Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 25, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file number 001-38070 Floor & Decor Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 27-3730271 (State ...

Floor & Decor Holdings, Inc. Announces Fourth Quarter and Fiscal 2025 Financial Results Highlights for the Fourth Quarter of Fiscal 2025: Net sales of $1,129.7 million increased 2.0% from the fourth quarter of fiscal 2024 Comparable store sales decreased 4.8% Diluted EPS of $0.36 Opened eight new warehouse stores ATLANTA--(BUSINESS WIRE)--February 19, 2026--Floor & Decor Holdings, Inc. (NYSE: FND) ("We," "Our," the "Company," or "Floor & Decor") announces its financial results for the fourth quarter and ful ...

Core Insights - Home Depot is the dominant player in the home improvement retail space with a market capitalization of approximately $384.8 billion, while Floor & Decor is a specialty retailer with a market cap of about $7.7 billion, focusing on hard-surface flooring and related accessories [1][2] Company Overview - Home Depot operates over 2,300 stores across the U.S., Canada, and Mexico, serving both DIY customers and professional contractors [1] - Floor & Decor has more than 260 warehouse-format stores in the U.S., targeting homeowners, designers, and professional installers with competitive pricing [2] Market Conditions - Both companies are facing softer housing activity and cautious discretionary spending, impacting their growth prospects [3] - Home Depot's comparable sales increased by only 0.2% in Q3 of fiscal 2025, down from 1% growth in the previous quarter, indicating muted demand [7] Home Depot's Strategy - Home Depot's growth strategy includes expanding its Pro ecosystem and introducing AI-powered tools to enhance project planning for professional customers [4][5] - The company aims to capture a larger share of Pro spending across various construction categories [4] Floor & Decor's Strategy - Floor & Decor is expanding its footprint with plans to open about 20 new stores annually, aiming for 500 locations in the long term [11] - The company has improved its unit economics, reducing initial build-out costs by approximately $1.5 million per store compared to previous classes [12] Financial Performance - Home Depot's current financial-year sales are estimated to grow by 3.2%, with a decline in earnings per share (EPS) by 4.9% [16] - Floor & Decor's current financial-year sales are projected to grow by 5.3%, with EPS growth of 3.2% [19] Stock Performance - Home Depot shares have increased by 11.3% over the past month, while Floor & Decor shares have risen by 14.6% [22] Valuation - Home Depot's forward P/E ratio is 25.64, higher than its one-year median of 23.83, while Floor & Decor's forward P/E ratio is 32.45, below its median of 37.00 [23] Investment Outlook - Home Depot's near-term outlook is constrained by muted housing activity, while Floor & Decor is gaining market share and expanding its addressable opportunity, making it a more promising investment currently [24]

Company Overview - Floor & Decor (FND) shares increased by 8% to close at $72.74, supported by strong trading volume, significantly higher than average [1] - The stock has gained 7.1% over the past four weeks, indicating positive momentum [1] Growth Drivers - The stock's upward movement is attributed to ongoing store expansion, supply chain improvements, and growth initiatives that enhance customer demand and market share [2] - Investor sentiment has improved due to optimism regarding housing affordability in the U.S., following discussions between U.S. Commerce Secretary Howard Lutnick and homebuilding executives about the Trump administration's efforts to address affordability concerns [2] Earnings Expectations - Floor & Decor is projected to report quarterly earnings of $0.35 per share, reflecting a year-over-year decline of 10.3% [3] - Expected revenues for the upcoming quarter are $1.14 billion, which represents a 2.7% increase compared to the same quarter last year [3] Earnings Estimate Trends - The consensus EPS estimate for Floor & Decor has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4] - A lack of trend in earnings estimate revisions may impact the stock's price movement, indicating the need for close monitoring of FND's performance [4] Industry Context - Floor & Decor is categorized under the Zacks Retail - Home Furnishings industry, where Lowe's (LOW) also operates [5] - Lowe's shares increased by 4.3% to close at $267.21, with a 3.3% return over the past month, reflecting similar positive trends in the industry [5]

Fund Performance - Bristlemoon Global Fund reported a return of -6.2% in the December quarter and a 0.3% return in December 2025, with a cumulative return of 11.9% since inception, net of fees [1] - The market trends in 2025 saw perceived AI winners rallying, while stocks labeled as AI losers, considered "cheap," dropped further [1] Company Highlight: Floor & Decor Holdings, Inc. - Floor & Decor Holdings, Inc. (NYSE:FND) is a multi-channel specialty retailer of hard surface flooring and related accessories, with a one-month return of 16.91% and a 52-week loss of 24.77% [2] - As of January 9, 2026, Floor & Decor's stock closed at $72.74 per share, with a market capitalization of $7.838 billion [2] - The company has achieved an average comparable store sales growth of almost 11% per annum over the last 14 years, with revenue and adjusted EBITDA growing at 24% and 25% per annum, respectively, from 2011 to 2024 [3] Hedge Fund Interest - Floor & Decor Holdings, Inc. was held by 44 hedge fund portfolios at the end of the third quarter, a decrease from 46 in the previous quarter [4] - The company's sales for the third quarter grew by 5.5% to $1.180 billion [4] - While the potential of Floor & Decor as an investment is acknowledged, certain AI stocks are considered to offer greater upside potential and less downside risk [4]

Core Viewpoint - Floor & Decor has opened a new warehouse store and design center in Dearborn, Michigan, enhancing its retail footprint in the hard-surface flooring market [1] Company Summary - The new store is located at 1300 Shehadi Court and employs approximately 35 full-time and 15 part-time associates [1] - Wesley Walker serves as the Chief Executive Merchant for the Dearborn store [1] - Floor & Decor operates more than 260 warehouse stores, indicating significant growth and expansion in the retail sector [1]

Core Insights - Floor and Decor (FND) is facing significant demand challenges due to the frozen housing market, resulting in declining same-store sales and earnings per share (EPS) [1] Company Performance - The company has experienced a challenging macroeconomic backdrop, impacting its sales and profitability metrics [1] Market Context - The current economic environment is described as arguably the most challenging for retailers like FND, particularly those exposed to the housing market [1]

Core Thesis - Floor & Decor Holdings, Inc. (FND) is experiencing mixed financial performance, with revenue growth but declining comparable sales, indicating challenges in the current housing market [2][4] Financial Performance - FND reported a 5.5% year-over-year increase in revenue, while comparable sales declined by 1.2%, reflecting ongoing pressures from a weak housing market [2] - Customer transactions decreased by 3%, although this was partially offset by a 1.8% increase in average ticket size [2] - Gross margins remained stable at 43.4%, and operating margins improved slightly to 6.1%, aided by cost discipline despite new distribution center costs [2] Management Strategy - The company is focused on reducing store buildout costs, achieving $1.5 million less investment per new store compared to 2023 [3] - New store cohorts are generating first-year sales of approximately $11 million, which is below the long-term target of $14–16 million but aligns with industry performance [3] - Leadership transition is occurring with CEO Tom Taylor moving to Executive Chairman and President Bradley Paulsen taking over as CEO, indicating continuity in management [3] Growth Plans - FND aims to open 20 new stores annually and expand its product offerings in kitchen cabinets, outdoor products, and design services, which are seen as competitive advantages [4] - Despite negative comparable sales, FND is gaining market share against competitors like LL Flooring and The Tile Shop, supported by strong service scores and a resilient professional customer base [4] - The long-term goal is to establish 500 stores generating $25–30 million in mature annual sales [4]

Core Insights - Floor & Decor has opened a new warehouse store in Vancouver, Washington, enhancing its retail footprint in the hard-surface flooring market [1] - The new location features a design center and employs approximately 25 full-time and 15 part-time associates, indicating a commitment to local employment [1] - Sarah Valentine has been appointed as the Chief Executive Merchant for the new store, suggesting a strategic leadership focus [1] Company Expansion - The new warehouse store is located at 11696 Northeast 76th Street, which is part of Floor & Decor's strategy to expand its presence in key markets [1] - This opening reflects the company's ongoing growth trajectory in the high-growth retail sector specializing in flooring [1] Employment and Leadership - The store's workforce includes a mix of full-time and part-time employees, which may enhance operational flexibility and customer service [1] - The leadership of Sarah Valentine as Chief Executive Merchant indicates a focus on effective management and customer engagement at the new location [1]

Core Points - Floor & Decor has announced the grand opening of a new warehouse store in Mount Pleasant, South Carolina, enhancing its presence in the hard-surface flooring market [1][3] - The new store features a team of approximately 35 full-time and 15 part-time associates, led by Chief Executive Merchant Matthew Peiffer [1][3] - The company operates over 250 warehouse-format stores and five design studios across 38 states, offering a wide range of in-stock hard-surface flooring products [2][8] Store Opening Details - The grand opening ceremony is scheduled for December 2, 2025, and will include participation from local chambers of commerce and special appearances by Charleston Southern University cheerleaders [3] - The store will host a PRO Industry Networking Event on December 4, 2025, featuring a boat giveaway and opportunities for local professionals to engage with the PRO Services Team [5][6] Community Engagement - The Mount Pleasant store will conduct a $5,000 Floor Makeover Sweepstakes and offer a chance to win 2026 Charleston Southern University Football Season Tickets as part of its opening festivities [6] - A family-friendly Super Saturday event is planned for December 6, 2025, to showcase local vendors and the new store to the community [6][7] Company Overview - Floor & Decor is a multi-channel specialty retailer of hard surface flooring and related accessories, headquartered in Atlanta, Georgia, and founded in 2000 [8] - As of the end of the third quarter of fiscal 2025, the company operates 262 warehouse-format stores and five design studios, providing a broad assortment of flooring products at everyday low prices [8]