Envela (ELA) Q2 2026 earnings summary

Executive summary

• Sales for the quarter ended June 30, 2026, increased 3.5% year-over-year to $56.8M, with net income up 51.7% to $4.2M and EPS rising 45.5% to $0.16 per share.

• For the six months ended June 30, 2026, sales rose 50.4% to $155.2M, net income surged 148.1% to $13.0M, and EPS increased 150% to $0.50, nearly matching all of last year.

• Operating income for Q2 2026 was $5.1M, up 56.7% year-over-year, with gross margin expanding to 23.6% of revenue.

• Growth was driven by strong wholesale and retail performance in the consumer segment and robust demand for re-marketed technology assets in the commercial segment.

• Operating cash flow for the quarter was $5.9M; net cash at quarter-end was $33.8M, up from $8.2M at year-end.

Financial highlights

• Q2 2026 gross margin improved to 23.6% from 22.6% year-over-year; six-month gross margin was 21.9% versus 23.6% prior year.

• Operating expenses decreased to $8.3M from $9.1M year-over-year.

• Adjusted EBITDA for Q2 2026 was $5.6M, and for the six months ended June 30, 2026, $17.3M.

• Free cash flow for the six months ended June 30, 2026, was $25.5M, a significant increase from $2.8M in the prior year period.

• Cash and cash equivalents at June 30, 2026, were $43.4M, up from $18.2M at year-end 2025.

Outlook and guidance

• Management expects no recurrence of the extraordinary working capital conversion seen in the first half of 2026.

• The company continues to monitor commodity prices, inventory, and accounts receivable exposure, with sufficient liquidity to maintain current operations.

• Management remains confident in the business model's resilience across commodity cycles, mindful of precious metals volatility and industry-wide refiner backlogs.