Winmark is like McDonald's for second-hand retail.

It's also like CarMax for diverse used consumer items, but franchised.

• Franchising Retail Store Concepts: Winmark franchises five distinct retail store concepts (Plato's Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round) that specialize in buying, selling, and trading used merchandise across various categories.
• Equipment Leasing: The company provides middle-market equipment leasing services, primarily focusing on technology and business-essential equipment.

Winmark Corporation (WINA) primarily sells its services to other companies rather than directly to individuals. Its major customers fall into two distinct categories:

• Franchisees: These are independent business owners who acquire and operate Winmark's branded retail stores, including Plato's Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round. Winmark earns revenue from initial franchise fees and ongoing royalties from this large network of numerous privately-owned businesses across the United States and Canada.
• Middle-market businesses: These are companies that utilize Winmark's equipment leasing services for technology and other business-essential equipment.

Due to the nature of Winmark's diversified franchising and leasing business models, its customer base consists of a multitude of independent franchisees and various middle-market companies. Therefore, there are no specific major public companies that serve as primary, individually named customers for Winmark, as its customer relationships are highly fragmented across many smaller, non-public entities.

Brett D. Heffes, Chair of the Board and Chief Executive Officer

Brett D. Heffes has served as the Chair of the Board of Directors since March 1, 2020, and as Chief Executive Officer of Winmark Corporation since February 2016. He joined Winmark in 2002 and previously held positions including President of Finance and Administration, Chief Financial Officer, and Treasurer. Mr. Heffes brings extensive experience in executive management, financial management, capital markets, and corporate governance. His prior experience includes serving as Chief Financial Officer at Gearworks, Inc., and Veeco St. Paul, Inc., and as an independent director at Famous Dave's of America, Inc., and The J. Jill Group, Inc.. He has been instrumental in refocusing Winmark by shedding non-core activities, such as selling a small ticket leasing business and winding down a middle-market leasing business.

Anthony D. Ishaug, Chief Financial Officer and Treasurer

Anthony D. Ishaug serves as the Chief Financial Officer and Treasurer of Winmark Corporation, a position he has held since September. Before joining Winmark, Mr. Ishaug's career included roles as CFO/COO at Department 56 Inc. and Treasurer/Controller at Lenox.

Renae M. Gaudette, Chief Operating Officer

Renae M. Gaudette holds the title of Chief Operating Officer at Winmark Corporation. She previously served as Executive Vice President and Vice President - Franchising within the company.

Lisa S. Hake, Chief Marketing Officer

Lisa S. Hake joined Winmark Corporation as Chief Marketing Officer, effective October 1st. She brings over 25 years of experience in brand management, marketing innovation, franchisee ad fund management, partnership activations, and consumer engagement. Prior to Winmark, Ms. Hake was the Vice President of Marketing & Communications at Great Clips, and also held senior marketing roles at Best Buy (including Senior Marketing Director for Geek Squad), 3M, and The Pillsbury Company.

Steven A. Murphy, President of Franchising

Steven A. Murphy serves as the President of Franchising for Winmark Corporation.

Here are the key risks to Winmark Corporation's business:

1. Intensifying Competition from Online Resale Platforms and Other Digital Channels: Winmark's business model is heavily reliant on its network of physical franchised stores that buy, sell, and trade used merchandise. The increasing popularity and accessibility of online platforms such as Poshmark, Mercari, eBay, and Facebook Marketplace directly compete with Winmark's franchisees by offering alternative, often more convenient, channels for consumers to both sell their used items (impacting inventory acquisition for stores) and purchase pre-owned goods (impacting customer traffic and sales).

2. Sensitivity to Macroeconomic Conditions and Shifts in Consumer Spending Habits: Although the resale market can sometimes benefit during economic downturns, severe and prolonged economic contractions can negatively impact Winmark's business. Such conditions can reduce the supply of quality used merchandise (as consumers may hold onto items longer) and limit discretionary spending, even on lower-cost used items, thereby affecting the sales and profitability of its franchised stores.

3. Dependence on the Successful Performance and Expansion of its Franchise Network: As a franchisor, Winmark's primary revenue streams, including royalties, rent, and equipment leasing income, are directly tied to the operational success, profitability, and growth of its independent franchisees. Challenges such as difficulties in attracting and retaining qualified franchisees, declining franchisee financial performance (potentially due to competition or economic factors), or a slowdown in new store openings could significantly impact Winmark's overall business performance.

The rapid growth and increasing sophistication of online consumer-to-consumer (C2C) marketplaces and specialized resale platforms represent a clear emerging threat. Platforms such as Poshmark, Mercari, ThredUp, Depop, Facebook Marketplace, Reverb (for musical instruments), and SidelineSwap (for sporting goods) directly compete with Winmark's franchised stores for both the supply of used merchandise (by offering sellers an alternative with potentially higher returns and greater convenience) and for buyers (by providing a vast, easily accessible inventory online). This trend facilitates disintermediation, allowing individuals to transact directly, bypassing the physical retail model upon which Winmark's franchisees are built.

Winmark (WINA) Addressable Markets

Franchising Segment - Used Merchandise Retail

• Used Clothing and Accessories (Plato's Closet, Style Encore): The North America secondhand apparel market was projected to grow from USD 22.39 billion in 2023 to USD 58.34 billion by 2032. The U.S. second-hand fashion market was valued at approximately USD 51.9 billion in 2024. In 2026, the overall U.S. secondhand market is estimated at USD 61 billion, with resale accounting for USD 34 billion of that total. The Canada second-hand apparel (thrift) market is projected to grow from USD 5.2 billion in 2025 to USD 17.9 billion by 2031.
• Used Children's Clothing, Toys, Furniture, Equipment (Once Upon A Child): The U.S. secondhand kids' and baby item market was valued at USD 7 billion in 2021 and is forecast to reach USD 12.8 billion by 2030.
• Used Sporting Goods, Equipment, and Accessories (Play It Again Sports): While specific market sizes for *used* sporting goods are not readily available, the overall sporting goods market in the United States was worth an estimated USD 111 billion in 2022. The Canada sports equipment and outdoor gear market (overall) is valued at USD 4.5 billion. Consumer interest in secondhand exercise and sports equipment is significant, with 36% of consumers in the United States and 34% in Canada showing interest in 2023.
• Used Musical Instruments, Speakers, Amplifiers, and related accessories (Music Go Round): The overall musical instruments market in the United States was valued at USD 5.63 billion in 2024 and is projected to reach USD 9.73 billion by 2033. In Canada, the overall musical instruments market was valued at USD 2.36 billion in 2024 and is projected to reach USD 3.96 billion by 2033.

Leasing Segment - Middle-Market Equipment Leasing

• Equipment Leasing: The equipment leasing and finance industry in the United States reached a record high of USD 1.34 trillion in 2023. The U.S. industrial equipment rental and leasing market was USD 54.1 billion in 2024 and is expected to reach USD 56.6 billion in 2025. In Canada, the commercial and industrial machinery and equipment rental and leasing industry generated USD 18.1 billion in operating revenue in 2024. The broader Canadian equipment rental industry is projected to reach USD 8.5 billion in 2025 and USD 10.5 billion by 2029, with the construction and industrial equipment rental segment anticipated to grow to USD 6.6 billion in 2025 and USD 8.2 billion by 2029.

Winmark Corporation (WINA) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Franchise Expansion: The company continues to expand its franchise base. As of December 27, 2025, Winmark had 1,378 franchises in operation and over 2,800 available territories, with an additional 82 franchises awarded but not yet open. This expansion through new store openings is a direct driver of franchise fees and ongoing royalty revenue.
2. Increased Royalty Revenue from System-Wide Sales: A primary revenue driver for Winmark is royalties from its existing franchise network. The company's ongoing investments in marketing, technology, and innovation are aimed at supporting franchisees and enhancing the shared business model, which is anticipated to lead to increased system-wide sales and, consequently, higher royalty revenue.
3. Growth in Equipment Leasing Business: Winmark's middle-market equipment leasing business, operated by its subsidiary Winmark Capital, has been identified as a growing component of its revenue.
4. Strategic Investments in Marketing, Technology, and Innovation: Winmark made significant investments in marketing, technology, and innovation in 2025 and plans to continue building on these areas. These strategic investments are intended to strengthen support for franchisees and enhance the overall business model, which is expected to positively influence royalty growth and system-wide franchise performance.
5. Capitalizing on Consumer Demand for Resale and Sustainability: Winmark is positioned to benefit from the increasing consumer demand for sustainable and affordable shopping alternatives within the growing resale sector. The company leverages this trend across its various brands, which is expected to continue driving customer traffic and sales for its franchisees.

Share Repurchases

• Winmark repurchased common stock totaling $2,418,700 in 2025.
• In 2022, the company's share repurchases included approximately $36.59 million in Q1 and $11.26 million in Q2.
• During 2021, Winmark executed significant repurchases, with notable amounts including $16.32 million in Q4 and $10.46 million in Q1.

Share Issuance

• Proceeds from the exercises of stock options amounted to $4,957,800 in 2025.
• In 2024, the proceeds from stock option exercises were $5,033,700.

Outbound Investments

• Winmark reported no significant purchase of investments for the trailing twelve months ended December 2025.

Capital Expenditures

• Capital expenditures for Winmark were $192,300 in 2025.
• Capital expenditures were $0.19 million in 2024 and $0.38 million in 2023.
• The company's capital spending is generally minimal, indicating that the business is not heavily capital-intensive.