Kevin Plank returned to lead Under Armour nearly two years ago with a restructuring plan aimed at righting the ship. That made for some bleak financial results.

But Friday, the company released its most promising earnings report since Plank took back the CEO reins in April 2024. Its stock price promptly rose 16%.

“If there is one thing to take away from today’s call — we believe that the most disruptive phase of our reset is now behind us,” Plank said on a call discussing the earnings with analysts.

It’s been a period of turbulence for the Baltimore-based sportswear company. Under Armour paid a huge settlement to shareholders in 2024, relocated to a new headquarters on the Baltimore Peninsula, shuffled its leadership team, battled tariffs, and, in November, lost its most prominent sponsored athlete, basketball star Steph Curry.

Under Armour is still expected to operate at a loss this year, but its revenue is not projected to decline as much as forecast, which investors saw as positive momentum.

“We’re not declaring all the work finished — yet, but are making real progress with a disciplined strategy, structure and team now in place. That progress is becoming more consistent,” Plank said.

Plank has cut 25% of the company’s production, focusing on premium goods in an effort to rediscover the brand’s identity.

He explained to analysts Friday that the company’s change in strategy has simplified operations and “reduced friction.” Under Armour is now entering the next phase of its turnaround, and its business in North America is turning the corner, he said, with the most recent quarter marking the “bottom of the reset.”

Friday’s earning call was the final one for Chief Financial Officer David Bergman, who will be replaced soon by a Samsonite executive.

“I believe Under Armour’s best days are still ahead,” Bergman said at the end of his opening remarks.

The company did have a few one-time costs this quarter, which Plank called “frustrating.”

For one, a federal court’s recent decision meant the company lost an insurance payout.

Like many corporations, Under Armour has an insurance policy that serves as a safety net in the event of litigation. Within the last decade, the company faced both a shareholder lawsuit and an investigation from federal securities regulators, and, as a result, sought two separate insurance payments of roughly $100 million each.

But the insurance company argued that the two events were connected, meaning it owed only one such payout. In January, a court sided with the insurers, reversing a lower court’s decision, which cost the company an anticipated $99 million.

While that was a setback, investors have been mostly bullish on Under Armour over the past two months.

Prem Watsa — the billionaire founder of Fairfax Financial Holdings known as the “Canadian Warren Buffet” — has been stockpiling Under Armour stock since December. He now owns roughly 65 million shares, worth over $450 million, which makes him almost assuredly the company’s largest outside shareholder.

David Swartz, a Morningstar analyst, said the purchases by Fairfax “appear to be a vote of confidence in Under Armour’s strategy.”

“At the very least, it’s an affirmation from a well-known value investor that Under Armour’s shares are inexpensive and the company is financially stable,” Swartz said in an email.

Under Armour’s share price took a dive last year following President Donald Trump’s announced tariffs, and it is worth less today than it was two years ago. And much less than 10 years ago in the company’s heyday.

But over the past seven weeks, the stock has risen more than 60% to over $7 a share — the highest jump since Plank returned as CEO. That trend continued Friday.

As an entrepreneur outside of Under Armour, Plank has seemed to narrow his focus recently to the company he founded in 1996. He’s sold most of his whiskey brand, is seeking a buyer for his Baltimore County horse farm, and in December pulled out of future development of the Baltimore Peninsula.

For the financial types, Under Armour reported a loss of $431 million on $1.33 billion in sales during the last three months of 2025. The loss included a $247 million deferred tax adjustment, $75 million in restructuring costs and other one-time costs. In the same quarter of 2024, Under Armour made $1.2 million on $1.4 billion in sales.

As the company returns to profitability, it said, it hopes to recover some of the deferred tax charges, boosting future earnings.