WINMARK CORP SEC 10-Q Report
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Winmark Corp, a leading franchisor of retail stores, has released its Form 10-Q report for the second quarter of 2025, showcasing robust financial and operational performance. The company's growth was driven by increased royalty revenues and effective cost management, reflecting its strong market position and strategic focus on franchise expansion.
Financial Highlights
- Total Revenue: $42.3 million, increased from $40.2 million in the same period of 2024, driven by higher royalties and franchise fees.
- Income from Operations: $26.7 million, up from $25.2 million in the first six months of 2024, reflecting increased royalty revenues.
- Net Income: $20.6 million, compared to $19.3 million for the same period in 2024, primarily due to increased revenue and effective cost management.
- Earnings per share - basic: $5.81, up from $5.49 in the first six months of 2024, indicating improved profitability per share.
- Earnings per share - diluted: $5.60, compared to $5.26 in the same period of 2024, reflecting the company's strong financial performance.
Business Highlights
- Franchising Segment Performance: The franchising segment's operating income for the second quarter of 2025 increased to $13.0 million from $12.6 million in the same period of 2024, driven by increased royalty revenues despite higher selling, general, and administrative expenses.
- Franchise Store Growth: As of June 28, 2025, the company had 1,371 franchises operating under its various brands, with a net increase of 21 stores during the first six months of 2025. This growth was primarily due to new store openings across the brands.
- Franchise Renewal Activity: The company successfully renewed 60 out of 61 franchise agreements available for renewal in the first six months of 2025, indicating strong franchisee satisfaction and business continuity.
- Leasing Segment Performance: The other operating segment income for the first six months of 2025 increased to $2.3 million from $1.2 million in the same period of 2024, largely due to the settlement of outstanding customer litigation in the equipment leasing business.
- Operational Focus: The company continues to focus on supporting franchise partners to enhance their revenue generation, opening new franchises, and controlling selling, general, and administrative expenses to drive operating income growth.
- Future Outlook: The company anticipates that leasing income net of leasing expense will be lower during the remaining quarters of 2025 compared to the last two quarters of 2024, as the run-off of the leasing portfolio is substantially complete.
SEC Filing: WINMARK CORP [ WINA ] - 10-Q - Jul. 15, 2025