Quarterly ResultMay 13, 2026, 11:31 AM
EQUATOR Beverage Q1 Net Income +110% to $176K; Revenue +18% to $961K
AI Summary
EQUATOR Beverage Co reported a significant increase in net income for Q1 2026, rising 110% to $176,115, driven by an 18% revenue growth to $961,484 and a 1,300 basis point expansion in gross margin to 52%. The company generated positive net cash from operating activities of $38,848, a substantial improvement from the prior year. Additionally, EQUATOR recognized $112,292 in other income from tariff recoveries and repaid $110,000 of a related party loan, though material weaknesses in internal control over financial reporting were noted as of December 31, 2025.
Key Highlights
- Net income increased 110% to $176,115 for Q1 2026, up from $84,034 in Q1 2025.
- Revenue grew 18% to $961,484 in Q1 2026, compared to $817,748 in Q1 2025.
- Gross margin expanded by 1,300 basis points to 52% in Q1 2026.
- Net cash provided by operating activities was $38,848, a significant improvement from $(70,867) in Q1 2025.
- The company repaid $110,000 of related party loans, reducing the balance to $230,000.
- Other income of $112,292 was recognized from non-recurring tariff-related recoveries.
- EQUATOR Beverage repurchased 20,605 shares of common stock during the quarter.
- 90,000 restricted shares, valued at $72,900, were issued to the Chief Executive Officer.