All right, let's get started. Thank you everyone for attending our 46th Annual Growth Conference. My name is Brian McNamara. I am one of Canaccord's analysts in the consumer space. We are delighted to have SharkNinja with us today, to host CFO Adam Quigley and James Lamb, who heads up IR. Thank you very much for joining us, guys. Absolutely. The company reported another strong beat and raise quarter last week. We actually pulled the buy side ahead of time because the bar felt like it was higher than sell side estimates, and you cleared it with ease. How do you do it, and what is the secret sauce? It does not feel easy, that is for sure. Honestly, I think you look at Q2. Q2, I think, is very emblematic of what we set out to do every year, right? It is broad-based growth. It is not any one category. It is not any one country. It is not any one thing that we are going after. I think at any given quarter, we are going after 10, 12 different things, right? Right. I think Q2 is a good example when things go right, that is a 22% growth quarter for us. We are setting out to do that. It is hitting on new categories, it is hitting on existing categories, it is hitting on innovations in the base. It is hitting on international. Look at the U.S. business, right? I think we are most excited, if I were to choose one thing, don't tell the international team, but the U.S. growth of 18%, I think, is something that is really a proof point in the strength of the business right now. For us, I think Q2 was great in many regards. We knew we had some tough comps coming into it from Q2 last year, where we pulled a lot of levers in order to start offsetting tariffs. The team did an incredible job and feeling great about those results. Fair or not, this stock has always been associated with tariffs for at some level. Yeah. You guys have done a ton of work moving supply chains, diversifying suppliers, a whole host of other things that the company triggered last April after Liberation Day. Now you are in receipt of roughly $250 million in tariff refunds. Tell us about the work involved that went into tariff mitigation, what you learned, and how- Yeah you will deploy those refunds. Yeah, going back to first week of April, right, when Liberation Day hit, we mobilized the entire organization. We have talked a lot about this, that whole week was orienting around finding 1,500 different initiatives to help offset tariffs, from pricing to costing, operating expense. The entire P&L was looked at, and we took a lot of actions right out of the gate. Again, I think that is part of what made Q2 a tough comp in some regard. By putting everything on the table early and then also acting on price, acting on cost, acting on OpEx early, we were able to give ourselves flexibility as those rates inevitably changed throughout the year. That moment was also very representative of how SharkNinja operates. You look at some of the AI work we've done and some of the jailbreak posts that Mark has shared on LinkedIn and other forums. When there's an opportunity, when there's a problem, we mobilize. Right. We don't sit around and wait and evaluate it. We just start moving because inevitably it's easier to change direction when you're already moving. That's always been sort of our idea. When you think about now getting the refund, to recap, $247 million is what's been accepted by the U.S. Customs and Border Protection. It has not been paid yet, but that's what we've filed for and has been accepted. We do expect to book that in Q3. We will treat about half of that related to 2025 as an add back in the year, so we'll adjust that out of 2026. We've been working with EY to determine what is related to 2025 versus what's related to 2026. Based on inventory turns, it's about half and half. The other half that we keep within 2026, that's an opportunity. There's kind of four buckets that I think about of where those dollars go. The first bucket is we did disproportionately raise our guidance. Operationally, we raised sales a good amount. You saw a good amount of flow through from EBITDA. On top of that operational performance, we're then flowing through another roughly $30 million of EBITDA related to the tariffs. That's kind of the first bucket. The second bucket is the macro headwinds have persisted. Tariffs are now 12.5%. They were 10%, kind of 0%, but now they're 12.5%. That 2.5% delta is a new hit to the back half of the year. Part of it's going to offset that. Not a huge number, but it's a number. The other piece is commodities. Commodities have stayed elevated. It's not just resins with the Middle East crisis. It is aluminum, it's silver, it's copper. It's some of the materials that, of course, are still in high demand with everything going on with AI. Commodities, tariffs is kind of the second bucket, equal weighting. The next two buckets are the exciting part. One of them is reinvestment. We're reinvesting in the business across media. That's new categories, new geos, brand-building type media. Media, not to maximize revenue in 2026, but media to drive momentum into 2027. Investment across AI. We continue to do that. Not a huge splash that's going to make a headline, but more prudent projects that have time-bound deliverables, and so accelerating some of that. There's some other parallel path ideas that we're working on across R&D, so pulling forward some initiatives that maybe we would've otherwise waited till 2027 to do, trying to do those now in Q4 and pull that ahead. So big opportunity to reinvest in the momentum of the business and invest in the things that we are already doing today. The fourth bucket, I am going to call it flexibility, right? Let us see what the rest of the year brings. Can I reinvest more of that? Do we need to adjust prices? Do we need to look at commodities? Do we need to drop more to the bottom line? That is sort of where we are reserving the right to be flexible. The company launches roughly 25 new products a year. How do you avoid the boom-bust nature of new product launches? Those 25 products, 20 of them, on average, maybe more, 21, 22, are in existing categories, right? So existing categories is not boom bust. Existing categories is strengthening the core. Just this morning, I delighted the family with the unboxing of a brand-new Luxe edition cordless stick vacuum, right? The other one was fine. It was two years old, but that employee discount was appealing, and my son particularly was excited. But I look at the two products right next to each other, you would think they were from different companies. One was two years ago, one is today. The one today is amazing. Check it out. There are some great colors out there. They fit with the beautiful modern design, and the quality is different, the functionality is different. There is a big difference. Now, look, I get I work at SharkNinja, so new vacuums every day is kind of a standard occurrence. But I think that is a great example of just how you reinvent the core, how you bring newness to the market, how you help people retire their products early, and solve a new consumer problem. The 25 new products, so many of that is in the existing business across existing categories. The other pieces are within new categories. We have launched two new categories this year. We have got another one coming, but I think the dependency on new categories, that is not the story of this business. The story of this business is developing and maintaining a strong core, continuing to invest in that, and then as the new categories come about, they eventually end up back in the core. CREAMi. CREAMi was a big product. SLUSHi, big product. Those are all in the core business now. We were checking in this morning, and we were stopped by the folks at the front desk talking about the new Ninja SLUSHi that they bought, and Right they were going to be making a vodka water drink this weekend. I'm like, "You've got to add allulose syrup to that to make sure it slushes properly." We asked, "Did you buy the new one?" "No, we didn't buy the new one." That to us, that brand new one that we just came out with, that's now innovation in the core, and that's giving people another reason. Now there's dual zone. Maybe someone that said, "Hey, I don't need that Ninja SLUSHi machine. I got kids, I got adults. I can't do two Ninja SLUSHIs at once," now they can. There's a reason for people maybe to revisit that product that they wouldn't have otherwise. Brian, just one thing to add. We get all the time, this, what we think is a misperception that the growth of SharkNinja is driven only by new categories. We introduced very intentionally some new IR materials this quarter that we just reported- Yeah to combat that notion, and it turns out only about 20% of our growth contribution over the last three years comes from new products that have been released two years or less. The majority of the growth, what's really doing the work, to Adam's point, is the existing base business, and that only compounds and gets bigger and more diversified as we enter new channels, geos, and as new categories evolve into existing. Understanding the company plans for singles and doubles when you launch new things. Right Or a Gen 2 of an existing category, what products or innovation have surprised you the most to the upside this year? Honestly, I think it is the broad-based nature of the growth. Because, again, we go into the year planning a lot of singles and doubles, and I think the quantity of singles and doubles that we saw this year is perhaps what is most surprising. Because you plan all of those knowing that there is going to be some strikeouts, there is going to be some that just do not work out. I think the new products have kind of been maybe icing on the cake, if you will. I think Ninja Crispi Microwave, no revenue really hit Q2 for Ninja Crispi Microwave, but I think the reception on Ninja Crispi Microwave has been more than I expected. I do not personally think much of countertop microwaves in my day-to-day, but that product has really resonated. Some of the impressions are some of the best amount of impressions we have seen on new products. We have got retailers and consumers that are extremely excited about this, and it exists within a multi-billion dollar TAM that we previously did not participate in. For me, that is one that is extremely exciting because that is a whole other arena for us to participate in. I think some of the other new products, Shark ChillPill, I think, has been a really exciting one, not because of the individual revenue that generates, but in the way of how it has become part of culture. Right? The company gets really excited sending around pictures of Rihanna carrying one around and Aryna at the French Open using it, and the camera catching her using it, and obviously those are intentional outreaches, but them using it in their personal life certainly is nothing we are forcing them to do. So that is kind of an exciting one as well because it is really cementing Shark as part of that culture. Then you look at some of the heatwaves that we have had this summer, particularly across Europe, Shark has really cemented its name as the great brand in fans, and we have a great fan portfolio. They have done extremely well. But new product innovations across the upright vacuum category, continuing to invest in a category that the market is down without us, and with us it is up a bit, but we are still driving share in a mature market like that. I think what excites me most is the broad-based nature. Look, we're all finance folks for the most part. We love a good diversified portfolio. That's SharkNinja. Right. When I think about what's exciting, it's that we have this diversification that even as we've had these ups and downs and different turmoils, we're able to keep persisting through because we're appealing to the 16-year-old on TikTok, we're appealing to the retiree, and we're appealing to everybody in between at various cycles of their life. That to me is what's most exciting, because that's durable growth in my opinion. I think the company's in 40 subcategories today, correct me if I'm wrong, and you enter- Yeah maybe one to two new ones each year. Most companies have a few core competencies, and you guys are generally good at really anything you enter, at least historically. How is that? How is that possible? So far so good. We've got one more category coming out this year, so that'll be 41. Our core competency is not blending, it's not vacuums, it's consumer problem-solving. I think over the last three years, that's really been our message. I've been with the company for 12 years. I've seen it from how we solve a consumer problem with a steam mop to today when we solve a consumer problem with a propane grill. I'm not sure I would have ever imagined such a leap, because if you look at the products individually, it's really hard to see how they connect to one another. You've got a CryoGlow LED skincare mask, and then you have a fire pit. In what world are those coming from the same company? But at the end of the day, if you think about what our competency is, it's solving the consumer problem. Each of those categories, each of those products, we went to market because we saw a consumer problem, we recognized it, we were able to solve it with engineering, and we were able to then communicate it with our marketing, and then reach the consumer in a way that perhaps they weren't reached before if the product was similar in the market, or that they didn't understand what it did. But through just this ability to spot the issue, solve the issue, and then communicate the solve that we've created for the issue, that's our core competency. The other thing I would add, Brian, is the extensibility of the brands I think has been really important. Shark, as recently as 2021, was really a cleaning brand, and then moved into beauty with hair tools, and is now a skincare player, and we have aspirations to continue to go deeper in beauty, wellness, things of that nature. Ninja historically was inside your kitchen, permeated to more of your home, and now we're going outside the home. So we really think that both the Shark and the Ninja brands have given us license to continue to pursue all these new categories. That's something you have to earn. You have to do it with intention incrementally, but we've had a lot of success making the brand stand for more categories. Got it. So the company invests a lot in marketing and R&D, much more than your peers. I remember before you guys listed three years ago, I think you had roughly 750 R&D engineers. Today, you have, what, 1,100, 1,200? Are your engineers assigned to certain categories, or does everybody kind of do everything? Tell us about your R&D organization. When you look at the R&D organization, it's really split into three buckets. There's product development, and so call this the strategy arm of the group. They're the ones that are acting on the consumer insights. They're finding the consumer insights. They're working with the consumer. They're testing. They're talking with the consumer. They're kind of shaping what does the product need to be, what problem are we trying to solve, how might we solve that problem? That is then handed to the engineering organization to then do it, to then develop the product, to then bring it to fruition, to then meet the needs of the issue that we're trying to solve, and also to try to make the next generation of that better, and to find efficiencies in that. So that's kind of the engineering side of that puzzle overall. The third one is then product excellence. So product excellence is the quality arm, if you will, but going much further than that to after the product launches, we're looking at every single consumer review. We're reacting to every single consumer review. We're communicating with the consumers at that point. We're ensuring that our product in the marketplace is upholding the value that we sold the consumer on to begin with. So, when we think about R&D in that regard, not every organization will say that quality is part of R&D, but it absolutely is to us, because that quality organization, product excellence organization, they're feeding information back in engineering. They're feeding it back into product development, and they're helping even influence the roadmap. Because again, all cycles at the beginning and at the end, we're communicating with the consumer. Keeping the consumer at the forefront, engineering, I have seen them do it, and it is great. Their minds think very different than mine does, but they can create an amazing technology, an amazing product. But if the consumer doesn't want it, you don't need it. They can make the best motor possible, but if it doesn't solve a consumer problem, it is not going to ultimately drive the turnover that we are looking for. I think those three together in terms of just keeping the consumer at the forefront and then ensuring that we are continuing to drive new innovation, create new ideas, that to me is what keeps that flywheel spinning within the overall R&D organization. We invest more than our peers. Our gross margin I think is greater than the majority of our peers as well. That's the lifeblood. That's what we fuel that with, and that's an area that we have said before, maybe there are some years that we leverage R&D as a percentage of sales, but ideally in the long run, we probably pace it with sales. Because again, there are so many opportunities out there for us to get into. Let's shift gears to international. I think the U.K. is your largest international market. You started out as a distributor market there. You transitioned to a direct model in 2014. Mexico and several other markets have seen similar shifts over the last year or two. Walk us through your strategy when you enter a new market and then when you feel comfortable to transition into a direct model. The U.K. is the largest international market. Overall, our strategy, even with U.K. going back 10 years ago, has been distributor first. It is a low capital means of expanding internationally. It is a way of getting in, learning the consumer, learning the retail landscape, and I think over the last decade that has been the traditional way. You have got to get in with the retailers to learn the consumer, learn the market, and sort of play by their rules, I would say, in a way. I think what we have learned over the last year is that we have a way to get to the consumer directly faster through D2C, through pure players like Mercado Libre and Amazon and others like that, as well as through TikTok Shop. Getting to the consumer quicker, it also is a little bit of a duty because social media is global in many regards. There is a lot of countries over the last couple of years that the demand is pent up. You see the comments, "When are you coming to my country? When are you coming to this country?" For us, the quickest way to do that is DTC. It is the pure players out there, and it is through TikTok Shop. I think our path to market has accelerated in terms of how we have transitioned our distributors now to a direct model. One of the most exciting things about perhaps Q2 and even reflecting on the last year is Mexico. We got a lot of questions Q1 2025 on Mexico. You might have asked a couple yourself, Brian. Because it was messy. We had to buy back inventory. It was not really clean. I think we were still only a year and a half into our public company life, so it looked a little odd to us. We knew it was the right thing to do because we just wanted to move quickly. But it looked choppy. Fast-forward to today, that is one of our most exciting markets. They are hitting on all cylinders. That transition could not have gone better in hindsight sitting where we are sitting today. The team has the SharkNinja mindset. The MD of Mexico is actually someone that I mentor on a monthly basis, and I come out of that conversation so amped up. I do not know if he does, I hope he does. But I am more energized talking to him because of what they are building there. You do not get that with a distributor. You do not get that level of excitement because he is cascading it to his team. He is cascading it to the retailers. I think maybe more importantly, he is cascading it back to headquarters. He is bringing it to the product teams. He is bringing it to the marketing teams, engineering teams to help them help him ultimately drive that business. Why I talk about Mexico is that that is the playbook that we have now proven out. We knew it was a good playbook. We thought it was going to work. Now it is really proof point to where as we transition now officially Spain, Italy, Poland, other countries, we now know that that playbook is working and we are seeing it work. But I think what has changed in the last year is this kind of direct-to-consumer model that allows us to get in quicker and not necessarily. We still need the retailers, absolutely. We are able to not just bide our time and slowly build the relationships. We can do it much faster. You might have already answered the front part of this next question, but what international markets are you most excited about? Secondarily, what international markets are you not in currently that you should be in? It's next to Mexico. Germany and France, honestly. We want to talk about all the new distributor markets, and absolutely, that's super exciting. But I look at Germany and France as countries that now are starting to get to the level of category diversification. Early innings still, but the category diversification that the U.K. has started to build. We saw the period of a year ago, two years ago, where the U.K. was having some tough comps with air fryers. They were too dependent on the air fryer category. Inevitably, the air fryer category just grew super fast. But now you look at Germany and France, there's so much white space there. The new categories that we've entered into recently, it's low market share, right? So there's low penetration for us. So I think there's a ton of white space. I think we've got the right foundation framework in those countries, and it's the same story really on some of the new direct markets. We've got a handful of categories that are driving the business today, but I think the white space is probably the most compelling thing. As far as what countries we're not in today, Africa I think will be a big piece for us, a big focus for us as we look at 2027 beyond. We've started to plant some seeds, South Africa this year, and I think there's more to come in that regard. There's more across Latin America. We still have a number of distributors operating for us in Latin America, they're not yet direct. So look, our model is plant a lot of seeds, allow those to grow, develop, and also for us to learn and pivot our model if we need to. But right now, the markets that we're in today as a direct company, there's still so much white space to capture there. Tell us how your marketing strategy has evolved. I remember being at your Investor Day three years ago. I was shocked at how important infomercials were not too long ago, and QVC. Yeah. Today you are doing TikTok Shop, influencer, social media, all that. Kind of discuss that evolution. Yeah, it is interesting. We have always talked about an omni-channel presence. I remember back when private equity came into the business in 2017, I think, and we talked about the omni channel. I think at the time it was the first time we were kind of using that terminology. That still is the focus today, right? It is be where the consumer wants to shop, right? We are not going to force the consumer to our website. We are not going to force the consumer to Amazon. We are not going to do all these retail exclusives. That is not our model. Our model is to be where the consumer wants to shop. That is why we sell across perhaps the broadest spectrum of retailers of anybody in our space. Being where the consumer wants to shop, that is where the consumer trend has changed, right? The consumer wants to buy on social commerce. That is new as of the last year. We did not sell a dollar on TikTok Shop a year ago. Now it is becoming a decent chunk of the business. Direct to consumer. We did not give the consumer a reason to shop on our website a year ago, right? It was not a great website. I think our CEO called it a terrible website at one point. But today it is a desirable landing spot. It also brings the two brands together, and so I think that is super exciting. But I think to your point on what has not changed, what has not changed is the product. So when I think about the infomercial business, that was the largest spend of media when I joined, long form, right? The 20-minute commercial. That was the biggest chunk of media that we spent. And what we talked about at the time was, is the product infomercial-able? Which is a real word, I'm sure. What it meant was can you talk about it for 20 minutes and still be interesting, right? Can you talk about the product for 20 minutes and still be interesting? If that was the case, that had a lot of consumer value, right? The 8-in-1 product, the 3-in-1 product. You were able to capitalize on all the different things that product brought to the consumer so that the consumer had no reason but to convert and say, "Yeah, I can't live without this." That's what's happening today on forums like TikTok Shop and Meta, and even our own D2C site. Some of the influencer work that we're doing is that you've got people in the world that are now showcasing our products in many different ways, much more than we could do in 20 minutes, right? You look at all the different product demos you could do in a 20-minute infomercial. Think about putting 200 products in 200 influencers' hands, affiliates' hands. That's 200 different demonstrations. Wow. That's 200 different people that maybe look and feel different to their consumer base than what an infomercial is. I think what's happened now is our products were built for this new world, and I think that's what we're seeing come to fruition. That's why we've had such a great head start on the social commerce as that started to shift. Your company has grown at a CAGR north of 20% since 2008. That's really tough to do in consumer. Your CEO, Mark Barrocas, spent a lot of time on last week's earnings calls kind of defending why he thinks you're a double-digit growth company. As the revenue base gets larger, though, right? those incremental sales get a lot more meaningful. How do you do it? Just to say, since he couldn't be here today, he's been defending why we're a double-digit growth company for the last 18 years as well. He's ready to keep doing that. Honestly, Brian, it is kind of a some. I assume that's the last question because it's a nice period. Yeah It is an exclamation point because it is a culmination of everything that we just talked about, right? It is broad based. It's no one thing. It's no one-hit product. If we were a one-hit product company, a viral product company, it's boom and bust. If we were a one-category company, it's boom and bust. If we were focused on one consumer, one demographic, one geography, we wouldn't be able to do what we're doing today. To be able to grow that amount and to be able to comp 2026 and 2027, it's going to come from 50 different things. Right. I think again, that's the beauty of the business, because over the last 18 years, it's come from an exponentially larger amount of things every single year. But keep in mind, it's that existing base that fuels everything, right? Yeah. If 20 of the 25 new products that you release every year are intentionally designed to keep the core fresh, you're going to compel people to come back and upgrade and maybe prematurely, before the end of the useful life, buy a new unit. That's almost like a same-store sale type of number. Right. That's what really is the bedrock of everything else. I'm going to squeeze one last one, and we're asking all of our consumer companies. That's on consumer health. Yeah. How healthy is your consumer today versus a year ago, and how do you see consumer spending shaping up overall as we head into the back half and into 2027? Yeah. Look, I think that is a tough one because I think the consumer overall, in our opinion, they have money to spend, but they're discerning. I think the SharkNinja consumer, you can't overgeneralize the entirety of consumer, but I do believe we have a discerning consumer. I do believe this is a consumer that is well-educated, reads the reviews, and I think it's on us to earn those dollars. We talk about competing with Olive Garden, we talk about competing with vacations. Certainly competing with the competition. But for us, it's a matter of how do we earn that dollar, and how we earn the dollar is through innovation and the consumer value that we're bringing. Great. We'll leave it there. Thank you so much, guys. Great. Thanks, Brian. Thanks, all.