Winmark Corporation reported a solid financial performance for the third quarter and the first nine months of fiscal 2025, with total revenues reaching $22.6 million for the quarter and $65.0 million for the nine-month period, marking increases of 5.2% and 5.7%, respectively, compared to the same periods in 2024. The company's net income for the third quarter was $11.1 million, slightly up from $11.1 million in the prior year, while net income for the nine months increased to $31.7 million from $30.4 million. Earnings per share for the third quarter were $3.13, down from $3.16 in the previous year, and $8.94 for the nine months, compared to $8.65.
The company experienced notable changes in its revenue streams, particularly in royalties, which rose by 7.2% to $20.9 million in the third quarter, driven by higher franchise retail sales and an increase in the number of franchise stores. However, leasing income saw a significant decline, dropping to $46,600 from $316,200 in the same quarter last year, attributed to the ongoing run-off of its leasing portfolio. Merchandise sales remained stable at $693,600 for the quarter, while franchise fees were comparable to the previous year at $417,600.
Operationally, Winmark Corporation reported a total of 1,377 franchises operating under its various brands as of September 27, 2025, an increase from 1,350 franchises at the end of 2024. The company successfully opened 44 new franchises while closing 17, resulting in a net growth of 27 franchises. The renewal rate for franchise agreements was high, with 89 out of 90 agreements renewed during the first nine months of 2025, indicating strong franchisee commitment and business health.
In terms of financial management, Winmark's selling, general, and administrative expenses increased by 11.0% to $21.1 million for the nine months, primarily due to higher compensation and marketing costs. The company ended the quarter with $39.9 million in cash and cash equivalents, up from $37.3 million a year earlier, and generated $36.4 million in cash from operating activities, reflecting improved operational efficiency. Looking ahead, Winmark anticipates continued growth in royalties and franchise openings, while managing costs effectively to enhance profitability. The company also plans to pay a special cash dividend of $10.00 per share in December 2025, further demonstrating its commitment to returning value to shareholders.
About WINMARK CORP
Winmark Corporation is a franchisor specializing in value-oriented resale retail brands, including Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round. The company supports entrepreneurs in operating franchise stores that buy, sell, and trade gently used merchandise across various categories, promoting sustainability and community recycling. Its business model emphasizes franchise growth, brand support, and value-driven consumer offerings in North America.
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