Caesarstone Q1 Revenue Falls 14.9% While Gross Margin Expands to 22.3%
CSTE•Caesarstone reported Q1 2026 revenue of $88.7 million, down 14.9% on constant currency, with net loss of $21.1 million or $0.61 per share. Gross margin rose to 22.3% (adjusted 23.9%), driven by third-party manufacturing cost savings, and the company remains on track to achieve positive adjusted EBITDA in Q3 2026.
1. Q1 Financial Results
Caesarstone’s first quarter 2026 revenue reached $88.7 million, a 14.9% decline on constant currency from $99.6 million a year earlier. The company reported a net loss of $21.1 million, or $0.61 per share, and an adjusted net loss per share of $0.32.
2. Margin Expansion Drivers
Gross margin improved to 22.3% from 21.3% a year earlier, with adjusted gross margin rising to 23.9%. This expansion reflects cost savings from the transition to third-party manufacturing partners after closing the Bar-Lev facility and a leaner production footprint.
3. Profitability Outlook
Management reiterated its goal to deliver positive adjusted EBITDA in the third quarter of 2026, attributing progress to strategic restructuring initiatives and strengthened partnerships across its global production network.
4. Balance Sheet and Tariff Update
As of March 31, the company held $52.3 million in cash and equivalents against $1.8 million of debt, yielding a net cash position of $50.4 million. Caesarstone is monitoring a proposed U.S. tariff-rate quota structure with in-quota tariffs of 25% and out-of-quota tariffs of 40%, pending a final determination within 60 days.
