Q.E.P. CO., INC. REPORTS FISCAL 2026 NINE MONTH AND THIRD QUARTER FINANCIAL RESULTS
BOCA RATON, FLORIDA — January 14, 2026 — Q.E.P. CO., INC. (OTCQX: QEPC) (the “Company” or “QEP”) today reported its consolidated results of operations for the first nine months and third quarter of fiscal year 2026, which ended on November 30, 2025.
Net Sales
Net sales for the nine months ended November 30, 2025 were $178.3 million, compared to $187.2 million in the same period of fiscal 2025, a decrease of $8.9 million, or 4.7%. Net sales for the third quarter were $59.1 million, compared to $61.1 million in the third quarter of fiscal 2025, a decrease of $2.0 million or 3.2%. The decrease reflects continued pressure on home improvement spending amid economic uncertainty and elevated interest rates.
Gross Profit and Margin
Gross profit for the first nine months of fiscal 2026 was $63.6 million, compared to $66.5 million in the prior year period, a decrease of $2.9 million, or 4.4%. Third quarter gross profit was $20.3 million, compared to $21.7 million in the third quarter of fiscal 2025, a decrease of $1.4 million, or 6.4%.
Gross margin for the first nine months and third quarter of fiscal 2026 was 35.7% and 34.4%, respectively, compared to 35.5% in each of the corresponding periods of fiscal 2025. Third quarter gross margin reflects the impact of recent tariff increases that were partially offset in prior periods by the sale of inventory purchased before the tariffs were implemented.
Operating Expenses
Operating expenses totaled $48.8 million for the first nine months of fiscal 2026 and $15.9 million for the third quarter, representing 27.3% and 26.8% of net sales, respectively. This compares to operating expenses of $50.0 million and $15.5 million, or 26.7% and 25.5% of net sales, respectively, in the comparable fiscal 2025 periods. The change reflects lower variable freight costs, partially offset by higher personnel-related expenses supporting selling and marketing initiatives.
Interest Income and Taxes
Interest income from invested cash totaled $0.7 million for the first nine months of fiscal 2026 and $0.2 million for the third quarter, relatively unchanged from the comparable fiscal 2025 periods.
The provision for income taxes as a percentage of income before taxes was 26.0% for both the first nine months and third quarter periods, compared to 28.0% in the corresponding fiscal 2025 periods.