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Winmark WINA Franchise — Deferred Revenue

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Other financials

Income statement

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Revenue$22.0M+7.6%
Gross profit$20.7M+6.5%
Operating income$13.6M+4.4%
Net income$10.4M-1.9%
EPS (diluted)$2.81-2.8%

Balance sheet

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Cash & equivalents$25.8M-10.2%
Total debt$32.7M-1.7%
Total equity-$37.6M-2.1%
Total assets$43.2M0.0%

Cash flow

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Operating cash flow$10.7M+18.6%
CapEx$40.3K-26.3%
Free cash flow$10.7M+18.9%

Valuation

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Market cap$1.32B-4.8%
Enterprise value$1.33B-4.7%
P/E32.5×-1.2×
P/S15.3×-1.4×

Profitability

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Gross margin96.4%+0.5pp
Operating margin62.3%-2.8pp
Net margin47.1%-2.4pp
FCF margin50%-3.5pp

Returns & leverage

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Return on equity67.2%
Debt / equity0.6×
Current ratio3.8×-0.8×

Where this comes from

Reported directly by Winmark in its filing.

Tagged under the XBRL concept us-gaap:ContractWithCustomerLiability.

The source filing: Winmark’s 10-K, filed February 25, 2026.

Filed
Feb 25, 2026, 12:50 PM EST
Fiscal year
FY2025
Accession
0000908315-26-000007

The Company collects initial franchise fees when franchise agreements are signed. The Company recognizes franchise fee revenue over the estimated life of the franchise, beginning with the opening of the franchise, which is when the Company has performed substantially all initial services required by the franchise agreement and the franchisee benefits from the rights afforded by the franchise agreement. The Company had deferred franchise fee revenue of $7.9 million and $7.5 million at December 27, 2025 and December 28, 2024, respectively.

ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FAQ

What is Winmark's franchise — deferred revenue?
Winmark (WINA) reported franchise — deferred revenue of $7.9M in Q4 2025.
How has Winmark's franchise — deferred revenue changed year-over-year?
Winmark's franchise — deferred revenue increased by 5.3% year-over-year, from $7.5M to $7.9M.
What does franchise — deferred revenue mean?
This metric represents the obligation to provide goods or services to a franchisee for which consideration has already been received or is due. It serves as a measure of deferred revenue, indicating future performance obligations that the franchisor must fulfill under its existing contracts. Tracking this liability provides insight into the pipeline of services owed to the franchise network and potential future revenue recognition.

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