Cadre’s first quarter results for 2026 were marked by robust top-line growth, as management highlighted a 19% year-over-year sales increase driven by continued demand for its law enforcement, military, and nuclear safety products. However, a significant decline in operating margin drew concern, with CEO Warren Kanders noting that certain product mix headwinds—especially in the armor and nuclear segments—offset the benefits of strong recurring demand. President Brad E. Williams also referenced softness in the company’s distribution segment, specifically among third-party discretionary products, while emphasizing that demand for Cadre’s core safety offerings remained resilient. Management acknowledged these mixed dynamics, with Kanders stating, “we are watching [distribution softness] from that standpoint…but from a product segment perspective, we look good.”
Is now the time to buy CDRE? Find out in our full research report (it’s free for active Edge members).
Cadre (CDRE) Q1 CY2026 Highlights:
- Revenue: $155.4 million vs analyst estimates of $155 million (19.5% year-on-year growth, in line)
- Adjusted EPS: $0.18 vs analyst estimates of $0.09 (98.7% beat)
- Adjusted EBITDA: $21.11 million vs analyst estimates of $19.8 million (13.6% margin, 6.6% beat)
- The company reconfirmed its revenue guidance for the full year of $747 million at the midpoint
- EBITDA guidance for the full year is $138.5 million at the midpoint, above analyst estimates of $134.7 million
- Operating Margin: 4.8%, down from 10.4% in the same quarter last year
- Market Capitalization: $1.27 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Cadre’s Q1 Earnings Call
- Jeff Van Sinderen (B. Riley Securities): Asked about integration opportunities with TIER Tactical and potential product synergies. President Brad E. Williams responded that both pre-acquisition commitments and early collaborative projects are exceeding expectations, particularly in new product development.
- Larry Solow (CJS Securities): Inquired whether distribution segment softness signals a longer-term concern. Williams clarified that weakness was isolated to third-party discretionary products and not Cadre’s core safety offerings, which continue to show steady demand.
- Matthew Koranda (ROTH Capital): Questioned the cadence of organic growth and backlog conversion. CFO Blaine Browers explained that revenue is expected to be “back half loaded,” with key armor and sensor contracts set for later-year shipment.
- Jack (on behalf of Sheila Kahyaoglu, Jeffries): Sought updates on the plutonium down-blending business and DOE budget headwinds. Williams noted no change in near-term outlook but emphasized a long-term requirement for nuclear cleanup, supporting future demand.
- Mark Eric Smith (Lake Street Capital): Asked about financial expectations for Alien Gear. Browers said recent performance isn’t indicative due to bankruptcy, but the business offers opportunities for both operational improvements and synergies with Safariland.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of integration and performance improvements in TIER Tactical and Alien Gear Holsters, (2) the conversion rate of Cadre’s record orders backlog into revenue—particularly in armor, duty gear, and nuclear segments, and (3) updates on government defense and nuclear budgets, which could impact demand for core products. Evolving trends in public safety funding and further M&A activity will also be important indicators of execution.
Cadre currently trades at $29.79, down from $31.36 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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