Executive Summary
EVI Industries delivered a positive QQ1 2025 performance with momentum across revenue and profitability metrics, supported by a favorable mix and disciplined cost management. Total revenue for QQ1 2025 reached $93.63 million, up 6.30% year over year and 3.86% quarter over quarter, while gross profit rose to $28.86 million for a gross margin of 30.82%. Operating income of $4.99 million expanded 90.6% year over year, driving net income to $3.23 million and EPS of $0.25, up 178.7% and 78.6% respectively on a YoY and QoQ basis. Despite a higher absolute earnings level, free cash flow remained negative at $(1.05) million, reflecting ongoing investment activity and working capital dynamics as the company advances its growth initiatives.
From a balance sheet perspective, EVI carried total assets of $245.5 million against total liabilities of $109.5 million and stockholders’ equity of $136.1 million. The company maintains modest liquidity with cash and cash equivalents of $4.37 million and a current ratio of 1.44. Net debt stood at approximately $29.4 million, with total debt at $29.44 million (short-term debt $3.33 million and long-term debt $26.11 million). Goodwill and intangible assets remain a meaningful component of the asset base (Goodwill $77.60 million; intangible assets $22.95 million, total $100.54 million), presenting impairment risk if operating conditions deteriorate.
Relative to peers in industrials distribution, EVI trades at a plausible multiple profile for a small-cap distributor with improving margins and a shift toward higher-return activities. While the business shows earnings resilience and margin expansion, the stock’s sensitivity to working capital and acquisition-related cash outlays suggests a measured risk-reward profile. Investors should monitor balance sheet flexibility, ongoing integration of any acquisitions, commodity and HVAC cycle dynamics, and the pace of organic revenue growth as catalysts for sustained performance.
Key Performance Indicators
QoQ: 56.31% | YoY:152.03%
QoQ: 78.57% | YoY:178.71%
Key Insights
Revenue: QQ1 2025 revenue of $93.625 million, up 6.30% YoY and 3.86% QoQ. Gross Profit: $28.855 million with a gross margin of 30.82% (YoY margin expansion driven by product mix and pricing actions). Operating Income: $4.989 million, margin 5.33% (YoY up from prior period due to higher gross profit and controlled operating costs). Net Income: $3.231 million, net margin 3.45% (YoY growth of 152.0%; QoQ growth 56.3%). EPS: $0.25 (basic and diluted $0.25), YoY growth 178.7%, QoQ growth 78.6%. SG&am...
Financial Highlights
Revenue: QQ1 2025 revenue of $93.625 million, up 6.30% YoY and 3.86% QoQ. Gross Profit: $28.855 million with a gross margin of 30.82% (YoY margin expansion driven by product mix and pricing actions). Operating Income: $4.989 million, margin 5.33% (YoY up from prior period due to higher gross profit and controlled operating costs). Net Income: $3.231 million, net margin 3.45% (YoY growth of 152.0%; QoQ growth 56.3%). EPS: $0.25 (basic and diluted $0.25), YoY growth 178.7%, QoQ growth 78.6%. SG&A: Selling, General & Administrative expenses $23.866 million (as reported), representing ongoing operating discipline alongside revenue growth. EBITDA: $4.989 million; EBITDA margin 5.33%. Cash Flow: Net cash provided by operating activities $0.207 million; capital expenditures $1.253 million; free cash flow negative $(1.046) million largely due to acquisitions and working capital movements. Balance Sheet: Total assets $245.5 million; cash and cash equivalents $4.37 million; total current assets $112.34 million; total current liabilities $77.83 million; total debt $29.44 million; debt ratio 12.0%; liquidity metrics show current ratio 1.443 and quick ratio 0.790. Shareholder metrics: Weighted average shares outstanding 12.685 million (basic) and 13.047 million (diluted). Valuation context from peers indicates P/E ~19x, P/B ~1.8x, and P/S ~2.6x, with enterprise value multiple around mid-50s to 60s for the period observed.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
93.63M |
6.30% |
3.86% |
| Gross Profit |
28.86M |
12.31% |
5.43% |
| Operating Income |
4.99M |
90.64% |
36.61% |
| Net Income |
3.23M |
152.03% |
56.31% |
| EPS |
0.25 |
178.71% |
78.57% |
Key Financial Ratios
operatingProfitMargin
5.33%
operatingCashFlowPerShare
$0.02
freeCashFlowPerShare
$-0.08
dividendPayoutRatio
121.7%
Management Commentary
Note: The earnings call transcript data was not provided in the dataset. Consequently, management quotes and theme-based insights from the QQ1 2025 call could not be extracted. If you can share the transcript, I will add them with context and quotes grouped by themes (strategy, operations, market conditions).
Forward Guidance
There is no explicit forward guidance disclosed in the provided data for QQ1 2025. Absent management-provided targets, the outlook will hinge on trailing-quarter momentum, industry demand for commercial and industrial laundry equipment, and the ability to optimize working capital amid acquisition-related activity. Given the revenue growth, margin resilience, and a disciplined SG&A profile, the organic trajectory could support mid-single-digit revenue growth in the near term if macro conditions remain favorable. Key uncertainties to monitor include: (1) pace of the industrial capex cycle and laundry equipment replacement demand, (2) integration and contribution of any acquisitions, (3) working capital elongation or improvement, and (4) cost inflation and supply chain dynamics. Investors should watch for updated guidance on revenue mix, margin targets, and cash flow optimization in the next quarterly update.