Household products company WD-40 (NASDAQ: WDFC) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 10.7% year on year to $161.7 million. On the other hand, the company’s full-year revenue guidance of $642.5 million at the midpoint came in 1.3% below analysts’ estimates. Its GAAP profit of $1.50 per share was 5.3% above analysts’ consensus estimates.
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WD-40 (WDFC) Q1 CY2026 Highlights:
- Revenue: $161.7 million vs analyst estimates of $154.5 million (10.7% year-on-year growth, 4.7% beat)
- EPS (GAAP): $1.50 vs analyst estimates of $1.43 (5.3% beat)
- Adjusted EBITDA: $31.59 million vs analyst estimates of $28.55 million (19.5% margin, 10.6% beat)
- The company reconfirmed its revenue guidance for the full year of $642.5 million at the midpoint
- EPS (GAAP) guidance for the full year is $5.95 at the midpoint, missing analyst estimates by 2.4%
- Operating Margin: 16.3%, in line with the same quarter last year
- Free Cash Flow Margin: 7.7%, up from 4.5% in the same quarter last year
- Market Capitalization: $2.96 billion
Company Overview
Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years.
With $636.5 million in revenue over the past 12 months, WD-40 is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.
As you can see below, WD-40’s sales grew at a decent 7.7% compounded annual growth rate over the last three years. This shows its offerings generated slightly more demand than the average consumer staples company, a helpful starting point for our analysis.
This quarter, WD-40 reported year-on-year revenue growth of 10.7%, and its $161.7 million of revenue exceeded Wall Street’s estimates by 4.7%.
Looking ahead, sell-side analysts expect revenue to grow 5% over the next 12 months, a slight deceleration versus the last three years. Despite the slowdown, this projection is above average for the sector and indicates the market sees some success for its newer products.
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Cash Is King
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
WD-40 has shown robust cash profitability, driven by its attractive business model that enables it to reinvest or return capital to investors. The company’s free cash flow margin averaged 12% over the last two years, quite impressive for a consumer staples business.
Taking a step back, we can see that WD-40’s margin expanded by 2.4 percentage points over the last year. This shows the company is heading in the right direction, and we can see it became a less capital-intensive business because its free cash flow profitability rose while its operating profitability was flat.
WD-40’s free cash flow clocked in at $12.52 million in Q1, equivalent to a 7.7% margin. This result was good as its margin was 3.2 percentage points higher than in the same quarter last year, building on its favorable historical trend.
Key Takeaways from WD-40’s Q1 Results
We were impressed by how significantly WD-40 blew past analysts’ EBITDA expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its full-year revenue guidance slightly missed and its full-year EPS guidance fell short of Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock remained flat at $221.75 immediately after reporting.
Is WD-40 an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
