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Sep 27
Winmark Q3 2025 Earnings Report
Winmark reported steady financial performance in Q3 2025 with revenue and income largely in line with the prior year.
Key Takeaways
Winmark delivered consistent earnings in Q3 2025, with net income of $11.1 million and a slight year-over-year increase in revenue driven by royalty income. Despite flat operating income and a small dip in EPS, cash generation remained strong.
Net income remained steady at $11.1 million compared to Q3 2024.
EPS slightly decreased to $3.02 from $3.03 year-over-year.
Total revenue rose to $22.6 million, driven by higher royalties.
Cash and cash equivalents surged to $39.7 million, up from $12.2 million at year-end 2024.
Winmark
Winmark
Winmark Revenue by Segment
Revenue by Segment
Royalties Revenue
CapyFin.comFranchise Fees Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
No explicit quantitative guidance was provided, but the company highlighted its continued emphasis on franchise expansion and capital returns.
Positive Outlook
- Royalty revenue grew year-over-year, reflecting strong franchise performance
- Cash balance significantly increased to $39.7 million
- Operating margin remained strong at over 65%
- Shareholder equity deficit narrowed substantially
- Franchise base grew to 1,377 active stores with 77 more awarded
Challenges Ahead
- Diluted EPS slightly decreased YoY
- Leasing income declined sharply YoY
- Higher SG&A expenses impacted operating leverage
- Merchandise sales dipped slightly
- No new segments of revenue introduced in Q3