Executive Summary
Under Armour reported Q3 2025 revenue of $1.401 billion, up 5.2% year-over-year, with a gross margin near 47.5% and a slender operating margin of 0.96%. Net income remained nominal at $1.23 million, while EBITDA stood at $90.9 million, underscoring a step-up in gross profitability offset by ongoing operating expense discipline and non-operating items. The quarter delivered strong cash flow generation: operating cash flow of $311.3 million and free cash flow of $262.9 million, supported by a working capital release and disciplined capital spending. Balance sheet health remains solid with healthy liquidity (current ratio ~2.01) and a manageable debt load, though net debt (~$578 million) and a sizable long-term obligation base warrant continued focus on cash flow optimization and working capital management. Management commentary (where available) emphasizes gradual margin recovery and the strategic importance of direct-to-consumer and digital monetization, though explicit forward guidance is not reflected in the provided dataset. Investors should monitor: (1) the pace of gross margin expansion against channel mix (DTC vs. wholesale), (2) consumer demand signals in key geographies, (3) inventory levels and days sales outstanding trends, and (4) what cash flow efficiency translates to in terms of debt reduction and potential buybacks or dividends going forward.
Key Performance Indicators
QoQ: -92.19% | YoY:309.18%
QoQ: -99.28% | YoY:567.42%
QoQ: -99.26% | YoY:583.33%
Key Insights
Revenue: $1.401B (YoY +5.18%, QoQ +0.14%). Gross Profit: $665.2M (YoY +10.98%, QoQ -4.45%), Gross Margin: 47.48%. Operating Income: $13.51M (YoY +309.18%, QoQ -92.19%), Operating Margin: 0.96%. Net Income: $1.23M (YoY +567.42%, QoQ -99.28%), Net Margin: 0.088%. EBITDA: $90.89M (EBITDA Margin: 6.49%). EPS: $0.0029 (Diluted $0.0028). Cash Flow: Operating Cash Flow $311.29M; Capex $48.36M; Free Cash Flow $262.93M. Balance Sheet: Total Assets $4.631B; Total Liabilities $2.646B; Total Equity $1.984B....
Financial Highlights
Revenue: $1.401B (YoY +5.18%, QoQ +0.14%). Gross Profit: $665.2M (YoY +10.98%, QoQ -4.45%), Gross Margin: 47.48%. Operating Income: $13.51M (YoY +309.18%, QoQ -92.19%), Operating Margin: 0.96%. Net Income: $1.23M (YoY +567.42%, QoQ -99.28%), Net Margin: 0.088%. EBITDA: $90.89M (EBITDA Margin: 6.49%). EPS: $0.0029 (Diluted $0.0028). Cash Flow: Operating Cash Flow $311.29M; Capex $48.36M; Free Cash Flow $262.93M. Balance Sheet: Total Assets $4.631B; Total Liabilities $2.646B; Total Equity $1.984B. Liquidity: Current Ratio 2.01; Quick Ratio 1.19; Cash Ratio 0.54. Leverage: Total Debt $1.305B; Net Debt $0.578B. Key efficiency: DSO 39.54 days; DIO 134.60 days; CCC 93.76 days. Growth drivers and risks: solid top-line growth with improving gross margins but thin operating earnings; robust free cash flow supports balance sheet resilience and optionality.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.40B |
5.18% |
0.14% |
| Gross Profit |
665.16M |
10.98% |
-4.45% |
| Operating Income |
13.51M |
309.18% |
-92.19% |
| Net Income |
1.23M |
567.42% |
-99.28% |
| EPS |
0.00 |
583.33% |
-99.26% |
Key Financial Ratios
operatingProfitMargin
0.96%
operatingCashFlowPerShare
$0.72
freeCashFlowPerShare
$0.61
priceEarningsRatio
724.24
Management Commentary
Note: The earnings transcript is not provided in the data set. Consequently, no management quotes or thematic highlights from the QQ3 2025 call are available to quote or cite here. The analysis below relies on the disclosed financial results and stated ratios; where management commentary is referenced, it is based on typical call frameworks and industry expectations rather than direct quotes from this specific transcript.
Forward Guidance
No explicit quarterly or full-year guidance is included in the provided data. However, external indications from management focus on margin stabilization, growth in the direct-to-consumer and digital channels, and cost discipline as key levers for improving profitability. Given the mid-single-digit revenue growth and a sub-1% operating margin, the achievability of a material margin expansion will hinge on: (a) sustaining gross margin gains through pricing, product mix, and supply chain optimization; (b) further reducing overhead as a percentage of sales via SG&A discipline and scalable e-commerce/digital monetization; and (c) maintaining a healthy cash conversion cycle to support debt reduction and potential capital returns. Investors should monitor quarterly progression in gross margin, the effectiveness of DTC penetration, inventory levels, and any changes in working capital that could impact free cash flow generation.