Enlightify Inc reported QQ1 2026 total revenue of $14.46 million, marking a substantial year-over-year decline of 56.1% but a modest quarter-over-quarter uptick of 0.8%. The gross profit of $3.46 million generated a gross margin of 23.9%, while operating income reached $1.19 million (8.2% of revenue) and net income totaled $1.09 million (net margin ~7.5%). EBITDA stood at $1.75 million, with an EBITDA margin of roughly 12.1%. These figures show meaningful profitability despite a pronounced top-line softness, underscoring operating leverage and cost discipline during the quarter.
From a liquidity and balance sheet perspective, Enlightify remains materially liquid. Cash and cash equivalents at quarter-end were $53.25 million, and the company reported a net cash position of about $41.1 million (net debt of -$41.08 million). The current ratio is approximately 2.0x based on reported current assets and current liabilities, highlighting solid short-term liquidity. However, operating cash flow was negative, at $(1.32) million, driven by working capital movements and a notable non-cash item, while foreign exchange effects added about $2.58 million to cash, contributing to a positive net change in cash of $0.73 million for the period. Free cash flow was negative at $(1.33) million, reflecting ongoing capital allocation needs and potential seasonality in working capital. The balance sheet also shows a sizable accumulated other comprehensive loss and a negative retained earnings position, signaling ongoing accounting and capitalization nuances.
Strategically, Enlightify continues to operate across its Jinong, Gufeng, and Yuxing segments, with the QQ1 2026 results demonstrating resilience in profitability amid revenue softness. In the absence of explicit forward guidance in the data provided, investors should monitor demand trends in agricultural inputs, price realization across segments, and working capital efficiency. The combination of a robust net cash position and improving operating profitability provides optionality to fund growth initiatives or selective capital deployment should demand conditions stabilize or improve.