Despite a 16.3% revenue growth in 2026Q1, the company continues to struggle with structural profitability, evidenced by an operating margin of -38.2% and SG&A expenses that consistently exceed gross profit.
| Sales/Revenue | 2.78M | 2.67M | 2.43M |
| Revenue Growth % | - | 9.89% | - |
| Cost of Goods Sold | 2.57M | 2.65M | 2.25M |
| COGS % of Revenue | - | 99.32% | 92.94% |
| Gross Profit | 207.98K | 18.21K | 171.26K |
| Gross Margin % | 7.48% | 0.68% | 7.06% |
| Gross Profit Growth % | - | -89.37% | - |
| Operating Expenses | 2.7M | 2.52M | 360.98K |
| OpEx % of Revenue | - | 94.6% | 14.88% |
| Selling, General & Admin | 1.78M | 1.6M | 360.98K |
| SG&A % of Revenue | - | 59.99% | 14.88% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 922.77K | 922.77K | 0 |
| Operating Income | -2.5M | -2.5M | -189.72K |
| Operating Margin % | -89.78% | -93.92% | -7.82% |
| Operating Income Growth % | - | -1219.76% | - |
| EBITDA | -2.29M | -2.25M | 41.23K |
| EBITDA Margin % | -82.27% | -84.38% | 1.7% |
| EBITDA Growth % | - | -5556.47% | - |
| D&A (Non-Cash Add-back) | 208.67K | 254.31K | 230.95K |
| EBIT | -1.9M | -2.1M | -180.79K |
| Net Interest Income | 196.49K | -191.47K | -29.95K |
| Interest Income | 198.74K | 0 | 0 |
| Interest Expense | 2.25K | 191.47K | 29.95K |
| Other Income/Expense | 406.77K | 212.76K | -21.02K |
| Pretax Income | -2.09M | -2.29M | -210.74K |
| Pretax Margin % | -75.14% | -85.94% | -8.69% |
| Income Tax | 2.8K | -105.1K | -2.35K |
| Effective Tax Rate % | -0.13% | 4.59% | 1.12% |
| Net Income | -2.09M | -2.19M | -208.39K |
| Net Margin % | -75.24% | -82% | -8.59% |
| Net Income Growth % | - | -948.99% | - |
| Net Income (Continuing) | -2.09M | -2.19M | -208.39K |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | -0.13 | -0.15 | -0.01 |
| EPS Growth % | - | -1100% | - |
| EPS (Basic) | - | -0.15 | -0.01 |
| Diluted Shares Outstanding | 16.72M | 15M | 16.72M |
| Basic Shares Outstanding | 16.72M | 15M | 16.72M |
| Dividend Payout Ratio | - | - | - |
Unsustainable Operating Loss Structure
According to recent quarterly filings, ETS achieved a 16.3% revenue increase in 2026Q1, signaling that the company is successfully capturing volume within its California-centric last-mile delivery niche despite the broader industry headwinds currently impacting larger regional logistics competitors like Heartland Express and Marten Transport.
The revenue expansion appears driven by transactional volume growth rather than pricing power, given the persistent inability to translate top-line gains into gross profit. Investors should monitor whether this growth is sustainable or if it represents a temporary capture of market share that fails to cover the underlying cost of service.
As reported in financial statements, the company's gross margin profile remains highly volatile, fluctuating from a low of -4.7% in 2025Q1 to a peak of 19.5% in 2026Q1, which underscores the extreme sensitivity of the business model to variable input costs like fuel and labor.
The lack of consistent gross margin expansion suggests that ETS lacks the pricing power necessary to offset the high variable costs inherent in its California operations. This volatility implies that the company is currently unable to pass through inflationary pressures to its customer base effectively.
Based on the most recent income statement data, ETS continues to exhibit significant negative operating leverage, with SG&A expenses frequently exceeding gross profit, resulting in an operating margin of -38.2% as of 2026Q1 despite the recent uptick in quarterly revenue.
The misalignment between fixed administrative overhead and the current revenue scale suggests that the company is far from achieving the operational density required for profitability. Without a substantial increase in delivery volume or a radical reduction in fixed costs, the current operating structure appears fundamentally unsustainable.
Data from the latest quarterly reports indicates that the company's persistent net losses, including a $110.1K loss in 2026Q1, raise significant questions regarding the long-term viability of the current business model without a clear path to achieving positive cash flow from operations.
Short-sellers would likely focus on the disconnect between the company's revenue growth and its inability to generate positive net income, which suggests that the current growth strategy may be effectively subsidizing customer acquisition at the expense of shareholder value. The reliance on existing cash reserves to fund ongoing operating deficits warrants further investigation into the company's future financing requirements.
Quick answers to the most common questions about buying ETS stock.
For fiscal year 2025, Elite Express Holding Inc. (ETS) reported total revenue of $2.7M. This represents a 9.9% increase compared to $2.4M in 2023.
Elite Express Holding Inc. (ETS) reported a net loss of $2.2M for the fiscal year ending 2025.
Elite Express Holding Inc. (ETS) reported an operating income of $-2.5M, resulting in an operating profit margin of -93.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Elite Express Holding Inc. (ETS) generated $0.0M in gross profit for the year, representing a gross profit margin of 0.7%. This demonstrates the company's core pricing power and production efficiency.