Cadre Holdings Inc (NYSE:CDRE), a global leader in the manufacturing and distribution of safety equipment and other related products for the law enforcement, first responder, military and nuclear markets, stock fell 13.47% (As on March 11, 11:23:27 AM UTC-4, Source: Google Finance) after the company misses market’s expectations for the fourth quarter of FY25. For the quarter ended December 31, 2025, Cadre generated gross profit of $72.6 million, as compared to $77.2 million for the quarter ended December 31, 2024. Gross profit margin was 43.4% for the quarter ended December 31, 2025, as compared to 43.9% for the quarter ended December 31, 2024, mainly driven by lower volumes and an increase in inventory step-up amortization, partially offset by favorable pricing net of material inflation. Gross profit margin was 42.5% for the year ended December 31, 2025, as compared to 41.1% for the prior year period. Net income was $11.7 million for the quarter ended December 31, 2025, as compared to net income of $13.0 million for the quarter ended December 31, 2024, primarily as a result of decreased gross profit year over year. Cadre generated $34.4 million of adjusted EBITDA for the quarter ended December 31, 2025, as compared to $38.5 million for the quarter ended December 31, 2024. Adjusted EBITDA margin was 20.6% for the quarter ended December 31, 2025, as compared to 21.9% for the prior year period. Cash and cash equivalents decreased by $2.0 million from $124.9 million as of December 31, 2024 to $122.9 million as of December 31, 2025.

CDRE in the fourth quarter of FY25 has reported the adjusted earnings per share of 27 cents, missing the analysts’ estimates for the adjusted earnings per share of 41 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted decline to $167.22 million in the fourth quarter of FY25, missing the analysts’ estimates for revenue by 8.4%. This decrease was primarily a result of higher than normal shipments in the prior year due to the cyber incident in the third quarter of 2024. Product segment gross margin was 44.2% and 43.5% for the fourth quarter and full year of 2025, respectively, compared to 45.4% and 42.2% for the prior year periods. Distribution segment gross margin was 21.9% and 22.0% for the fourth quarter and full year of 2025, respectively, compared to 21.8% and 22.5% for the prior year periods.

For the full year 2026, Cadre expects adjusted EBITDA of $136 million to $141 million on revenue of $736 million to $758 million. Analysts are looking for revenue of $728.8 million.