Earnings analysis · 10-Q
DIT earnings analysis
Filed April 20, 2026 · Our reading of the company's report
The latest report
Amcon reported Q2 revenue of $715,652,441 (up vs Q2 2025 $619,503,087) but posted an operating loss of $384,720 and GAAP diluted EPS of -$2.34. Gross profit was $43,489,199 while cash from operations for the six months…
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Amcon reported Q2 revenue of $715,652,441 (up vs Q2 2025 $619,503,087) but posted an operating loss of $384,720 and GAAP diluted EPS of -$2.34. Gross profit was $43,489,199 while cash from operations for the six months improved to $2,006,373 despite $9,328,436 of property and equipment purchases (six months).
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $-2.34
What stood out
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Revenue increased year-over-year
Total sales were $715,652,441 in Q2 2026 versus $619,503,087 in Q2 2025 (increase of $96,149,354).
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Gross profit roughly flat but margin compressed
Gross profit was $43,489,199 (Q2 2026) vs $43,027,885 (Q2 2025), however gross margin compressed to ~6.08% (43,489,199 / 715,652,441) from ~6.95% in Q2 2025 (43,027,885 / 619,503,087).
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Operating loss in the quarter
Operating income (loss) was $(384,720) in Q2 2026 versus operating income of $461,905 in Q2 2025, showing operating profitability reversed to a loss.
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GAAP EPS declined further into loss
Diluted earnings (loss) per share was $(2.34) in Q2 2026 compared with $(1.72) in Q2 2025 (net loss available to common shareholders $ (2,174,481) vs $ (1,589,960)).
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Operating cash flow turned positive (six months)
Net cash flows from operating activities for the six months ended March 31, 2026 were $2,006,373 versus $(5,449,633) for the six months ended March 31, 2025.
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Investing / expansion activity
During Q2 2026 the Company purchased a distribution facility in Ohio for $8.0 million and recorded purchases of property and equipment of $9,328,436 for the six months ended March 31, 2026.
What to watch
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Margin deterioration
Gross margin fell to ~6.08% in Q2 2026 (43,489,199 / 715,652,441) from ~6.95% in Q2 2025 (43,027,885 / 619,503,087), and the company reported an operating loss of $(384,720) in Q2 2026.
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Worsening EPS and net loss
GAAP diluted EPS declined to $(2.34) in Q2 2026 (net loss $2,174,481) from $(1.72) in Q2 2025 (net loss $1,589,960), indicating increased loss per share.
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Negative free cash flow (six months)
For the six months ended March 31, 2026, operating cash flow was $2,006,373 but purchases of property and equipment were $9,328,436, implying free cash flow of approximately $(7,322,063) (2,006,373 - 9,328,436).
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Reliance on credit facilities / leverage
Combined Facilities have borrowing capacity of $305.0 million and a defined credit limit of $234.9 million at March 2026, of which $137,063,059 was outstanding leaving $97.8 million available — the Company had peak borrowings of $193.2 million for the six months ended March 31, 2026.
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Segment disclosure limited
MD&A describes two business segments (Wholesale and Retail) and states locations and operations, but the filing does not disclose a segment revenue breakdown or segment profit metrics (no segment revenue numbers presented).
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Mandatorily redeemable non-controlling interest and related expense
Change in fair value of mandatorily redeemable non-controlling interest was $115,599 in Q2 2026 (and $438,240 for the six months), and current MRNCI on the balance sheet is $7,459,135 at March 31, 2026, representing potential future cash obligations.
Management's outlook
The 10-Q contains no explicit numeric forward guidance. MD&A discloses liquidity metrics (credit limit $234.9M, outstanding $137.1M, $97.8M available) and an $8.0M facility purchase, but management does not provide a quantitative outlook or EPS/revenue guidance in this filing.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.