Investment Thesis
Under Armour faces severe operational challenges with negative operating and net income despite flat revenue growth, indicating structural profitability issues beyond cyclical headwinds. While the company maintains positive free cash flow and adequate liquidity, the -31.5% ROE and -3.4% operating margin suggest fundamental business model stress that requires significant operational turnaround.
UA Strengths
- Positive free cash flow of $185.1M provides liquidity buffer despite losses
- Gross margin of 46.6% demonstrates pricing power and product quality in core business
- Current ratio of 1.43x indicates adequate short-term liquidity position
- Manageable debt-to-equity ratio of 0.69x provides financial flexibility
UA Risks
- Operating margin of -3.4% and net margin of -11.9% indicate fundamental unprofitability and operational inefficiency
- Stagnant revenue growth (0.0% YoY) combined with operating losses suggests inability to achieve profitable scale
- Negative interest coverage ratio of -3.5x indicates insufficient operating earnings to service debt obligations
- Quick ratio of 0.92x falls below 1.0x, raising concerns about ability to cover current liabilities with liquid assets
- Deteriorating net income performance (-186.7% YoY) demonstrates worsening profitability trajectory
Key Metrics to Watch
- Operating margin trend toward positive territory
- Revenue growth acceleration paired with cost structure improvement
- Free cash flow sustainability as operating losses may eventually impact liquidity
- Gross margin stability to confirm product demand remains intact
- Quarterly earnings trajectory for signs of operational turnaround
UA Financial Metrics
UA Profitability Ratios
UA Balance Sheet & Liquidity
UA 5-Year Financial Trend
5-Year Trend Summary: Under Armour, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.81 reflects profitable operations.
UA Growth Metrics (YoY)
UA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.3B | $1.2M | $0.00 |
| Q2 2026 | $1.3B | -$18.8M | $-0.04 |
| Q1 2026 | $1.1B | -$2.6M | $-0.01 |
| Q3 2025 | $1.4B | $1.2M | $0.00 |
| Q2 2025 | $1.4B | $104.7M | $0.23 |
| Q1 2025 | $1.2B | $10.0M | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
UA Capital Allocation
UA SEC Filings
Access official SEC EDGAR filings for Under Armour, Inc. (CIK: 0001336917)