Hamilton Beach Brands Holding Co
For the period ended Mar 31, 2026. Filed May 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 6, 2026
HBB$32.16-0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001709164-25-000065
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001709164-26-000067
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 46 previous paragraphs and 36 current paragraphs.
21 unchanged; 10 reworded; 5 added; 14 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Revenue - Revenue decreased $11.4 million, or 8.6%, compared to the prior year due to lower volumes in the Company’s U.S. Consumer business.
Current report
Gross profit - Gross profit margin increased to 29.7% compared to 24.6% in the prior year due to favorable pricing and customer mix, partially offset by higher product costs. The margin improvement included a one-time benefit of 190 basis points related to the sell-through of inventory that was priced in anticipation of IEEPA tariffs that were eliminated following the Supreme Court’s ruling. This benefit is non-recurring and will not persist beyond the sell-through of the affected inventory.
Current report
Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses increased by $0.8 million compared to the prior year. The increase was primarily due to accelerated depreciation of the Company’s legacy enterprise resource planning (ERP) system, partially offset by the benefit of restructuring actions taken by management during the second quarter of the prior year.
Current report
Operating activities - Net cash provided by operating activities was $3.3 million, compared to cash provided of $6.6 million in the prior year, representing a decline of $3.3 million. The decline was primarily driven by higher net working capital, including a planned increase in accounts receivable following the Company’s decision to transition away from our arrangement with a financial institution to sell certain U.S. trade receivables of a single customer on a non-recourse basis which shifted the timing of cash receipts. This was partially offset by lower incentive payout compared to 2025.
Current report
Investing activities - Net cash used for investing activities decreased $0.2 million compared to the prior year.
Removed paragraphs (14)
Previous report
Revenue - Revenue decreased $23.9 million, or 15.2%, to $132.8 million compared to $156.7 million in the prior year. The revenue decline was primarily driven by lower volumes in the Company’s U.S. Consumer business, including a delay in orders from one large retailer for most of the third quarter as they assessed inventory levels and pricing in response to the tariffs implemented by the U.S. in April 2025. Partially offsetting this decline was revenue growth in the Commercial and Health businesses.
Previous report
Gross profit - As a percentage of revenue, gross profit margin decreased to 21.1% compared to 28.0% in the prior year primarily due to the flow through of a one-time incremental tariff cost of $5.0 million, which negatively impacted margin by 370 basis points. Most of these costs were from a temporary spike in tariff rates on imports from China to 125%. Additionally, a delay between tariff related rising costs and pricing adjustments temporarily reduced our margins during the third quarter.
Previous report
Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses decreased by $8.2 million compared to the third quarter of 2024. The decrease was primarily driven by $6.8 million of lower personnel costs, including reduced stock-based compensation expense due to changes in stock price and benefits associated with the restructuring actions taken by management in the second quarter.
Previous report
Interest (income) expense, net - Interest expense, net was $0.2 million for the three months ended September 30, 2025 compared to $0.1 million for the three months ended September 30, 2024.
Previous report
Pension termination expense - During the third quarter of 2024, a one-time non-cash expense of $7.6 million was incurred in connection with the termination of the Company’s U.S. defined benefit pension plan related to the reclassification of historical unrecognized losses from Accumulated Other Comprehensive Income.
Previous report
First Nine Months of 2025 Compared with First Nine Months of 2024
Previous report
Revenue - Revenue decreased by $47.3 million, or 10.7%, to $393.9 million compared to $441.2 million in the prior year. The revenue decline was primarily driven by lower volumes in the Company’s U.S. Consumer business due to softness in the U.S. market and some retailers paused buying in the second quarter in order to assess inventory levels and price increases flowing from the new tariffs implemented by the United States in April 2025. While retailers resumed buying in the second quarter, the pause impacted early third quarter sales, especially for one large retailer that delayed orders for most of the third quarter.
Previous report
Gross profit - As a percentage of revenue, gross profit margin decreased to 24.4% from 25.9% in the prior year primarily due to the flow through of a one-time incremental tariff cost of $5.0 million, which negatively impacted margin by 130 basis points. Most of these costs were from a temporary spike in tariff rates on imports from China to 125%.
Previous report
Selling, general and administrative expenses (SG&A) - Selling, general and administrative expenses decreased $10.0 million compared to 2024. The decrease was primarily driven by $8.6 million of lower personnel costs, including reduced stock-based compensation expense due to changes in stock price and benefits associated with the restructuring actions taken by management in the second quarter.
Previous report
Pension termination expense - During the third quarter of 2024, a one-time non-cash expense of $7.6 million was incurred in connection with the termination of the Company’s U.S. defined benefit pension plan related to the reclassification of historical unrecognized losses from Accumulated Other Comprehensive Income.
Previous report
Other (income) expense, net - Other expense, net decreased by $1.1 million for the nine months ended September 30, 2025 driven by currency gains of $0.8 million in the current year compared to currency losses of $0.8 million in the prior year.
Previous report
Income tax expense (benefit) - The effective tax rate was 25.1% compared to 34.7% in the prior year. The effective tax rate was lower for the nine months ended September 30, 2025 due to an increase in foreign derived tax benefits and a reduction in foreign losses subject to a valuation allowance, partially offset by a valuation allowance on a capital loss.
Previous report
Operating activities - Net cash used for operating activities was $14.6 million, compared to cash provided of $35.2 million in the prior year, reflecting a $49.8 million decrease. The decline was primarily driven by a $27.5 million reduction in accounts payable due to lower purchasing activity from decreased sales volume and inventory turnover, as well as shorter payment terms with new suppliers under the Company’s China diversification initiatives. The decrease also reflects less non-cash expense adjustments to net income and changes in other assets and liabilities, primarily related to payment of income taxes and the use of pension surplus assets.
Previous report
Investing activities - Net cash used for investing activities in 2025 decreased $10.5 million compared to 2024. The 2024 period included the HealthBeacon acquisition and a U.S. Treasury bill investment, partially offset by the extinguishment of our secured loan to HealthBeacon. None of these activities recurred in the first nine months of 2025.
Reworded paragraphs (10)
Previous wording
Our operations are managed and reported intwo operating segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health.
Current wording
Our operations are managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: (1) Home and Commercial Products and (2) Health.
Previous wording
Third Quarter of 2025 Compared with Third Quarter of 2024
Current wording
First Quarter of 2026 Compared with First Quarter of 2025
Previous wording
Interest (income) expense, net - Interest expense, net was $0.3 million for both the nine months ended September 30, 2025 and 2024.
Current wording
Interest (income) expense, net - Interest income, net was $0.1 million for both the three months ended March 31, 2026 and 2025.
Previous wording
Other (income) expense, net - Other expense, net was $0.6 million for the three months ended September 30, 2025 compared to $0.3 million for the three months ended September 30, 2024.
Current wording
Other (income) expense, net - Other expense, net was $0.1 million for the three months ended March 31, 2026, compared to other income, net of $0.1 million for the three months ended March 31, 2025.
Previous wording
Income tax expense (benefit) - The effective tax rate was 18.4% and 27.4% for the three months ended September 30, 2025 and 2024, respectively. The effective tax rate was lower for the three months ended September 30, 2025 due to an increase in foreign derived tax benefits, partially offset by a valuation allowance on a capital loss.
Current wording
Income tax expense (benefit) - The effective tax rate was 28.5% and 28.8% for the three months ended March 31, 2026 and 2025, respectively. The Company’s effective tax rate remains consistent for the periods compared.
Previous wording
Financing activities - Net cash used for financing activities was $12.7 million in 2025 compared to net cash used for financing activities of $14.6 million in 2024. The change is due to a decrease in share repurchases during the first nine months of 2025.
Current wording
Financing activities - Net cash used for financing activities decreased $2.1 million compared to the prior year due to lower share repurchases during the first three months of 2026.
Previous wording
HBB does not expect to make voluntary repayments within the next twelve months under the HBB Facility as the rate of return to invest excess cash exceeds the average interest rate of the HBB Facility. A material decrease in interest rates could cause HBB to re-evaluate. The obligations under the HBB Facility are secured by all of HBB’s U.S. assets. As of September 30, 2025, the borrowing base under the HBB Facility was $116.1 million and borrowings outstanding were $50.0 million. As of September 30, 2025, the Excess Availability under the HBB Facility was $66.1 million.
Current wording
HBB does not expect to make voluntary repayments within the next twelve months under the HBB Facility as the rate of return to invest excess cash exceeds the average interest rate of the HBB Facility. A material decrease in interest rates could cause HBB to re-evaluate. The obligations under the HBB Facility are secured by all of HBB’s U.S. assets. As of March 31, 2026, the borrowing base under the HBB Facility was $103.9 million and borrowings outstanding were $50.0 million. As of March 31, 2026, Excess Availability (as defined in the HBB Facility) was $53.9 million.
Previous wording
The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables and inventory of HBB. As of September 30, 2025, interest on outstanding loans under the HBB Facility accrues at a per annum rate equal to, at HBB’s option, either Term Secured Overnight Financing Rate (SOFR) (as defined in the HBB Facility) plus 1.65% or the Base Rate(as defined in the HBB Facility) plus 0.00%. As of September 30, 2025, the HBB Facility requires a fee of 0.20% per annum on the unused commitment there under. The weighted average interest rate applicable to the HBB Facility for thenine months ended September 30, 2025 was 3.26% (after giving effect to the interest rate swap agreements described below).
Current wording
The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible trade receivables and inventory of HBB. As of March 31, 2026, interest on outstanding loans under the HBB Facility accrues at a per annum rate equal to, at HBB’s option, either Term Secured Overnight Financing Rate (SOFR) (as defined in the HBB Facility) plus 1.65% or the Base Rate(as defined in the HBB Facility) plus 0.00%. As of March 31, 2026, the HBB Facility requires a fee of 0.20% per annum on the unused commitment there under. The weighted average interest rate applicable to the HBB Facility for thethree months ended March 31, 2026 was 3.24% (after giving effect to the interest rate swap agreements described below).
Previous wording
The HBB Facility contains customary representations and warranties, events of default and covenants, including, among other things, covenants applicable to HBB and its subsidiaries limiting indebtedness, liens, investments, dispositions and restricted payments. Additionally, if Excess Availability (as defined in the HBB Facility) is less than $15.0 million at any time, the HBB Facility will require that HBB maintain a minimum Fixed Charge Coverage Ratio (as defined in the HBB Facility) of 1.00 to 1.00 until Excess Availability is greater than or equal to $15.0 million for 30 consecutive days. As of September 30, 2025, we were in compliance with all applicable financial covenants in the HBB Facility.
Current wording
The HBB Facility contains customary representations and warranties, events of default and covenants, including, among other things, covenants applicable to HBB and its subsidiaries limiting indebtedness, liens, investments, dispositions and restricted payments. Additionally, if Excess Availability is less than $15.0 million at any time, the HBB Facility will require that HBB maintain a minimum Fixed Charge Coverage Ratio (as defined in the HBB Facility) of 1.00 to 1.00 until Excess Availability is greater than or equal to $15.0 million for 30 consecutive days. As of March 31, 2026, we were in compliance with all applicable financial covenants in the HBB Facility.
Previous wording
The statements contained in this Form 10-Q that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Such risks and uncertainties include, without limitation: (1) uncertain or unfavorable global economic conditions and impacts from tariffs, inflation, rising interest rates, recessions or economic slowdowns; (2) changes in costs, including transportation costs and tariffs, of sourced products; (3) the Company’s ability to source and ship products to meet anticipated demand; (4) changes in or unavailability of quality or cost effective suppliers; (5) the Company’s ability to successfully manage constraints throughout the global transportation supply chain; (6) delays in delivery of sourced products; (7) changes in the sales prices, product mix or levels of consumer purchases of small electric and specialty housewares appliances; (8) changes in consumer retail and credit markets, including the increasing volume of transactions made through third-party internet sellers; (9) bankruptcy of or loss of major retail customers or suppliers; (10) exchange rate fluctuations, changes in the import tariffs and monetary policies and other changes in the regulatory climate in the countries in which the Company operates or buys and/or sells products; (11) the impact of tariffs on customer purchasing patterns; (12) customer acceptance of changes in costs of or delays in the development of new products; (13) product liability, regulatory actions or other litigation, warranty claims or returns of products; (14) increased competition, including consolidation within the industry; (15) changes in customers’ inventory management strategies; (16) shifts in consumer shopping patterns, gasoline prices, weather conditions, the level of consumer confidence and disposable income as a result of economic conditions, unemployment rates or other events or conditions that may adversely affect the level of customer purchases of the Company’s products; (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation; (18) the Company’s ability to identify, acquire or develop, and successfully integrate, new businesses or new product lines; and (19) other risk factors, including those described in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2024. Furthermore, the future i…
Excerpt shortened here; the source contains the full paragraph.
Current wording
The statements contained in this Form 10-Q that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Such risks and uncertainties include, without limitation: (1) uncertain or unfavorable global economic conditions and impacts from tariffs, inflation, rising interest rates, recessions or economic slowdowns; (2) changes in costs, including transportation costs and tariffs, of sourced products; (3) the Company’s ability to source and ship products to meet anticipated demand; (4) changes in or unavailability of quality or cost effective suppliers; (5) the Company’s ability to successfully manage constraints throughout the global transportation supply chain; (6) delays in delivery of sourced products; (7) changes in the sales prices, product mix or levels of consumer purchases of small electric household and specialty housewares appliances; (8) changes in consumer retail and credit markets, including the increasing volume of transactions made through third-party internet sellers; (9) bankruptcy of or loss of major retail customers or suppliers; (10) exchange rate fluctuations, changes in the import tariffs and monetary policies and other changes in the regulatory climate in the countries in which the Company operates or buys and/or sells products; (11) the impact of tariffs on customer purchasing patterns; (12) customer acceptance of price increases or delays in the development of new products; (13) product liability, regulatory actions or other litigation, warranty claims or returns of products; (14) increased competition, including consolidation within the industry; (15) changes in customers’ inventory management strategies; (16) shifts in consumer shopping patterns, gasoline prices, weather conditions, the level of consumer confidence and disposable income as a result of economic conditions, unemployment rates or other events or conditions that may adversely affect the level of customer purchases of the Company’s products; (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation; (18) the Company’s ability to identify, acquire or develop, and successfully integrate, new businesses or new product lines; and (19) other risk factors, including those described in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2025. Furthermore, the fu…
Excerpt shortened here; the source contains the full paragraph.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The following table identifies the components of the change in revenue: