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Tennant Company TNC Sales Incentives — Additions to sales incentive accrual

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Other financials

Income statement

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Revenue$324.0M+1.7%
Gross profit$127.9M-4.6%
Operating income$15.9M-48.0%
Net income$7.6M-62.4%
EPS (diluted)$0.44-59.3%

Balance sheet

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Cash & equivalents$76.9M-4.0%
Total debt$392.7M+57.6%
Total equity$533.4M-18.2%
Total assets$1.3B+2.4%

Cash flow

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Operating cash flow-$31.2M-7,700%
CapEx$5.3M+39.5%
Free cash flow-$300.0K-102%

Valuation

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Market cap$1.31B-15.1%
Enterprise value$1.63B-4.7%
P/E30.5×+11.8×
P/S1.1×-0.2×

Profitability

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Gross margin38.8%-3.0pp
Operating margin3.5%-3.5pp
Net margin4.4%-4.1pp
FCF margin-0.2%-5.5pp

Returns & leverage

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Return on equity8.5%-9.6pp
Debt / equity0.7×+0.4×
Current ratio0.0×

Where this comes from

Reported directly by Tennant Company in its filing.

Tagged under the XBRL concept tnc:ContractWithCustomerLiabilityIncreaseDecreaseForSalesIncentiveAccruals.

The source filing: Tennant Company’s 10-Q, filed August 6, 2026.

Filed
Aug 6, 2026, 2:36 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0000097134-26-000024
Line itemSix Months Ended June 30, 2026Six Months Ended June 30, 2025
Beginning balance$14.8$15.6
Additions to sales incentive accrual15.312.5
Contract payments(13.5)(12.1)
Foreign currency fluctuations(0.2)0.8
Ending balance$16.4$16.8

Item 1. Financial Statements

FAQ

What is Tennant Company's sales incentives — additions to sales incentive accrual?
Tennant Company (TNC) reported sales incentives — additions to sales incentive accrual of $9.5M in Q2 2026.
How has Tennant Company's sales incentives — additions to sales incentive accrual changed year-over-year?
Tennant Company's sales incentives — additions to sales incentive accrual increased by 39.7% year-over-year, from $6.8M to $9.5M.
What is the long-term trend for Tennant Company's sales incentives — additions to sales incentive accrual?
Over 4 years (2021 to 2025), Tennant Company's sales incentives — additions to sales incentive accrual has grown at a -14.5% compound annual growth rate (CAGR), from $38M to $20.3M.
What does sales incentives — additions to sales incentive accrual mean?
This metric captures the periodic increase in the accrual balance for sales incentives, such as rebates, volume discounts, or promotional allowances offered to customers. It reflects the company's ongoing commitment to incentivize sales volume or market penetration through contractual agreements. An increase in this accrual often signals higher anticipated promotional activity or a change in the estimated payout rates for existing customer programs.

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