SharkNinja, Inc. Canaccord Genuity's 46th Annual Growth Conference

It does not feel easy, that is for sure. Honestly, I think you look at Q2. Q2, I think, is very emblematic of what we set out to do every year, right? It is broad-based growth. It is not any one category. It is not any one country. It is not any one thing that we are going after. I think at any given quarter, we are going after 10, 12 different things, right?

Right. I think Q2 is a good example when things go right, that is a 22% growth quarter for us.

We are setting out to do that. It is hitting on new categories, it is hitting on existing categories, it is hitting on innovations in the base. It is hitting on international. Look at the U.S. business, right? I think we are most excited, if I were to choose one thing, don't tell the international team, but the U.S. growth of 18%, I think, is something that is really a proof point in the strength of the business right now. For us, I think Q2 was great in many regards. We knew we had some tough comps coming into it from Q2 last year, where we pulled a lot of levers in order to start offsetting tariffs. The team did an incredible job and feeling great about those results.

Yeah, going back to first week of April, right, when Liberation Day hit, we mobilized the entire organization. We have talked a lot about this, that whole week was orienting around finding 1,500 different initiatives to help offset tariffs, from pricing to costing, operating expense. The entire P&L was looked at, and we took a lot of actions right out of the gate. Again, I think that is part of what made Q2 a tough comp in some regard. By putting everything on the table early and then also acting on price, acting on cost, acting on OpEx early, we were able to give ourselves flexibility as those rates inevitably changed throughout the year. That moment was also very representative of how SharkNinja operates.

You look at some of the AI work we've done and some of the jailbreak posts that Mark has shared on LinkedIn and other forums. When there's an opportunity, when there's a problem, we mobilize.

Right. We don't sit around and wait and evaluate it.

We just start moving because inevitably it's easier to change direction when you're already moving. That's always been sort of our idea. When you think about now getting the refund, to recap, $247 million is what's been accepted by the U.S. Customs and Border Protection. It has not been paid yet, but that's what we've filed for and has been accepted. We do expect to book that in Q3. We will treat about half of that related to 2025 as an add back in the year, so we'll adjust that out of 2026. We've been working with EY to determine what is related to 2025 versus what's related to 2026. Based on inventory turns, it's about half and half. The other half that we keep within 2026, that's an opportunity.

There's kind of four buckets that I think about of where those dollars go. The first bucket is we did disproportionately raise our guidance. Operationally, we raised sales a good amount. You saw a good amount of flow through from EBITDA. On top of that operational performance, we're then flowing through another roughly $30 million of EBITDA related to the tariffs. That's kind of the first bucket. The second bucket is the macro headwinds have persisted. Tariffs are now 12.5%. They were 10%, kind of 0%, but now they're 12.5%. That 2.5% delta is a new hit to the back half of the year. Part of it's going to offset that. Not a huge number, but it's a number. The other piece is commodities. Commodities have stayed elevated. It's not just resins with the Middle East crisis. It is aluminum, it's silver, it's copper.