SharkNinja, Inc.

Hello, everybody, and welcome to the Shark Ninja's fourth quarter 25 and FY25 earnings call. My name is Elliot, and I'll be coordinating your call today. If you would like to register a question during today's event, please press star 1 on your telephone keypad. I'd now like to hand over to James Lamb, Senior Vice President of Investor Relations and Treasury. Please go ahead.

Good morning, and welcome to Shark Ninja's fourth quarter 2025 earnings conference call. Earlier today, we issued our Q4 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 Q4 and full year 2025 financial results and share our outlook for 2026. Mark will then offer some closing remarks before we open the call up to questions. During the Q&A session, please limit yourself to one question and one follow-up. I would now like to turn the call over to Mark.

Thank you, James. Good morning, everyone, and thank you for joining us today. 2025 concluded on a high note for Shark Ninja. It was an outstanding holiday season driven by broad-based strength across product categories, geographies, and channels. A remarkable fourth quarter and full-year performance reflect many factors, but the simplest are the most crucial. Consumers want Shark and Ninja products, and they're discovering them in more places than ever before. We believe we are meeting consumers where they are by delivering accessible innovation and exceptional value. We're incredibly proud of what Shark Ninja accomplished this year. Record financial results, swift and decisive execution, and an ever-growing array of groundbreaking products that consumers love. Our most important objective this year and every year is building trust with consumers. We win when consumers around the world get excited to buy our products and feel delighted when using them. To this day, nothing makes me happier than reading a five-star review online, and nothing gets me more motivated than feedback telling us where we can improve. Obsession with the consumer is in our DNA. It powers everything we do. We believe that when we successfully captivate consumers, we earn permission to expand further into their lives. With a never-ending spectrum of consumer problems to solve, we feel the opportunity ahead of us is enormous. Our Q4 results were excellent across the board, with net sales increasing nearly 18% year over year, the fastest growth rate of 2025. Domestic growth accelerated to almost 16%. COMPLEMENTED BY INTERNATIONAL GROWTH OF OVER 21%. ADJUSTED GROWTH MARGIN EXPANDED BY NEARLY 40 BASIS POINTS. AND ADJUSTED EVEN DOT INCREASED 36% YEAR OVER YEAR. THIS PERFORMANCE REFLECTS OUR THIRD CONSECUTIVE QUARTER OF LEVERAGE IN ADJUSTED OPERATING EXPENSES AS A PERCENTAGE OF NET SALES. A PATTERN WE BELIEVE DEMONSTRATES THE SCALABILITY OF OUR MODEL. This performance came against a challenging macro backdrop. While our markets remained under pressure throughout 2025, on top of declines in both 24 and 23, we continued to rapidly gain share. According to Cercana, the total U.S. market that we participate in declined in the low single digits year over year for the full year of 2025, excluding Shark Ninja's performance. Q4 was even more challenging for the industry, with mid-single-digit declines year over year, again excluding Shark Ninja. The magnitude of our outperformance is noteworthy, with market share gains across each of our four category groupings in 25, cleaning, cooking and beverage, food preparation, and beauty and home environment. Despite macro headwinds, Shark Ninja delivered its 11th consecutive quarter of double digit top line growth. And we did it while staying true to our core strategy, continuing to invest to drive innovation and maintaining our marketing momentum. We kept executing the same tried and true playbook, even with every challenge presented in 2025. In the face of uncertainty, our goal is consistent execution and durable performance. not just for one quarter, but for every quarter. We're confident in our ability to operate effectively in tough consumer environments, and diversification is a central reason why. Diversification is the foundational driver of success across our business. The most obvious benefit is revenue growth. We have more products, more channels, and more geographies, giving us multiple paths to expand. I'll return to this when I discuss our three pillar growth strategy. But first, let's look at the several ways diversification differentiates Shark Ninja, starting with the consumer. Consumer diversification allows us to reach a broader demographic than ever before. Years ago, our core customer was typically a 35 to 55 year old woman. Today, we have high school students asking for Shark Ninja products for the holidays. 60-year-old men sharing product reviews on social media and everything in between. As we enter new categories, especially in beauty and outdoor, we expect this reach to expand further. Most importantly, a more diverse consumer base generates deeper insights that fuel our disruptive innovation engine. Supply chain diversification is another major differentiator. Our work here began more than five years ago, driven by significant investment in people, infrastructure, and time. Today, we have the ability to manufacture nearly 100% of our US volume outside of China. We think our multi-country sourcing footprint across Southeast Asia gives us meaningful advantages in supply predictability, cost efficiency, and risk management. With this supply chain transformation largely complete, 2026 represents our first full year of optimization, unlocking even greater potential benefits ahead. Marketing diversification continues to expand our reach and engagement. From Tom Brady spots during major football events on connected platforms to our engineers engaging directly with consumers on forums like Reddit, Shark Ninja's marketing ecosystem is both expansive and distinctive. Our social-first ecosystem has been deliberately built to foster affinity and loyalty amongst consumers. One analyst recently highlighted our social media momentum. Shark Ninja reached 3.9 million followers across Instagram and TikTok in 2025, reflecting 119% year-on-year growth. far outpacing peers who average just 8% growth on these platforms on a much smaller base of followers. Reaching consumers broadly requires an equally diversified go-to-market strategy. In 2025, we deepened partnerships with key retailers, gaining increased flexibility in pricing and promotions. At the same time, we significantly enhanced our direct-to-consumer capabilities. Our newly redesigned sharkninja.com is already delivering strong early results with higher engagement, improved conversion, and increased average order value. Finally, investment diversification, particularly in technology, is strengthening our foundation for long-term growth. In 2025, we completed the final stages of our global Oracle implementation. We launched Salesforce in the US and Canada to power our new DTC platform, and we rolled out advanced ROI dashboards for social media spending. We also leaned in materially with artificial intelligence from product innovation to consumer experience. Our goal is to embed a greater level of AI capabilities in all of our products going forward, some of which will debut as early as the second half of 2026. in categories like coffee, air purification, and robotics. We're on track to hire 100 new software engineers to help drive this AI ambition. From more intelligent user interfaces to greater automation to app-based companion features, we believe consumer experience is another rich area of AI power potential. As an example, we moved from sampling under 5% of contact center calls to AI scoring nearly 100% of interactions for quality, empathy, and listening. Additionally, we feel the massive amount of consumer insight data that Shark Ninja processes can benefit from AI applications. Our objective is faster, more precise product innovation and improved messaging and content to resonate in a stronger way with consumers. This is the shark ninja flywheel. Consumer insights, a resilient global supply chain, always-on marketing, and omni-channel distribution. We believe it's a competitive advantage that's exceedingly difficult to replicate at our scale. The diversification shows up very clearly in our financial results. Sustained double-digit growth, expanding margins, and strong free cash flow. I'd like to spotlight our balance sheet, where years of compounding success have put us in a net cash position as we exit 2025, an achievement that opens meaningful new options for Shark Ninja. Today, the leadership team and I are thrilled to announce that our board of directors has authorized an inaugural $750 million share repurchase program. We're excited about the potential that our record levels of cash and equivalents and our anticipated future cash flow could have to drive shareholder value for years. We intend to utilize this authorization to repurchase shares opportunistically while also planning to offset the natural dilution from stock-based compensation. We believe this is a significant milestone for Shark Ninja and a testament to our operational discipline and cash management execution. With that, let me turn to our three-pillar growth strategy, beginning with our first pillar, expansion into new and adjacent categories. In 2025, we met our goal of entering two additional subcategories. 38 with the additions of propane grill and outdoor fire pit. We plan to add two more categories to our portfolio in 2026 with significant excitement around both launches. Category expansion is one of our most foundational differentiators. It grows our addressable market and reshapes how consumers perceive the Shark and Ninja brands. A standout example is Shark Beauty, which we feel is rapidly emerging as a leader in beauty technology. We view this opportunity as a massive global white space. In 2025, we established Shark Beauty as a disruptive innovator in skincare, with the global launch of Shark PrioGlobe and the recent debut of Shark Facial ProGlobe with Depuffy, our revolutionary at-home hydro-powered facial device with contrast therapy. These products were runaway holiday successes, complementing our strong hair care performance and helping to cement Shark Beauty as the number one skincare facial device brand in the U.S. we see clear runway ahead, not only in hair and skin, but across the broader health and wellness ecosystem. The Ninja FireSide 360, our combo smokeless fire pit and propane-powered outdoor space heater, exemplifies how new categories bring new consumers into our brands. For many buyers, this innovative product was their first Ninja purchase. opening the door to a lifetime relationship with Shark Ninja. It also demonstrates how we built new technical competencies. By investing in propane expertise, we successfully paved the way to launch the Ninja Flex Flame and Ninja Fireside 360, creating a foundation for future innovation. This model, engaging experts, learning deeply, and innovating boldly is core to Shark Ninja. It underpins our expansion across heated cooking, frozen treats, food prep, and beyond. We believe our 2026 pipeline also reflects years of capability building, and we're exceptionally excited about what lies ahead. Our second growth pillar is growing shared existing categories. Maintaining leadership in large, mature categories requires relentless innovation, execution, and focus. Two standout examples from 2025 are the Ninja Crispy and the Ninja Luxe Cafe. Ninja Crispy represents the next generation of air frying, promoting healthier cooking with the benefits of glass. Our larger format Crispy Pro delivered a strong holiday performance, setting the stage for broader global expansion in 2026. Ninja Lux Cafe is one of the most exciting success stories. By reimagining the at-home espresso experience, we've created the best-selling espresso SKU in the United States in under one year. In 2026, we will extend this platform with two major renovations, positioning Lux Cafe as a powerful growth engine across a wider spectrum of consumers. Our Shark Cleaning franchise also delivered outstanding results with continued market share gains across corded and cordless vacuums. In 2026, we plan to introduce breakthrough innovations across several legacy categories, including corded uprights and traditional blending, reinforcing our leadership positions. Our third pillar, international expansion, delivered another year of strong performance. The most important takeaway is that our model can scale globally. We believe the most critical parts of our strategy are applicable worldwide, not just to a few countries. Driving widespread consumer demand with five-star reviews, expanding retail partnerships, and producing viral local language marketing are all key elements to our international playbook. These attributes can be scaled even more as we evolve from a distributor-led to a direct model in more countries. In Q4, we successfully transitioned to direct operating businesses in the Nordics, Poland, and Benelux, while preparing to convert Italy and Spain in the first half of 2026. In each case, we've established a hybrid model, distributor partnerships to serve fragmented customers and a direct relationship with the larger retailers. At the same time, we're upgrading our DTC platforms across major international markets, creating a powerful growth combination. The UK delivered another strong quarter with over 9% year-over-year growth, while EMEA saw robust results across multiple geographies and channels. Our Latin America business also performed exceptionally well. In Mexico, we believe triple-digit growth underscores the strength of our momentum and the exciting opportunities ahead. The success that we're seeing across Latin America is fueling consumer interest for our products in places we don't currently sell, like Ecuador and Peru. In 2026, we're focusing more attention on expanding our reach by ramping a new partnership with the dominant e-commerce player in the region. Stepping back, diversification remains the central theme. While it introduces complexity, it is powered by constants, experienced leadership, an innovation-driven culture, unwavering consumer focus, and disciplined execution. This approach has enabled us to build two multibillion-dollar brands, and we believe we're only at the beginning. This momentum carries directly into our outlook for 2026 with yet another year of double digit growth reflected in our net sales guidance. We also remain committed to expanding profitability on the adjusted EBITDA line with an even faster rate of expected growth versus top line. As our track record demonstrates, Shark Ninja is focused on delivering consistent quarter after quarter performance. With that, I'll turn it over to Adam who will walk you through our financial results and share our outlook for 2026.