v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
3. Segment Reporting

Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company has two operating segments, Domestic and International, for which discrete financial information is available and regularly reviewed by the CODM, who is the Company’s Chief Executive Officer (“CEO”). Domestic consists of the United States and Canada, and International consists of markets outside the United States and Canada.

The Company has determined that these two operating segments are aggregated into one reportable segment based on the criteria in ASC 280-10-50-11. Domestic and International have similar economic characteristics, including similar long-term gross margin profiles, and are similar in the qualitative factors specified in ASC 280-10-50-11, including the nature of the products and services, the nature of the production processes, the type or class of customer, and the methods used to distribute products. Both operating segments sell substantially the same products and services, which are supported by a single global sourcing/manufacturing ecosystem and distribution model, and serve similar classes of customers (including large retailers and end consumers).
The CODM uses gross profit as the primary measure to assess performance and allocate resources, and reviews operating results, including gross profit information, at both the consolidated level and by geographic operating segment. The CODM also reviews operating expenses and other performance information primarily on a consolidated basis, including comparisons of functional spend categories to forecast, to assess variances and trends. Transactions between operating segments are not material. The following table presents selected financial information with respect to the Company’s single reportable segment for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in thousands)
Net sales$1,765,476 $1,444,876 $3,178,282 $2,667,514 
Less:
Cost of sales905,139 736,709 1,622,977 1,356,121 
Advertising expenses and consumer insight initiatives184,886 163,821 287,482 257,836 
Personnel expenses(1)
168,034 140,979 321,274 280,975 
Delivery and distribution expenses124,986 98,834 231,758 189,008 
Professional service expenses(2)
43,235 31,410 83,915 65,722 
Merchant, processing, and other fees26,740 20,762 46,694 40,386 
Facilities and technology support costs23,526 20,698 44,423 42,627 
Depreciation and amortization expenses(3)
18,280 17,196 37,068 33,953 
Prototypes and testing expenses17,108 13,651 31,980 24,138 
Other segment items(4)
74,162 32,169 126,806 63,155 
Interest expense, net7,890 13,765 14,497 26,394 
Other expense (income), net7,797 (26,003)18,133 (39,219)
Provision for income taxes33,877 41,287 59,997 68,985 
Segment net income$129,816 $139,598 $251,278 $257,433 
Reconciliation of profit or loss
Adjustments and reconciling items— — — — 
Consolidated net income$129,816 $139,598 $251,278 $257,433 

(1)Excludes share-based compensation, a non-cash expense related to awards issued from the SharkNinja Equity Incentive Plan. These costs have been excluded from personnel expenses and reclassified to other segment items, as they are not presented to or reviewed by the CODM.

(2)Excludes litigation costs incurred and related settlements for certain patent infringement claims, false advertising claims against the Company, and product safety concerns, and excludes costs incurred related to the voluntary product recall. These costs have been excluded from professional service expenses and reclassified to other segment items, as they are not presented to or reviewed by the CODM.

(3)Excludes amortization of acquired intangible assets that the Company does not consider normal recurring operating expenses, as the intangible assets relate to JS Global’s acquisition of the Company’s business. These costs have been excluded from depreciation and amortization expenses and reclassified to other segment items, as they are not presented to or reviewed by the CODM.

(4)Other segment items include travel expenses, commissions, miscellaneous expenses and the expenses listed in Notes 1 through 3 above.
The accounting policies of the Company’s reportable segment are the same as those described in “Note 2 - Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Segment assets are not regularly provided to the CODM, and therefore the measure of segment assets is reported as total consolidated assets.