TLF TANDY LEATHER FACTORY INC

Overview and Growth

TANDY LEATHER FACTORY INC generated $76.32M of revenue in fiscal 2025, with net income of $9.10M and an operating cash outflow of $556.00K. Revenue of $76.32M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 2.6% above fiscal 2024 revenue of $74.39M, marking a year-over-year increase. Diluted earnings per share were $1.10, translating the period’s attributable earnings into the amount reported for each diluted share. The company employed $86.63M of total assets, the balance-sheet base supporting its current operating and cash-flow results. Revenue equaled 0.88x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $43.54M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 57.0% of revenue, quantifying the portion retained before operating expenses were recognized. The company recorded an operating loss of $963.00K after the reported operating expense base. An operating margin of -1.3% reflected costs exceeding revenue-level gross profit by 1.3% of sales. After all reported below-operating-line items, the company recorded net income of $9.10M for the fiscal year. Measured against reported revenue, net income produced a 11.9% margin after operating costs and the remaining recognized items. Before income taxes, the company reported $12.30M of earnings, providing a bridge between the operating result and final net income. Pretax income represented 16.1% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $3.20M, the amount recognized between pretax income and the final net-income result. The income-tax provision equaled 26.0% of pretax income, showing the tax burden absorbed by the year’s earnings. The relationship between net income and period-end equity was 17.3%, indicating the profitability achieved on book capital. Net income represented 10.5% of period-end assets, placing the company’s bottom-line result against the total resource base employed.

Liquidity and Capital Structure

Total assets were $86.63M, supported by $34.04M of liabilities and $52.59M of shareholder equity. Current assets were $50.58M against $9.80M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 5.16x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $16.09M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 164.2% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Relative to total assets, liabilities measured 39.3%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 18.6%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 15.6% from $74.92M in fiscal 2024, leaving current total assets higher year over year. Book equity was 8.0% lower than fiscal 2024 equity of $57.15M, showing how shareholder capital changed year over year. The reported cash balance changed 21.2% from $13.27M in fiscal 2024, ending higher year over year.

Cash Flow and Earnings Quality

Cash flow from operations was an outflow of $556.00K, showing that operations absorbed cash during the period. Capital expenditures used $7.54M in addition to the operating cash outflow, increasing the total cash consumed by operations and investment during the period. Operating cash flow and capital spending combined to leave a $8.09M cash deficit after capital spending. Free-cash-flow margin was -10.6%, reflecting a cash deficit equal to 10.6% of revenue after capital spending. The free-cash-flow deficit equaled 9.3% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.