Envela Reports Fourth Quarter and Fiscal Year 2024 Financial Results

Rhea-AI Summary

Envela (ELA) reported its Q4 and FY 2024 financial results, achieving annual revenue of $180.4 million with earnings per diluted share of $0.26. Q4 revenue reached $48.3 million with quarterly EPS of $0.06.

The company expanded its retail presence by nearly doubling store locations to 12 by year-end. The Consumer Division posted FY revenue of $130.5 million, while the Commercial Division generated $49.9 million. Notable achievements include record net cash position of $7.1 million and Commercial Division's adjusted EBITDA reaching all-time high of $9.0 million.

Gross profit margin improved to 24.6% for FY 2024, up from 23.8% in 2023. The company maintained strong liquidity with cash and equivalents of $20.6 million as of December 31, 2024. Under its share repurchase program, Envela bought back 916,597 shares for $2.4 million during 2024.

Positive

• Record net cash position of $7.1M
• Commercial Division achieved all-time high adjusted EBITDA of $9.0M
• Gross profit margin improved to 24.6% from 23.8% YoY
• Nearly doubled retail store locations to 12
• Commercial Division net income increased to $6.7M from $3.5M YoY
• Strong liquidity with $20.6M cash and equivalents

Negative

• Overall net income decreased to $6.8M from $7.1M YoY
• Operating income declined to $8.2M from $8.8M YoY
• Consumer Division operating income dropped to $0.1M from $4.7M YoY
• Consumer Division net income fell to $16.3K from $3.6M YoY
• Q4 gross profit margin decreased to 23.1% from 26.0% YoY

Insights

Financial Analyst

Envela's Q4 and FY2024 results present a mixed financial picture with notable strengths in its commercial segment offsetting weaknesses in its consumer business. The company achieved $180.4 million in annual revenue, a modest 2.9% increase from $175.3 million in 2023, while Q4 revenue jumped significantly by 28.8% to $48.3 million.

Despite revenue growth, overall profitability metrics showed slight deterioration. Annual EPS declined from $0.27 to $0.26, while operating income decreased to $8.2 million (4.5% of revenue) from $8.8 million (5.0%) in 2023. This decline stems primarily from the consumer division's dramatic profit contraction, where operating income plummeted from $4.7 million to just $0.1 million, largely due to increased operating expenses from store expansion.

The commercial division provides the bright spot, with revenue growing 8.7% to $49.9 million and operating income nearly doubling to $8.0 million. This segment's strong performance in ITAD (IT Asset Disposition) drove record adjusted EBITDA of $9.0 million.

Balance sheet improvements are noteworthy, with cash increasing to $20.6 million (up $2.7 million) and long-term debt decreasing to $13.5 million from $14.9 million, resulting in a record net cash position of $7.1 million. The company's $10.2 million in operating cash flow supports both growth initiatives and shareholder returns through its ongoing stock repurchase program.

The significant consumer division expansion (doubling retail locations to 12) represents a strategic bet on future growth, though the immediate profit impact has been negative. Investors should watch whether these new stores can mature into profitability while monitoring the continued strength of the commercial segment.

IRVING, TX / ACCESS Newswire / March 26, 2025 / Envela Corporation today announced its financial results for the fourth quarter and full year ending December 31, 2024. The Company posted annual revenue of $180.4 million, with annual earnings per diluted share of $0.26. For the fourth quarter, revenue totaled $48.3 million, and quarterly earnings per diluted share of $0.06.

Management Commentary

"Last year was a period of exciting growth and transformation for Envela, and we're proud to report strong performance across both our commercial and consumer segments," said John Loftus, CEO of Envela. "On the consumer side, we reached a significant milestone by nearly doubling our retail store locations and expanding into two new markets. This growth is a testament to our unwavering commitment to making luxury more accessible, sustainable, and authentic. Our stores are not just retail spaces, they are immersive environments where customers can experience firsthand the quality of our curated and authenticated pre-owned luxury goods, supported by our sales experts. This is just the beginning, and we're excited to continue pushing the boundaries of what our retail experience can be," added Loftus.

"On the commercial side, this has been a remarkable year for Envela, with record performance driven by our relentless focus on operational excellence, client satisfaction, and innovation. Our teams have executed with precision, fueling advancements across the industries we serve. This record year is not just a testament to our strategy, but a reflection of our teams' passionate dedication to making Envela a leader in every business vertical that we operate in. We are transforming Envela into a company that is not only delivering industry-leading results but is also positioned for long-term success in an ever-evolving marketplace."

"As we look ahead, we remain focused on creating value for our customers, employees, and shareholders, while continuing to build on the momentum we've established in both segments. We are confident that our ongoing commitment to innovation, customer engagement, and operational excellence will drive continued growth and value for our stakeholders," Loftus concluded.

"As Envela enters its 60th year, we are proud to celebrate six decades of growth, success, and the unwavering commitment of our employees, customers, and stakeholders," said John DeLuca, Envela's CFO. "Fiscal year 2024 was a landmark year for us, highlighted by a record net cash position of $7.1 million, reflecting our strong operating cash flow and disciplined approach to capital management. This solid financial foundation empowers us to continue driving our growth initiatives while maintaining financial flexibility."

"We are especially pleased with the performance of our commercial segment, where adjusted EBITDA reached an all-time high of $9.0 million, fueled by continued growth in our ITAD business through expanded asset sourcing and enhanced service relationships. On the consumer side, we successfully opened 5 new stores, bringing our total to 12 locations by year-end. Though these stores were operational for only the latter half of the year, this expansion contributed to a 6.4% year-over-year increase in gross margin, reaching $44.3 million."

"Looking ahead, we want to continue building on the momentum of eight consecutive years of net income. And we're excited to continue engaging with the investment community as we position Envela for long-term success," DeLuca concluded.

Fourth Quarter and Full Year 2024 Financial Highlights

		Three Months Ended December 31,
		2024				2023
Sales		$	48,321,888			$	37,481,931
Gross margin		$	11,141,407			$	9,750,299
Operating income		$	1,889,124			$	1,593,033
Net income		$	1,600,303			$	1,309,933
Diluted earnings per share		$	0.06			$	0.05
Adjusted EBITDA (non-GAAP measure)		$	2,320,287			$	1,926,859

		Year Ended December 31,
		2024				2023
Sales		$	180,376,229			$	175,263,826
Gross margin		$	44,315,787			$	41,656,530
Operating income		$	8,158,881			$	8,756,789
Net income		$	6,757,059			$	7,147,452
Diluted earnings per share		$	0.26			$	0.27
Adjusted EBITDA (non-GAAP measure)		$	9,710,655			$	10,118,853

Envela will report more complete earnings information within its Form 10-K.

Fourth Quarter and Full Year 2024 Consolidated Operating Highlights

• Full year revenue was $180.4 million, compared to $175.3 million in 2023. Fourth quarter revenue was $48.3, compared to $37.5 in the prior-year quarter.

• Full year 2024 gross profit margin was 24.6% of revenue, compared to 23.8% of revenue in 2023. Fourth quarter gross profit margin was 23.1% of revenue, compared to 26.0% of revenue in the prior-year quarter.

• Full year 2024 operating expenses were $36.2 million, compared to $32.9 million in 2023. Fourth quarter operating expenses were $9.3 million, compared to $8.2 million in the prior-year quarter.

• Full year 2024 operating income was $8.2 million, or 4.5% of revenue, compared to $8.8 million, or 5.0% of revenue in 2023. Fourth quarter operating income was $1.9 million, or 3.9% of revenue, compared to $1.6 million, or 4.3% of revenue in the prior-year quarter.

• Full year 2024 net income was $6.8 million, or $0.26 per basic and diluted share, compared to $7.1 million, or $0.27 per diluted share in 2023. Fourth quarter net income was $1.6 million, or $0.06 per basic and diluted share, compared to $1.3 million, or $0.05 per diluted share in the prior-year quarter.

• Full year 2024 adjusted EBITDA was $9.7 million, or 5.4% of revenue, compared to $10.1 million, or 5.8% of revenue in 2023. Fourth quarter adjusted EBITDA was $2.3 million, or 4.8% of revenue, compared to $1.9 million, or 5.1% of revenue in the prior-year quarter.

Fourth Quarter and Full Year Consumer Division Operating Highlights

• Consumer Division full year 2024 revenue was $130.5 million, compared to $129.4 million in 2023. Consumer Division fourth quarter revenue was $36.5 million, compared to $26.2 million in the prior-year quarter.

• Consumer Division full year 2024 gross margin was 12.2% of revenue, compared to 12.1% of revenue in 2023. Consumer Division fourth quarter gross margin was 12.0% of revenue, compared to 15.2% of revenue in the prior-year quarter.

• Consumer Division full year 2024 operating expenses were $15.7 million, compared to $11.0 million in 2023. Consumer Division fourth quarter operating expenses were $4.2 million, compared to $3.3 million in the prior-year quarter.

• Consumer Division full year 2024 operating income was $0.1 million, compared to $4.7 million in 2023. Consumer Division fourth quarter operating income was $0.2 million, compared to $0.7 million in the prior-year quarter.

• Consumer Division full year 2024 net income was $16.3 thousand, compared to $3.6 million in 2023. Consumer Division fourth quarter net income income was $0.1 million, compared to $0.6 million in the prior-year quarter.

Fourth Quarter and Full Year Commercial Division Operating Highlights

• Commercial Division full year 2024 revenue was $49.9 million, compared to $45.9 million in 2023. Commercial Division fourth quarter revenue was $11.8 million, compared to $11.3 million in the prior-year quarter.

• Commercial Division full year 2024 gross margin was 57.0% of revenue, compared to 56.7% of revenue in 2023. Commercial Division fourth quarter gross margin was 57.1% of revenue, compared to 51.1% of revenue in the prior-year quarter.

• Commercial Division full year 2024 operating expenses were $20.4 million, compared to $21.9 million in 2023. Commercial Division fourth quarter operating expenses were $5.1 million, compared to $4.9 million in the prior-year quarter.

• Commercial Division full year 2024 operating income was $8.0 million, compared to $4.1 million in 2023. Commercial Division fourth quarter operating income was $1.7 million, compared to $0.9 million in the prior-year quarter.

• Commercial Division full year 2024 net income was $6.7 million, compared to $3.5 million in 2023. Commercial Division fourth quarter net income income was $1.5 million, compared to $0.7 million in the prior-year quarter.

Balance Sheet, Cash Flow and Liquidity

• Cash and cash equivalents was $20.6 million on December 31, 2024, compared to $17.9 million on December 31, 2023.

• The Company's long-term debt was $13.5 million at December 31, 2024, compared to $14.9 million at December 31, 2023.

• Total shareholders' equity was$52.7 million at December 31, 2024, compared to $48.3 million on December 31, 2023.

• For the year ended December 31, 2024, consolidated operating cash flows totaled $10.2 million.

Share Repurchase Program

For the year ended December 31, 2024, the Company repurchased 916,597 shares of common stock at a cost of $2.4 million. For the quarter ended December 31, 2024, the Company repurchased 12,333 shares of common stock at a cost of $64.8 thousand. Since the beginning of the share repurchase program in March of 2023, Envela has spent more than $4.6 million to purchase 928,930 shares of common stock under the 1,000,000 share repurchase program authorized through March 31, 2026.

Non-GAAP Financial Measures

This press release contains non-United States ("U.S.") Generally Accepted Accounting Principles ("GAAP") financial measures. A "non-U.S. GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with U.S. GAAP in the statements of income, balance sheets or statements of cash flows of the Company.

Adjusted EBITDA is a key performance measure that management uses to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure as an overall assessment of our performance, to evaluate the effectiveness of our strategies and for planning purposes. Adjusted EBITDA may not be comparable to similarly titled metrics of other companies. Adjusted EBITDA is defined as the sum of net income (loss) of the Company, adjusted for additions (deductions) of interest expense, other (income) expense, income tax expense (benefit), and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be considered is an alternative to the presentation of net income or any other measure of financial performance calculated and presented in accordance with U.S. GAAP.

Net cash is defined as the difference between (i) cash and cash equivalents and (ii) the sum of debt obligations. We believe that presenting net cash is useful to investors as a measure of our liquidity and leverage profile, as cash and cash equivalents can be used, among other things, to repay indebtedness.

The following table provides a reconciliation of net income to adjusted EBITDA for the year ended December 31, 2024 and 2023:

		Year Ended December 31,
		2024												2023
		Consumer				Commercial				Consolidated				Consumer				Commercial				Consolidated
Adjusted EBITDA Reconciliation:
Net income		$	16,341			$	6,740,718			$	6,757,059			$	3,646,747			$	3,500,705			$	7,147,452
Addition (deduction):
Depreciation and amortization			524,510				1,027,264				1,551,774				325,227				1,036,837				1,362,064
Other income			(104,561	)			(933,121	)			(1,037,682	)			(83,806	)			(643,976	)			(727,782	)
Interest expense			228,792				218,591				447,383				192,393				270,808				463,201
Income tax expense			4,818				1,987,303				1,992,121				927,157				946,761				1,873,918
		$	669,900			$	9,040,755			$	9,710,655			$	5,007,718			$	5,111,135			$	10,118,853

The following table provides a reconciliation of net income to adjusted EBITDA for the three months ended December 31, 2024 and 2023:

		Three Months Ended December 31,
		2024												2023
		Consumer				Commercial				Consolidated				Consumer				Commercial				Consolidated
Adjusted EBITDA Reconciliation:
Net income		$	132,668			$	1,467,635			$	1,600,303			$	574,180			$	735,753			$	1,309,933
Addition (deduction):
Depreciation and amortization			167,659				263,504				431,163				71,842				261,984				333,826
Other income			(26,051	)			(207,336	)			(233,387	)			(13,491	)			(157,423	)			(170,914	)
Interest expense			57,207				54,042				111,249				14,935				99,348				114,283
Income tax expense			38,524				372,435				410,959				149,007				190,724				339,731
		$	370,007			$	1,950,280			$	2,320,287			$	796,473			$	1,130,386			$	1,926,859

The following table provides a reconciliation of our net cash position for the year ended December 31, 2024 and 2023:

		December 31,				December 31,
		2024				2023
Total cash		$	20,609,003			$	17,853,853
Less: debt obligations			(13,522,179	)			(14,933,491	)
		$	7,086,824			$	2,920,362

Envela periodically provides information for investors on its corporate website, envela.com. This includes press releases, quarterly investor presentations and other information about financial performance, reports filed or furnished with the Securities and Exchange Commission ("SEC"), information on corporate governance, and details related to its annual meeting of shareholders.

About Envela®

Envela Corporation (NYSE American:ELA) is a leading provider of re-commerce services, driving innovation at the forefront of the circular economy. The company operates through two primary business segments: Consumer and Commercial. The Consumer segment includes retail stores and online platforms offering premium brands and luxury hard assets, while the Commercial segment delivers tailored re-commerce solutions to clients, including many Fortune 500 companies.

As a sustainability-driven company, Envela extends product lifecycles to reduce resource consumption and carbon emissions. At Envela, we Reuse, Recycle, and Reimagine. We maximize product utility through reuse and recycling-reselling items when feasible to extend their life and recovering their value through end-of-life recycling, helping to transform them into raw materials for new products. Focused on our core strengths, we create exceptional value, leaving the world better than we found it-without trying to be everything to everyone. To learn more about our innovative approach, visit Envela.com.

Cautionary Statement Regarding Forward-Looking Information

This press release contains statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995's safe harbor provisions, including statements regarding future events and developments; potential expansions, purchases and acquisitions; potential future success of business lines and strategies; and management's expectations, beliefs, plans, estimates and projections relating to the future. Words such as "believes," "anticipates," "plans," "may," "intends," "will," "should," "expects" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management's then current views and assumptions and, as a result, are subject to certain risks and uncertainties, which could cause the Company's actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company's Annual Report on Form 10-K, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company's filings with the SEC. By making these statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release except as required by law.

Investor Relations Contact
ir@envelacorp.com
972-587-4030

SOURCE: Envela Corporation

View the original press release on ACCESS Newswire

FAQ

What were Envela's (ELA) key financial metrics for FY 2024?

Envela reported FY 2024 revenue of $180.4M, EPS of $0.26, gross profit margin of 24.6%, and adjusted EBITDA of $9.7M (5.4% of revenue).

How many retail stores did Envela (ELA) operate by the end of 2024?

Envela expanded to 12 total retail store locations by end of 2024, adding 5 new stores during the year.

What was Envela's (ELA) share repurchase activity in 2024?

Envela repurchased 916,597 shares for $2.4M in 2024, with total purchases of 928,930 shares for $4.6M since March 2023.

How did Envela's (ELA) Commercial Division perform in 2024?

Commercial Division achieved record performance with revenue of $49.9M, gross margin of 57.0%, and net income of $6.7M in 2024.

What is Envela's (ELA) cash position as of December 31, 2024?

Envela held $20.6M in cash and equivalents, with record net cash position of $7.1M as of December 31, 2024.