Equinox Gold Corp. (EQX) Income Statement

The revenue trajectory has shifted dramatically from the sub-$300M quarters of early 2024 to consistently above $700M in 2026, with the most recent two quarters showing triple-digit or near-triple-digit growth. This acceleration is not merely a gold price effect; it reflects a step-change in production volumes, likely driven by the Greenstone mine achieving commercial production. The durability of this growth will depend on sustaining these volumes and further ramp-up, but the current trend suggests a new revenue baseline.

The gross margin improvement is stark: from single-digit percentages in early 2024 to over 50% in 2026Q1, with 2026Q2 at 39.2%. This suggests that the Greenstone mine, with its lower AISC, is now a significant contributor, diluting the impact of higher-cost legacy operations. However, the 2026Q2 margin dip from 50.9% to 39.2% warrants attention; it may reflect temporary cost pressures or a change in sales mix. Investors should monitor whether this margin level is sustainable or if it reverts to the mid-30s range.

The operating leverage is evident: while revenue grew 103% in 2026Q1, operating income grew by a multiple of that, reflecting the high fixed-cost base of mining operations. SG&A expenses have remained relatively flat around $20M per quarter, even as revenue tripled, indicating disciplined overhead control. This leverage is a double-edged sword; if gold prices or production volumes decline, the same fixed costs will compress margins rapidly. The 2026Q2 operating margin of 32.1% is still robust but shows some normalization.

The cost structure is dominated by COGS, which has historically been high, but the recent decline in COGS ratio suggests that Greenstone's lower-cost production is now a larger part of the mix. SG&A has been remarkably stable, averaging around $20M per quarter, indicating tight overhead management. However, the 2026Q2 COGS ratio increased to 60.8% from 49.1% in Q1, which could signal rising input costs or a temporary operational issue. Monitoring the AISC per ounce at Greenstone will be key to assessing whether this cost trend is sustainable.

The most significant inflection in the income statement history is the period from 2025Q1 to 2026Q1, where operating income swung from near breakeven to record levels. This coincides with the Greenstone mine achieving commercial production, which has transformed the company's cost profile and revenue base. The lasting impact is a higher revenue baseline and improved margins, but the challenge will be to maintain this performance as the mine matures and other assets age. The 2026Q2 results suggest some normalization, but the overall trajectory remains positive.