Q2 2026 Sharkninja Inc Earnings Call Transcript
Key Points
- SharkNinja Inc (SN) delivered its 13th consecutive quarter of double-digit net sales growth, accelerating to over 22% year-over-year growth in Q2 2026, its fastest rate since Q4 2024.
- International net sales surged nearly 37% year-over-year, driven by broad-based strength across the UK, Europe, and Latin America, with the UK growing 18.7%.
- The company raised its full-year 2026 guidance significantly, now expecting net sales growth of 16% to 17% and adjusted EPS of $6.45 to $6.55, up from prior guidance.
- SharkNinja Inc (SN) is expanding into new categories, such as the Ninja Crispy Microwave, which enters a multibillion-dollar TAM, and plans to launch its 41st subcategory in Q3.
- The company is successfully leveraging social commerce, with TikTok Shop live in seven countries and a goal to more than double that number by the holiday season, driving new customer acquisition.
- Adjusted EPS grew nearly 30% year-over-year in Q2, marking growth in excess of 23% for 11 of the last 12 quarters, demonstrating strong earnings compounding.
- SharkNinja Inc (SN) received a $247.1 million tariff refund from US Customs and Border Protection, providing a significant cash flow and earnings benefit for 2026.
- The company's core business is thriving, with continuous innovation in existing categories like cleaning and blending, evidenced by strong growth in the cooking and beverage category (up 36.5%).
- SharkNinja Inc (SN) is making strategic investments in AI, partnering with Palantir and AWS to optimize promotions and media, which is expected to drive operating expense leverage in 2027.
- The company completed its international go-to-market transformation, including direct-to-consumer platform rollouts and distributor conversions, unlocking future growth potential in EMEA.
- Adjusted gross margin decreased approximately 70 basis points year-over-year to 48.7% in Q2, primarily due to the annualization impact of 2025 tariffs.
- Adjusted EBITDA growth of 18.6% slightly trailed net sales growth in Q2 due to tariff headwinds, resulting in a 50 basis point decline in adjusted EBITDA margin to 15%.
- The Canadian business experienced a 17% decline in Q2 as the company flowed through remaining changes, negatively impacting overall domestic growth.
- The company noted that fans sold out during the quarter, unable to capture all the demand, representing a missed sales opportunity in the short term.
- SharkNinja Inc (SN) is facing ongoing tariff pressures, with updated assumptions including a recent increase from 10% to 12.5% for China, Vietnam, and Thailand.
- The company is choosing to reinvest a portion of the tariff refund benefit in targeted areas like retail activation, media, and AI capabilities, which may temper near-term margin expansion.
- GAAP general and administrative expenses increased 40.8% year-over-year, largely due to an increase in share-based compensation, which could be a concern for investors.
- The transition to direct markets in Italy and Spain, along with the Salesforce DTC platform rollout, caused some temporary disruptions and blips in Q2 performance.
- Inventory levels remain elevated at $1.14 billion, up 8.6% year-over-year, as the company laps large tariff pre-builds from late 2024 and early 2025.
- The company's growth is partly dependent on the success of viral products and social commerce trends, which could be less predictable and more volatile than traditional retail channels.
Hello, everyone. Thank you for joining us and welcome to the Shark Ninja Second Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to James Lam, Senior Vice President of Investor Relations and Treasury. James, please go ahead.
Good morning, and welcome to Shark Ninja's second quarter 2026 earnings conference call. Earlier today, we issued our Q2 earnings release, which is available on the company's website at ir.sharkninja.com. A replay of today's webcast will also be available on the site shortly after the call.
Before we begin, let me remind you that today's discussion will include forward-looking statements based on our current perspective of the business environment. These statements involve risks and uncertainties and actual results may differ materially. For
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