Interface (TILE) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: 0.21%
• Average Volume (3M): 409.94K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.74
• Revenue Growth: 5.11%
• EPS Growth: 34.02%
• Country: US
• Employees: 3,636
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.49
• Shares Outstanding: 57,963,490
• 10 Day Avg. Volume: 511,645
• 30 Day Avg. Volume: 409,941
• PEG Ratio: 0.43
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 13.75
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: 9.28
• 1Y Price Target: $36.00
• Price Target Upside: 24.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.09
• Revenue Forecast (FY): $1.46B

• Rating: 74 Outperform
• Price Target: $35.00 ▲(20.69% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is driven primarily by solid financial performance (improving profitability, stronger leverage profile, and healthy free cash flow) and a positive earnings outlook with supportive guidance and backlog trends. Valuation is reasonable, while technicals are the main offset due to weaker near-term momentum.

Positive Factors

Improved leverage & balance sheet

Interface materially lowered leverage (debt-to-equity ~0.63) and extended maturities, reducing refinancing risk and interest pressure. A stronger capital structure increases strategic optionality for capex, M&A, and shareholder returns while supporting durable operations.

Healthy cash generation

Sustained operating cash flow and a material free cash flow run-rate support reinvestment in automation and new products, debt paydowns, and rising dividends/share buybacks. Reliable cash conversion underpins long-term financial flexibility and capital allocation choices.

Product innovation & automation

The Noravant product platform and ongoing automation investments create structural upside: new addressable resilient categories and efficiency gains that expanded margins in 2025. Multi-year product ramps plus productivity programs can sustainably improve mix and operating leverage.

Negative Factors

Tariff volatility

Ongoing tariff and policy uncertainty creates a recurring margin risk that is hard to fully hedge. Unexpected tariff actions can compress gross margins and force pricing or sourcing changes, making medium-term margin forecasting and competitive positioning more volatile.

One-time margin benefit

A nonrecurring inventory reserve artificially boosted 2025 margins, reducing comparability to ongoing performance. This obscures the baseline margin run-rate and means part of recent expansion may reverse, complicating medium-term margin sustainability assessments.

Lengthy nora selling cycles

Longer selling cycles for nora and Noravant delay revenue realization and extend payback on commercialization costs. Gradual multi-quarter ramps increase execution risk, slow cash conversion from new products, and make growth timing and forecasting less predictable.

Interface Business Overview & Revenue Model

Company Description

Interface, Inc., a modular flooring company, designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific. The company offers modular carpets under the Interface and FLOR brand names; carpet tiles under the GlasBacRE name for use in commercial interiors, including offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors; modular resilient flooring products; rubber flooring under the norament and noraplan brand names; and luxury vinyl tile products. It also produces and sells an adapted version of its carpet tile for the healthcare facilities market; and two-meter roll goods that are structure-backed for use in education, healthcare, and government markets, as well as carpet replacement, installation, and maintenance services. In addition, the company sells and licenses a proprietary antimicrobial chemical compound under the Intersept name for use in interior finishes; sells TacTiles, a carpet tile installation system, as well as various adhesives and products; and provides turnkey project management services for global accounts and other customers through its InterfaceSERVICES business. It sells its products directly to end-users, as well as indirectly through independent contractors or distributors, and FLOR line of products through Internet sales and commercial sales force. The company has product showrooms or design studios in the United States, Canada, Mexico, England, France, Germany, Spain, the Netherlands, India, Australia, Norway, the United Arab Emirates, Russia, Singapore, Hong Kong, Thailand, China, and others. Interface, Inc. was incorporated in 1973 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Interface generates revenue primarily through the sale of its modular carpet tiles and flooring products to commercial customers and retailers. The company operates through direct sales and distribution channels, often leveraging partnerships with design firms and contractors to reach end-users. Key revenue streams include the sale of flooring products, installation services, and maintenance solutions. Additionally, Interface benefits from its emphasis on sustainability, attracting environmentally conscious clients and fulfilling corporate sustainability goals. The company has also formed significant partnerships with organizations promoting green building practices, which further enhances its market position and revenue opportunities.

Interface Financial Statement Overview

Summary

Financials are solid overall: improved profitability and margins with higher TTM earnings, better leverage (debt-to-equity ~0.63) and strong ROE (~20.6%), and healthy free cash flow (~$122M). Offsetting factors are only moderate revenue growth, historically cyclical profitability, and somewhat uneven cash conversion versus net income.

Income Statement

Profitability and momentum have improved meaningfully versus earlier years. TTM (Trailing-Twelve-Months) revenue is up about 4.8% year over year, while margins have expanded (gross margin ~38.2%, operating margin ~11.3%, net margin ~8.3%), driving higher earnings (TTM net income ~$116M vs. ~$87M in 2024 and ~$45M in 2023). The main weakness is that growth is steady rather than strong, and the business has shown cyclicality historically (notably weak profitability in 2020).

Balance Sheet

Leverage has improved substantially over time, with debt-to-equity moving down from elevated levels in 2020–2022 to ~0.63 in TTM (Trailing-Twelve-Months), indicating a stronger capital structure. Returns are also solid (TTM return on equity ~20.6%). Key watch-outs are that total debt remains meaningful (~$265M TTM) and the balance sheet has seen large equity swings across periods (e.g., much lower equity in 2023–2024 vs. TTM), which can signal structural changes that investors should monitor.

Cash Flow

Cash generation is healthy, with TTM (Trailing-Twelve-Months) operating cash flow of ~$168M and free cash flow of ~$122M. Free cash flow has accelerated sharply versus the prior period (TTM growth ~360%), supporting flexibility for reinvestment or capital returns. However, cash conversion is not perfect: free cash flow is ~75% of net income and operating cash flow is below net income (about 65%), suggesting working-capital or timing effects that can create volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.39B	1.32B	1.26B	1.30B	1.20B
Gross Profit	537.38M	482.95M	441.07M	437.73M	432.73M
EBITDA	198.39M	181.43M	141.71M	118.18M	155.45M
Net Income	116.10M	86.95M	44.52M	19.56M	55.23M
Balance Sheet
Total Assets	1.77B	1.17B	1.23B	1.27B	1.33B
Cash, Cash Equivalents and Short-Term Investments	71.32M	99.23M	110.50M	97.56M	97.25M
Total Debt	264.53M	383.14M	515.45M	610.62M	615.59M
Total Liabilities	565.85M	681.67M	804.15M	904.97M	966.66M
Stockholders Equity	1.21B	489.15M	425.95M	361.54M	363.40M
Cash Flow
Free Cash Flow	121.71M	114.64M	115.93M	24.62M	58.62M
Operating Cash Flow	167.91M	148.43M	142.03M	43.06M	86.69M
Investing Cash Flow	-46.19M	-30.37M	-19.51M	-18.44M	-28.07M
Financing Cash Flow	-159.29M	-125.23M	-111.56M	-19.49M	-60.86M

Interface Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TILE, the sentiment is Negative. The current price of 29 is below the 20-day moving average (MA) of 32.56, below the 50-day MA of 31.02, and above the 200-day MA of 26.47, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 29.44 is Positive, neither overbought nor oversold. The STOCH value of 6.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TILE.

Interface Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TILE	74 Outperform	$1.68B	14.41	20.55%	0.21%	5.11%	34.02%
LZB	65 Neutral	$1.45B	18.08	8.11%	2.39%	1.78%	-25.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	59 Neutral	$1.36B	11.21	-1.95%	4.16%	4.34%	-141.36%
LEG	57 Neutral	$1.53B	6.47	27.51%	1.84%	-6.03%	―
HOFT	54 Neutral	$145.28M	-1.14	-11.27%	7.20%	-12.09%	-204.66%
MBC	53 Neutral	$1.25B	53.13	6.19%	―	1.77%	-44.11%

Interface Corporate Events

Interface Posts Record 2025 Results, Strengthens Financial Position

Interface reported record fourth-quarter and full-year 2025 results on February 24, 2026, with net sales rising 4.3% in the quarter to $349 million and 5.4% for the year to $1.39 billion, and GAAP earnings per diluted share reaching $0.41 for the quarter and $1.96 for 2025. Profitability improved as gross margin expanded to 38.7% for the year, adjusted EPS grew 33% to $1.94, and strong cash generation enabled $128 million of debt repayment, extended maturities to 2030, higher dividends and $13 million of share repurchases, underscoring the momentum of its One Interface strategy and market share gains in key sectors.

Management highlighted broad-based growth across regions and product categories, with especially strong 2025 billings in healthcare and education and continued share gains in corporate office. Executives emphasized that operational discipline, favorable pricing and mix, manufacturing efficiencies and disciplined capital allocation have strengthened the balance sheet and reinforced the company’s positioning as a design and sustainability leader despite ongoing macroeconomic uncertainty.

The most recent analyst rating on (TILE) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Interface stock, see the TILE Stock Forecast page.

Interface Amends Syndicated Facility Agreement

Interface, Inc. entered into a Third Amended and Restated Syndicated Facility Agreement on December 3, 2025, with its foreign subsidiaries as co-borrowers and domestic subsidiaries as guarantors, alongside Bank of America and other lenders. The agreement introduces changes such as amended interest rates, an extended maturity date to December 3, 2030, a new $170 million term loan facility, and a reduced revolving credit facility. Additionally, Interface redeemed its $300 million Senior Notes due 2028 using proceeds from the term loan and cash on hand, effectively terminating obligations under the previous Indenture.

The most recent analyst rating on (TILE) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Interface stock, see the TILE Stock Forecast page.