Earnings release
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Exhibit 99.1 Contact: Anthony D. Ishaug 763/520-8500 FOR IMMEDIATE RELEASE WINMARK CORPORATION ANNOUNCES THIRD QUARTER RESULTS Minneapolis, MN (October 14, 2026) - Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended September 26, 2026 of $11,818,100 or $3.21 per share diluted compared to net income of $11,136,500 or $3.02 per share diluted in 2025. For the nine months ended September 26, 2026, net income was $31,467,700 or $8.51 per share diluted compared to net income of $31,694,200 or $8.61 per share diluted for the same period last year. 2025 year-to-date results included $2.2 million of leasing income from the settlement of customer litigation. “During the quarter, Winmark launched the North American Advertising Fund for Plato’s Closet and recently delivered a point-of-sale pilot at one of our franchised locations. Additionally, we have announced North American Advertising Funds for our Once Upon A Child and Play It Again Sports brands for campaigns starting in 2027,” stated Brett D. Heffes, Chair and Chief Executive Officer. “For many years Winmark and our franchisees have underinvested in the marketing necessary to consistently amplify our message across North America. We are taking the appropriate steps to expand awareness of our brands.” Winmark - the Resale Company®, is a nationally recognized franchisor focused on sustainability and small business formation. We champion and guide entrepreneurs interested in operating one of our award winning resale franchises: Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. At September 26, 2026, there were 1,398 franchises in operation and over 2,800 available territories. An additional 79 franchises have been awarded but are not open. This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to future events or the future financial performance of the Company. Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated. Because actual results may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.
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2 WINMARK CORPORATION CONDENSED BALANCE SHEETS (Unaudited) September 26, 2026 December 27, 2025 ASSETS Current Assets: Cash and cash equivalents $ 27,964,200 $ 10,295,700 Restricted cash 150,000 165,000 Receivables, net 2,253,300 1,483,500 Income tax receivable — 463,600 Inventories 789,200 362,500 Prepaid expenses 1,447,200 1,325,700 Total current assets 32,603,900 14,096,000 Property and equipment, net 1,214,400 1,219,000 Operating lease right of use asset 1,482,300 1,761,500 Intangible assets, net 2,020,800 2,286,300 Capitalized software 2,272,400 — Goodwill 607,500 607,500 Other assets 528,500 506,400 Deferred income taxes 4,304,900 4,407,400 $ 45,034,700 $ 24,884,100 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current Liabilities: Accounts payable $ 1,824,800 $ 1,673,900 Income tax payable 100,200 — Accrued liabilities 6,612,500 2,324,800 Deferred revenue 1,666,900 1,667,300 Total current liabilities 10,204,400 5,666,000 Long-Term Liabilities: Line of credit/Term loan 30,000,000 30,000,000 Notes payable, net 29,974,700 29,961,000 Deferred revenue 8,447,400 8,350,100 Operating lease liabilities 1,869,500 2,414,200 Other liabilities 1,936,000 2,175,200 Total long-term liabilities 72,227,600 72,900,500 Shareholders’ Equity (Deficit): Common stock, no par, 10,000,000 shares authorized, 3,559,195 and 3,571,861 shares issued and outstanding 15,181,700 19,612,800 Retained earnings (accumulated deficit) (52,579,000) (73,295,200) Total shareholders’ equity (deficit) (37,397,300) (53,682,400) $ 45,034,700 $ 24,884,100
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3 WINMARK CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 26, 2026 September 27, 2025 September 26, 2026 September 27, 2025 Revenue: Royalties $ 21,707,800 $ 20,911,300 $ 61,087,600 $ 57,348,000 North American advertising fund 3,825,300 — 3,825,300 — Software 497,100 93,100 678,900 278,900 Franchise fees 330,100 417,600 1,092,500 1,088,100 Merchandise sales 1,031,500 693,600 2,544,700 2,438,500 Leasing income — 46,600 — 2,401,100 Other 498,700 470,700 1,477,200 1,414,800 Total revenue 27,890,500 22,632,900 70,706,200 64,969,400 North American advertising fund expense 3,825,300 — 3,825,300 — Cost of merchandise sold 947,300 663,300 2,384,200 2,318,100 Selling, general and administrative expenses 7,332,100 7,046,400 22,708,200 21,070,500 Income from operations 15,785,800 14,923,200 41,788,500 41,580,800 Interest expense (610,300) (610,300) (1,834,000) (1,833,900) Interest and other income 242,100 310,300 516,500 714,800 Income before income taxes 15,417,600 14,623,200 40,471,000 40,461,700 Provision for income taxes (3,599,500) (3,486,700) (9,003,300) (8,767,500) Net income $ 11,818,100 $ 11,136,500 $ 31,467,700 $ 31,694,200 Earnings per share - basic $ 3.29 $ 3.13 $ 8.79 $ 8.94 Earnings per share - diluted $ 3.21 $ 3.02 $ 8.51 $ 8.61 Weighted average shares outstanding - basic 3,588,328 3,553,211 3,581,906 3,543,766 Weighted average shares outstanding - diluted 3,685,668 3,693,154 3,697,251 3,679,745
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4 WINMARK CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 26, 2026 September 27, 2025 OPERATING ACTIVITIES: Net income $ 31,467,700$ 31,694,200 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 281,300 295,500 Amortization of intangible assets 265,500 265,500 Compensation expense related to stock options 1,917,200 1,666,900 Deferred income taxes 102,600 160,100 Operating lease right of use asset amortization 279,200 252,700 Tax benefits on exercised stock options 898,800 1,091,900 Change in operating assets and liabilities: Receivables (769,800) (316,500) Income tax receivable/payable (335,000) (998,500) Inventories (426,700) 113,900 Prepaid expenses (121,600) (44,500) Other assets (22,100) (5,000) Accounts payable 150,900 (188,800) Accrued and other liabilities 1,763,500 2,054,900 Deferred revenue 96,900 331,500 Net cash provided by operating activities 35,548,400 36,373,800 INVESTING ACTIVITIES: Capitalized software (2,272,400) — Purchase of property and equipment (276,700) (172,700) Net cash used for investing activities (2,549,100) (172,700) FINANCING ACTIVITIES: Repurchases of common stock (8,091,600) (2,418,700) Proceeds from exercises of stock options 3,497,200 3,754,000 Dividends paid (10,751,400) (9,991,400) Net cash used for financing activities (15,345,800) (8,656,100) NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 17,653,500 27,545,000 Cash, cash equivalents and restricted cash, beginning of period 10,460,700 12,329,800 Cash, cash equivalents and restricted cash, end of period $ 28,114,200 $ 39,874,800 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ 1,802,900$ 1,815,500 Cash paid for income taxes $ 8,210,800$ 8,514,100 SUPPLEMENTAL NONCASH FINANCING ACTIVITIES During the nine months ended September 26, 2026, the Company repurchased $9.85 million of its common stock under its share repurchase program. At September 26, 2026, $1.75 million of such repurchases was included in Accrued liabilities within the Condensed Balance Sheets. Cash payments for repurchased shares during the quarter totaled $8.10 million. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Balance Sheets to the total of the same amounts shown above: Nine Months Ended September 26, 2026 September 27, 2025 Cash and cash equivalents $ 27,964,200$ 39,734,800 Restricted cash 150,000 140,000 Total cash, cash equivalents and restricted cash $ 28,114,200 $ 39,874,800