Eaco Corp 10-Q for FY2026 Q3

Eaco Corp (EACO)

10-Q 2026-07-09 For: 2026-05-31

Added on July 09, 2026

About this 10-Q

Eaco Corp filed this 10-Q on July 9, 2026, covering the quarter ended May 31, 2026 (FY2026 Q3).

Headline figures

Quarter ended May 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $142.35M; up 27.8% from $111.41M a year earlier
Net income: $13.57M; up 42.6% from net income of $9.52M a year earlier
Diluted EPS: $2.77; up 42.8% from $1.94 a year earlier

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Florida	59-2597349
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)


Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☒
Smaller reporting company	☒	Emerging growth company	☐


	Three Months Ended					Nine Months Ended
	May 31,					May 31,
	2026			2025		2026			2025
Net sales	$	142,350		$	111,410	$	371,139		$	305,462
Cost of sales		97,904			77,337		256,111			214,100
Gross margin		44,446			34,073		115,028			91,362
Operating expenses:
Selling, general and administrative expenses		26,445			21,627		71,730			60,979
Income from operations		18,001			12,446		43,298			30,383

Net gain (loss) on trading securities		251			277		710			761
Interest and other (expense)		(47)			(46)		(130)			(143)
Other income (expense), net		204			231		580			618
Income before income taxes		18,205			12,677		43,878			31,001
Provision for income taxes		4,640			3,162		11,196			7,835
Net income		13,565			9,515		32,682			23,166
Cumulative preferred stock dividend		(19)			(19)		(57)			(57)
Net income attributable to common shareholders	$	13,546		$	9,496	$	32,625		$	23,109

Basic earnings per common share	$	2.79		$	1.95	$	6.71		$	4.75
Diluted earnings per common share	$	2.77		$	1.94	$	6.67		$	4.73
Basic weighted average common shares outstanding		4,861,590			4,861,590		4,861,590			4,861,590
Diluted weighted average common shares outstanding		4,901,590			4,901,590		4,901,590			4,901,590


		Three Months Ended						Nine Months Ended
		May 31,						May 31,
		2026			2025			2026			2025
Net income		$	13,565		$	9,515		$	32,682		$	23,166
Other comprehensive income, net of tax
Foreign currency translation gain (loss)			(55)			132			3			(7)
Total comprehensive income		$	13,510		$	9,647		$	32,685		$	23,159


		May 31,			August 31,
		2026			2025*
ASSETS
Current Assets:
Cash and cash equivalents		$	758		$	728
Restricted cash			10			10
Trade accounts receivable, net			72,173			65,863
Inventory, net			94,846			83,980
Marketable securities, trading			33,235			30,375
Prepaid expenses and other current assets			19,185			5,009
Total current assets			220,207			185,965
Non-current Assets:
Property, equipment and leasehold improvements, net			35,943			34,670
Operating lease right-of-use assets			9,029			6,814
Other assets, net			2,910			2,704
Total assets		$	268,089		$	230,153
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Trade accounts payable		$	36,093		$	33,179
Accrued expenses and other current liabilities			29,886			29,762
Current portion of long-term debt			4,113			135
Current portion of operating lease liabilities			3,502			2,843
Total current liabilities			73,594			65,919
Non-current Liabilities:
Long-term debt			—			4,079
Operating lease liabilities			6,017			4,305
Total liabilities			79,611			74,303
Commitments and Contingencies (Note 8)
Shareholders’ Equity:
Convertible preferred stock, $0.01 par value per share; 10,000,000 shares authorized; 36,000 shares outstanding (liquidation value $900)			1			1
Common stock, $0.01 par value per share; 8,000,000 shares authorized; 4,861,590 shares outstanding			49			49
Additional paid-in capital			12,378			12,378
Accumulated other comprehensive income			77			74
Retained earnings			175,973			143,348
Total shareholders’ equity			188,478			155,850
Total liabilities and shareholders’ equity		$	268,089		$	230,153


									Accumulated
	Convertible						Additional		Other				Total
	Preferred Stock			Common Stock			Paid-in		Comprehensive		Accumulated		Shareholders’
	Shares	Amount		Shares	Amount		Capital		Income		Earnings		Equity

For the Three and Nine Months Ended May 31, 2026
Balance, August 31, 2025	36,000	$	1	4,861,590	$	49	$	12,378	$	74	$	143,348	$	155,850
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation loss	—		—	—		—		—		(8)		—		(8)
Net income	—		—	—		—		—		—		9,320		9,320
Balance, November 30, 2025	36,000		1	4,861,590		49		12,378		66		152,649		165,143
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation gain	—		—	—		—		—		66		—		66
Net income	—		—	—		—		—		—		9,797		9,797
Balance, February 28, 2026	36,000		1	4,861,590		49		12,378		132		162,427		174,987
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation loss	—		—	—		—		—		(55)		—		(55)
Net income	—		—	—		—		—		—		13,565		13,565
Balance, May 31, 2026	36,000	$	1	4,861,590	$	49	$	12,378	$	77	$	175,973	$	188,478

For the Three and Nine Months Ended May 31, 2025
Balance, August 31, 2024	36,000	$	1	4,861,590	$	49	$	12,378	$	73	$	111,130	$	123,631
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation loss	—		—	—		—		—		(35)		—		(35)
Net income	—		—	—		—		—		—		6,888		6,888
Balance, November 30, 2024	36,000		1	4,861,590		49		12,378		38		117,999		130,465
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation loss	—		—	—		—		—		(104)		—		(104)
Net income	—		—	—		—		—		—		6,763		6,763
Balance, February 28, 2025	36,000		1	4,861,590		49		12,378		(66)		124,743		137,105
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation gain	—		—	—		—		—		132		—		132
Net income	—		—	—		—		—		—		9,515		9,515
Balance, May 31, 2025	36,000	$	1	4,861,590	$	49	$	12,378	$	66	$	134,239	$	146,733


Fiscal Year		Principal Amount Due
2026		$	34,000
2027			4,079,000
Total		$	4,113,000


Years Ending:
2026 (remaining three months)	$	1,070,000
2027		3,906,000
2028		2,681,000
2029		1,822,000
2030		910,000
2031		368,000
Thereafter		184,000
Future minimum lease payments	$	10,941,000
Less interest		(1,422,000)
Present value of minimum lease payments	$	9,519,000


		Three Months Ended
		May 31,						$			%
Other income (expense):		2026			2025			Change			Change
Realized gain on sales of marketable trading securities		$	260		$	172		$	88		51.2	%
Unrealized (loss) gain on marketable trading securities			(9)			105			(114)		(108.6)	%
Interest and other (expense)			(47)			(46)			(1)		2.2
Other income (expense), net		$	204		$	231		$	(27)		(11.7)	%
Other income (expense), net as a percent of revenues			0.1	%		0.2	%				(0.1)	%


		Nine Months Ended
		May 31,						$			%
Other income (expense) :		2026			2025			Change			Change
Realized gain on sales of marketable trading securities		$	737		$	556		$	181		32.6	%
Unrealized (loss) gain on marketable trading securities			(27)			205			(232)		(113.2)	%
Interest and other (expense)			(130)			(143)			13		(9.1)
Other income (expense), net		$	580		$	618		$	(38)		(6.1)	%
Other income (expense) , net as a percent of revenues			0.0	%		0.0	%				0.0	%


No.		Exhibit



31.1*		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act.
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
Exhibit 104		Cover Page Interactive Data File (formatted as Inline XBRL)

	EACO CORPORATION
	(Registrant)

Date: July 9, 2026	/s/ Glen Ceiley
	Glen Ceiley
	Chief Executive Officer
	(Principal Executive Officer & Principal Financial Officer)

	/s/ Michael Narikawa
	Michael Narikawa
	Controller and Chief Financial Executive
	(Principal Accounting Officer)


Date: July 9, 2026		/S/ GLEN CEILEY
		Glen Ceiley
		Chief Executive Officer
		(Principal Executive Officer and Principal Financial Officer)


Dated: July 9, 2026		/S/ GLEN CEILEY
		Glen Ceiley
		Chief Executive Officer
		(Principal Executive Officer and Principal Financial Officer)


		Nine Months Ended
		May 31,
		2026			2025
Operating activities:
Net income		$	32,682		$	23,166
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			1,315			1,268
Allowance for credit losses			472			203
Deferred tax provision			(60)			(18)
Unrealized loss (gain) on trading securities			27			(205)
Increase (decrease) in cash flow from change in:
Trade accounts receivable			(6,782)			(4,781)
Inventory			(10,866)			(13,178)
Prepaid expenses and other assets			(14,322)			27
Operating lease right-of-use assets			(2,215)			774
Trade accounts payable			1,786			6,268
Accrued expenses and other current liabilities			124			(3,416)
Operating lease liabilities			2,371			(704)
Net cash provided by operating activities			4,532			9,404
Investing activities:
Additions to property, equipment, and leasehold improvements			(2,588)			(575)
Purchase of marketable securities, trading			(24,614)			(16,184)
Sale of marketable securities, trading			21,727			9,074
Net cash provided by investing activities			(5,475)			(7,685)
Financing activities:
Borrowing on revolving credit facility			—			491
Preferred stock dividend			(57)			(57)
Repayments on long-term debt			(101)			(96)
Bank overdraft			1,128			4,377
Net cash provided by financing activities			970			4,715
Effect of foreign currency exchange rate changes on cash and cash equivalents			3			(7)
Net increase in cash, cash equivalents, and restricted cash			30			6,427
Cash, cash equivalents, and restricted cash - beginning of period			738			853
Cash, cash equivalents, and restricted cash - end of period		$	768		$	7,280
Supplemental disclosures of cash flow information:
Cash paid for interest		$	130		$	143
Cash paid for income taxes		$	23,493		$	9,213
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents		$	758		$	7,270


		May 31,			August 31,
		2026			2025
Operating lease assets:
Right-of-use assets		$	9,029,000		$	6,814,000

Operating lease liabilities:
Current lease liabilities		$	3,502,000		$	2,843,000
Long-term lease liabilities		$	6,017,000		$	4,305,000

Weighted average remaining lease terms			3.3 years			2.8 years
Incremental borrowing rate			7.3	%		7.2	%