ESCA · Escalade, Incorporated

Escalade delivered a strong first quarter in 2026, characterized by significant profitability expansion despite modest top-line growth. Net sales increased 0.6% to $55.8 million, primarily driven by contributions from the recent Gold Tip archery acquisition and increased demand in the billiards and safety categories. These gains partially offset declines in the outdoor and indoor game categories. The most notable operational improvement was the 408 basis point expansion in gross margin to 30.7%, attributed to lower fixed costs and a favorable sales mix. This margin leverage directly fueled a 59.8% increase in operating income to $5.8 million and a 44.1% rise in EBITDA to $7.1 million. Net income rose to $4.4 million, or $0.32 per diluted share, representing a 67.2% increase in EPS compared to the prior-year period. The company also strengthened its financial position, generating $6.1 million in operating cash flow and reducing total debt to $16.7 million from $23.8 million year-over-year, resulting in a net debt leverage ratio of just 0.1x trailing twelve-month EBITDA. Management highlighted the benefits of operational excellence and cost-control initiatives. Looking forward, CEO Patrick J. Griffin acknowledged potential headwinds from inflationary pressures and elevated energy costs but expressed confidence that operational improvements would support gross margins above the prior year. The Board declared a quarterly dividend of $0.1525 per share, payable in July.