SharkNinja (SN) 2026年第三季法說會：營收成長21.2%，上調財測指引

重點摘要

• SharkNinja 2026 財年第三季淨銷售額年增 21.2% 至 19.8 億美元，創下連續 14 個季度雙位數成長的紀錄。
• 國內淨銷售額成長 19.4% 至 13.1 億美元，國際淨銷售額則成長 25.2% 至 6.63 億美元。美國銷售額增加 20.8% 至 12.2 億美元。
• 調整後毛利率擴增 560 個基點至 55.9%，主要反映與 2026 財年關稅相關的退稅申請。管理層表示，若扣除退稅金額，毛利率將下降約 100 個基點。
• 調整後淨利成長約 55% 至 3.31 億美元，調整後稀釋每股盈餘（EPS）由 1.50 美元增至 2.34 美元。調整後 EBITDA 成長約 46%，利潤率為 23.3%。
• 管理層上調 2026 全年展望，預期淨銷售額成長 18%–19%，調整後稀釋 EPS 為 6.65–6.75 美元。
• 該公司正將部分關稅退稅收益再投資於媒體、零售推廣、研發、技術及人工智慧（AI）專案，旨在支援 2027 年及未來的成長。

關鍵財務數據

調整後研發費用成長 24.4% 至 1.11 億美元。調整後銷售與行銷費用增加 25.3% 至 4.45 億美元，調整後一般及行政費用則成長 43.3% 至 1.25 億美元。管理層將費用增加歸因於產品開發、媒體、跨國拓展、人力、技術及 AI 投資。

業務與營運表現

烹飪與飲料為最大成長貢獻品類，銷售額大增 36.6% 至 5.98 億美元。管理層提及包括 Ninja LuxeCafé 在內的多個產品系列。

美容與居家環境產品銷售額成長 45.8% 至 2.76 億美元，得益於 Shark Beauty 美髮及護膚產品的強勁動能。備料家電銷售額成長 18.3% 至 4.86 億美元，受攪拌機與冷凍點心機帶動。清潔用品銷售額增加 4.1% 至 6.17 億美元，以有線及無線吸塵器為主導。

國際市場成長十分廣泛。西班牙與義大利受益於近期從代理商轉型為直營模式。英國市場儘管面臨去年同期 26% 高成長基期，仍成長 13.3%。墨西哥及其他拉丁美洲市場亦維持強勁銷售趨勢。

管理層表示，本季銷售成長最大貢獻來自現有業務，而非僅靠新品類。該公司計劃在 2027 年進軍另外兩個細分品類，從目前競爭的 41 個細分品類進一步擴展。

Ninja Hydro Sense 淨水產品於 8 月推出，售價為 199 美元。SharkNinja 估計潛在淨水市場規模超過 60 億美元，並表示其 D2C 官網上濾芯的早期訂閱附著率比內部預期高出三倍以上。

SharkNinja 也在拓展社群電商與直營（D2C）通路。管理層表示，今年以來在美國主要零售商網站的 POS 銷售成長超過 30%。根據該公司的分析數據，平台上每產生 1 美元的社群電商銷售額，估計能帶來 2 美元的平台外銷售額。

管理層財測指引

在最新展望的高點情境下，管理層表示 2026 財年第四季淨銷售額將年增約 17%，調整後 EBITDA 將成長約 9%。由於部分再投資的時間點由第三季遞延至第四季，預計調整後毛利率將下降約 100 個基點。

該展望假設目前的關稅水準將持續至年底，包括印尼、馬來西亞和柬埔寨的最低稅率為 10%，中國、越南和泰國為 12.5%。管理層預期第四季國際銷售成長將較第三季加速。

風險與關注焦點

第三季毛利率擴增受到關稅退稅的顯著影響。SharkNinja 認列了與 2025 財年關稅相關的約 1.1 億美元總退稅申請，以及與 2026 財年關稅相關的約 1.34 億美元收益。此外，公司還為工廠夥伴認列了約 4,500 萬美元的銷貨成本。

管理層指出，若無此退稅，基礎毛利率將下降約 100 個基點。大宗商品成本、燃料、匯率與關稅仍是逆風，但近幾個月並未出現新的重大逆風因素。

存貨增加 23.3%，成長速度略快於單季淨銷售額。管理層表示，公司目前已渡過與 2024 年底及 2025 年初關稅相關高存貨建置的基期比較。

隨著 SharkNinja 完成計畫中的再投資，第四季獲利成長預期將有所放緩。管理層強調，這些費用旨在為 2027 年及後續期間帶來效益，而非 2026 年。

分析師問答集錦

管理層估計 SharkNinja 的總可服務市場 (TAM) 約為 1,300 億美元，隨著公司進入淨水器與微波爐等品類而成長。管理層表示，拉丁美洲與非英語系歐洲市場的拓展仍處於早期階段，需要進一步建立分銷管道與發展品類。

關於美國市場展望，管理層表示，儘管面臨早期推出社群電商通路的高基期挑戰，國內業務仍維持雙位數成長。成長動力源自沃爾瑪（Walmart）、其他實體零售商、零售商網站、量販店與 D2C 直營通路等各大管道。

管理層預期營運費用槓桿效益將是其 2027 年獲利計畫的重要組成部分。其既定目標仍是使調整後 EBITDA 金額的成長速度高於淨銷售額金額。

D2C 直營與社群電商通路也正在降低對零售商上架品類擴充速度的依賴。管理層特別指出，SharkNinja 在西班牙與義大利提供的假期品類中，約有一半將僅透過 D2C、社群電商及亞馬遜（Amazon）販售。

法說會逐字稿全文

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完整財報電話會議逐字稿

管理層陳述

Operator

Hello, everyone. Thank you for joining us, and welcome to the SharkNinja Third Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to James Lamb, Senior Vice President of Investor Relations and Treasury. James, please go ahead.

James Lamb

Good morning, and welcome to SharkNinja's Third Quarter 2026 Earnings Conference Call. Earlier today, we issued our Q3 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 more details, please refer to our earnings release and the company's most recent SEC filings, which outline factors that could impact these statements.

The company assumes no obligation to update or revise forward-looking statements in the future. Additionally, during the call, we will reference non-GAAP financial measures, which we believe provide valuable insight into the underlying growth trends of our business. You can find a full reconciliation of these measures to their most directly comparable GAAP measures in the earnings release.

Joining me today are our Chief Executive Officer, Mark Barocas, and Chief Financial Officer, Adam Quigley. Mark will start by providing a business update, followed by Adam, who will review our Q3 financial results and share our outlook for 2026. Mark will then offer some closing remarks before we open the call to questions. During the Q&A session, please limit yourself to 1 question and 1 follow-up. I would now like to turn the call over to Mark.

Mark Adam Barrocas

Thank you, James. Good morning, everyone, and thank you for joining us today. Hrd-working and never satisfied. At SharkNinja, we believe these are essential traits to keep us focused squarely on solving consumer problems. When we do that, we earn consumers' trust and drive success in our business. Q3 was another great example of this, and we couldn't be more energized to drive momentum into Q4 and 2027. In the third quarter, net sales grew 21.2% year-over-year. This marks SharkNinja's second quarter in a row over 20% and 14th consecutive quarter of double-digit growth. Our top line strength this quarter was well balanced.

Domestic net sales grew over 19% year-over-year and international grew more than 25% and we saw tremendous performance across channels, categories and geographies. Importantly, our base business contributed the largest impact of net sales performance, reinforcing the growth foundation I focused on last quarter.

We spoke about a strong focus on the core a year ago, and our results clearly show that we're succeeding here. In our view, this kind of growth that a consumer company of our size is highly differentiated and something we're really proud of. We keep doing it quarter after quarter against a bar that keeps rising. We often describe this durability coming down to 3 SharkNinja differentiators: diversification, strengthen the core and execution powered by our unique culture.

There's a fourth factor, reinvention. Our mission remains steadfast, positively impacting people's lives every day in every home around the world. But how we accomplish this is constantly evolving. To win consistently over time, we believe SharkNinja must continuously reinvent the ways we operate where other companies may resist change, we embrace new challenges head on whether it's the emergence of opportunities like social and agentic commerce or generational technology advancements like artificial intelligence.

SharkNinja is purpose-built to adapt and thrive. Reinvention means we can boldly enter a new era. When I look back at how we've transformed the business over the last 18 months, 1 thing is clear. SharkNinja is a consumer technology company operating at hyperscale. That's not a new idea for us. It's the natural extension of how we have described SharkNinja as a consumer problem-solving company.

To us, hyperscale means scale the compounds where every product, market and piece of content is designed to make the next 1 better, more innovative and more successful. This concept shows up in what we make how we market, how we sell, how fast we learn and how far we reach.

Starting with product. Today, we compete in 41 subcategories, from vacuums to espresso makers, air purifiers, beauty tools, air fryers, outdoor products and everything in between. That is hyperscale in action, which we believe is the first enabler of our long-term diversified growth opportunity. We're complementing that scale by introducing more technologically advanced products across the portfolio.

Take the Ninja Auto Barista as an example. The complex software that automates countless drink options is significantly more sophisticated than our capabilities even a year ago. You will see more examples like this in our 2027 new product lineup clear evidence that we're a consumer technology leader.

Next, how we market, which brings me to a concept internally we call spillover. In short, spillover is the global demand generation benefit we see from how far our content reaches. Content from Canada gets watched in the United States. Content from Spain can influence Chile. Content from France, finds an audience in Quebec, picture of spiderweb with threads running back and forth in every direction where the content originates is often not the only places where it's consumed.

We have always known spillover existed. What we didn't have was a data science-driven way to measure it and immediately act on it, not in weeks, but in hours. Over the last 12 to 18 months, we've built proprietary technology platforms that do exactly that. Today, we can identify a piece of content from the U.K. taking off in Norway, alert our marketing teams immediately and amplify it same day across our media ecosystems.

Our social media scale makes us uniquely positioned to succeed at this. Now spillover only matters if you can serve the consumer. As our products become more available and our brands become better known in more countries, we can build the sales strategy around what the content is telling us. Spain is a great example. When we converted to a direct model, we knew where to lean in with retailers.

We had seen how Spanish language content from places like Mexico was landing with Spanish consumers and which products they were asking for by name. Investments in technology paired with globalizing our demand generation strategy, that is hyperscale marketing, befitting a true consumer technology company. How we sell is the next lens. We operate in more than 30 countries with more than 180 partners worldwide.

Our goal is simple: be everywhere in the consumer shops. This starts with our long-standing retail partnerships where increased placements, media activations and big support create a tremendous amount of excitement as we move toward the holiday season. Simply put, Consumers want sharp and anger products. So retailers want to feature our products. We're privileged to have earned this status with retailers, both domestically and internationally. And as we expand worldwide, this means establishing new channels of growth with regional pure-player partners like Mercado Libre in Latin America and a leg row in Poland to name a few. As shopping behaviors evolve in the coming years, we feel our scale advantage can compound further. I believe social commerce is the biggest change in consumer retail since Amazon.

We're a leader on TikTok shop, and our global presence gives SharkNinja access to an enormous number of affiliates and the technology to identify and succeed with them. This opportunity extends beyond TikTok shop with affiliate networks emerging on meta, YouTube Snap and other platforms. Results so far have been incredibly encouraging and we're excited to continue to build this capability worldwide. Social commerce represents selling scale we could not have unlocked even 18 to 24 months ago, all managed using proprietary technology and KPI dashboards that we have developed.

These social commerce efforts don't just benefit their respective platforms. they help fuel the man flywheel for sharp manger products across the entire e-commerce system. We're leveraging our digital presence with learnings from our own direct-to-consumer overhaul to drive much stronger outcomes on traditional retailers' digital storefronts.

In fact, year-to-date POS across our major U.S. retailer sites is up more than 30% year-over-year. We believe SharkNinja capabilities as a global consumer technology company deepen our omnichannel competitive advantage. Next, how fast we learn? We have always moved fast to SharkNinja, but AI is supercharging our capabilities across the organization.

Our internal AI proliferation initiative, Jail Break SharkNinja has been a runaway success this year. The impacts we're seeing from the people closest to the business have been eye-popping. So much so that we are doing another hack week starting next Monday. The timing is intentional. We're refilling the pipeline with lots of additional initiatives focused on supercharging 2027.

Our most significant AI investments are targeted at 2 of our largest costs, media spending and promotional dollars. At our hyperscale, the total opportunity here is massive. We spend more than $1.5 billion annually in these 2 areas combined. We're doing the work now in 2026 to pay off in '27 and '28 and beyond.

Even in the early stages, we're discovering meaningful insights, all of which we anticipate will help optimize share gains, gross profit and contribution margin. The dawn of Agentic Commerce is another major opportunity for SharkNinja. While it remains early days, we continue to work closely with leading AI and commerce platforms to develop and test new consumer experiences.

Holiday 2026 will be an important measure of how consumers utilize these platforms for product discovery and brand engagement. Because our goal is to be everywhere the consumer shops, we intend to remain at the forefront as this exciting channel opportunity evolves in 2027. The same drive is powering new initiatives on sharkninja.com. AI-powered search is live with early results showing a nice high single-digit increase in revenue per search visitor, Consumers can also now add products directly to their carts within our shopping agent. Agentic Commerce is another area where we believe our scale is a meaningful differentiator versus our peers.

Finally, how far we reach? Becoming a consumer technology company has significantly broadened our demographic profile. This summer, our consumer insights and analytics teams conducted a deep dive into a question I hear most from investors. How durable is this growth? And who is it coming from? We looked at SharkNinja inside the American household.

Based on our internal data and external sources such as Sercana's consumer panel, we measured household penetration across age, income, household size and more, and here's a big takeaway. We're seeing widespread gains across the demographic spectrum. Success is it concentrated in 1 age group, 1 income level or 1 household size. It's broad-based. Two powerful trends in the data really stand out.

First, our fastest-growing cohort is our youngest one. We've discussed previously how 10 years ago, our core consumer was typically 35 to 55 years old. Today, our demographic data shows that among 18- to 24-year olds, household penetration is up more than 50% over 2 years to the high single-digit range. This is significantly faster than the next fastest cohort with the SharkNinja brands, both driving gains with these younger consumers.

Naturally, discretionary buying power in this cohort is still relatively low compared to other demographic groups. This means that success in capturing younger consumers isn't just about revenue today it's about laying roots for future growth and customer lifetime value. When you earn a consumer at an early age, you get the opportunity to grow with them, the college dorm room, the first apartment, getting married the first home and more.

Each of these moments is a reason to engage with SharkNinja. We're developing that relationship earlier than ever with a long runway to deepen it. Second, when looking at cohorts by household size, penetration grew fastest in families with 4 or more members. This matters because a bigger household has more consumer problems to solve.

Encouragingly, we also see evidence of multiple members in a family unit purchasing from SharkNinja more density in the household means more occasions, more needs and likely a larger wallet to access. That's a cross-selling opportunity, both for existing categories and new ones.

What this means is SharkNinja has a growing presence in the American home. Two things are happening at once. Younger customers are finding us early, which means decades of potential growth and larger households are buying more of our products because they value our ability to solve multiple problems across their lives.

It all adds up to a growing buyer base that continues to engage across the breadth of the Shark and Ninja brands. That's a powerful compounding growth driver and another example of increasing scale. The journey to become a consumer technology leader didn't happen overnight, but it feels like we're accelerating.

Consider where the business was only a year ago. We were replatforming our direct-to-consumer website from 3 URLs into 1 upgraded sharkninja.com. TikTok Shop had just launched only in the United States and the United Kingdom. We were in the midst of converting key markets from distributor led to direct models. And in some countries, too few categories and channels were limiting our growth.

We have worked diligently to address every 1 of these areas, and we're now seeing the fruits of that labor in our results. And we're just getting started. Scale drives success and success builds more scale. It's a positive flywheel that has enabled our transformation. SharkNinja is a consumer technology company with limitless potential in my mind.

In fact, I've never been more excited to be in business than I am today. Now let me walk you through our 3-pillar growth strategy beginning with our first pillar, expansion into new and adjacent categories. In August, we launched the Ninja Hydro Sense, a revolutionary new water filtration product. This is a perfect example of consumer technology in action.

At first glance, water filtration appears to be a crowded category, but we believe we found a real white space. Our consumer insights research identified a highly bifurcated market between entry level and very costly products. Importantly, we also discovered that consumers don't often fully understand filter performance, especially with low-end solutions.

The Ninja Hydro Sense is designed to be an innovative disruptor. Our new precision pressure technology removes up to 10x more contaminants than the leading filter. This level of performance is akin to a reverse osmosis system, which can often cost $2,000 or more.

For $199, we feel the Ninja Hydra Sense has democratized great water. We view this as a clear opportunity in a large market we have sized to over $6 billion. Consumer response has been extraordinary with social media post testing the Hydro Sense on everything from soda to pickle brine.

This is also a real repeat purchase opportunity with replacement filters early subscribe and save attach rates on our D2C site more than tripled our internal expectations, a strong early sign as we look to apply this concept to other parts of our business. The launch of Ninja Hydro Sense was years in the making. We took the time to really understand the consumer problem, the market opportunity and the competition.

While we're thrilled with the debut, we're even more excited to develop a technology platform here to drive years of future innovation. SharkNinja doesn't just introduce products we launched consumer technology franchises, and we always strive to bring a differentiating perspective on where the white space is. The opportunity of water filtration is a great example, but we took a similar approach to espresso to microwaves to fans and countless other categories. We believe SharkNinja is at its best when people ask, why didn't anyone else think of this?

Looking into 2027, we're committed to entering 2 additional new subcategories to build on our 41 today. The ability to repeatedly and successfully introduce new and adjacent categories is 1 of the biggest differentiators for SharkNinja. Our scale across existing categories consumer insights, social media and more gives us a unique ability to keep expanding our scope.

Our second pillar is growing share in existing categories. This pillar is the cornerstone of everything else we do with SharkNinja. We never stop innovating, even in categories where our market share lead is dominant. Each of the major initiatives we introduced in our core franchises in 2026, the Shark Power Detect transformer in the upright vacuums, the new Shark Aqua reach Vacuum op and the Ninja Crush Foss kitchen system shows how we continue to reinvent our core as the bedrock of our growth.

It comes from an obsessive focus on the consumer and from the technology scale and expertise that allows SharkNinja to be a disruptor, time and time again. Consistently delivering on product development is key and we're increasingly confident that the sharpening machine is built to do this broadly.

The Ninja Multipot is 1 of the best-selling launches we ever had. The Ninja Prepi went from 0 to 10 million impressions on social media at a speed that impressed even us. These 2 respective categories, multi-cookers and food processors are as core as it gets. When consumers respond to existing category launches in such a huge way, it reinforces our strategy to focus so much attention here and as subcategories evolve from new into existing franchises, sharpen interest scale advantages continue to compound.

Our third pillar is international expansion. I want to start with EMEA, where balanced growth drove our robust Q3 '26 results. The U.K. continued the excellent performance we have seen throughout 2026 led by contributions from several categories. Several of our recently converted distributor to direct markets also delivered noteworthy growth in the quarter. Spain and Italy were standouts and we can't wait for our first holiday season as a direct operator in these countries.

This same excitement extends to Germany and France. Meaningful expansion in category diversification and retailer product placements set us up for a strong finish to the year. The Latin America region further extended its run of excellent results. Mexico has set the standard for what a distributor to direct conversion should look like, partnering effectively with retailers, driving consumer demand with local language social media and executing operationally to fulfill that demand.

Beyond Mexico, our Latin America distributor markets had their best net sales quarter ever. We believe this underscores how much Latin American consumers want sharpen inter products while showing the power of our omnichannel approach. We enter holiday 2026 with huge excitement across the region to reach more countries and more consumers than ever before. All of this is augmented by the newer ways we're reaching the consumer.

Our recent D2C upgrades and TikTok shop launches have exceeded our expectations to date. We remain on track to be live with TikTok shop in 4 countries ahead of the holiday shopping season. This increasingly robust omnichannel approach gives us confidence that international net sales growth can reaccelerate year-over-year in Q4 relative to Q3. That brings me back to where I started. What said SharkNinja part is our ability to leverage our hyperscale to serve the consumer, solving their pain points, rapidly innovating across products and markets and reaching them wherever they are. We see clear evidence that our focus on investment is a key enabler of this strong position.

In this quarter, we proactively reinvested a portion of our tariff refund across multiple high-return opportunities. There are a lot more places where we want to plant seeds and we intend to remain opportunistic in Q4. This is a moment for SharkNinja to be on offense to widen our moat by investing for the benefit of future years.

Zooming out, there's a consistent theme here. Hard work and investments that we made in 2024 and 2025 are paying off now. We're doubling down and making big investments in 2026. And to plant more seeds across product, technology, demand generation and more. We expect these will pay off in 2027 and 2028 as we continue pursuing our mission of positively impacting people's lives every day and every home around the world.

Our guidance raise reflects the continued strength we are seeing in the business while we balance investment with a focus on profitability and margin expansion. We could not be more enthusiastic as we look ahead to the new year, with all our hyperscale advantages poised to deliver exceptional performance. With that, I'll turn it over to Adam, who will walk you through our financial results and share our updated outlook for 2026.

Adam Quigley

Thank you, Mark, and good morning, everyone. Q3 was a tremendous quarter for SharkNinja. Simply put, the business is firing on all cylinders, and I'm excited to walk through the details.

Net sales in the third quarter increased 21.2% year-over-year to $1.98 billion. By geography, domestic net sales, which includes U.S. and Canada, increased 19.4% to $1.31 billion and international net sales were $663 million, up 25.2%. Starting with the strength of the U.S. business, net sales grew 20.8% to $1.22 billion. This is our highest growth rate in the U.S. since Q4 2024.

As we highlighted last quarter, this strength is primarily coming from our focused efforts within the base business. We see core momentum in multiple subcategories and across our omnichannel ecosystem. Our large diversified collection of existing categories is growing through execution and innovation as a consumer technology company. This quarter is a clear proof point of compounding growth at scale within our U.S. business.

Moving to the international business. We saw broad-based strength across all regions in the third quarter. As Mark highlighted earlier, our EMEA results were robust with significant strength in places like Spain and Italy, where we recently converted from a distributor led to a direct model. Mexico and the rest of Latin America region continued to see strong sales trends as well.

Our U.K. business grew 13.3% year-over-year to $268 million and is up nearly 17% year-to-date. As a reminder, we are comping over 26% U.K. growth in the third quarter last year following the launch of TikTok shop while also lapping the point at which Airfryer headwinds began to ease. We remain as convicted as ever in our ability to be a long-term grower in the largest and most mature markets, as demonstrated by the U.S. and U.K. performance this quarter.

Turning to performance by category. Net sales in the cleaning category increased 4.1% year-over-year to $617 million, driven by our corded and cordless vacuum subcategories. Here again, we saw the power of relentless innovation to drive sales in our core businesses.

Net sales in the cooking and beverage category increased 36.6% year-over-year to $598 million. Multiple franchises contributed to the strength in the quarter, including the Ninja LuxeCafe, NinjaCriSpy and more. Net sales in the food preparation category increased 18.3% year-over-year to $486 million, driven by robust growth in our blending subcategory as we continue to innovate with launches like the Ninja Crush Boss. Fozen treats also performed nicely in the quarter. This is a good example of how growth compounds as we increasingly diversify the number of core categories at SharkNinja.

Finally, our Beauty and Home Environment category increased 45.8% year-over-year to $276 million with continued strength across product lines. This quarter, we saw particular momentum in our Shark Beauty portfolio, both hair care and skin care. Now let's move to gross profit. Adjusted gross margin increased 560 basis points to 55.9% of net sales our GAAP gross margin increased by roughly 910 basis points to 59.2% of net sales.

As previewed last quarter, the primary driver of the Q3 gross margin expansion is the recognition of refund claims accepted by the U.S. Customs and Border Protection for duties previously paid under IEEPA that are attributable to duties expense and cost of sales.

For the portion of the tariff refund claims attributable to duties expense in fiscal 2025, we exclude the benefit from our adjusted results. These duties were recognized in a prior period and are not indicative of our ongoing operating performance. The portion of the refund claims attributable to duties expense in fiscal 2026 is not excluded and remains in our adjusted results.

The IEEPA tariff refund claim related to 2025 of approximately $110 million represents the gross number recognized in Q3. This differed slightly from our original expectation of roughly $124 million or about half of the total refund claim of approximately $247 million.

The difference is due mostly to slight changes in the realized split between duties attributable to FY 2025 and 2026. The $110 million of gross FY 2025 duties is partially offset by intentional reinvestment into our cost of goods sold live. In Q3, we recorded approximately $45 million due to our factory partners as recognition of their extraordinary partnership during the tariff-related headwinds in 2025.

Moving down the P&L. Our adjusted operating expenses this quarter totaled $680 million or 34.4% of net sales. This compares to 32.6% of net sales in the year ago quarter. Before I break down each operating expense line item, I want to take a moment to remind everyone of the plans we laid out last quarter. Our updated outlook in August reflected stronger underlying operating performance as well as the expected net benefit from the tariff refund associated with FY 2026 duties.

We foreshadowed opportunistic reinvestment of a portion of that benefit in targeted areas that support long-term growth. These include retail activation, media, technology and AI capabilities along with the acceleration of some R&D efforts. Some of these investments impacted the following operating expense lines.

The numbers I will walk through here are non-GAAP results. For the full reconciliation to our GAAP measures, please reference our earnings release. Non-GAAP research and development expenses increased 24.4% year-over-year to $111 million compared to $89 million in the prior year period, deleveraging roughly 10 basis points year-over-year.

Disruptive innovation has always been a competitive advantage for SharkNinja, and we will continue to invest in our R&D engine, including opportunistically accelerating the time line of investments when we believe it makes sense to do so. Non-GAAP sales and marketing expenses increased 25.3% year-over-year to $445 million compared to $355 million in the prior year period deleveraging approximately 70 basis points year-over-year.

Leaning into our media and selling efforts, especially as we ramp up new categories and geographies, helped SharkNinja build a stronger global brand. Non-GAAP general and administrative expenses increased 43.3% year-over-year to $125 million compared to $87 million in the prior year period, deleveraging just about 100 basis points year-over-year.

Investments in SharkNinja personnel and technology, including the acceleration of strategic AI investments drove the increase here. Ultimately, we delivered over 21% sales growth and approximately 46% adjusted EBITDA growth in the third quarter for an adjusted EBITDA margin of 23.3% of net sales. This is consistent with SharkNinja's profitability goal of delivering full year adjusted EBITDA growth ahead of net sales growth.

We continue to do this while spending proactively on high ROI investment opportunities balanced by remaining prudent and disciplined when considering operating expenses as a percent of net sales. To wrap up the income statement, our GAAP effective tax rate in Q3 was 23.3% and while our non-GAAP effective tax rate was 21.7%. Adjusted net income in the period was $331 million or $2.34 per diluted share. compared to $213 million or $1.50 per diluted share in the year ago period. Our adjusted net income in Q3 grew roughly 55% year-over-year, marking growth of 25% or better in 13 of the last 15 quarters.

Turning to the balance sheet and cash flow. At the end of the third quarter, cash and cash equivalents totaled almost $488 million, up approximately 85% year-over-year. Total debt outstanding at quarter end was $709 million, and we continue to have nearly $495 million of capacity available to us on our $500 million revolving credit facility.

Total inventories were $1.43 billion exiting the quarter, up 23.3% year-over-year. We have now lapped the large levels of tariff prebuilt inventory from late 2024 and early 2025 with inventory growth tracking closer to net sales growth. In the quarter, we repurchased roughly $50 million worth of stock as part of our authorization. This brings our year-to-date activity to $170 million so far in 2026. We are pleased with our stock buyback activity, and we'll continue to utilize the program opportunistically.

Let's move to our outlook. Consistent with prior quarters, our updated 2026 outlook assumes current tariff levels persist for the remainder of the year, including minimum rates of 10% for Indonesia, Malaysia and Cambodia and 12.5% for China, Vietnam and Thailand.

As I mentioned earlier, we utilized a portion of the tariff refund benefit recognized in Q3 to reinvest across multiple areas of the P&L. Last quarter, we had sized this opportunity at approximately $95 million as the difference between the approximately $125 million expected tariff refund amount attributable to duties expense in fiscal 2026 and and the anticipated flow-through to adjusted EBITDA of approximately $30 million.

In the quarter, we actually recognized approximately $134 million of tariff refund benefit associated with fiscal 2026 duties. This slightly higher amount allows us additional flexibility to reinvest in the same priorities I outlined earlier. As we begin to execute on the reinvestments in Q3, some timing and other considerations spread a portion of the spending across 2 quarters.

We see multiple opportunities in Q4 to complete these reinvestment initiatives in targeted areas designed to drive exciting momentum in 2027 and beyond. Our updated outlook reflects this timing dynamic in tandem with our very strong core business performance. For the full year 2026, we now expect net sales to increase between 18% and 19% compared to our prior guidance of a 16% to 17% increase.

Adjusted net income per diluted share to be in the range of $6.65 and to $6.75 compared to $6.45 to $6.55 previously. Adjusted EBITDA to be in the range of $1.38 billion to $1.391 billion representing growth of 21.5% to 22.5% year-over-year compared to the prior expectation of $1.36 billion to $1.37 billion, representing growth of 19.5% and to 20.5% year-over-year.

We continue to expect net interest expense to be down relative to 2025, our GAAP effective tax rate to be approximately 22% to 23% and and capital expenditures to be between $190 million to $210 million for the year, where we are now tracking closer to the midpoint instead of the high end.

Our Q3 actuals and the high end of our updated 2026 outlook imply that in the fourth quarter of 2026, we expect our net sales growth to be up approximately 17% year-over-year. With some timing shifts of previously planned reinvestments from Q3 into Q4, we anticipate adjusted gross margins in the fourth quarter to be down approximately 100 basis points year-over-year.

Finally, the high end of our updated 2026 outlook implies that in the fourth quarter of 2026, we expect adjusted EBITDA growth in Q4 to be up approximately 9% year-over-year. It's important to reiterate that this is simply the timing of certain tariff refund reinvestments, all of which we expect to be contained in Q4.

Furthermore, these investments are intentionally designed to benefit 2027 and beyond, not 2026. Take our additional media spending as an example. When SharkNinja converts a distributor-led market to direct operations, we have a major marketing opportunity. We have the capability to ramp up advertising and media in a way the distributor partners simply cannot afford.

Historically, the spending surge leads to meaningfully increased consumer awareness of SharkNinja products. In turn, we tend to see a demand generation uptick that typically leads to sizable inflection in sales. With several countries having recently transitioned to direct operations in EMEA, we are utilizing a portion of the tariff refund windfall to target incremental media dollars in these areas.

For simplicity and clarity, consider the second half of 2026 compared to the second half of 2025. When looking at the top line and bottom line in totality based on the high end of our updated outlook, we anticipate net sales in the second half of 2026 to grow roughly 19% and adjusted EBITDA to grow roughly 25% compared with the second half of 2025.

Once again, this is consistent with our annual goal of growing adjusted EBITDA dollars faster than net sales. Our growth and profitability algorithm remains intact. Importantly, we intend to perpetuate this into next year and beyond. Our main objective remains the same: to grow adjusted EBIT dollars faster than net sales dollars in 2027. To close, our Q3 performance reflects powerful momentum across the business. All elements of our net sales engine are firing across products, geographies and channels as components of our 3-pillar growth strategy.

Most importantly, we continue to pay exceptional profitability improvement alongside top line growth. I could not agree more with the point Mark made earlier, we believe there has never been a more exciting time for SharkNinja to be in business. Thank you. With that, I will now turn it back to Mark.

Mark Adam Barrocas

Thanks, Adam. This has truly been a transformational year for SharkNinja. We've made significant strides across the board, in what we make, how we market, how we sell, how fast we learn and how far we reach. We've done all of this globally with a larger and more complex business than ever before. Investors constantly wonder how SharkNinja can keep growing at this size, and we continue to deliver.

In fact, our 21% net sales growth this quarter is right in line with our longer-term track record a 21% compound annual revenue growth rate over the last 18 years. It all adds up to one thing. SharkNinja is a consumer technology company operating at hyperscale. In my experience, consistent success requires constant reinvention and the willingness to adapt. We can't wait to show the world what we're capable of as we close out a strong 2026 and look ahead to 2027.

While Sharpening will never stop evolving, at the end of the day, it always comes back to the consumer. Everything we do is grounded in remaining true to this mantra. It keeps us diligent, ambitious and laser-focused on solving the next consumer problem. I want to express my gratitude to the more than 4,100 team members around the globe who make this possible.

Because of you, we believe SharkNinja is powerful and differentiated with an incredibly bright future ahead. Thank you. This concludes our prepared remarks, and I'll now turn it over to the operator to kick off Q&A. Operator?

Operator

[Operator Instructions] Your first question comes from the line of Randy Konik with Jefferies.

分析師問答

Randal Konik

Yes. Mark, I was just looking at our initiation report from 3 years ago, time slides. But in that report, you kind of reference your thoughts at the time on the total addressable market and the serviceable addressable market, both on a global basis and a U.S. basis.

And the numbers at the time, if I look at it on a global TAM basis, you were looking at $112 billion total addressable market and a serviceable addressable market of about $39 billion. And then on the U.S. side of things, at the time, again, 3 years ago, you were looking at a $38 billion total addressable market in the United States and a $16 billion serviceable addressable market in the United States again 3 years ago.

So if you think about where we've come from over those past 3 years around country expansion, category expansion, et cetera, how do you want us to think about changes in those numbers in terms of kind of framing up TAM and SAM today and going forward.

Mark Adam Barrocas

Yes, Randy, thanks for the question. Look, the latest thinking that we have is that our total addressable market is roughly about $130 billion, and that number continues to keep growing as we expand into new categories. I mean just with the addition of water purification and minor waves added almost $10 billion of TAM to the overall addressable market.

So if you think about our current guidance at a little under $8 billion this year, we're very, very small percentage right now of that available TAM. Now to me, and I think the biggest change from kind of 3 years ago when you and I had this conversation was, are we going to be able to really take advantage of that TAM in markets like Latin America in markets like non-English-speaking Europe.

And I think that we've really proved that over the last couple of years of consumers are responding to us as much in Chile and in Poland, as they are in the U.K. or the United States.

I mean we're obviously just still in the very early stages in those markets, but demand is strong. Consumer engagement is strong, Obviously, our distribution model is going to need to mature and improve, and we're going to need to be able to scale up more categories in those markets. So we're in the very, very early stages but for us, the main question is always, do consumers love the products.

I mean that's where everything starts. I mean if we developed a water purifier and we said, great, consumers in America love the product, but we're not really sure that consumers in Norway are going to respond to in consumers in Mexico respond to it. I think that, that is a huge change from 3 years ago that consumers are in these markets responding to it.

Our demand generation model is resonating and working in these markets. I remember people saying to me, Mark, Continental Europe is so different than anywhere else in the world, it's not so different than anywhere else in the world. I mean there's a robust direct-to-consumer business. There's a strong pure player market. TikTok Shop and social commerce is penetrating into these markets. We're in all the major brick-and-mortar retailers and we're scaling up and consumers are engaging with the content in these markets as well as they're engaging with the content in the United States or the U.K.

So I think the market is big. I think you'll expect us to get into more new categories next year that will only continue to emerge the size of the available market.

Unknown Analyst

Super helpful. My last question would be I want to talk about unpacking your comments around the core growing. I think it gets lost sometimes when we're all focused on the innovation part of your business in the new category.

But maybe talk about how you're thinking about proportion over the next few years or maybe 3 to 5 years of how much of the business is going to come from the core, how much from innovation? And based on that plus what you've talked about is framing out the customer cohorts and the customer base changing and expanding and widening that breadth do you think that, that would give you an opportunity to continue to grow double digits in the United States market over the medium to long term?

Mark Adam Barrocas

Randy, we came out of the first quarter and we grew high single digits in North America. And I got asked constantly while we're concerned about North America growth, I mean, look at what North America has done in the last 2 quarters, I mean, our North America business is on fire in these markets right now, and it is really being driven by the core by the base business.

I mean -- and it's not just enhancements. I mean, we talked about product assortment changes a year ago. assortments at retailers have gotten stale in certain categories. We talked about things that we did with the blend loss a year ago. Look what we did this year and what we did to upright vacuum cleaners and look at what we've done with the crush blocks that we launched in the last quarter to reinvent the blending category, I mean, we've got food prep back to really significant growth year-on-year in the largest category within food rates blenders and kitchen systems.

So I think between product assortment, between new products in these base categories between things like COLORZ and you're going to see a lot more prints and collectibles coming out in these categories. We're doing a lot in terms of AI work, around promotion and media analytics and segmentation. I'm really excited about the base business.

And I'll tell you, 1 of the proof points of that is -- we've got a lot of engineers that want to work on the base business. I mean they want to work on reinventing corded sticks and where corded sticks can be moving forward. It's not that everyone is kind of going to the new shiny object I mean we've got a lot of our engineering team that wants to go and really revolutionize the base business. And I think that is something that is so different in the business than it was 15, 18 months ago.

Operator

Your next question comes from the line of Brook Roach with Goldman Sachs.

Brooke Roach

Mark, in your prepared remarks, you indicated international will accelerate in 4Q versus 3Q. When I put that in the context of your 17% 4Q revenue guide, it implied a slower rate of growth in the U.S. exiting the year. Can you contextualize what you're seeing there?

Mark Adam Barrocas

Yes. Thanks, Brock. I appreciate it. I think what you saw from us in Q3 was an outstanding performance within the domestic market, right? U.S., 1 of the most impressive growth rates that you've seen all here. And so I think -- what happened in the quarter was really sales execution, operational execution, and we feel great about the holiday sell-in that's happening in Q3.

As you look into Q4, we're comping some massive social commerce numbers from last year as well. And so TikTok Shop and other avenues were alive for the first time last as well. And so exiting the year, domestic is very firmly a double-digit grower. And I think we've proven that now quarter after quarter this year.

And going into next year, the trajectory is as strong as ever, both across new categories across what social commerce is done. And to Mark's point on reinventing the core, the domestic business has a massive core component to it.

And so I think that's been 1 of the real proof points for us as we've grown the domestic businesses. what we're doing in the core is directly showing up in that domestic growth. So that will continue into '27.

And Brook, I mean, listen, we'll stand out in the quarter, and I think we'll see that in Q4 is the Walmart business, has really rebounded tremendously for us. All of our major brick-and-mortar retailers are doing really, really well. We're growing our .com business. I mean things like walmart.com bestbuy.com and target.com are doing great. Our club business is strong.

So there's really nice broad-based growth within North America. It's not coming from any 1 particular channel or retailer. And the last thing I would say is that we've really lapped all of the Canada changes. I think you're going to see really nice growth come from Canada in Q4. And I think we're set up for a strong Canada business in 2027 with a really new model in that category that's going to take on much more of a look like the U.S. business.

Unknown Analyst

Great. And then just a follow-up for Adam. Can you contextualize the underlying gross margin drivers, excluding the refund and onetime reinvestment? How should we be thinking about the biggest buckets of opportunity and headwinds across tariffs, raw materials, freight mix and pricing as we enter 2027?

Mark Adam Barrocas

Sure. I think when you think about the Q3 gross margin, certainly, the tariff refund is a big it. If you exclude the refund, gross margin would have been down around 100 basis points. That 100 basis points was really a choice that once we had visibility into the refund, we delayed any price increases we've been taking on commodity increases we've been taking on fuel.

We've been taking on FX. There's been a number of headwinds, as you mentioned. And the refund once we had line of sight, it allowed us to then delay some of those price increases. Now exiting this year and then going into 2027, the dynamic that we're looking at is some of those headwinds remain headwinds.

And this is where we've kicked off work well earlier in the year across operating expenses as well as gross margin to start to get ahead of that. I think the headwinds, there's no new headwinds over the last couple of months. It's really the same ones that we've been talking about all year. And this is again where the SharkNinja playbook is on full display in terms of looking at every single lever that we have -- and I think looking at 27% above all else, our overall growth algorithm remains unchanged, right?

It's to grow adjusted EBITDA at a faster rate than net sales, and we feel very confident in our ability to continue to do that as we go into 2027.

Operating expense leverage, that's going to be a massive component. You've seen us leverage before you've seen us leverage significantly. And then you've seen us be opportunistic when we're able to. And so this is a very dynamic business that's enabled by the diversification in which we operate. And going into 27, that will be no different.

Operator

Your next question comes from the line of Bob Derbal with BTIG.

Unknown Analyst

I guess I'd like to ask 2 questions really around similar top line. As you look at the TikTok shops, what you're seeing in the U.S., but also, I think you said up to 14 countries this holiday, how accretive do you think that can be to the business? And I guess the other sort of follow-on to that is, this is the, I think, the first year with the single website and the opportunity that you see there as well for this holiday season would be helpful.

Mark Adam Barrocas

Yes, Bob. So look, I want investors to kind of think of this as more than TikTok shop, but really think about it in terms of social commerce and kind of what is social commerce look like because we're growing on Meta. We're growing on YouTube.

There are other platforms that we're scaling -- so on the social commerce side, I think there's a few interesting dynamics. I think that 1 is the sales that we generate on the platform and the second is the sales that are generated off platform from the content that is viewed on the platform.

So there's a lot of halo and spillover. The analytics that we've done is that we believe for every dollar of on platform sales that we're generating. We're generating $2 of off-platform sales that places like Amazon and walmart.com and target.com and our D2C site are beneficiaries of this content that is being put out there on social commerce where the consumer might decide later on that they're going to buy the product, but they're not going to buy it on the platform.

The second is on the D2C business, we saw really nice D2C growth in Q3 globally. I think we're set up for a great holiday season from a D2C perspective. We're really credible destination now for the consumer to shop for our products. That is not something that I could have said globally for Christmas 2025. Our site experience wasn't great.

We had multiple sites. So I think, Bob, and we're just getting started in this. I mean we're just -- we just put an age in force. We're still working with Salesforce on implementing marketing cloud -- so I think the CRM piece of it, the loyalty piece of it are all things that into 2027, I think there's still a lot of opportunity for us to scale the D2C business and I do believe through 27 that will come in at a faster growth rate than the rest of the business.

Operator

Our next question comes from the line of Philip Lee with William Blair.

Phillip Blee

So Mark, now that you've had some time then to replatform your DTC channel, you're launching social commerce more just in international markets. How do you think about the category expansion opportunity there? You're not necessarily beholden to some of these slower open to buys at retailers now.

Could you theoretically expand at a quicker pace? Is this something we should think about accelerating more meaningful? And then how should we think about the incremental contribution there?

Mark Adam Barrocas

Well, listen, I mean we've talked about this in the past, Phil, that we can develop these great products, we can create demand. But ultimately, if we can't get the product to the end consumer, that's where it falls down.

And I think that we've always said that in places like Europe or Latin America, that we were somewhat constrained by the pace by which retailers were willing to bring on more product from us. things like DTC growth, things like social commerce, things like platforms like Allegro in places like Poland, Mercado Libre in Latin America, break down a lot of those barriers.

Now listen, there's no doubt that we want to continue to keep scaling in the brick-and-mortar retailers. But I'll give you an example. I mean this holiday season we're really excited about Spain and Italy. We have expanded placement in retailers, but I would say 50% of our product in Spain and Italy. This holiday season is only going to be available on D2C and social commerce and Amazon. So the consumer is going to have a much broader assortment from us on those platforms than they will in some of the brick-and-mortar retailers.

Now I think the brick-and-mortar retailers will catch up, but I think it will take time, but I'm excited because we're somewhat more in control of our own destiny as it relates to our ability to be able to innovate, create demand and still get the product to the consumer without the block or of the fact that it's not distributed in a particular market.

Operator

We have reached the end of the Q&A session. This concludes today's call. Thank you for attending. You may now disconnect.