Endeavour Silver Corp delivered a strong topline uptick in QQ2 2025, with revenue of $88.6 million, up 52.1% year-over-year and 39.5% quarter-over-quarter. However, the quarter culminated in a net loss of $20.5 million and negative operating margins, reflecting a combination of higher operating costs, significant non-operating charges, and ongoing capex-driven growth initiatives. EBITDA remained modestly positive at $1.75 million, underscoring a fragile path to sustained profitability as the company accelerates investments in its asset base and growth projects. Cash flow from operations was solid at $21.6 million, yet free cash flow was negative at $32.6 million due to elevated capital expenditures and acquisition-related outlays, highlighting near-term liquidity and capital allocation considerations for investors.
The balance sheet shows a robust asset base with total assets of $995.9 million and total stockholders’ equity of $529.1 million, but liquidity metrics signaling near-term headwinds: current ratio of 0.93 and negative working capital. Net debt stands at $84.4 million, with total debt of $136.6 million. Management’s growth trajectory appears anchored by the Terronera project and ongoing development of Guanacevi and Bolanitos, with the balance sheet supporting continued mining operations and project activity, albeit with elevated capex and acquisition-related spending. The company’s current valuation metrics imply a high enterprise-value-to-EBITDA construct relative to earnings, warranting careful monitoring of cost controls, production efficiency, and project execution milestones.
Overall, Endeavour remains a small-to-mid-cap silver producer with meaningful upside tied to project advancement and silver price dynamics, yet faces profitability hurdles and a cash-flow profile that hinges on managing capex and working capital in the medium term.