Cadre Holdings Reports Third Quarter 2026 Financial Results
Cadre Holdings, Inc. (CDRE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Cadre Holdings Reports Third Quarter 2026 Financial Results Grew Quarterly Net Sales 30% and Net Income 46% Year-Over-Year Increased Quarterly Adjusted EBITDA of $41.1 Million and Expanded Adjusted EBITDA Margin of 20.2% Raises Full-Year 2026 Guidance for Secon
Facts are quoted from the filing text and checked against it.
How this was made
The 30-second read
Why it matters
The earnings beat, raised guidance, and $100M buyback program collectively provide a strong bullish catalyst for the stock.
Market read
Cadre's strong quarter and upgraded outlook could lift peer companies in the defense and safety‑equipment space.
What to watch
Higher debt levels and cash burn may limit upside if earnings miss future expectations.
Cadre reported third-quarter net sales of $202.9 million, net income of $16.0 million, and Adjusted EBITDA of $41.1 million, raised full-year 2026 guidance, and authorized a $100 million stock repurchase program.
Third-quarter net sales increased 30%, net income increased 46%, Adjusted EBITDA margin expanded to 20.2%, and the Company raised full-year 2026 sales and Adjusted EBITDA guidance for the second consecutive quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $202.9M | – | 30% |
| Net sales, nine months ended September 30, 2026GAAP | $565.4M | – | – |
| Cost of goods sold, three months ended September 30, 2026GAAP | $114.8M | – | – |
| Cost of goods sold, nine months ended September 30, 2026GAAP | $330.0M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $88.1M | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $235.4M | – | – |
| Gross profit margin, three months ended September 30, 2026GAAP | 43.4% | – | – |
| Gross profit margin, nine months ended September 30, 2026GAAP | 41.6% | – | – |
| Selling, general and administrative expense, three months ended September 30, 2026GAAP | $58.88M | – | – |
| Selling, general and administrative expense, nine months ended September 30, 2026GAAP | $170.9M | – | – |
| Restructuring and transaction costs, three months ended September 30, 2026GAAP | $863K | – | – |
| Restructuring and transaction costs, nine months ended September 30, 2026GAAP | $4.16M | – | – |
| Related party expense, three months ended September 30, 2026GAAP | — | – | – |
| Related party expense, nine months ended September 30, 2026GAAP | $2,000 | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $59.74M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $177.1M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $28.35M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $58.30M | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | −$5.41M | – | – |
| Interest expense, net, nine months ended September 30, 2026GAAP | −$14.70M | – | – |
| Other income (expense), net, three months ended September 30, 2026GAAP | $984K | – | – |
| Other income (expense), net, nine months ended September 30, 2026GAAP | $66K | – | – |
| Income before provision for income taxes, three months ended September 30, 2026GAAP | $23.93M | – | – |
| Income before provision for income taxes, nine months ended September 30, 2026GAAP | $43.67M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | −$7.95M | – | – |
| Provision for income taxes, nine months ended September 30, 2026GAAP | −$14.31M | – | – |
| Net income, three months ended September 30, 2026GAAP | $16M | – | 46% |
| Net income, nine months ended September 30, 2026GAAP | $29.4M | – | – |
| Diluted net income per share, three months ended September 30, 2026GAAP | $0.37 | – | – |
| Diluted net income per share, nine months ended September 30, 2026GAAP | $0.68 | – | – |
| Basic net income per share, three months ended September 30, 2026GAAP | $0.37 | – | – |
| Basic net income per share, nine months ended September 30, 2026GAAP | $0.69 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $41.1M | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $104.2M | – | – |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 20.2% | – | 110 basis points |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 18.4% | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $67.58M | – | – |
| Capital expenditures, three months ended September 30, 2026GAAP | $2.9M | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | $9.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product, three months ended September 30, 2026Product segment gross profit margin was 43.7%, compared to 43.9% for the prior year period. | $188.7M | – | – |
| Distribution, three months ended September 30, 2026Distribution segment gross profit margin was 23.4%, compared to 21.3% for the prior year period. | $23.63M | – | – |
| Product, nine months ended September 30, 2026Product segment gross profit margin was 42.3%, compared to 43.3% for the prior year period. | $519.4M | – | – |
| Distribution, nine months ended September 30, 2026Distribution segment gross profit margin was 22.1%, compared to 22.0% for the prior year period. | $71.03M | – | – |
Full-year 2026 outlook
- Revenuebetween $756 million and $769 million
- NoteAdjusted EBITDA: between $140 million and $144 million
- NoteCapital expenditures: in the range of $11 million to $14 million
- NoteThe Company has not provided net income guidance.
Capital returns
- Declared quarterly cash dividend of $0.10 per share in October 2026.
- The dividend is $0.40 per share on an annualized basis.
- Dividend payment will be made on November 13, 2026 to shareholders of record as of the close of business on October 30, 2026.
- On November 4, 2026, the board authorized a share repurchase program for up to an aggregate of $100 million of common stock.
- Dividends distributed were $(12,844) for the nine months ended September 30, 2026, compared with $(11,584) for the nine months ended September 30, 2025.
What drove it
- Third-quarter sales growth was primarily driven by current-year acquisitions and increased demand for EOD products.
- Nine-month sales growth was mainly driven by current- and prior-year acquisitions and higher demand for EOD, crowd control and chemiluminescent products.
- Third-quarter gross profit margin was mainly driven by favorable pricing, partially offset by unfavorable operating leverage.
- Management cited manufacturing productivity, sourcing and pricing discipline, overhead efficiency, and AI initiatives targeting repetitive workflows, improved decision-making and more efficient scaling.
- Management cited heightened geopolitical uncertainty, evolving public-safety requirements, and investment in nuclear infrastructure as demand drivers.
Concerns
- Nine-month net income was $29.4 million versus $32.4 million for the prior year period, with acquisition operating expenses, increased compensation expense, interest expense, and adverse foreign currency fluctuations cited as drivers.
- Total debt increased to $369.5 million and net debt increased to $305.6 million as of September 30, 2026.
- Nine-month gross profit margin was 41.6%, compared to 42.2% for the prior year period.
- Product segment gross profit margin was 43.7% in the third quarter and 42.3% for the nine-month period, compared to 43.9% and 43.3%, respectively, for the prior year periods.
What to watch
- Delivery against full-year 2026 net sales guidance of between $756 million and $769 million.
- Delivery against full-year 2026 Adjusted EBITDA guidance of between $140 million and $144 million.
- Capital expenditures against the expected range of $11 million to $14 million.
- The pace of acquisitions, their impact on debt and net debt, and the application of the Cadre Operating Model across acquired businesses.
- Execution of the up to $100 million share repurchase program and future dividend declarations.
Balance sheet and cash flow
- Cash and cash equivalents were $63.9 million as of September 30, 2026, down $59.0 million from $122.9 million as of December 31, 2025.
- Total debt was $369.5 million as of September 30, 2026, up $62.2 million from $307.3 million as of December 31, 2025.
- Net debt was $305.6 million as of September 30, 2026, up $121.2 million from $184.4 million as of December 31, 2025.
- Net cash used in investing activities was $(174,623) for the nine months ended September 30, 2026, compared with $(93,166) for the nine months ended September 30, 2025.
- Business acquisitions, net of cash acquired, were $(164,769) for the nine months ended September 30, 2026, compared with $(89,590) for the nine months ended September 30, 2025.
- Net cash provided by financing activities was $50,126 for the nine months ended September 30, 2026, compared with $75,352 for the nine months ended September 30, 2025.
Analysis
Cadre delivered strong third-quarter growth, with net sales of $202.9 million versus $155.9 million and net income of $16.0 million versus $10.9 million. The Company attributed sales growth primarily to current-year acquisitions and increased demand for EOD products. For the nine-month period, net sales increased to $565.4 million from $443.1 million, supported by current- and prior-year acquisitions and demand for EOD, crowd control and chemiluminescent products.
Profitability improved in the quarter. Gross profit margin was 43.4%, compared with 42.7%, with favorable pricing partly offset by unfavorable operating leverage. Adjusted EBITDA was $41.1 million versus $29.8 million, while Adjusted EBITDA margin was 20.2% versus 19.1%. The nine-month margin picture was also favorable on an adjusted basis, with Adjusted EBITDA margin at 18.4% versus 17.4%, although GAAP gross profit margin was 41.6% versus 42.2%.
The nine-month results show the cost of acquisitions and financing. Net income was $29.4 million compared with $32.4 million in the prior year period, as acquisition operating expenses, increased compensation expense, interest expense and adverse foreign currency fluctuations more than offset increased gross profit. Total debt reached $369.5 million and net debt reached $305.6 million as of September 30, 2026. Net cash provided by operating activities was $67,585, while business acquisitions, net of cash acquired, totaled $(164,769).
Capital allocation included both shareholder returns and continued acquisition funding. The Company declared a quarterly cash dividend of $0.10 per share and authorized an inaugural repurchase program of up to $100 million. It also raised full-year 2026 guidance to net sales of between $756 million and $769 million and Adjusted EBITDA of between $140 million and $144 million. Management is targeting further operating-margin expansion through manufacturing productivity, sourcing, pricing discipline, overhead efficiency and AI initiatives.
Management, verbatim
Our third-quarter results reflect strong execution across Cadre’s businesses, with double-digit organic growth and contributions from acquisitions driving a 30% increase in sales.
Warren Kanders, CEO and Chairman
Net income increased 46% and Adjusted EBITDA margin expanded 110 basis points to 20.2%.
Warren Kanders, CEO and Chairman
Heightened geopolitical uncertainty, evolving public-safety requirements and investment in nuclear infrastructure create enduring demand drivers for our mission-critical products.
Warren Kanders, CEO and Chairman
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Prior-quarter comparatives were not reported for the operating metrics.
- Free cash flow was not reported.
- Full-year 2026 guidance for gross margin, operating expenses and tax rate was not provided.
- Full-year 2026 GAAP net income guidance was not provided.
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 is checked against the filing text, and a metric the filing does not print, or 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
Cadre Holdings (NYSE:CDRE) is a manufacturer of safety equipment for law‑enforcement and military markets.
Ticker impact
Cadre Holdings reported Q3 2026 results, raised full-year guidance and announced a $100M share repurchase program.
likely upward pressure as investors price in higher guidance and buyback support
Revenue and EBITDA grew YoY, guidance was raised, and a sizable repurchase program was launched, all of which are bullish catalysts.
Market effects
Safety‑equipment sector may see broader optimism as Cadre's results highlight demand growth.
U.S. investors may allocate more to industrial and defense‑related stocks.
Limited to firms with similar government‑contract exposure.
Counterpoint
If the raised guidance is already priced in, the stock could face a short‑term pullback.
Key entities
- ExecutiveWarren Kanders
CEO and Chairman of Cadre Holdings
