Good morning and thank you all for attending the Shark Ninjas third quarter 2025 earnings call. My name is Brita and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question during this time please press star followed by the number one on your telephone keypad. To remove your request please press star followed by the number 2, and for operator assistance at any point, please press star than the number 0. Thank you. I would now like to pass the conference over to your host, James Lann, Senior Vice President of Investor Relations and Treasury. Thank you. You may proceed, James.

Good morning, and welcome to Shark Ninja's third quarter 2025 earnings conference call. Earlier today, we issued our Q3 earnings release, which is available on the company's website at ir.sharkninja.com. A replay of today's webcast will also be available on the site shortly after the call. Before we begin, let me remind you that today's discussion will include forward-looking statements based on our current perspective of the business environment. These statements involve risks and uncertainties, and actual results may differ materially. For more details, please refer to our earnings release and the company's most recent SEC filings, which outline factors that could impact these statements. The company assumes no obligation to update or revise forward-looking statements in the future. Additionally, during the call, we will reference non-GAAP financial measures, which we believe provide valuable insight into the underlying growth trends of our business. You can find a full reconciliation of these measures to their most directly comparable GAAP measures in the earnings release. Joining me today are our Chief Executive Officer, Mark Barokas, and Chief Financial Officer, Adam Quigley. Mark will start by providing a business update, followed by Adam, who will review our Q3 financial results and share our outlook for 2025. Mark will then offer some closing remarks before we open the call to questions. During the Q&A session, please limit yourself to one question and one follow-up. I would now like to turn the call over to Mark.

Thank you, James. Good morning, everyone, and thank you for joining us today. During a year of massive upheaval across our ecosystem, supply chain disruptions, consumer uncertainty, industry headwinds, and other challenges, Shark Ninja has continued to triumph. At our core, we're a company of problem solvers. We thrive on tackling problems head-on to deliver innovative and groundbreaking solutions time and time again. As 2025 has unfolded, the monumental series of challenges has gotten the better of many companies. I believe Shark Ninja, on the other hand is a true outlier. We've steadily and meaningfully taken market share across categories and geographies. We've continued delivering disruptive innovation at breakneck speed, and we've done it all with best-in-class profitability and impressive execution. In short, Shark Ninja has been exemplary. The third quarter is a testament to all these factors with outstanding results across the board. Net sales grew over 14% year-over-year, our 10th quarter in a row of double-digit top-line growth, all of which is organic. Adjusted gross margins expanded more than 90 basis points year-over-year to surpass 50%. And adjusted EBITDA grew nearly 21% year-over-year. We also delivered our second quarter in a row of leverage of adjusted operating expense as a percentage of net sales. These are truly outstanding numbers, and one might ask just how we're able to deliver them. I think they're the byproduct of two essential aspects of our culture, two things that drive everything we do, our mission of positively impacting people's lives every day in every home around the world, and the existential need to be the absolute best at whatever we do, not just like everyone else, but the best. Our performance this quarter and for the last 17 years proves that this is a winning formula. Let's deep dive into sales, where Shark Ninja continues to materially outpace the competition. Our point-of-sale trends in Q3 demonstrate enviable momentum over a broad base of products and categories. While our data indicates the total U.S. market that we participate in declined slightly year over year, excluding Shark Ninja's performance, our own POS grew in the low double digits. The outperformance expanded in the last four weeks, exiting the quarter, with our POS reaching mid-teens growth as the market weakened further, again excluding Shark Ninja. We're also seeing tremendous success internationally, where net sales growth in Q3 accelerated to almost 26% year-over-year, compared to just over 20% year-over-year in the second quarter. Our top-line strength reflects expanding relationships with consumers and retailers. Recent innovative product launches are generating exceptional consumer engagement across reviews, social media, and elsewhere. The trusted relationship that Shark Ninja has earned with consumers remains our priority. I believe it's why we've maintained our pace of innovation despite a difficult environment. It's why we keep a maniacal focus on consumer satisfaction. And it's why we continue to expand the places consumers can shop for our products. These elements help ensure Shark Ninja is driving extraordinary value to the consumer. I believe as we earn more trust, we build lifetime value and brand loyalty. This advantage means that as we enter new categories, consumers are all ears about what's new with Shark and Ninja. On the retailer side, our global relationship status continues to strengthen. The commercial team and I spent time during Q3 with the top leaders at our largest and most important partners across the globe. The feedback was incredibly encouraging and remarkably consistent. Shark Ninja is a brand unlike anyone else in our marketplace. Fast moving, uniquely innovative, and steadfastly committed to marketing and demand generation. I think this is a rare combination of attributes for any company, but exceptionally so given the extreme difficulties so many have faced in 2025. Our differentiation has earned us an important seat at the table. You're seeing this already in the lead-up to holiday 2025 with meaningful traction and orders. Even with some shipments moving out of Q3 into Q4 as we anticipated, September was a record month for Shark Ninja. As we head through the remainder of the year and into 2026, we could not be more excited about Shark Ninja's position with our wholesale partners. This enthusiasm extends to our direct-to-consumer business as well. In October, we launched a completely redesigned SharkNinja.com, consolidating three outdated domains into one streamlined destination. Our new platform is a massive upgrade. It should enable us to engage the consumer in powerful new ways and provide a more seamless e-commerce experience. Now, we can instantly showcase the value of Shark Ninja as the innovation powerhouse behind two multibillion-dollar brands. Over time, we believe this can be an important driver of traffic, conversion, and cross-selling activity. We're also partnering with major retailers to enhance the Shark Ninja experience on their online properties through new creative, enhanced imagery, and by leveraging some of our celebrity ambassador content. We will continue to roll out modernized DTC sites across Latin America and EMEA in the first half of 2026, with the goal of learning and optimizing as we get into the second half. Making great products is one thing, but creating widespread viral demand for them is another. Shark Ninja employs a very sophisticated approach of doing this in multiple ways, leveraging global brand ambassadors, micro ambassadors, influencers, and experiential events. At the top of the pyramid, our roster of global brand ambassadors continues to expand, with two tremendous new additions to highlight. We are thrilled to welcome comic sensation Kevin Hart and NFL icon Tom Brady to the Shark Ninja family. Kevin and Tom each bring their own unique and authentic connection to fans and audiences worldwide. I encourage you to watch the first installment of Kevin and David Beckham, a longtime global brand ambassador, as neighbors in a new digital series we're creating. And be sure to check out the new Tom Brady roast featuring him using our new Ninja Crispy Pro air fryer. We have a lot more exciting content to debut in the coming months from our celebrity partners, so stay tuned. We're also rapidly expanding our influencer network globally, driving more localized content across key markets in Latin America, Europe, and the Middle East. We now have Shark Ninja content creators in these markets developing content every single day. The considerable scope of expertise that we're building should be durable and not easily replicable by others. We believe our investments into effective localized content can strengthen our social media marketing advantage worldwide. The same playbook that we've developed successfully in North America is now coming to the rest of the world. This evolution is another proof point of Shark Ninja continuing to evolve into a true global business. I will now turn to our three-pillar growth strategy, starting with our first growth pillar, expanding into new and adjacent categories. We're now officially in 38 subcategories with the Q3 launch of Ninja Fireside 360, our revolutionary outdoor heater and fire pit combination. This product exemplifies how we utilize consumer insights to solve problems with innovation. Fireside 360 combines the benefits of traditional heaters and fire pits while eliminating common drawbacks like poor heat distribution and cleanup hassles. The initial consumer response has been excellent, and we're excited to expand further into the outdoor lifestyle space. Turning to beauty, we've delivered significant new product momentum during the second half of 2025. Shark Glam epitomizes our engineering first approach to solving real consumer problems. It's the first multi-styler that combines ceramic heat and powerful airflow to deliver salon quality results for even the most challenging hair types. The Shark Glossy leverages the same breakthrough technology in a versatile brush product appealing to a broader consumer base at a more accessible price point. Together, these launches showcase our ability to evolve individual products into comprehensive franchises with hair care as the latest example. We now offer a vast ecosystem of products across multiple use cases and price points, reinforcing our position as an innovation leader, transforming the beauty space. Earlier this year in the U.S., we entered the skincare market with the Shark CryoGlow. In under 12 months, Shark CryoGlow is the number one skincare facial device in the U.S. And Shark Beauty is the number one skincare facial devices brand in the U.S., both according to Sarkana. Acting quickly on the heels of this runaway success, we've just launched our next revolutionary innovation in skincare, the Shark Facial Pro Glow with Depuffy. We anticipate this hydrofueled device will redefine the at-home facial experience to deliver spa-level results in 10 minutes, combining cleansing, moisturizing, and depuffing technology. Facial Pro Glow has been an enormous success so far, with 25,000 people on the wait list and a complete sellout of Amazon in three hours. Our ambition is to be the runaway leader in beauty technology. And we believe cutting edge products like the Shark Cryo Glow and Shark Facial Pro Glow pave the way for that success. Taking a step back, what other company launches products as wide ranging as an outdoor heater fire pit combo and a facial extracting and sculpting device in a single quarter. This is the magic of Shark Ninja. We relentlessly pursue the next great breakthroughs across an infinite number of consumer problems to solve. We remain fully committed to delivering on our 2025 innovation roadmap with 25 new products as promised. This is a tall task considering all the supply disruptions earlier this year. But we believe we enter next year with meaningful momentum as new products ramp and our exciting 2026 launches roll out now let's turn to our second growth pillar growing share in existing categories i mentioned earlier how profoundly we outperformed the market we served in q3 and the same pattern has been evident all year year to date our internal data supports clear market share gains across all four of our category groupings, cleaning, cooking, food preparation, and beauty and home environment. The cleaning business was a particular standout in Q3 with growth across all subcategories. Our robotics division continues to gain traction while our extraction products also perform well. Extraction represents a great example of one of the hallmarks of Shark Ninja, the drive to deliver demonstrably superior product than what we believe the market is currently offering. As Shark grew into a powerhouse within the vacuum and floor care markets, retailers asked us for years to enter extraction. We resisted at first because initially it wasn't clear how we could solve the consumer's problems in a better, more innovative way. We kept at it and introduced our Shark Stain Striker platform to great success. In just a few years, we've gone from 0% share to a meaningful position in the extraction market. In Q3, we took another leap forward with the introduction of the shark stain force. This revolutionary cordless stain elimination system addresses what we call stainxiety, the stress consumers feel when faced with tough stains or spill emergencies. The product became a viral sensation on social media with plenty of user-generated content. Best of all, authentic consumer enthusiasm is translating directly into strong sales performance, reinforcing the power of our consumer-centric product development approach. Another social media standout is the Ninja Blend Boss, our first-ever Tumblr blender that's redefining portable wellness with an ultra powerful motor and a hundred percent leak-proof design. The innovative on-the-go solution demonstrates the potency of our integrated marketing approach. And the launch post went viral. We've seen millions of impressions across TikTok, Instagram, YouTube, and Facebook, driving exceptionally strong sales in the first few weeks. I think Ninja Blend Boss is breathing new life into a category that's been dormant, similar to what we spoke about last quarter with fans, and it represents another step in our expansion beyond traditional kitchen appliances to meet consumers' active lifestyles. This kind of organic consumer engagement reflects the genuine excitement our innovations generate in the marketplace. Lastly, I want to highlight the Ninja Crispy Pro launch. that further extends our leadership in the glass system air fryer category. Ninja Crispy Pro represents the latest building block in our next generation air frying franchise with expanded XL capacity and enhanced functionality. We have additional breakthrough Crispy products coming in 2026 that I believe will keep one of our largest categories refreshed and vibrant for consumers. A common thread unites all three of the products I just highlighted. They represent disruptive innovation within some of our core existing businesses. The Shark Stain Force delivers the best stain fighting in the category with no cords and no setup. The Ninja Blend Boss completely rethinks the way the consumer can utilize a single serve blending platform as a fashionable, unique, and on-the-go product. The Ninja Crispy meaningfully expands the kinds of meals our revolutionary glass system air fryer can handle. In each case, we believe we're delivering compelling newness to help accelerate the replacement cycle across these core franchises. I think innovating within the base is the key to a healthy and thriving set of existing categories. It's a vital component of our growth algorithm, and we focus on it constantly. Our third growth pillar, international expansion, delivers exceptional results in Q3. I'm particularly excited about our UK business, which saw a dramatic reacceleration to 27% year-over-year net sales growth compared to roughly 6% in the prior quarter. Our diversified portfolio of products in the UK is resonating with consumers in both new and existing categories. The air fryer headwind we've observed throughout 2025 in the UK has started to diminish, offset by strength across espresso, beauty, fans, floor care, robotics, frozen treats, and more. Mexico continues to perform exceptionally well, and we believe we're building significant momentum heading into 2026. Our business is firing on all cylinders. Consumer demand is outstanding, with extraordinary point-of-sale metrics since the transition to a direct model. Retailers are responding in kind by expanding the number of categories they buy from Shark Ninja. This flywheel is supported by the dedicated resources we have deployed across sales, marketing, and operations. Our success in Mexico is creating a halo effect across other Latin America markets. Our investments in Spanish-language media are paying off in multiple countries, driving strong consumer engagement and stellar POS trends. In Q3, we experienced broad-based, triple-digit growth in Latin America overall. These trends drive confidence in our expectations for a robust holiday forecast across the region. Moving to EMEA, we continue to strengthen and build out our business in Germany and France. These are large, definable markets where Shark Ninja still has significant market share opportunity. Recent meetings with our key retail partners reinforced their excitement to expand shelf placements across more categories throughout Europe. I believe the power of our three-pillar growth strategy cannot be overstated. This balanced approach across new categories, existing category share gains, and international expansion has enabled us to deliver 10 consecutive quarters of double-digit growth. Our diversification across products, distribution channels, and geography should only fortify our position as we move forward. While many view Shark Ninja as a product and marketing company, we're fundamentally a company intently focused on execution and delivering results consistently across all areas of our business. Given our strong performance and expectations for Q4, we're excited to raise our full-year guidance ranges once again, while narrowing them as we enter the final quarter. We're particularly enthusiastic about the holiday season, where our innovative product portfolio and strong retailer relationships have historically positioned us well. To wrap up, I'm incredibly proud about how we've navigated 2025 during a prolonged period of turbulence around us. We have performed admirably across the dimensions we prioritize, extraordinary sales growth with contributions across geographies, gross margin expansion despite significant tariff headwinds and leverage on operating expense without sacrificing on innovation, marketing, or reinvestment in the business. I think this performance in such a challenging environment demonstrates how resilient and unique Shark Ninja is. It's also a testament to the talented group of leaders who have relentlessly worked to drive such strong performance. Results like these don't just happen without coordinated excellence across supply chain, operations, commercial, product development, customer service, and more. The breadth of our execution is a critical factor in the success of Shark Ninja, from new joiners up to our most tenured executives. And I'd like to formally welcome the newest member of this executive leadership team, Adam Quigley. Adam and I have worked together for more than a decade, and I've witnessed firsthand his exceptional financial acumen and strategic thinking ability. He succeeded throughout his Shark Ninja tenure from a manager role when we were under $1.5 billion in revenue to our SVP of global planning and analysis. His responsibilities have spanned some of the most complex challenges, the sale of the business in 2017, listing on the Hong Kong exchange in 2019, navigating through the COVID-19 pandemic, and architecting our tariff mitigation strategy, among others. I believe Adam's deep understanding of our business model and proven track record make him the ideal leader for our finance organization during this exciting growth phase. I'm thrilled to announce our board of directors has officially confirmed him to be SharkNinja's new chief financial officer and now Adam will walk you through our third quarter financial updated and 2025 outlook.

Thank you Mark for the kind introduction and good morning everyone. I am honored to step at a CFO role and join you on the earnings call. I approach this opportunity the same way I have every step of my journey at SharkNinja over the last 11 years. Relentlessly focused on enabling the business to thrive while working side by side with mark and the rest of the executive team my vision is to continue building our finance function as a strategic partner that helps propel shark ninjas continued growth and success with that let's review the quarter that yield record earnings per share for our investors net sales in q3 increased 14.3 percent year over year to 1.63 billion dollars looking at our performance by geography domestic net sales increased 9.5% year-over-year to just over $1.1 billion. International net sales were $530 million, up 25.8% year-over-year as reported, and 21.6% in constant currency. As Mark mentioned earlier, our UK net sales were incredibly strong in the third quarter, up 26.7% year-over-year to $237 million. Mexico is also a standout performer in quarter, while growth in our EMEA business outside of the U.K. moderated slightly. Overall, these excellent results drive confidence in our expectation that international net sales growth will accelerate in the second half of 2025 compared to the first half. Looking at performance by category, net sales in the cleaning category increased 12.4 percent year-over-year to $593 million. Robotics, extraction, and corded uprights all contributed to this success, and we gained considerable market share in the category. Net sales in the cooking and beverage category returned to growth, increasing 6.3% year-over-year to $437 million. Trends here are similar to last quarter, with the Ninja Luxe Cafe Espresso strength offsetting difficult compares in other subcategories, such as air fryers outside the U.S. Net sales in the food preparation category increased 11.9% year-over-year to $411 million. The Ninja Slushie continues to be a global sensation with availability now across our largest global markets. Finally, our beauty and home environment category increased 56.7% year-over-year to $189 million. We experienced broad-based growth across fans, air purifiers, hair care, and skin care in the quarter. Now let's move to gross profit, where we were able to offset higher tariff costs with our relentless focus on profitability. It's worth noting that the two-year sourcing services agreement with JS Global ended as planned on July 31st of this year. In the third quarter, GAAP gross profit increased 17.6% year-over-year to $818 million, or 50.1% of net sales. This represents a record high for GAAP gross margin since our U.S. listing and a significant milestone for Shark Ninja above the 50% threshold. Adjusted gross profit increased 16.4% year-over-year at $820 million for 50.3% of net sales. Adjusted gross margin increased approximately 90 basis points year-over-year with multiple elements of our mitigation strategy offsetting a notable headwind from tariffs. The biggest positive contributor to adjusted gross margin this quarter came from multiple initiatives across our product cost optimization. We continually assess gross margin levels to drive improvement through value engineering to reduce bill material costs and by introducing replacement versions of existing products that carry higher underlying gross margins without impacting consumer value. We also made further progress this quarter by diversifying production across our supply chain to drive further savings and flexibility with our dual source model. While we are pleased with adjusted gross margin performance in the quarter, it's important to note that roughly one-third of the year-over-year expansion came from true outperformance, while two-thirds was the result of favorability related to the timing of tariffs flowing through the financials. Moving down to P&L, our adjusted operating expenses this quarter totaled $531 million, or 32.6% of net sales. This compares to 32.7% of net sales in the year-ago quarter, or 16 basis points of leverage year-over-year. As we've committed before, SharkNinja remains laser-focused on balancing cost discipline with the necessary reinvestment levels to fuel our exceptional growth, and we're delivering on that pledge. I will now review the components of our operating expenses on an adjusted basis. Research and development expenses decreased 3.2% year-over-year to $89 million compared to $92 million in the prior year period, leveraging 99 basis points year over year. I believe this quarter exemplifies how our personnel strategy drives both innovation and efficiency. A year ago, we hired external subject matter experts across new technologies and areas of expertise as we work to develop new solutions to consumer problems. Consistent with our R&D operating model, we strategically brought a portion of that talent in-house, allowing us to retain and develop our knowledge base while optimizing overall operating costs. Sales and marketing expenses increased 20.7% year-over-year to $355 million, compared to $294 million in the prior year period, deleveraging 116 basis points year-over-year. We continue to invest confidently in our differentiated marketing and demand generation efforts, particularly in new and growing geographies. General and administrative expenses increased 7.6% year-over-year to $87 billion, compared to $81 million in the prior year period, leveraging 33 basis points year-over-year. The bulk of that increase relates to higher merchant fees in our direct-to-consumer business, driven by channel growth in EMEA. Profitability improvement is the cornerstone of our financial philosophy at SharkNinja with a focus on adjusted EBITDA. We are very pleased to deliver outstanding performance with adjusted EBITDA growing 20.7% year-over-year to $317 million. This represents a 19.4% adjusted EBITDA margin, up 100 basis points compared to the prior year period, a really incredible effort by the team here. We will continue to prioritize adjusted EBITDA margin improvement by pursuing opportunities on both the gross margin and operating expense lines.

To wrap up the income statement, our gap-effective tax rate in Q3 was 22.6%, while our non-gap-effective tax rate was 22.3%.

Adjusted net income for the period was $213 million for $1.50 per diluted share, compared to $170 million for $1.21 per diluted share in the year-ago period. This represents an incredible 24% increase year-over-year with SharkNinja achieving record results for both GAAP and non-GAAP earnings per share in the third quarter. Turning to the balance sheet and cash flow, we continue to prioritize flexibility given the substantial advantages our balance sheet provides relative to what we observe across the peer group. At the end of the third quarter, cash and cash equivalents totaled $264 million dollars up more than 100 percent year over year with total debt outstanding of 746 million dollars we continue to have nearly 490 million dollars of capacity available to us on our 500 million dollar revolving credit facility total inventories were 1.16 billion dollars exiting the quarter up 7.6 percent year over year we've worked through the majority of the tariff pre-built inventory that we strategically added in late 2024 and early 2025. Our healthy inventory levels position us well heading into the holiday season. Let's move to the updated outlook. Entering Q4, we remain confident in our ability to outperform the market. While tariffs remain a dynamic challenge, our revised outlook assumes current tariff levels persist, including minimum rates of 20 percent for China, 20 percent Vietnam, 19% for Indonesia, Thailand, Malaysia, and Cambodia. In the quarter of 2025, we expect our net sales growth to be around 16% year-over-year. We anticipate the timing impacts I mentioned earlier related to tariffs will put pressure on our adjusted gross margin by roughly 50 basis points compared to the prior year period. We also anticipate nearly 250 basis points of year-over-year leverage on adjusted operating expense as a percentage of net sales. This sizable improvement comes from seasonally strong fourth quarter sales combined with our continued cost discipline finally we expect adjusted EBITDA margin in q4 to increase approximately 200 basis points compared to the prior year period this expansion of course is also impacted by timing shifts related to tariffs when combined with our q3 adjusted EBITDA performance we anticipate second half 2025 adjusted EBITDA margin to demonstrate notable improvement compared to the second half of 2024. For the full year 2025, we now expect net sales to increase between 15% and 15.5% compared to our prior year guidance of a 13% to 15% increase. Adjusted net income for diluted share is now expected to be in the range of $5.05 to $5.15 compared to $5 to $5.10 previously. Adjusted EBITDA is now expected to be in the range of $1.115 billion to $1.125 billion, representing growth of 17.2% to 18.3% year-over-year, compared to the prior expectation of $1.1 billion to $1.12 billion, representing growth of 16% to 18% year-over-year. Net interest expense is now expected to be down $5 to $10 million dollars relative to 2024 compared to our previous outlook of flat. Our gap-effective tax rate expectation is now in a range of approximately 23 percent to 24 percent compared to a range of approximately 24 percent to 25 percent previously. Our capital expenditures guidance remains 180 million to 200 million dollars for the year. We are tracking toward the lower end of that range due to more efficient deployment of capital. To close, our performance in Q3 exceeded expectations across the board. Reflecting on my tenure, I marvel at how we've evolved and what we've accomplished. While we continue delivering strong growth and profitability, the drivers are now much more expansive. We believe our diversification across products, retailers, and geographies should enable us to navigate challenges more effectively than ever before. I've also witnessed tremendous development across our finance organization during my decade plus at Shark Ninja. It is my distinct honor to lead this amazingly talented group as we work to continue driving value for consumers, employees, and shareholders. I'll now turn it back to Mark.

Thanks, Adam. 2025 has been a year of unprecedented challenges for businesses around the world. While many companies struggle in this environment, Shark Ninjas thriving in uncertain times. Where others may lack the willingness or capability to innovate and seize the moment, we're forging ahead full throttle. Why do we operate like this? It's our existential drive to be the absolute best at what we do. This is the cornerstone of the outrageously extraordinary mindset that fuels everything from consumer insights and product development to supply chain and marketing. But mindset means nothing without execution, which is core to our DNA. A. Our success is inextricably linked to the why and the how of Shark Ninja, which I believe distinguishes us from everyone else. I'm proud of what we've accomplished this year and even more excited about what's to come in 2026 and beyond. My sincere gratitude to everyone at Shark Ninja who has gone above and beyond to drive our great results. Thank you.

And this concludes our prepared remarks and i'll now turn it over to the operator to kick off q a operator thank you mark we will now begin the question and answer session and if you would like to ask a question please press star one on your telephone keypad please note due to time and fairness we do ask that you please limit yourself to one question and one follow-up if for any reason you would like to remove that question please press star followed by two the first question comes from brooke Roach with Goldman Sachs. Please go ahead.

Good morning, and thank you for taking our question. Mark, Adam, can you speak to your outlook for category growth for holiday and into 2026? How confident are you in your ability to continue to outperform the category to the same degree into next year? And is your portfolio of new innovation robust enough to cycle your own tough comparisons and continue to deliver a double-digit level of U.S. growth into 2026? Thank you.

Yeah, thanks so much, Brooke, for the question. I guess I'll start with your second question first on new innovation. The pipeline of new innovation that we have coming out I think is great. You can just see what we've done over the last couple of weeks now. I mean, you know, our consumer problem-solving machine was on full display. I mean, we reinvented outdoor heating and fire pit. We solved the problem of stainxiety with our cordless stain force. We brought an at-home facial solution that extracts, moisturizes, and de-puffs your skin.

I'm not sure that there's another company solving all of these different types of problems.

So, you know, I think we've got a great roadmap of innovation. What I think I'm also really excited about, Brooke, is things that we're doing, like, for example, with the Blend Boss, we're reinventing existing categories. I think what we've done with Crispy Pro, you know, look at how we're not resting on our laurels with the air fryer category, but we're trying to completely actually reinvent the air fryer category, you know, with Crispy and now Crispy Pro. So the innovation is coming not just from new categories and kind of home run new ideas, but it's coming from reinventing the base. And I think as we go into 26, I think we're going to see an increasingly larger amount of new products coming from reinventing the base. On your first question, in terms of category growth, I mean, look, I think we've consistently outperformed the market now, you know, for the 10 quarters that we've been a U.S. public company. I believe the innovation cycle is there. I think we're getting better and better at our content creation that we're developing. We're engaging with consumers more.

So, you know, I'm excited about, you know, where things are headed. great thanks so much i'll pass it on your next question comes from randy conic with jeffries please go ahead randy your line is now open hey great can you hear me yep we can all right thanks guys um just wanted to kind of go through uh adam first and foremost congratulations on your new role um in terms of uh if i think about the new design center uh opening up in the last week or so mark Can you talk about, you know, what are your hopes in terms of utilizing that design center to kind of continue to build more muscle into the organization, build more innovation? Where do you see that kind of fitting into the rest of the rest of the infrastructure you've built around the world? Kind of let's start there.

Yeah, Randy, I think I would start with going back to 2014 when we opened up our engineering office in central London and recognized that there was a talent base in London for design engineering that we just couldn't attract in Boston to the degree that we wanted to at the time. And fast forward today, we have over 200 engineers in the Battersea Power Station that has really helped build this kind of chasing the sun innovation approach that Shark Ninja has developed. I think there's a lot of parallels and similarities with that here in New York. And I'm actually in New York now. I think from a creative standpoint, there is just a level of creative talent that's exceptional in New York. I think from a design perspective, I think PR, media buying, social media, we'll have a content creator studio that will be here right in Midtown. I think it's exciting that we're actually going to be designing and developing products here in Midtown Manhattan. I actually have the dean of Columbia Engineering School here last week that was excited to send down students and interns here at the facility. So all in all, I think it's just going to be a great magnet for talent for us. And I think it's going to blend together really well with our teams in Boston and London and around the world, you know, to just bring together the best and brightest people.

Super helpful. I guess my last follow up would be when you think about the next few years and driving continued international growth, maybe remind us kind of just the way you think about international, how big it should be as a portion of a total business within a few years and where you see the biggest opportunities. opportunities, keep talking about massive continued growth in the UK and beyond. And then Adam, just to follow up on gross margin, I think you've talked about there's still ability to kind of bring that further higher in the years ahead. Maybe talk to some of the puts and takes you think about high level from a gross margin standpoint as you think about the next couple of years. Thanks, Scott.

Yeah, look, on the international side, I think what's most exciting is that, you know, our model is replicating globally. I mean, let's start with that. I mean, if I go back a couple of years ago, people would say, well, you know, Europe is so different. It's so fragmented. You know, Latin America, how do you even get to that market? Is it even accessible to you. And I think we've kind of proven out that the model of disruptive consumer-focused product innovation and viral marketing that creates consumer demand, you know, is a global translatable strategy. And we're seeing that, you know, in countries around the world. I'm very excited about Europe. You know, I'm very excited about Latin America. But I'm also excited that, you know, we're building, we're continuing to build a strong business in the UK. I mean, there's strong, nice growth in the UK. I'll continue to reinforce that I think over time, our business in Germany, just because of the market size, you know, will ultimately be bigger than the UK and France, maybe a little bit smaller. But for right now, Randy, we're very focused on, you know, the path to getting to 50% of our business outside of the US.

And that's kind of the you know the short to midterm immediate target for us yeah and on the gross margin front I mean as you continue to see from us we've expanded gross margin considerably you know every quarter you know thus far and what we're seeing you know as we move forward is the changes that we're making they're structural changes right we're improving our product cost through value engineering efforts we're improving our product cost through where we source the product through the supply chain that we've talked a lot about and also we're entering into new categories that are commanding higher price points, that have more structural, higher gross margins. And so the durability of our ability to expand gross margin, I think we feel very good about going into the future because it's really, it's no one thing. It's coming from multiple avenues.

Thanks, guys. Really appreciate it.

We now have Rupesh Parikh with OpenHIMA. Please go ahead.

Good morning, and thanks for taking my question. So just going back to your commentary on the inventory side, it appears to be in really I think you had a high single-digit growth this quarter. Do you believe you have the inventory right now to meet, you know, underlying demand or even even stronger demand out there? Because I know at times you guys have been inventory constrained in recent quotas.

Yeah, thanks for the question, Rupesh. I think where we're at with inventory right now is you saw last year we really leaned in to our balance sheet strength and brought in pre-built inventory ahead of some of the tariffs coming into place. And that's served us quite well throughout this year. What you saw in Q3 of growing about 7%, 8% year over year is we've got healthy inventory stock. We're not in an overstocked position by any means. The stock that we have on hand, we feel good about going into the holiday season. We've talked about some NPDs shifting in terms of timing and potentially picking that up in 2026. But overall, heading into the holiday season, I think we feel really good. And also reflecting on some of the actions that were taken a year ago, feeling really good about that and what's been able to help us on the gross margin front.

Great. And then maybe just a quick follow-up question. Just on the elasticity front, we've heard some players out there, just some of the challenges they've had in actually taking price while you guys have done quite well. So just curious what you're seeing from an elasticity perspective and overall how you feel about your price gaps.

Yeah, Rupesh, we've taken price, But we've done it very, very cautiously. I mean, we understand the consumer is challenged. I mean, we're particularly watching the impact of the government shutdown. And what we've seen to date is that we're still delivering extraordinary value to the consumer. I mean, we're not the highest priced products in the market. We're not the lowest priced products. You could still buy a Shark or Ninja product for $59 or for $999. So I think, you know, we're in all of the key price points that you can, that consumers are looking for. And as long as we continue to maintain, you know, market-leading performance and high-quality products and still deliver them to consumers at a great value, I think that'll work out fine for us. Great. Thank you.

We now have Brian McNamara with CanCode Unity. Your line is open.

Hey, good morning, guys. Thanks for taking our questions. So there was a lot of concern from investors for the last several weeks heading into this trend, pretty much all of which has kind of proven unfounded with these results and guidance. A number of your competitors have reported much weaker results, and one common headwind has been kind of retailer inventory levels. So you had a European competitor profit-worn last month and called out U.S. retailers' quote-unquote wait-and-see attitudes, while a U.S. competitor last week called out a retailer inventory adjustment, and Q3 is kind of higher inventory value due to tariffs were absorbed by the market. So I'm just curious how your business was impacted by these market dynamics. Thanks.

Yeah, Brian, I mean, I guess on your first point, you know, we've delivered 10 consecutive quarters of double-digit top and bottom line growth since we've been a U.S. public company, so I can't speak to what investor concerns were specifically. As it relates to retailer inventory, yeah, I mean, we're experiencing good retailer support. I mean, I think the retailers are leaning in with Shark Ninja. I think they believe in our innovation. I think they believe in the demand generation that we're going to bring to them. I mean, there are, of course, situations where maybe there isn't the inventory levels that we'd like them to be. I think we distribute through lots of different channels. I mean, from, you know, dot-com to brick and mortar to D2C. You know, our job is just to make sure that our innovation is able to be purchased by consumers when we create the demand for it.

And, you know, we love full retailer participation uh in some cases we get it in some cases we don't get it but you know we we still have to you know drive demand and fulfill uh you know fulfill orders for consumers that's helpful and i'll add to that good and and brian i was just going to mention too i think you know one of the things that we can point to is our q4 guidance is sort of you know the confidence that we have um in the retail orders that are ahead and so you know i think you're seeing that reflected also in what we've put out today.

Great. And then secondly, obviously I don't want to front on your 2026 guidance, but you've consistently said you're a double-digit growth company. Is that a reasonable expectation for the top line next year?

Yeah. I mean, I think as we go forward, we're continuing to be very proud of where we're going to land 2025. We're not in a position right now to give any guidance on 2026, but I think we've got a really incredible Q3 that we've just put out today, and I think we're really excited about Q4.

Thanks, guys. Appreciate it.

Thank you.

Your next question comes from Stephen Forbes with Guesenheim Security. Please go ahead when you're ready.

Hey, Mark. Hey, Adam. Maybe just a follow-up on international expansion. As we look out sort of over the next couple quarters here, I was hoping maybe for a formal update on the transitions of the international markets from third-party distribution to self- distribution. I don't know if you can give us maybe a roadmap to think through. And then maybe broader comments on how has the risk parameters of that transition period changed? I mean, we're coming off, right, the Mexico transition. I think you talked about some optimism on a smoother transition ahead. So maybe just would love to hear your most updated thoughts as we look ahead to those transitions?

Yeah, Steve, I mean, I, you know, I think the biggest, you know, as we talked about on previous calls, I mean, I think the biggest learning was, you know, not to approach these things from a big bang perspective, that in each market, you know, likely there is a role for a distributor, you know, particularly in countries that do have a sizable amount of small retailers that maybe it's just not in our best interest to be working with on a direct basis. I mean, you take a country like Spain, you know, there's four major retailers that we're going to work with, but there's a whole lot of other retailers that we might be better off just being serviced by a distributor. And so I think that's more of the model that we're moving towards. You're going to see that in the Nordics. You know, you're going to see that in Poland. You're going to see that in Spain and Italy, likely see that in some countries in South America. So I think that it shouldn't be kind of an event situation. I think you should see it as more of a kind of just an ongoing, smoother transition as we take over some of the larger retailer relationships and continue to partner with distributors to reach the, you know, secondary and tertiary retailers in the market.

And then just a quick follow-up. I don't know if you can provide me a formal update on the path to becoming a domestic filer. It seems to be a point of interest from investors, so I don't know if there's a formal statement that you guys can provide.

You know, as we look ahead to 2026, you know, we have officially, you know, failed the foreign private issuer test, and so, you know, certainly making our way forward as a domestic filer um and that will occur in in in 2026 so yeah on track on that front what we've said before thank you i'll pass it on we have a philip blee with william blair now your line is open morning mark adam adam congrats on the new role uh thank you i wanted to focus on the beauty space a bit more can you maybe provide a bit of

color around the consumer response to all the newness you've released in hair and skin over the past few months? What kind of lifts that could have during this holiday season as a more giftable option? And then what's the opportunity to expand the availability of your skin assortment to retail partners beyond just the specialty beauty space? Thank you.

Yeah, thanks, Philip. Look, we're really excited about what we're doing in beauty, you know, both in hair and in skin and what that potentially opens up for us to other categories in beauty. You know, this will be the first holiday selling season for Cryoglow in the United States and most of Europe. So, you know, we're excited about that. We're seeing great momentum. It's the number one selling skincare beauty device in the U.S. in just a very short period of time. You know, we just launched a product called the Shark Facial Pro Glow. We think it's off to a great start. It won't have broad distribution in Q4, but we think it will as we start to roll it out into Q1 and Q2 and beyond. I think what's exciting about that product is the replenishment topical that is sold with it. I mean, we developed that with this Korean formulation company. So I'm excited that we're not just selling a product, that we're selling a system that the consumer will kind of ongoing engage with us. In the hair care space, we've got a lot of new innovation and technology happening, not just with what we launched today, but the pipeline of what's to come moving forward. You know, I don't view it as that we're only looking at the beauty business to sell that in the prestige, you know, retailers. I think you're going to see broaden retail distribution from us. I mean, we want to be able to positively impact everyone. We think everyone should feel beautiful with our hair care products and our skin care products. So, you know, I think you'll continue to see broader distribution as we get into 26. But we're in very much our early stages in the expansion of our overall beauty business. Yes.

Okay, great. That's super helpful. And then just now that a lot of this accelerated supply chain diversification efforts are behind you and inventory levels seem to be in good shape, how do you think about the potential to accelerate the category availability in international markets more in line with what's available here in the U.S.? And then what kind of lift could that have on the segment? Thank you, guys.

Yeah, you know, Philip, I think, you know, inventory and our global sourcing model, you know, obviously has impacted our ability to roll out as fast as we want or fulfill, you know, as much demand as we wanted to globally. But I think there's another constraint also that we've talked about, which is marketing and just, you know, being able to invest a sufficient amount of marketing on each category to be able to get a foothold in these new markets. I mean, let's not forget, like three years ago, you know, a German consumer didn't know who Shark or Ninja was, you know, and there was no German consumer that had our products in their homes. And so there's still a lot of brand building that's needed. I mean, there's still a lot of education that we need to do in a lot of these markets. So supply chain is a component of it, but I almost see marketing as, you know, an equal or bigger component of it. And it's just going to take us some time as we move forward. And really, I don't want to make the mistake of pushing too far too fast and, you know, not being able to support it properly from a marketing standpoint.

Makes sense. Excellent. So thanks a lot. Thanks.

We have Andrea Teixeira with JP Morgan now. You may proceed with your question.

Thank you, Operator, and good morning, everyone. Congrats, Adam, on the promotion. I wanted to go back, Mark, with the commentary because you did say in the beginning of September at Competitor Conference that some of the inventory may have slipped through into the fourth quarter. And you also mentioned some of the innovation also that had been planned for 2025 could come to fruition in 2026. So I was just hoping to see if, one, that concern that some of these shipments would shift into the fourth quarter actually did not materialize at the end of the quarter. In other words, you don't have that benefit potentially in the fourth quarter. Obviously, we can do the math, but we just want to figure how consumption and shipments dynamics are unfolding in inventory levels. And then if you think on the innovation, obviously, you have announced a very strong pipeline now. But just wondering how that pipeline compares when you started the year or as it unfolded and how it sets you for 2026.

Andrea, let me take the question around Q3 and Q4 and some of the retailer shipment timing. I think every year at this time, we're actively watching and monitoring daily what inventory patterns are and what the retailer shipments are. And so, you know, as the retailers ramp up for the holiday season, and we also ramp up our inventory for the holiday season, that Q3, Q4 timing is often quite tricky. I will say our sales and operations team did an incredible job to really, you know, get as much out as we could, you know, with the retailer orders that we had. And I think, you know, one of the items that Mark mentioned earlier in the call was, you know, retailers really, you know, view us quite favorably right now. and we know we're operating in an uncertain consumer environment and that retailers we can't speak for them but they're going to make their own choices and they're going to make their own bets across who they're buying inventory from and when and i think we've positioned ourselves you know really well for them to prioritize us because they know that we're going to stand behind the products they know that you know we're investing behind the brand and the products that we're launching and i think you know they're looking to win in q4 with us yeah in terms of the innovation, listen, I think we feel very good about the pipeline of what we've developed across

lots of different categories. And as I said earlier, you know, I think we're doing a really good job of innovating in the base. And that's something that I really want to reinforce to investors because, you know, we have a great healthy base business, which is, you know, foundation of the overall, you know, business that we've created. So, you know, things like Blendboss and things like Crispy Pro and things like, you know, improvements to our core vacuum business, you know, those are all, I think, really, really exciting that maybe do not get, you know, some of the fanfare out there that they should.

Thank you. I can confirm that does conclude the question and answer session here. And that does conclude today's call. Thank you all for your participation. You may now disconnect and please enjoy the rest of your day.