Operating margins have compressed to 4.5% in 2026Q1 as high fixed-cost warehouse operations struggle to scale against a revenue decline of -0.7%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 4.68B | 4.68B | 4.46B | 4.41B | 4.26B | 3.43B | 2.43B | 2.05B | 1.71B | 1.38B | 1.05B | 784.01M | 584.59M | 441.39M | 335.09M |
| Revenue Growth % | 3.46% | 5.12% | 0.95% | 3.5% | 24.2% | 41.54% | 18.59% | 19.63% | 23.48% | 31.79% | 34.02% | 34.11% | 32.44% | 31.72% | - |
| Cost of Goods Sold | 2.75B | 2.76B | 2.53B | 2.56B | 2.54B | 2.01B | 1.39B | 1.18B | 1.01B | 812.2M | 621.5M | 471.39M | 355.05M | 270.1M | 199.9M |
| COGS % of Revenue | - | 58.85% | 56.72% | 57.9% | 59.49% | 58.58% | 57.34% | 57.81% | 58.93% | 58.65% | 59.15% | 60.13% | 60.74% | 61.19% | 59.66% |
| Gross Profit | 1.93B | 1.93B | 1.93B | 1.86B | 1.73B | 1.42B | 1.03B | 863.01M | 702.27M | 572.56M | 429.26M | 312.62M | 229.54M | 171.29M | 135.19M |
| Gross Margin % | 41.21% | 41.15% | 43.28% | 42.1% | 40.51% | 41.42% | 42.66% | 42.19% | 41.07% | 41.35% | 40.85% | 39.87% | 39.26% | 38.81% | 40.34% |
| Gross Profit Growth % | - | -0.05% | 3.76% | 7.56% | 21.48% | 37.43% | 19.92% | 22.89% | 22.65% | 33.38% | 37.31% | 36.2% | 34% | 26.71% | - |
| Operating Expenses | 1.66B | 1.65B | 1.67B | 1.54B | 1.33B | 1.08B | 820.31M | 703.83M | 570.97M | 454.79M | 349.63M | 259.93M | 192.88M | 144.03M | 109.14M |
| OpEx % of Revenue | - | 35.2% | 37.53% | 34.82% | 31.21% | 31.55% | 33.82% | 34.41% | 33.39% | 32.84% | 33.27% | 33.15% | 32.99% | 32.63% | 32.57% |
| Selling, General & Admin | 1.79B | 1.77B | 1.63B | 1.49B | 1.29B | 1.05B | 798.82M | 679.24M | 544.82M | 438.31M | 335.9M | 252.55M | 185.47M | 138.83M | 107.6M |
| SG&A % of Revenue | - | 37.78% | 36.55% | 33.8% | 30.3% | 30.55% | 32.93% | 33.21% | 31.86% | 31.65% | 31.97% | 32.21% | 31.73% | 31.45% | 32.11% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | -120.98M | 43.59M | 44.98M | 38.64M | 34.43M | 21.5M | 24.59M | 26.14M | 16.48M | 13.73M | 7.38M | 7.41M | 5.2M | 1.54M |
| Operating Income | 266.87M | 278.7M | 256.18M | 321.43M | 396.76M | 338.99M | 214.58M | 159.18M | 131.3M | 117.77M | 69.13M | 52.39M | 33.68M | 27.26M | 27.47M |
| Operating Margin % | 5.71% | 5.95% | 5.75% | 7.28% | 9.3% | 9.87% | 8.85% | 7.78% | 7.68% | 8.5% | 6.58% | 6.68% | 5.76% | 6.18% | 8.2% |
| Operating Income Growth % | - | 8.79% | -20.3% | -18.99% | 17.04% | 57.98% | 34.8% | 21.23% | 11.49% | 70.36% | 31.95% | 55.55% | 23.55% | -0.75% | - |
| EBITDA | 442.79M | 514.59M | 488.65M | 523.3M | 551.78M | 457.19M | 306.22M | 233.18M | 183.29M | 154.06M | 97.73M | 72.08M | 47.38M | 35.27M | 33.17M |
| EBITDA Margin % | 9.47% | 10.99% | 10.97% | 11.86% | 12.94% | 13.32% | 12.62% | 11.4% | 10.72% | 11.13% | 9.3% | 9.19% | 8.11% | 7.99% | 9.9% |
| EBITDA Growth % | -10.83% | 5.31% | -6.62% | -5.16% | 20.69% | 49.3% | 31.32% | 27.22% | 18.98% | 57.63% | 35.6% | 52.11% | 34.35% | 6.32% | - |
| D&A (Non-Cash Add-back) | 175.92M | 235.89M | 232.47M | 201.87M | 155.02M | 118.2M | 91.64M | 74M | 51.99M | 36.29M | 28.6M | 19.68M | 13.7M | 8.01M | 5.71M |
| EBIT | 210.2M | 274.43M | 256.18M | 321.43M | 396.76M | 338.99M | 214.58M | 159.18M | 131.3M | 112.33M | 79.63M | 52.69M | 36.66M | 27.26M | 27.47M |
| Net Interest Income | -3.86M | -5.41M | -2.77M | -9.9M | -11.14M | -4.92M | -8.39M | -8.8M | -8.92M | -13.78M | -12.8M | -9.39M | -8.95M | -7.68M | -6.53M |
| Interest Income | 4.26M | 4.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 9.25M | 9.67M | 2.77M | 9.9M | 11.14M | 4.92M | 8.39M | 8.8M | 8.92M | 13.78M | 12.8M | 9.39M | 8.95M | 7.68M | 6.53M |
| Other Income/Expense | -11.62M | -12.04M | -2.77M | -9.9M | -11.14M | -4.92M | -7.37M | -8.8M | -8.92M | -19.22M | -14.62M | -9.39M | -8.95M | -9.32M | -5.11M |
| Pretax Income | 255.24M | 266.66M | 253.4M | 311.53M | 385.62M | 334.07M | 207.21M | 150.38M | 122.38M | 98.55M | 54.51M | 43.01M | 24.73M | 17.94M | 20.94M |
| Pretax Margin % | 5.46% | 5.69% | 5.69% | 7.06% | 9.04% | 9.73% | 8.54% | 7.35% | 7.16% | 7.12% | 5.19% | 5.49% | 4.23% | 4.06% | 6.25% |
| Income Tax | 55.77M | 58.01M | 47.53M | 65.55M | 87.43M | 50.84M | 12.22M | -251K | 6.2M | -4.24M | 11.47M | 16.2M | 9.63M | 6.86M | 8.1M |
| Effective Tax Rate % | 21.85% | 21.76% | 18.76% | 21.04% | 22.67% | 15.22% | 5.9% | -0.17% | 5.06% | -4.3% | 21.05% | 37.67% | 38.95% | 38.22% | 38.69% |
| Net Income | 199.48M | 208.65M | 205.87M | 245.98M | 298.19M | 283.23M | 194.98M | 150.63M | 116.19M | 102.79M | 43.04M | 26.81M | 15.1M | 11.08M | 12.84M |
| Net Margin % | 4.27% | 4.45% | 4.62% | 5.57% | 6.99% | 8.25% | 8.04% | 7.36% | 6.8% | 7.42% | 4.1% | 3.42% | 2.58% | 2.51% | 3.83% |
| Net Income Growth % | -2.56% | 1.35% | -16.31% | -17.51% | 5.28% | 45.26% | 29.44% | 29.65% | 13.04% | 138.83% | 60.55% | 77.55% | 36.23% | -13.67% | - |
| Net Income (Continuing) | 199.48M | 208.65M | 205.87M | 245.98M | 298.19M | 283.23M | 194.98M | 150.63M | 116.19M | 102.79M | 43.04M | 26.81M | 15.1M | 11.08M | 12.84M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.84 | 1.92 | 1.90 | 2.28 | 2.78 | 2.64 | 1.84 | 1.44 | 1.11 | 1.03 | 0.44 | 0.28 | 0.16 | 0.11 | 0.13 |
| EPS Growth % | -2.65% | 1.05% | -16.67% | -17.99% | 5.3% | 43.48% | 27.78% | 29.73% | 7.77% | 134.09% | 57.14% | 75% | 45.45% | -15.38% | - |
| EPS (Basic) | - | 1.93 | 1.92 | 2.31 | 2.82 | 2.71 | 1.90 | 1.51 | 1.11 | 1.13 | 0.47 | 0.29 | 0.16 | 0.12 | 0.14 |
| Diluted Shares Outstanding | 108.43M | 108.43M | 108.32M | 107.88M | 107.44M | 107.39M | 106.14M | 104.96M | 104.56M | 99.66M | 97.25M | 97.25M | 97.25M | 97.25M | 97.25M |
| Basic Shares Outstanding | 107.76M | 107.76M | 107.08M | 106.26M | 105.63M | 104.68M | 102.69M | 99.44M | 104.56M | 90.95M | 92.26M | 92.26M | 92.26M | 92.26M | 92.26M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 522.78% | - | - | 225.57% | - |
Housing market cyclicality
As reported in recent financial filings, Floor & Decor's revenue growth has turned negative at -0.7% in 2026Q1, signaling a departure from the mid-single-digit expansion observed throughout 2025, likely driven by the persistent stagnation in existing home sales and broader consumer discretionary spending constraints.
The transition from positive growth to a slight contraction suggests that the company's reliance on housing turnover is becoming a significant drag on top-line performance. Investors should monitor whether this deceleration is a temporary seasonal dip or a structural shift in demand as the company's aggressive store expansion strategy encounters a more challenging macroeconomic environment.
Based on the company's income statement data, gross margins fluctuated significantly from a low of 38.3% in 2025Q3 to 44.0% in 2026Q1, reflecting the inherent sensitivity of the firm's direct-sourcing model to international freight costs and the timing of inventory procurement cycles.
While the 44% gross margin level demonstrates the potential of the company's warehouse-as-distribution-hub model, the inconsistency suggests that external logistics pressures can easily erode these gains. This volatility warrants further investigation into how effectively management can pass through cost increases to a price-sensitive consumer base during periods of economic uncertainty.
According to the provided income statement, operating margins have compressed to 4.5% in 2026Q1, indicating that the company's high fixed-cost base for warehouse operations is not scaling efficiently against the current revenue trajectory, as evidenced by the persistent SG&A expenses relative to gross profit.
The inability to expand operating margins despite the ongoing store rollout suggests that pre-opening expenses and fixed labor costs are currently outweighing the benefits of scale. This trend implies that the company may be reaching a point of diminishing returns on its physical footprint expansion unless comparable store sales growth accelerates significantly.
As indicated by the quarterly income statements, stock-based compensation remains a recurring expense, reaching $8.4 million in 2026Q1, which continues to create a wedge between reported net income and the underlying cash-generating capability of the core retail operations for shareholders.
The presence of stock-based compensation in most quarters suggests that management is utilizing equity-based incentives to retain talent, which dilutes earnings per share and complicates the assessment of true operational profitability. Investors should scrutinize these non-cash charges to determine if they are masking a more pronounced decline in core earnings power during periods of revenue contraction.
Quick answers to the most common questions about buying FND stock.
For fiscal year 2025, Floor & Decor Holdings, Inc. (FND) reported total revenue of $4.68B. This represents a 1297.9% increase compared to $335.1M in 2012.
Floor & Decor Holdings, Inc. (FND) is profitable, generating $208.6M in net income for the fiscal year ending 2025 with a net profit margin of 4.5%.
Floor & Decor Holdings, Inc. (FND) reported an operating income of $278.7M, resulting in an operating profit margin of 5.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Floor & Decor Holdings, Inc. (FND) generated $1.93B in gross profit for the year, representing a gross profit margin of 41.1%. This demonstrates the company's core pricing power and production efficiency.