The Tile Shop (TTSH) Announces Third Quarter 2025 Earnings Results

Tile Shop Holdings, Inc. (TTSH) today announced its financial results for the most recent quarter, revealing a challenging performance. The company reported a quarterly revenue of $83.1 million, falling short of analysts’ expectations by approximately $5.6 million. Additionally, Tile Shop posted a diluted earnings per share of -$0.04, missing the consensus estimate by the same margin.

Key Highlights:

• Net sales decreased by 1.7% to $83.1 million in Q3 2025 compared to Q3 2024.
• Comparable store sales declined by 1.4% due to decreased traffic.
• Gross margin decreased to 62.9% from 66.5% in the prior year, attributed to rising product costs and increased delivery expenses.
• The company reported a net loss of $1.6 million and an adjusted EBITDA of $2.0 million.
• Cash reserves increased to $24.1 million with no debt outstanding.
• Management is focusing on reducing expenses and limiting capital spending amid challenging market conditions.

In the third quarter of 2025, Tile Shop Holdings, Inc. reported a net sales decline of 1.7%, primarily driven by a decrease in customer traffic, which also contributed to a 1.4% drop in comparable store sales. CEO Cabell Lolmaugh noted that while unit volumes increased slightly due to an expanded assortment of competitively priced products, the company continues to face pressure on average selling prices. He expressed optimism that declining interest rates could eventually stimulate demand in the home improvement sector, although current conditions remain challenging with existing home sales at historic lows.

The company’s gross margin fell to 62.9%, down from 66.5% a year earlier, largely due to rising costs and increased delivery fees. In response to these pressures, management is prioritizing expense reduction and cautious capital spending. Despite the current challenges, the company maintains a strong liquidity position with $24.1 million in cash and no debt, positioning itself to navigate through this difficult period.

Tile Shop Holdings, Inc. (TTSH) has experienced a tumultuous ride in the stock market, with its price reflecting a complex interplay of financial metrics. Over the past week, the stock dipped by 0.79%, but it has shown some resilience with a 5.58% increase over the last month. However, looking at a broader timeline, TTSH has faced a decline of 8.37% over the past year, indicating ongoing challenges. The company’s fundamentals paint a concerning picture, with a negative price-to-earnings ratio of -95.37 and a net profit margin that is also in the red. Revenue has contracted at a two-year compound annual growth rate (CAGR) of -6.02%, and free cash flow has plummeted by a staggering 65.61%. Despite a slight uptick in stock price over the last six months, the return on invested capital remains nearly negligible, suggesting that the company is struggling to generate meaningful returns for its investors. As TTSH navigates these financial headwinds, investors will be keenly watching for signs of recovery or further decline.

Tile Shop Holdings, Inc. operates as a specialty retailer of natural stone and man-made tiles, setting and maintenance materials, and related accessories in the United States. It offers natural stone products, such as marble, travertine, granite, quartz, sandstone, slate, and onyx tiles; and man-made products, including ceramic, porcelain, glass, cement, wood look, and metal tiles primarily under the Rush River and Fired Earth brands. The company also manufactures setting and maintenance materials, such as thinset, grout, and sealers under the Superior brand name; accessories, including installation tools, shower and bath shelves, drains, and related products; and offers customers delivery service through third-party freight providers. As of March 3, 2022, it operated 143 stores in 31 states and the District of Columbia, the United States. Tile Shop Holdings, Inc. was founded in 1985 and is headquartered in Plymouth, Minnesota.