MINNEAPOLIS--(BUSINESS WIRE)--Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended September 26, 2026 of $11,818,100 or $3.21 per share diluted compared to net income of $11,136,500 or $3.02 per share diluted in 2025. For the nine months ended September 26, 2026, net income was $31,467,700 or $8.51 per share diluted compared to net income of $31,694,200 or $8.61 per share diluted for the same period last year. 2025 year-to-date results included $2.2 million of leasing income from the settlement of customer litigation.
“During the quarter, Winmark launched the North American Advertising Fund for Plato’s Closet and recently delivered a point-of-sale pilot at one of our franchised locations. Additionally, we have announced North American Advertising Funds for our Once Upon A Child and Play It Again Sports brands for campaigns starting in 2027,” stated Brett D. Heffes, Chair and Chief Executive Officer. “For many years Winmark and our franchisees have underinvested in the marketing necessary to consistently amplify our message across North America. We are taking the appropriate steps to expand awareness of our brands.”
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 September 26, 2026, there were 1,398 franchises in operation and over 2,800 available territories. An additional 79 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 results may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.
WINMARK CORPORATION |
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CONDENSED BALANCE SHEETS |
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(Unaudited) |
||||||||
September 26, 2026 |
December 27, 2025 |
|||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ |
27,964,200 |
$ |
10,295,700 |
||||
Restricted cash |
150,000 |
165,000 |
||||||
Receivables, net |
2,253,300 |
1,483,500 |
||||||
Income tax receivable |
— |
463,600 |
||||||
Inventories |
789,200 |
362,500 |
||||||
Prepaid expenses |
1,447,200 |
1,325,700 |
||||||
Total current assets |
32,603,900 |
14,096,000 |
||||||
Property and equipment, net |
1,214,400 |
1,219,000 |
||||||
Operating lease right of use asset |
1,482,300 |
1,761,500 |
||||||
Intangible assets, net |
2,020,800 |
2,286,300 |
||||||
Capitalized software |
2,272,400 |
— |
||||||
Goodwill |
607,500 |
607,500 |
||||||
Other assets |
528,500 |
506,400 |
||||||
Deferred income taxes |
4,304,900 |
4,407,400 |
||||||
$ |
45,034,700 |
$ |
24,884,100 |
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) |
||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ |
1,824,800 |
$ |
1,673,900 |
||||
Income tax payable |
100,200 |
— |
||||||
Accrued liabilities |
6,612,500 |
2,324,800 |
||||||
Deferred revenue |
1,666,900 |
1,667,300 |
||||||
Total current liabilities |
10,204,400 |
5,666,000 |
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Long-Term Liabilities: |
||||||||
Line of credit/Term loan |
30,000,000 |
30,000,000 |
||||||
Notes payable, net |
29,974,700 |
29,961,000 |
||||||
Deferred revenue |
8,447,400 |
8,350,100 |
||||||
Operating lease liabilities |
1,869,500 |
2,414,200 |
||||||
Other liabilities |
1,936,000 |
2,175,200 |
||||||
Total long-term liabilities |
72,227,600 |
72,900,500 |
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Shareholders’ Equity (Deficit): |
||||||||
Common stock, no par, 10,000,000 shares authorized, 3,559,195 and
|
15,181,700 |
19,612,800 |
||||||
Retained earnings (accumulated deficit) |
(52,579,000 |
) |
(73,295,200 |
) |
||||
Total shareholders’ equity (deficit) |
(37,397,300 |
) |
(53,682,400 |
) |
||||
$ |
45,034,700 |
$ |
24,884,100 |
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WINMARK CORPORATION |
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CONDENSED STATEMENTS OF OPERATIONS |
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(Unaudited) |
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Three Months Ended |
Nine Months Ended |
||||||||||||||||
September 26, 2026 |
September 27, 2025 |
September 26, 2026 |
September 27, 2025 |
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Revenue: |
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Royalties |
$ |
21,707,800 |
$ |
20,911,300 |
$ |
61,087,600 |
$ |
57,348,000 |
|||||||||
North American advertising fund |
3,825,300 |
— |
3,825,300 |
— |
|||||||||||||
Software |
497,100 |
93,100 |
678,900 |
278,900 |
|||||||||||||
Franchise fees |
330,100 |
417,600 |
1,092,500 |
1,088,100 |
|||||||||||||
Merchandise sales |
1,031,500 |
693,600 |
2,544,700 |
2,438,500 |
|||||||||||||
Leasing income |
— |
46,600 |
— |
2,401,100 |
|||||||||||||
Other |
498,700 |
470,700 |
1,477,200 |
1,414,800 |
|||||||||||||
Total revenue |
27,890,500 |
22,632,900 |
70,706,200 |
64,969,400 |
|||||||||||||
North American advertising fund expense |
3,825,300 |
— |
3,825,300 |
— |
|||||||||||||
Cost of merchandise sold |
947,300 |
663,300 |
2,384,200 |
2,318,100 |
|||||||||||||
Selling, general and administrative expenses |
7,332,100 |
7,046,400 |
22,708,200 |
21,070,500 |
|||||||||||||
Income from operations |
15,785,800 |
14,923,200 |
41,788,500 |
41,580,800 |
|||||||||||||
Interest expense |
(610,300 |
) |
(610,300 |
) |
(1,834,000 |
) |
(1,833,900 |
) |
|||||||||
Interest and other income |
242,100 |
310,300 |
516,500 |
714,800 |
|||||||||||||
Income before income taxes |
15,417,600 |
14,623,200 |
40,471,000 |
40,461,700 |
|||||||||||||
Provision for income taxes |
(3,599,500 |
) |
(3,486,700 |
) |
(9,003,300 |
) |
(8,767,500 |
) |
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Net income |
$ |
11,818,100 |
$ |
11,136,500 |
$ |
31,467,700 |
$ |
31,694,200 |
|||||||||
Earnings per share - basic |
$ |
3.29 |
$ |
3.13 |
$ |
8.79 |
$ |
8.94 |
|||||||||
Earnings per share - diluted |
$ |
3.21 |
$ |
3.02 |
$ |
8.51 |
$ |
8.61 |
|||||||||
Weighted average shares outstanding - basic |
3,588,328 |
3,553,211 |
3,581,906 |
3,543,766 |
|||||||||||||
Weighted average shares outstanding - diluted |
3,685,668 |
3,693,154 |
3,697,251 |
3,679,745 |
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WINMARK CORPORATION |
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CONDENSED STATEMENTS OF CASH FLOWS |
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(Unaudited) |
|||||||
Nine Months Ended |
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September 26, 2026 |
September 27, 2025 |
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OPERATING ACTIVITIES: |
|||||||
Net income |
$ |
31,467,700 |
$ |
31,694,200 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation of property and equipment |
281,300 |
295,500 |
|||||
Amortization of intangible assets |
265,500 |
265,500 |
|||||
Compensation expense related to stock options |
1,917,200 |
1,666,900 |
|||||
Deferred income taxes |
102,600 |
160,100 |
|||||
Operating lease right of use asset amortization |
279,200 |
252,700 |
|||||
Tax benefits on exercised stock options |
898,800 |
1,091,900 |
|||||
Change in operating assets and liabilities: |
|||||||
Receivables |
(769,800) |
(316,500) |
|||||
Income tax receivable/payable |
(335,000) |
(998,500) |
|||||
Inventories |
(426,700) |
113,900 |
|||||
Prepaid expenses |
(121,600) |
(44,500) |
|||||
Other assets |
(22,100) |
(5,000) |
|||||
Accounts payable |
150,900 |
(188,800) |
|||||
Accrued and other liabilities |
1,763,500 |
2,054,900 |
|||||
Deferred revenue |
96,900 |
331,500 |
|||||
Net cash provided by operating activities |
35,548,400 |
36,373,800 |
|||||
INVESTING ACTIVITIES: |
|||||||
Capitalized software |
(2,272,400) |
— |
|||||
Purchase of property and equipment |
(276,700) |
(172,700) |
|||||
Net cash used for investing activities |
(2,549,100) |
(172,700) |
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FINANCING ACTIVITIES: |
|||||||
Repurchases of common stock |
(8,091,600) |
(2,418,700) |
|||||
Proceeds from exercises of stock options |
3,497,200 |
3,754,000 |
|||||
Dividends paid |
(10,751,400) |
(9,991,400) |
|||||
Net cash used for financing activities |
(15,345,800) |
(8,656,100) |
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NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
17,653,500 |
27,545,000 |
|||||
Cash, cash equivalents and restricted cash, beginning of period |
10,460,700 |
12,329,800 |
|||||
Cash, cash equivalents and restricted cash, end of period |
$ |
28,114,200 |
$ |
39,874,800 |
|||
SUPPLEMENTAL DISCLOSURES: |
|||||||
Cash paid for interest |
$ |
1,802,900 |
$ |
1,815,500 |
|||
Cash paid for income taxes |
$ |
8,210,800 |
$ |
8,514,100 |
|||
SUPPLEMENTAL NONCASH FINANCING ACTIVITIES |
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During the nine months ended September 26, 2026, the Company repurchased $9.85 million of its common stock under its share repurchase program. At September 26, 2026, $1.75 million of such repurchases was included in Accrued liabilities within the Condensed Balance Sheets. Cash payments for repurchased shares during the quarter totaled $8.10 million. |
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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: |
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Nine Months Ended |
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September 26, 2026 |
September 27, 2025 |
||||||
Cash and cash equivalents |
$ |
27,964,200 |
$ |
39,734,800 |
|||
Restricted cash |
150,000 |
140,000 |
|||||
Total cash, cash equivalents and restricted cash |
$ |
28,114,200 |
$ |
39,874,800 |
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