Cadre Holdings Reports Third Quarter 2025 Financial Results
JACKSONVILLE, Fla.--( BUSINESS WIRE)--Cadre Holdings, Inc. (NYSE: CDRE) (“Cadre” or “Company”), a global leader in the manufacturing and distribution of safety equipment and other related products for the law enforcement, first responder, military and nuclear markets, announced today its consolidated operating results for the three and nine months ended September 30, 2025.
“We are pleased to report another quarter of strong performance, driven by Cadre’s industry leading brands and favorable trends across our law enforcement, first responder, military, and nuclear end-markets,” said Warren Kanders, CEO and Chairman. “Our teams delivered results above expectations, while expanding our backlog significantly and advancing Cadre’s track record of consistent and stable growth despite a dynamic operating environment. Revenue, gross profit, net income, and Adjusted EBITDA increased significantly this quarter, with an Adjusted EBITDA margin that improved 670 basis points year-over-year.”
Mr. Kanders added, “Our recently announced agreement to acquire TYR Tactical marks Cadre’s sixth and largest acquisition since going public and a meaningful step forward in strengthening our diversified platform of durable safety businesses. Cadre's disciplined M&A program is crucial to accelerating long-term growth, and we are excited to have once again delivered on our pledge to capitalize on attractive inorganic opportunities. Building on our current momentum, we remain focused on pursuing additional transactions in line with our highly selective key criteria and continuing to take advantage of the free cash flow generated by the strong and recurring demand for our mission-critical safety and survivability equipment.”
Third Quarter and Nine-Month 2025 Operating Results
For the quarter ended September 30, 2025, Cadre generated net sales of $155.9 million, as compared to $109.4 million for the quarter ended September 30, 2024. This increase was primarily a result of recent acquisitions and strong demand for armor and duty gear products, as well as the impact of the 2024 cyber incident on the comparable period.
For the nine months ended September 30, 2025, Cadre generated net sales of $443.1 million, as compared to $391.6 million for the nine months ended September 30, 2024, also mainly driven by recent acquisitions, as well as strong demand for nuclear safety and crowd control products.
For the quarter ended September 30, 2025, Cadre generated gross profit of $66.6 million, as compared to $40.0 million for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, Cadre generated gross profit of $187.0 million, as compared to $156.3 million for the prior year period.
Gross profit margin was 42.7% for the quarter ended September 30, 2025, as compared to 36.6% for the quarter ended September 30, 2024, mainly driven by increased volume, favorable pricing net of material inflation, and a decrease in inventory step-up amortization. Gross profit margin was 42.2% for the nine months ended September 30, 2025, as compared to 39.9% for the prior year period.
Net income was $10.9 million for the quarter ended September 30, 2025, as compared to net income of $3.7 million for the quarter ended September 30, 2024. The increase was primarily as a result of increased gross profit, partially offset by increases in selling, general and administrative expenses, as well as other costs.
Net income was $32.4 million for the nine months ended September 30, 2025, as compared to net income of $23.2 million for the prior year period, primarily as a result of increased gross profit and gains from foreign exchange rates partially offset by increases in compensation expense, interest expense and provision for taxes.
Cadre generated $29.8 million of Adjusted EBITDA for the quarter ended September 30, 2025, as compared to $13.5 million for the quarter ended September 30, 2024. Adjusted EBITDA margin was 19.1% for the quarter ended September 30, 2025, as compared to 12.4% for the prior year period.
Cadre generated $77.3 million of Adjusted EBITDA for the nine months ended September 30, 2025, as compared to $66.3 million for the prior period. Adjusted EBITDA margin was 17.4% for the nine months ended September 30, 2025, as compared to 16.9% for the prior year period.
Product segment gross margin was 43.9% and 43.3% for the third quarter and first nine months of 2025, respectively, compared to 37.4% and 40.7% for the prior year periods.
Distribution segment gross margin was 21.3% and 22.0% for the third quarter and first nine months of 2025, respectively, compared to 21.9% and 22.9% for the prior year periods.
Liquidity, Cash Flows and Capital Allocation
Acquisition of TYR Tactical
On October 28, 2025, Cadre announced it has entered into a definitive agreement to acquire TYR Tactical, LLC, a leading global manufacturer of tactical gear and equipment for military, law enforcement, and government agencies worldwide. TYR Tactical produced approximately $92.6 million of revenue in the year ended December 31, 2024, and is expected to be immediately accretive to earnings and Adjusted EBITDA margins. The total consideration is $175 million and is anticipated to close in the first half of 2026.
Med-Eng Wins $50 Million Contract with the Department of Defense
On September 26, 2025, Cadre subsidiary Med-Eng, LLC was awarded a $50 million Indefinite Delivery / Indefinite Quantity (ID/IQ) contract by the United States Department of Defense (DoD), known as the Blast Exposure Monitoring System (BEMO). At the time of award, Med-Eng received the first purchase order for $10 million to be shipped in 2026.
Dividend
On October 21, 2025, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.095 per share, or $0.38 per share on an annualized basis. Cadre's dividend payment will be made on November 14, 2025 to shareholders of record as of the close of business on the record date of October 31, 2025. The declaration of any future dividend is subject to the discretion of the Company's Board of Directors.
2025 Outlook
For the full year 2025, Cadre expects to generate net sales in the range of $624 million to $630 million and Adjusted EBITDA in the range of $112 million and $116 million. We expect capital expenditures to be in the range of $7 million to $8 million. Cadre has not provided net income guidance due to the inherent difficulty of forecasting certain types of expenses and gains, which affect net income but not Adjusted EBITDA. Therefore, we do not provide a reconciliation of Adjusted EBITDA guidance to net income guidance.
Conference Call
Management will host a conference call on Wednesday, November 5, 2025, at 10:00 a.m. EST to discuss the latest corporate developments and financial results. The dial-in number for callers in the US is (800)-715-9871 and the dial-in number for international callers is 646-307-1963. The access code for all callers is 9511718. A live webcast will also be available on the Company’s website at https://www.cadre-holdings.com/.
A replay of the call will be available through November 19, 2025. To access the replay, please dial 800-770-2030 in the U.S. or +1-609-800-9909 if outside the U.S., and then enter the access code 9511718.
About Cadre
Headquartered in Jacksonville, Florida, Cadre is a global leader in the manufacturing and distribution of safety products. Cadre's equipment provides critical protection to allow users to safely and securely perform their duties and protect those around them in hazardous or life-threatening situations. The Company's core products include body armor, explosive ordnance disposal equipment, duty gear and nuclear safety products. Our highly engineered products are utilized in over 100 countries by federal, state and local law enforcement, fire and rescue professionals, explosive ordnance disposal teams, and emergency medical technicians. Our key brands include Safariland® and Med-Eng®, amongst others.
Use of Non-GAAP Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). The press release contains the non-GAAP measures: (i) earnings before interest, taxes, other income or expense, depreciation and amortization (“EBITDA”), (ii) Adjusted EBITDA, (iii) Adjusted EBITDA margin and (iv) last twelve months Adjusted EBITDA. The Company believes the presentation of these non-GAAP measures provides useful information for the understanding of its ongoing operations and enables investors to focus on period- over-period operating performance, and thereby enhances the user’s overall understanding of the Company’s current financial performance relative to past performance and provides, along with the nearest GAAP measures, a baseline for modeling future earnings expectations. Non-GAAP measures are reconciled to comparable GAAP financial measures within this press release. We do not provide a reconciliation of the non-GAAP guidance measure Adjusted EBITDA for the fiscal year 2025 to net income for the fiscal year 2025, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, without unreasonable effort, which affect net income but not Adjusted EBITDA. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. Additionally, the Company notes that there can be no assurance that the above referenced non-GAAP financial measures are comparable to similarly titled financial measures used by other publicly traded companies.
Forward-Looking Statements
Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this press release, include, but are not limited to, those risks and uncertainties more fully described from time to time in the Company's public reports filed with the Securities and Exchange Commission, including under the section titled “Risk Factors” in the Company's Annual Report on Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the Company’s Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward- looking statements to reflect events or circumstances after the date of this press release.
CADRE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)
September 30, 2025
December 31, 2024
Assets
Current assets
Cash and cash equivalents
$
150,875
$
124,933
Accounts receivable, net of allowance for doubtful accounts of $826 and $876, respectively
99,426
93,523
Inventories
112,201
82,351
Prepaid expenses
12,474
19,027
Other current assets
11,240
7,737
Total current assets
386,216
327,571
Property and equipment, net of accumulated depreciation and amortization of $60,893 and $54,384, respectively
77,590
45,243
Operating lease assets
21,719
15,454
Deferred tax assets, net
4,857
4,552
Intangible assets, net
117,909
107,544
Goodwill
179,169
148,157
Other assets
4,595
4,192
Total assets
$
792,055
$
652,713
Liabilities, Mezzanine Equity and Shareholders' Equity
Current liabilities
Accounts payable
$
26,997
$
29,644
Accrued liabilities
61,363
46,413
Income tax payable
1,418
6,693
Current portion of long-term debt
16,266
11,375
Total current liabilities
106,044
94,125
Long-term debt
294,971
211,830
Long-term operating lease liabilities
16,033
10,733
Deferred tax liabilities
24,110
18,758
Other liabilities
10,523
5,752
Total liabilities
451,681
341,198
Mezzanine equity
Preferred stock ($0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of September 30, 2025 and December 31, 2024)
—
—
Shareholders' equity
Common stock ($0.0001 par value, 190,000,000 shares authorized, 40,681,668 and 40,607,988 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively)
4
4
Additional paid-in capital
312,910
306,821
Accumulated other comprehensive income (loss)
565
(1,389
)
Accumulated earnings
26,895
6,079
Total shareholders’ equity
340,374
311,515
Total liabilities, mezzanine equity and shareholders' equity
$
792,055
$
652,713
CADRE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Net sales
$
155,869
$
109,408
$
443,084
$
391,577
Cost of goods sold
89,244
69,392
256,079
235,283
Gross profit
66,625
40,016
187,005
156,294
Operating expenses
Selling, general and administrative
45,627
33,981
132,509
113,277
Restructuring and transaction costs
2,216
515
6,240
3,621
Related party expense
108
94
1,345
2,038
Total operating expenses
47,951
34,590
140,094
118,936
Operating income
18,674
5,426
46,911
37,358
Other expense
Interest expense, net
(3,028
)
(1,991
)
(8,849
)
(5,631
)
Other (expense) income, net
(802
)
1,555
6,599
(225
)
Total other expense, net
(3,830
)
(436
)
(2,250
)
(5,856
)
Income before provision for income taxes
14,844
4,990
44,661
31,502
Provision for income taxes
(3,903
)
(1,335
)
(12,261
)
(8,352
)
Net income
$
10,941
$
3,655
$
32,400
$
23,150
Net income per share:
Basic
$
0.27
$
0.09
$
0.80
$
0.58
Diluted
$
0.27
$
0.09
$
0.79
$
0.58
Weighted average shares outstanding:
Basic
40,666,861
40,607,988
40,649,339
39,723,702
Diluted
40,977,677
40,949,461
40,964,737
40,118,729
CADRE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended September 30,
2025
2024
Cash Flows From Operating Activities:
Net income
$
32,400
$
23,150
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
13,908
12,325
Amortization of original issue discount and debt issue costs
1,075
787
Amortization of inventory step-up
826
3,851
Deferred income taxes
(4,163
)
(11,627
)
Stock-based compensation
6,840
6,255
Remeasurement of contingent consideration
1,489
685
(Recoveries from) provision for losses on accounts receivable
(190
)
757
Unrealized foreign exchange transaction gain
(2,275
)
(788
)
Other loss
268
355
Changes in operating assets and liabilities, net of impact of acquisitions:
Accounts receivable
19,360
162
Inventories
(14,748
)
(2,589
)
Prepaid expenses and other assets
4,607
(4,161
)
Accounts payable and other liabilities
(16,942
)
(21,096
)
Net cash provided by operating activities
42,455
8,066
Cash Flows From Investing Activities:
Purchase of property and equipment
(3,582
)
(4,381
)
Proceeds from disposition of property and equipment
6
74
Business acquisitions, net of cash acquired
(89,590
)
(141,813
)
Net cash used in investing activities
(93,166
)
(146,120
)
Cash Flows From Financing Activities:
Proceeds from revolving credit facilities
—
5,500
Principal payments on revolving credit facilities
—
(5,500
)
Proceeds from term loans
97,500
80,000
Principal payments on term loans
(9,723
)
(9,562
)
Principal payments on insurance premium financing
—
(2,187
)
Payments for debt issuance costs
—
(844
)
Taxes paid in connection with employee stock transactions
(1,185
)
(5,311
)
Proceeds from secondary offering, net of underwriter discounts
—
91,776
Deferred offering costs
—
(683
)
Dividends distributed
(11,584
)
(10,395
)
Other
344
37
Net cash provided by financing activities
75,352
142,831
Effect of foreign exchange rates on cash and cash equivalents
1,301
521
Change in cash and cash equivalents
25,942
5,298
Cash and cash equivalents, beginning of period
124,933
87,691
Cash and cash equivalents, end of period
$
150,875
$
92,989
Supplemental Disclosure of Cash Flows Information:
Cash paid for income taxes, net
$
22,545
$
22,761
Cash paid for interest
$
13,075
$
10,523
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Accruals and accounts payable for capital expenditures
$
16
$
112
CADRE HOLDINGS, INC.
SEGMENT INFORMATION
(Unaudited)
(In thousands)
Three Months Ended September 30, 2025
Reconciling
Product
Distribution
Items (1)
Total
Net sales
$
138,789
$
26,483
$
(9,403
)
$
155,869
Cost of goods sold
77,862
20,843
(9,461
)
89,244
Gross profit
$
60,927
$
5,640
$
58
$
66,625
Three Months Ended September 30, 2024
Reconciling
Product
Distribution
Items (1)
Total
Net sales
$
96,493
$
17,836
$
(4,921
)
$
109,408
Cost of goods sold
60,386
13,936
(4,930
)
69,392
Gross profit
$
36,107
$
3,900
$
9
$
40,016
Nine Months Ended September 30, 2025
Reconciling
Product
Distribution
Items (1)
Total
Net sales
$
391,659
$
79,853
$
(28,428
)
$
443,084
Cost of goods sold
222,189
62,293
(28,403
)
256,079
Gross profit
$
169,470
$
17,560
$
(25
)
$
187,005
Nine Months Ended September 30, 2024
Reconciling
Product
Distribution
Items (1)
Total
Net sales
$
343,711
$
71,615
$
(23,749
)
$
391,577
Cost of goods sold
203,771
$
55,216
$
(23,704
)
235,283
Gross profit
$
139,940
$
16,399
$
(45
)
$
156,294
(1)
CADRE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In thousands)
Year ended
Three Months Ended
Nine Months Ended
Last Twelve
December 31,
September 30,
September 30,
Months
2024
2025
2024
2025
2024
September 30, 2025
Net income
$
36,133
$
10,941
$
3,655
$
32,400
$
23,150
$
45,383
Add back:
Depreciation and amortization
16,420
5,376
3,763
13,908
12,325
18,003
Interest expense, net
7,822
3,028
1,991
8,849
5,631
11,040
Provision for income taxes
18,085
3,903
1,335
12,261
8,352
21,994
EBITDA
$
78,460
$
23,248
$
10,744
$
67,418
$
49,458
$
96,420
Add back:
Restructuring and transaction costs (1)
7,757
2,216
515
7,240
5,371
9,626
Other expense (income), net (2)
4,721
802
(1,555
)
(6,599
)
225
(2,103
)
Stock-based compensation expense (3)
8,369
2,447
2,104
6,840
6,255
8,954
Stock-based compensation payroll tax expense (4)
441
—
—
92
441
92
LTIP bonus (5)
49
—
—
—
49
—
Amortization of inventory step-up (6)
3,858
470
1,541
826
3,851
833
Contingent consideration expense (7)
1,185
632
176
1,489
685
1,989
Adjusted EBITDA
$
104,840
$
29,815
$
13,525
$
77,306
$
66,335
$
115,811
Adjusted EBITDA margin (8)
18.5
%
19.1
%
12.4
%
17.4
%
16.9
%
(1)
Reflects the “Restructuring and transaction costs” line item on our condensed consolidated statements of operations, which primarily includes transaction costs composed of legal and consulting fees. In addition, this line item reflects a $1.0 million fee paid to Kanders & Company, Inc. for services related to the acquisition of Zircaloy for the nine months ended September 30, 2025 and a $1.8 million fee paid to Kanders & Company, Inc. for services related to the acquisition of Alpha Safety for the nine months ended September 30, 2024, which are included in related party expense in the Company’s condensed consolidated statements of operations.
(2)
(3)
(4)
(5)
(6)
(7)
(8)