WINMARK CORP — Form 8-K

Winmark reported Q2 2026 net income of $10.4M ($2.81 diluted EPS) versus $10.6M ($2.89 EPS) in Q2 2025—a 1.9% decline. Six-month net income fell 4.4% to $19.6M ($5.31 EPS) from $20.6M ($5.60 EPS) prior year, partly due to absence of $2.2M litigation settlement in 2025 comparatives. Royalty revenue grew 7.8% YTD to $39.4M. The Board approved a $1.02/share quarterly dividend (September 1, 2026 payment date). Cash increased to $25.8M from $10.3M at year-end 2025; shareholder equity deficit improved to $(37.6M) from $(53.7M). The company invested $2.2M in capitalized software and noted forward investments in Plato's Closet North American Ad Fund. Franchise count: 1,389 open, 87 awarded but unopened.