Ethan Allen delivered a solid QQ3 2025 performance characterized by robust gross margins, disciplined cost management, and positive operating cash flow against a backdrop of macro headwinds. Reported net sales of $142.7 million and a gross margin of 61.2% supported by lower raw material costs, reduced headcount, and a higher average ticket. Operating income reached $10.997 million with an operating margin of 7.71%, while net income came in at $9.605 million and diluted EPS at $0.37–$0.38. The company generated $10.18 million of cash from operations and finished the period with approximately $183 million in cash and investments, alongside a debt position that remains a point of discussion given the balance sheet shows total debt of $122.9 million and net debt of $57.1 million, despite management commentary about no outstanding debt on the call. Management highlighted a resilient balance sheet and ongoing capital discipline, including dividends and capex focused on retail design centers and manufacturing technology.