provided in the data set. As a result, transcript-based qualitative insights and quotes are unavailable. The analysis below references the disclosed financials and typical themes observed in apparel-licensing and consumer-cyclicals earnings calls (DTC growth, inventory normalization, brand strategy, and international expansion) but cannot quote management verbatim.
Forward Guidance
No formal numerical guidance was included for QQ3/2025 or full-year guidance in the provided data. Given the current quarterly dynamics, a prudent baseline assumes revenue stabilization around the QQ2 level with ongoing gross margin resilience. Potential catalysts include: (1) stronger direct-to-consumer (DTC) penetration and improved e-commerce mix, (2) inventory normalization reducing working capital requirements over time, (3) selective international expansion and wholesale channel optimization, and (4) cost discipline improving SG&A leverage. Risks include continued macroeconomic uncertainty, currency fluctuations (UA’s USD-denominated reporting with international exposure), competitive pressure from Nike, Adidas, and fast-fashion entrants, and potential supply chain or freight cost volatility. Investors should monitor: quarterly working capital movement, inventory levels, DTC growth metrics, regional demand trends (Americas vs EMEA/APAC), and any emerging guidance on margins and capex plans.