WINMARK CORPORATION ANNOUNCES THIRD QUARTER RESULTS
WINMARK CORP (WINA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Contact: Anthony D. Ishaug 763/520-8500 FOR IMMEDIATE RELEASE WINMARK CORPORATION ANNOUNCES THIRD QUARTER RESULTS Minneapolis, MN (October 14, 2026) - Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended September 26, 2026
How this was made
The 30-second read
Why it matters
The Q3 earnings release provides fresh financial metrics and signals strategic marketing investments.
Market read
First‑report earnings data for a mid‑cap franchise operator; relevant for traders tracking consumer discretionary earnings season.
What to watch
Potential headwinds from franchisee under‑investment and competitive pressure in resale market.
Winmark Corporation announces third quarter results
Third-quarter total revenue, operating income, net income and diluted earnings per share were higher than the prior-year quarter. Nine-month net income and diluted earnings per share were below the prior-year period, which included $2.2 million of leasing income from the settlement of customer litigation.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenueGAAP | $27,890,500 | – | – |
| Nine months 2026 total revenueGAAP | $70,706,200 | – | – |
| Q3 2026 North American advertising fund expenseGAAP | $3,825,300 | – | – |
| Nine months 2026 North American advertising fund expenseGAAP | $3,825,300 | – | – |
| Q3 2026 cost of merchandise soldGAAP | $947,300 | – | – |
| Nine months 2026 cost of merchandise soldGAAP | $2,384,200 | – | – |
| Q3 2026 selling, general and administrative expensesGAAP | $7,332,100 | – | – |
| Nine months 2026 selling, general and administrative expensesGAAP | $22,708,200 | – | – |
| Q3 2026 income from operationsGAAP | $15,785,800 | – | – |
| Nine months 2026 income from operationsGAAP | $41,788,500 | – | – |
| Q3 2026 interest expenseGAAP | $(610,300) | – | – |
| Nine months 2026 interest expenseGAAP | $(1,834,000) | – | – |
| Q3 2026 interest and other incomeGAAP | $242,100 | – | – |
| Nine months 2026 interest and other incomeGAAP | $516,500 | – | – |
| Q3 2026 income before income taxesGAAP | $15,417,600 | – | – |
| Nine months 2026 income before income taxesGAAP | $40,471,000 | – | – |
| Q3 2026 provision for income taxesGAAP | $(3,599,500) | – | – |
| Nine months 2026 provision for income taxesGAAP | $(9,003,300) | – | – |
| Q3 2026 net incomeGAAP | $11,818,100 | – | – |
| Nine months 2026 net incomeGAAP | $31,467,700 | – | – |
| Q3 2026 earnings per share - basicGAAP | $3.29 | – | – |
| Nine months 2026 earnings per share - basicGAAP | $8.79 | – | – |
| Q3 2026 earnings per share - dilutedGAAP | $3.21 | – | – |
| Nine months 2026 earnings per share - dilutedGAAP | $8.51 | – | – |
| Q3 2026 weighted average shares outstanding - basicGAAP | 3,588,328 | – | – |
| Nine months 2026 weighted average shares outstanding - basicGAAP | 3,581,906 | – | – |
| Q3 2026 weighted average shares outstanding - dilutedGAAP | 3,685,668 | – | – |
| Nine months 2026 weighted average shares outstanding - dilutedGAAP | 3,697,251 | – | – |
| Nine months 2026 net cash provided by operating activitiesGAAP | $35,548,400 | – | – |
| Nine months 2026 net cash used for investing activitiesGAAP | $(2,549,100) | – | – |
| Nine months 2026 net cash used for financing activitiesGAAP | $(15,345,800) | – | – |
| Nine months 2026 net increase in cash, cash equivalents and restricted cashGAAP | $17,653,500 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 RoyaltiesNot stated in the filing. | $21,707,800 | – | – |
| Nine months 2026 RoyaltiesNot stated in the filing. | $61,087,600 | – | – |
| Q3 2026 North American advertising fundWinmark launched the North American Advertising Fund for Plato’s Closet. | $3,825,300 | – | – |
| Nine months 2026 North American advertising fundWinmark launched the North American Advertising Fund for Plato’s Closet. | $3,825,300 | – | – |
| Q3 2026 SoftwareThe company recently delivered a point-of-sale pilot at one franchised location. | $497,100 | – | – |
| Nine months 2026 SoftwareThe company recently delivered a point-of-sale pilot at one franchised location. | $678,900 | – | – |
| Q3 2026 Franchise feesNot stated in the filing. | $330,100 | – | – |
| Nine months 2026 Franchise feesNot stated in the filing. | $1,092,500 | – | – |
| Q3 2026 Merchandise salesNot stated in the filing. | $1,031,500 | – | – |
| Nine months 2026 Merchandise salesNot stated in the filing. | $2,544,700 | – | – |
| Q3 2026 Leasing incomeNot stated in the filing. | — | – | – |
| Nine months 2026 Leasing income2025 year-to-date results included $2.2 million of leasing income from the settlement of customer litigation. | — | – | – |
| Q3 2026 Other revenueNot stated in the filing. | $498,700 | – | – |
| Nine months 2026 Other revenueNot stated in the filing. | $1,477,200 | – | – |
Capital returns
- 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.
- Cash payments for repurchased shares during the quarter totaled $8.10 million.
- Nine months 2026 repurchases of common stock: $(8,091,600), compared with $(2,418,700).
- Nine months 2026 dividends paid: $(10,751,400), compared with $(9,991,400).
What drove it
- The North American Advertising Fund for Plato’s Closet generated $3,825,300 of revenue in the third quarter and nine-month period, with an equal $3,825,300 of advertising fund expense reported in each period.
- Royalties were $21,707,800 in the quarter and $61,087,600 for the nine months.
- Winmark recently delivered a point-of-sale pilot at one franchised location.
- At September 26, 2026, there were 1,398 franchises in operation and over 2,800 available territories. An additional 79 franchises had been awarded but were not open.
- The company announced North American Advertising Funds for Once Upon A Child and Play It Again Sports brands for campaigns starting in 2027.
Concerns
- Nine-month net income was $31,467,700 compared with $31,694,200 for the same period last year.
- Nine-month diluted earnings per share was $8.51 compared with $8.61 for the same period last year.
- 2025 year-to-date results included $2.2 million of leasing income from the settlement of customer litigation, while nine-month 2026 leasing income was — compared with $2,401,100.
- Cash and cash equivalents were $27,964,200 at September 26, 2026, compared with $39,734,800 at September 27, 2025.
- Selling, general and administrative expenses were $22,708,200 for the nine months compared with $21,070,500.
What to watch
- Execution of the Plato’s Closet North American Advertising Fund and the planned Once Upon A Child and Play It Again Sports campaigns starting in 2027.
- Development of the recently delivered point-of-sale pilot at a franchised location.
- Royalties, which were $21,707,800 in the third quarter and $61,087,600 for the nine months.
- The pace of franchise development, with 1,398 franchises operating, over 2,800 available territories and 79 awarded franchises not yet open.
- Share repurchases and dividends relative to cash generation and $30,000,000 of line of credit/Term loan obligations.
Balance sheet and cash flow
- Cash and cash equivalents at September 26, 2026: $27,964,200; December 27, 2025: $10,295,700.
- Restricted cash at September 26, 2026: $150,000; December 27, 2025: $165,000.
- Total cash, cash equivalents and restricted cash at September 26, 2026: $28,114,200; September 27, 2025: $39,874,800.
- Line of credit/Term loan at September 26, 2026: $30,000,000; December 27, 2025: $30,000,000.
- Notes payable, net at September 26, 2026: $29,974,700; December 27, 2025: $29,961,000.
- Total long-term liabilities at September 26, 2026: $72,227,600; December 27, 2025: $72,900,500.
- Total shareholders’ equity (deficit) at September 26, 2026: $(37,397,300); December 27, 2025: $(53,682,400).
- Capitalized software during the nine months ended September 26, 2026: $(2,272,400); September 27, 2025: —.
- Purchase of property and equipment during the nine months ended September 26, 2026: $(276,700); September 27, 2025: $(172,700).
- Cash paid for interest during the nine months ended September 26, 2026: $1,802,900; September 27, 2025: $1,815,500.
- Cash paid for income taxes during the nine months ended September 26, 2026: $8,210,800; September 27, 2025: $8,514,100.
Analysis
Winmark reported third-quarter total revenue of $27,890,500, compared with $22,632,900 in the prior-year quarter. Royalties were $21,707,800 compared with $20,911,300, while the newly launched North American advertising fund contributed $3,825,300 of revenue. Software revenue was $497,100 compared with $93,100, and merchandise sales were $1,031,500 compared with $693,600. Franchise fees were $330,100 compared with $417,600.
The advertising-fund revenue was matched by $3,825,300 of North American advertising fund expense. Selling, general and administrative expenses were $7,332,100 compared with $7,046,400, and cost of merchandise sold was $947,300 compared with $663,300. Income from operations was $15,785,800 compared with $14,923,200. Net income was $11,818,100, or $3.21 per diluted share, compared with $11,136,500, or $3.02 per diluted share.
For the nine months, total revenue was $70,706,200 compared with $64,969,400, and income from operations was $41,788,500 compared with $41,580,800. Nine-month net income was $31,467,700, or $8.51 per diluted share, compared with $31,694,200, or $8.61 per diluted share. The filing identifies $2.2 million of leasing income from the settlement of customer litigation in 2025 year-to-date results; leasing income was — in the 2026 nine-month period compared with $2,401,100 in the prior-year period.
Operating cash flow for the nine months was $35,548,400 compared with $36,373,800. Investing cash use was $(2,549,100), including $(2,272,400) of capitalized software. Financing cash use was $(15,345,800), including $(8,091,600) of repurchases of common stock and $(10,751,400) of dividends paid, offset in part by $3,497,200 of stock-option exercise proceeds. Cash and cash equivalents were $27,964,200 at September 26, 2026, while line of credit/Term loan obligations were $30,000,000 and notes payable, net were $29,974,700.
Management emphasized increased marketing investment through the Plato’s Closet advertising fund and announced future advertising funds for Once Upon A Child and Play It Again Sports campaigns starting in 2027. The company also cited delivery of a point-of-sale pilot at one franchised location. The filing reported 1,398 operating franchises, over 2,800 available territories and 79 awarded but unopened franchises. No financial guidance was provided.
Management, verbatim
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.
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.
Brett D. Heffes, Chair and Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-period outlook was not provided, so comparison with prior guidance is unavailable.
- Gross profit and gross margin were not reported.
- Non-GAAP financial measures were not reported.
- Free cash flow was not reported.
- A quarterly balance sheet cash-flow statement was not reported.
- Sequential quarter-over-quarter comparisons were not reported.
- Percentage year-over-year changes were not reported for the financial statement line items.
- Tax rate was not reported.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
Winmark Corp is a franchisor of resale stores such as Plato’s Closet and Once Upon A Child.
Ticker impact
Winmark Corp reported Q3 net income of $11.8M, EPS $3.21, up from $11.1M and $3.02 a year ago.
potential modest upside as investors price in higher earnings and expanded marketing spend
Quarterly results exceed prior year and cash balance rose sharply, supporting a short‑term bullish bias.
Market effects
Resale franchise sector may see modest uplift from Winmark's advertising fund launches.
U.S. small‑cap market could experience slight buying pressure.
Limited; impact confined to U.S. franchise and consumer discretionary investors.
Counterpoint
The earnings beat is marginal; higher cash may mask underlying franchise growth challenges.
Key entities
- ExecutiveBrett D. Heffes
Chair and CEO of Winmark Corp, quoted on advertising fund launches.
