Eaco Corp 10-Q for FY2026 Q2

Eaco Corp (EACO)

10-Q 2026-04-13 For: 2026-02-28

Added on April 13, 2026

About this 10-Q

Eaco Corp filed this 10-Q on April 13, 2026, covering the quarter ended February 28, 2026 (FY2026 Q2).

Headline figures

Quarter ended February 28, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $117.84M; up 17.7% from $100.13M a year earlier
Net income: $9.8M; up 44.9% from net income of $6.76M a year earlier
Diluted EPS: $2.00; up 44.9% from $1.38 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					Six Months Ended
	February 28,					February 28,
	2026			2025		2026			2025
Revenues	$	117,836		$	100,132	$	228,789		$	194,052
Cost of revenues		81,609			70,624		158,207			136,763
Gross margin		36,227			29,508		70,582			57,289
Operating expenses:
Selling, general and administrative expenses		23,439			20,414		45,285			39,352
Income from operations		12,788			9,094		25,297			17,937

Net gain on trading securities		416			30		459			484
Interest and other expense		(46)			(49)		(83)			(97)
Other income (expense), net		370			(19)		376			387
Income before income taxes		13,158			9,075		25,673			18,324
Provision for income taxes		3,361			2,312		6,556			4,673
Net income		9,797			6,763		19,117			13,651
Cumulative preferred stock dividend		(19)			(19)		(38)			(38)
Net income attributable to common shareholders	$	9,778		$	6,744	$	19,079		$	13,613

Basic earnings per common share	$	2.01		$	1.39	$	3.92		$	2.80
Diluted earnings per common share	$	2.00		$	1.38	$	3.90		$	2.79
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						Six Months Ended
		February 28,						February 28,
		2026			2025			2026			2025
Net income		$	9,797		$	6,763		$	19,117		$	13,651
Other comprehensive income, net of tax
Foreign currency translation gain (loss)			66			(104)			58			(139)
Total comprehensive income		$	9,863		$	6,659		$	19,175		$	13,512


		February 28,			August 31,
		2026			2025*
ASSETS
Current Assets:
Cash and cash equivalents		$	5,140		$	728
Restricted cash			10			10
Trade accounts receivable, net			64,692			65,863
Inventory, net			91,327			83,980
Marketable securities, trading			24,929			30,375
Prepaid expenses and other current assets			6,060			5,009
Total current assets			192,158			185,965
Non-current Assets:
Property, equipment and leasehold improvements, net			35,466			34,670
Operating lease right-of-use assets			8,574			6,814
Other assets, net			2,859			2,704
Total assets		$	239,057		$	230,153
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Trade accounts payable		$	37,092		$	33,179
Accrued expenses and other current liabilities			13,772			29,762
Current portion of long-term debt			138			135
Current portion of operating lease liabilities			3,289			2,843
Total current liabilities			54,291			65,919
Non-current Liabilities:
Long-term debt			4,010			4,079
Operating lease liabilities			5,769			4,305
Total liabilities			64,070			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			132			74
Retained earnings			162,427			143,348
Total shareholders’ equity			174,987			155,850
Total liabilities and shareholders’ equity		$	239,057		$	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 Six Months Ended February 28, 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

For the Three and Six Months Ended February 28, 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


Fiscal Year		Principal Amount Due
2026		$	138,000
2027			4,010,000
Total		$	4,148,000


Years Ending:
2026 (remaining six months)	$	3,300,000
2027		3,085,000
2028		2,180,000
2029		1,328,000
2030		757,000
2031		22,000
Thereafter		241,000
Future minimum lease payments	$	10,913,000
Less interest		(1,855,000)
Present value of minimum lease payments	$	9,058,000


		Three Months Ended
		February 28,						$			%
Other income (expense):		2026			2025			Change			Change
Realized gain on sales of marketable trading securities		$	193		$	143		$	50		35.0	%
Unrealized gain (loss) on marketable trading securities			223			(113)			336		(297.3)	%
Interest and other (expense)			(46)			(49)			3		(6.1)
Other income (expense), net		$	370		$	(19)		$	389		2,047.4	%
Other income (expense), net as a percent of revenues			0.3	%		(0.0)	%				0.3	%


No.		Exhibit

10.1		Change In Terms Agreement dated February 15, 2026, between Bisco Industries, Inc. and Citizens Business Bank ($20,000,000 line of credit) (Exhibit 10.1 to the Company’s Form 8-K filed on March 2, 2026, is incorporated herein by reference)
10.2		Commercial Guaranty, dated February 15, 2026, between EACO Corporation and Citizens Business Bank. (Exhibit 10.2 to the Company’s Form 8-K filed on March 2, 2026, is incorporated herein by reference.)
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		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

	EACO CORPORATION
	(Registrant)

Date: April 10, 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: April 10, 2026		/S/ GLEN CEILEY
		Glen Ceiley
		Chief Executive Officer
		(Principal Executive Officer and Principal Financial Officer)


Dated: April 10, 2026		/S/ GLEN CEILEY
		Glen Ceiley
		Chief Executive Officer
		(Principal Executive Officer and Principal Financial Officer)


		Six Months Ended
		February 28,
		2026			2025
Operating activities:
Net income		$	19,117		$	13,651
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			870			858
Allowance for credit losses			261			144
Deferred tax provision			(27)			(28)
Unrealized loss (gain) on trading securities			18			(100)
Increase (decrease) in cash flow from change in:
Trade accounts receivable			910			(1,615)
Inventory			(7,347)			(9,775)
Prepaid expenses and other assets			(1,179)			(778)
Operating lease right-of-use assets			(1,760)			290
Trade accounts payable			4,107			5,881
Accrued expenses and other current liabilities			(15,990)			(9,365)
Operating lease liabilities			1,910			(226)
Net cash provided by (used in) operating activities			890			(1,063)
Investing activities:
Additions to property, equipment, and leasehold improvements			(1,666)			(326)
Sale (Purchase) of marketable securities, trading			5,428			(233)
Net cash provided by (used in) investing activities			3,762			(559)
Financing activities:
Preferred stock dividend			(38)			(38)
Repayments on long-term debt			(66)			(63)
Bank overdraft			(194)			1,518
Net cash (used in) provided by financing activities			(298)			1,417
Effect of foreign currency exchange rate changes on cash and cash equivalents			58			(139)
Net increase (decrease) in cash, cash equivalents, and restricted cash			4,412			(344)
Cash, cash equivalents, and restricted cash - beginning of period			738			853
Cash, cash equivalents, and restricted cash - end of period		$	5,150		$	509
Supplemental disclosures of cash flow information:
Cash paid for interest		$	83		$	97
Cash paid for income taxes		$	11,302		$	9,213
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents		$	5140		$	499
Restricted cash		$	10		$	10
Total cash, cash equivalents, and restricted cash		$	5,150		$	509


		February 28,			August 31,
		2026			2025
Operating lease assets:
Right-of-use assets		$	8,574,000		$	6,814,000

Operating lease liabilities:
Current lease liabilities		$	3,289,000		$	2,843,000
Long-term lease liabilities		$	5,769,000		$	4,305,000

Weighted average remaining lease terms			3.2 years			2.8 years
Incremental borrowing rate			7.3	%		7.2	%