Under Armour Inc (U9R.DE) Q1 2026 Earnings Report

Under Armour reported QQ1 2026 results reflecting a challenging start to the year, with revenue of $1.134 billion, down 14.86% year over year and 19.06% quarter over quarter. Despite the top-line softness, gross margins remained resilient at 48.19%, underscoring favorable product margin structure even as sales declined. The quarter produced a modest operating profit of $3.32 million and a net loss of $2.61 million, translating to a negative EPS of $0.0061. EBITDA reached $45.13 million, yielding an EBITDA margin of approximately 3.98%, indicating some operating leverage even in a low-absorption environment. Positive operating cash flow of $48.85 million supported free cash flow of $14.49 million after $35.36 million of capital expenditures, highlighting cash-flow generation despite earnings volatility.

Liquidity remains solid with $910.99 million of cash and cash equivalents on the balance sheet, total assets of $4.87 billion, and total liabilities of $2.99 billion. The company carried a net debt position of about $764.7 million, with a healthy liquidity runway supported by a cash balance and ongoing cash flow from operations. The balance sheet shows a robust equity base of approximately $1.874 billion and a tangible asset base that supports ongoing working-capital management. In the near term, the focus appears to be on cost discipline, inventory optimization, and accelerating profitable growth through the Direct-to-Consumer (DTC) channel and digital platforms to drive margin expansion and revenue resilience.