The company's top-line remains under pressure with a 2.5% year-over-year revenue decline in 2025Q4, resulting in an operating margin contraction to -5.8%.
| Metric | 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 |
|---|
| Sales/Revenue | 336.82M | 347.07M | 377.15M | 394.7M | 370.7M | 325.06M | 340.35M | 357.25M | 344.6M | 324.16M | 292.99M | 257.19M | 229.56M | 182.65M | 152.72M | 135.34M |
| Revenue Growth % | -2.95% | -7.97% | -4.45% | 6.47% | 14.04% | -4.49% | -4.73% | 3.67% | 6.31% | 10.64% | 13.92% | 12.04% | 25.69% | 19.6% | 12.84% | - |
| Cost of Goods Sold | 121.8M | 119.2M | 134.09M | 135.76M | 117.57M | 103.53M | 104.23M | 105.92M | 108.38M | 97.26M | 89.38M | 78.3M | 68.75M | 49.63M | 40.32M | 36.12M |
| COGS % of Revenue | 36.16% | 34.34% | 35.55% | 34.4% | 31.72% | 31.85% | 30.62% | 29.65% | 31.45% | 30% | 30.51% | 30.44% | 29.95% | 27.17% | 26.4% | 26.69% |
| Gross Profit | 215.02M | 227.87M | 243.06M | 258.94M | 253.13M | 221.53M | 236.12M | 251.34M | 236.22M | 226.9M | 203.61M | 178.89M | 160.81M | 133.02M | 112.4M | 99.22M |
| Gross Margin % | 63.84% | 65.66% | 64.45% | 65.6% | 68.28% | 68.15% | 69.38% | 70.35% | 68.55% | 70% | 69.49% | 69.56% | 70.05% | 72.83% | 73.6% | 73.31% |
| Gross Profit Growth % | -5.64% | -6.25% | -6.13% | 2.29% | 14.27% | -6.18% | -6.06% | 6.4% | 4.11% | 11.44% | 13.82% | 11.24% | 20.89% | 18.35% | 13.28% | - |
| Operating Expenses | 220.83M | 224.36M | 226.9M | 236.33M | 232.52M | 215.15M | 237.48M | 233.2M | 210.38M | 193.98M | 174.38M | 157.32M | 127.73M | 98.61M | 79.78M | 68.56M |
| OpEx % of Revenue | 65.56% | 64.64% | 60.16% | 59.88% | 62.72% | 66.19% | 69.77% | 65.28% | 61.05% | 59.84% | 59.52% | 61.17% | 55.64% | 53.99% | 52.24% | 50.65% |
| Selling, General & Admin | 220.83M | 224.36M | 226.9M | 236.33M | 232.52M | 212.99M | 237.48M | 233.2M | 209.3M | 186.38M | 173.1M | 155.47M | 125.52M | 94.72M | 78.37M | 68.11M |
| SG&A % of Revenue | 65.56% | 64.64% | 60.16% | 59.88% | 62.72% | 65.53% | 69.77% | 65.28% | 60.74% | 57.5% | 59.08% | 60.45% | 54.68% | 51.86% | 51.32% | 50.32% |
| Research & Development | 0 | 1.8M | 1.6M | 2M | 1.5M | 1.5M | 1.6M | 300K | 200K | 500K | 500K | 300K | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.52% | 0.42% | 0.51% | 0.4% | 0.46% | 0.47% | 0.08% | 0.06% | 0.15% | 0.17% | 0.12% | - | - | - | - |
| Other Operating Expenses | 0 | -1.8M | -1.6M | -2M | -1.5M | 655K | -1.6M | -300K | 872K | 7.1M | 783K | 1.55M | 2.22M | 3.9M | 1.42M | 450K |
| Operating Income | -5.81M | 3.52M | 16.16M | 22.61M | 20.61M | 6.38M | -1.36M | 18.14M | 25.85M | 32.91M | 29.23M | 21.58M | 33.08M | 34.41M | 32.61M | 30.66M |
| Operating Margin % | -1.73% | 1.01% | 4.28% | 5.73% | 5.56% | 1.96% | -0.4% | 5.08% | 7.5% | 10.15% | 9.98% | 8.39% | 14.41% | 18.84% | 21.36% | 22.65% |
| Operating Income Growth % | -265.31% | -78.23% | -28.53% | 9.7% | 223.24% | 569.86% | -107.48% | -29.82% | -21.47% | 12.62% | 35.46% | -34.77% | -3.87% | 5.51% | 6.37% | - |
| EBITDA | 10.16M | 21.28M | 37.39M | 47.75M | 47.99M | 37.71M | 32.19M | 46.53M | 52.09M | 55.95M | 51.46M | 41.5M | 47.39M | 44.94M | 41.26M | 37.9M |
| EBITDA Margin % | 3.02% | 6.13% | 9.91% | 12.1% | 12.95% | 11.6% | 9.46% | 13.03% | 15.11% | 17.26% | 17.56% | 16.14% | 20.65% | 24.61% | 27.02% | 28% |
| EBITDA Growth % | -52.25% | -43.09% | -21.7% | -0.5% | 27.25% | 17.16% | -30.83% | -10.66% | -6.92% | 8.73% | 24% | -12.43% | 5.46% | 8.91% | 8.88% | - |
| D&A (Non-Cash Add-back) | 15.97M | 17.76M | 21.23M | 25.14M | 27.38M | 31.34M | 33.55M | 28.4M | 26.24M | 23.04M | 22.24M | 19.93M | 14.32M | 10.53M | 8.65M | 7.24M |
| EBIT | -5.81M | 3.52M | 16.16M | 22.61M | 20.61M | 6.38M | -1.34M | 18.29M | 26.02M | 33.05M | 29.36M | 21.07M | -21.14M | -47.64M | 32.54M | 30.79M |
| Net Interest Income | -41K | -275K | -2.16M | -1.58M | -656K | -1.87M | -3.79M | -2.69M | -1.86M | -1.72M | -2.58M | -3.14M | -2.58M | -1.25M | -443K | -467K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 157.3K | 16.37K |
| Interest Expense | 41K | 275K | 2.16M | 1.58M | 656K | 1.87M | 3.79M | 2.69M | 1.86M | 1.72M | 2.58M | 3.14M | 2.58M | 1.25M | 443K | 467K |
| Other Income/Expense | -41K | -275K | -2.16M | -1.58M | -656K | -1.87M | -3.78M | -2.54M | -1.69M | -1.57M | -2.45M | -3.65M | -56.8M | -83.3M | -520K | -343K |
| Pretax Income | -5.86M | 3.24M | 13.99M | 21.03M | 19.95M | 4.5M | -5.14M | 15.6M | 24.16M | 31.34M | 26.77M | 17.93M | -23.72M | -48.89M | 32.09M | 30.32M |
| Pretax Margin % | -1.74% | 0.93% | 3.71% | 5.33% | 5.38% | 1.39% | -1.51% | 4.37% | 7.01% | 9.67% | 9.14% | 6.97% | -10.33% | -26.77% | 21.01% | 22.4% |
| Income Tax | -1.36M | 921K | 3.92M | 5.33M | 5.18M | -1.53M | -674K | 5.16M | 13.34M | 12.88M | 11.08M | 7.38M | 11.94M | -2M | 733K | 609K |
| Effective Tax Rate % | 23.25% | 28.41% | 28.03% | 25.33% | 25.96% | -33.96% | 13.12% | 33.06% | 55.22% | 41.09% | 41.37% | 41.17% | -50.35% | 4.09% | 2.28% | 2.01% |
| Net Income | -4.49M | 2.32M | 10.07M | 15.7M | 14.77M | 6.03M | -4.46M | 10.44M | 10.82M | 18.46M | 15.7M | 10.55M | -35.66M | -46.89M | 31.36M | 29.71M |
| Net Margin % | -1.33% | 0.67% | 2.67% | 3.98% | 3.99% | 1.86% | -1.31% | 2.92% | 3.14% | 5.7% | 5.36% | 4.1% | -15.53% | -25.67% | 20.53% | 21.95% |
| Net Income Growth % | -293.62% | -76.95% | -35.87% | 6.29% | 144.97% | 235.13% | -142.74% | -3.48% | -41.4% | 17.63% | 48.82% | 129.58% | 23.94% | -249.51% | 5.56% | - |
| Net Income (Continuing) | -4.49M | 2.32M | 10.07M | 15.7M | 14.77M | 6.03M | -4.46M | 10.44M | 10.82M | 18.46M | 15.7M | 10.55M | -35.66M | -46.89M | 31.36M | 29.71M |
| Discontinued Operations | 0 | 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 | 0 |
| EPS (Diluted) | -0.10 | 0.05 | 0.23 | 0.32 | 0.29 | 0.12 | -0.09 | 0.20 | 0.21 | 0.36 | 0.31 | 0.21 | -0.72 | -1.31 | -0.01 | 2.04 |
| EPS Growth % | -289.04% | -77% | -28.13% | 10.34% | 141.67% | 236.05% | -144.1% | -4.76% | -41.67% | 16.13% | 47.62% | 129.17% | 45.04% | -8691.95% | -100.73% | - |
| EPS (Basic) | -0.10 | 0.05 | 0.23 | 0.32 | 0.29 | 0.12 | -0.09 | 0.20 | 0.21 | 0.36 | 0.31 | 0.21 | -0.72 | -1.31 | -0.01 | 2.04 |
| Diluted Shares Outstanding | 43.7M | 43.85M | 43.62M | 49.25M | 51.09M | 50.58M | 50.62M | 52.09M | 51.93M | 51.88M | 51.3M | 51.03M | 49.6M | 35.84M | 32.26M | 14.56M |
| Basic Shares Outstanding | 43.7M | 43.71M | 43.42M | 48.86M | 50.39M | 49.96M | 50.62M | 51.91M | 51.7M | 51.42M | 51.16M | 51.02M | 49.53M | 35.79M | 32.26M | 14.56M |
| Dividend Payout Ratio | - | - | - | - | 223.02% | - | - | 99.64% | 95.81% | - | - | - | - | - | - | - |
Fixed cost absorption failure
According to the latest quarterly financial data, Tile Shop Holdings has experienced a consistent revenue decline, with the most recent period showing a 2.5% year-over-year contraction, marking a multi-quarter trend of top-line erosion that reflects broader weakness in the discretionary home improvement and remodeling market segments.
The persistent negative growth trajectory suggests that the company is struggling to maintain its market share in a high-interest-rate environment that discourages large-scale home renovations. Investors should monitor whether this decline is a result of reduced consumer traffic or a structural loss of competitive positioning against lower-cost, high-volume retail alternatives.
As reported in recent income statements, the company maintains a robust gross margin profile, peaking at 66.5% in 2025Q4, which indicates that the firm's proprietary brand strategy and vertical integration continue to provide significant pricing power despite the ongoing challenges in overall sales volume and market demand.
The ability to sustain gross margins above 60% even during periods of revenue decline implies that the company's private-label products, such as Rush River and Fired Earth, remain highly valued by its core professional contractor base. This structural advantage suggests that the firm's primary issue is not product-level profitability, but rather the inability to scale revenue sufficiently to cover its fixed operating costs.
Based on the provided financial figures, the company has transitioned into negative operating territory, with the most recent operating margin falling to -5.8%, demonstrating that the current fixed-cost structure is no longer being adequately absorbed by the declining top-line revenue generated across its showroom-heavy retail footprint.
The shift from positive operating income in early 2024 to consistent losses in recent quarters highlights a critical lack of operating leverage. This suggests that management may need to aggressively rationalize its store footprint or overhead expenses to prevent further margin degradation if revenue trends do not show a meaningful recovery.
Analysis of the income statement reveals that SG&A expenses have remained stubbornly high relative to revenue, with the most recent quarter showing $52.3M in operating costs against $77.5M in revenue, indicating that the company's high-touch showroom model is currently creating a significant drag on bottom-line performance.
The high fixed-cost base, likely driven by premium real estate and specialized labor, appears to be the primary factor preventing the company from achieving consistent profitability. Without a material increase in sales density per square foot, the current cost structure may continue to weigh heavily on earnings, regardless of the strength of the underlying gross margins.
Quick answers to the most common questions about buying TTSH stock.
For fiscal year 2025, Tile Shop Holdings, Inc. (TTSH) reported total revenue of $336.8M. This represents a 148.9% increase compared to $135.3M in 2010.
Tile Shop Holdings, Inc. (TTSH) reported a net loss of $4.5M for the fiscal year ending 2025.
Tile Shop Holdings, Inc. (TTSH) reported an operating income of $-5.8M, resulting in an operating profit margin of -1.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Tile Shop Holdings, Inc. (TTSH) generated $215.0M in gross profit for the year, representing a gross profit margin of 63.8%. This demonstrates the company's core pricing power and production efficiency.