SharkNinja, Inc. Q4 FY2025 earnings call

• 2025 ended on a high note with broad-based strength across product categories, geographies, and channels. Fourth quarter and full year performance reflected consumers' love for Shark and Ninja products and the company's ability to meet consumers where they are. - Diversification is the core driver of success, including consumer diversification (reaching broader demographics and generating deeper insights), supply chain diversification (nearly 100% of US volume manufactured outside China), marketing diversification (expanding reach and engagement, with social media growth), and go-to-market and investment diversification. - Three-pillar growth strategy: 1. Expansion into new and adjacent categories: Entered two subcategories in 2025 and plans to add two more in 2026, with examples like Shark Beauty emerging as a leader. 2. Growing share in existing categories: Continued innovation in categories like cleaning, cooking, etc. 3. International expansion: 2025 saw strong performance, with plans to further convert to direct operating models in more countries and expand reach in regions like Latin America.

In the fourth quarter, net sales increased 17.6% year over year to $2.1 billion. Domestically, net sales rose 15.7% to over $1.37 billion. Internationally, net sales were $729 million, up 21.4%. By category: Cleaning category net sales increased 3.4% year over year to $670 million. Cooking and beverage category net sales grew 11.7% year over year to $667 million. Food preparation category net sales saw a 28.1% year-over-year increase to $438 million. Beauty and home environment category net sales rose 3.2% year over year to $326 million.

• For full year 2026, expect net sales to increase between 10-11%. - Adjusted net income per diluted share to be in the range of $5.90 to $6.00, an increase of 12% to 14% year over year. - Adjusted EBITDA to be in the range of $1.27 billion to $1.28 billion, representing growth of 12% to 13% year over year. - Net interest expense to be flat relative to 2025. - GAAP effective tax rate to be approximately 22% to 23%. - Capital expenditures to be between $190 million to $210 million for the year.

• Macro-economic uncertainties that could impact the business. - Tariff-related headwinds that are manifesting in the P&L, which could affect gross margins and overall financial performance.

Q: Brooke Roach with Goldman Sachs asked about the appropriate medium-term growth algorithm for the US business and contribution of units vs price in 2026.

A: Mark Barrocas said the US business is a double-digit growth business, expecting to continue momentum into 2026 with support from D2C and retailer partners.

Q: Steven Forbes with Guggenheim inquired about international segment growth profile evolution as we work through 2026.

A: Adam Quigley and Mark Barrocas responded that international continues to grow faster than domestic, with strong momentum in LatAm and EMEA, and plans to normalize after transition impacts in Q1 and Q2.

Q: Jonah Kim with TD Cohen asked about the customers acquired to the Shark brand through beauty and distribution opportunity in beauty.

A: Mark Barrocas said beauty attracts a younger demographic, including young males, is enlarging the market, and has potential in areas like scalp, nails, and wellness.

Q: Andrew Tadora with Bank of America asked about success of celebrity campaigns and impact of sales and marketing efforts on gross margins.

A: Mark Barrocas talked about becoming part of culture through celebrity partnerships and demand generation, while Adam Quigley said sales and marketing has leverage from media optimization and global campaigns, and there are gross margin headwinds from tariffs in 2026 first half with offsets from cost optimization.

Q: Phillip Blee with William Blair asked about momentum flowing into first quarter and first half, lapping retailer stockpiling, and sales and marketing line's impact.

A: Mark Barrocas said US growth should be sustainable in double digits, and Adam Quigley discussed sales and marketing line having moving pieces with optimization efforts allowing leverage.

Q: Rupesh Parikh with Oppenheimer asked about consumer category backdrop and impact of US market stimulus.

A: Mark Barrocas said consumer is expected to be flat, and the company needs to earn consumer dollars by making great products at good value