yeti-20260704

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________________________

FORM 10-Q

____________________________________________________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 4, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-38713

_____________________________________________________

YETI Holdings, Inc.

(Exact name of registrant as specified in its charter)

______________________________________________________


Delaware						45-5297111
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

7601 Southwest Parkway

Austin, Texas 78735

(Address of principal executive offices) (Zip Code)

(Registrant’s telephone number, including area code) (512) 394-9384

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

YETI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 72,988,796 shares of common stock ($0.01 par value) outstanding as of August 6, 2026.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this Quarterly Report on Form 10-Q are forward-looking statements. Forward-looking statements include statements containing words such as “anticipate,” “assume,” “believe,” “can,” “have,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “likely,” “may,” “might,” “objective,” “plan,” “predict,” “project,” “potential,” “seek,” “should,” “target,” “will,” “would,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events. For example, all statements made relating to our expectations about our share repurchase program, expected market or macroeconomic conditions, the impacts of tariffs, tariff refunds, estimated and projected costs, expenditures, and growth rates, plans and objectives for future operations, growth, or initiatives, or strategies are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that are expected and, therefore, you should not unduly rely on such statements. The risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include but are not limited to: economic conditions or consumer confidence in future economic conditions; our ability to maintain and strengthen our brand and generate and maintain ongoing demand and prices for our products; our ability to successfully design, develop and market new products; our ability to accurately forecast demand for our products and our results of operations; our ability to effectively manage our growth and supply chain; our ability to expand into additional consumer markets, and our success in doing so; the success of our international expansion plans; our ability to compete effectively in the outdoor and recreation market and protect our brand; the level of consumer spending for our products, which is sensitive to general economic conditions and other factors; our ability to attract and retain skilled personnel and senior management, and to maintain the continued efforts of our management and key employees; our ability to protect our intellectual property; claims by third parties that we have infringed on their intellectual property rights; our involvement in legal or regulatory proceedings or audits; product recalls, warranty liability, product liability, or other claims against us; problems with, or loss of, our third-party contract manufacturers and suppliers, or an inability to obtain raw materials; our ability to timely obtain shipments and deliver products; risks related to manufacturer concentrations; fluctuations in the cost and availability of raw materials, equipment, labor, and transportation and subsequent manufacturing delays or increased costs; legal, regulatory, economic, political and public health risks associated with international trade; adverse changes in international trade policies, tariffs and treaties, including increases in tariff rates and the imposition of additional tariffs; the impact of currency exchange rate fluctuations; our aspirations, disclosures, and actions related to sustainability matters; our and our suppliers’ and partners’ ability to comply with applicable laws and regulations; our relationships with our national, regional, and independent retail partners, who account for a significant portion of our sales; risks associated with our direct-to-consumer channel; substantial fixed costs related to operating retail stores; seasonal and quarterly variations in our business; financial difficulties facing our retail partners; the impact of catastrophic events or failures of our information systems, including due to cybersecurity incidents, on our operations and the operations of our manufacturing partners; the integration and use of artificial intelligence; our ability to raise additional capital on acceptable terms; the impact of our indebtedness on our ability to invest in the ongoing needs of our business; impairment to our goodwill or other intangible assets; changes in tax laws or unanticipated tax liabilities; changes to our estimates or judgments; our ability to successfully execute our share repurchase program and its impact on stockholder value and the volatility of the price of our common stock; strategic transactions targeting us; the impact of stockholder activism, takeover proposals, proxy contests or short sellers; disruptions or diversions of our management’s attention due to acquisitions or investments in other companies; and the risks and uncertainties described in detail in Part I, Item 1A of our Annual Report on Form 10-K for the year ended January 3, 2026, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the United States Securities and Exchange Commission.

These forward-looking statements are made based upon detailed assumptions and reflect management’s current expectations and beliefs. While we believe that these assumptions underlying the forward-looking statements are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect actual results.

The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

WEBSITE REFERENCES

In this Quarterly Report on Form 10-Q, we make references to our website at YETI.com. References to our website through this Form 10-Q are provided for convenience only, and the content on our website does not constitute a part of, and shall not be deemed incorporated by reference into, this Quarterly Report on Form 10-Q.

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TRADEMARKS AND SERVICE MARKS

Solely for convenience, certain trademark and service marks (the “marks”) referred to in this Quarterly Report on Form 10‑Q appear without the ® or ™ symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these marks. This Quarterly Report on Form 10-Q may also contain additional marks of other companies, which are the property of their respective owners.

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Table of Contents


			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets			1
Condensed Consolidated Statements of Operations			2
Condensed Consolidated Statements of Comprehensive Income			3
Condensed Consolidated Statements of Equity			4
Condensed Consolidated Statements of Cash Flows			6
Notes To Unaudited Condensed Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			16
Item 3. Quantitative and Qualitative Disclosures About Market Risk			24
Item 4. Controls and Procedures			24
PART II. OTHER INFORMATION			25
Item 1. Legal Proceedings			25
Item 1A. Risk Factors			25
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			25
Item 5. Other Information			25
Item 6. Exhibits			26
Signatures			27

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

YETI HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except shares and par value)


	July 4, 2026		January 3, 2026
ASSETS
Current assets
Cash	$	59,823	$	188,342
Accounts receivable, net	174,782		141,424
Inventory	359,120		290,611
Prepaid expenses and other current assets	123,301		39,949
Total current assets	717,026		660,326
Property and equipment, net	150,073		142,105
Operating lease right-of-use assets	126,341		131,531
Goodwill	72,308		72,308
Intangible assets, net	226,070		219,791

Other assets	9,901		9,357
Total assets	$	1,301,719	$	1,235,418

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	209,824	$	140,214
Accrued expenses and other current liabilities	139,540		135,353
Taxes payable	23,515		15,897
Accrued payroll and related costs	16,876		22,659
Current operating lease liabilities	15,491		15,044
Current maturities of long-term debt	4,348		5,172
Total current liabilities	409,594		334,339
Long-term debt, net of current portion	96,443		68,301
Operating lease liabilities, non-current	136,752		139,945
Other liabilities	49,426		42,557
Total liabilities	692,215		585,142

Commitments and contingencies (Note 10)

Stockholders’ Equity
Common stock, par value $0.01; 600,000,000 shares authorized; 90,740,254 and 72,982,314 shares issued and outstanding at July 4, 2026, respectively, and 89,952,916 and 74,992,260 shares issued and outstanding at January 3, 2026, respectively	907		900
Treasury stock, at cost; 17,757,940 shares at July 4, 2026 and 14,960,656 shares at January 3, 2026	(733,245)		(602,268)
Preferred stock, par value $0.01; 30,000,000 shares authorized; no shares issued or outstanding	—		—
Additional paid-in capital	480,283		471,770
Retained earnings	860,680		779,512
Accumulated other comprehensive income	879		362
Total stockholders’ equity	609,504		650,276
Total liabilities and stockholders’ equity	$	1,301,719	$	1,235,418

See Notes to Unaudited Condensed Consolidated Financial Statements

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YETI HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)


	Three Months Ended				Six Months Ended
	July 4, 2026		June 28, 2025		July 4, 2026		June 28, 2025
Net sales	$	483,868	$	445,892	$	864,282	$	797,020
Cost of goods sold	161,344		188,323		331,547		337,729
Gross profit	322,524		257,569		532,735		459,291
Selling, general, and administrative expenses	229,006		195,545		426,779		375,596
Operating income	93,518		62,024		105,956		83,695
Interest income, net	1,617		295		500		603
Other (expense) income, net	(889)		5,773		90		7,149
Income before income taxes	94,246		68,092		106,546		91,447
Income tax expense	(22,929)		(16,941)		(25,378)		(23,687)
Net income	$	71,317	$	51,151	$	81,168	$	67,760

Net income per share
Basic	$	0.95	$	0.62	$	1.08	$	0.82
Diluted	$	0.94	$	0.61	$	1.06	$	0.81

Weighted-average common shares outstanding
Basic	74,685		82,732		75,002		82,665
Diluted	75,782		83,463		76,265		83,503

See Notes to Unaudited Condensed Consolidated Financial Statements

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YETI HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)


	Three Months Ended				Six Months Ended
	July 4, 2026		June 28, 2025		July 4, 2026		June 28, 2025
Net income	$	71,317	$	51,151	$	81,168	$	67,760
Other comprehensive income (loss)
Foreign currency translation adjustments	112		(644)		517		(1,653)
Total comprehensive income	$	71,429	$	50,507	$	81,685	$	66,107

See Notes to Unaudited Condensed Consolidated Financial Statements

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YETI HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(In thousands, including shares)


	Three Months Ended July 4, 2026
	Common Stock			Additional Paid-In Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
Balance, April 4, 2026	90,679	$	907	$	471,158	(14,961)	$	(602,268)	$	789,363	$	767	$	659,927
Stock-based compensation	—	—		8,907		—	—		—		—		8,907
Common stock issued under employee benefit plans	61	—		218		—	—		—		—		218
Common stock withheld related to net share settlement of stock-based compensation	—	—		—		—	—		—		—		—
Repurchase of common stock, including excise tax	—	—		—		(2,797)	(130,977)		—		—		(130,977)
Other comprehensive income	—	—		—		—	—		—		112		112
Net income	—	—		—		—	—		71,317		—		71,317
Balance, July 4, 2026	90,740	$	907	$	480,283	(17,758)	$	(733,245)	$	860,680	$	879	$	609,504

	Three Months Ended June 28, 2025
	Common Stock			Additional Paid-In Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
Balance, March 29, 2025	89,594	$	896	$	434,519	(6,803)	$	(301,634)	$	630,734	$	(253)	$	764,262
Stock-based compensation	—	—		11,173		—	—		—		—		11,173
Common stock issued under employee benefit plans	76	1		(1)		—	—		—		—		—
Common stock withheld related to net share settlement of stock-based compensation	(2)	—		(20)		—	—		—		—		(20)
Repurchase of common stock, including excise tax	—	—		—		(745)	(23,190)		—		—		(23,190)
Other comprehensive loss	—	—		—		—	—		—		(644)		(644)
Net income	—	—		—		—	—		51,151		—		51,151
Balance, June 28, 2025	89,668	$	897	$	445,671	(7,548)	$	(324,824)	$	681,885	$	(897)	$	802,732

See Notes to Unaudited Condensed Consolidated Financial Statements

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YETI HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(In thousands, including shares)


	Six Months Ended July 4, 2026
	Common Stock			Additional Paid-In Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
Balance, January 3, 2026	89,952	$	900	$	471,770	(14,961)	(602,268)		$	779,512	$	362	$	650,276
Stock-based compensation	—	—		18,308		—	—		—		—		18,308
Common stock issued under employee benefit plans	998	9		209		—	—		—		—		218
Common stock withheld related to net share settlement of stock-based compensation	(210)	(2)		(10,004)		—	—		—		—		(10,006)
Repurchase of common stock, including excise tax	—	—		—		(2,797)	(130,977)		—		—		(130,977)
Other comprehensive income	—	—		—		—	—		—		517		517
Net income	—	—		—		—	—		81,168		—		81,168
Balance, July 4, 2026	90,740	$	907	$	480,283	(17,758)	$	(733,245)	$	860,680	$	879	$	609,504

	Six Months Ended June 28, 2025
	Common Stock			Additional Paid-In Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
Balance, December 28, 2024	89,189	$	892	$	405,921	(6,251)	(281,587)		$	614,125	$	756	$	740,107
Stock-based compensation	—	—		21,317		—	—		—		—		21,317
Common stock issued under employee benefit plans	520	5		(5)		—	—		—		—		—
Common stock withheld related to net share settlement of stock-based compensation	(41)	—		(1,562)		—	—		—		—		(1,562)

Repurchase of common stock, including excise tax	—	—		20,000		(1,297)	(43,237)		—		—		(23,237)
Other comprehensive loss	—	—		—		—	—		—		(1,653)		(1,653)
Net income	—	—		—		—	—		67,760		—		67,760
Balance, June 28, 2025	89,668	$	897	$	445,671	(7,548)	$	(324,824)	$	681,885	$	(897)	$	802,732

See Notes to Unaudited Condensed Consolidated Financial Statements

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YETI HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


	Six Months Ended
	July 4, 2026		June 28, 2025
Cash Flows from Operating Activities:
Net income	$	81,168	$	67,760
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	28,343		26,297
Amortization of deferred financing fees	317		321
Stock-based compensation	18,308		21,317
Deferred income taxes	5,225		6,968
Impairment of long-lived assets	973		—

Product recalls	3,262		—
Other	2,651		(7,292)

Changes in operating assets and liabilities:
Accounts receivable	(33,383)		(40,769)
Inventory	(68,008)		(28,864)
Other current assets	(83,354)		(11,506)
Accounts payable and accrued expenses	61,057		(35,560)
Taxes payable	9,650		(18,572)
Other	3,592		799
Net cash provided by (used in) operating activities	29,801		(19,101)
Cash Flows from Investing Activities:
Purchases of property and equipment	(25,479)		(19,943)

Additions of intangibles, net	(14,474)		(11,143)

Net cash used in investing activities	(39,953)		(31,086)
Cash Flows from Financing Activities:
Repayments of long-term debt	(2,109)		(2,109)

Taxes paid in connection with employee stock transactions	(10,006)		(1,563)
Proceeds from employee stock transactions	218		—
Payments of finance lease obligations	(1,268)		(12,150)
Borrowings under revolving credit facility	75,000		—
Repayments under revolving credit facility	(45,000)		—

Repurchases of common stock	(130,047)		(22,984)


Excise tax paid on repurchases of common stock	(2,899)		(1,562)


Net cash used in financing activities	(116,111)		(40,368)
Effect of exchange rate changes on cash	(2,256)		1,433
Net decrease in cash	(128,519)		(89,122)
Cash, beginning of period	188,342		358,795
Cash, end of period	$	59,823	$	269,673

See Notes to Unaudited Condensed Consolidated Financial Statements

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YETI HOLDINGS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization and Business

Headquartered in Austin, Texas, YETI Holdings, Inc. is a global designer, retailer, and distributor of innovative outdoor products. From coolers and drinkware to bags and apparel, YETI products are built to meet the unique and varying needs of diverse outdoor pursuits, whether in the remote wilderness, at the beach, or anywhere life takes you. We sell our products through our wholesale channel, including independent retailers and national and regional accounts across a wide variety of end user markets, as well as through our direct-to-consumer (“DTC”) channel, which includes our websites, YETI Authorized on the Amazon Marketplace, our corporate sales program, and our retail stores. We operate in the U.S., Canada, Australia, New Zealand, Europe, the United Kingdom, and Asia.

The terms “we,” “us,” “our,” “YETI” and the “Company” as used herein and unless otherwise stated or indicated by context, refer to YETI Holdings, Inc. and its subsidiaries.

Basis of Presentation and Principles of Consolidation

The unaudited condensed consolidated financial statements and the accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, our financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair statement of our results of operations for the interim periods. Intercompany balances and transactions are eliminated in consolidation. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to applicable rules and regulations of the SEC. The consolidated balance sheet as of January 3, 2026 is derived from the audited financial statements included in our Annual Report on Form 10-K filed with the SEC for the year ended January 3, 2026, which should be read in conjunction with these unaudited consolidated financial statements and notes thereto.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements. Estimates and assumptions about future events and their effects cannot be made with certainty. Estimates may change as new events occur, when additional information becomes available and if our operating environment changes. Actual results could differ from our estimates.

Fiscal Year End

We have a 52- or 53-week fiscal year that ends on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53-week year when the fourth quarter will be 14 weeks. Our fiscal year ending January 2, 2027 (“2026”) is a 52-week period. The first quarter of our fiscal year 2026 ended on April 4, 2026, the second quarter ended on July 4, 2026, and the third quarter ends on October 3, 2026. Our fiscal year ended January 3, 2026 (“2025”) was a 53-week period. Unless otherwise stated, references to particular years, quarters, months and periods refer to our fiscal years and the associated quarters, months, and periods of those fiscal years. The unaudited condensed consolidated financial results presented herein represent the three and six months ended July 4, 2026 and June 28, 2025.

Accounts Receivable

Accounts receivable are recorded net of estimated credit losses. Our allowance for credit losses was $1.1 million as of July 4, 2026 and $0.8 million as of January 3, 2026.

Inventory

Inventories are comprised primarily of finished goods and are carried at the lower of cost (primarily using the weighted-average cost method) or market (net realizable value). At July 4, 2026 and January 3, 2026, inventory reserves were $3.6 million and $2.8 million, respectively.

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Fair Value of Financial Instruments

For financial assets and liabilities recorded at fair value on a recurring or non-recurring basis, fair value is the price we would receive to sell an asset, or pay to transfer a liability, in an orderly transaction with a market participant at the measurement date. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction. In determining fair value, observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions; preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:

Level 1: Quoted prices for identical instruments in active markets.

Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3: Significant inputs to the valuation model are unobservable.

Our financial instruments consist principally of cash, accounts receivable, accounts payable, and bank indebtedness. The carrying amount of cash, accounts receivable, and accounts payable approximates fair value due to the short-term maturity of these instruments. The carrying amount of our long-term bank indebtedness approximates fair value based on Level 2 inputs since our senior secured credit facility (the “Credit Facility”) carries a variable interest rate that is based on the Secured Overnight Financing Rate (“SOFR”).

Supplier Finance Program Obligations

We have a supplier finance program (“SFP”) with a financial institution which provides certain suppliers the option, at their sole discretion, to participate in the program and sell their receivables due from us for early payment. Participating eligible suppliers negotiate the terms directly with the financial institution and we have no involvement in establishing those terms nor are we a party to those agreements. Our payments associated with the invoices from the suppliers participating in the SFP are made to the financial institution according to the original invoice. The outstanding payment obligations under the SFP recorded within accounts payable in our condensed consolidated balance sheets at July 4, 2026 and January 3, 2026 were $90.3 million and $54.0 million, respectively.

Recently Adopted Accounting Pronouncements

In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this update provide entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets accounted for under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. This update is effective for annual periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. We have prospectively adopted this ASU and applied the practical expedient which assumes that current conditions as of the balance sheet date do not change over the remaining life of the asset when estimating expected credit losses for current accounts receivable and current contract assets. The adoption had no material impact on the unaudited condensed consolidated financial statements and related disclosures.

Recent Accounting Guidance Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update are intended to improve disclosures about an entity’s expenses and provide detailed information about the types of expenses, including purchases of inventory, employee compensation, depreciation, amortization, and depletion, in commonly presented expense captions on the face of financial statements. This update is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the ASU to determine its impact on our related disclosures.

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In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update are intended to modernize the accounting for internal-use software costs accounted for under ASC Subtopic 350-40. The amendment removes all references to software development project stages and requires entities to start capitalizing software costs when both of the following occur: (i) funding has been committed and management authorization has been granted, and (ii) it is probable the project will be completed. This update is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the ASU to determine its impact on our consolidated financial statements and related disclosures.

In November 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The amendments in this update are intended to provide further clarity about the current interim disclosure requirements and the applicability of Topic 270. This update is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the ASU to determine its impact on our consolidated financial statements and related disclosures.

In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818). The amendments in this update provide authoritative guidance for the recognition, measurement, presentation and disclosure requirements of environmental credits and environmental credit obligations. The amendments in this update apply to all entities that generate, purchase, or receive environmental credits or have regulatory compliance obligations that may be settled with environmental credits. This update is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the ASU to determine its impact on our consolidated financial statements and related disclosures.

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2. REVENUE

Contract Balances

Accounts receivable represent an unconditional right to receive consideration from a customer and are recorded at net invoiced amounts, less an estimated allowance for credit losses.

Contract liabilities are recorded when the customer pays consideration before the transfer of a good to the customer and thus represent our obligation to transfer the good to the customer at a future date. Our contract liabilities include advance cash deposits received from customers for certain customized product orders and unredeemed gift card liabilities. As products are shipped and control transfers, we recognize contract liabilities as revenue.

The following table provides information about accounts receivable and contract liabilities at the periods indicated (in thousands):


	July 4, 2026		January 3, 2026
Accounts receivable, net	$	174,782	$	141,424
Contract liabilities	$	(10,888)	$	(9,535)

For the six months ended July 4, 2026, we recognized $6.9 million of revenue that was previously included in the contract liability balance at the beginning of the period.

Disaggregation of Revenue

The following table disaggregates our net sales by channel, product category, and geography (based on end-consumer location) for the periods indicated (in thousands):


	Three Months Ended				Six Months Ended
	July 4, 2026		June 28, 2025		July 4, 2026		June 28, 2025
Net Sales by Channel
Wholesale	$	217,995	$	197,296	$	401,590	$	352,208
Direct-to-consumer	265,873		248,596		462,692		444,812
Total net sales	$	483,868	$	445,892	$	864,282	$	797,020

Net Sales by Category
Coolers & Equipment	$	232,404	$	200,572	$	388,505	$	340,789
Drinkware	241,384		236,438		458,289		442,039
Other	10,080		8,882		17,488		14,192
Total net sales	$	483,868	$	445,892	$	864,282	$	797,020

Net Sales by Geographic Region
United States	$	390,965	$	367,772	$	684,051	$	639,047
International	92,903		78,120		180,231		157,973
Total net sales	$	483,868	$	445,892	$	864,282	$	797,020

For each of the three and six months ended July 4, 2026 and June 28, 2025, no single customer represented over 10% of gross sales.

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3. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets include the following (in thousands):


	July 4, 2026		January 3, 2026
Prepaid expenses	$	29,148	$	14,865
Prepaid taxes	16,293		15,092
IEEPA tariff refund receivable	68,749		—
Other	9,111		9,992
Total prepaid expenses and other current assets	$	123,301	$	39,949

4. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following (in thousands):


	July 4, 2026		January 3, 2026
Accrued freight and other operating expenses	$	47,505	$	50,974
Product recall reserves	4,813		5,371
Contract liabilities	10,888		9,535
Customer discounts, allowances, and returns	13,216		16,025
Advertising and marketing	7,225		6,463
Warranty reserve	6,805		7,545
Accrued capital expenditures	9,477		7,435
Interest payable	305		199
Other	39,306		31,806
Total accrued expenses and other current liabilities	$	139,540	$	135,353

5. LONG-TERM DEBT

Revolving Credit Facility

As of July 4, 2026, we had a $30.0 million outstanding balance under our $300 million revolving credit facility (“Revolving Credit Facility”). There were no amounts outstanding under the Revolving Credit Facility as of January 3, 2026. The weighted average interest rate for borrowings under the Revolving Credit Facility was 5.48% during the three months ended July 4, 2026.

6. INCOME TAXES

Income tax expense was $22.9 million and $16.9 million for the three months ended July 4, 2026 and June 28, 2025, respectively. The increase in income tax expense was primarily due to higher income before income taxes. The effective tax rate for the three months ended July 4, 2026 was 24.3% compared to 24.9% for the three months ended June 28, 2025. The lower effective tax rate was primarily due to the impact of a discrete tax benefit related to stock-based compensation in the three months ended July 4, 2026.

Income tax expense was $25.4 million and $23.7 million for the six months ended July 4, 2026 and June 28, 2025, respectively. The increase in income tax expense was primarily due to higher income before income taxes. The effective tax rate for the six months ended July 4, 2026 was 23.8% compared to 25.9% for the six months ended June 28, 2025. The lower effective tax rate was primarily due to the impact of a discrete tax benefit related to stock-based compensation in the six months ended July 4, 2026.

Deferred tax liabilities were $27.8 million as of July 4, 2026 and $22.3 million as of January 3, 2026. Deferred tax liabilities are presented in other liabilities on our unaudited condensed consolidated balance sheet.

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The Organization for Economic Co-operation and Development enacted model rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of enacting, legislation to address Pillar Two. For the six months ended July 4, 2026, the impact of Pillar Two on our consolidated financial statements was not material.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The effects of the OBBBA were incorporated into our income tax provision for the six months ended July 4, 2026. There was no material impact to our income tax expense for the six months ended July 4, 2026. We will continue to evaluate the impacts of the OBBBA and do not expect the OBBBA to have a material impact on our consolidated financial statements.

For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions, and other items.

7. STOCK-BASED COMPENSATION

We award stock-based compensation to employees and directors under our 2024 Equity and Incentive Compensation Plan (“2024 Plan”). The 2024 Plan was approved by the Company’s stockholders in May 2024 and replaced the 2018 Equity and Incentive Compensation Plan (the “2018 Plan”). No new awards have been or will be granted under the 2018 Plan since the 2024 Plan was approved. The 2018 Plan replaced the 2012 Equity and Performance Incentive Plan, as amended and restated on June 20, 2018 (the “2012 Plan”). No awards remain outstanding under the 2012 Plan. Awards outstanding under the 2018 Plan will continue to remain outstanding according to their terms. Shares subject to stock awards granted under the 2018 Plan (a) that expire or terminate without being exercised or (b) that are forfeited under an award, return to the 2024 Plan.

We recognized non-cash stock-based compensation expense of $8.9 million and $11.2 million for the three months ended July 4, 2026 and June 28, 2025, respectively. For the six months ended July 4, 2026 and June 28, 2025, we recognized non-cash stock-based compensation expense of $18.3 million and $21.3 million, respectively. At July 4, 2026, total unrecognized stock-based compensation expense of $70.3 million for all stock-based compensation plans is expected to be recognized over a weighted-average period of 2.1 years.

Stock-based activity for the six months ended July 4, 2026 is summarized below (in thousands, except per share data):


	Stock Options			Performance-Based Restricted Stock Units			Restricted Stock Units and Deferred Stock Units
	Number of Options	Weighted Average Exercise Price		Number of PRSUs	Weighted Average Grant Date Fair Value		Number of RSUs and DSUs	Weighted Average Grant Date Fair Value
Balance, January 3, 2026	559	$	19.72	653	$	40.03	1,634	$	37.38
Granted	—	—		230	52.47		762	46.79
Exercised/released	(11)	19.19		(484)	38.17		(502)	37.45
Performance adjustment(1)	—	—		242	38.33		—	—
Forfeited/expired	—	—		(78)