WD-40 Company Q2 Net Income Falls 32% to $20.3M Despite Revenue Gain

WD-40 Company (NASDAQ: WDFC), a manufacturer of maintenance products and household cleaning solutions, posted net income of $20.3 million for the three months ending February 28, 2026, a 32% decline from $29.9 million in the same quarter last year. The drop came despite an 11% increase in revenue to $161.7 million from $146.1 million. Read more earnings reports.

For the six months ending February 28, 2026, net income totaled $37.8 million, down 23% from $48.8 million in the prior-year period. Revenue for the half climbed 6% to $316.1 million from $299.6 million.

Gross profit for the quarter reached $89.9 million, up 13% from $79.7 million a year earlier. The company's gross margin improved to 55.6% from 54.6%. Operating income for the quarter came in at $26.3 million compared with $23.3 million in the prior-year quarter.

Operating expenses jumped 13% to $63.7 million from $56.4 million. Selling, general and administrative expenses rose to $54.8 million from $49.0 million in the year-ago quarter.

The company reported an income tax expense of $5.5 million for the quarter, compared with a tax benefit of $7.4 million in the same period last year. The tax swing accounted for much of the net income decline.

Cash from operations for the six-month period totaled $24.3 million, up 6% from $22.9 million in the prior-year period. The company used $30.7 million in financing activities, more than double the $12.6 million deployed in the same period last year.

Total assets stood at $473.7 million as of February 28, 2026, down slightly from $475.8 million at fiscal year-end August 31, 2025. Cash and cash equivalents fell to $50.3 million from $58.1 million. Inventory increased to $85.5 million from $79.9 million.

Long-term debt declined marginally to $86.1 million from $86.2 million. Stockholders' equity rose to $269.0 million from $268.2 million at fiscal year-end.

Diluted earnings per share for the quarter came in at $1.50, down from $2.19 in the prior-year quarter. For the six-month period, diluted EPS was $2.78 compared with $3.58.