AI-extracted from the 10-Q filed 2026-08-05 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Consolidated sales rose 3.5% YoY to $56.8M with gross margin expanding to 23.6% from 22.6%, driving net income up 51.7% to $4.2M as consumer segment margins improved sharply even as precious-metals selling activity moderated from Q1 peaks.
Biggest Revenue Drivers
Consumer$44.7M+3.6% YoY
Wholesale vertical strength as gold/silver prices declined from late-January peaks, moderating customer selling activity toward more typical levels; supported by stronger retail buying volumes and favorable pricing
Commercial$12.0M+2.9% YoY
Continued strong demand for re-marketed technology assets/components; ITAD pricing benefits moderated from Q1, supported by trade-in vertical and harvested component sales
Biggest Revenue Drivers
Total revenue: $56.8M+3.5% YoY
Consumer$44.7M+3.6% YoY
Wholesale vertical strength as gold/silver prices declined from late-January peaks, moderating customer selling activity toward more typical levels; supported by stronger retail buying volumes and favorable pricing
Commercial$12.0M+2.9% YoY
Continued strong demand for re-marketed technology assets/components; ITAD pricing benefits moderated from Q1, supported by trade-in vertical and harvested component sales
Largest Expense Items
Cost of goods sold$43.4M+2.1% YoY
76.4% of sales, down from 77.4%; consumer COGS rose on higher wholesale volumes and gold/silver price movement, partly offset by favorable product mix
Selling, general and administrative$7.8M-10.3% YoY
Lower human capital costs and marketing timing in consumer; lower processing volumes and impact of Arizona ITAD facility closure in commercial
Depreciation and amortization$497,263+8.0% YoY
New store coming online in Q2 2026 without a full comparative quarter, plus growing allocated depreciation from corporate head office improvements
Margins: Consolidated gross margin rose to 23.6% of sales from 22.6%, driven by a favorable wholesale product mix in the consumer segment (margin up to 12.4% from 10.8%), while commercial margin slipped slightly to 65.2% from 66.1% on lower-margin ITAD and e-waste component mix.
Watch Items from the Filing
Two customers aggregated 50.8% of sales for the six months ended June 30, 2026, though they represented 0.0% of accounts receivable at quarter-end.
The company collected outstanding accounts receivable from a refining customer during the period, driving a $23.4M jump in operating cash flow that management says it does not expect to recur at similar magnitude.
Demand for safe-haven metals has created industry-wide refiner backlogs and slowed payments, increasing working capital needs to procure inventory and delaying AR conversion from refining customers.
Commercial segment SG&A benefited from the closure of the Arizona ITAD facility (completed in Q2 2025), and component cost trends are leading enterprises to extend hardware replacement cycles, which may constrain near-term inbound technology asset supply.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About Envela Corp (ELA): stock profile, AI score and financials
Envela Corp (ELA) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores ELA at 64.4/100 on a composite quality score built from its SEC filings, placing it at rank #543 of 2,925 stocks — the top 25% of the AI-ranked universe. ELA scores in the top quartile across balance sheet strength (97.3), revenue growth (90.4). Areas of concern include revenue scale (29.1) and earnings quality (31.6), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2026), Envela Corp reports quarterly revenue of $56.8M, net income of $4.2M, an operating margin of 9.0%. Top institutional holders of ELA by reported 13-F value include Mink Brook Asset Management, Topline Capital Management, BlackRock, based on the most recent SEC filings. ELA trades on the NYSE exchange and files with the SEC under CIK 701719. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate ELA daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Envela Corp directly from SEC EDGAR.