Executive Summary

Record quarterly net sales of $122.47M (+26.9% YoY) and record Q4 net income of $9.13M (+40.6% YoY); diluted EPS $1.86 .
Sequential revenue growth of approximately +9.9% vs Q3 ($111.41M → $122.47M), but diluted EPS declined from $1.94 to $1.86 as EBIT margin compressed on higher SG&A spend .
Management reiterated confidence in market share gains via its local presence model and plans to continue expanding headcount and sales focus teams (SFTs) in FY26, despite a sequential decline in Q4 sales headcount to 418 .
No formal guidance and no earnings call transcript filed; Wall Street consensus (S&P Global) not available, limiting beat/miss analysis. S&P Global consensus data was unavailable for Q4 2025, Q3 2025, and Q2 2025.

What Went Well and What Went Wrong

What Went Well
- Strong top-line momentum: Q4 revenue $122.47M (+26.9% YoY), sustaining multi-quarter sequential growth (Q1→Q2→Q3→Q4) .
- Profitability up YoY: Q4 net income $9.13M (+40.6% YoY); net margin ~7.5% vs ~6.7% in Q4 last year .
- Strategy reaffirmed: “Management anticipates continued growth in both our headcount and SFT’s in fiscal year 2026. The Company believes it continues to gain market share through its local presence business model.” .
What Went Wrong
- Sequential margin compression: EBIT margin fell from ~11.2% in Q3 to ~9.4% in Q4 as SG&A rose from $21.63M to $25.88M; diluted EPS declined from $1.94 to $1.86 .
- Sales headcount decreased sequentially to 418 from 435 (Q3) and 445 (Q2), potentially tightening capacity growth near term .
- No formal guidance and no call transcript; limited visibility into FY26 cadence, demand drivers, or investment pacing beyond high-level commentary .

Metric	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD Millions)	$96.52	$93.92	$100.13	$111.41	$122.47
Diluted EPS ($)	$1.32	$1.41	$1.38	$1.94	$1.86
Gross Profit ($M)	$29.69	$27.78	$29.51	$34.07	$37.34
Gross Margin (%)	30.8%	29.6%	29.5%	30.6%	30.5%
EBIT ($M)	$9.84	$8.84	$9.09	$12.45	$11.46
EBIT Margin (%)	10.2%	9.4%	9.1%	11.2%	9.4%
Net Income ($M)	$6.49	$6.89	$6.76	$9.52	$9.13
Net Income Margin (%)	6.7%	7.3%	6.8%	8.6%	7.5%

Notes: Gross margin %, EBIT margin %, and net income margin % are calculated from reported figures (citations reference the source figures).

Estimate comparison: S&P Global Wall Street consensus for revenue and EPS was unavailable for Q4 2025, Q3 2025, and Q2 2025, so no beat/miss determination can be made.
Sequential highlights: Revenue grew ~+9.9% Q/Q (Q3→Q4), while EBIT fell from $12.45M to $11.46M on higher SG&A; diluted EPS declined from $1.94 to $1.86 .

Segment breakdown: No segment disclosures were provided in the press release/8-K; results are presented on a consolidated basis .

KPI	Q1 2025	Q2 2025	Q3 2025	Q4 2025
Sales employees (period-end)	426	445	435	418
Sales Focus Teams (SFTs)	112	114	114	116

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY26	Not provided	Not provided	N/A
Gross Margin	FY26	Not provided	Not provided	N/A
EBIT/Operating Income	FY26	Not provided	Not provided	N/A
EPS	FY26	Not provided	Not provided	N/A
Tax Rate	FY26	Not provided	Not provided	N/A
Segment-specific	FY26	Not provided	Not provided	N/A
Capital Allocation/Dividends	FY26	Not provided	Not provided	N/A

Management provided no quantitative guidance and no changes to prior targets were disclosed in the Q4 release/8-K .

(Company did not file an earnings call transcript; themes synthesized from press releases.)

Topic	Previous Mentions (Q-2, Q-1)	Current Period (Q4 2025)	Trend
Headcount & SFT expansion	Q2: “Management anticipates continued growth in both our headcount and SFT’s in fiscal year 2025.” Q3 reiterated growth and local presence model .	Plans to continue growth of headcount and SFTs in FY26; period-end headcount was 418 and SFTs 116 .	Messaging consistent; sequential headcount declined despite growth plans.
Market share/local presence	Emphasis on market share gains via local presence model in Q2 and Q3 .	Reaffirmed belief in market share gains via local presence .	Consistent strategy across quarters.
Tariffs/macro risk	Forward-looking statements flagged tariff increases/macro uncertainties in Q2/Q3 .	Continued caution on tariffs and competitive pricing dynamics .	Ongoing risk factor in disclosures.
Non-operating items (trading securities)	Q2: +$0.03M; Q3: +$0.28M net gain .	Q4: +$0.51M net gain; modestly accretive to pre-tax income .	Small, variable tailwind.
Operating expense trajectory	SG&A was $17.60M (Q2 six-month context) and $21.63M (Q3) .	SG&A rose to $25.88M in Q4, pressuring EBIT margin .	Investment/scale costs rising into year-end.

“Management anticipates continued growth in both our headcount and SFT’s in fiscal year 2026. The Company believes it continues to gain market share through its local presence business model.” (Q4 press release) .
The company continues to frame growth as share capture supported by a local presence, with headcount/SFT footprint as a core execution lever across the year .
Risk framing remained stable, calling out hiring/retention, pricing/availability, competitive offerings, and tariff increases as potential headwinds .

No earnings call transcript was found or furnished for Q4 2025; therefore, no Q&A themes or clarifications are available from a call [searched; none found].

S&P Global Wall Street consensus for revenue and EPS was not available for EACO for Q4 2025 (and for Q3/Q2 2025), so a beat/miss assessment versus consensus cannot be made at this time.
Implication: In the absence of consensus, investors should focus on sequential and YoY trends, margin trajectory, and the company’s qualitative outlook.

Demand remained robust: Q4 revenue reached $122.47M (+26.9% YoY; +9.9% Q/Q), marking four straight quarterly increases and a record quarter .
Profitability strong YoY but softer sequentially: Q4 diluted EPS $1.86 vs $1.94 in Q3 as SG&A stepped up to $25.88M, compressing EBIT margin to ~9.4% from ~11.2% .
Consistent strategy: Management continues to emphasize market share gains via local presence and aims to expand headcount/SFTs in FY26, supporting medium-term growth .
Execution watchlist: Sales headcount fell to 418 from 435 (Q3) and 445 (Q2); monitor whether staffing reaccelerates to support growth without further margin pressure .
Risk backdrop unchanged: Tariffs, pricing/availability, and competitive offerings remain disclosed risks; these factors may influence near-term margin and revenue cadence .
Without guidance or consensus estimates, trading setups likely center on continued top-line momentum vs. operating expense discipline; sequential margin stabilization will be a key catalyst ahead.

Sources: Q4/FY press release and 8‑K with attached financials , plus prior quarterly press releases for Q1–Q3 FY25 .