Hamilton Beach Brands Holding Company (HBB): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Hamilton Beach Brands Holding Company (HBB) is making its money as of late 2025, right? After two decades analyzing firms, I can tell you their model is a fascinating mix: they're still selling those reliable small appliances, but the real story is the pivot toward connected health devices via HealthBeacon and smart licensing deals with names like Clorox™ and Brita Hub™. With TTM Revenue hitting $607.43 million through Q3 2025, understanding this nine-block structure-from their global contract manufacturing to their $25.1 million SG&A spend-is key to seeing where the next dollar comes from. Dive in below for the precise breakdown.

Hamilton Beach Brands Holding Company (HBB) - Canvas Business Model: Key Partnerships

You're looking at how Hamilton Beach Brands Holding Company (HBB) structures its external relationships to drive product access and growth, which is key when you see their Q1 2025 revenue hit $133.4 million, a 4.0% increase year-over-year.

The partnerships are critical for brand portfolio expansion and market penetration across different segments.

Partnership Type	Brands/Entities Involved	Key Detail/Context (2025 Data)
Licensing Partners	CHI® premium garment care products	Brands licensed for use in product lines.
Licensing Partners	Clorox™ home appliances	Brands licensed for use in product lines.
Licensing Partners	Brita Hub™ countertop electric water filtration appliances	Brands licensed for use in product lines.
Exclusive Distribution Agreements	Bartesian® cocktail makers	Exclusive multiyear agreements to design, sell, market, and distribute.
Strategic Alliance	Numilk® plant-based milk makers	Exclusive multiyear agreements to design, sell, market, and distribute.
Strategic Acquisition/Partner Integration	HealthBeacon (via Hamilton Beach Health)	Acquired in 2024; contributed $1.5 million in revenue in Q1 2025.

The HealthBeacon integration, stemming from a strategic partnership, is showing early positive signs; its Health segment posted its first operating profit with 50% subscription growth for the first nine months of 2025.

The overall financial performance in 2025 reflects the success of these varied relationships. For the trailing twelve months ending September 30, 2025, Hamilton Beach Brands Holding Co revenue was $607.43 million, representing 22.3% growth year-over-year. The Q3 2025 revenue specifically was $132.78 million.

The company relies on a broad network to get products to customers, which includes:

• Licensing partners for brands like CHI®, Clorox™, and Brita Hub™.
• Exclusive multiyear agreements for Bartesian® and Numilk®.
• The Hamilton Beach Health subsidiary, which is expanding into connected devices and software for healthcare management.

While specific financial contributions for the global network of third-party contract manufacturers or the exact revenue split from retailer partnerships are not detailed in the Q1 2025 filings, these external manufacturing and distribution channels are fundamental to supporting the total revenue base, which reached $133.4 million in the first quarter of 2025.

The gross margin expansion to 24.6% in Q1 2025, up from 23.4% the prior year, is partly attributed to the favorable product mix, including the addition of HealthBeacon, which operates at a significantly higher gross margin.

The company's total debt stood at $50.0 million as of March 31, 2025, with net debt at $1.7 million.

Hamilton Beach Brands Holding Company (HBB) - Canvas Business Model: Key Activities

You're looking at the core actions Hamilton Beach Brands Holding Company (HBB) is taking to drive its business, especially given the recent market volatility. Here's the quick math on their operational performance through the third quarter of 2025, which gives us a solid view of where their activities are focused.

Metric (Period Ended Sept 30, 2025)	Amount	Comparison/Context
Total Revenue (Q3 2025)	$132.8 million	Declined 15.2% year-over-year (YoY)
Gross Margin (Q3 2025)	21.1%	Down from 28.0% YoY; included a one-time $5.0 million tariff cost impact
Operating Profit (Q3 2025)	$2.9 million	Down from $10.6 million in Q3 2024
Net Income (Q3 2025)	$1.7 million	Resulted in diluted EPS of $0.12
Net Debt (as of Sept 30, 2025)	$32.8 million	Up from $22.5 million on September 30, 2024
Net Cash from Operations (9M 2025)	-$14.6 million used	Compared to $35.2 million provided in 9M 2024

Product design and consumer-driven innovation

Hamilton Beach Brands Holding Company focuses on launching new products across its portfolio, including premium and licensed lines. They signed a new agreement to develop and market Sunkist branded commercial juicers and sectionizers. The premium Lotus brand was launched exclusively at a strategic retailer.

Global supply chain and logistics management

Managing the supply chain involved significant reactive measures in 2025 due to tariff changes. The company worked quickly to further diversify its sourcing base, expecting these actions to benefit the margin profile in 2026. They also implemented Foreign Trade Zone (FTZ) operations. A one-time incremental tariff cost of $5.0 million, related to a temporary 125% China tariff spike, flowed through Q3 2025 Cost of Goods Sold (COGS). For the nine months ended September 30, 2025, net cash used for operating activities was -$14.6 million, pressured partly by higher inventory from increased tariffs and accelerated purchases in Q1 2025.

Brand marketing and advertising (increased spend in 2025)

The company supported strategic growth initiatives with a planned increase in advertising. Specifically, the launch of the premium Lotus line included a commitment of $5 million in marketing support planned over 18 months. Management noted a 'significant step-up in planned advertising spend in fiscal 2025' to support these initiatives.

Expansion of the Hamilton Beach Health connected device platform

The Hamilton Beach Health subsidiary, which includes HealthBeacon acquired in 2024, is a key growth area. This segment reached positive operating profit for the first time in Q3 2025.

• Q2 2025 revenue for the Health business was $1.7 million.
• Q2 2025 operating segment loss for HealthBeacon was $864,000, which nearly halved the loss from the prior year.
• Q1 2025 revenue contribution from HealthBeacon was $1.5 million.
• Partnerships expanded, including the launch of Health Beacon Harmony with Novartis Ireland.

Sales and distribution across consumer and commercial channels

Distribution strength was evident in securing key fall placements with big box retailers in the U.S. Consumer business. The Commercial segment showed strength, delivering "outstanding results".

• The Sunkist partnership is accelerating, with revenue projected to be ≈5% of the Commercial business in 2025.
• The company maintained its #1 position in North American units.
• The largest retailer resumed normal ordering cadence in Q3 2025 after a delay, supporting a record promotional slate expected in Q4.

Finance: review Q4 2025 cash flow projections against inventory stabilization by end of year.

Hamilton Beach Brands Holding Company (HBB) - Canvas Business Model: Key Resources

The Key Resources for Hamilton Beach Brands Holding Company as of late 2025 are anchored in established brand equity, proprietary technology, and operational scale.

The core of the tangible assets resides in the company's brand portfolio, which is structured across consumer, commercial, and health segments.

Brand Tier/Segment	Key Owned Brands	Key Licensed/Partner Brands
Flagship Consumer	Hamilton Beach®	CHI® (Garment Care), Clorox™ (Home Appliances), Brita® (Water Filtration)
Value Consumer/Commercial	Proctor Silex®	Bartesian® (Cocktail Makers), Numilk® (Plant-based Milk Makers)
Specialty/Other Owned	Weston®, Hamilton Beach Professional®, TrueAir®	Sunkist® (Commercial Juicers/Sectionizers)
Commercial Core	Hamilton Beach Commercial®, Proctor Silex Commercial®	N/A

The Health segment's key resource is the HealthBeacon connected device technology and software, which is managed by the Hamilton Beach Health subsidiary.

• HealthBeacon Harmony launched with Novartis Ireland in Q3 2025.
• Hamilton Beach Health achieved positive operating profit for the first time in the third quarter of 2025.
• The Health business segment contributed to a favorable customer mix, helping gross margin expand to 27.5% in Q2 2025.

The company maintains a global distribution network and retailer relationships spanning its three end markets: consumer, commercial, and health. The trailing twelve-month revenue as of September 30, 2025, was $607 million.

Intellectual property and product patents underpin the product development across all divisions, securing design and functional advantages.

The financial structure provides a key resource context, showing the balance sheet position at the end of the third quarter.

• Net debt position as of September 30, 2025, was $32.8 million.
• Total debt remained constant at $50.0 million for both September 30, 2025, and September 30, 2024.
• Net debt on September 30, 2024, was $22.5 million.
• For the nine months ended September 30, 2025, net cash used for operating activities was $14.6 million.

Hamilton Beach Brands Holding Company (HBB) - Canvas Business Model: Value Propositions

You're looking at how Hamilton Beach Brands Holding Company delivers value across its diverse portfolio as of late 2025. It's a mix of mass-market staples, premium expansion, and a growing health tech play.

Affordable, reliable small electric household appliances

This is the bedrock, built on the strength of the core Hamilton Beach® and Proctor Silex® brands. The company maintained its number one position in units sold in North America despite industry headwinds in Q2 2025. The Q2 2025 revenue for the entire company was $127.8 million.

Premium, specialized products (e.g., Hamilton Beach Professional®)

Hamilton Beach Brands Holding Company is pushing into the higher-margin space. The Hamilton Beach Professional® line is a key owned consumer brand. Furthermore, the company launched the highly anticipated Lotus brand, which debuted with seven products in the Professional series, including models featuring the AccuBrew Ground Scale.

Commercial-grade durability for foodservice and hospitality

The commercial segment, featuring Hamilton Beach Commercial® and Proctor Silex Commercial®, provides durability for foodservice operations. This segment, along with Health, drove a favorable mix uplift, contributing to a Q2 2025 gross profit margin of 27.5%, up 160 basis points year-over-year. Early wins in Sunkist-branded commercial products are accelerating faster than expected, with revenue expected to be about 5% of the commercial business in 2025 and projected to double in 2026.

Connected devices and software for home healthcare management

The Health segment, anchored by the Hamilton Beach Health subsidiary's acquisition of HealthBeacon PLC in February 2024, focuses on this area. HealthBeacon develops digitally connected devices for managing injectable medication regimens at home. This segment contributed $1.5 million of revenue in the first quarter of 2025. The company is working towards a goal of increasing its patient subscription base by over 50% this year (2025).

Licensing of well-known third-party brands for new categories

Hamilton Beach Brands Holding Company extends its reach by licensing established names for specialized product categories. The company also holds exclusive multiyear agreements for other innovative products.

Here's a quick look at the brand portfolio supporting these value propositions:

Category	Brand Examples	Financial/Statistical Data Point
Owned Consumer (Core/Value)	Hamilton Beach®, Proctor Silex®	Maintained number one unit position in North America
Owned Consumer (Premium)	Hamilton Beach Professional®, Lotus (New Launch)	Lotus launched with seven products in the Professional series
Owned Commercial	Hamilton Beach Commercial®, Proctor Silex Commercial®	Sunkist revenue expected to be $\mathbf{5\%}$ of commercial business in 2025
Health/Connected Devices	HealthBeacon (Acquired via Hamilton Beach Health)	Contributed $\mathbf{\$1.5}$ million of revenue in Q1 2025
Licensed Brands	CHI®, CloroxTM home appliances, Brita HubTM	Part of the strategy to expand into new categories
Exclusive Distribution	Bartesian®, Numilk®	Agreements are multiyear

The company has also been actively managing its cost structure to support these value offerings, implementing comprehensive cost management measures that generated $10 million in annualized savings.

Finance: draft 13-week cash view by Friday.

Hamilton Beach Brands Holding Company (HBB) - Canvas Business Model: Customer Relationships

The Customer Relationships for Hamilton Beach Brands Holding Company are segmented across its consumer, commercial, and health technology divisions, reflecting a mix of transactional and recurring engagement models as of late 2025.

Subscription/service model for HealthBeacon software

The HealthBeacon subsidiary operates on a model heavily reliant on recurring revenue from patient subscriptions. For the first quarter of 2025, HealthBeacon contributed revenue of $1.5 million. This segment showed strong momentum, doubling its revenue to $3.2 million in the first half of 2025, with Q2 2025 revenue specifically reported at $1.7 million. Management has a stated goal to increase the patient subscription base by 50% in 2025 and reach profitability by the end of the year. The higher gross margin associated with HealthBeacon was a key factor in the overall gross margin expansion seen in early 2025.

• HealthBeacon Revenue (H1 2025): $3.2 million
• HealthBeacon Revenue (Q1 2025): $1.5 million
• Targeted Patient Subscription Growth (2025): 50%
• Profitability Target Year: 2025

Direct B2B relationships for the Global Commercial segment

The Global Commercial segment maintains direct business-to-business relationships, supplying products for restaurants, fast food chains, bars, and hotels. This segment, along with Health, drove a favorable product mix shift. For instance, revenue from Sunkist-branded commercial products is expected to account for approximately 5% of the total commercial business in 2025, with a projection to double that contribution in 2026. The commercial business mix uplift contributed to the gross profit margin reaching 27.5% in Q2 2025.

Dedicated sales teams for major mass-market retailers

Sales to major mass-market retailers are managed through dedicated teams supporting the North America Consumer markets. Despite headwinds, the U.S. consumer business drove revenue increases in Q1 2025. However, Q2 2025 saw a significant impact, with total sales declining 18.2% year-over-year to $127.8 million, largely due to retailer pauses related to tariff uncertainty. The company is also supporting new product launches, such as the premium Lotus brand, with plans for expanded marketing investment.

Customer service and warranty support for consumer products

Customer service and warranty support are provided for consumer products, including flagship brands like Hamilton Beach® and Proctor Silex®. The company's overall financial health, including a net income of $1.8 million in Q1 2025 and a total debt of $50.0 million at the end of that quarter, underpins the ability to fund these support functions. The company also executed an 8% reduction in force, targeting $10 million in annualized savings starting in the second half of 2025 to offset cost pressures.

Automated self-service via e-commerce and product support websites

Automated self-service is available through e-commerce and product support websites, where knowledgeable personnel assist with replacement parts and accessories. The company's ability to manage its balance sheet, evidenced by reducing net debt from $23.7 million (Q1 2024) to $1.7 million (Q1 2025), suggests resources are available for digital infrastructure maintenance and enhancement.

Here's a quick look at the quarterly financial performance that reflects the success of these customer-facing strategies:

Metric	Q1 2025	Q2 2025	H1 2025 (Total)
Revenue	$133.4 million	$127.8 million	$261.1 million
Gross Margin	24.6%	27.5%	N/A
Operating Profit	$2.3 million	$5.9 million	N/A
Net Debt	$1.7 million	$38.7 million	N/A

The company also continued capital returns, repurchasing 141,435 shares for an aggregate purchase amount of $2.7 million and paying $1.6 million in dividends during the first quarter of 2025.

Hamilton Beach Brands Holding Company (HBB) - Canvas Business Model: Channels

You're looking at how Hamilton Beach Brands Holding Company (HBB) gets its products to customers as of late 2025. The data shows a mix of traditional retail strength alongside growth in specialized areas, though recent quarters reflect market headwinds and tariff impacts.

For the nine months ended September 30, 2025, net cash used for operating activities was $14.6 million, a significant drop from the $35.2 million cash provided in the same period of 2024. This cash flow pressure is partly due to inventory buildup related to tariffs and diversification efforts.

Mass-market retailers (e.g., Walmart, Target, Amazon)

The core of the Consumer product revenue comes from sales to traditional brick and mortar and ecommerce retailers. The U.S. Consumer business is a primary driver of revenue, though it experienced lower volumes in Q3 2025.

• Q3 2025 Total Revenue: $132.8 million
• Q2 2025 Total Revenue: $127.8 million
• Q1 2025 Total Revenue: $133.4 million
• Full Year 2024 Total Revenue: $654.7 million
• Revenue for the last twelve months ending September 30, 2025: $607.43 million

Fast-growing e-commerce platforms and direct-to-consumer

Consumer product revenue includes sales directly to the end consumer, which falls under the direct-to-consumer (DTC) component of the broader consumer channel. The company expects to focus on digital sales growth during the holiday season.

The overall revenue for the trailing twelve months (TTM) as of December 2025 is reported as $0.60 Billion USD.

Specialty retailers and home improvement stores

These are included within the 'traditional brick and mortar' segment of the Consumer product revenue. The U.S. Consumer business saw revenue growth in Q1 2025, but experienced lower volumes in Q3 2025.

Metric	Q1 2025 Amount (in thousands)	Q3 2025 Amount (in millions)	2024 Full Year Amount (in millions)
Revenue	$133,372	$132.8	$654.7
Revenue Change YoY	4.0% increase	15.2% decrease	4.6% increase (vs 2023)

Commercial distributors for restaurants and hotels

This segment is reported as Global Commercial market revenue. Revenue growth was noted in the Commercial business in Q3 2025. The International Commercial business contributes to a higher-margin sales proportion.

Approximately one-half of the Company's commercial sales are in the U.S., with the remainder in international markets.

Hamilton Beach Health direct sales and B2B channels

This channel is represented by the HealthBeacon acquisition, which contributed $1.5 million of revenue in Q1 2025. The Health business also showed revenue growth in Q3 2025.

• Hamilton Beach Health division reached positive operating profit for the first time in Q3 2025.
• HealthBeacon contributed $1.7 million of revenue in Q4 2024.
• The HealthBeacon segment operates at a significantly higher gross margin.

The company generated $10 million in annualized savings from comprehensive cost management measures.

Finance: draft 13-week cash view by Friday.

Hamilton Beach Brands Holding Company (HBB) - Canvas Business Model: Customer Segments

You're looking at the core groups Hamilton Beach Brands Holding Company (HBB) serves as of late 2025, which are split into two reportable segments: Home and Commercial Products, and Health. The company's total revenue for the trailing twelve months ending September 30, 2025, was $607.43 million, down 6.24% year-over-year from the prior TTM period.

Mass-market consumers seeking value-priced appliances form a significant base within the Home and Commercial Products segment. This group buys small electric household and specialty housewares appliances through traditional brick and mortar and e-commerce retailers, as well as distributors. The company's Q3 2025 revenue was $132.8 million, reflecting the current market dynamics for this segment.

Premium consumers buying specialized small appliances represent an area of strategic focus, with Lotus premium appliances noted as beating sell-through and gaining shelf space, which helps raise Average Selling Prices (ASPs). This focus on higher-margin, specialized products contrasts with the value-priced offerings, showing a dual approach within the consumer base of the Home and Commercial Products segment.

Global Commercial businesses (restaurants, bars, hotels) are served by the commercial product revenue stream within the Home and Commercial Products segment. Sunkist products in the commercial space are noted as resilient and set to grow in 2026. To be specific about geographic reach, approximately two-thirds of the Company's commercial sales occur in the U.S., with the remainder spread across global markets.

Home healthcare patients and providers (via HealthBeacon) are served by the Health segment, which generates revenue from leases of connected devices to specialty pharmacy networks and pharmaceutical companies, plus software licensing. This segment posted its first operating profit for the first nine months of 2025, driven by 50% subscription growth and major specialty-pharmacy deals.

Retailers managing inventory and seeking private label opportunities are key partners, as the Home and Commercial Products segment includes sales to traditional retailers and distributors. The company's largest retailer was reportedly ordering normally again following tariff stabilization, supporting restocking-led volume into the fourth quarter of 2025.

Here's a quick look at how the two reportable segments map to these customer groups as of the mid-2025 reporting structure:

Reportable Segment	Primary Customer Focus Areas	Key Financial/Operational Note (Latest Data)
Home and Commercial Products	Mass-market consumers, Premium consumers, Commercial businesses, Retailers/Distributors	Q3 2025 Revenue was $132.8 million.
Health (HealthBeacon)	Specialty pharmacy networks, Pharmaceutical companies, Home healthcare providers/patients	Reported 50% subscription growth for the first nine months of 2025.

The overall company market capitalization as of early December 2025 stood at $211.06 million. The customer base is clearly segmented across durable goods and a high-growth medical technology service line.

• Sales channels include traditional brick and mortar, e-commerce, and direct sales.
• Commercial sales are concentrated about two-thirds in the U.S.
• Health segment revenue is derived from lease and licensing agreements.
• The company is focused on accelerating growth in premium appliances and commercial markets.
• The HealthBeacon segment achieved its first operating profit in the first nine months of 2025.

Finance: draft 13-week cash view by Friday.

Hamilton Beach Brands Holding Company (HBB) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive the operational expenses for Hamilton Beach Brands Holding Company as of late 2025. The cost structure in the third quarter reflected significant, though temporary, external pressures alongside internal cost-management actions.

Cost of sales, significantly impacted by 2025 tariff spikes

The Cost of Sales line item was heavily distorted by trade policy events during the third quarter of 2025. Gross margin for Q3 2025 landed at 21.1%, a notable drop from the 28.0% seen in the third quarter of 2024. This compression was largely due to a one-time incremental tariff cost of $5.0 million flowing through the Cost of Goods Sold (COGS). This specific cost was mostly tied to a temporary spike in tariff rates on imports from China, reaching 125%. Management noted that a delay between these rising tariff costs and the effective date of pricing adjustments further squeezed margins temporarily. If you strip out that $5 million one-time tariff impact, the adjusted gross margin for the period would have been 24.8% of total revenue.

Selling, General, and Administrative (SG&A) expenses (Q3 2025: $25.1 million)

Hamilton Beach Brands Holding Company managed to reduce its overhead costs effectively in the third quarter of 2025. Selling, General, and Administrative (SG&A) expenses were reported at $25.1 million for Q3 2025. This represented a significant decrease from the $33.3 million recorded in the third quarter of 2024. The primary driver for this reduction was lower personnel costs, which included reduced stock-based compensation expense, benefiting from restructuring actions taken earlier in the year.

Here's a quick look at the SG&A comparison for the third quarter:

Metric	Q3 2025 Amount (Millions USD)	Q3 2024 Amount (Millions USD)
Selling, General, and Administrative (SG&A)	$25.1	$33.3
Impact of Restructuring/Personnel Costs	Lower by $6.8 million	N/A

Global sourcing and manufacturing costs, including diversification efforts

Addressing the cost structure meant aggressively tackling the supply chain concentration risk. The company was executing on sourcing diversification efforts, aiming to have two-thirds of its U.S. sales sourced outside of China by the end of 2025. This strategic shift had immediate balance sheet implications, as accounts payable decreased due to shorter payment terms negotiated with new suppliers under these diversification initiatives. To streamline operations and offset ongoing cost pressures, Hamilton Beach Brands Holding Company executed an 8% reduction in force, which management projected would deliver $10 million in annualized savings, starting to materialize in the second half of 2025.

Key elements of the cost structure optimization included:

• Workforce Reduction: 8% reduction in force implemented.
• Annualized Savings Target: Expected savings of $10 million annually.
• Sourcing Target: Goal to source two-thirds of U.S. sales outside China by YE'25.

Research and development (R&D) for new product innovation

While specific R&D expenditure figures for Q3 2025 weren't isolated, the cost structure clearly supported new product innovation and brand growth initiatives. A significant planned investment was earmarked for the launch of the premium Lotus brand. Management planned to spend approximately $5 million in marketing over the next 18 months to support the growth of this new line. Furthermore, growth in the Commercial segment was being driven by new product launches, including the Sunkist commercial line.

Marketing and advertising spend to support strategic growth

Marketing spend was strategically directed toward new growth vectors, such as the Lotus brand launch. The planned $5 million marketing investment over the next 18 months is a direct allocation within the cost structure to support this premium brand's expansion beyond its initial exclusive retailer distribution. Separately, the company was focused on growing patient subscriptions for its HealthBeacon business by a target of 50% throughout 2025.

You should track the marketing spend against the expected revenue contribution from the Sunkist commercial partnership, which was projected to move from 5% of the commercial business in 2025 to 10% in 2026. Finance: draft 13-week cash view by Friday.

Hamilton Beach Brands Holding Company (HBB) - Canvas Business Model: Revenue Streams

You're looking at the core ways Hamilton Beach Brands Holding Company brings in money, which is essential for understanding its overall financial health right now.

The primary sources of revenue for Hamilton Beach Brands Holding Company are built around its established product lines, supplemented by newer, higher-margin ventures. The Trailing Twelve Months (TTM) Revenue as of the third quarter of 2025 stood at $607.43 million, which is down 6.24% year-over-year from the prior TTM period.

The main components of this revenue generation are:

• Sales of consumer small electric appliances.
• Sales of commercial-grade appliances and equipment.
• Revenue from HealthBeacon connected devices and software.
• Licensing and exclusive distribution fees.

To give you a clearer picture of the recent performance context surrounding these streams, here's a snapshot:

Metric	Amount/Value	Period/Context
TTM Revenue	$607.43 million	As of Q3 2025
Quarterly Revenue	$132.8 million	Q3 2025
Quarterly Revenue	$133.4 million	Q1 2025
HealthBeacon Revenue	$1.5 million	Q1 2025
HealthBeacon Revenue	$0.6 million	Q1 2024
HealthBeacon Revenue	$1.7 million	Q4 2024

The HealthBeacon segment, which focuses on digitally connected devices for at-home chronic condition management, is a key growth area, operating at a significantly higher gross margin than the core business. The company reported that its newest division, which includes the Sunkist line, saw initial sell-through results exceeding expectations by strong double digits. Furthermore, the Hamilton Beach Health business achieved a major milestone by reaching positive operating profit for the first time in the third quarter of 2025.

You can see the contribution and focus areas within the Health and Commercial segments:

• The company is working towards a goal of increasing its patient subscription base by over 50% in 2025.
• Revenue from the Sunkist brand is expected to represent about 5% of the commercial business in 2025.
• The Q1 2025 revenue of $133.4 million reflected growth in the U.S. consumer market, while the Global Commercial market saw a slight decrease.

The Q3 2025 revenue of $132.8 million was impacted by a one-time $5 million tariff cost related to temporary high import rates, which compressed the gross margin by 370 basis points. Excluding that specific tariff impact, the Q3 2025 gross margin would have been 24.8%, and operating profit would have been $7.9 million.

Finance: draft 13-week cash view by Friday.