Interface, Inc. Reports 5.9% Revenue Growth in Q3 2025, Increases Full Year Outlook

Interface, Inc. reported a solid financial performance for the third quarter and the first nine months of fiscal 2025, with consolidated net sales reaching $364.5 million, a 5.9% increase from $344.3 million in the same period last year. For the nine months ended September 28, 2025, net sales totaled $1.037 billion, up 5.8% from $980.6 million in the prior year. The growth was primarily driven by increased customer demand, particularly in the healthcare and corporate office segments, along with higher average sales prices. The company’s operating income for the third quarter was $53.4 million, compared to $42.2 million in the previous year, while net income rose to $46.1 million, or $0.78 per diluted share, from $28.4 million, or $0.48 per diluted share.

In terms of operational metrics, Interface saw a notable increase in gross profit margins, which improved to 39.4% in the third quarter of 2025 from 37.1% in the same quarter of 2024. This improvement was attributed to a favorable product mix and manufacturing efficiencies that offset rising raw material costs. The company’s selling, general, and administrative expenses also increased, reflecting higher variable compensation and labor costs, but remained stable as a percentage of net sales at 24.8%.

Interface's balance sheet showed significant growth, with total assets increasing to $1.331 billion as of September 28, 2025, up from $1.171 billion at the end of the previous fiscal year. Cash and cash equivalents more than doubled to $187.4 million, while accounts receivable and inventories also rose, indicating strong sales performance and expectations of continued demand. The company’s long-term debt stood at $307.3 million, slightly up from $302.3 million, reflecting ongoing investments in growth.

Strategically, Interface has been focusing on enhancing its product offerings and expanding its market presence. The company has continued to invest in manufacturing automation and robotics, which contributed to a $25.5 million cash outflow in investing activities for the nine months ended September 28, 2025. Additionally, the company repurchased 250,000 shares of its common stock at an average price of $20.57 per share as part of its ongoing share repurchase program, which has a total authorization of $100 million.

Looking ahead, Interface has increased its outlook for the full fiscal year 2025, anticipating continued net sales growth despite a challenging global macroeconomic environment. The company expects to manage tariff costs through pricing and productivity initiatives while maintaining sufficient liquidity to meet its obligations. As of October 19, 2025, the company reported a backlog of unshipped orders valued at approximately $244.4 million, indicating a strong demand pipeline moving into the fourth quarter.