Envela's Sales Growth Cools After a Metals-Driven Quarter
Net income was $4.17 million, or 7.4% of sales, as gold and silver cooled from January records.
Envela Corporation (ELA), a holding company for recommerce and recycling businesses, reported sales of $56.77 million for the three months ended June 30, 2026, up 3.5% from a year earlier. That pace marked a sharp break from the first quarter of Fiscal 2026, when consolidated sales were $98.38 million, up 103.9% from a year earlier, as exceptionally elevated precious-metals prices drove unusually high customer selling activity and wholesale volumes.
Precious-metals prices reached record levels in late January 2026 and declined meaningfully during the second quarter of Fiscal 2026, while remaining above average levels for the comparable prior-year period. As gold and silver prices fell from those peaks, customer selling activity moderated toward more typical levels. Results were supported by stronger buying volumes at retail stores and more favorable pricing than in the same period of Fiscal 2025.
Consumer sales were $44.73 million, up 3.6% from a year earlier. The change was primarily attributable to the wholesale vertical. Consumer gross margin was $5.52 million, or 12.4% of consumer sales, versus 10.8% a year earlier. Cost of goods sold as a percentage of consumer sales was 87.6%, versus 89.2% a year earlier, reflecting a favorable shift in product mix. Consumer operating income was $1.84 million, versus $0.73 million a year earlier.
Commercial sales were $12.05 million, up 2.9% from a year earlier. The change was primarily attributable to continued demand for re-marketed technology assets and components. Pricing in certain ITAD categories remained higher than a year earlier, although those pricing benefits moderated from the first quarter of Fiscal 2026. Results were further supported by the trade-in vertical and harvested component sales in electronic waste. Commercial gross margin was $7.85 million, or 65.2% of commercial sales, versus 66.1% a year earlier. The margin-rate decline reflected lower margins on certain personal technology assets in asset-disposition verticals and harvested components in electronic waste. Commercial operating income was $3.27 million, versus $2.53 million a year earlier.
Consolidated gross margin was $13.38 million, or 23.6% of sales, versus 22.6% a year earlier. Selling, general and administrative expense was $7.78 million, or 13.7% of sales, versus 15.8% a year earlier. Consumer SG&A was $3.45 million, or 7.7% of consumer sales, reflecting lower human-capital costs and the timing and nature of certain marketing programs. Commercial SG&A was $4.32 million, or 35.9% of commercial sales, versus 42.2% a year earlier. That decline reflected variable-cost production expenses, including human-capital costs from lower electronic-scrap processing volumes, and the incremental impact of the Arizona ITAD facility closure, which did not occur until the latter part of the second quarter of Fiscal 2025.
Operating income was $5.10 million, or 9.0% of sales, versus 5.9% a year earlier. Net income was $4.17 million, or 7.4% of sales, versus 5.0% a year earlier. Consumer net income was $1.51 million, versus $0.64 million a year earlier. Commercial net income was $2.66 million, versus $2.11 million a year earlier.
The component-cost environment supporting demand for re-marketed technology has led certain enterprises to extend hardware replacement cycles, which may constrain near-term inbound supply of retired technology assets. During the six months ended June 30, 2026, the company collected outstanding accounts receivable from a refining customer as of December 31, 2025, reducing the working-capital impact of delayed refiner payments.