EVI INDUSTRIES, INC.

Red flags

• Four manufacturers accounted for approximately 71% of product purchases in fiscal 2026, while some supplier agreements are short-term or terminable on short notice.
• Debt was $51.0 million against only $6.8 million of cash at June 30, 2026; the $37.4 million Sudsies acquisition was paid in cash after year-end, increasing balance-sheet pressure.
• Fiscal 2026 operating cash flow declined to $20.6 million from $21.3 million despite 15% revenue growth, while net income increased only 3%.
• The initial accounting for Sudsies was incomplete at filing, including fair values of acquired assets, assumed liabilities, goodwill, and identifiable intangible assets.
• Dilution remains possible: approximately 14.4 million common shares were outstanding, versus authorization for 20 million common shares, and the board can issue additional shares for acquisitions or financing.