Crocs Q4 2025 Earnings Beat Estimates

Crocs, Inc. (CROX) said on Feb. 12, 2026, that its Crocs Q4 2025 earnings topped estimates, driven by international strength in the namesake brand and strong cash flow that funded significant share repurchases and debt reduction while it guided for EPS growth in 2026.

Q4 and Full-Year 2025 Results

The company reported consolidated fourth-quarter revenue of $958 million, down 3.2% year-over-year and 4.2% on a constant-currency basis, but above analyst estimates of $918.2 million. Adjusted diluted earnings per share (EPS) fell to $2.29 from $2.52 a year earlier. Adjusted gross margin narrowed to 54.7% from 57.9%, and adjusted operating margin declined to 16.8% from 20.2%.

Direct-to-consumer revenue rose 4.7% year-over-year (3.6% constant currency), while wholesale revenue dropped 14.5% (15.5% constant currency). The Crocs brand generated $768 million in the quarter, up 0.8% year-over-year (down 0.4% constant currency). International Crocs sales climbed 14.1% (11.0% constant currency), offsetting a 7.4% decline in North America. HEYDUDE revenue fell 16.9% year-over-year (17.5% constant currency) to $189 million.

For fiscal 2025, consolidated revenue totaled $4.0 billion, down 1.5% year-over-year and 1.7% on a constant-currency basis. Crocs-brand revenue rose 1.5% year-over-year (1.3% constant currency) to $3.3 billion, with international sales up 11.9% (11.2% constant currency). HEYDUDE revenue declined 13.3% (13.5% constant currency) to $715 million. Adjusted diluted EPS was $12.51, and adjusted operating margin fell to 22.3% from 25.6% a year earlier.

Capital Allocation and 2026 Guidance

Crocs repurchased 6.5 million shares in fiscal 2025 for $577 million, representing about 10% of shares outstanding. In the fourth quarter alone, it bought back 2.2 million shares for $180 million at an average price of $83.63. The company also paid down $128 million of debt. Chief Executive Andrew Rees said, "Our powerful value creation model drove operating cash flow of approximately $700 million," which funded shareholder returns and debt reduction. The balance sheet showed cash of $130 million at Dec. 31, 2025, down from $180 million a year earlier, and inventories of $369 million versus $356 million.

For the first quarter of 2026, Crocs expects Crocs-brand revenue to decline low single digits compared with Q1 2025, while HEYDUDE revenue is projected to fall 18% to 15%. Adjusted operating margin is forecast near 21.5%, with adjusted diluted EPS between $2.67 and $2.77. For the full year, management anticipates HEYDUDE revenue down roughly 9% to 7% versus fiscal 2025, about $25 million in non-GAAP adjustments related to supply-chain optimization, modest operating-margin expansion from last year’s level, and a midpoint adjusted diluted EPS of $13.12. The GAAP effective tax rate is expected near 23%, with an adjusted rate near 18%.

The company’s combination of substantial buybacks, debt reduction, and strong cash flow supports management’s outlook for earnings growth in 2026.