Tandy Leather Factory reported its financial results for the first quarter of 2026 with revenue rising 3.2% year-on-year to $19.7 million. The company also posted higher operating income and improved gross margins during the quarter.
Tandy Leather generated operating income of $0.4 million compared to $0.3 million in the same period last year. Gross margins increased to 61.0% from 56.3% in 2025, while gross profit rose to $12.0 million from $10.7 million.
Net income stood at $0.2 million against $11.6 million in the previous year. The company said the earlier figure included gains from the sale of its headquarters. Basic and diluted net income per share came in at $0.03 compared to $1.36 basic and $1.35 diluted net income per share last year.
Operating expenses increased 11.2% year-on-year to $11.6 million. EBITDA from operations reached $0.7 million during the quarter.
As of March 31, 2026, the company held $10.1 million in cash and cash equivalents, down from $16.1 million a year earlier. Tandy Leather Factory said the decline reflected a special dividend payment of around $6.1 million to shareholders, income tax payments linked to the 2025 headquarters sale and expenses related to relocating its headquarters in the third quarter of 2025.
Inventory increased to $33.7 million from $33.2 million as of December 31, 2025.
“We are happy to have delivered another growth quarter with increases in sales and operating income from the year-ago quarter & we were also able to increase our gross margins, primarily driven by pricing changes. Although our operating expenses rose from a year ago, driven by compensation, investments in Operations & technology & occupancy costs including increased rent for now renting our headquarters, our increased sales & margins were able to offset that & deliver more profit from operations.”
– Johan Hedberg, CEO, Tandy Leather Factory
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