Envela (ELA) Q2 2025 earnings summary

Executive summary

• Consolidated sales rose 21.1% year-over-year to $54.9M for Q2 2025, driven by strong consumer segment growth, while commercial segment sales declined due to lower volumes and less ITAD revenue share settlements.

• Net income increased 76% to $2.8M for Q2 2025, with EPS up 83.3% to $0.11 per diluted share.

• Operating income increased 70.5% year-over-year, reaching $3.3M.

• Gross margin improved in both segments, with commercial segment margins benefiting from higher-margin product mix and service-related revenues.

• Inclusion in the U.S. Small-Cap Russell 2000 Index during the quarter.

Financial highlights

• Q2 2025 consolidated sales: $54.9M (+21.1% YoY); six months: $103.1M (+21.1% YoY).

• Q2 2025 net income: $2.8M (+76% YoY); six months: $5.25M (+51.1% YoY).

• Q2 2025 EPS: $0.11 (+83.3% YoY); six months: $0.20 (+53.8% YoY).

• Q2 2025 gross margin: $12.4M (22.6% of sales, down from 25.1% YoY); six months: $24.4M (23.6% of sales, down from 25.5% YoY).

• Adjusted EBITDA for Q2 2025: $3.72M (6.8% of revenue); six months: $7.28M.

Outlook and guidance

• Management expects continued growth in the consumer segment, focusing on new store performance and commercial segment expansion.

• Management remains focused on operational discipline, customer engagement, and sustaining growth into the second half of the year.

• No material impact anticipated from recent federal tax law changes.

• No commitments for capital expenditures as of June 30, 2025.