[8-K] EACO CORP Reports Material Event

Rhea-AI Filing Summary

EACO Corporation reported record second-quarter results for the quarter ended February 28, 2026, with net sales of $117.8 million, up 17.7% from $100.1 million a year earlier. Net income rose to $9.8 million, a 44.9% increase, and basic earnings per share grew to $2.01 from $1.39.

For the first six months of fiscal 2026, net sales reached $228.8 million and net income was $19.1 million. The company expanded its sales force to 482 people and 122 sales focus teams, and ended the period with $5.2 million in cash, up from $0.7 million in August 2025.

Insights

Equity research analyst

EACO posts record Q2 with strong profit growth and improving cash position.

EACO Corporation delivered record quarterly net sales of $117.8M, up 17.7% year over year, as net income climbed 44.9% to $9.8M. Operating income increased to $12.8M, reflecting solid margin performance despite higher selling, general and administrative expenses.

For the six months ended February 28, 2026, net sales reached $228.8M and net income was $19.1M. Cash, cash equivalents and restricted cash rose to $5.2M, supported by positive operating cash flow of $0.9M and net cash from investing activities of $3.8M.

The company is investing in growth, increasing sales personnel to 482 and sales focus teams to 122, while emphasizing its local presence model. Forward-looking statements highlight dependencies on hiring, opening additional offices, product pricing and availability, competitive offerings, tariffs, and geopolitical conflicts, which could influence future performance.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 net sales: $117.8M Q2 2026 net income: $9.8M Q2 2026 basic EPS: $2.01/share +5 more

8 metrics

Q2 2026 net sales $117.8M Three months ended February 28, 2026 vs. $100.1M in 2025

Q2 2026 net income $9.8M Three months ended February 28, 2026 vs. $6.8M in 2025

Q2 2026 basic EPS $2.01/share Three months ended February 28, 2026; prior-year $1.39

Six-month net sales $228.8M Six months ended February 28, 2026 vs. $194.1M in 2025

Six-month net income $19.1M Six months ended February 28, 2026 vs. $13.7M in 2025

Cash and equivalents $5.2M Cash, cash equivalents and restricted cash at February 28, 2026

Total assets $239.1M Total assets at February 28, 2026

Shareholders’ equity $175.0M Total shareholders’ equity at February 28, 2026

Key Terms

forward-looking statements, marketable securities, trading, operating lease right-of-use assets, Basic earnings per common share, +2 more

6 terms

forward-looking statements regulatory

"This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

marketable securities, trading financial

"Marketable securities, trading | | | 24,929 | | | | 30,375"

operating lease right-of-use assets financial

"Operating lease right-of-use assets | | | 8,574 | | | | 6,814"

An operating lease right-of-use (ROU) asset is an accounting entry that shows the value of a leased item you have the legal right to use—like a building, vehicle, or equipment—recorded on a company’s balance sheet along with the corresponding lease obligation. Investors care because it adds to reported assets and liabilities, changing measures like leverage and return on assets much like bringing a long-term rental onto the company’s financial snapshot, which can affect credit terms and valuation.

Basic earnings per common share financial

"Basic earnings per common share | | $ | 2.01 | | | $ | 1.39"

Basic earnings per common share measures how much of a company’s profit is attributable to each ordinary share by dividing net income available to common shareholders by the weighted average number of shares outstanding over the period. Investors use it like a per-share profit score—think of a pie split among current slice-holders—to compare profitability across companies or time; it does not count potential extra shares from options or convertibles.

Condensed Consolidated Statements of Cash Flows financial

"EACO Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands)"

Accumulated other comprehensive income financial

"Accumulated other comprehensive income | | | 132 | | | | 74"

Accumulated other comprehensive income is a running total on a company’s balance sheet that records certain gains and losses not included in reported profit, such as unrealized gains or losses on some investments, currency translation differences, and pension plan adjustments. Think of it like items in a shopping cart you haven’t paid for yet: it doesn’t affect current profit but changes the company’s overall equity and signals potential future swings in value that investors should watch.

Earnings Snapshot

Net sales: $117.8M

Quarter ended February 28, 2026

Net sales $117.8M +17.7% YoY

Net income $9.8M +44.9% YoY

Basic EPS $2.01 +44.6% YoY

Understanding 8-K Material Events →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): April 2, 2026

EACO CORPORATION

(Exact name of registrant as specified in its charter)

Florida		000-14311		59-2597349
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

5065 East Hunter Avenue

Anaheim, California 92807

(Address of Principal Executive Offices)

(714) 876-2490

(Registrant’s Telephone No.) 

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On April 2, 2026, EACO Corporation, a Florida corporation, issued a press release announcing our second quarter of fiscal year 2026 financial results and other information. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

The information in Item 2.02 of this Current Report, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, regardless of any general incorporation language contained in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit
No.		Description
99.1		Press release dated April 2, 2026 reporting the financial results of EACO Corporation for the second quarter February 28, 2026.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 2, 2026	EACO CORPORATION
	By:	/S/ GLEN CEILEY
		Glen Ceiley, Chief Executive Officer

Exhibit 99.1

Michael Narikawa
EACO Corporation
(714) 876-2490	April 2, 2026

EACO CORPORATION REPORTS RECORD 2^nd QUARTER NET SALES AND

ALL-TIME RECORD QUARTERLY NET INCOME

ANAHEIM, CALIFORNIA April 2, 2026 – EACO Corporation (OTCID:EACO) announced the results for its quarter ended February 28, 2026.

Net sales, net income and earnings per share were as follows for the quarter ended February 28, 2026 (dollars in thousands, except per share information):

		Three Months Ended February 28,								%
		2026				2025				Change
		(unaudited)				(unaudited)
Net sales		$	117,836			$	100,132				17.7	%
Net income		$	9,797			$	6,763				44.9	%
Basic earnings per common share		$	2.01			$	1.39				44.6	%

The Company had 482 sales personnel and sales management at February 28, 2026, an increase of 42 or 9.5% from the prior year quarter. The Company’s sales force is divided into sales focus teams (SFT’s). The Company had 122 SFT’s as of February 28, 2026, an increase of 8 from the prior year quarter. 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.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955, as amended. These forward-looking statements include, without limitation, statements related to our headcount expansion, growth in market share, and other statement that is not historical information. These forward-looking statements are based on our current expectations and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. The potential risks and uncertainties include, but are not limited to, our ability to hire and retain additional qualified employees, our ability to open additional sales offices, and to gain market acceptance for our products, the pricing and availability of our products, the success of our sales and marketing programs, the impact of products offered by our competitors from time to time, and as well as uncertainty pertaining to international tariffs and the conflicts within Southwest Asia. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties or risks identified in EACO’s most recent Form 10-K and all subsequent Form 10-Q reports filed by us with the SEC. The forward-looking statements included in this release speak only as of the date hereof, and EACO does not undertake any obligation to update these forward-looking statements to reflect subsequent events or circumstances.

EACO Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share information)

(unaudited)

		February 28,				August 31,
			2026				2025*
ASSETS
Current Assets:
Cash and cash equivalents		$	5,140			$	728
Restricted cash			10				10
Trade accounts receivable, net			64,692				65,863
Inventory, net			91,327				83,980
Marketable securities, trading			24,929				30,375
Prepaid expenses and other current assets			6,060				5,009
Total current assets			192,158				185,965
Non-current Assets:
Property, equipment and leasehold improvements, net			35,466				34,670
Operating lease right-of-use assets			8,574				6,814
Other assets, net			2,859				2,704
Total assets		$	239,057			$	230,153
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Trade accounts payable		$	37,092			$	33,179
Accrued expenses and other current liabilities			13,772				29,762
Current portion of long-term debt			137				135
Current portion of operating lease liabilities			3,289				2,843
Total current liabilities			54,291				65,919
Non-current Liabilities:
Long-term debt			4,010				4,079
Operating lease liabilities			5,769				4,305
Total liabilities			64,070				74,303
Commitments and Contingencies Note 8
Shareholders’ Equity:
Convertible preferred stock, $0.01 par value per share; 10,000,000 shares authorized; 36,000 shares outstanding (liquidation value $900)			1				1
Common stock, $0.01 par value per share; 8,000,000 shares authorized; 4,861,590 shares outstanding			49				49
Additional paid-in capital			12,378				12,378
Accumulated other comprehensive income			132				74
Retained earnings			162,427				143,348
Total shareholders’ equity			174,987				155,850
Total liabilities and shareholders’ equity		$	239,057			$	230,153

* Derived from the Company’s audited financial statements included in its Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Income

(in thousands, except for share and per share information)

(unaudited)

		Three Months Ended February 28,								Six Months Ended February 28,
		2026				2025				2026				2025
Net sales		$	117,836			$	100,132			$	228,789			$	194,052
Cost of sales			81,609				70,624				158,207				136,763
Gross margin			36,227				29,508				70,582				57,289
Operating expenses:
Selling, general and administrative expenses			23,439				20,414				45,285				39,352
Income from operations			12,788				9,094				25,297				17,937
Other income (expense):
Net gain (loss) on trading securities			416				30				459				484
Interest and other (expense)			(46	)			(49	)			(83	)			(97	)
Other (expense) income, net			370				(19	)			376				387
Income before income taxes			13,158				9,075				25,673				18,324
Provision for income taxes			3,361				2,312				6,556				4,673
Net income			9,797				6,763				19,117				13,651
Cumulative preferred stock dividend			(19	)			(19	)			(38	)			(38	)
Net income attributable to common shareholders		$	9,778			$	6,744			$	19,079			$	13,613
Basic earnings per share:		$	2.01			$	1.39			$	3.92			$	2.80
Basic weighted average common shares outstanding			4,861,590				4,861,590				4,861,590				4,861,590
Diluted earnings per share:		$	2.00			$	1.38			$	3.90			$	2.79
Diluted weighted average common shares outstanding			4,901,590				4,901,590				4,901,590				4,901,590

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

		Six Months Ended
		February 28,
		2026				2025
Operating activities:
Net income		$	19,117			$	13,651
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			870				858
Bad debt expense			261				144
Deferred tax provision			(27	)			(28	)
Net unrealized loss (gain) on trading securities			18				(100	)
Increase (decrease) in cash from changes in							–
Trade accounts receivable			910				(1,615	)
Inventory			(7,347	)			(9,775	)
Prepaid expenses and other assets			(1,179	)			(778	)
Operating lease right-of-use assets			(1,760	)			290
Trade accounts payable			4,107				5,881
Accrued expenses and other current liabilities			(15,990	)			(9,365	)
Right of use liabilities			1,910				(226	)
Net cash (used in) provided by operating activities			890				(1,063	)
Investing activities:
Additions to property, equipment, and leasehold improvements			(1,666	)			(326	)
Sale (purchase) of marketable securities, trading			5,428				(233	)
Net cash used in investing activities			3,762				(559	)
Financing activities:
Borrowing on revolving credit facility
Payments on long-term debt			(66	)			(63	)
Preferred stock dividend			(38	)			(38	)
Bank overdraft			(194	)			1,518
Net cash provided by financing activities			(298	)			1,417
Effect of foreign currency exchange rate changes on cash and cash equivalents			(58	)			(139	)
Net (decrease) in cash, cash equivalents, and restricted cash			4,412				(344	)
Cash, cash equivalents, and restricted cash - beginning of period			738				853
Cash, cash equivalents, and restricted cash - end of period		$	5,150			$	509
Supplemental disclosures of cash flow information:
Cash paid for interest		$	83			$	97
Cash paid for income taxes		$	11,302			$	9,213

FAQ

How did EACO (EACO) perform in its fiscal 2026 second quarter?

EACO reported record second-quarter net sales of $117.8 million, up 17.7% year over year. Net income increased to $9.8 million, a 44.9% rise, and basic earnings per share grew to $2.01 from $1.39.

What were EACO (EACO) earnings per share for the latest quarter?

For the quarter ended February 28, 2026, EACO’s basic earnings per share were $2.01, up from $1.39 a year earlier. Diluted earnings per share were $2.00, compared with $1.38 in the prior-year quarter, reflecting strong profit growth.

How did EACO’s year-to-date fiscal 2026 results compare to last year?

For the six months ended February 28, 2026, EACO generated net sales of $228.8 million versus $194.1 million last year. Net income for the same period increased to $19.1 million from $13.7 million, and basic EPS rose to $3.92 from $2.80.

What changes did EACO (EACO) report in its sales force and structure?

As of February 28, 2026, EACO had 482 sales personnel and sales management, an increase of 42 or 9.5% from the prior-year quarter. The company operated 122 sales focus teams, up 8 from a year earlier, supporting its local presence business model.

What is EACO’s cash position and balance sheet strength after Q2 2026?

EACO ended February 28, 2026 with $5.2 million in cash, cash equivalents and restricted cash, up from $0.7 million at August 31, 2025. Total assets were $239.1 million and shareholders’ equity was $175.0 million, indicating a solid equity base.

What risks and uncertainties does EACO highlight in its Q2 2026 update?

EACO notes risks related to hiring and retaining employees, opening additional sales offices, product pricing and availability, competitive offerings, tariffs, and conflicts within Southwest Asia. These factors could cause actual results to differ materially from forward-looking statements in the release.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EXHIBIT 99.1 85.7 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 2.9 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 33.4 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 21.8 KB