Overview
- Shares fell sharply after the forecast, leaving the stock down more than 40% for the year.
- For FY26, the company projects revenue of $1.55–$1.57 billion (up 18%–20%) and adjusted EPS of $2.80–$2.85, below Wall Street expectations and down from $3.39 last year.
- Management guides adjusted EBITDA to $302–$306 million, a slight increase from $297 million in fiscal 2025.
- Rhode is expected to contribute $200 million to FY26 revenue with a $300 million annual run rate, while organic sales are targeted to grow 3%–4% after about a 3% decline in the latest quarter.
- Fiscal Q2 sales rose 14% to $344 million versus a $366 million consensus, with a temporary shipment pause tied to a $1 price increase now resolved and tariff exposure cited as a cost headwind.