EVI Industries Reports 16% Revenue Growth to $108.3 Million, Net Income Declines

EVI Industries, Inc. reported its financial results for the three months ending September 30, 2025, revealing a revenue increase of 16% to $108.3 million, up from $93.6 million in the same period last year. The company's gross profit also rose by 17% to $33.9 million, with gross margins improving slightly from 30.8% to 31.3%. However, net income decreased to $1.8 million, down from $3.2 million in the prior year, primarily due to a 27% increase in selling, general, and administrative expenses, which totaled $30.3 million.

The increase in operating expenses was attributed to costs associated with acquired businesses, higher selling costs linked to increased revenues, and additional expenses related to the company's participation in a major industry exposition. Interest expenses also rose to $916,000 from $482,000, reflecting higher average borrowings. The effective tax rate for the quarter was 30.2%, compared to 28.3% in the previous year, influenced by permanent book-tax differences.

EVI Industries has been active in expanding its operations through acquisitions, including the recent purchase of ASN Laundry Group for $0.5 million, which was finalized on August 1, 2025. This acquisition is part of the company's broader "buy-and-build" growth strategy, which aims to enhance its market presence and operational scale. The company also reported a total asset increase to $321.8 million from $307.0 million, driven by higher current assets, including accounts receivable and inventory.

Operationally, EVI Industries experienced a decrease in cash, ending the quarter with $4.7 million, down from $8.9 million at the end of June 2025. The company’s working capital also declined to $45.8 million, reflecting increases in accounts receivable and inventory. Despite these challenges, EVI Industries remains optimistic about its growth trajectory, emphasizing its commitment to expanding its customer base and enhancing service operations.

Looking ahead, EVI Industries anticipates continued revenue growth driven by its acquisition strategy and organic growth initiatives. The company is focused on leveraging its expanded capabilities to improve customer relationships and increase market share, despite potential challenges posed by economic conditions and inflationary pressures. The management believes that the existing cash, anticipated cash from operations, and available credit will be sufficient to support its operations and capital expenditures in the near term.