Despite maintaining a consistent gross margin near 52.5% in 2026Q1, the company struggles with operating leverage, as evidenced by an operating margin that frequently dips into negative territory.
| 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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 76.94M | 76.32M | 74.39M | 76.23M | 80.33M | 82.66M | 64.08M | 74.92M | 83.1M | 82.32M | 82.92M | 84.16M | 83.43M | 78.28M | 72.72M | 66.1M | 59.89M | 54.48M | 53.24M | 55.32M | 55.2M | 50.72M | 46.15M | 41.71M | 39.73M | 37.28M | 30.1M | 27.1M | 22.2M | 25.4M | 28.3M |
| Revenue Growth % | 3.76% | 2.6% | -2.41% | -5.11% | -2.81% | 28.99% | -14.46% | -9.84% | 0.94% | -0.73% | -1.47% | 0.88% | 6.57% | 7.65% | 10.01% | 10.37% | 9.93% | 2.34% | -3.76% | 0.21% | 8.83% | 9.91% | 10.63% | 4.99% | 6.57% | 23.87% | 11.05% | 22.07% | -12.6% | -10.25% | -9.87% |
| Cost of Goods Sold | 33.8M | 32.78M | 32.59M | 31.07M | 33.84M | 35.66M | 28.03M | 32.96M | 32.52M | 30.21M | 31.21M | 32.09M | 31.31M | 28.96M | 26.81M | 25.77M | 23.64M | 21.87M | 21.86M | 23.64M | 23.57M | 21.96M | 20.71M | 19.02M | 18.39M | 17.93M | 14.52M | 14.1M | 11.9M | 14.3M | 17.1M |
| COGS % of Revenue | - | 42.95% | 43.8% | 40.75% | 42.12% | 43.14% | 43.73% | 43.99% | 39.13% | 36.69% | 37.64% | 38.13% | 37.52% | 36.99% | 36.87% | 38.98% | 39.47% | 40.15% | 41.06% | 42.74% | 42.69% | 43.31% | 44.87% | 45.6% | 46.3% | 48.11% | 48.25% | 52.03% | 53.6% | 56.3% | 60.42% |
| Gross Profit | 43.14M | 43.54M | 41.8M | 45.16M | 46.5M | 47M | 36.06M | 41.96M | 50.58M | 52.11M | 51.71M | 52.07M | 52.12M | 49.33M | 45.91M | 40.34M | 36.25M | 32.61M | 31.38M | 31.67M | 31.63M | 28.76M | 25.44M | 22.69M | 21.33M | 19.34M | 15.58M | 13M | 10.3M | 11.1M | 11.2M |
| Gross Margin % | 56.07% | 57.05% | 56.19% | 59.25% | 57.88% | 56.86% | 56.27% | 56.01% | 60.87% | 63.31% | 62.36% | 61.87% | 62.48% | 63.01% | 63.13% | 61.02% | 60.53% | 59.85% | 58.94% | 57.26% | 57.31% | 56.69% | 55.13% | 54.4% | 53.7% | 51.89% | 51.75% | 47.97% | 46.4% | 43.7% | 39.58% |
| Gross Profit Growth % | - | 4.15% | -7.44% | -2.87% | -1.07% | 30.34% | -14.06% | -17.04% | -2.94% | 0.77% | -0.69% | -0.1% | 5.67% | 7.46% | 13.8% | 11.27% | 11.17% | 3.92% | -0.93% | 0.13% | 10.01% | 13.03% | 12.11% | 6.36% | 10.29% | 24.2% | 19.81% | 26.21% | -7.21% | -0.89% | -16.42% |
| Operating Expenses | 44M | 44.5M | 41.18M | 40.75M | 45.11M | 44.7M | 42.41M | 44.56M | 46.75M | 44.87M | 41.41M | 41.6M | 40.17M | 38.06M | 36.76M | 32.63M | 29.62M | 27.51M | 27.2M | 27.16M | 24.57M | 23.18M | 21.18M | 18.59M | 17.2M | 15.44M | 12.33M | 11.1M | 9.4M | 9.9M | 11.5M |
| OpEx % of Revenue | - | 58.31% | 55.35% | 53.46% | 56.15% | 54.08% | 66.17% | 59.47% | 56.26% | 54.51% | 49.94% | 49.42% | 48.14% | 48.62% | 50.55% | 49.36% | 49.45% | 50.5% | 51.09% | 49.1% | 44.5% | 45.71% | 45.9% | 44.58% | 43.3% | 41.42% | 40.97% | 40.96% | 42.34% | 38.98% | 40.64% |
| Selling, General & Admin | 9.95M | 0 | 39.98M | 39.55M | 43.66M | 42.34M | 36.35M | 40.3M | 42.89M | 42.99M | 39.68M | 40M | 40.17M | 36.76M | 35.71M | 0 | 29.62M | 0 | 0 | 27.16M | 24.57M | 23.18M | 21.18M | 18.59M | 17.2M | 15.44M | 11.7M | 10.3M | 8.9M | 9.4M | 10.9M |
| SG&A % of Revenue | - | - | 53.74% | 51.88% | 54.34% | 51.22% | 56.73% | 53.79% | 51.62% | 52.23% | 47.85% | 47.53% | 48.14% | 46.95% | 49.1% | - | 49.45% | - | - | 49.1% | 44.5% | 45.71% | 45.9% | 44.58% | 43.3% | 41.42% | 38.89% | 38.01% | 40.09% | 37.01% | 38.52% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 44.5M | 1.2M | 1.21M | 1.45M | 2.36M | 6.05M | 4.25M | 180.19K | 126.86K | 57.29K | 74.36K | 75.17K | 160.73K | 42.57K | 32.63M | 0 | 27.51M | 27.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 627.58K | 800K | 500K | 500K | 600K |
| Operating Income | -859K | -963K | 628K | 4.41M | 1.39M | 2.3M | -6.35M | -2.6M | 3.83M | 7.24M | 10.3M | 10.47M | 11.96M | 11.27M | 9.14M | 7.71M | 6.64M | 5.1M | 4.18M | 4.51M | 7.07M | 5.57M | 4.26M | 4.1M | 4.13M | 3.9M | 3.25M | 1.9M | 900K | 1.2M | -300K |
| Operating Margin % | -1.12% | -1.26% | 0.84% | 5.79% | 1.73% | 2.78% | -9.91% | -3.47% | 4.61% | 8.8% | 12.42% | 12.45% | 14.33% | 14.39% | 12.57% | 11.66% | 11.08% | 9.35% | 7.85% | 8.15% | 12.8% | 10.99% | 9.23% | 9.82% | 10.4% | 10.47% | 10.78% | 7.01% | 4.05% | 4.72% | -1.06% |
| Operating Income Growth % | - | -253.34% | -85.76% | 217.72% | -39.65% | 136.23% | -144.44% | -167.83% | -47.13% | -29.7% | -1.66% | -12.4% | 6.14% | 23.21% | 18.65% | 16.14% | 30.24% | 21.92% | -7.36% | -36.17% | 26.81% | 30.88% | 3.92% | -0.83% | 5.89% | 20.24% | 70.79% | 111.11% | -25% | 500% | -111.54% |
| EBITDA | 5.51M | 5.2M | 5.36M | 9.04M | 2.59M | 3.4M | -5.33M | -942K | 5.63M | 9.12M | 12.02M | 12.04M | 13.39M | 12.46M | 10.21M | 8.72M | 7.61M | 6.22M | 5.16M | 5.15M | 7.46M | 6.03M | 4.71M | 4.63M | 4.66M | 4.68M | 3.87M | 2.7M | 1.4M | 1.7M | 300K |
| EBITDA Margin % | 7.16% | 6.81% | 7.2% | 11.85% | 3.22% | 4.12% | -8.31% | -1.26% | 6.77% | 11.07% | 14.5% | 14.31% | 16.05% | 15.92% | 14.04% | 13.2% | 12.7% | 11.42% | 9.7% | 9.3% | 13.52% | 11.89% | 10.21% | 11.09% | 11.73% | 12.55% | 12.87% | 9.96% | 6.31% | 6.69% | 1.06% |
| EBITDA Growth % | 33.17% | -3.02% | -40.69% | 249.02% | -23.96% | 163.92% | -465.5% | -116.74% | -38.28% | -24.15% | -0.18% | -10.1% | 7.49% | 22.02% | 17.07% | 14.66% | 22.31% | 20.44% | 0.38% | -31.03% | 23.72% | 28% | 1.82% | -0.71% | -0.38% | 20.79% | 43.43% | 92.86% | -17.65% | 466.67% | -90% |
| D&A (Non-Cash Add-back) | 6.37M | 6.16M | 4.73M | 4.63M | 1.2M | 1.1M | 1.02M | 1.66M | 1.8M | 1.88M | 1.72M | 1.57M | 1.44M | 1.19M | 1.07M | 1.02M | 972.41K | 1.13M | 985.55K | 634.29K | 392.92K | 456.71K | 452.65K | 529.26K | 528.35K | 775.91K | 627.58K | 800K | 500K | 500K | 600K |
| EBIT | -2.01M | 12.3M | 628K | 4.41M | 1.63M | 3.55M | -1.29M | -43K | 6.52M | 7.37M | 10.36M | 10.55M | 12.03M | 11.43M | 9.19M | 7.79M | 6.74M | 5.26M | 4.44M | 4.51M | 7.07M | 5.57M | 4.26M | 4.1M | 4.13M | 3.9M | 3.25M | 2M | 900K | 1.2M | -300K |
| Net Interest Income | 448K | 552K | 331K | 93K | 9K | -16K | -7K | -36K | -304.96K | -205.56K | -155.19K | -330K | -225.58K | -206.76K | -240.93K | -248.58K | -265.4K | -297.86K | -332.11K | -122.21K | 0 | -3.19K | -53.4K | -206.94K | -246.88K | -458.56K | -617.4K | 0 | -1M | 0 | -1M |
| Interest Income | 448K | 552K | 331K | 93K | 9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 16K | 7K | 36K | 304.96K | 205.56K | 155.19K | 330K | 225.58K | 206.76K | 240.93K | 248.58K | 265.4K | 297.86K | 332.11K | 122.21K | 0 | 3.19K | 53.4K | 206.94K | 246.88K | 458.56K | 617.4K | 0 | 1M | 0 | 1M |
| Other Income/Expense | -1.88M | 13.26M | 463K | 135K | 20K | -107K | 2.82M | 1.38M | 248.62K | -903.55K | -97.9K | -255.65K | -150.42K | -46.03K | -198.36K | -165.15K | -159.87K | -133.7K | -67.07K | 316.83K | 98.39K | 134.5K | -44.8K | -125.17K | -311.92K | -533.48K | -653.78K | -900K | -900K | -900K | -1M |
| Pretax Income | -2.73M | 12.3M | 1.09M | 4.54M | 1.41M | 2.19M | -3.52M | -1.21M | 3.7M | 7.16M | 10.2M | 10.22M | 11.81M | 11.22M | 8.95M | 7.54M | 6.48M | 4.96M | 4.11M | 4.83M | 7.17M | 5.71M | 4.21M | 3.97M | 3.82M | 3.37M | 2.59M | 1M | 0 | 300K | -1.3M |
| Pretax Margin % | -3.55% | 16.12% | 1.47% | 5.96% | 1.75% | 2.65% | -5.5% | -1.62% | 4.46% | 8.7% | 12.3% | 12.14% | 14.15% | 14.33% | 12.3% | 11.41% | 10.81% | 9.11% | 7.72% | 8.73% | 12.98% | 11.25% | 9.13% | 9.52% | 9.61% | 9.04% | 8.61% | 3.69% | - | 1.18% | -4.59% |
| Income Tax | -475K | 3.2M | 264K | 777K | 181K | 839K | 1.38M | 690K | 1.74M | 2.71M | 3.8M | 3.82M | 4.1M | 3.96M | 3.35M | 2.79M | 2.32M | 1.7M | 1.51M | 1.74M | 2.39M | 1.99M | 1.56M | 1.23M | 1.22M | 1.36M | 1.05M | 600K | -100K | 200K | -300K |
| Effective Tax Rate % | 17.37% | 26% | 24.2% | 17.1% | 12.86% | 38.26% | -39.11% | -56.88% | 46.98% | 37.85% | 37.25% | 37.35% | 34.73% | 35.25% | 37.44% | 36.96% | 35.78% | 34.27% | 36.67% | 36.03% | 33.34% | 34.94% | 37.01% | 31.02% | 32.07% | 40.44% | 40.52% | 60% | - | 66.67% | 23.08% |
| Net Income | -2.26M | 9.1M | 827K | 3.77M | 1.23M | 1.35M | -4.9M | -1.9M | 1.96M | 4.45M | 6.4M | 6.4M | 7.71M | 7.27M | 5.6M | 4.75M | 4.16M | 3.32M | 2.6M | 3.09M | 4.78M | 3.71M | 2.65M | 2.74M | -1.41M | 2.01M | 1.54M | 400K | 1M | 100K | -1M |
| Net Margin % | -2.94% | 11.93% | 1.11% | 4.94% | 1.53% | 1.64% | -7.65% | -2.54% | 2.36% | 5.41% | 7.72% | 7.61% | 9.24% | 9.28% | 7.7% | 7.19% | 6.95% | 6.09% | 4.89% | 5.58% | 8.65% | 7.32% | 5.75% | 6.57% | -3.56% | 5.38% | 5.12% | 1.48% | 4.5% | 0.39% | -3.53% |
| Net Income Growth % | -117.41% | 1000.6% | -78.05% | 207.09% | -9.38% | 127.63% | -157.54% | -196.9% | -55.89% | -30.47% | -0% | -16.93% | 6.07% | 29.84% | 17.75% | 14.24% | 25.38% | 27.41% | -15.67% | -35.36% | 28.63% | 39.93% | -3.15% | 293.82% | -170.47% | 30.18% | 285.33% | -60% | 900% | 110% | -183.33% |
| Net Income (Continuing) | -2.26M | 9.1M | 827K | 3.77M | 1.23M | 1.35M | -4.9M | -1.9M | 4.4M | 4.45M | 6.4M | 6.4M | 7.71M | 7.27M | 5.6M | 4.75M | 4.16M | 3.26M | 2.6M | 3.09M | 4.78M | 3.71M | 2.65M | 2.74M | 2.59M | 2.01M | 1.54M | 400K | 1M | 100K | -1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.77K | 56.91K | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.28 | 1.10 | 0.09 | 0.45 | 0.15 | 0.16 | -0.54 | -0.21 | 0.21 | 0.27 | 0.69 | 0.63 | 0.75 | 0.71 | 0.55 | 0.47 | 0.41 | 0.31 | 0.24 | 0.28 | 0.43 | 0.34 | 0.24 | 0.25 | -0.13 | 0.19 | 0.15 | 0.04 | 0.10 | 0.01 | -0.10 |
| EPS Growth % | -118.6% | 1067.73% | -79.07% | 200% | -6.25% | 129.63% | -157.14% | -200% | -22.22% | -60.87% | 9.52% | -16% | 5.63% | 29.09% | 17.02% | 14.63% | 32.26% | 29.17% | -14.29% | -34.88% | 26.47% | 41.67% | -4% | 292.31% | -168.42% | 26.67% | 275% | -60% | 900% | 110% | -183.33% |
| EPS (Basic) | - | 1.11 | 0.10 | 0.45 | 0.15 | 0.16 | -0.54 | -0.21 | 0.21 | 0.27 | 0.69 | 0.64 | 0.76 | 0.71 | 0.55 | 0.47 | 0.41 | 0.32 | 0.24 | 0.28 | 0.44 | 0.35 | 0.25 | 0.27 | -0.14 | 0.20 | 0.16 | 0.04 | 0.10 | 0.01 | -0.10 |
| Diluted Shares Outstanding | 8.1M | 8.26M | 8.78M | 8.37M | 8.39M | 8.72M | 9.06M | 8.97M | 9.21M | 9.25M | 9.32M | 10.1M | 10.24M | 10.22M | 10.18M | 10.18M | 10.25M | 10.54M | 11.02M | 11.16M | 11.11M | 10.98M | 10.96M | 10.86M | 10.76M | 10.56M | 10.28M | 10M | 10M | 10M | 10M |
| Basic Shares Outstanding | 8.1M | 8.23M | 8.49M | 8.34M | 8.36M | 8.71M | 9.06M | 8.97M | 9.19M | 9.24M | 9.3M | 10.08M | 10.2M | 10.18M | 10.16M | 10.16M | 10.21M | 10.47M | 10.93M | 10.95M | 10.81M | 10.64M | 10.54M | 10.32M | 10.06M | 10.03M | 9.63M | 10M | 10M | 10M | 9.79M |
| Dividend Payout Ratio | - | 140.02% | - | - | - | - | - | - | - | - | - | - | 33.08% | - | 45.32% | - | 184.86% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High fixed cost retail
According to the provided quarterly data, TLF's revenue growth remains inconsistent, fluctuating between a 3.2% increase in 2026Q1 and a 6.8% decline in 2023Q4, suggesting that the company struggles to maintain a durable top-line expansion within its current specialty retail business model.
The lack of sustained revenue momentum indicates that the company's core hobbyist segment may be reaching market saturation or is highly sensitive to discretionary spending shifts. Investors should monitor whether the recent pivot toward B2B production services can provide a more stable growth floor than the volatile retail hobbyist channel.
As reported in financial statements, TLF maintains a robust gross margin profile, consistently hovering near 57%, yet this pricing power is effectively neutralized by an operating margin that frequently dips into negative territory, highlighting a structural disconnect between product value and the cost of physical distribution.
The high gross margin suggests significant brand equity in proprietary leathercraft consumables, yet the inability to convert this into operating profit implies that the 106-store footprint is currently inefficient. This divergence warrants further investigation into whether the company can optimize its store-level overhead without sacrificing its specialized market presence.
Based on the income statement history, the significant variance between operating income and net income, most notably the $12.7 million net income reported in 2025Q1 against a modest operating profit, suggests that headline earnings are heavily influenced by non-operating items rather than core retail performance.
Analysts should exercise caution when evaluating EPS, as these non-recurring gains mask the underlying operational challenges of the business. The recurring nature of these distortions makes it difficult to assess the true earning power of the company's retail operations, necessitating a focus on operating income as a more reliable metric.
Data from recent filings indicates that TLF fails to demonstrate positive operating leverage, as SG&A expenses frequently overwhelm gross profit, leading to periods of negative operating income despite the company's ability to maintain high gross margins on its specialized leathercraft products and proprietary tool brands.
The current cost structure appears too rigid to scale effectively with the existing revenue base, suggesting that the company's retail-heavy model may be over-extended. Without a meaningful increase in sales density per square foot, the company may continue to struggle with achieving consistent operating profitability regardless of gross margin performance.
Quick answers to the most common questions about buying TLF stock.
For fiscal year 2025, Tandy Leather Factory, Inc. (TLF) reported total revenue of $76.3M. This represents a 169.7% increase compared to $28.3M in 1996.
Tandy Leather Factory, Inc. (TLF) is profitable, generating $9.1M in net income for the fiscal year ending 2025 with a net profit margin of 11.9%.
Tandy Leather Factory, Inc. (TLF) reported an operating income of $-1.0M, resulting in an operating profit margin of -1.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Tandy Leather Factory, Inc. (TLF) generated $43.5M in gross profit for the year, representing a gross profit margin of 57.0%. This demonstrates the company's core pricing power and production efficiency.