SharkNinja, Inc.

Hello everyone, thank you for joining us and welcome to the Shark Ninja 3rd Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to James Lamb, Senior Vice President of Investor Relations and Treasury. James, please go ahead.

Good morning and welcome to Shark Ninja'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 Barrocas, 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 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. Hardworking and never satisfied. At Shark Ninja, 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 marked Shark Ninja'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%. Thank you for joining us. In our view, this kind of growth at 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 three Shark Ninja differentiators, diversification, strength in 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 Shark Ninja must continuously reinvent the ways we operate. Where other companies may resist change, we embrace new challenges head on. Thank you for joining us. Shark Ninja 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 Shark Ninja 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 one 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 a spider web with threads running back and forth and 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 UK 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 a 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 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 Shark and Ninja 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 MercadoLibre in Latin America and Allegro 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 Shark Ninja 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 manage using proprietary technology and KPI dashboards that we have developed. These social commerce efforts don't just benefit their respective platforms. They help fuel a demand flywheel for Shark Ninja 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 US retailer sites is up more than 30% year-over-year. We believe Shark Ninja's capabilities as a global consumer technology company deepen our omnichannel competitive advantage. Next, how fast we learn. We have always moved fast at Shark Ninja, but AI is supercharging our capabilities across the organization. Our internal AI proliferation initiative, Jailbreak Shark Ninja, 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 two 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 two 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 profits, and contribution margin. The dawn of agentic commerce is another major opportunity for Shark Ninja. 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. Agenda Commerce is another area where we believe our scale is a meaningful differentiator versus our peers. Finally, how far we reach. Thank you so much for having me. Based on our internal data and external sources, such as Circana'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 isn't concentrated in one age group, one income level, or one 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 two years to the high single digit range. This is significantly faster than the next fastest cohort, with the Shark and Ninja 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 Shark Ninja. We're developing that relationship earlier than ever with a long runway to deepen it. When looking at cohorts by household size, penetration grew fastest in families with four 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 Shark Ninja. 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 Shark Ninja 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 three URLs into one 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 one 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. Shark Ninja 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 three-pillar growth strategy, beginning with our first pillar, expansion into new and adjacent categories. In August, we launched the Ninja HydroSense, 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 Ninjahydrasense is designed to be an innovative disruptor. Our new precision pressure technology removes up to 10 times 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 Ninjahydrasense 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 posts testing the HydroSense 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 HydroSense 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. Shark Ninja doesn't just introduce products. We launch consumer technology franchises. And we always strive to bring a differentiated 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 Shark Ninja is at its best when people ask, why didn't anyone else think of this? Looking into 2027, we're committed to entering two additional new subcategories to build on our 41 today. The ability to repeatedly and successfully introduce new and adjacent categories is one of the biggest differentiators for Shark Ninja. 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 at Shark Ninja. 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 AquaReach vacuum mop, and the Ninja Crush Boss 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 Shark Ninja to be a disruptor time and time again. Consistently delivering on product development is key, and we're increasingly confident that the Shark Ninja machine is built to do this broadly. The Ninja Multipot is one of the best-selling launches we ever had. The Ninja Preppy went from zero to 10 million impressions on social media at a speed that impressed even us. These two 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, Shark Ninja's 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 UK 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 Shark Ninja 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 DTC upgrades and TikTok shop launches have exceeded our expectations to date. We remain on track to be live with TikTok shop in 14 countries ahead of the holiday shopping season. This increasingly robust omni-channel approach gives us confidence that international net sales growth can re-accelerate year over year in Q4 relative to Q3. That brings me back to where I started. What sets Shark Ninja apart 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 Shark Ninja 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 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 in every home around the world. Our guidance raised 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.