Tandy Leather Factory Reports Q2 GAAP EPS of -$0.02 and Revenue of $17.8M

Tuesday, Aug 12, 2025 4:38 am ET1min read

Tandy Leather Factory reported Q2 GAAP EPS of -$0.02, with revenue of $17.8M, a 2.8% YoY increase. The company generated operating income of $0.1 million and a net loss of $0.2 million, compared to a net income of $0.1 million in 2024. Gross margins improved to 59.5% from 58.0% in 2024, while operating expenses rose 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.

Tandy Leather Factory (NASDAQ: TLF) reported its second-quarter 2025 financial results, showing a net loss of $0.2 million, compared to a net income of $0.1 million in the same period last year. The company's revenue increased by 2.8% year-over-year (YoY) to $17.8 million, while gross margins improved to 59.5% from 58.0% in 2024. Operating expenses rose by 5.5% to $10.5 million, primarily due to the transition from owned to leased facilities following the January 2025 headquarters sale. Adjusted EBITDA was $0.3 million, and the company ended the quarter with $16.4 million in cash and cash equivalents [2].

The company's CEO, Johan Hedberg, noted that the revenue growth was driven by increased sales productivity in U.S. retail stores, despite the challenging economic environment. However, the shift to leasing headquarters and distribution centers led to higher operating expenses, which is expected to continue throughout the year. Hedberg also warned about the potential impact of newly-announced tariffs on future sales and profits [2].

Tandy Leather Factory's inventory increased to $36.2 million, up from $35.6 million at the end of 2024. The company's cash position improved significantly, reflecting the net proceeds from the sale of its corporate headquarters and the payment of a special dividend in the first quarter [2].

Despite the mixed results, the company aims to maintain its sales momentum into the third quarter. However, the outlook for 2025 remains uncertain, with potential impacts from tariffs and other economic factors [2].

References:
[1] https://seekingalpha.com/news/4483679-tandy-leather-factory-gaap-eps-of-0_02-revenue-of-17_8m
[2] https://www.stocktitan.net/news/TLF/tandy-leather-factory-reports-second-quarter-2025-xwvctbcsa5qu.html
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX77D3DE:0-tandy-leather-factory-q2-revenue-up-2-8/

Tandy Leather Factory Reports Q2 GAAP EPS of -$0.02 and Revenue of $17.8M

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