Envela (ELA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $98.4 million, up 103.9% year-over-year, with strong growth in both Consumer and Commercial segments.

• Net income rose 254.5% to $8.8 million, or $0.34 per diluted share, compared to $2.5 million, or $0.10 per share, in Q1 2025.

• Operating income increased 259.5% to $11.2 million, and adjusted EBITDA was $11.7 million, up from $3.6 million in Q1 2025.

• Operating cash flow surged to $21.2 million, reflecting improved profitability and working capital management.

• Liquidity and balance sheet optimization continued, with cash and equivalents at $38.6 million as of March 31, 2026.

Financial highlights

• Trailing four quarters ended 03/31/2026: revenue $291.1 million, gross margin $62.6 million, operating income $26.2 million, adjusted EBITDA $28.1 million.

• Gross margin for Q1 2026 was $20.6 million, up 72.3% year-over-year, with consolidated margin at 21.0%.

• Free cash flow for Q1 2026 was $20.6 million, up from $0.7 million in Q1 2025.

• Net cash at quarter-end was $28.8 million; total debt was $9.8 million.

• Shareholders' equity reached $75.9 million; cash and equivalents were $38.6 million.

Outlook and guidance

• Management highlights ongoing commitment to sustainability, value creation, and maximizing shareholder value through strategic initiatives.

• Forward-looking statements emphasize continued focus on acquisitions, financial growth, and operational excellence.

• Management continues to monitor macroeconomic risks, including commodity price volatility, inflation, and interest rates.

• Expansion plans include new store openings and potential acquisitions in both segments.

• No material impact from recent tax law changes or tariffs in Q1 2026; future effects depend on asset acquisitions and market conditions.