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Winmark WINA Software License Fees — Deferred Revenue

Other product segments

Franchise
$7.9M+5.3%

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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

Software license fee revenue is included in the Revenue: Other line of the Consolidated Statements of Operations. The Company bills and collects software license fees from its franchisees when the point-of-sale system is provided to the franchisee. The Company recognizes software license fee revenue on a straight line basis over the franchise duration. The Company recognized $0.4 million, $0.4 million and $0.4 million in software license fee revenue for each of the fiscal years ended December 27, 2025, December 28, 2024 and December 30, 2023, respectively. The Company had deferred software license fees of $1.9 million and $1.9 million at December 27, 2025 and December 28, 2024, respectively.

ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FAQ

What is Winmark's software license fees — deferred revenue?
Winmark (WINA) reported software license fees — deferred revenue of $1.9M in Q4 2025.
How has Winmark's software license fees — deferred revenue changed year-over-year?
Winmark's software license fees — deferred revenue decreased by 0.0% year-over-year, from $1.9M to $1.9M.
What does software license fees — deferred revenue mean?
This metric represents the obligation to provide software services or access to customers for which consideration has been received or is due, but for which revenue has not yet been recognized. It serves as a measure of deferred income related to software licensing, indicating future performance obligations that the company must fulfill. Monitoring this liability provides insight into the company's backlog of software-related commitments and potential future revenue recognition.

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