Tandy Leather Factory Q2 rev. up 2.8% to $17.8mln, net loss $0.2mln.

• Tandy Leather Factory Q2 2025 revenues up 2.8% to $17.8 million • Operating income of $0.1 million, net loss of $0.2 million • Gross margins increased to 59.5%, up from 58.0% in 2024 • Operating expenses rose 5.5% to $10.5 million • Adjusted EBITDA was $0.3 million • Ended quarter with $16.4 million of cash and cash equivalents

Tandy Leather Factory, Inc. (Nasdaq: TLF) has released its second-quarter 2025 financial results, showing a 2.8% year-over-year increase in revenues to $17.8 million. Despite this growth, the company reported a net loss of $0.2 million, compared to a net income of $0.1 million in the same period last year. Gross margins improved to 59.5%, up from 58.0% in 2024, while operating expenses rose by 5.5% to $10.5 million. Adjusted EBITDA was $0.3 million, and the company ended the quarter with $16.4 million in cash and cash equivalents [1].

The company's Chief Executive Officer, Johan Hedberg, attributed the revenue growth to increased sales productivity in U.S. retail stores. However, he also noted that operating expenses increased due to leasing costs for the company's headquarters and distribution centers, which are expected to continue into the full year 2025. Hedberg also expressed concern about the potential impact of newly-announced tariffs on future sales and profits [2].

Key financial highlights include:
- Revenues: $17.8 million, up 2.8% from the previous year.
- Operating Income: $0.1 million.
- Net Loss: $0.2 million.
- Gross Profit: $10.6 million.
- Operating Expenses: $10.5 million, up 5.5% from the previous year.
- Adjusted EBITDA: $0.3 million.
- Cash and Cash Equivalents: $16.4 million.

The company's financial performance highlights the challenges it faces in managing operating expenses, particularly due to the transition to leased facilities. However, the increase in gross margins and the positive sales momentum provide some optimism for the future. Investors are encouraged to monitor the company's progress and the potential impacts of tariffs on its financial health [1].

References:
[1] Reuters. (2025). Tandy Leather Factory Q2 2025 Revenue Up 2.8%. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_PLX77D3DE:0-tandy-leather-factory-q2-revenue-up-2-8/
[2] Quiver AI. (2025). Tandy Leather Factory, Inc. Reports Second Quarter 2025 Financial Results with Increased Revenues and Operating Challenges. Retrieved from https://www.quiverquant.com/news/Tandy+Leather+Factory%2C+Inc.+Reports+Second+Quarter+2025+Financial+Results+with+Increased+Revenues+and+Operating+Challenges