The company has achieved operating profitability for the first time in recent quarters while eliminating all debt. Monitor the next 10-Q for sustainability of the SG&A leverage and cash flow generation, as the cash balance declined despite the profit improvement.
Price Chart
Executive Summary
EQUATOR Beverage Co reported a strong Q3 2026 earnings turnaround, swinging to net income of $156,777 from a net loss of ($61,003) in the year-ago quarter, driven by 27% revenue growth to $1.50M and a significant reduction in SG&A expenses. The company also eliminated all related-party debt ($340K) and generated positive operating income of $243,802 versus a ($48,382) loss last year, marking a clear inflection point in profitability.
Key Financial Metrics
Key Facts
- Q3 2026 revenue grew 27% YoY to $1,504,371 from $1,184,589
- Net income swung to $156,777 from a ($61,003) loss in Q3 2025
- EPS improved to $0.02 from ($0.01) in the prior-year quarter
- Operating income turned positive at $243,802 vs ($48,382) loss
- SG&A expenses decreased 19.6% to $502,919 from $625,780
- All related-party loans of $340,000 were repaid, leaving zero current liabilities
- Total stockholders' equity surged to $2,019,030 from $555,973 at year-end 2025
- Cash balance declined to $147,908 from $219,457, but inventory and receivables grew
Financial Impact
Revenue up $319,782 (+27%) YoY; net income improved by $217,780; operating margin expanded from -4.1% to +16.2%
Risk Factors
- Cash balance declined to $147,908 from $219,457, potentially requiring near-term financing
- Inventory grew 34.5% to $683,981, which may signal slower turnover or working capital strain
- Small absolute revenue base ($1.5M quarterly) makes the company vulnerable to single-customer or supply chain disruptions
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001575872-26-000667 |
| Document: mojo004_8k.htm | 0001575872-26-000667 |
| Document: 0001575872-26-000667-index-headers.html | 0001575872-26-000667 |
| Document: 0001575872-26-000667-index.html | 0001575872-26-000667 |
| Document: 0001575872-26-000667.txt | 0001575872-26-000667 |
| 8-K Data (Synthetic) | 0001575872-26-000667 |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers