Cadre Holdings, Inc. (CDRE): Results of Operations and Financial Condition
Cadre Holdings, Inc. (CDRE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Cadre Holdings Reports Second Quarter 2026 Financial Results Grew Quarterly Net Sales 32% and Gross Profit 36% Year-Over-Year Increased Quarterly Adjusted EBITDA and Expanded Adjusted EBITDA Margin Both Sequentially and Year-Over-Year Orders Backlog Increases t
How this was made
The 30-second read
Why it matters
The key tradable update is the raised full-year guidance, reinforced by record orders backlog and improved adjusted EBITDA margin, while cash and net debt moved higher.
Market read
Guidance raise plus record backlog and margin improvement are likely to drive near-term estimate revisions and sentiment, offset by weaker net income and higher leverage.
What to watch
Liquidity deteriorated (cash down, net debt up), so the market may scrutinize leverage and integration costs behind the guidance raise.
Cadre Holdings Reports Second Quarter 2026 Financial Results
Second-quarter net sales, gross profit and Adjusted EBITDA increased year-over-year, gross profit margin and Adjusted EBITDA margin expanded, backlog reached a record $368 million, and the Company raised full-year net sales and Adjusted EBITDA guidance. GAAP net income declined despite the operating improvement.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, second quarterGAAP | $207.1 million | – | 32% |
| Net sales, six months ended June 30GAAP | $362.6 million | – | – |
| Gross profit, second quarterGAAP | $87.1 million | – | 36% |
| Gross profit, six months ended June 30GAAP | $147.3 million | – | – |
| Gross profit margin, second quarterGAAP | 42.1% | – | – |
| Gross profit margin, six months ended June 30GAAP | 40.6% | – | – |
| Net income, second quarterGAAP | $11.4 million | – | – |
| Diluted earnings per share, second quarterGAAP | $0.26 per diluted share | – | – |
| Net income, six months ended June 30GAAP | $13.4 million | – | – |
| Diluted earnings per share, six months ended June 30GAAP | $0.31 per diluted share | – | – |
| Adjusted EBITDA, second quarternon-GAAP | $42.0 million | – | – |
| Adjusted EBITDA margin, second quarternon-GAAP | 20.3% | – | – |
| Adjusted EBITDA, six months ended June 30non-GAAP | $63.1 million | – | – |
| Adjusted EBITDA margin, six months ended June 30non-GAAP | 17.4% | – | – |
| Product segment gross margin, second quarterGAAP | 42.6% | – | – |
| Product segment gross margin, six months ended June 30GAAP | 41.5% | – | – |
| Distribution segment gross margin, second quarterGAAP | 22.8% | – | – |
| Distribution segment gross margin, six months ended June 30GAAP | 21.4% | – | – |
| Capital expenditures, second quarterGAAP | $3.3 million | – | – |
| Capital expenditures, six months ended June 30GAAP | $6.4 million | – | – |
full year 2026 outlook
- Revenuebetween $749 million and $769 million
- Noteadjusted EBITDA of between $139 million and $144 million
- Notecapital expenditures to be in the range of $10 million to $14 million
- NoteCadre has not provided net income guidance
Capital returns
- Declared quarterly cash dividend of $0.10 per share in July 2026.
- $0.40 per share on an annualized basis.
- Dividend payment will be made on August 14, 2026 to shareholders of record as of the close of business on the record date of July 31, 2026.
What drove it
- Second-quarter net sales growth was primarily a result of current year acquisitions and increased demand for nuclear safety, armor, and duty gear products.
- Six-month net sales growth was mainly driven by current and prior year acquisitions, partially offset by lower agency demand for hard goods in the Distribution segment.
- Second-quarter gross profit margin was mainly driven by favorable pricing, partially offset by an increase in inventory step-up amortization.
- The Company completed its acquisition of Alien Gear Holsters and certain assets and liabilities from Tedder Industries, LLC on April 7, 2026.
- Orders backlog increased to a record $368 million, marking a second consecutive quarterly record.
- Predictive Ballistics LLC was awarded a five-year, $61.0 million IDIQ contract by the FBI; Safariland was selected as the ballistic panel provider integrated into Predictive Ballistics LLC's Overt Armor Kit.
Concerns
- Second-quarter net income declined to $11.4 million from $12.2 million, primarily due to increased contingent consideration expense, compensation expense and adverse foreign currency fluctuations, partially offset by increased gross profit.
- Six-month net income declined to $13.4 million from $21.5 million for the same stated reasons.
- Six-month gross profit margin declined to 40.6% from 41.9%.
- Distribution segment gross margin declined in both reported periods.
- Cash and cash equivalents decreased while total debt and net debt increased as of June 30, 2026.
- Lower agency demand for hard goods partially offset six-month sales growth in the Distribution segment.
What to watch
- Execution against full-year 2026 net sales guidance of between $749 million and $769 million.
- Execution against full-year 2026 adjusted EBITDA guidance of between $139 million and $144 million.
- Orders backlog following the record $368 million balance.
- Demand for nuclear safety, armor and duty gear products, and agency demand for Distribution segment hard goods.
- The margin effect of favorable pricing, inventory step-up amortization and the mix of Product and Distribution segment activity.
- Integration of Alien Gear Holsters and the Company's pipeline of complementary, mission-critical businesses.
- Cash, total debt and net debt following their changes from December 31, 2025 to June 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents decreased by $68.9 million from $122.9 million as of December 31, 2025 to $54.0 million as of June 30, 2026.
- Total debt increased by $67.1 million from $307.3 million as of December 31, 2025 to $374.3 million as of June 30, 2026.
- Net debt (total debt net of cash and cash equivalents) increased by $136.0 million from $184.4 million as of December 31, 2025 to $320.3 million as of June 30, 2026.
Analysis
Cadre reported a strong second quarter, with net sales of $207.1 million versus $157.1 million in the prior-year quarter and gross profit of $87.1 million versus $64.2 million. Management attributed sales growth primarily to current year acquisitions and increased demand for nuclear safety, armor and duty gear products. The Company also reported a record orders backlog of $368 million, marking its second consecutive quarterly record, and cited continued momentum entering the second half of the year.
Profitability improved on the principal operating measures. Second-quarter gross profit margin rose to 42.1% from 40.9%, driven mainly by favorable pricing and partly offset by higher inventory step-up amortization. Adjusted EBITDA rose to $42.0 million from $27.0 million and Adjusted EBITDA margin increased to 20.3% from 17.2%. Product segment gross margin improved to 42.6% from 41.7%, while Distribution segment gross margin declined to 22.8% from 23.1%.
GAAP earnings did not follow the improvement in gross profit and Adjusted EBITDA. Second-quarter net income was $11.4 million, compared with $12.2 million in the prior-year quarter, with the decrease attributed to increased contingent consideration expense, compensation expense and adverse foreign currency fluctuations. For the six months ended June 30, 2026, net income was $13.4 million compared with $21.5 million in the prior-year period, while net sales, gross profit and Adjusted EBITDA were higher. Six-month gross profit margin was 40.6%, compared with 41.9% in the prior-year period, and lower agency demand for hard goods partly offset acquisition-led growth in the Distribution segment.
Capital allocation included the April 7, 2026 acquisition of Alien Gear Holsters and a declared quarterly cash dividend of $0.10 per share. The balance sheet reflected cash and cash equivalents of $54.0 million as of June 30, 2026, total debt of $374.3 million and net debt of $320.3 million, each moving unfavorably from December 31, 2025. Capital expenditures totaled $3.3 million in the second quarter and $6.4 million for the six months ended June 30, 2026.
Management raised full-year 2026 guidance to net sales of between $749 million and $769 million and adjusted EBITDA of between $139 million and $144 million, with capital expenditures expected to be in the range of $10 million to $14 million. The release did not provide net income guidance, citing the difficulty of forecasting expenses and gains that affect net income but not adjusted EBITDA. The raised outlook, record backlog and margin expansion are the central positive reported indicators, while the GAAP earnings decline, Distribution segment demand and margin pressure, and increased net debt warrant attention.
Management, verbatim
We delivered outstanding Q2 results that exceeded our expectations, reflecting continued strong demand trends for our mission critical safety equipment, together with consistent execution and the benefits of the Cadre operating model.
Warren Kanders, CEO and Chairman
Net sales, gross profit, and Adjusted EBITDA increased significantly this quarter, with an Adjusted EBITDA margin that improved 310 basis points year-over-year.
Warren Kanders, CEO and Chairman
Our strong year-to-date financial and operational performance, combined with our record orders backlog and continued momentum entering the second half of the year, gives us increased confidence in our outlook.
Warren Kanders, CEO and Chairman
Not in the filing
stated, not guessed- Prior-quarter net sales, gross profit, gross profit margin, net income, diluted earnings per share, Adjusted EBITDA, Adjusted EBITDA margin, Product segment gross margin and Distribution segment gross margin were not reported.
- Prior-year diluted earnings per share for the second quarter and six months ended June 30, 2026 was not reported.
- Operating income and operating margin were not reported in the provided filing text.
- Operating cash flow and free cash flow were not reported in the provided filing text.
- Share repurchases were not reported in the provided filing text.
- Product segment revenue and Distribution segment revenue were not reported in the provided filing text; accordingly, no segment revenue entries are included.
- Prior outlook was not provided, so comparisons of actual results with prior guidance cannot be made.
- Guidance for gross margin, operating expenses and tax rate was not provided.
- A quantitative reconciliation of full-year 2026 adjusted EBITDA guidance to net income guidance was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Cadre filed an 8-K (Item 2.02) with Q2 2026 operating results, liquidity/capital allocation updates, and specific contract and acquisition updates.
Ticker impact
Cadre reported Q2 2026 results and raised full-year guidance to net sales of $749 to $769 million and adjusted EBITDA of $139 to $144 million.
Likely positive near-term bias as guidance and backlog provide fresh fundamentals for earnings revisions.
The filing is a primary disclosure (8-K with results and guidance) and includes multiple quantified improvements (sales, EBITDA, backlog) that typically drive estimate changes.
Market effects
Supports the narrative of resilient demand for mission-critical safety equipment tied to law enforcement and nuclear-related end markets.
Limited, company-specific impact; no broader regional macro signal in the text.
Modest, as the demand drivers cited are tied to US government and defense-related procurement.
Counterpoint
Net income declined year-over-year due to contingent consideration, compensation, and FX, which could temper enthusiasm despite EBITDA strength.
Key entities
- companyCadre Holdings, Inc.
NYSE-listed safety equipment manufacturer reporting Q2 results and raising FY 2026 guidance.
- subsidiarySafariland
Cadre subsidiary selected as the ballistic panel provider for Predictive Ballistics LLC’s Overt Armor Kit under an FBI IDIQ contract.
- customer/partnerPredictive Ballistics LLC
Provider of the Overt Armor Kit system that received a five-year FBI IDIQ contract.
- acquired businessAlien Gear Holsters
Holster and gear manufacturer acquired by Cadre via a court-supervised bankruptcy auction.
