SharkNinja, Inc. 2026 Q2 Earnings Call

James, please go ahead. Good morning, welcome to SharkNinja's second quarter 2026 earnings conference call.

Earlier today, we issued our Q2 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 Q2 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, thank you for joining us today. Let me get right to it. Q2 was a blowout quarter for SharkNinja. We delivered our 13th consecutive quarter of double-digit net sales growth. We accelerated to over 22% growth year-over-year. This is our fastest growth rate since Q4 2024. Here's the key takeaway. SharkNinja's products are resonating globally, not in one category, not in one region. Across consumer demographics, across geographies, across channels. Everywhere we compete, we are winning by engaging and delighting consumers. We believe this quarter demonstrates the global power of our diversified business model in action. Domestic net sales grew more than 15% in Q2, a meaningful step-up from last quarter, with first half 2026 net sales up greater than 12%.

International grew nearly 37%, fueled by the U.K., Europe, and Latin America. Every cylinder in our engine is firing, powered by our diversified three-pillar growth strategy. Just as important, our profitability performance was exceptional. Gross margin beat our expectations, even as tariffs remained a real headwind. Adjusted EBITDA increased nearly 19% year-over-year, driven by another quarter of leverage on adjusted operating expenses. Adjusted earnings per share increased nearly 30% year-over-year. Clear proof that we're compounding earnings, not just growing sales. I want to be direct. When some investors ask me about SharkNinja's growth, I can sense some skepticism. It's hard to believe that double-digit growth in a business our size in a market that isn't growing much can be durable.

Today, I will explain why we believe it is. Why it comes down to the most misunderstood part of our business, the size and strength of our core. When people think about SharkNinja's growth story, they often think about new innovations we bring to market, like SLUSHi, CryoGlow, ChillPill, the products that go viral. There is a misperception that these subcategories are an outsized part of the business that requires enormous growth to drive total sales, and that their success comes from SharkNinja effectively pioneering these markets in a way that isn't repeatable. Category expansion is a real and important part of our story. It overlooks what really powers our success. The base business franchises like vacuums, blenders, and air fryers, the products consumers already know us for, are very large categories. They're diversified. They are growing, not flat, not managed for decline. Growing. Here's a simple way to think about our growth.

On average, over the last three years, our existing categories typically grow mid-to-high single digits. Layer on international expansion, layer on new category launches, add those three together. You can get a double-digit growth profile. That's not a fragile formula built on one or two hit products. That's a durable compounding growth engine with multiple sources of fuel. The three-pillar growth strategy that has been in place for years. One we intend to keep running for years to come. Success within the core is the centerpiece of this strategy. It comes from relentless innovation in the areas we already dominate. Cleaning is a great proof point this quarter, with multiple product launches. The Shark Home Luxe Collection brings elevated new finishes to our flagship PowerDetect robot and cordless vacuums.

The Shark CarpetForce lineup debuted to give consumers powerful deep cleaning in a lightweight, ultra-compact design. The Shark PowerDetect Transformer is a true game changer that brings together three cleaning tools in one: an upright for deep cleaning, a stick vacuum for maneuverability, and a handheld for above-floor and tight spaces like the car. That's three meaningful innovations in a single quarter inside a category we've sold for decades. This is emblematic of SharkNinja, driving continuous innovation within the largest categories we compete in. It's a big reason our core isn't just holding steady, it's thriving. Motorized kitchen appliances are another great example. This quarter, our blending franchise drove excellent growth within the food preparation category. The Ninja BlendBoss, a complete reinvention of our tumbler blender, has reinvigorated our business in this subcategory.

Consumers are responding to the product's unique combination of power and function, not to mention personal style, in a big way. Colors have also been a huge win for the Ninja BlendBoss, another element that keeps this part of our blending franchise thriving. There's a second idea I want to leave you with today, because I believe it's just as important as the strength of our core. SharkNinja is not a cleaning company or a kitchen appliances company. We're a consumer problem-solving company. That is the lens through which we approach every aspect of our business, and the number of consumer problems left to solve is, for all practical purposes, endless. Every category we've ever entered started the same way. Not with a product we wanted to create, but with a problem we noticed.

A soggy sandwich in a cooler, a hot styling tool that damages hair, a stain a traditional cleaner couldn't lift. That mindset doesn't run out. It compounds. The bigger and more diversified we get, the more problems we're positioned to see and solve first. That's why I don't think about our core and our new categories as two separate stories. They're the same story told at different stages. Cleaning is new every single quarter because we keep finding fresh problems inside of it, our newest categories will eventually mature into core, the same way things like Ninja CREAMi have, which I'll come back to later. Our focus on the core shows up in how we drive innovation, not just how we talk about it. Roughly 20 of the 25 new products we launch each year go into existing categories. That's deliberate. A vibrant, healthy base business is what powers everything else we do at SharkNinja.

That core doesn't sit still. It gets larger and more diversified every year as we layer on new categories, channels, and geographies. That's the strength of our core today. I want to spend a minute on two things I believe will extend that advantage for years to come. First, channel expansion, specifically social commerce. Platforms like TikTok Shop aren't just a place to sell our newest, most viral products. They're becoming a front door for entirely new customers to discover our core products for the first time. One of my favorite examples is cutlery, a category we've been in for almost five years. Our Ninja NeverDull knife system have become a smash hit on TikTok Shop in the U.S., with this channel now in the top three for sales in the category.

Even better, we're appealing to a mostly younger demographic than we typically see purchasing these products. Social commerce represents a new promising acquisition channel for many of our oldest, largest categories, and it's one that we're scaling globally. At the end of the quarter, we were live with TikTok Shop in seven countries, compared to zero in the year ago period. We're not stopping there. With a goal of more than double that number by this holiday season. Second, artificial intelligence. Last quarter, we described Jailbreak SharkNinja, our initiative that encourages and rewards employees for developing AI tools. One of the most tangible places we're seeing it pay off is product development. AI is compressing the fuzzy front end of innovation. That phase where we conceptualize a product's form, factor, and style. That used to take months. It's getting shorter. Faster iteration should enable a stronger overall pipeline, not just for splashy new categories, but mainly for the core.

AI is also meaningfully enhancing our consumer insights team. Increasingly, we can see the full conversation, not just our own channels. The best marketing we have is our consumers. They're sharing recipes, building fan communities, and turning our products into a cultural moment. Previously, we could only fully analyze content where people used our hashtags, but less than 20% of user content actually uses hashtags. AI has meaningfully improved our ability to process social media content and find our products. Today, AI has lifted our capture rate to 60%-plus accuracy across the full ecosystem of users, influencers, and creators engaging with our brand organically. This gives us a more complete real-time view of what's driving demand, and it's increasingly shaping both our marketing and product development strategy.