Tandy Leather Factory announced its financial results for the third quarter of 2025, showing a slight decline in revenue and a larger net loss compared to the same period last year.

The company’s total revenue for the quarter stood at $17.3 million, down just 0.5% from $17.4 million in 2024.

Gross profit increased slightly to $10.2 million from $10.0 million last year, with gross margins improving to 58.9% from 57.8%.

Tandy Leather reported an operating loss of $700,000 compared to $300,000 in 2024. Net loss widened to $1.4 million versus $100,000 a year earlier.

Operating expenses rose 5.4% to $10.8 million, while adjusted EBITDA stood at negative $400,000.

As of September 30, 2025, the company held $12 million in cash and cash equivalents, up from $10 million last year.

The increase reflects proceeds from the sale of its corporate headquarters earlier this year, offset by a special dividend payment of about $12.7 million and relocation expenses.

Inventory at the end of the quarter totaled $35.9 million, slightly higher than $35.6 million at the end of 2024.

“The move of our headquarters and distribution center during the third quarter was a success & we are happy to now have that behind us. Despite experiencing some anticipated disruptions from the move, we were pleased to generate sales that were in line with the prior year & our year-to-date sales remain ahead of 2024”

Johan Hedberg, Chief Executive Officer, Tandy Leather Factory, Inc.

He added that retail store sales were stronger than last year, though online orders were impacted during the move. With operations now settled at the new location, the company expects a stronger fourth quarter across both retail and online channels.