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Ennis reports higher revenue but lower earnings amid legal items
Quarter revenue rose to $102.0 million, while net earnings fell to $9.4 million, and management pointed to different litigation timing between periods as a key factor.
Ennis, Inc. (NYSE: EBF) posted higher revenue but lower earnings for the quarter ended August 31, 2026, with management saying legal items complicate the comparison. According to Yahoo Finance, the company reported revenue of $102.0 million, up 3.3% from $98.7 million, but net earnings declined to $9.4 million from $13.2 million.
The outlet said the prior-year quarter included a $5.3 million favorable litigation judgment, while the current quarter included an unrelated $700,000 litigation charge. After excluding the specified litigation effects from both periods, management reported diluted earnings per share increased by $0.02, a modest improvement that contrasts with the reported earnings decline.
Yahoo Finance also noted gross profit rose to $30.5 million from $30.1 million, despite margin pressure, with gross margin falling to 29.9% from 30.5%. Ennis generated $34.1 million of operating cash flow in the first half, cash totaled $54 million as of August 31, and the company reported no debt.
The company cited supply continuity after the closure of a sole domestic carbonless-paper producer, saying it has received shipments from alternative suppliers. Yahoo Finance added that acquisitions contributed about $2.3 million of the $3.3 million quarterly revenue increase, implying that the remainder of the sales growth was roughly $1 million, or about 1% of prior-year revenue, based on rounded figures.