The newly disclosed earnings profile is much thinner than the target’s sales scale implied. There is no published earnings consensus for Cabinets To Go itself, so the relevant prior benchmark was the announced F9 portfolio’s roughly $522 million of 2025 sales and approximately $130 million of inventory—not a forecast profit number. Cabinets To Go contributed $190.1 million of sales, but just $2.2 million of operating income (a 1.2% margin) and $3.3 million of net income. That confirms the unit was profitable, but reveals little room for execution setbacks, financing costs, or integration disruption. (Statement of Operations)
| Metric | Reported result | What it says |
|---|---|---|
| Net sales | $190.1M | Meaningful standalone sales base, but only one business within the F9 portfolio. (Statement of Operations) |
| Operating income | $2.2M / 1.2% margin | Profitability existed, but was very slim relative to revenue. (Statement of Operations) |
| Net income | $3.3M / 1.8% margin | Interest income and other income helped lift profit above operating income. (Statement of Operations) |
| Operating cash flow | $3.3M | Cash generation was positive, though modest against the debt load. (Statement of Cash Flows) |
| Cash | $0.6M | Minimal cash cushion at year-end. (Balance Sheet) |
| Current assets vs. current liabilities | $45.4M vs. $88.0M | $42.5M working-capital deficit. (Balance Sheet) |
| Line of credit | $46.5M at 5.67% | Facility matures October 1, 2026 and was classified as current. (Note 8 — Credit Facilities) |
| Member’s deficit | $(27.4)M | Liabilities exceeded assets by $27.4M. (Balance Sheet) |
Liquidity—not reported profitability—is the material negative disclosure. At December 31, the business had only $574,000 of cash, while carrying $46.5 million on a revolving credit line, $24.5 million of lease liabilities, and a $27.4 million member’s deficit. The filing explicitly says the current classification of the credit line creates uncertainty about meeting obligations as they come due; continued operations depend on parental financial support and refinancing or extension of that facility. (Note 2 — Liquidity and Management’s Plans; Note 8 — Credit Facilities)
Positive operating cash flow does not remove that financing dependence. The company generated $3.3 million of operating cash flow, but receivables increased $3.7 million and year-end cash was essentially unchanged. During the year it also relied on $20.5 million of member contributions and drew $23.0 million on the credit line, while distributions to the member totaled $29.8 million. The cash-flow statement therefore supports an operating business, but not one that was self-funding its balance sheet. (Statement of Cash Flows; Statement of Changes in Member’s Deficit)
This is more cautionary detail than a closing confirmation. The filing says the broader F9 transaction was still expected to close in August 2026; it does not say it had closed. The original deal framework already contemplated that existing target indebtedness could be assumed or refinanced. These audited statements make the scale of that financing task clearer, but Cabinets To Go is only one part of F9, so they do not establish the earnings or balance-sheet quality of Lumber Liquidators, Southwind, or the other acquired assets. (Note 12 — Subsequent Events)
Read the original 8-K on SEC EDGAR ↗