Under Armour (UAA) Financials

Under Armour’s latest results show a business that is still struggling to convert revenue into profits, even though there are some signs of operating improvement in the most recent quarter.

In Q4 2026, revenue came in at $1.17 billion, down from $1.33 billion in Q3 2026 and below the roughly $1.18 billion posted in Q4 2025. The bigger issue is profitability: Under Armour posted an operating loss of $33.7 million and a net loss of $43.4 million in the quarter. That’s worse than the same quarter a year earlier, when it earned a small profit.

For the full recent trend, the picture is mixed. Q2 2026 showed a rare operating profit of $17.0 million and net income loss narrowed to $18.8 million, but that improvement did not hold. Q3 2026 swung back to a $430.8 million net loss, though that figure included a very large tax-related charge. Overall, earnings remain highly volatile.

Cash flow tells a similar story. Operating cash flow was negative $332.2 million in Q4 2026, after being strongly positive in several prior quarters. The swing was driven by a large negative change in working capital, which suggests pressure from inventory, receivables, or other operating balance sheet items.

The balance sheet is still reasonably liquid, but there are some caution flags. As of Q3 2026, cash and equivalents were $464.6 million, while total current assets were $2.99 billion against current liabilities of $2.09 billion. That implies the company still has near-term liquidity coverage, but debt remains meaningful, with $599.7 million in short-term debt and $390.0 million in long-term debt at quarter-end.

Over the last several years, Under Armour has generally shown:

• Improvement from earlier losses to occasional profitable quarters, including Q2 2026 and parts of FY2024.
• Gross profit has remained substantial, showing the brand still has pricing and demand power.
• Cash and current assets remain large enough to support ongoing operations in the near term.
• Revenue has been relatively stable but not growing consistently, hovering around the low-$1.1 billion to mid-$1.5 billion range quarter to quarter.
• Share count has not been dramatically diluted, though it has edged around the low-to-mid 420 million range.
• Debt has come down at times, but financing activity remains active, including debt issuance and repayments in different quarters.
• Operating margins are weak and often negative, especially when restructuring charges are included.
• Net income has been highly volatile, with large losses in multiple recent quarters.
• Working capital swings are hurting cash flow, which can pressure liquidity if the pattern continues.
• Inventory levels remain sizable, which could become a problem if demand slows or promotions increase.

Bottom line: Under Armour is not in a clear turnaround yet. The company still has a recognizable brand, sizable assets, and enough liquidity to keep operating, but the core business is not consistently producing profits or free cash flow. For retail investors, this looks more like a wait-and-see story than a clean recovery play right now.