Tandy Leather Factory, Inc. filed its Form 10-Q for the quarterly period ended September 30, 2026, with the SEC on November 10, 2026, reporting a return to operating profitability in the third quarter after a loss in the year-ago period.

Key Highlights

  • Net sales of $18,522 thousand for the three months ended September 30, 2026, compared with $17,264 thousand in the same period of 2025, according to the filing.
  • Net income of $473 thousand for Q3 2026, versus a net loss of $1,352 thousand in Q3 2025, as reported in the condensed consolidated statements of operations.
  • Basic and diluted earnings per share of $0.06 for the three months ended September 30, 2026, compared with a loss of $0.17 per share in Q3 2025.
  • Nine-month net sales of $56,218 thousand and net income of $1,104 thousand for the period ended September 30, 2026, against $54,072 thousand in sales and $10,032 thousand in net income for the same period in 2025.
  • Cash and cash equivalents of $5,727 thousand at September 30, 2026, down from $16,087 thousand at December 31, 2025, as shown on the balance sheet.
  • Inventory increased to $37,509 thousand at September 30, 2026, from $33,238 thousand at December 31, 2025, the filing disclosed.
  • 8,192,075 shares of common stock outstanding as of November 10, 2026, as stated on the cover page of the filing.

Tandy Leather Factory's Third-Quarter 2026 Financial Results and Balance Sheet Position

According to the filing, Tandy Leather Factory, Inc. (NASDAQ:TLF) reported net sales of $18,522 thousand for the three months ended September 30, 2026, an increase from $17,264 thousand in the third quarter of 2025. Gross profit for the quarter was $11,553 thousand, compared with $10,170 thousand in Q3 2025. Income from operations was $556 thousand in Q3 2026, reversing a loss from operations of $678 thousand in the prior-year quarter. The company reported net income of $473 thousand for the three months ended September 30, 2026, versus a net loss of $1,352 thousand in Q3 2025.

For the nine months ended September 30, 2026, the filing reported net sales of $56,218 thousand and net income of $1,104 thousand, compared with net sales of $54,072 thousand and net income of $10,032 thousand for the same period in 2025. The filing noted that the nine-month 2025 results included a gain on disposal of headquarters of $16,225 thousand, which did not recur in 2026. Net cash used in operating activities was $2,788 thousand for the nine months ended September 30, 2026, against $5,536 thousand used in the comparable 2025 period.

The condensed consolidated balance sheet as of September 30, 2026, showed total assets of $81,931 thousand and total stockholders' equity of $47,517 thousand, compared with $86,633 thousand and $52,591 thousand, respectively, at December 31, 2025. Retained earnings declined to $55,892 thousand from $60,843 thousand at year-end 2025. The filing disclosed that dividends paid during the nine months ended September 30, 2026, totaled $6,055 thousand. The company is classified as a non-accelerated filer and a smaller reporting company.

What Was Disclosed

Tandy Leather Factory filed its quarterly report covering the period ended September 30, 2026, disclosing a return to net income in Q3 2026, higher net sales year over year, reduced cash balances, and increased inventory relative to year-end 2025.