For the year ended December 31, 2025, Tandy Leather reported net income of $9.1 million, or $1.10 per share, compared with $0.8 million, or $0.09 per share, in 2024. Net sales increased 2.6% to $76.3 million and gross profit rose 4.2% to $43.5 million, lifting gross margin to 57.0% from 56.2%.

Income from operations fell to a $1.0 million loss from $0.6 million in operating income last year, reflecting an 8.1% rise in operating expenses to $44.5 million. Higher rent, bonus accruals, increased employment costs and a six-week distribution center relocation contributed to the operational shortfall.

Other income totaled $13.3 million, driven by a $16.2 million gain on the sale of the company's headquarters property, which generated net proceeds of $24.9 million. Cash and cash equivalents rose to $16.1 million from $13.3 million, while inventory declined to $33.2 million as management tightened stock levels.

The company renewed its $4 million credit facility with no borrowings outstanding at year-end and used $0.6 million in operating cash flow. Tandy Leather paid a special $1.50 per share dividend totaling $12.7 million in February 2025 and repurchased 445,052 shares for $1.4 million during the year.