Tandy Leather Factory, Inc. (TLF) reported a significant financial turnaround for the year ending December 31, 2025, with net income soaring to $9.1 million, up from $0.8 million in 2024. The company also announced earnings of $1.10 per share, a substantial increase from 9 cents per share in the previous year. However, despite these gains, Tandy Leather’s shares have fallen 22.5% following the earnings report, in contrast to the S&P 500’s 0.6% growth in the same period.
Net sales for Tandy Leather reached $76.3 million, marking a 2.6% rise from $74.4 million in 2024. Gross profits rose by 4.2% to $43.5 million, with gross margins increasing to 57%. Conversely, the company reported an operating loss of $1 million, attributed to an 8.1% increase in operating expenses totaling $44.5 million, which includes higher rent, employment costs, and performance bonuses.
As of December 31, 2025, Tandy Leather had 101 stores, with cash and cash equivalents rising to $16.1 million from $13.3 million the previous year. The company completed the sale of its corporate headquarters for approximately $24.9 million, which contributed to its improved net income. Despite operational challenges, including a six-week distribution center closure, management indicates that liquidity will remain adequate through 2026.
