Total Revenue

+0.8%

In Q4 2025, total revenue rose modestly from $149.277M to $150.446M. This slight increase reflects the overall balance of performance: a 0.5% decline in net retail sales was more than offset by a 23% jump in commercial revenue and a 4.4% increase in international franchising revenue—a dynamic similar to the mix of strengths and weaknesses seen in earlier Q3 periods. " "

Net Retail Sales

-0.5%

Net retail sales declined from $140.191M to $139.499M. After the strong consumer engagement and transaction growth observed in Q3, the Q4 downturn likely indicates a seasonal slowdown, potential market saturation, or softer consumer spending that reversed earlier gains noted in transaction volumes and digital channels. " "

Commercial Revenue

+23%

Commercial revenue increased significantly from $7.728M to $9.529M. This robust growth is driven by continued expansion in partner-operated and wholesale channels—an initiative that built on the previous Q3 performance where commercial revenue surged by over 36% in one period and 38.8% in another—thanks to additional wholesale customers and new partner-operated stores. " "

International Franchising Revenue

+4.4%

International franchising revenue grew modestly from $1.358M to $1.418M. This increase is attributed to improved timing of product shipments and an incremental rise in location count, reinforcing the stability seen in previous periods where these factors helped maintain revenue levels despite offsetting pressures. " "

Net Income

-2.7%

Net income declined from $22.273M to $21.678M despite overall revenue gains. This drop suggests that rising SG&A expenses, along with ongoing macroeconomic headwinds and possible post-seasonal adjustments, have squeezed profit margins—counterbalancing the revenue growth seen through other channels, a contrast to earlier periods where margin expansion helped boost earnings. " "

Revenue Growth

FY 2025

no prior guidance

mid-single-digit basis "

no prior guidance

Commercial Segment Revenue

FY 2025

no prior guidance

at least 20% "

no prior guidance

Pretax Income

FY 2025

$65 million to $67 million "

low single-digit decline to low single-digit growth "

lowered

Tariff Impact

FY 2025

no prior guidance

upwards of $10 million in expenses "

no prior guidance

New Locations

FY 2025

at least 65 net new experience locations " "

at least 50 net new experience locations "

lowered

Commercial Revenue Timing

FY 2025

no prior guidance

back-half weighted revenue recognition "

no prior guidance

E-commerce Performance

Q1 saw an 11.3% decline and a challenging web traffic environment. " " In Q2, web demand dropped 28.2% but later rebounded in Q3 with double‐digit growth driven by product timing and adjustments. " " " " "

Q4 acknowledged a continued slowdown in e-commerce demand that was anticipated, with a focus on long‐term improvements through a complete omni‐channel integration. " "

Persistent online challenges remain despite tactical recoveries; the company continues to rely on strong in‐store performance as a counterbalance.

Digital Transformation

Q1 detailed a broad digital transformation with partnerships (Microsoft, Salesforce, Deloitte Digital). " Q2 and Q3 underscored the acceleration of digital and omni‐channel initiatives, including early-stage AI integration. " "

Q4 reported significant progress with integrated digital initiatives, notably partnering with Salesforce, implementing a new POS, and launching enhanced features like Record Your Voice. "

Consistent emphasis with incremental progress in leveraging technology to merge digital and physical experiences.

International Expansion

Q1 highlighted growth in new markets (Italy, China, South Africa) and partner-operated openings. " " Q2 and Q3 focused on the asset–light, partner–operated model with rapid global expansion in over 20 countries. " " "

Q4 outlined plans to open at least 50 net new locations in 2025 internationally and announced a strategic new retail experience in ICON Park, Orlando, for early 2026. " "

Steady and positive global expansion efforts continue with a strong partner–operated model driving growth.

In-store Performance

Q1 provided limited detail, though Q2 noted increasing store traffic and strong seasonal product performance (e.g. Halloween). " Q3 reported significant sales growth, with record metrics in traffic, conversion, and AUR. " "

Q4 emphasized robust in–store performance with a 3% year–over–year traffic improvement, successful seasonal marketing (Valentine’s Day, early Easter), and overall strength that offsets online softening. " " "

Continued strong performance in physical stores, which is increasingly relied upon amid weaker online sales.

Cost Pressures

Q1 discussed rising wages and an increase in SG&A expenses. " " Q2 and Q3 elaborated on inflation, higher medical costs, and tariff concerns impacting costs. " " "

Q4 reiterated significant cost pressures—tariffs expected to add around $10 million in expenses, along with rising wages and medical costs—forcing strategic inventory and pricing adjustments. " " "

Persistent and mounting cost pressures reflect a challenging operating environment year–over–year.

Strategic Collaborations

Q1 mentioned movie tie–ins and international partner expansions. " " Q2 emphasized high–profile partnerships with Sanrio and Varsity Spirit. " Q3 highlighted the success of the Sanrio collaboration and further international partnerships. " " "

Q4 focused on leveraging strategic collaborations to expand globally through partner–operated and franchise models, as well as diversifying the supply chain. " "

Steady and positive focus on collaborations remains a key growth lever, sustaining momentum over multiple periods.

Supply Chain Challenges

Q1 provided basic inventory level commentary. " Q2 discussed the challenges of managing seasonal items and the need to stagger inventory for optimal flow, while beginning efforts to counter tariff impacts. " " Q3 highlighted proactive inventory management, accelerated core product purchases, and geographic diversification. " "

Q4 continued to detail supply chain actions—diversifying away from high–tariff regions, accelerating inventory purchases, and managing timing challenges due to new store openings—to mitigate cost risks. " " "

Ongoing challenge that the company is addressing through strategic adjustments and diversification, remaining a critical focus area.

Strategic Acquisitions

Q2 noted that while the company is open to additive or synergistic acquisitions, it referenced a past large acquisition in the U.K. that still underpins current operations. " Q1 and Q3 did not emphasize acquisitions.

Q4 did not mention acquisitions at all.

Diminished focus on acquisitions as part of the growth strategy, suggesting a shift toward organic and partnership–driven expansion.

Consumer Behavior – Lower-priced Products

Q1 featured comments about a shift toward entry–price points and lower-priced products, with DPT declines noted. " Q2 introduced Mini Beans successfully, highlighting strong add–on purchase dynamics. "

Q4 contained only limited mention via Mini Beans sales figures (over 1.25 million units sold) without further elaboration on consumer behavior trends. "

Earlier emphasis on lower-priced product trends has become less pronounced, implying a potential normalization in consumer preferences.

External Macroeconomic & Political Uncertainties

Q1 and Q2 referenced economic uncertainty impacting web traffic and noted election–year challenges with choppiness in comparisons. " " " Q3 indirectly mentioned wage and inflation pressures. "

Q4 explicitly acknowledged macroeconomic and political uncertainties—including tariff impacts, inflation, and broader external risks—but maintained confidence in navigating them. " " "

Consistent external uncertainties persist with more explicit acknowledgment in Q4, though management remains cautiously optimistic.