Revenue rebounded 31.8% YoY in 2026Q2 to $207.1M, but operating margin at 10.8% remains below the 16.7% peak in 2024Q4, indicating inconsistent operating leverage.
Cadre Holdings, Inc. (CDRE) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 685.65M | 610.31M | 567.56M | 482.53M | 457.84M | 427.29M | 404.64M | 420.74M |
| Revenue Growth % | 19.74% | 7.53% | 17.62% | 5.39% | 7.15% | 5.6% | -3.83% | - |
| Cost of Goods Sold | 406.26M | 358.58M | 334.08M | 281.81M | 282.16M | 256.6M | 251.7M | 274.7M |
| COGS % of Revenue | - | 58.75% | 58.86% | 58.4% | 61.63% | 60.05% | 62.2% | 65.29% |
| Gross Profit | 279.38M | 251.72M | 233.48M | 200.73M | 175.68M | 170.69M | 152.94M | 146.04M |
| Gross Margin % | 40.75% | 41.25% | 41.14% | 41.6% | 38.37% | 39.95% | 37.8% | 34.71% |
| Gross Profit Growth % | - | 7.81% | 16.32% | 14.26% | 2.92% | 11.61% | 4.73% | - |
| Operating Expenses | 204.8M | 176.68M | 166.72M | 144.21M | 158.96M | 118.97M | 103.13M | 118.65M |
| OpEx % of Revenue | - | 28.95% | 29.37% | 29.89% | 34.72% | 27.84% | 25.49% | 28.2% |
| Selling, General & Admin | 203.35M | 165.28M | 158.32M | 140.52M | 153.13M | 114.96M | 106.63M | 124.27M |
| SG&A % of Revenue | - | 27.08% | 27.9% | 29.12% | 33.45% | 26.91% | 26.35% | 29.54% |
| Research & Development | 0 | 11.4M | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.87% | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 8.4M | 3.69M | 5.83M | 4.01M | -3.49M | -5.62M |
| Operating Income | 74.58M | 75.05M | 66.76M | 56.52M | 16.72M | 51.72M | 49.8M | 27.38M |
| Operating Margin % | 10.88% | 12.3% | 11.76% | 11.71% | 3.65% | 12.1% | 12.31% | 6.51% |
| Operating Income Growth % | - | 12.41% | 18.12% | 238.11% | -67.68% | 3.85% | 81.88% | - |
| EBITDA | 96.9M | 94M | 83.18M | 72.26M | 32.37M | 65.44M | 64.54M | 42.83M |
| EBITDA Margin % | 14.13% | 15.4% | 14.66% | 14.97% | 7.07% | 15.31% | 15.95% | 10.18% |
| EBITDA Growth % | 16.08% | 13.01% | 15.12% | 123.24% | -50.54% | 1.39% | 50.7% | - |
| D&A (Non-Cash Add-back) | 22.32M | 18.95M | 16.42M | 15.74M | 15.65M | 13.72M | 14.73M | 15.44M |
| EBIT | 67.91M | 74.15M | 62.04M | 57.45M | 15.58M | 35.62M | 52.26M | 27.78M |
| Net Interest Income | -15.66M | -11.83M | -7.82M | -4.53M | -6.21M | -16.43M | -24.39M | -29.85M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 15.66M | 11.83M | 7.82M | 4.53M | 6.21M | 16.43M | 24.39M | 29.85M |
| Other Income/Expense | -22.33M | -12.72M | -12.54M | -3.6M | -7.34M | -32.53M | -21.93M | -29.45M |
| Pretax Income | 52.25M | 62.33M | 54.22M | 52.92M | 9.37M | 19.19M | 27.88M | -2.07M |
| Pretax Margin % | 7.62% | 10.21% | 9.55% | 10.97% | 2.05% | 4.49% | 6.89% | -0.49% |
| Income Tax | 16.19M | 18.19M | 18.09M | 14.28M | 3.55M | 6.53M | -10.58M | -142K |
| Effective Tax Rate % | 30.99% | 29.18% | 33.36% | 26.99% | 37.91% | 34.03% | -37.95% | 6.86% |
| Net Income | 36.06M | 44.14M | 36.13M | 38.64M | 5.82M | 12.66M | 38.45M | -1.93M |
| Net Margin % | 5.26% | 7.23% | 6.37% | 8.01% | 1.27% | 2.96% | 9.5% | -0.46% |
| Net Income Growth % | -5.34% | 22.16% | -6.49% | 563.93% | -54.03% | -67.07% | 2094.45% | - |
| Net Income (Continuing) | 36.06M | 44.14M | 36.13M | 38.64M | 5.82M | 12.66M | 38.45M | -1.93M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.83 | 1.02 | 0.90 | 1.02 | 0.16 | 0.44 | 1.15 | -0.06 |
| EPS Growth % | -9.57% | 13.33% | -11.76% | 537.5% | -63.64% | -61.74% | 2096.53% | - |
| EPS (Basic) | - | 1.08 | 0.90 | 1.03 | 0.16 | 0.44 | 1.15 | -0.06 |
| Diluted Shares Outstanding | 43.39M | 43.43M | 40.33M | 37.92M | 36.12M | 28.6M | 33.48M | 33.48M |
| Basic Shares Outstanding | 42.81M | 40.87M | 39.95M | 37.53M | 36.11M | 28.6M | 33.48M | 33.48M |
| Dividend Payout Ratio | - | 35% | 38.6% | 31.07% | 197.75% | 100.71% | - | - |
Quick answers to the most common questions about buying CDRE stock.
For fiscal year 2025, Cadre Holdings, Inc. (CDRE) reported total revenue of $610.3M. This represents a 45.1% increase compared to $420.7M in 2019.
Cadre Holdings, Inc. (CDRE) is profitable, generating $44.1M in net income for the fiscal year ending 2025 with a net profit margin of 7.2%.
Cadre Holdings, Inc. (CDRE) reported an operating income of $75.0M, resulting in an operating profit margin of 12.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Cadre Holdings, Inc. (CDRE) generated $251.7M in gross profit for the year, representing a gross profit margin of 41.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue volatility and margin compression
Metrics are mathematically derived from official filings.
Revenue Growth Remains Volatile
Cadre's revenue swung from a 41.3% year-over-year surge in 2024Q4 to a 5.0% decline in 2025Q4, with 2026Q2 rebounding 31.8%, indicating lumpy demand patterns.
The quarterly revenue growth rates show extreme variability, ranging from -12.6% in 2024Q3 to +42.5% in 2025Q3, suggesting that growth is not smooth but rather driven by discrete orders or contract timing. The 2026Q2 revenue of $207.1M is the highest in the series, yet it follows a relatively weak 2026Q1, implying that the company may be experiencing order bunching rather than sustained organic expansion. Investors should monitor whether this volatility reflects a structural shift in demand or merely timing effects.
Gross Margin Stability Masks Underlying Pressure
Gross margin has hovered between 36.6% and 43.9% over the past ten quarters, with 2026Q2 at 42.1%, but the 2024Q3 dip to 36.6% highlights vulnerability to product mix shifts.
While the average gross margin appears stable around 40%, the range of 7.3 percentage points indicates that the company's product mix can shift significantly quarter to quarter. The 2026Q2 gross margin of 42.1% is above the trailing average, but the 2024Q3 low of 36.6% suggests that when revenue drops, margin compression can be severe, possibly due to fixed costs or lower-margin product sales. This cyclicality in gross margin may limit the company's ability to consistently expand profitability.
Operating Leverage Is Inconsistent
Operating margin swung from 16.7% in 2024Q4 to 5.0% in 2024Q3, and while 2026Q2 improved to 10.8%, the pattern suggests limited operating leverage due to fixed SG&A costs.
The relationship between revenue changes and operating income changes is not consistent. For instance, in 2026Q2, revenue grew 31.8% year-over-year, but operating income only grew from $18.0M to $22.5M, a 25% increase, indicating that operating leverage is not fully capturing the revenue upside. Conversely, in 2025Q4, revenue declined 5.0% but operating income fell from $29.4M to $21.9M, a 25.5% drop, showing that costs do not scale down proportionally. This suggests that SG&A is relatively fixed, and the company may not be able to achieve significant margin expansion without more disciplined cost control.
Earnings Quality Clouded by SBC and Tax Volatility
Net income in 2026Q1 dropped to $2.0M despite $155.4M revenue, while stock-based compensation averaged $2.9M per quarter, suggesting that reported EPS may overstate cash profitability.
The wide swings in net income, from $13.0M in 2024Q4 to $2.0M in 2026Q1, are not fully explained by revenue changes, implying that non-operating items or tax effects are significant. Stock-based compensation has been consistently around $2-5M per quarter, which is a real economic cost but not a cash outflow, so investors should adjust for it when assessing earnings quality. The 2026Q1 net margin of 1.3% is unusually low, and without a clear operational driver, it may indicate one-time charges or tax anomalies that warrant further investigation.
SG&A Efficiency Shows Mixed Signals
SG&A as a percentage of revenue ranged from 25.6% in 2024Q4 to 31.7% in 2026Q1, with 2026Q2 at 30.5%, indicating that overhead costs are not scaling down during revenue dips.
The SG&A-to-revenue ratio has been creeping upward, from 25.6% in 2024Q4 to 30.5% in 2026Q2, suggesting that the company is not achieving economies of scale. In 2026Q1, SG&A consumed 31.7% of revenue, which is high relative to the 2024Q4 level, and this may indicate that the company is investing in growth initiatives or facing cost inflation. The lack of R&D expense in the data is notable, but it may be embedded in SG&A or COGS, so the cost structure appears to be dominated by SG&A, which is a key area for margin improvement.
2024Q4 Marks a Profitability Peak
2024Q4 delivered the highest operating margin (16.7%) and net income ($13.0M) in the series, but subsequent quarters have not sustained that level, suggesting a temporary peak.
The 2024Q4 quarter stands out as the inflection point where revenue reached $176.0M and operating margin hit 16.7%, the best in the ten-quarter window. However, the following quarters saw a decline in both revenue and margins, with 2025Q4 operating margin at 13.1% and 2026Q2 at 10.8%, indicating that the company has not been able to maintain that level of profitability. This suggests that the 2024Q4 performance may have been driven by a favorable product mix or one-time factors, and the company's underlying profitability may be lower than that peak implies.
What Could Invalidate the Base Case
Despite recent revenue rebound, the extreme quarterly swings and margin compression suggest that the company's growth may be unsustainable, with 2026Q2 EPS down 13.3% year-over-year.
Short-sellers might argue that the revenue volatility indicates a lack of recurring revenue, making it difficult to forecast future performance. The 2026Q2 EPS decline of 13.3% despite a 31.8% revenue increase suggests that profitability is not scaling with growth, possibly due to rising costs or unfavorable mix. Additionally, the operating margin in 2026Q2 (10.8%) is below the 2024Q4 peak (16.7%), implying that the company may be facing structural margin pressure. If revenue growth decelerates again, the fixed cost base could lead to significant earnings downside, as seen in 2026Q1 when net income fell to $2.0M.