NYSE:UA
Under Armour, Inc.
A global performance athletic brand focused on innovative sportswear technology and digital direct-to-consumer growth facing recent profitability headwinds.
Key Metrics
Investment Thesis
Bull Case
Investors may view this stock as a turnaround opportunity given the company's resilient revenue stream of $5.16B and strong cash position of $501.4M that provides flexibility for strategic initiatives. The digital segment offers high-margin potential to offset traditional retail weakness once inventory levels are normalized.
Bear Case
The stock faces significant bearish pressure due to a sharp contraction in revenue from $5.90B in 2023 to $5.16B in 2025 and a complete loss of profitability. Accumulated retained earnings deficit of $746.3M and negative operating cash flow of $59.3M indicate fundamental operational challenges that could persist.
About Under Armour, Inc.
Under Armour Inc. designs, develops, manufactures, markets, and distributes athletic apparel, footwear, and accessories primarily for men, women, and kids across the US, Canada, Europe, Asia, Latin America, and Australia.
Analysis
Management Discussion
While the company maintains a substantial revenue base of $5.16B, financial performance has deteriorated sharply with a net loss of $201.3M in 2025 compared to $232.0M profit the prior year. Operating expenses surged to $2.66B while gross profit contracted to $2.47B, suggesting pricing pressures or margin compression within the cost of revenue structure.
Industry Overview
The athletic apparel industry is highly competitive with rapid shifts in consumer preferences towards sustainability and direct-to-consumer models. Companies must continuously innovate product technology to maintain market share against low-cost alternatives from emerging brands and large conglomerates.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $5.90B | $5.70B | $5.16B |
| Cost of Revenue | $3.25B | $3.07B | $2.69B |
| Gross Profit | $2.65B | $2.63B | $2.47B |
| Operating Expenses | $2.37B | $2.40B | $2.66B |
| Operating Income | $283.8M | $229.8M | $-185.2M |
| G&A | $2.37B | $2.40B | $2.60B |
| Stock-Based Comp | $36.8M | $43.0M | $53.0M |
| D&A | $137.6M | $142.6M | $135.8M |
| Depreciation | $135.7M | $136.6M | $134.3M |
| Amortization | $1.9M | $1.5M | $1.4M |
| Other OpEx | $0 | $0 | $58.0M |
| Non-Operating Income | $4.0M | $32.3M | $-19.5M |
| Pre-Tax Income | $287.8M | $262.1M | $-204.8M |
| Income Tax | $-101.0M | $30.0M | $-2.9M |
| Continuing Ops | $388.8M | $232.1M | $-201.9M |
| Discontinued Ops | $-2.0M | $-26.0K | $605.0K |
| Net Income | $386.8M | $232.0M | $-201.3M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $386.8M | $232.0M | $-201.3M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $2.96B | $2.86B | $2.33B |
| Cash & Equivalents | $711.9M | $858.7M | $501.4M |
| Accounts Receivable | $759.9M | $757.3M | $675.8M |
| Inventory | $1.19B | $958.5M | $945.8M |
| Prepaid Expenses | $297.6M | $289.2M | $206.1M |
| Other Current Assets | $0 | $0 | $0 |
| Long-Term Assets | $1.90B | $1.90B | $1.97B |
| PP&E (Net) | $672.7M | $664.5M | $645.1M |
| Intangibles | $8.9M | $7.0M | $5.2M |
| Goodwill | $482.0M | $478.3M | $487.6M |
| Operating Leases | $489.3M | $434.7M | $384.3M |
| Other LT Assets | $244.5M | $312.5M | $449.4M |
| Total Assets | $4.86B | $4.76B | $4.30B |
| Current Liabilities | $1.36B | $1.17B | $1.11B |
| Accounts Payable | $649.1M | $483.7M | $429.9M |
| Current Debt | $0 | $80.9M | $0 |
| Current Leases | $141.0M | $139.3M | $130.1M |
| Other Current Liab | $212.1M | $173.6M | $200.4M |
| Long-Term Liabilities | $1.50B | $1.44B | $1.30B |
| Long-Term Debt | $674.5M | $594.9M | $595.1M |
| LT Operating Leases | $705.7M | $627.7M | $574.3M |
| Other LT Liab | $121.6M | $219.4M | $132.0M |
| Total Liabilities | $2.86B | $2.61B | $2.41B |
| Shareholders' Equity | $2.00B | $2.15B | $1.89B |
| Retained Earnings | $929.6M | $1.05B | $746.3M |
| AOCI | $-67.8M | $-77.1M | $-93.9M |
| Total L&E | $4.86B | $4.76B | $4.30B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $386.8M | $232.0M | $-201.3M |
| Non-Cash Adjustments | $-1.01B | $598.6M | $247.9M |
| Working Capital Changes | $609.0M | $-476.7M | $-105.9M |
| Cash from Operations | $-9.9M | $354.0M | $-59.3M |
| Capital Expenditures | $187.8M | $150.3M | $168.7M |
| Cash from Investing | $-152.8M | $-105.3M | $-126.3M |
| Debt Issuances | $0 | — | — |
| Debt Repayments | $0 | $0 | $80.9M |
| Share Buybacks | $125.0M | $75.0M | $90.0M |
| Cash from Financing | $-126.4M | $-78.7M | $-180.8M |
| FX Effect | $-5.3M | $-19.8M | $4.6M |
| Net Change in Cash | $-294.4M | $150.2M | $-361.9M |
| Beginning Cash | $1.02B | $726.7M | $876.9M |
| Ending Cash | $727.7M | $876.9M | $515.1M |
Frequently Asked Questions
How does Under Armour, Inc. make money?
The company operates through three primary segments: North America (its largest revenue driver), International (covering Europe, Asia, Latin America, and Australia), and Digital (including its own website and third-party retail partnerships).
What are the main risks for UA?
Severe decline in operating profitability with a significant net loss of $201.3M in 2025, heavy reliance on North American markets which may face saturation or competition, high inventory levels of $945.8M indicating potential obsolescence risks, and aggressive cash burn with negative operating cash flow.
What is UA's competitive advantage?
Strong brand equity in the performance athletic wear category, a robust direct-to-consumer digital ecosystem allowing high-margin sales, and proprietary fabric technologies that differentiate its products from mass-market competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.