Executive Summary
Ennis Inc delivered solid quarterly profitability and robust cash generation in Q4 2025, even as revenue declined versus prior periods. Revenue of $92.70 million represents a YoY reduction of approximately 4.9% and a QoQ drop of about 7.1%, driven by weaker demand in the business forms and related segments during a seasonally softer quarter. Despite top-line pressure, Ennis posted a favorable gross margin of 29.5% and an operating margin of 12.96%, resulting in net income of $9.02 million and earnings per share of $0.35 for the quarter. Operating cash flow came in at $12.76 million and free cash flow was $11.12 million, underscoring the company’s ability to convert earnings into meaningful liquidity. At quarter-end, Ennis held cash and equivalents of roughly $67.0 million with a net debt position of approximately negative $57.5 million, reflecting a conservative balance sheet, ample liquidity, and a strong cash-generating profile relative to current liabilities.
The quarterly performance benefited from disciplined cost management and favorable working capital dynamics, as evidenced by a cash conversion cycle that remains manageable in the low- to mid-90 days, and a current ratio of 4.59x. The company sustains a high dividend payout ratio (about 74.6% of earnings), consistent with a track record of returning capital to shareholders while preserving balance sheet flexibility. Looking ahead, the key questions for investors are whether Ennis can stabilize revenue in a declining market, whether gross and operating margins can be sustained or expanded in the face of competitive pricing pressures, and how cash generation can be leveraged to fund strategic growth initiatives or selective acquisitions within its niche of business forms and labels.
Key Performance Indicators
QoQ: -11.57% | YoY:-11.07%
QoQ: -10.26% | YoY:-10.26%
Key Insights
Revenue: $92.70m, Gross Margin: 29.52%, Operating Margin: 12.96%, Net Margin: 9.73% | YoY: Revenue YoY -4.86%, Gross Profit YoY -1.12%, Operating Income YoY -7.14%, Net Income YoY -11.07%, EPS YoY -10.26% | QoQ: Revenue QoQ -7.09%, Gross Profit QoQ -6.45%, Operating Income QoQ -7.93%, Net Income QoQ -11.57%, EPS QoQ -10.26%
Cash Flow: Net cash provided by operating activities $12.76m; Free cash flow $11.12m; Cash at end of period $67.0m; Cash Conversion to FCF and FCF per share (approx. $0.43 p...
Financial Highlights
Revenue: $92.70m, Gross Margin: 29.52%, Operating Margin: 12.96%, Net Margin: 9.73% | YoY: Revenue YoY -4.86%, Gross Profit YoY -1.12%, Operating Income YoY -7.14%, Net Income YoY -11.07%, EPS YoY -10.26% | QoQ: Revenue QoQ -7.09%, Gross Profit QoQ -6.45%, Operating Income QoQ -7.93%, Net Income QoQ -11.57%, EPS QoQ -10.26%
Cash Flow: Net cash provided by operating activities $12.76m; Free cash flow $11.12m; Cash at end of period $67.0m; Cash Conversion to FCF and FCF per share (approx. $0.43 per share) support a constructive liquidity position. Balance Sheet: Total assets $348.94m; Total liabilities $46.96m; Cash & equivalents $67.0m; Long-term debt $5.31m; Net debt negative $57.52m; Current ratio 4.59x; Quick ratio 3.42x; Dividend Payout Ratio 74.6%; Book value per share $2.78; P/B ~1.83x; P/S ~5.95x; P/E ~15.3x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
92.70M |
-4.86% |
-7.09% |
| Gross Profit |
27.36M |
-1.12% |
-6.45% |
| Operating Income |
12.01M |
-7.14% |
-7.93% |
| Net Income |
9.02M |
-11.07% |
-11.57% |
| EPS |
0.35 |
-10.26% |
-10.26% |
Key Financial Ratios
operatingProfitMargin
13%
operatingCashFlowPerShare
$0.49
freeCashFlowPerShare
$0.43
dividendPayoutRatio
74.6%
Management Commentary
No earnings call transcript was provided in the dataset. As a result, there are no management quotes or thematic highlights to extract from an earnings call. Investors should reference the company’s prepared remarks and SEC filing for management commentary when available.
Forward Guidance
The dataset does not include formal forward guidance from Ennis for the next quarter or full year. Given the observed revenue decline (YoY and QoQ) and the ongoing competitive environment in business forms and related products, a conservative to moderate outlook is prudent. Key factors that could influence near-term performance include: (1) stabilization or improvement in demand for business forms and related printed products, (2) realized gross margin management through pricing, mix, and cost control, (3) continued strong cash flow generation that could support deleveraging (if needed) or enhanced capital returns, and (4) potential growth initiatives in higher-margin categories such as labels and specialty print solutions. Investors should monitor: quarterly revenue trajectory, gross and operating margins, D&A trends (as a driver of EBITDA vagaries), accounts receivable days outstanding, and any strategic developments (e.g., product line expansions or acquisitions) that could alter the margin profile and growth path.