SharkNinja (SN) Financials

SharkNinja’s latest quarter shows strong top-line growth and solid profitability, but also a meaningful deterioration in cash flow and a heavier balance sheet. For Q1 2026, revenue rose year over year, operating income improved modestly, and net income increased. However, the company used a lot of cash in operations, and cash on hand fell sharply from the prior year quarter.

• Revenue grew 15.5% year over year to $1.41 billion from $1.22 billion, showing continued demand for SharkNinja’s products.
• Gross profit increased to $695.0 million from $603.2 million, reflecting higher sales and strong absolute gross profit generation.
• Operating income improved to $164.5 million from $144.9 million, indicating the business is scaling despite higher spending.
• Net income rose to $121.5 million from $117.8 million, with EPS also ticking up to $0.86 from $0.84.
• Cash flow from investing and financing was less negative than the prior year quarter in some areas, with no share repurchase in Q1 2025 and limited acquisition spending in both periods.
• Operating expenses rose alongside revenue, with marketing, SG&A, and R&D all increasing year over year as the company continued investing in growth.
• Inventory remains substantial at $1.03 billion, which is worth watching because it can affect working capital and future cash generation.
• Goodwill and intangible assets total about $1.28 billion, suggesting a meaningful portion of assets is tied to acquired or intangible value rather than hard assets.
• Long-term debt stands at $687.0 million, and total liabilities of $2.26 billion remain significant versus equity.
• Operating cash flow was negative $156.3 million, a sharp decline from negative $54.9 million in Q1 2025.
• Working capital consumed $338.8 million in cash, the main driver of weak operating cash flow and a sign of heavy seasonal or inventory/receivables pressure.
• Cash and equivalents fell to $511.8 million from $512.5 million at the end of the latest quarter’s comparable point, and the quarter-over-quarter cash burn is notable.
• Total liabilities increased to $2.26 billion, which makes the balance sheet more leveraged and leaves less room for error if cash flow stays weak.
• Financing cash flow was negative $69.2 million, driven by debt repayment, equity repurchases, and other financing outflows.

Bottom line: SharkNinja is still growing profitably, but investors should pay close attention to cash conversion. The income statement looks healthy, yet the balance sheet and cash flow statement show pressure from working capital and leverage. If the company can convert more of its earnings into cash, sentiment could improve; if not, the strong earnings trend may be viewed as less durable.