Endeavour Silver Corp reported Q1 2025 results showing a modest top-line expansion on a sequential basis but a material net loss for the quarter due primarily to a substantial negative swing in total other income/expenses. Revenue reached $63.50 million, up 50.43% QoQ from the prior quarter but down 0.36% YoY, while gross profit rose to $12.84 million and gross margin stood at 20.22%. Operating income was $4.03 million (6.35% operating margin), but EBITDA was negative $17.86 million on account of non-operating charges and non-cash items that offset operating earnings. The net loss was $32.91 million, or -51.8% of revenue, driven by a -$31.87 million net impact from other income/expenses and a modest tax contribution of $5.07 million, resulting in an EPS of -$0.13 for the quarter.
From a balance-sheet and cash-flow perspective, Endeavour exhibited a lean operational cash flow: net cash provided by operating activities was $3.36 million, while capital expenditure (capex) of $41.59 million produced negative free cash flow of $38.22 million for the quarter. The company ended the period with $64.70 million of cash and cash equivalents and a net debt position of $57.74 million (total debt $122.44 million). The balance sheet remains asset-rich (Total assets $727.99 million) with a solid equity base ($452.05 million) and a current ratio of 1.14, indicating adequate near-term liquidity to fund ongoing capex and exploration activities.
Operationally, Endeavour continues to rely on its producing Guanaceví and Bolanitos mines in Mexico, with several exploration and development projects in the portfolio and potential near-term catalysts from ongoing project work and commodity price dynamics. However, near-term profitability remains challenged by higher non-operating charges and heavy capex intensity, underscoring the importance of balancing production optimization, cost control, and capital discipline. The longer-run growth thesis hinges on the Terronera project and continued mine performance, coupled with favorable silver price dynamics and operational efficiency improvements.