Executive Summary
Executive Summary: In QQ1 2025, Under Armour reported initial quarter results reflecting a meaningful top‑line decline and persistent profitability headwinds, even as liquidity remains robust. Revenue reached $1.1836 billion, down 24.45% year over year and 11.14% quarter over quarter, with gross profit of $562.7 million and a gross margin of 47.54%. Operating loss of $299.7 million and net loss of $305.4 million produced an EPS of −$0.70. The negative operating and net margins underscore ongoing fixed-cost leverage challenges in a softer demand environment. On the plus side, the company generated operating cash flow of $153.0 million and free cash flow of $107.3 million, supported by a strong cash position of approximately $903.2 million and a net debt position of −$289.2 million, providing balance sheet flexibility to navigate near‑term volatility. Balance sheet strength is complemented by sensible working capital dynamics as indicated by days sales outstanding (52.1), days inventory outstanding (162.3), and a cash conversion cycle of about 113 days.
Key Performance Indicators
QoQ: -11.14% | YoY:-24.45%
QoQ: -6.12% | YoY:-25.18%
QoQ: -4 541.19% | YoY:-305.63%
QoQ: -115 591.67% | YoY:-378.64%
QoQ: -116 566.67% | YoY:-391.67%
Key Insights
Revenue: $1,183,665,000; YoY change: −24.45%; QoQ change: −11.14%; Gross Profit: $562,675,000; Gross Margin: 47.54%; Operating Income: −$299,728,000; Operating Margin: −25.32%; Net Income: −$305,426,000; Net Margin: −25.80%; EBITDA: −$241,812,000; EBITDA Margin: −20.43%; EPS: −$0.70; Weighted Avg Shares: 435.693 million; Cash Flow from Ops: $152.975 million; Free Cash Flow: $107.294 million; Capex: $45.681 million; Cash at End: $903.161 million; Total Assets: $4.860 billion; To...
Financial Highlights
Revenue: $1,183,665,000; YoY change: −24.45%; QoQ change: −11.14%; Gross Profit: $562,675,000; Gross Margin: 47.54%; Operating Income: −$299,728,000; Operating Margin: −25.32%; Net Income: −$305,426,000; Net Margin: −25.80%; EBITDA: −$241,812,000; EBITDA Margin: −20.43%; EPS: −$0.70; Weighted Avg Shares: 435.693 million; Cash Flow from Ops: $152.975 million; Free Cash Flow: $107.294 million; Capex: $45.681 million; Cash at End: $903.161 million; Total Assets: $4.860 billion; Total Liabilities: $3.0439 billion; Total Equity: $1.8166 billion; Net Debt: −$289.168 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.18B |
-24.45% |
-11.14% |
| Gross Profit |
562.68M |
-25.18% |
-6.12% |
| Operating Income |
-299.73M |
-305.63% |
-4 541.19% |
| Net Income |
-305.43M |
-378.64% |
-115 591.67% |
| EPS |
-0.70 |
-391.67% |
-116 566.67% |
Key Financial Ratios
operatingProfitMargin
-25.3%
operatingCashFlowPerShare
$0.35
freeCashFlowPerShare
$0.25
Management Commentary
Earnings call transcript data for QQ1 2025 was not provided in the dataset. As a result, management themes and quotes could not be extracted. When a transcript becomes available, key themes to capture include: (a) path to profitability and operating leverage, (b) progress on direct-to-consumer (DTC) growth and inventory management, (c) cadence of cost containment and gross margin improvement, (d) commentary on international expansion and channel mix, and (e) any guidance updates or cadence for capital allocation.
Forward Guidance
No explicit QQ1 2025 guidance is included in the provided data. Consequently, the forward-looking assessment relies on sector dynamics and the company’s near-term profitability trajectory implied by the quarterly results. Key factors to monitor include: (1) revenue stabilization or growth in core regions (NA and international markets) and improvement in wholesale vs. DTC mix, (2) ongoing cost discipline to improve operating leverage, (3) gross margin expansion through product mix optimization, pricing actions, and supply-chain efficiency, (4) working capital management to reduce cash conversion cycle, and (5) capital allocation strategy (share repurchases, debt management, and investment in growth initiatives). Baseline view: if operating expenses can be contained and revenue shows stabilization, Under Armour could move toward EBITDA breakeven or modest profitability in subsequent quarters; downside risks include continued demand softness, aggressive promotions compressing margins, and currency/headwinds impacting international sales.