Under Armour Posts $496 Million Loss, Stock Hits 4-Year Low

NEW YORK, May 12 —

Under Armour reported a $496M net loss in Q4 2026 and missed EPS consensus, pushing shares toward their worst single-day drop in four years.

What Actually Happened

A $496M loss against $5.0bn in TTM revenue puts the loss margin at roughly 10 percent. That is not a one-quarter anomaly. Under Armour is burning roughly $0.10 for every dollar of revenue — a profile more common in distressed industrials than in athletic brands that still hold shelf space at major retailers. The EPS miss compounds the problem: analysts had already cut their forecasts ahead of a weak quarter, and UA still came in worse than expected. A loss at this scale does not self-correct in one or two quarters without a discrete, visible action — a plant closure, a brand exit, or a significant headcount reduction. None of those are confirmed in the results.

The Catch

Management is asking investors to hold through a $496M quarterly loss and wait for a 2027 gross margin recovery. That is a long runway to bet on. The deeper problem: guidance issued before costs accelerated does not automatically survive a print this bad. If gross margins stall in Q1 or Q2 2027, the recovery timeline falls apart and management loses the credibility it needs to defend the share price. At that point, $4.825 is not a floor.

Bottom Line

Growth investors have nothing to own here until gross margins turn. Value investors see shares at $4.825 against $5.0bn TTM revenue and face one question: is this a floor or a trap? The next two quarterly gross margin reports will answer that. If margins move toward the 2027 target, management recovers credibility and the stock rises. If they stall, the current price has further to fall. Gross margin is the only number that matters right now.

Run a full Under Armour financial analysis and risk breakdown at basisreport.com/stock/ua.

Basis Report does not hold positions in securities discussed. This is not investment advice.