Endeavour Silver Corp. (EXK) Income Statement

The revenue trajectory shows a dramatic inflection starting in 2025Q3, with sequential growth from $135.8M to $174.3M and then to $209.7M and $214.0M in 2026Q1 and Q2. This suggests a strong price-driven expansion, as volume growth alone would unlikely produce such a steep climb. The sustainability of this growth hinges on silver price levels, which have been favorable, but investors should monitor for any reversal.

The wide fluctuation in gross margin—from single digits to mid-40s—underscores the company's exposure to commodity price swings and cost variability. The 2026Q1 margin of 44.5% appears exceptional, possibly due to lower costs or higher by-product credits, but the subsequent quarter's 34.0% suggests a reversion to a more sustainable level. Compared to peers like First Majestic (34.8%) and Pan American (37.7%), EXK's margins are competitive but less stable.

The operating margin improved from negative territory to nearly 40% in 2026Q1, indicating that SG&A and other fixed costs are not scaling proportionally with revenue. However, the negative SG&A in 2026Q2 (-$1.5M) is unusual and may reflect a one-time adjustment or reversal, which warrants scrutiny. The leverage works both ways, as seen in the losses during 2025Q2 and Q3 when revenue was lower.

The cost structure is heavily weighted toward COGS, which is typical for a mining company, but the extreme variability suggests changing production levels, ore grades, or input costs. The spike in COGS in 2025Q3 (98.2% of revenue) nearly eliminated gross profit, while the subsequent quarters saw a decline to more manageable levels. This volatility underscores the importance of cost control and hedging strategies.