Envela Corporation Reports $180.4 Million Revenue with 2.9% Growth, Net Income Declines

Envela Corporation reported a consolidated revenue of $180.4 million for the fiscal year ending December 31, 2024, marking a 2.9% increase from $175.3 million in the previous year. The company's net income, however, decreased by 5.5% to $6.76 million, down from $7.15 million in 2023. The decline in profitability was primarily attributed to increased operational costs and a significant rise in selling, general, and administrative expenses, which grew by 9.7% to $34.6 million. The gross margin improved to 24.6% from 23.8%, reflecting a stronger performance in the commercial segment, which saw an 8.8% increase in sales.

In terms of operational changes, Envela made strategic moves to enhance its market presence, including the acquisition of a bespoke jewelry fabricator in Scottsdale, Arizona, for $150,000. The company also expanded its retail footprint by opening five new stores under its Four Nines brand, which includes the Bijoux Exchange in-store buying platform. This expansion is part of Envela's strategy to diversify its offerings and enhance customer engagement through a more accessible retail experience.

The commercial segment reported a notable increase in sales, driven by strong performance in personal technology assets and IT asset disposition (ITAD) services. Sales in this segment rose to $49.9 million, up from $45.9 million in 2023. The consumer segment, while still profitable, experienced a modest sales increase of 0.8% to $130.5 million, primarily due to fluctuations in the market for precious metals and lower demand for bullion in the first half of the fiscal year.

Envela's employee headcount increased to 309 from 289 in the previous year, reflecting the company's growth and expansion efforts. The company also reported a significant improvement in cash flow from operations, which rose by 74.4% to $10.2 million, indicating a stronger liquidity position. Looking ahead, Envela aims to optimize the performance of its new retail locations and explore additional market opportunities, while continuing to adapt to changing consumer preferences and market conditions. The company remains focused on its commitment to sustainability and the circular economy, leveraging its dual business model in luxury goods and electronic asset recycling.