Winmark Corp.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 18 February 2026: press release. The quarter’s numbers.

Key takeaways

Full-year net income and diluted EPS rose: Full-year net income was $41,654,100, or $11.30 diluted EPS, against $39,954,200, or $10.89, in 2024. Source
Fourth-quarter net income and EPS rose: Fourth-quarter net income was $9,959,900, or $2.69 diluted EPS, against $9,583,100, or $2.60, a year earlier. Source
Royalties were the largest revenue line: Royalties were $19,004,800 in the fourth quarter, against $17,642,800, and $76,352,800 for the year, against $72,198,500. Source
Selling, general and administrative costs rose: SG&A expenses were $7,286,900 in the fourth quarter, against $5,965,200, and $28,357,400 for the year, against $24,944,200. Source
Year-end cash fell from prior year: Cash and cash equivalents were $10,295,700 at December 27, 2025, against $12,189,800 at December 28, 2024. Source

“During the year, Winmark made significant investments in marketing, technology, and innovation. We will continue to build a strong foundation in these areas to support our franchisees and enhance our shared business model.”
Brett D. Heffes, Chair and Chief Executive Officer

Full-year and fourth-quarter results

Full-year net income and diluted EPS rose: Full-year net income was $41,654,100, or $11.30 diluted EPS, against $39,954,200, or $10.89, in 2024. Source
Fourth-quarter net income and EPS rose: Fourth-quarter net income was $9,959,900, or $2.69 diluted EPS, against $9,583,100, or $2.60, a year earlier. Source
Total revenue rose in both periods: Full-year total revenue was $86,055,700, against $81,289,100. Fourth-quarter total revenue was $21,086,300, against $19,548,100. Source
Operating income higher in both periods: Income from operations was $13,013,100 in the fourth quarter, against $12,766,200, and $54,593,900 for the year, against $52,930,600. Source

Revenue lines and royalties

Royalties were the largest revenue line: Royalties were $19,004,800 in the fourth quarter, against $17,642,800, and $76,352,800 for the year, against $72,198,500. Source
Leasing income rose in both periods: Leasing income was $230,700 in the fourth quarter, against $134,500, and $2,631,800 for the year, against $1,811,800. Source
Merchandise sales fell in both periods: Merchandise sales were $844,300 in the fourth quarter, against $862,900, and $3,282,800 for the year, against $3,601,300. Source
Franchise fees and other revenue mixed: Franchise fees were $437,800 in the fourth quarter, against $362,800, and $1,525,800 for the year, against $1,545,600. Other revenue was $568,700 in the quarter, against $545,100, and $2,262,500 for the year, against $2,131,900. Source

Costs, tax and interest

Selling, general and administrative costs rose: SG&A expenses were $7,286,900 in the fourth quarter, against $5,965,200, and $28,357,400 for the year, against $24,944,200. Source
Cost of merchandise sold declined: Cost of merchandise sold was $786,300 in the fourth quarter, against $816,700, and $3,104,400 for the year, against $3,379,200. Source
Tax provision higher for the year: Provision for income taxes was $2,714,100 in the fourth quarter, against $2,784,600, and $11,481,500 for the year, against $11,269,800. Source
Interest expense fell for the year: Interest expense was $612,900 in the fourth quarter, against $693,600, and $2,446,800 for the year, against $2,856,900. Interest and other income was $988,500 for the year, against $1,150,300. Source

Cash flow and balance sheet

Operating cash flow rose for the year: Net cash provided by operating activities was $44,896,800 for the year, against $42,157,900 in 2024. Source
Capital spending stayed small: Purchases of property and equipment were $192,300 for the year, against $194,900 in 2024, and were the only investing outflow. Source
Year-end cash fell from prior year: Cash and cash equivalents were $10,295,700 at December 27, 2025, against $12,189,800 at December 28, 2024. Source
Cash was higher at September quarter-end: At September 27, 2025, cash and cash equivalents were $39,734,800, according to the prior quarter's release.
Debt balances little changed: Line of credit/term loan stayed at $30,000,000, and notes payable, net was $29,961,000, against $29,942,800. Source
Shareholders' equity remained in deficit: Total shareholders’ equity was a deficit of $53,682,400, against a deficit of $51,046,100 a year earlier. Source

Dividends, buybacks and share count

Dividends paid rose for the year: Dividends paid were $49,112,700 for the year, against $38,865,900 in 2024. Source
Nine-month dividends in prior release: For the nine months ended September 27, 2025, dividends paid were $9,991,400, against $9,132,100 in the same period of 2024.
Share repurchases and note payments: Repurchases of common stock were $2,418,700 for the year, against none in 2024. Payments on notes payable were none in 2025, against $9,187,500 in 2024. Source
Option exercise proceeds were lower: Proceeds from exercises of stock options were $4,957,800 for the year, against $5,033,700 in 2024. Source
Shares outstanding rose over the year: Shares issued and outstanding were 3,571,861 at year-end, against 3,539,744 a year earlier. Source
Diluted share count rose slightly: Weighted average diluted shares were 3,702,597 in the fourth quarter, against 3,679,992, and 3,685,457 for the year, against 3,667,479. Source

Franchise network growth

Franchises in operation reached 1,378: At December 27, 2025, there were 1,378 franchises in operation and over 2,800 available territories. Source
Franchise count was 1,377 in September: The franchise count was 1,377 at September 27, 2025, according to the prior quarter's release.
Awarded franchises not yet open rose: An additional 82 franchises had been awarded but were not open at year-end, against 77 at September 27, 2025, according to the prior quarter's release. Source

Figures management reported

Figure	Reported
Inventory Source	$362,500

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

763/520-8500

WINMARK CORPORATION ANNOUNCES

YEAR END RESULTS

Minneapolis, MN (February 18, 2026) - Winmark Corporation (Nasdaq: WINA) announced today net income for the year ended December 27, 2025 of $41,654,100 or $11.30 per share diluted compared to net income of $39,954,200 or $10.89 per share diluted in 2024. The fourth quarter 2025 net income was $9,959,900 or $2.69 per share diluted compared to net income of $9,583,100 or $2.60 per share diluted for the same period last year. Revenues for the year ended December 27, 2025 were $86,055,700, up from $81,289,100 in 2024.

“During the year, Winmark made significant investments in marketing, technology, and innovation. We will continue to build a strong foundation in these areas to support our franchisees and enhance our shared business model.” Commented Brett D. Heffes, Chair and Chief Executive Officer.

Winmark - the Resale Company®, is a nationally recognized franchisor focused on sustainability and small business formation. We champion and guide entrepreneurs interested in operating one of our award winning resale franchises: Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. At December 27, 2025, there were 1,378 franchises in operation and over 2,800 available territories. An additional 82 franchises have been awarded but are not open.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to future events or the future financial performance of the Company. Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated. Because actual result may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.

WINMARK CORPORATION

CONDENSED BALANCE SHEETS

	December 27, 2025	December 28, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$10,295,700	$12,189,800
Restricted cash	165,000	140,000
Receivables, net	1,483,500	1,336,400
Income tax receivable	463,600	96,400
Inventories	362,500	397,600
Prepaid expenses	1,325,700	1,205,400
Total current assets	14,096,000	15,365,600
Property and equipment, net	1,219,000	1,419,400
Operating lease right of use asset	1,761,500	2,108,700
Intangible assets, net	2,286,300	2,640,300
Goodwill	607,500	607,500
Other assets	506,400	491,200
Deferred income taxes	4,407,400	4,211,800
	$24,884,100	$26,844,500
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$1,673,900	$1,562,000
Accrued liabilities	2,324,800	1,866,200
Deferred revenue	1,667,300	1,659,700
Total current liabilities	5,666,000	5,087,900
Long-Term Liabilities:
Line of credit/Term loan	30,000,000	30,000,000
Notes payable, net	29,961,000	29,942,800
Deferred revenue	8,350,100	8,027,600
Operating lease liabilities	2,414,200	3,092,800
Other liabilities	2,175,200	1,739,500
Total long-term liabilities	72,900,500	72,802,700
Shareholders’ Equity (Deficit):
Common stock, no par, 10,000,000 shares authorized, 3,571,861 and 3,539,744 shares issued and outstanding	19,612,800	14,790,500
Retained earnings (accumulated deficit)	(73,295,200)	(65,836,600)
Total shareholders’ equity (deficit)	(53,682,400)	(51,046,100)
	$24,884,100	$26,844,500

Winmark Corporation

CONDENSED STATEMENTS OF OPERATIONS

	Quarter Ended		Fiscal Year Ended
	December 27, 2025	December 28, 2024	December 27, 2025	December 28, 2024
Revenue:
Royalties	$19,004,800	$17,642,800	$76,352,800	$72,198,500
Leasing income	230,700	134,500	2,631,800	1,811,800
Merchandise sales	844,300	862,900	3,282,800	3,601,300
Franchise fees	437,800	362,800	1,525,800	1,545,600
Other	568,700	545,100	2,262,500	2,131,900
Total revenue	21,086,300	19,548,100	86,055,700	81,289,100
Cost of merchandise sold	786,300	816,700	3,104,400	3,379,200
Leasing expense	-	-	-	36,600
Provision for credit losses	-	-	-	(1,500)
Selling, general and administrative expenses	7,286,900	5,965,200	28,357,400	24,944,200
Income from operations	13,013,100	12,766,200	54,593,900	52,930,600
Interest expense	(612,900)	(693,600)	(2,446,800)	(2,856,900)
Interest and other income	273,800	295,100	988,500	1,150,300
Income before income taxes	12,674,000	12,367,700	53,135,600	51,224,000
Provision for income taxes	(2,714,100)	(2,784,600)	(11,481,500)	(11,269,800)
Net income	$9,959,900	$9,583,100	$41,654,100	$39,954,200
Earnings per share - basic	$2.79	$2.71	$11.73	$11.36
Earnings per share - diluted	$2.69	$2.60	$11.30	$10.89
Weighted average shares outstanding - basic	3,567,717	3,533,107	3,549,753	3,516,122
Weighted average shares outstanding - diluted	3,702,597	3,679,992	3,685,457	3,667,479

Winmark Corporation

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended
	December 27, 2025	December 28, 2024
OPERATING ACTIVITIES:
Net income	$41,654,100	$39,954,200
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	392,700	445,300
Amortization of intangible assets	354,000	354,000
Provision for credit losses	-	(1,500)
Compensation expense related to stock options	2,283,300	1,988,000
Deferred income taxes	(195,600)	(159,400)
Operating lease right of use asset amortization	347,300	317,100
Tax benefits on exercised stock options	1,619,000	1,307,700
Change in operating assets and liabilities:
Receivables	(147,100)	138,900
Principal collections on lease receivables	-	104,700
Income tax receivable/payable	(1,986,200)	(1,372,800)
Inventories	35,100	(11,500)
Prepaid expenses	(120,300)	186,700
Other assets	(15,200)	(19,900)
Accounts payable	111,700	(157,400)
Accrued and other liabilities	233,900	(1,251,900)
Rents received in advance and security deposits	-	(28,000)
Deferred revenue	330,100	363,700
Net cash provided by operating activities	44,896,800	42,157,900
INVESTING ACTIVITIES:
Purchase of property and equipment	(192,300)	(194,900)
Net cash used for investing activities	(192,300)	(194,900)
FINANCING ACTIVITIES:
Payments on notes payable	-	(9,187,500)
Repurchases of common stock	(2,418,700)	-
Proceeds from exercises of stock options	4,957,800	5,033,700
Dividends paid	(49,112,700)	(38,865,900)
Net cash used for financing activities	(46,573,600)	(43,019,700)
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(1,869,100)	(1,056,700)
Cash, cash equivalents and restricted cash, beginning of period	12,329,800	13,386,500
Cash, cash equivalents and restricted cash, end of period	$10,460,700	$12,329,800
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	$2,415,700	$2,851,000
Cash paid for income taxes	$11,814,700	$11,168,700
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Balance Sheets to the total of the same amounts shown above:
	Year Ended
	December 27, 2025	December 28, 2024
Cash and cash equivalents	$10,295,700	$12,189,800
Restricted cash	165,000	140,000
Total cash, cash equivalents and restricted cash	$10,460,700	$12,329,800

Contacts
Anthony D. Ishaug