Overview
- For fiscal 2026, the company guided revenue to $1.55–$1.57 billion and adjusted EPS to $2.80–$2.85, below consensus and down from $3.39 last year, with adjusted EBITDA targeted at $302–$306 million.
- Fiscal second‑quarter sales rose 14% to $344 million, missing estimates, as organic revenue declined roughly 3%.
- Rhode contributed about $52 million in the quarter and is projected to add around $200 million this fiscal year with an annual run rate near $300 million.
- Management said a temporary shipment hold tied to an August $1 price increase has been resolved and that shipping has returned to normal.
- Shares fell sharply after the report and several firms, including Piper Sandler, TD Cowen, and Jefferies, cut ratings or price targets as management also flagged gross margin pressure from higher tariff costs.