GET DAILY SIGNALSWinmark (WINA) Delivers Solid Q3 Revenue Beat With 23% Growth
Key Takeaways
- Winmark reported third-quarter 2026 revenue of $27.89 million, up about 23% from $22.63 million a year earlier and well above the roughly $23.99 million consensus estimate.
- Diluted earnings per share (EPS) came in at $3.21, a narrow $0.02 miss versus the $3.23 analyst consensus, while basic EPS reached $3.29.
- Net income rose about 6% to $11.82 million, with third-quarter royalties climbing to $21.7 million from $20.9 million.
- The company ended the quarter with 1,398 franchises operating and 79 additional awarded franchises not yet open.
- Management reaffirmed its capital-return focus with a $1.02 per-share quarterly dividend and continued share repurchases.
Putting the Results in Context
Winmark operates as an asset-light franchisor of resale retail concepts such as Plato's Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round. Its model centers on royalties and fees, which gives investors a fairly direct view of franchisee performance and demand for secondhand merchandise. The quarter ended September 26, 2026, came after a mixed first half marked by modest revenue gains and softer EPS readings. I was interested to see whether the company could accelerate top-line growth while protecting its strong margins, and this report served as a useful checkpoint on both fronts.
Breaking Down the Reported Figures
Winmark posted third-quarter 2026 revenue of $27.89 million, representing an approximate 23% increase from $22.63 million in the same period last year and comfortably ahead of the $23.99 million consensus. Net income advanced roughly 6% to $11.82 million from $11.14 million. Diluted EPS reached $3.21, up from $3.02 year over year yet just below the $3.23 estimate, while basic EPS came in at $3.29 versus $3.13 previously. Royalty revenue, the key line item for this franchise business, moved up to $21.7 million from $20.9 million, and operating income rose to $15.8 million from $14.9 million.
Over the first nine months of 2026, revenue totaled $70.71 million compared with $64.97 million a year earlier. Net income stood at $31.47 million, or $8.51 per diluted share, versus $31.69 million, or $8.61 per diluted share, in the prior-year period. The company also bought back $9.85 million of its shares during those nine months. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
How the Market Reacted
Shares of Winmark climbed about 5.5% after the release. For a mature franchisor, that was a noticeable move and appeared driven more by the strong revenue outperformance and steady profitability than by the small EPS shortfall. The roughly 23% revenue increase stood out against the single-digit gains seen in earlier quarters, suggesting improved momentum across the franchise base. The diluted EPS miss looked minor to most observers, while the $3.29 basic EPS figure highlighted underlying earnings strength. Ongoing royalty growth and the maintained $1.02 quarterly dividend added to the positive tone.
What to Watch Going Forward
Attention now turns to whether Winmark can carry the stronger revenue pace into the fourth quarter and beyond. Part of the third-quarter lift reflected timing of franchise activity, so the question is whether royalty growth stays elevated or settles back toward the lower-single-digit rate seen earlier. Margin trends also warrant monitoring; although still elevated for a retailer, they have eased from year-ago levels as costs have risen. The pace of new store openings from the 79 awarded but unopened franchises will give an early signal on future royalty income. Finally, the $1.02 dividend and buybacks remain supported by roughly $28.0 million in cash at quarter-end, and investors will continue to assess whether cash generation can sustain those returns amid any shifts in consumer spending on resale goods.
Exploring Tickeron’s AI Tools
I find it helpful to run periodic scans with Tickeron’s AI Screener when reviewing names in the specialty retail space. The tool lets me apply filters for fundamentals, technical patterns, and performance metrics to surface comparable ideas and track momentum shifts across the sector. It has become a regular part of my workflow for staying organized without spending hours on manual reviews.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
WINA's RSI Oscillator climbs out of oversold territory
The RSI Indicator for WINA moved out of oversold territory on October 14, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 20 similar instances when the indicator left oversold territory. In 15 of the 20 cases the stock moved higher. This puts the odds of a move higher at 75%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Moving Average Convergence Divergence (MACD) for WINA just turned positive on September 25, 2026. Looking at past instances where WINA's MACD turned positive, the stock continued to rise in 29 of 43 cases over the following month. The odds of a continued upward trend are 67%.
Following a +5.66% 3-day Advance, the price is estimated to grow further. Considering data from situations where WINA advanced for three days, in 246 of 345 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
The Aroon Indicator entered an Uptrend today. In 175 of 263 cases where WINA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 67%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 21, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on WINA as a result. In 51 of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 57%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WINA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
WINA broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 3 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 70 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WINA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 75 (best 1 - 100 worst), indicating slightly worse than average price growth. WINA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 81 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 93 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: WINA's P/B Ratio (-27.304) is very low in comparison to the industry average of (2.368). P/E Ratio (25.063) is within average values for comparable stocks, (17.442). Projected Growth (PEG Ratio) (0.980) is also within normal values, averaging (1.159). Dividend Yield (0.014) settles around the average of (0.093) among similar stocks. WINA's P/S Ratio (12.610) is very high in comparison to the industry average of (1.057).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a company that franchises retail brands that buy, sell, trade and consign used and new merchandise
Industry SpecialtyStores