Executive Summary
Under Armour reported QQ3 2025 results with a modest year-over-year revenue uplift and a clear focus on cash generation and balance sheet resilience, even as operating profitability remains thin due to ongoing investments and channel mix. Key takeaways include revenue of USD 1.401 billion, gross profit of USD 665.2 million and a gross margin of 47.48%, while operating income stood at USD 13.5 million (0.96% margin) and EBITDA reached USD 90.9 million (6.49% EBITDA margin). Net income was USD 1.23 million, translating to a net margin of 0.088%, and basic earnings per share of USD 0.0029 (diluted USD 0.0028).
The company generated robust cash flow, with net cash provided by operating activities of USD 311.3 million and free cash flow of USD 262.9 million. The cash balance ended the period at USD 745.2 million, and net debt stood at roughly USD 578.3 million. On the balance sheet, total assets were USD 4.631 billion and total liabilities USD 2.646 billion, with equity of USD 1.984 billion, indicating meaningful liquidity headroom despite leverage. The business also exhibits a long cash conversion cycle, underscoring working capital discipline as a key lever for future margin expansion.
Note: There is no earnings call transcript data available in the provided dataset, so management quotes and call-specific guidance could not be incorporated. The analysis relies on reported results and historical quarterly trends; future commentary from management could alter the outlook as new information becomes available.
Key Performance Indicators
QoQ: -92.19% | YoY:309.18%
QoQ: -99.28% | YoY:567.42%
QoQ: -99.26% | YoY:583.33%
Key Insights
Revenue: USD 1,401,039,000 (+5.18% YoY; +0.14% QoQ). Gross Profit: USD 665,155,000 (Gross Margin 47.48%; YoY gross profit +10.98%; QoQ -4.45%). Operating Income: USD 13,509,000 (Operating Margin 0.96%); YoY +309.18%; QoQ -92.19%. EBITDA: USD 90,894,000 (EBITDA Margin 6.49%). Net Income: USD 1,234,000 (Net Margin 0.088%); YoY +567.42%; QoQ -99.28%. EPS: USD 0.00290 (Diluted USD 0.00280); YoY +583.33%; QoQ -99.26%. Cash Flow: Net cash provided by operating activities USD 311,289,000; Capex U...
Financial Highlights
Revenue: USD 1,401,039,000 (+5.18% YoY; +0.14% QoQ). Gross Profit: USD 665,155,000 (Gross Margin 47.48%; YoY gross profit +10.98%; QoQ -4.45%). Operating Income: USD 13,509,000 (Operating Margin 0.96%); YoY +309.18%; QoQ -92.19%. EBITDA: USD 90,894,000 (EBITDA Margin 6.49%). Net Income: USD 1,234,000 (Net Margin 0.088%); YoY +567.42%; QoQ -99.28%. EPS: USD 0.00290 (Diluted USD 0.00280); YoY +583.33%; QoQ -99.26%. Cash Flow: Net cash provided by operating activities USD 311,289,000; Capex USD 48,357,000; Free Cash Flow USD 262,932,000. Balance Sheet: Cash and cash equivalents USD 726,877,000; Total assets USD 4,630,965,000; Total debt USD 1,305,138,000; Net debt USD 578,261,000; Total equity USD 1,984,723,000. Liquidity & Ratios: Current ratio 2.01; Quick ratio 1.186; Cash ratio 0.542. Net debt to EBITDA implies leverage in the low-to-mid single digits relative to this quarter’s EBITDA figure. Gross margin near mid-40s, while operating and net margins remain modest due to ongoing investments and channel mix. Inventory turnover and DIO exceed typical apparel peer benchmarks, contributing to a longer cash conversion cycle (CCC ~174 days).
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
No QQ3 2025 earnings call transcript data were provided. Consequently, there are no management quotes or themes to synthesize in this section. If a transcript becomes available, highlights would be organized by themes (strategy, operations, market conditions) with direct quotes and contextual interpretation.
Forward Guidance
No explicit forward guidance is included in the data set for QQ3 2025. Inference from the results suggests a cautious but constructive path: maintain disciplined cost controls to improve operating leverage and focus on high-return investments in direct-to-consumer and international channels to support margin expansion. Investors should monitor: (1) progression of gross margin stability through product mix and pricing discipline, (2) SG&A efficiency and digital wholesale mix, (3) working capital dynamics (inventory levels and payable terms) given the elevated DIO, and (4) balance sheet leverage and deleveraging through ongoing free cash flow.