Executive Summary
Ennis Inc reported QQ1 2026 revenue of $97.2 million, representing a 5.73% year-over-year decline and a 4.85% sequential rebound from the prior quarter. Despite softer top-line performance, the company delivered robust profitability metrics: gross margin of 31.1%, EBITDA of $17.7 million (EBITDA margin 18.2%), and operating income of $13.28 million (operating margin 13.7%). Net income totaled $9.80 million with basic and diluted EPS of $0.38. The quarter featured disciplined cost management and favorable operating leverage that helped preserve earnings power even as demand softened.* On the balance sheet, Ennis retains a strong liquidity position with cash and cash equivalents of $32.6 million and a net cash position of approximately $28.4 million after accounting for a modest debt burden of $4.27 million. The company also returned capital to shareholders via share repurchases of about $5.01 million and dividends of $6.57 million, while generating free cash flow of roughly $6.59 million. The QQ1 2026 results suggest a company navigating a modestly improved quarterly cadence while managing a mid-cycle form-runner market, with cash-generative operations and an intent to optimize capital allocation.
Key Performance Indicators
Key Insights
Revenue: $97.20M, YoY -5.73%, QoQ +4.85%; Gross Profit: $30.23M, YoY -2.18%, QoQ +10.48%; Operating Income: $13.28M, YoY -3.28%, QoQ +10.59%; Net Income: $9.80M, YoY -8.31%, QoQ +8.60%; EPS: $0.38, YoY -7.32%, QoQ +8.57%; Gross Margin: 31.10%; EBITDA: $17.70M, EBITDA Margin: 18.21%; Net Margin: 10.08%; Cash & Equivalents: $32.62M; Total Debt: $4.27M; Net Debt: -$28.35M (net cash); Current Assets: $136.05M; Current Liabilities: $45.81M; ROE (contextual approximation not provided); Free Cash F...
Financial Highlights
Revenue: $97.20M, YoY -5.73%, QoQ +4.85%; Gross Profit: $30.23M, YoY -2.18%, QoQ +10.48%; Operating Income: $13.28M, YoY -3.28%, QoQ +10.59%; Net Income: $9.80M, YoY -8.31%, QoQ +8.60%; EPS: $0.38, YoY -7.32%, QoQ +8.57%; Gross Margin: 31.10%; EBITDA: $17.70M, EBITDA Margin: 18.21%; Net Margin: 10.08%; Cash & Equivalents: $32.62M; Total Debt: $4.27M; Net Debt: -$28.35M (net cash); Current Assets: $136.05M; Current Liabilities: $45.81M; ROE (contextual approximation not provided); Free Cash Flow: $6.59M; Weighting of SG&A (selling, general & administrative) $16.95M; Operating Expenses: $16.95M; Inventory: $53.11M; Accounts Receivable: $47.59M; Backlog indicators not disclosed; Leverage and liquidity metrics substantiate a conservative balance sheet and prudent capital returns.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
97.20M |
-5.73% |
4.85% |
| Gross Profit |
30.23M |
-2.18% |
10.48% |
| Operating Income |
13.28M |
-3.28% |
10.59% |
| Net Income |
9.80M |
-8.31% |
8.60% |
| EPS |
0.38 |
-7.32% |
8.57% |
Management Commentary
Note: No QQ1 2026 earnings call transcript data was provided in the material. As a result, direct management quotes and call-by-call nuances could not be extracted. The thematic expectations from Ennis’ typical discussions would center on (a) pricing discipline and product mix optimization supporting margins, (b) continued cost containment and operating leverage, and (c) capital allocation through shareholder returns and balance sheet strength. When transcript data is available, quotes should be anchored to concrete statements and linked to the relevant quarter.
Forward Guidance
Management did not publish explicit numeric guidance for QQ2 or the full-year QQ2026 in the provided material. Given the QQ1 2026 backdrop, the near-term trajectory will likely hinge on demand stabilization in the business forms market, price realization, and ongoing cost controls. Scenario-based view:
- Base case: Revenue stabilizes around current levels with modest YoY improvement as volumes recover in select channels; margin remains supportive due to disciplined cost management and favorable mix, yielding continued mid-teens operating margins and double-digit net margins.
- Upside: Strength in core product lines (tags, labels, and envelopes) combined with accretive price realization and savings from lower operating costs could push EBITDA margin toward the high-teens range and improve FCF conversion.
- downside: A sharper-than-expected pullback in business forms demand, input-cost volatility (notably paper/packaging), or delayed customer adoption of price increases could compress margins and cash flow.
Key factors to monitor include order trends and backlog evolution, price realization, mix shift toward higher-margin products, working capital dynamics (receivables and inventories), and any incremental capital expenditure vs. returns to shareholders.