Everforth Q2 2026: Revenue Holds at $1B, But Net Income Halves as Margins Compress and Acquisition Costs Bite
EFOR sits 63% above its 52-week low of $16.9.
Summary
Everforth's Q2 2026 10-Q reveals flat revenue of $1.007B but a sharp drop in net income to $14.2M, driven by margin compression, higher interest costs, and acquisition-related expenses. The balance sheet reflects the $290M Quinnox acquisition, with long-term debt rising to $1.44B.
Key Events · Earnings and Guidance · EFOR
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Revenue Flat, Net Income Halved
Q2 2026 revenue came in at $1.007B, down 1.3% year-over-year. Net income fell to $14.2M from $29.3M, as gross margin compressed 40 bps to 28.3% and SG&A rose due to acquisition costs.
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Quinnox Acquisition Closed
In March 2026, the company acquired Quinnox Inc. for $290M cash, adding $173.6M in customer relationship intangibles and $137.4M in goodwill. The deal contributed to a $269M increase in long-term debt.
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Debt Load Increases
Long-term debt rose to $1.44B from $1.17B at year-end 2025, primarily to fund the Quinnox acquisition. Interest expense increased to $20.4M in Q2 from $18.2M a year ago.
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Credit Facility Amended Post-Quarter
On July 7, 2026, the revolving credit facility was upsized from $500M to $600M and maturity extended to 2031. Term Loan A was repaid. Leverage covenant tightened to 3.50x by mid-2027.
Analysis · EFOR · Trade & Services
Everforth's Q2 2026 results paint a picture of a company in transition. While revenue held essentially flat year-over-year at $1.007 billion, net income tumbled by more than half to $14.2 million. The squeeze comes from multiple angles: gross margin compression in the Commercial segment, higher interest expense tied to acquisition debt, and elevated integration costs. The $290 million Quinnox acquisition added scale but also leverage—long-term debt now stands at $1.44 billion. A subsequent credit facility amendment offers some breathing room, yet near-term earnings power is clearly diminished. The stock repurchase program continues, signaling management confidence, though the cash outflow adds to balance sheet strain.
At the time of this filing, EFOR was trading at $27.56 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $16.90 to $54.94. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.