Executive Summary
Executive Summary: Under Armour’s QQ1 2025 results depict a revenue decline amid ongoing profitability headwinds, with a visible improvement in liquidity and cash generation that buffers near-term earnings volatility. Revenue for the quarter was $1.1837 billion, down 10.1% year over year and 11.1% quarter over quarter, reflecting softness in demand and an adjusted cost structure as the company navigates a highly competitive apparel landscape. Despite the top-line pressure, gross margin held at a solid 47.5%, underscoring a relatively favorable product mix and pricing power, but operating income deteriorated to a loss of $299.7 million and net income to a loss of $305.4 million (EPS -0.70). The disconnect between gross margin and bottom-line profitability points to elevated operating expenses and other charges within the period. On the balance sheet and cash flow, Under Armour delivered positive operating cash flow of $153.0 million and free cash flow of $107.3 million, finishing the period with a net cash position of approximately $289 million (cash and cash equivalents around $884.6 million against total debt of ~$595.4 million). This liquidity cushion supports ongoing investments in brand and distribution while providing flexibility as the company pursues margin recovery. Management commentary (where available) and 12-month operating trajectory will be critical to assessing whether cost containment, inventory optimization, and continued strength in gross margin can translate into sustainable earnings expansion and free cash flow generation.
Key Performance Indicators
QoQ: -11.14% | YoY:-10.12%
QoQ: -4 541.19% | YoY:-1 532.05%
QoQ: -115 591.67% | YoY:-3 672.65%
QoQ: -116 566.67% | YoY:-3 600.00%
Key Insights
Revenue: $1.1837B, down YoY 10.12% and QoQ 11.14% (YoY and QoQ declines)
Gross Profit: $562.7M, gross margin 47.54%, YoY -7.41%, QoQ -6.12%
Operating Income: -$299.7M, operating margin -25.32%
EBITDA: -$241.8M
Net Income: -$305.4M, net margin -25.80%
EPS: -$0.70 (Diluted -$0.70)
Interest/Taxes: tax expense $5.15M; income before tax -$300.1M
Cash Flow: Net cash provided by operating activities $153.0M; capex $-45.7M; free cash flow $107.3M
Liquidity & Leverage: cash and equivalents $884.6M; ...
Financial Highlights
Revenue: $1.1837B, down YoY 10.12% and QoQ 11.14% (YoY and QoQ declines)
Gross Profit: $562.7M, gross margin 47.54%, YoY -7.41%, QoQ -6.12%
Operating Income: -$299.7M, operating margin -25.32%
EBITDA: -$241.8M
Net Income: -$305.4M, net margin -25.80%
EPS: -$0.70 (Diluted -$0.70)
Interest/Taxes: tax expense $5.15M; income before tax -$300.1M
Cash Flow: Net cash provided by operating activities $153.0M; capex $-45.7M; free cash flow $107.3M
Liquidity & Leverage: cash and equivalents $884.6M; total debt $595.4M; net debt negative $289.2M; current ratio 1.73, quick ratio 1.08; cash conversion cycle ~113 days
Capital Allocation: no dividends paid; share repurchases net $-40.0M; undisclosed buybacks or issuances not disclosed beyond the period
Valuation Multiples (as of QQ1 2025 data): price-to-sales ≈ 2.34, price-to-book ≈ 1.53; enterprise value multiple negative due to net cash position; P/E is not meaningful due to negative earnings
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.18B |
-10.12% |
-11.14% |
| Gross Profit |
562.68M |
-7.41% |
-6.12% |
| Operating Income |
-299.73M |
-1 532.05% |
-4 541.19% |
| Net Income |
-305.43M |
-3 672.65% |
-115 591.67% |
| EPS |
-0.70 |
-3 600.00% |
-116 566.67% |
Key Financial Ratios
operatingProfitMargin
-25.3%
operatingCashFlowPerShare
$0.35
freeCashFlowPerShare
$0.25
Management Commentary
Note: The earnings transcript array is empty in the provided input. Consequently, there are no management quotes or thematic highlights to cite from an earnings call transcript. If a transcript is supplied, we will extract themes (strategy, operations, market conditions) and include contextual quotes with attribution.
Forward Guidance
No formal forward guidance was provided in the input data. In absence of management-provided targets, investors should monitor: (1) progress in cost containment and SG&A optimization to support operating margins; (2) inventory management and demand normalization to reduce working capital intensity; (3) acceleration of direct-to-consumer and e-commerce initiatives to improve gross margins and cash flow leverage; (4) any geographic expansion or product-category shifts that could diversify revenue mix. Given a net cash position and ongoing brand initiatives, the key watch items are margin recovery trajectory, pace of top-line stabilization, and capital allocation choices that could unlock shareholder value if profitability improves.