10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2026, or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number: 000-14311

EACO CORPORATION

(Exact name of registrant as specified in its charter)

Florida	59-2597349
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5065 East Hunter Avenue

Anaheim, California 92807

(Address of Principal Executive Offices)

(714) 876-2490

(Registrant’s Telephone Number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.01 Par Value

(Title of Class)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☒
Smaller reporting company	☒	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐  No ☒

As of July  9, 2026, 4,861,590 shares of the registrant’s common stock were outstanding.

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Income

(in thousands, except for share and per share information)

(Unaudited)

	Three Months Ended				Nine Months Ended
	May 31,				May 31,
	2026		2025		2026		2025
Net sales	$	142,350	$	111,410	$	371,139	$	305,462
Cost of sales		97,904		77,337		256,111		214,100
Gross margin		44,446		34,073		115,028		91,362
Operating expenses:
Selling, general and administrative expenses		26,445		21,627		71,730		60,979
Income from operations		18,001		12,446		43,298		30,383
Net gain (loss) on trading securities		251		277		710		761
Interest and other (expense)		(47)		(46)		(130)		(143)
Other income (expense), net		204		231		580		618
Income before income taxes		18,205		12,677		43,878		31,001
Provision for income taxes		4,640		3,162		11,196		7,835
Net income		13,565		9,515		32,682		23,166
Cumulative preferred stock dividend		(19)		(19)		(57)		(57)
Net income attributable to common shareholders	$	13,546	$	9,496	$	32,625	$	23,109
Basic earnings per common share	$	2.79	$	1.95	$	6.71	$	4.75
Diluted earnings per common share	$	2.77	$	1.94	$	6.67	$	4.73
Basic weighted average common shares outstanding		4,861,590		4,861,590		4,861,590		4,861,590
Diluted weighted average common shares outstanding		4,901,590		4,901,590		4,901,590		4,901,590

See accompanying notes to unaudited condensed consolidated financial statements.

2

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

(Unaudited)

	Three Months Ended				Nine Months Ended
	May 31,				May 31,
	2026		2025		2026		2025
Net income	$	13,565	$	9,515	$	32,682	$	23,166
Other comprehensive income, net of tax
Foreign currency translation gain (loss)		(55)		132		3		(7)
Total comprehensive income	$	13,510	$	9,647	$	32,685	$	23,159

See accompanying notes to unaudited condensed consolidated financial statements.

3

EACO Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share information)

(Unaudited)

	May 31,		August 31,
	2026		2025*
ASSETS
Current Assets:
Cash and cash equivalents	$	758	$	728
Restricted cash		10		10
Trade accounts receivable, net		72,173		65,863
Inventory, net		94,846		83,980
Marketable securities, trading		33,235		30,375
Prepaid expenses and other current assets		19,185		5,009
Total current assets		220,207		185,965
Non-current Assets:
Property, equipment and leasehold improvements, net		35,943		34,670
Operating lease right-of-use assets		9,029		6,814
Other assets, net		2,910		2,704
Total assets	$	268,089	$	230,153
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Trade accounts payable	$	36,093	$	33,179
Accrued expenses and other current liabilities		29,886		29,762
Current portion of long-term debt		4,113		135
Current portion of operating lease liabilities		3,502		2,843
Total current liabilities		73,594		65,919
Non-current Liabilities:
Long-term debt		—		4,079
Operating lease liabilities		6,017		4,305
Total liabilities		79,611		74,303
Commitments and Contingencies (Note 8)
Shareholders’ Equity:
Convertible preferred stock, $0.01 par value per share; 10,000,000 shares authorized; 36,000 shares outstanding (liquidation value $900)		1		1
Common stock, $0.01 par value per share; 8,000,000 shares authorized; 4,861,590 shares outstanding		49		49
Additional paid-in capital		12,378		12,378
Accumulated other comprehensive income		77		74
Retained earnings		175,973		143,348
Total shareholders’ equity		188,478		155,850
Total liabilities and shareholders’ equity	$	268,089	$	230,153

* Derived from the Company’s audited financial statements included in its Annual Report on Form 10-K for the year ended August 31, 2025 filed with the U.S. Securities and Exchange Commission on November 20, 2025.

See accompanying notes to unaudited condensed consolidated financial statements.

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EACO Corporation and Subsidiaries

Condensed Consolidated Statement of Shareholders’ Equity

(in thousands, except share information)

(Unaudited)

									Accumulated
	Convertible						Additional		Other				Total
	Preferred Stock			Common Stock			Paid-in		Comprehensive		Accumulated		Shareholders’
	Shares	Amount		Shares	Amount		Capital		Income		Earnings		Equity
For the Three and Nine Months Ended May 31, 2026
Balance, August 31, 2025	36,000	$	1	4,861,590	$	49	$	12,378	$	74	$	143,348	$	155,850
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation loss	—		—	—		—		—		(8)		—		(8)
Net income	—		—	—		—		—		—		9,320		9,320
Balance, November 30, 2025	36,000		1	4,861,590		49		12,378		66		152,649		165,143
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation gain	—		—	—		—		—		66		—		66
Net income	—		—	—		—		—		—		9,797		9,797
Balance, February 28, 2026	36,000		1	4,861,590		49		12,378		132		162,427		174,987
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation loss	—		—	—		—		—		(55)		—		(55)
Net income	—		—	—		—		—		—		13,565		13,565
Balance, May 31, 2026	36,000	$	1	4,861,590	$	49	$	12,378	$	77	$	175,973	$	188,478
For the Three and Nine Months Ended May 31, 2025
Balance, August 31, 2024	36,000	$	1	4,861,590	$	49	$	12,378	$	73	$	111,130	$	123,631
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation loss	—		—	—		—		—		(35)		—		(35)
Net income	—		—	—		—		—		—		6,888		6,888
Balance, November 30, 2024	36,000		1	4,861,590		49		12,378		38		117,999		130,465
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation loss	—		—	—		—		—		(104)		—		(104)
Net income	—		—	—		—		—		—		6,763		6,763
Balance, February 28, 2025	36,000		1	4,861,590		49		12,378		(66)		124,743		137,105
Preferred dividends	—		—	—		—		—		—		(19)		(19)
Foreign translation gain	—		—	—		—		—		132		—		132
Net income	—		—	—		—		—		—		9,515		9,515
Balance, May 31, 2025	36,000	$	1	4,861,590	$	49	$	12,378	$	66	$	134,239	$	146,733

See accompanying notes to unaudited condensed consolidated financial statements.

5

EACO Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

	Nine Months Ended
	May 31,
	2026		2025
Operating activities:
Net income	$	32,682	$	23,166
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,315		1,268
Allowance for credit losses		472		203
Deferred tax provision		(60)		(18)
Unrealized loss (gain) on trading securities		27		(205)
Increase (decrease) in cash flow from change in:
Trade accounts receivable		(6,782)		(4,781)
Inventory		(10,866)		(13,178)
Prepaid expenses and other assets		(14,322)		27
Operating lease right-of-use assets		(2,215)		774
Trade accounts payable		1,786		6,268
Accrued expenses and other current liabilities		124		(3,416)
Operating lease liabilities		2,371		(704)
Net cash provided by operating activities		4,532		9,404
Investing activities:
Additions to property, equipment, and leasehold improvements		(2,588)		(575)
Purchase of marketable securities, trading		(24,614)		(16,184)
Sale of marketable securities, trading		21,727		9,074
Net cash provided by investing activities		(5,475)		(7,685)
Financing activities:
Borrowing on revolving credit facility		—		491
Preferred stock dividend		(57)		(57)
Repayments on long-term debt		(101)		(96)
Bank overdraft		1,128		4,377
Net cash provided by financing activities		970		4,715
Effect of foreign currency exchange rate changes on cash and cash equivalents		3		(7)
Net increase in cash, cash equivalents, and restricted cash		30		6,427
Cash, cash equivalents, and restricted cash - beginning of period		738		853
Cash, cash equivalents, and restricted cash - end of period	$	768	$	7,280
Supplemental disclosures of cash flow information:
Cash paid for interest	$	130	$	143
Cash paid for income taxes	$	23,493	$	9,213
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	758	$	7,270
Restricted cash	$	10	$	10
Total cash, cash equivalents, and restricted cash	$	768	$	7,280

See accompanying notes to unaudited condensed consolidated financial statements.

6

EACO CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

May 31, 2026

Note 1.    Organization and Basis of Presentation

EACO Corporation (“EACO”), incorporated in Florida in September 1985, is a holding company, primarily comprised of its wholly-owned subsidiary, Bisco Industries, Inc. (“Bisco”) and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited. Substantially all of EACO’s operations are conducted through Bisco and Bisco Industries Limited. Bisco was incorporated in Illinois in 1974 and is a distributor of electronic components and fasteners with 51 sales offices and seven distribution centers located throughout the United States and Canada and one sales office located in each of the Philippines and Mexico. Bisco supplies parts used in the manufacture of products in a broad range of industries, including the aerospace and defense, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine industries.

Note 2.    Significant Accounting Policies and Significant Recent Accounting Pronouncements

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates include allowance for credit losses, provision for slow moving and obsolete inventory, recoverability of the carrying value and estimated useful lives of long-lived assets, and the valuation allowance against deferred tax assets, if any. Actual results could differ from those estimates.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in conformity with GAAP for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. In the opinion of management, all adjustments considered necessary in order to make the financial statements not misleading have been included.

Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations for presentation of interim financial information. Therefore, the condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2025 (“fiscal 2025”). The condensed consolidated balance sheet as of August 31, 2025 and related disclosures were derived from the Company’s audited consolidated financial statements as of August 31, 2025. Operating results for the three and nine months ended May 31, 2026 are not necessarily indicative of the results that may be expected for future quarterly periods or the entire fiscal year.

Principles of Consolidation

The consolidated financial statements for all periods presented include the accounts of EACO, its wholly-owned subsidiary, Bisco, and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited (all of which are collectively referred to herein as the “Company”, “we”, “us” and “our”). All significant intercompany transactions and balances have been eliminated in consolidation.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The Company regularly uses its excess cash from operating activities to purchase short- term investments. The Company may liquidate these investments time to time when cash is needed to cover operating or extraordinary expenses.

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Allowance for Credit Losses

We maintain an allowance for credit losses for estimated losses on our trade receivables, resulting from the inability of our customers to make payments for products sold. The allowance for credit losses is based on a variety of factors, including credit reviews, historical experience, length of time receivables are due, current economic trends and changes in customer payment behavior. We also record specific provisions for individual accounts when we become aware of a customer’s inability to meet its financial obligations to us, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The allowance for credit losses was $453,000 and $366,000 at May 31, 2026 and August 31, 2025, respectively.

Inventories, net

Inventories consist primarily of electronic fasteners and components and are stated at the lower of cost or estimated net realizable value. Cost is determined using the average cost method. Inventories are adjusted for slow moving or obsolete items, which was approximately $2,065,000 and $1,975,000 at May 31, 2026 and August 31, 2025, respectively. The adjustments to inventory costs are based upon management’s review of inventories on-hand over their expected future utilization and length of time held by the Company.

Marketable Securities, Trading

The Company invests in marketable trading securities, which include long and short positions in equity securities. Securities are stated at fair value, which is determined using the quoted closing prices at each reporting date. Realized gains and losses on investment transactions are recognized as incurred in the consolidated statements of operations. Net unrealized gains and losses are reported in the consolidated statements of operations and represent the change in the market value of investment holdings during the period.

Property, Equipment, and Leasehold Improvements

Property, equipment, and leasehold improvements are stated at cost net of accumulated depreciation and amortization. Depreciation and amortization expense is determined using the straight-line method over the estimated useful lives of the assets. The depreciable life for buildings is thirty-five years and five to seven years for furniture, fixtures and equipment. Leasehold improvements are amortized over the estimated useful life of the asset or the remaining lease term, whichever is less. Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or disposition of the asset, the cost and accumulated depreciation or amortization are removed from the accounts and any gains or losses are reflected in earnings.  Accumulated depreciation and amortization were $18,228,000 and $16,905,000 as of May 31, 2026 and August 31, 2025, respectively. For the three months ended May 31, 2026 and 2025, depreciation and amortization expense was $445,000 and $425,000, respectively. For the nine months ended May 31, 2026 and 2025, depreciation and amortization expense was $1,315,000 and $1,268,000, respectively.

Impairment of Long-Lived Assets

The Company’s policy is to review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of the impairment review, assets are tested on an individual basis. The recoverability of the assets is measured by a comparison of the carrying value of each asset to the future net undiscounted cash flows expected to be generated by such assets. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds their estimated fair value.

Income Taxes

Deferred taxes on income result from temporary differences between the reporting of income for financial statement and tax reporting purposes. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some or all of the deferred tax asset will not be realized. In making such determination, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income (if any), tax planning strategies and recent financial performance.

The Company provides for tax contingencies, if any, for federal, state, local and international exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these reserves requires judgments about tax issues, potential outcomes and timing. Although the outcome of these tax audits is uncertain, in management’s opinion, adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on our results of operations.

8

Revenue Recognition

The Company derives its revenue primarily from product sales. Revenue recognition is determined through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, performance obligations are satisfied.

The Company’s contract with the customer is executed with a customer purchase order and performance obligations consist solely of product shipped to customers. Revenue from product sales is recognized upon transfer of control of promised products, which the Company’s standard terms and conditions are shipping point, to customers at a point in time in an amount that reflects the consideration we expect to receive in exchange for these products as stated on the Company’s invoice to the customer. Revenue is recognized net of returns and any taxes collected from customers. The Company generally offers industry standard contractual terms in its terms and conditions stated on its invoices and on the Company website.

Freight revenues associated with product sales are recognized at point of shipment and when the criteria discussed above have been met. Freight revenues represented less than 1% of total revenues for the three and nine months ended May 31, 2026 and 2025.

Operating Leases

The Company determines if a contractual arrangement contains a lease, for accounting purposes, at contract inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, the current portion of operating lease liabilities, and the operating lease liabilities in the accompanying consolidated balance sheets.

The ROU assets represent the Company’s right to control the use of a leased asset for the contractual term, and lease liabilities represent the related obligation to make lease payments arising from the contractual arrangement. Operating lease ROU assets and lease liabilities are recognized at the contract commencement date based on the present value of lease payments over the contractual term. The operating lease ROU assets also include any prepaid lease payments made and exclude lease incentives. Lease expense is recognized on a straight-line basis over the contractual term.

Many of the Company’s leases include both lease components (such as fixed payment amounts including rent, taxes, and insurance costs) and non-lease components (such as common-area or other maintenance costs) which are accounted for as a single lease component as the Company has elected the practical expedient to group lease and non-lease components for all leases.

Many leases include one or more options to renew the contract. Therefore, renewals to extend the lease terms are not included in our ROU assets and lease liabilities as they are not reasonably certain to be exercised. The Company regularly evaluates the renewal options each reporting period and when they are reasonably certain to be exercised, management will include the lease renewal period in our contractual term when estimating the ROU assets and related liabilities.

Since most of the Company’s leases do not provide an implicit rate, as defined by GAAP, the Company uses an incremental borrowing rate based on our line of credit variable interest rate that is set at the bank prime index rate in order to determine the present value of the lease payments. The Company applies a portfolio approach for determining the incremental borrowing rate. As of May 31, 2026, the Company had ROU assets of approximately $9,029,000 and lease liabilities of approximately $9,519,000   recorded in the consolidated balance sheet. As of August 31, 2025, the Company had ROU assets of approximately $6,814,000 and lease liabilities of approximately $7,148,000 recorded in the consolidated balance sheet.

Earnings Per Common Share

Basic earnings per common share for each of the three and nine months ended May 31, 2026 and 2025 were computed based on the weighted average number of common shares outstanding. Diluted earnings per share for those periods have been computed based on the weighted average number of common shares outstanding, giving effect to all potentially dilutive common shares that were outstanding during the respective periods. Potentially dilutive common shares represent 40,000 common shares issuable upon conversion of 36,000 shares of Series A convertible preferred stock, which were outstanding at each of May 31, 2026 and 2025.

Foreign Currency Translation and Transactions

Assets and liabilities recorded in functional currencies other than the U.S. dollar (specifically, Canadian dollars used to record the assets and liabilities for Bisco Industries limited) are translated into U.S. dollars at the period-end rate of exchange. The exchange rate for Canadian dollars to U.S. dollars on May 31, 2026 and 2025 was $0.72 and $0.73, respectively. The resulting balance sheet translation

9

adjustments are charged or credited directly to accumulated other comprehensive income (loss). Revenue and expenses are transacted at the average exchange rates for each of the three and nine months ended May 31, 2026 and 2025. The average exchange rates for the nine months ended May 31, 2026 and 2025 were $0.72 and $0.71, respectively. All foreign sales, excluding Canadian sales, are denominated in U.S. dollars and, therefore, are not subject to foreign currency risk exposure.

Segment Reporting

The Company adopted Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures as of the fiscal year ended August 31, 2025 and a retroactive implementation to the fiscal year ended August 31, 2024 (“fiscal 2024”). This ASU enhances entities’ disclosures about operating segments, products and services, geographic areas and major customers.  The Company’s sole reportable segment is the industrial distribution business conducted through Bisco Industries and its Canadian subsidiary. The Company’s revenues are primarily comprised of product sales of electronic components, cable components, and a large variety of fasteners and hardware.

The Company’s Chief Operating Decision Maker (“CODM”), Don Wagner, President and Chief Operating Officer of Bisco Industries, Inc., reviews the Company’s consolidated results and allocates resources at the enterprise level. The Company’s operations are conducted through its wholly-owned industrial distribution business, which operates across 51 sales offices and seven distribution centers and one sales office in each of the Philippines and Mexico. Although the business is conducted across multiple sales offices and distribution centers, management concluded that the nature of the operations, the economic environment, and the way resources are managed and how performance is evaluated, support a single-segment determination.  The CODM reviews consolidated results to assess performance and allocate resources. Accordingly, the accompanying consolidated financial statements reflect the results of the single operating segment.  Management considered the guidance in Accounting Standards Codification (“ASC  ”) 280-10-50-4 and determined that the single reportable segment is managed on a consolidated basis.  Because the CODM manages the business as a single integrated unit, management has identified one operating segment and one reportable segment in accordance with ASC 280.

Concentrations

Net sales to customers outside the United States were approximately 13.4% and 11.0% of revenues for the three months ended May 31, 2026 and 2025, respectively, and related accounts receivable for international customers were approximately 12.8% and 10.0% of total accounts receivable as of May 31, 2026 and 2025, respectively. Sales to customers in Canada accounted for approximately 26.0% and 23.0% of such international sales for the three months ended May 31, 2026 and 2025, respectively. Sales to customers located within Asia accounted for approximately 36.8% and 41.0% of such international sales for the three months ended May 31, 2026 and 2025, respectively. Sales to customers located within other countries accounted for approximately 37.2% and 36.0% of such international sales for the three months ended May 31, 2026 and 2025, respectively.

Net sales to customers outside the United States were approximately 13.3% and 11.0% of revenues for the nine months ended May 31, 2026 and 2025, respectively.  The accounts receivable for international customers were approximately 12.8% and 10.0% of total accounts receivable as of May 31, 2026 and 2025, respectively. Sales to customers in Canada accounted for approximately 27.7% and 25.0% of such international sales for the nine months ended May 31, 2026 and 2025, respectively. Sales to customers located within Asia accounted for approximately 39.1% and 41.0% of such international sales for the nine months ended May 31, 2026 and 2025, respectively. Sales to customers located within other countries accounted for approximately 33.1% and 33.0% of such international sales for the nine months ended May 31, 2026 and 2025, respectively.

No single customer accounted for more than 10% of revenues for either of the three and nine months ended May 31, 2026 and 2025. In addition, no single customer’s receivable balance accounted for more than 10% of the Company’s customer receivables as of either May 31, 2026 or 2025.

Significant Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which is intended to enhance transparency into the nature and function of expenses. The amendments require that on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation, amortization and depletion. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Upon adoption, ASU 2024-03 should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the impact ASU 2024-03 will have on our consolidated financial statements and related disclosures.

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In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which is intended to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This ASU requires that on an annual basis, entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, this ASU requires entities to disclose additional information about income taxes paid, as well as additional disclosures of pretax income and income tax expense, and to remove the requirement to disclose certain items that are no longer considered cost beneficial or relevant. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. Upon adoption, ASU 2023-09 should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the impact ASU 2023-09 will have on our consolidated financial statements and related disclosures.

Other recently issued accounting pronouncements are not expected to have a material impact on the Company’s consolidated financial statements.

Note 3.    Accrued Liabilities

The Company’s accrued liabilities as of May 31, 2026 and August 31, 2025 are summarized as follows (in thousands):

	May 31,		August 31,
	2026		2025
Accrued expenses and other current liabilities:
Accrued accounts payable	$	10,508	$	11,011
Accrued compensation and payroll		8,678		10,938
Accrued taxes		10,700		7,813
Total accrued expenses and other current liabilities	$	29,886	$	29,762

Note 4.    Debt

The Company has a $20,000,000 line of credit with Citizens Business Bank (the “Bank”) under a Business Loan Agreement dated as of April 12, 2024 (as amended from time to time, the “2024 Business Loan Agreement”). On February 15, 2026, the Company executed a Change in Terms Agreement (the “Amendment”) with the Bank to modify terms of the 2024 Business Loan Agreement. The Amendment (i) extended the expiration date of the line of credit under the Business Loan Agreement to February 15, 2028; (ii) provided that the interest rate under the revolving line of credit will not be less than 4.0% per annum or more than the maximum rate allowed by applicable law; and (iii) modified certain financial reporting covenants referenced in the 2024 Business Loan Agreement. Except as expressly modified, the terms of the existing indebtedness remain in full force and effect.

Borrowings on the line of credit with the Bank are secured by substantially all of the assets of the Company and its subsidiaries. The amount outstanding under this line of credit as of each of May 31, 2026 and August 31, 2025 was zero. The line of credit contains certain nonfinancial and financial covenants, including the maintenance of certain financial ratios. As of each of May 31, 2026 and August 31, 2025, the Company was in compliance with all such covenants. The line of credit is primarily utilized for vendor payments if sufficient cash is unavailable. When balances are present on the line of credit, it is paid down daily with excess cash in our main deposit bank account.

The Company also entered into a loan agreement with the Bank on July 12, 2019 to borrow up to $5,000,000 (the “Construction Loan”) for the primary purpose of financing tenant improvements at the Company’s corporate headquarters in Anaheim, California (the “Hunter Property”). The Construction Loan was a line of credit evidenced by a Promissory Note in the original principal amount of up to $5,000,000 with a maturity date of May 15, 2027. The terms of the Construction Loan provide that the Company may only request advances through July 15, 2020, and thereafter, the Construction Loan would convert to a term loan with a fixed interest rate of 4.6%, which is entitled to a .25% rate discount if a demand deposit account is held with the Bank. On July 15, 2020, the amount drawn on the Construction Loan and converted to a term loan (the “Term Loan”) was $4,807,000. Interest on the Term Loan is payable monthly. The interest rate was 4.35% at each of May 31, 2026 and August 31, 2025. Concurrent with the execution of this Term Loan, Bisco entered into a commercial security agreement, dated July 12, 2019, with the Bank, pursuant to which Bisco granted the Bank a security interest in substantially all of Bisco’s personal property to secure Bisco’s obligations under the Term Loan. The outstanding balance of the Term

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Loan at May 31, 2026 and August 31, 2025 was $4,113,000 and $4,214,000, respectively. The Term Loan’s future principal due until maturity by fiscal year is as follows:

Fiscal Year	Principal Amount Due
2026	$	34,000
2027		4,079,000
Total	$	4,113,000

The Company has also entered into a business loan agreement (and related $100,000 promissory note) with the Bank in order to obtain a $100,000 letter of credit as security for the Company’s worker’s compensation requirements.

Note 5.     Leases

The Company leases its facilities and automobiles under operating lease agreements (one distribution facility, located in Glendale Heights, IL, is leased from the Glen F. Ceiley and Barbara A. Ceiley Revocable Trust (the “Trust”), which is the grantor trust of Glen Ceiley, the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder).

Our operating lease agreements expire on various dates through March 2033 and require minimum rental payments ranging from $1,000 to $46,000 per month. Certain of the leases contain options for renewal under varying terms.

	May 31,			August 31,
	2026			2025
Operating lease assets:
Right-of-use assets	$	9,029,000		$	6,814,000
Operating lease liabilities:
Current lease liabilities	$	3,502,000		$	2,843,000
Long-term lease liabilities	$	6,017,000		$	4,305,000
Weighted average remaining lease terms		3.3 years			2.8 years
Incremental borrowing rate		7.3	%		7.2	%

The discount rate used on the operating ROU assets represented the Company’s incremental borrowing rate at lease inception.

Minimum future rental payments under operating leases are as follows:

Years Ending:
2026 (remaining three months)	$	1,070,000
2027		3,906,000
2028		2,681,000
2029		1,822,000
2030		910,000
2031		368,000
Thereafter		184,000
Future minimum lease payments	$	10,941,000
Less interest		(1,422,000)
Present value of minimum lease payments	$	9,519,000

Operating lease costs under these leases were approximately $1,055,000 and $857,000 for the three months ended May 31, 2026 and 2025, respectively.  Operating lease costs under these leases were approximately $3,085,000 and $2,508,000 for the nine months ended May 31, 2026 and 2025, respectively. Cash paid for amounts included in the measurement of lease liabilities were approximately $1,049,000 and $1,056,000 for the three months ended May 31, 2026 and 2025, respectively. Cash paid for amounts included in the measurement of lease liabilities were approximately $2,926,000 and $2,494,000 for the nine months ended May 31, 2026 and 2025, respectively.

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Note 6.    Related Party Transactions

The Company leases its Chicago area sales office and distribution center located in Glendale Heights, Illinois under an operating lease agreement (the “Glendale Lease”) from the Trust, which is the grantor trust of Glen Ceiley, the Company’s Chief Executive Officer, Chairman of the Board, and majority shareholder. The Glendale Lease is a ten-year triple net lease with an initial monthly rental rate of $22,600, which is subject to annual rent increases of approximately 2.5% as set forth in the Glendale Lease. During the three months ended May 31, 2026 and 2025, the Company incurred expense related to the Glendale Lease of approximately $83,000 and $80,000, respectively. During the nine months ended May 31, 2026 and 2025, the Company incurred expense related to the Glendale Lease of approximately $248,000 and $241,000, respectively.

Note 7.    Income Taxes

During the three months ended May 31, 2026 and 2025, the Company recorded an income tax provision of $4,640,000 and $3,162,000, respectively, resulting in an effective tax rate of 25.5% and 24.9%, respectively. The provision for income taxes increased by $1,478,000 in the three months period ended May 31, 2026 over the prior year period due to higher pre-tax income in the current period.

During the nine months ended May 31, 2026 and 2025, the Company recorded an income tax provision of $11,196,000 and $7,835,000, respectively, resulting in an effective tax rate of 25.5% and 25.3%, respectively. The provision for income taxes increased by $3,361,000 in the nine months period ended May 31, 2026 over the prior year period due to higher pre-tax income in the current period.

The current period effective tax rate differs from the statutory rate of 21% primarily due to the state tax rates and permanent book tax differences.

Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. For each of the three and nine months ended May 31, 2026 and 2025, the Company did not have a liability for any unrecognized tax benefit. The Company has elected to classify interest and penalties as a component of its income tax provision. For each of the three and nine months ended May 31, 2026 and 2025, the Company did not have a liability for penalties or interest. The Company does not expect any changes to its unrecognized tax benefit for the next three  months   that would materially impact its consolidated financial statements.

Note 8.    Commitments and Contingencies

From time to time, the Company may be subject to legal proceedings and claims which arise in the normal course of our business. Any such matters and disputes could be costly and time consuming, subject the Company to damages or equitable remedies, and divert management and key personnel from core business operations.

In January 2023, a class action lawsuit was filed with the Los Angeles County Superior Court against Bisco, alleging wage and hour violations and related claims. The class action covers a class of former and current employees of Bisco who were employed between January 13, 2019 and August 23, 2024. In March 2023, Plaintiff filed a First Amended Complaint that added claims under the California Private Attorneys General Act (“PAGA”). Both parties requested to stay the litigation pending mediation, which mediation occurred in April 2024. As a result of the mediation, the parties agreed in principle to settle this matter for approximately $7,500,000 which settlement amount, inclusive of payroll taxes, was increased to $7,795,000 in May 2025. In July 2025, the court approved the settlement.  In anticipation of this settlement, the Company accrued $7,390,000 and $285,000 in fiscal 2024 and fiscal 2023, respectively, and an additional $120,000 was accrued in fiscal 2025 to cover the remaining settlement expense. The Company made the full settlement payment in September 2025.

Note 9.    Subsequent Events

Management has evaluated events subsequent to May 31, 2026, through the date that these unaudited condensed consolidated financial statements are filed with the SEC, for transactions and other events which may require adjustment of and/or disclosure in such financial statements.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statements

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such statements can be identified by the use of terminology such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “possible,” “project,” “should,” “will” and similar words or expressions. These forward-looking statements include, but are not limited to, statements regarding our anticipated revenue, expenses, profits and capital needs. These statements are based on our current expectations, estimates, projections, and the impact of certain accounting pronouncements, and are subject to a number of risks and uncertainties that could cause our actual results to differ materially from those projected or estimated, including, but not limited to the impact of adverse economic conditions, competitive pressures, the pricing and availability of our products, the impact of products offered by our competitors, unexpected costs and losses from operations or investments, increases in costs and overhead, our ability to maintain an effective system of internal controls over financial reporting, potential losses from trading in securities, our ability to retain key personnel and hire additional qualified personnel, our ability to open additional sales offices and maintain good relationships with suppliers, the willingness of lenders to extend financing commitments and the availability of capital resources, as well as the uncertainty related to international tariffs and the impact of the continuing international conflicts and the other risks set forth in “Risk Factors” in Part II, Item 1A of this Quarterly Report or identified from time to time in our other filings with the SEC and in public announcements. You should not place undue reliance on these forward-looking statements that speak only as of the date hereof or the date of any other filing with the SEC, as applicable. Except as required by law, we undertake no obligation to revise or update publicly any forward-looking statement for any reason, including to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of forward-looking statements in this Quarterly Report should not be regarded as a representation by management or any other person that the objectives or plans of the Company will be achieved.

Overview

The condensed consolidated financial statements comprise the accounts of EACO and its wholly-owned subsidiary, Bisco, and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited.

EACO is a holding company primarily comprised of its wholly-owned subsidiary, Bisco. Bisco is a distributor of electronic components and fasteners with 51 sales offices and seven distribution centers located throughout the United States and Canada and one sales office located in each the Philippines and Mexico. Bisco supplies parts used in the manufacture of products in a broad range of industries, including the aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine industries.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of its financial condition and results of operations are based upon its condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.

Within the context of these critical accounting policies, management is not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported. There have been no changes to the Company’s critical accounting policies for the three months ended May 31, 2026.

Revenue Recognition

We derive our revenue primarily from product sales. We determine revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation.

The Company’s performance obligations consist solely of product shipped to customers. Revenue from product sales is recognized upon transfer of control of promised products, which are at shipping point pursuant to the Company’s standard terms and conditions, to customers at a point in time in an amount that reflects the consideration we expect to receive in exchange for these products. Revenue is recognized net of returns and any taxes collected from customers. We offer industry standard contractual terms in our sales orders.

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Inventory

The Company’s inventory provisions are based upon management’s review of inventories on-hand over the inventory’s expected future utilization and length of time held by the Company. The Company’s methodology for estimating these adjustments to the cost basis is evaluated for factors that could require changes to the cost basis including significant changes in product demand, market conditions, condition of the inventory or net realizable value. If business or economic conditions change, management’s estimates and assumptions may be adjusted as deemed appropriate.

Impairment of Long-Lived Assets

Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of the impairment review, assets are tested on an individual basis. The recoverability of the assets is measured by a comparison of the carrying value of each asset to the future net undiscounted cash flows expected to be generated by such assets. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds such asset’s estimated fair value.

Results of Operations

Comparison of the Three Months Ended May 31, 2026 and 2025

Net Sales and Gross Profit ($ in thousands)

	Three Months Ended
	May 31,						$		%
	2026			2025			Change		Change
Net sales	$	142,350		$	111,410		$	30,940	27.8	%
Cost of sales		97,904			77,337			20,567	26.6	%
Gross profit	$	44,446		$	34,073		$	10,373	30.4	%
Gross profit as a percent of net sales		31.2	%		30.6	%			0.6	%

Net sales consist primarily of sales of component parts and fasteners, but also include, to a lesser extent, kitting charges and special-order fees, as well as freight charged to customers.

The increase in revenues in the three months ended May 31, 2026 (“Q3 2026”) as compared to the three months ended May 31, 2025 (“Q3 2025”) was largely due to increased sales of our products as a result of the expansion of our sales force and increasing demand from customers. We increased the number of sales personnel and sales management by 48 employees in the current period, from 443 sales employees in Q3 2025 to 491 sales employees in Q3 2026. We believe that increasing sales headcount enables us to sell more products to existing customers and provides additional resources to find new customers. Revenues and gross profit for Q3 2026 also increased as compared to Q3 2025 due to the development of better relationships with vendors and customers, and higher inventory stock readily available to meet customer demand in the current period, particularly in the aerospace and defense industries.  Gross profit as a percent of net sales has increased 0.6%, primarily due to the development of better relationships with our customers and vendors and high demand for products the Company has in stock. Better relationship with our vendors have enabled the Company to get better pricing for its products and access to products that are restricted to authorized distributors.

Selling, General and Administrative Expenses ($ in thousands)

	Three Months Ended
	May 31,						$		%
	2026			2025			Change		Change
Selling, general and administrative expenses	$	26,445		$	21,627		$	4,818	22.3	%
Percent of net sales		18.6	%		19.4	%			(0.8)	%

Selling, general and administrative expense (“SG&A”) consists primarily of payroll and related expenses for the Company’s sales and administrative staff, professional fees including accounting, legal and technology costs and expenses, and sales and marketing costs. SG&A in Q3 2026 increased from Q3 2025 primarily due to higher employee payroll and benefit expenses due to increased total employee headcount, which increased from 632 employees in Q3 2025 to 684 employees in Q3 2026.  The increase in SG&A was also attributed to higher bonus expenses and annual bonus accruals related to record sales and income for the Company in the current period.

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Other Income (Expense), Net ($ in thousands)

	Three Months Ended
	May 31,						$		%
Other income (expense):	2026			2025			Change		Change
Realized gain on sales of marketable trading securities	$	260		$	172		$	88	51.2	%
Unrealized (loss) gain on marketable trading securities		(9)			105			(114)	(108.6)	%
Interest and other (expense)		(47)			(46)			(1)	2.2
Other income (expense), net	$	204		$	231		$	(27)	(11.7)	%
Other income (expense), net as a percent of revenues		0.1	%		0.2	%			(0.1)	%

Other income (expense), net, primarily consists of income or loss on trading in short-term marketable equity securities of publicly- held corporations and interest related to the Company’s debt obligations. The Company’s investment strategy consists of both long and short positions, as well as utilizing options designed to improve returns. During Q3 2026, the Company recognized a net gain on trading securities of $251,000 as compared to a net gain of $277,000 in Q3 2025.  The net trading securities change when comparing Q3 2026 and Q3 2025 was primarily due to the timing of sales and purchases and general market climate for short and long positions during the applicable period.

Interest and other (expense), net, decreased in the current period compared to the same period in the prior year, which was primarily due to interest expense from borrowings on the Company’s line of credit being slightly higher in the current year period.

Income Tax Provision ($ in thousands)

	Three Months Ended
	May 31,						$		%
	2026			2025				Change	Change
Income tax provision	$	4,640		$	3,162		$	1,478	46.7	%
Percent of pre-tax income		25.5	%		24.9	%			0.6	%

The provision for income taxes increased by $1,478,000 in Q3 2026 over the same prior year period. This increase was primarily due to higher income in the current quarter as compared to the prior year period. The income tax provision as a percent of pre-tax income increased from 24.9% at Q3 2025 to 25.5% at Q3 2026, which was primarily due to the state tax rate mix and permanent book tax differences.

Comparison of the Nine Months Ended May 31, 2026 and 2025

Net Sales and Gross Profit ($ in thousands)

	Nine Months Ended
	May 31,						$		%
	2026			2025			Change		Change
Net sales	$	371,139		$	305,462		$	65,677	21.5	%
Cost of sales		256,111			214,100			42,011	19.6	%
Gross profit	$	115,028		$	91,362		$	23,666	25.9	%
Gross profit as a percent of net sales		31.0	%		29.9	%			1.1	%

The increase in revenues in the nine months ended May 31, 2026 as compared to the nine months ended May 31, 2025 was largely due to the expansion of our sales force headcount. The increase in revenues was also due to the development of better relationships with vendors and customers, and higher inventory stock readily available to meet customer demand in the current period.  Gross profit as a percent of net sales has increased 1.1% in the current period, primarily due to the development of better relationships with our customers and vendors.

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Selling, General and Administrative Expenses ($ in thousands)

	Nine Months Ended
	May 31,						$		%
	2026			2025			Change		Change
Selling, general and administrative expenses	$	71,730		$	60,979		$	10,751	17.6	%
Percent of net sales		19.3	%		20.0	%			(0.7)	%

SG&A in the nine months ended May 31, 2026 increased from the same period in the prior year primarily due to higher employee payroll and benefit expenses and due to increased total employee headcount in the current period. SG&A also increased in the current period when compared to the same period in the prior year due to increased bonus expense and accrued annual bonuses due to higher revenues and income in the current period.

Other Income (Expense), Net ($ in thousands)

	Nine Months Ended
	May 31,						$		%
Other income (expense) :	2026			2025			Change		Change
Realized gain on sales of marketable trading securities	$	737		$	556		$	181	32.6	%
Unrealized (loss) gain on marketable trading securities		(27)			205			(232)	(113.2)	%
Interest and other (expense)		(130)			(143)			13	(9.1)
Other income (expense), net	$	580		$	618		$	(38)	(6.1)	%
Other income (expense) , net as a percent of revenues		0.0	%		0.0	%			0.0	%

During the nine months ended May 31, 2026, the Company recognized a net gain on trading securities of $710,000 as compared to a net gain of $761,000 in the same period in the prior year. The increase in the realized gain on marketable trading securities in the current period over the prior period was primarily due to a larger amount invested in treasury bond ETFs during the current period.  The change in the unrealized (loss) gain on marketable securities in the current and prior periods was primarily due to timing of purchases and general market climate for short and long positions at the end of the applicable periods.

Interest and other (expense), net, decreased in the current period compared to the same period in the prior year, which was primarily due to interest expense from borrowings on the line of credit being slightly higher in the prior year period and having a higher interest rate of 6.75% compared to 6.00% in the current period.

Income Tax Provision ($ in thousands)

	Nine Months Ended
	May 31,						$		%
	2026			2025			Change		Change
Income tax provision	$	11,196		$	7,835		$	3,361	42.9	%
Percent of pre-tax income		25.5	%		25.3	%			0.2	%

The provision for income taxes increased by $3,361,000 in the nine months ended May 31, 2026 when compared to the same period in the prior year. This increase was primarily due to higher income in the current period as compared to the prior year period. The income tax provision as a percent of pre-tax income remained consistent at 25.5% and 25.3% for the nine months ended May 31, 2026 and May 31, 2025, respectively.

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Liquidity and Capital Resources

As of May 31, 2026 and August 31, 2025, the Company held approximately $758,000 and $728,000 of unrestricted cash and cash equivalents, respectively. The Company also held $33,235,000 and $30,375,000 of marketable securities at May 31, 2026 and August 31, 2025, respectively, which could be liquidated, if necessary.

The Company currently has an available $20,000,000 line of credit with the Bank pursuant to the 2024 Business Loan Agreement. The Company entered into the Amendment on February 15, 2026 with the Bank, which extended the maturity date of the line of credit from February 15, 2026 to February 15, 2028. The line of credit has a variable interest rate set at the bank prime index rate, provided that in no event would such interest rate be less than 4.0% per annum. Borrowings are secured by substantially all of the assets of the Company and its subsidiaries. The 2024 Business Loan Agreement contains certain nonfinancial and financial covenants, including the maintenance of certain financial ratios. As of each of May 31, 2026 and August 31, 2025, the Company was in compliance with all such covenants. The outstanding balance of the line of credit as of each of May 31, 2026 and August 31, 2025 was zero.

Cash Flows from Operating Activities

Cash provided by operating activities was $4,532,000 for the nine months ended May 31, 2026 as compared with cash provided by operating activities of $9,404,000 for the nine months ended May 31, 2025. Cash provided by operating activities in the current period was due to net income of $32,682,000 in the nine months ended May 31, 2026 . Cash provided by operating activities was adversely impacted by increases in inventory, prepaid expenses, and accounts receivable . The increase in inventory was primarily due to purchases of our main line inventory and expected customer demand of products. The increase in prepaid expenses is due to quarterly payments of estimated income taxes for the current fiscal year  .  As of Q3 2026, the Company has paid $12,191,000 in estimated taxes related to the current fiscal year.  The increase in accounts receivable is primarily due to the increased revenues in the current period.  

The prior period cash provided by operating activities was primarily due to net income in the prior year period and an increase in trade accounts payable.  Cash provided by operating activities in the prior year period was adversely impacted by increases in inventory and trade accounts receivable.

Cash Flows from Investing Activities

Cash used in investing activities was $5,475,000 for the nine months ended May 31, 2026 as compared with cash used in investing activities of $7,685,000 for the nine months ended May 31, 2025. Cash used in investing activities in the current period was primarily due to the purchase of marketable securities and leasehold improvements in the current period.  Purchase of marketable securities were made to invest the Company’s excess cash in the period. The Company expects to make marketable security purchases during the remainder of the fiscal year 2026 using its excess cash provided by operating activities.  Purchase of leasehold improvements were made for our corporate headquarters campus expansion of the Hunter Property.

Cash Flows from Financing Activities

Cash provided by financing activities for the nine months ended May 31, 2026 was $970,000 as compared with cash provided by financing activities of $4,715,000 for the nine months ended May 31, 2025. The cash provided by financing activities for the current period was primarily due to the net increase in bank overdraft in the current period, which represents outstanding checks in excess of cash due to the nightly sweep feature of the cash account to the line of credit with the Bank. The cash provided by financing activities for the prior period was primarily due to an increase in the bank overdraft balance. The Company expects to see increases in the bank overdraft due to increased purchases of inventory due to projected sales growth and timing of cash being moved to marketable securities.

Contractual Financial Obligations

In addition to using cash flow generated from operations, the Company finances its operations through borrowings under its line of credit. These financial obligations are recorded in accordance with accounting rules applicable to the underlying transactions, with the result being that amounts owed under debt agreements and finance leases are recorded as liabilities on the consolidated balance sheets while lease obligations recorded as operating leases are disclosed in the notes to the consolidated financial statements and management’s discussion and analysis of financial condition and results of operations in the Company’s Annual Report on Form 10-K for the year ended August 31, 2025 as filed with the SEC on November 20, 2025.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information required under this item.

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Item 4. Controls and Procedures

Disclosure Controls and Procedures

Our management carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer (who is our Principal Executive Officer) and our Chief Financial Officer (who is our Principal Financial Officer and Principal Accounting Officer), of the effectiveness of the design of our disclosure controls and procedures (as defined by Exchange Act Rules 13a-15(e) or 15d-15(e)) as of May 31, 2026, pursuant to Exchange Act Rule 13a-15(b). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of May 31, 2026 because of the material weakness in internal control over financial reporting discussed below.

Notwithstanding the material weakness in internal control over financial reporting described below, our management has concluded that our consolidated financial statements included in this Quarterly Report were fairly stated in all material respects in accordance with GAAP.

Material Weakness

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

Management concluded that there was a material weakness in the Company’s internal control over financial reporting as of August 31, 2025, related to the Company’s internal controls over the financial statement closing process, including manual journal entries recorded in the preparation of the financial statements in the closing process, including lease accounting and reconciliations, and accumulation of information for disclosure in the preparation of the consolidated financial statements.

Due to its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, and/or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Remediation Plan

We are in the process of developing and implementing a plan for the remediation of the material weakness. Management has implemented and adopted a third-party software to improve the capture, accounting for, and reporting of leases. We plan to continue to enhance controls over reconciliations by implementing improved accounting software that should aid in reconciliations and monitoring of general ledger accounts. We plan to continue to assess the effectiveness of our remediation efforts in connection with our future assessments of the effectiveness of internal control over financial reporting and disclosure controls and procedures.

We are committed to maintaining a strong control environment throughout the Company. Although we believe that the above efforts have improved our internal control over financial reporting, we plan to continue to assess, implement and enhance our remediation efforts until the material weakness identified above is remediated.

Changes in Internal Control over Financial Reporting

Except as disclosed above, there were no changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the period ended May 31, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

19

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may be subject to legal proceedings and claims which arise in the normal course of our business. Any such matters and disputes could be costly and time consuming, subject us to damages or equitable remedies, and divert our management and key personnel from our business operations. We currently are not a party to any legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on our consolidated results of operations, financial position or cash flows.

Item 1A. Risk Factors

Item 1A of Part I of our Annual Report on Form 10-K for the year ended August 31, 2025, filed with the SEC on November 20, 2025, contain risk factors identified by the Company. There have been no material changes to the risk factors we previously disclosed in our filings with the SEC. Our operations could also be affected by additional factors that are not presently known to us or by factors that we currently consider immaterial to our business.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.    Defaults Upon Senior Securities

None.

Item 4.    Mine Safety Disclosures

Not applicable.

Item 5.   Other Information

None.

20

Item 6.   Exhibits

No.	Exhibit
31.1*	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act.
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
Exhibit 104	Cover Page Interactive Data File (formatted as Inline XBRL)

21

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	EACO CORPORATION
	(Registrant)
Date: July 9, 2026	/s/ Glen Ceiley
	Glen Ceiley
	Chief Executive Officer
	(Principal Executive Officer & Principal Financial Officer)
	/s/ Michael Narikawa
	Michael Narikawa
	Controller and Chief Financial Executive
	(Principal Accounting Officer)

22

EX-31.1

Exhibit 31.1

Certification

I, Glen Ceiley, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of EACO Corporation (the “registrant”).

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 9, 2026	/S/ GLEN CEILEY
	Glen Ceiley
	Chief Executive Officer
	(Principal Executive Officer and Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

(PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

In connection with the accompanying Quarterly Report on Form 10-Q of EACO Corporation (the “Company”) on Form 10-Q for the quarter ended February 28, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Glen Ceiley, the Chief Executive Officer (Principal Executive Officer) and Principal Financial Officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: July 9, 2026	/S/ GLEN CEILEY
	Glen Ceiley
	Chief Executive Officer
	(Principal Executive Officer and Principal Financial Officer)

XML

Document and Entity Information - shares	9 Months Ended
	May 31, 2026	Jul. 09, 2026
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2026
Document Transition Report	false
Securities Act File Number	000-14311
Entity Registrant Name	EACO CORPORATION
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-2597349
Entity Address, Address Line One	5065 East Hunter Avenue
Entity Address, City or Town	Anaheim
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92807
City Area Code	714
Local Phone Number	876-2490
Title of 12(g) Security	Common Stock, $0.01 Par Value
Trading Symbol	EACO
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,861,590
Entity Central Index Key	0000784539
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2026
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Consolidated Statements of Operations
Net sales	$ 142,350	$ 111,410	$ 371,139	$ 305,462
Cost of sales	97,904	77,337	256,111	214,100
Gross margin	44,446	34,073	115,028	91,362
Operating expenses:
Selling, general and administrative expenses	26,445	21,627	71,730	60,979
Income from operations	18,001	12,446	43,298	30,383
Other income (expense):
Net gain (loss) on trading securities	251	277	710	761
Interest and other (expense)	(47)	(46)	(130)	(143)
Other income (expense), net	204	231	580	618
Income before income taxes	18,205	12,677	43,878	31,001
Provision for income taxes	4,640	3,162	11,196	7,835
Net income	13,565	9,515	32,682	23,166
Cumulative preferred stock dividend	(19)	(19)	(57)	(57)
Net income attributable to common shareholders	$ 13,546	$ 9,496	$ 32,625	$ 23,109
Basic earnings per common share (in dollars per share)	$ 2.79	$ 1.95	$ 6.71	$ 4.75
Diluted earnings per common share (in dollars per share)	$ 2.77	$ 1.94	$ 6.67	$ 4.73
Basic weighted average common shares outstanding (in shares)	4,861,590	4,861,590	4,861,590	4,861,590
Diluted weighted average common shares outstanding (in shares)	4,901,590	4,901,590	4,901,590	4,901,590

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Consolidated Statements of Comprehensive Income
Net income	$ 13,565	$ 9,515	$ 32,682	$ 23,166
Other comprehensive income, net of tax
Foreign currency translation gain (loss)	(55)	132	3	(7)
Total comprehensive income	$ 13,510	$ 9,647	$ 32,685	$ 23,159

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Current Assets:
Cash and cash equivalents	$ 758	$ 728
Restricted cash	10	10
Trade accounts receivable, net	72,173	65,863
Inventory, net	94,846	83,980
Marketable securities, trading	33,235	30,375
Prepaid expenses and other current assets	19,185	5,009
Total current assets	220,207	185,965
Non-current Assets:
Property, equipment and leasehold improvements, net	35,943	34,670
Operating lease right-of-use assets	9,029	6,814
Other assets, net	2,910	2,704
Total assets	268,089	230,153
Current Liabilities:
Trade accounts payable	36,093	33,179
Accrued expenses and other current liabilities	29,886	29,762
Current portion of long-term debt	4,113	135
Current portion of operating lease liabilities	3,502	2,843
Total current liabilities	73,594	65,919
Non-current Liabilities:
Long-term debt		4,079
Operating lease liabilities	6,017	4,305
Total liabilities	79,611	74,303
Commitments and Contingencies (Note 8)
Shareholders' Equity:
Convertible preferred stock, $0.01 par value per share; 10,000,000 shares authorized; 36,000 shares outstanding (liquidation value $900)	1	1
Common stock, $0.01 par value per share; 8,000,000 shares authorized; 4,861,590 shares outstanding	49	49
Additional paid-in capital	12,378	12,378
Accumulated other comprehensive income	77	74
Retained earnings	175,973	143,348
Total shareholders' equity	188,478	155,850
Total liabilities and shareholders' equity	$ 268,089	$ 230,153

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Convertible Preferred Stock
Convertible preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Convertible preferred stock, shares outstanding (in shares)	36,000	36,000
Convertible preferred stock, liquidation value	$ 900	$ 900
Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	8,000,000	8,000,000
Common stock, shares outstanding (in shares)	4,861,590	4,861,590

XML

Condensed Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands	Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Earnings	Total
Beginning balance at Aug. 31, 2024	$ 1	$ 49	$ 12,378	$ 73	$ 111,130	$ 123,631
Beginning balance (in shares) at Aug. 31, 2024	36,000	4,861,590
Increase (Decrease) in Stockholders' Equity
Preferred dividends					(19)	(19)
Foreign translation gain (loss)				(35)		(35)
Net Income (Loss)					6,888	6,888
Ending balance at Nov. 30, 2024	$ 1	$ 49	12,378	38	117,999	130,465
Ending balance (in shares) at Nov. 30, 2024	36,000	4,861,590
Beginning balance at Aug. 31, 2024	$ 1	$ 49	12,378	73	111,130	123,631
Beginning balance (in shares) at Aug. 31, 2024	36,000	4,861,590
Increase (Decrease) in Stockholders' Equity
Foreign translation gain (loss)						(7)
Net Income (Loss)						23,166
Ending balance at May. 31, 2025	$ 1	$ 49	12,378	66	134,239	146,733
Ending balance (in shares) at May. 31, 2025	36,000	4,861,590
Beginning balance at Nov. 30, 2024	$ 1	$ 49	12,378	38	117,999	130,465
Beginning balance (in shares) at Nov. 30, 2024	36,000	4,861,590
Increase (Decrease) in Stockholders' Equity
Preferred dividends					(19)	(19)
Foreign translation gain (loss)				(104)		(104)
Net Income (Loss)					6,763	6,763
Ending balance at Feb. 28, 2025	$ 1	$ 49	12,378	(66)	124,743	137,105
Ending balance (in shares) at Feb. 28, 2025	36,000	4,861,590
Increase (Decrease) in Stockholders' Equity
Preferred dividends					(19)	(19)
Foreign translation gain (loss)				132		132
Net Income (Loss)					9,515	9,515
Ending balance at May. 31, 2025	$ 1	$ 49	12,378	66	134,239	146,733
Ending balance (in shares) at May. 31, 2025	36,000	4,861,590
Beginning balance at Aug. 31, 2025	$ 1	$ 49	12,378	74	143,348	155,850
Beginning balance (in shares) at Aug. 31, 2025	36,000	4,861,590
Increase (Decrease) in Stockholders' Equity
Preferred dividends					(19)	(19)
Foreign translation gain (loss)				(8)		(8)
Net Income (Loss)					9,320	9,320
Ending balance at Nov. 30, 2025	$ 1	$ 49	12,378	66	152,649	165,143
Ending balance (in shares) at Nov. 30, 2025	36,000	4,861,590
Beginning balance at Aug. 31, 2025	$ 1	$ 49	12,378	74	143,348	155,850
Beginning balance (in shares) at Aug. 31, 2025	36,000	4,861,590
Increase (Decrease) in Stockholders' Equity
Foreign translation gain (loss)						3
Net Income (Loss)						32,682
Ending balance at May. 31, 2026	$ 1	$ 49	12,378	77	175,973	188,478
Ending balance (in shares) at May. 31, 2026	36,000	4,861,590
Beginning balance at Nov. 30, 2025	$ 1	$ 49	12,378	66	152,649	165,143
Beginning balance (in shares) at Nov. 30, 2025	36,000	4,861,590
Increase (Decrease) in Stockholders' Equity
Preferred dividends					(19)	(19)
Foreign translation gain (loss)				66		66
Net Income (Loss)					9,797	9,797
Ending balance at Feb. 28, 2026	$ 1	$ 49	12,378	132	162,427	174,987
Ending balance (in shares) at Feb. 28, 2026	36,000	4,861,590
Increase (Decrease) in Stockholders' Equity
Preferred dividends					(19)	(19)
Foreign translation gain (loss)				(55)		(55)
Net Income (Loss)					13,565	13,565
Ending balance at May. 31, 2026	$ 1	$ 49	$ 12,378	$ 77	$ 175,973	$ 188,478
Ending balance (in shares) at May. 31, 2026	36,000	4,861,590

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May 31, 2026	May 31, 2025
Operating activities:
Net income	$ 32,682	$ 23,166
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,315	1,268
Allowance for credit losses	472	203
Deferred tax provision	(60)	(18)
Unrealized loss (gain) on trading securities	27	(205)
Increase (decrease) in cash flow from change in:
Trade accounts receivable	(6,782)	(4,781)
Inventory	(10,866)	(13,178)
Prepaid expenses and other assets	(14,322)	27
Operating lease right-of-use assets	(2,215)	774
Trade accounts payable	1,786	6,268
Accrued expenses and other current liabilities	124	(3,416)
Operating lease liabilities	2,371	(704)
Net cash provided by operating activities	4,532	9,404
Investing activities:
Additions to property, equipment, and leasehold improvements	(2,588)	(575)
Purchase of marketable securities, trading	(24,614)	(16,184)
Sale of marketable securities, trading	21,727	9,074
Net cash provided by investing activities	(5,475)	(7,685)
Financing activities:
Borrowing on revolving credit facility		491
Preferred stock dividend	(57)	(57)
Repayments on long-term debt	(101)	(96)
Bank overdraft	1,128	4,377
Net cash provided by financing activities	970	4,715
Effect of foreign currency exchange rate changes on cash and cash equivalents	3	(7)
Net increase in cash, cash equivalents, and restricted cash	30	6,427
Cash, cash equivalents, and restricted cash - beginning of period	738	853
Cash, cash equivalents, and restricted cash - end of period	768	7,280
Supplemental disclosures of cash flow information:
Cash paid for interest	130	143
Cash paid for income taxes	$ 23,493	$ 9,213

XML

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	May 31, 2026	May 31, 2025
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$ 758	$ 7,270
Restricted cash	10	10
Total cash, cash equivalents, and restricted cash	$ 768	$ 7,280

XML

Organization and Basis of Presentation

9 Months Ended

May 31, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1.    Organization and Basis of Presentation

EACO Corporation (“EACO”), incorporated in Florida in September 1985, is a holding company, primarily comprised of its wholly-owned subsidiary, Bisco Industries, Inc. (“Bisco”) and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited. Substantially all of EACO’s operations are conducted through Bisco and Bisco Industries Limited. Bisco was incorporated in Illinois in 1974 and is a distributor of electronic components and fasteners with 51 sales offices and seven distribution centers located throughout the United States and Canada and one sales office located in each of the Philippines and Mexico. Bisco supplies parts used in the manufacture of products in a broad range of industries, including the aerospace and defense, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine industries.

XML

Significant Accounting Policies and Significant Recent Accounting Pronouncements

9 Months Ended

May 31, 2026

Accounting Policies [Abstract]

Significant Accounting Policies and Significant Recent Accounting Pronouncements

Note 2.    Significant Accounting Policies and Significant Recent Accounting Pronouncements

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates include allowance for credit losses, provision for slow moving and obsolete inventory, recoverability of the carrying value and estimated useful lives of long-lived assets, and the valuation allowance against deferred tax assets, if any. Actual results could differ from those estimates.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in conformity with GAAP for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. In the opinion of management, all adjustments considered necessary in order to make the financial statements not misleading have been included.

Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations for presentation of interim financial information. Therefore, the condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2025 (“fiscal 2025”). The condensed consolidated balance sheet as of August 31, 2025 and related disclosures were derived from the Company’s audited consolidated financial statements as of August 31, 2025. Operating results for the three and nine months ended May 31, 2026 are not necessarily indicative of the results that may be expected for future quarterly periods or the entire fiscal year.

Principles of Consolidation

The consolidated financial statements for all periods presented include the accounts of EACO, its wholly-owned subsidiary, Bisco, and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited (all of which are collectively referred to herein as the “Company”, “we”, “us” and “our”). All significant intercompany transactions and balances have been eliminated in consolidation.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The Company regularly uses its excess cash from operating activities to purchase short- term investments. The Company may liquidate these investments time to time when cash is needed to cover operating or extraordinary expenses.

Allowance for Credit Losses

We maintain an allowance for credit losses for estimated losses on our trade receivables, resulting from the inability of our customers to make payments for products sold. The allowance for credit losses is based on a variety of factors, including credit reviews, historical experience, length of time receivables are due, current economic trends and changes in customer payment behavior. We also record specific provisions for individual accounts when we become aware of a customer’s inability to meet its financial obligations to us, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The allowance for credit losses was $453,000 and $366,000 at May 31, 2026 and August 31, 2025, respectively.

Inventories, net

Inventories consist primarily of electronic fasteners and components and are stated at the lower of cost or estimated net realizable value. Cost is determined using the average cost method. Inventories are adjusted for slow moving or obsolete items, which was approximately $2,065,000 and $1,975,000 at May 31, 2026 and August 31, 2025, respectively. The adjustments to inventory costs are based upon management’s review of inventories on-hand over their expected future utilization and length of time held by the Company.

Marketable Securities, Trading

The Company invests in marketable trading securities, which include long and short positions in equity securities. Securities are stated at fair value, which is determined using the quoted closing prices at each reporting date. Realized gains and losses on investment transactions are recognized as incurred in the consolidated statements of operations. Net unrealized gains and losses are reported in the consolidated statements of operations and represent the change in the market value of investment holdings during the period.

Property, Equipment, and Leasehold Improvements

Property, equipment, and leasehold improvements are stated at cost net of accumulated depreciation and amortization. Depreciation and amortization expense is determined using the straight-line method over the estimated useful lives of the assets. The depreciable life for buildings is thirty-five years and five to seven years for furniture, fixtures and equipment. Leasehold improvements are amortized over the estimated useful life of the asset or the remaining lease term, whichever is less. Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or disposition of the asset, the cost and accumulated depreciation or amortization are removed from the accounts and any gains or losses are reflected in earnings.  Accumulated depreciation and amortization were $18,228,000 and $16,905,000 as of May 31, 2026 and August 31, 2025, respectively. For the three months ended May 31, 2026 and 2025, depreciation and amortization expense was $445,000 and $425,000, respectively. For the nine months ended May 31, 2026 and 2025, depreciation and amortization expense was $1,315,000 and $1,268,000, respectively.

Impairment of Long-Lived Assets

The Company’s policy is to review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of the impairment review, assets are tested on an individual basis. The recoverability of the assets is measured by a comparison of the carrying value of each asset to the future net undiscounted cash flows expected to be generated by such assets. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds their estimated fair value.

Income Taxes

Deferred taxes on income result from temporary differences between the reporting of income for financial statement and tax reporting purposes. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some or all of the deferred tax asset will not be realized. In making such determination, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income (if any), tax planning strategies and recent financial performance.

The Company provides for tax contingencies, if any, for federal, state, local and international exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these reserves requires judgments about tax issues, potential outcomes and timing. Although the outcome of these tax audits is uncertain, in management’s opinion, adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on our results of operations.

Revenue Recognition

The Company derives its revenue primarily from product sales. Revenue recognition is determined through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, performance obligations are satisfied.

The Company’s contract with the customer is executed with a customer purchase order and performance obligations consist solely of product shipped to customers. Revenue from product sales is recognized upon transfer of control of promised products, which the Company’s standard terms and conditions are shipping point, to customers at a point in time in an amount that reflects the consideration we expect to receive in exchange for these products as stated on the Company’s invoice to the customer. Revenue is recognized net of returns and any taxes collected from customers. The Company generally offers industry standard contractual terms in its terms and conditions stated on its invoices and on the Company website.

Freight revenues associated with product sales are recognized at point of shipment and when the criteria discussed above have been met. Freight revenues represented less than 1% of total revenues for the three and nine months ended May 31, 2026 and 2025.

Operating Leases

The Company determines if a contractual arrangement contains a lease, for accounting purposes, at contract inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, the current portion of operating lease liabilities, and the operating lease liabilities in the accompanying consolidated balance sheets.

The ROU assets represent the Company’s right to control the use of a leased asset for the contractual term, and lease liabilities represent the related obligation to make lease payments arising from the contractual arrangement. Operating lease ROU assets and lease liabilities are recognized at the contract commencement date based on the present value of lease payments over the contractual term. The operating lease ROU assets also include any prepaid lease payments made and exclude lease incentives. Lease expense is recognized on a straight-line basis over the contractual term.

Many of the Company’s leases include both lease components (such as fixed payment amounts including rent, taxes, and insurance costs) and non-lease components (such as common-area or other maintenance costs) which are accounted for as a single lease component as the Company has elected the practical expedient to group lease and non-lease components for all leases.

Many leases include one or more options to renew the contract. Therefore, renewals to extend the lease terms are not included in our ROU assets and lease liabilities as they are not reasonably certain to be exercised. The Company regularly evaluates the renewal options each reporting period and when they are reasonably certain to be exercised, management will include the lease renewal period in our contractual term when estimating the ROU assets and related liabilities.

Since most of the Company’s leases do not provide an implicit rate, as defined by GAAP, the Company uses an incremental borrowing rate based on our line of credit variable interest rate that is set at the bank prime index rate in order to determine the present value of the lease payments. The Company applies a portfolio approach for determining the incremental borrowing rate. As of May 31, 2026, the Company had ROU assets of approximately $9,029,000 and lease liabilities of approximately $9,519,000   recorded in the consolidated balance sheet. As of August 31, 2025, the Company had ROU assets of approximately $6,814,000 and lease liabilities of approximately $7,148,000 recorded in the consolidated balance sheet.

Earnings Per Common Share

Basic earnings per common share for each of the three and nine months ended May 31, 2026 and 2025 were computed based on the weighted average number of common shares outstanding. Diluted earnings per share for those periods have been computed based on the weighted average number of common shares outstanding, giving effect to all potentially dilutive common shares that were outstanding during the respective periods. Potentially dilutive common shares represent 40,000 common shares issuable upon conversion of 36,000 shares of Series A convertible preferred stock, which were outstanding at each of May 31, 2026 and 2025.

Foreign Currency Translation and Transactions

Assets and liabilities recorded in functional currencies other than the U.S. dollar (specifically, Canadian dollars used to record the assets and liabilities for Bisco Industries limited) are translated into U.S. dollars at the period-end rate of exchange. The exchange rate for Canadian dollars to U.S. dollars on May 31, 2026 and 2025 was $0.72 and $0.73, respectively. The resulting balance sheet translation

adjustments are charged or credited directly to accumulated other comprehensive income (loss). Revenue and expenses are transacted at the average exchange rates for each of the three and nine months ended May 31, 2026 and 2025. The average exchange rates for the nine months ended May 31, 2026 and 2025 were $0.72 and $0.71, respectively. All foreign sales, excluding Canadian sales, are denominated in U.S. dollars and, therefore, are not subject to foreign currency risk exposure.

Segment Reporting

The Company adopted Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures as of the fiscal year ended August 31, 2025 and a retroactive implementation to the fiscal year ended August 31, 2024 (“fiscal 2024”). This ASU enhances entities’ disclosures about operating segments, products and services, geographic areas and major customers.  The Company’s sole reportable segment is the industrial distribution business conducted through Bisco Industries and its Canadian subsidiary. The Company’s revenues are primarily comprised of product sales of electronic components, cable components, and a large variety of fasteners and hardware.

The Company’s Chief Operating Decision Maker (“CODM”), Don Wagner, President and Chief Operating Officer of Bisco Industries, Inc., reviews the Company’s consolidated results and allocates resources at the enterprise level. The Company’s operations are conducted through its wholly-owned industrial distribution business, which operates across 51 sales offices and seven distribution centers and one sales office in each of the Philippines and Mexico. Although the business is conducted across multiple sales offices and distribution centers, management concluded that the nature of the operations, the economic environment, and the way resources are managed and how performance is evaluated, support a single-segment determination.  The CODM reviews consolidated results to assess performance and allocate resources. Accordingly, the accompanying consolidated financial statements reflect the results of the single operating segment.  Management considered the guidance in Accounting Standards Codification (“ASC  ”) 280-10-50-4 and determined that the single reportable segment is managed on a consolidated basis.  Because the CODM manages the business as a single integrated unit, management has identified one operating segment and one reportable segment in accordance with ASC 280.

Concentrations

Net sales to customers outside the United States were approximately 13.4% and 11.0% of revenues for the three months ended May 31, 2026 and 2025, respectively, and related accounts receivable for international customers were approximately 12.8% and 10.0% of total accounts receivable as of May 31, 2026 and 2025, respectively. Sales to customers in Canada accounted for approximately 26.0% and 23.0% of such international sales for the three months ended May 31, 2026 and 2025, respectively. Sales to customers located within Asia accounted for approximately 36.8% and 41.0% of such international sales for the three months ended May 31, 2026 and 2025, respectively. Sales to customers located within other countries accounted for approximately 37.2% and 36.0% of such international sales for the three months ended May 31, 2026 and 2025, respectively.

Net sales to customers outside the United States were approximately 13.3% and 11.0% of revenues for the nine months ended May 31, 2026 and 2025, respectively.  The accounts receivable for international customers were approximately 12.8% and 10.0% of total accounts receivable as of May 31, 2026 and 2025, respectively. Sales to customers in Canada accounted for approximately 27.7% and 25.0% of such international sales for the nine months ended May 31, 2026 and 2025, respectively. Sales to customers located within Asia accounted for approximately 39.1% and 41.0% of such international sales for the nine months ended May 31, 2026 and 2025, respectively. Sales to customers located within other countries accounted for approximately 33.1% and 33.0% of such international sales for the nine months ended May 31, 2026 and 2025, respectively.

No single customer accounted for more than 10% of revenues for either of the three and nine months ended May 31, 2026 and 2025. In addition, no single customer’s receivable balance accounted for more than 10% of the Company’s customer receivables as of either May 31, 2026 or 2025.

Significant Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which is intended to enhance transparency into the nature and function of expenses. The amendments require that on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation, amortization and depletion. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Upon adoption, ASU 2024-03 should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the impact ASU 2024-03 will have on our consolidated financial statements and related disclosures.

In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which is intended to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This ASU requires that on an annual basis, entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, this ASU requires entities to disclose additional information about income taxes paid, as well as additional disclosures of pretax income and income tax expense, and to remove the requirement to disclose certain items that are no longer considered cost beneficial or relevant. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. Upon adoption, ASU 2023-09 should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the impact ASU 2023-09 will have on our consolidated financial statements and related disclosures.

Other recently issued accounting pronouncements are not expected to have a material impact on the Company’s consolidated financial statements.

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Accrued Liabilities

9 Months Ended

May 31, 2026

Accrued Liabilities and Other Liabilities [Abstract]

Accrued Liabilities

Note 3.    Accrued Liabilities

The Company’s accrued liabilities as of May 31, 2026 and August 31, 2025 are summarized as follows (in thousands):

	May 31,		August 31,
	2026		2025
Accrued expenses and other current liabilities:
Accrued accounts payable	$	10,508	$	11,011
Accrued compensation and payroll		8,678		10,938
Accrued taxes		10,700		7,813
Total accrued expenses and other current liabilities	$	29,886	$	29,762

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Debt

9 Months Ended

May 31, 2026

Debt Disclosure [Abstract]

Debt

Note 4.    Debt

The Company has a $20,000,000 line of credit with Citizens Business Bank (the “Bank”) under a Business Loan Agreement dated as of April 12, 2024 (as amended from time to time, the “2024 Business Loan Agreement”). On February 15, 2026, the Company executed a Change in Terms Agreement (the “Amendment”) with the Bank to modify terms of the 2024 Business Loan Agreement. The Amendment (i) extended the expiration date of the line of credit under the Business Loan Agreement to February 15, 2028; (ii) provided that the interest rate under the revolving line of credit will not be less than 4.0% per annum or more than the maximum rate allowed by applicable law; and (iii) modified certain financial reporting covenants referenced in the 2024 Business Loan Agreement. Except as expressly modified, the terms of the existing indebtedness remain in full force and effect.

Borrowings on the line of credit with the Bank are secured by substantially all of the assets of the Company and its subsidiaries. The amount outstanding under this line of credit as of each of May 31, 2026 and August 31, 2025 was zero. The line of credit contains certain nonfinancial and financial covenants, including the maintenance of certain financial ratios. As of each of May 31, 2026 and August 31, 2025, the Company was in compliance with all such covenants. The line of credit is primarily utilized for vendor payments if sufficient cash is unavailable. When balances are present on the line of credit, it is paid down daily with excess cash in our main deposit bank account.

The Company also entered into a loan agreement with the Bank on July 12, 2019 to borrow up to $5,000,000 (the “Construction Loan”) for the primary purpose of financing tenant improvements at the Company’s corporate headquarters in Anaheim, California (the “Hunter Property”). The Construction Loan was a line of credit evidenced by a Promissory Note in the original principal amount of up to $5,000,000 with a maturity date of May 15, 2027. The terms of the Construction Loan provide that the Company may only request advances through July 15, 2020, and thereafter, the Construction Loan would convert to a term loan with a fixed interest rate of 4.6%, which is entitled to a .25% rate discount if a demand deposit account is held with the Bank. On July 15, 2020, the amount drawn on the Construction Loan and converted to a term loan (the “Term Loan”) was $4,807,000. Interest on the Term Loan is payable monthly. The interest rate was 4.35% at each of May 31, 2026 and August 31, 2025. Concurrent with the execution of this Term Loan, Bisco entered into a commercial security agreement, dated July 12, 2019, with the Bank, pursuant to which Bisco granted the Bank a security interest in substantially all of Bisco’s personal property to secure Bisco’s obligations under the Term Loan. The outstanding balance of the Term

Loan at May 31, 2026 and August 31, 2025 was $4,113,000 and $4,214,000, respectively. The Term Loan’s future principal due until maturity by fiscal year is as follows:

Fiscal Year	Principal Amount Due
2026	$	34,000
2027		4,079,000
Total	$	4,113,000

The Company has also entered into a business loan agreement (and related $100,000 promissory note) with the Bank in order to obtain a $100,000 letter of credit as security for the Company’s worker’s compensation requirements.

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Leases

9 Months Ended

May 31, 2026

Leases [Abstract]

Leases

Note 5.     Leases

The Company leases its facilities and automobiles under operating lease agreements (one distribution facility, located in Glendale Heights, IL, is leased from the Glen F. Ceiley and Barbara A. Ceiley Revocable Trust (the “Trust”), which is the grantor trust of Glen Ceiley, the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder).

Our operating lease agreements expire on various dates through March 2033 and require minimum rental payments ranging from $1,000 to $46,000 per month. Certain of the leases contain options for renewal under varying terms.

	May 31,			August 31,
	2026			2025
Operating lease assets:
Right-of-use assets	$	9,029,000		$	6,814,000
Operating lease liabilities:
Current lease liabilities	$	3,502,000		$	2,843,000
Long-term lease liabilities	$	6,017,000		$	4,305,000
Weighted average remaining lease terms		3.3 years			2.8 years
Incremental borrowing rate		7.3	%		7.2	%

The discount rate used on the operating ROU assets represented the Company’s incremental borrowing rate at lease inception.

Minimum future rental payments under operating leases are as follows:

Years Ending:
2026 (remaining three months)	$	1,070,000
2027		3,906,000
2028		2,681,000
2029		1,822,000
2030		910,000
2031		368,000
Thereafter		184,000
Future minimum lease payments	$	10,941,000
Less interest		(1,422,000)
Present value of minimum lease payments	$	9,519,000

Operating lease costs under these leases were approximately $1,055,000 and $857,000 for the three months ended May 31, 2026 and 2025, respectively.  Operating lease costs under these leases were approximately $3,085,000 and $2,508,000 for the nine months ended May 31, 2026 and 2025, respectively. Cash paid for amounts included in the measurement of lease liabilities were approximately $1,049,000 and $1,056,000 for the three months ended May 31, 2026 and 2025, respectively. Cash paid for amounts included in the measurement of lease liabilities were approximately $2,926,000 and $2,494,000 for the nine months ended May 31, 2026 and 2025, respectively.

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Related Party Transactions

9 Months Ended

May 31, 2026

Related Party Transactions [Abstract]

Related Party Transactions

Note 6.    Related Party Transactions

The Company leases its Chicago area sales office and distribution center located in Glendale Heights, Illinois under an operating lease agreement (the “Glendale Lease”) from the Trust, which is the grantor trust of Glen Ceiley, the Company’s Chief Executive Officer, Chairman of the Board, and majority shareholder. The Glendale Lease is a ten-year triple net lease with an initial monthly rental rate of $22,600, which is subject to annual rent increases of approximately 2.5% as set forth in the Glendale Lease. During the three months ended May 31, 2026 and 2025, the Company incurred expense related to the Glendale Lease of approximately $83,000 and $80,000, respectively. During the nine months ended May 31, 2026 and 2025, the Company incurred expense related to the Glendale Lease of approximately $248,000 and $241,000, respectively.

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Income Taxes

9 Months Ended

May 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Note 7.    Income Taxes

During the three months ended May 31, 2026 and 2025, the Company recorded an income tax provision of $4,640,000 and $3,162,000, respectively, resulting in an effective tax rate of 25.5% and 24.9%, respectively. The provision for income taxes increased by $1,478,000 in the three months period ended May 31, 2026 over the prior year period due to higher pre-tax income in the current period.

During the nine months ended May 31, 2026 and 2025, the Company recorded an income tax provision of $11,196,000 and $7,835,000, respectively, resulting in an effective tax rate of 25.5% and 25.3%, respectively. The provision for income taxes increased by $3,361,000 in the nine months period ended May 31, 2026 over the prior year period due to higher pre-tax income in the current period.

The current period effective tax rate differs from the statutory rate of 21% primarily due to the state tax rates and permanent book tax differences.

Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. For each of the three and nine months ended May 31, 2026 and 2025, the Company did not have a liability for any unrecognized tax benefit. The Company has elected to classify interest and penalties as a component of its income tax provision. For each of the three and nine months ended May 31, 2026 and 2025, the Company did not have a liability for penalties or interest. The Company does not expect any changes to its unrecognized tax benefit for the next three  months   that would materially impact its consolidated financial statements.

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Commitments and Contingencies

9 Months Ended

May 31, 2026

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8.    Commitments and Contingencies

From time to time, the Company may be subject to legal proceedings and claims which arise in the normal course of our business. Any such matters and disputes could be costly and time consuming, subject the Company to damages or equitable remedies, and divert management and key personnel from core business operations.

In January 2023, a class action lawsuit was filed with the Los Angeles County Superior Court against Bisco, alleging wage and hour violations and related claims. The class action covers a class of former and current employees of Bisco who were employed between January 13, 2019 and August 23, 2024. In March 2023, Plaintiff filed a First Amended Complaint that added claims under the California Private Attorneys General Act (“PAGA”). Both parties requested to stay the litigation pending mediation, which mediation occurred in April 2024. As a result of the mediation, the parties agreed in principle to settle this matter for approximately $7,500,000 which settlement amount, inclusive of payroll taxes, was increased to $7,795,000 in May 2025. In July 2025, the court approved the settlement.  In anticipation of this settlement, the Company accrued $7,390,000 and $285,000 in fiscal 2024 and fiscal 2023, respectively, and an additional $120,000 was accrued in fiscal 2025 to cover the remaining settlement expense. The Company made the full settlement payment in September 2025.

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Subsequent Events

9 Months Ended

May 31, 2026

Subsequent Events [Abstract]

Subsequent Events

Note 9.    Subsequent Events

Management has evaluated events subsequent to May 31, 2026, through the date that these unaudited condensed consolidated financial statements are filed with the SEC, for transactions and other events which may require adjustment of and/or disclosure in such financial statements.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	May 31, 2026	Feb. 28, 2026	Nov. 30, 2025	May 31, 2025	Feb. 28, 2025	Nov. 30, 2024	May 31, 2026	May 31, 2025
Pay vs Performance Disclosure
Net Income (Loss)	$ 13,565	$ 9,797	$ 9,320	$ 9,515	$ 6,763	$ 6,888	$ 32,682	$ 23,166

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Insider Trading Arrangements	3 Months Ended
	May 31, 2026
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Significant Accounting Policies and Significant Recent Accounting Pronouncements (Policies)

9 Months Ended

May 31, 2026

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates include allowance for credit losses, provision for slow moving and obsolete inventory, recoverability of the carrying value and estimated useful lives of long-lived assets, and the valuation allowance against deferred tax assets, if any. Actual results could differ from those estimates.

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in conformity with GAAP for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. In the opinion of management, all adjustments considered necessary in order to make the financial statements not misleading have been included.

Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations for presentation of interim financial information. Therefore, the condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2025 (“fiscal 2025”). The condensed consolidated balance sheet as of August 31, 2025 and related disclosures were derived from the Company’s audited consolidated financial statements as of August 31, 2025. Operating results for the three and nine months ended May 31, 2026 are not necessarily indicative of the results that may be expected for future quarterly periods or the entire fiscal year.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements for all periods presented include the accounts of EACO, its wholly-owned subsidiary, Bisco, and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited (all of which are collectively referred to herein as the “Company”, “we”, “us” and “our”). All significant intercompany transactions and balances have been eliminated in consolidation.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The Company regularly uses its excess cash from operating activities to purchase short- term investments. The Company may liquidate these investments time to time when cash is needed to cover operating or extraordinary expenses.

Allowance for Credit Losses

Allowance for Credit Losses

We maintain an allowance for credit losses for estimated losses on our trade receivables, resulting from the inability of our customers to make payments for products sold. The allowance for credit losses is based on a variety of factors, including credit reviews, historical experience, length of time receivables are due, current economic trends and changes in customer payment behavior. We also record specific provisions for individual accounts when we become aware of a customer’s inability to meet its financial obligations to us, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The allowance for credit losses was $453,000 and $366,000 at May 31, 2026 and August 31, 2025, respectively.

Inventories, net

Inventories, net

Inventories consist primarily of electronic fasteners and components and are stated at the lower of cost or estimated net realizable value. Cost is determined using the average cost method. Inventories are adjusted for slow moving or obsolete items, which was approximately $2,065,000 and $1,975,000 at May 31, 2026 and August 31, 2025, respectively. The adjustments to inventory costs are based upon management’s review of inventories on-hand over their expected future utilization and length of time held by the Company.

Marketable Securities, Trading

Marketable Securities, Trading

The Company invests in marketable trading securities, which include long and short positions in equity securities. Securities are stated at fair value, which is determined using the quoted closing prices at each reporting date. Realized gains and losses on investment transactions are recognized as incurred in the consolidated statements of operations. Net unrealized gains and losses are reported in the consolidated statements of operations and represent the change in the market value of investment holdings during the period.

Property, Equipment, and Leasehold Improvements

Property, Equipment, and Leasehold Improvements

Property, equipment, and leasehold improvements are stated at cost net of accumulated depreciation and amortization. Depreciation and amortization expense is determined using the straight-line method over the estimated useful lives of the assets. The depreciable life for buildings is thirty-five years and five to seven years for furniture, fixtures and equipment. Leasehold improvements are amortized over the estimated useful life of the asset or the remaining lease term, whichever is less. Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or disposition of the asset, the cost and accumulated depreciation or amortization are removed from the accounts and any gains or losses are reflected in earnings.  Accumulated depreciation and amortization were $18,228,000 and $16,905,000 as of May 31, 2026 and August 31, 2025, respectively. For the three months ended May 31, 2026 and 2025, depreciation and amortization expense was $445,000 and $425,000, respectively. For the nine months ended May 31, 2026 and 2025, depreciation and amortization expense was $1,315,000 and $1,268,000, respectively.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company’s policy is to review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of the impairment review, assets are tested on an individual basis. The recoverability of the assets is measured by a comparison of the carrying value of each asset to the future net undiscounted cash flows expected to be generated by such assets. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds their estimated fair value.

Income Taxes

Income Taxes

Deferred taxes on income result from temporary differences between the reporting of income for financial statement and tax reporting purposes. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some or all of the deferred tax asset will not be realized. In making such determination, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income (if any), tax planning strategies and recent financial performance.

The Company provides for tax contingencies, if any, for federal, state, local and international exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these reserves requires judgments about tax issues, potential outcomes and timing. Although the outcome of these tax audits is uncertain, in management’s opinion, adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on our results of operations.

Revenue Recognition

Revenue Recognition

The Company derives its revenue primarily from product sales. Revenue recognition is determined through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, performance obligations are satisfied.

The Company’s contract with the customer is executed with a customer purchase order and performance obligations consist solely of product shipped to customers. Revenue from product sales is recognized upon transfer of control of promised products, which the Company’s standard terms and conditions are shipping point, to customers at a point in time in an amount that reflects the consideration we expect to receive in exchange for these products as stated on the Company’s invoice to the customer. Revenue is recognized net of returns and any taxes collected from customers. The Company generally offers industry standard contractual terms in its terms and conditions stated on its invoices and on the Company website.

Freight revenues associated with product sales are recognized at point of shipment and when the criteria discussed above have been met. Freight revenues represented less than 1% of total revenues for the three and nine months ended May 31, 2026 and 2025.

Operating Leases

Operating Leases

The Company determines if a contractual arrangement contains a lease, for accounting purposes, at contract inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, the current portion of operating lease liabilities, and the operating lease liabilities in the accompanying consolidated balance sheets.

The ROU assets represent the Company’s right to control the use of a leased asset for the contractual term, and lease liabilities represent the related obligation to make lease payments arising from the contractual arrangement. Operating lease ROU assets and lease liabilities are recognized at the contract commencement date based on the present value of lease payments over the contractual term. The operating lease ROU assets also include any prepaid lease payments made and exclude lease incentives. Lease expense is recognized on a straight-line basis over the contractual term.

Many of the Company’s leases include both lease components (such as fixed payment amounts including rent, taxes, and insurance costs) and non-lease components (such as common-area or other maintenance costs) which are accounted for as a single lease component as the Company has elected the practical expedient to group lease and non-lease components for all leases.

Many leases include one or more options to renew the contract. Therefore, renewals to extend the lease terms are not included in our ROU assets and lease liabilities as they are not reasonably certain to be exercised. The Company regularly evaluates the renewal options each reporting period and when they are reasonably certain to be exercised, management will include the lease renewal period in our contractual term when estimating the ROU assets and related liabilities.

Since most of the Company’s leases do not provide an implicit rate, as defined by GAAP, the Company uses an incremental borrowing rate based on our line of credit variable interest rate that is set at the bank prime index rate in order to determine the present value of the lease payments. The Company applies a portfolio approach for determining the incremental borrowing rate. As of May 31, 2026, the Company had ROU assets of approximately $9,029,000 and lease liabilities of approximately $9,519,000   recorded in the consolidated balance sheet. As of August 31, 2025, the Company had ROU assets of approximately $6,814,000 and lease liabilities of approximately $7,148,000 recorded in the consolidated balance sheet.

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per common share for each of the three and nine months ended May 31, 2026 and 2025 were computed based on the weighted average number of common shares outstanding. Diluted earnings per share for those periods have been computed based on the weighted average number of common shares outstanding, giving effect to all potentially dilutive common shares that were outstanding during the respective periods. Potentially dilutive common shares represent 40,000 common shares issuable upon conversion of 36,000 shares of Series A convertible preferred stock, which were outstanding at each of May 31, 2026 and 2025.

Foreign Currency Translation and Transactions

Foreign Currency Translation and Transactions

Assets and liabilities recorded in functional currencies other than the U.S. dollar (specifically, Canadian dollars used to record the assets and liabilities for Bisco Industries limited) are translated into U.S. dollars at the period-end rate of exchange. The exchange rate for Canadian dollars to U.S. dollars on May 31, 2026 and 2025 was $0.72 and $0.73, respectively. The resulting balance sheet translation

adjustments are charged or credited directly to accumulated other comprehensive income (loss). Revenue and expenses are transacted at the average exchange rates for each of the three and nine months ended May 31, 2026 and 2025. The average exchange rates for the nine months ended May 31, 2026 and 2025 were $0.72 and $0.71, respectively. All foreign sales, excluding Canadian sales, are denominated in U.S. dollars and, therefore, are not subject to foreign currency risk exposure.

Segment Reporting

Segment Reporting

The Company adopted Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures as of the fiscal year ended August 31, 2025 and a retroactive implementation to the fiscal year ended August 31, 2024 (“fiscal 2024”). This ASU enhances entities’ disclosures about operating segments, products and services, geographic areas and major customers.  The Company’s sole reportable segment is the industrial distribution business conducted through Bisco Industries and its Canadian subsidiary. The Company’s revenues are primarily comprised of product sales of electronic components, cable components, and a large variety of fasteners and hardware.

The Company’s Chief Operating Decision Maker (“CODM”), Don Wagner, President and Chief Operating Officer of Bisco Industries, Inc., reviews the Company’s consolidated results and allocates resources at the enterprise level. The Company’s operations are conducted through its wholly-owned industrial distribution business, which operates across 51 sales offices and seven distribution centers and one sales office in each of the Philippines and Mexico. Although the business is conducted across multiple sales offices and distribution centers, management concluded that the nature of the operations, the economic environment, and the way resources are managed and how performance is evaluated, support a single-segment determination.  The CODM reviews consolidated results to assess performance and allocate resources. Accordingly, the accompanying consolidated financial statements reflect the results of the single operating segment.  Management considered the guidance in Accounting Standards Codification (“ASC  ”) 280-10-50-4 and determined that the single reportable segment is managed on a consolidated basis.  Because the CODM manages the business as a single integrated unit, management has identified one operating segment and one reportable segment in accordance with ASC 280.

Concentrations

Concentrations

Net sales to customers outside the United States were approximately 13.4% and 11.0% of revenues for the three months ended May 31, 2026 and 2025, respectively, and related accounts receivable for international customers were approximately 12.8% and 10.0% of total accounts receivable as of May 31, 2026 and 2025, respectively. Sales to customers in Canada accounted for approximately 26.0% and 23.0% of such international sales for the three months ended May 31, 2026 and 2025, respectively. Sales to customers located within Asia accounted for approximately 36.8% and 41.0% of such international sales for the three months ended May 31, 2026 and 2025, respectively. Sales to customers located within other countries accounted for approximately 37.2% and 36.0% of such international sales for the three months ended May 31, 2026 and 2025, respectively.

Net sales to customers outside the United States were approximately 13.3% and 11.0% of revenues for the nine months ended May 31, 2026 and 2025, respectively.  The accounts receivable for international customers were approximately 12.8% and 10.0% of total accounts receivable as of May 31, 2026 and 2025, respectively. Sales to customers in Canada accounted for approximately 27.7% and 25.0% of such international sales for the nine months ended May 31, 2026 and 2025, respectively. Sales to customers located within Asia accounted for approximately 39.1% and 41.0% of such international sales for the nine months ended May 31, 2026 and 2025, respectively. Sales to customers located within other countries accounted for approximately 33.1% and 33.0% of such international sales for the nine months ended May 31, 2026 and 2025, respectively.

No single customer accounted for more than 10% of revenues for either of the three and nine months ended May 31, 2026 and 2025. In addition, no single customer’s receivable balance accounted for more than 10% of the Company’s customer receivables as of either May 31, 2026 or 2025.

Significant Recent Accounting Pronouncements

Significant Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which is intended to enhance transparency into the nature and function of expenses. The amendments require that on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation, amortization and depletion. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Upon adoption, ASU 2024-03 should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the impact ASU 2024-03 will have on our consolidated financial statements and related disclosures.

In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which is intended to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This ASU requires that on an annual basis, entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, this ASU requires entities to disclose additional information about income taxes paid, as well as additional disclosures of pretax income and income tax expense, and to remove the requirement to disclose certain items that are no longer considered cost beneficial or relevant. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. Upon adoption, ASU 2023-09 should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the impact ASU 2023-09 will have on our consolidated financial statements and related disclosures.

Other recently issued accounting pronouncements are not expected to have a material impact on the Company’s consolidated financial statements.

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Accrued Liabilities (Tables)

9 Months Ended

May 31, 2026

Accrued Liabilities and Other Liabilities [Abstract]

Schedule of accrued liabilities

	May 31,		August 31,
	2026		2025
Accrued expenses and other current liabilities:
Accrued accounts payable	$	10,508	$	11,011
Accrued compensation and payroll		8,678		10,938
Accrued taxes		10,700		7,813
Total accrued expenses and other current liabilities	$	29,886	$	29,762

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Debt (Tables)

9 Months Ended

May 31, 2026

Debt Disclosure [Abstract]

Schedule of future principal maturity of construction loan

Fiscal Year	Principal Amount Due
2026	$	34,000
2027		4,079,000
Total	$	4,113,000

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Leases (Tables)

9 Months Ended

May 31, 2026

Leases [Abstract]

Schedule of information related to operating lease

	May 31,			August 31,
	2026			2025
Operating lease assets:
Right-of-use assets	$	9,029,000		$	6,814,000
Operating lease liabilities:
Current lease liabilities	$	3,502,000		$	2,843,000
Long-term lease liabilities	$	6,017,000		$	4,305,000
Weighted average remaining lease terms		3.3 years			2.8 years
Incremental borrowing rate		7.3	%		7.2	%

Schedule of minimum future rental payments

Years Ending:
2026 (remaining three months)	$	1,070,000
2027		3,906,000
2028		2,681,000
2029		1,822,000
2030		910,000
2031		368,000
Thereafter		184,000
Future minimum lease payments	$	10,941,000
Less interest		(1,422,000)
Present value of minimum lease payments	$	9,519,000

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Organization and Basis of Presentation (Details)	May 31, 2026 facility
Product Information
Distribution centers	7
The United States of America and Canada
Product Information
Sales offices	51
Mexico
Product Information
Sales offices	1
Philippines
Product Information
Sales offices	1

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Trade Accounts Receivable
Allowance for credit losses	$ 453	$ 366

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Inventories, Net (Details) - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Inventories
Slow moving or obsolete items	$ 2,065	$ 1,975

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Property, Equipment, and Leasehold Improvements - Useful Lives (Details)	May 31, 2026
Building
Property, Equipment, and Leasehold Improvements
Property, plant and equipment, useful life	35 years
Leasehold improvements
Property, Equipment, and Leasehold Improvements
Property, Plant, and Equipment, Useful Life, Term, Description	us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember
Furniture and fixtures | Minimum
Property, Equipment, and Leasehold Improvements
Property, plant and equipment, useful life	5 years
Furniture and fixtures | Maximum
Property, Equipment, and Leasehold Improvements
Property, plant and equipment, useful life	7 years
Machinery and equipment | Minimum
Property, Equipment, and Leasehold Improvements
Property, plant and equipment, useful life	5 years
Machinery and equipment | Maximum
Property, Equipment, and Leasehold Improvements
Property, plant and equipment, useful life	7 years

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Property, Equipment, and Leasehold Improvements - Accumulated Depreciation and Amortization (Details) - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
Accumulated depreciation and amortization	$ 18,228	$ 16,905

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Property, Equipment, and Leasehold Improvements - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Depreciation and Amortization
Depreciation and amortization expense	$ 445	$ 425	$ 1,315	$ 1,268

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Revenue Recognition (Details)	9 Months Ended
	May 31, 2026	May 31, 2025
Revenue from Contract with Customer Benchmark | Product Concentration Risk | Cargo and Freight | Maximum
Product Information
Concentration risk, percentage (as a percent)	1.00%	1.00%

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Operating Leases (Details) - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Operating lease assets:
Right-of-use assets	$ 9,029	$ 6,814
Operating lease liabilities:
Operating lease liability	$ 9,519	$ 7,148

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Earnings Per Common Share (Details) - shares	9 Months Ended
	May 31, 2026	May 31, 2025
Weighted Average Number of Shares Outstanding, Diluted, Adjustment
Incremental common shares attributable to dilutive effect of conversion of preferred stock (in shares)	40,000	40,000
Convertible Preferred Stock
Preferred stock, shares issued (in shares)	36,000	36,000

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Foreign Currency Translation and Transactions (Details) - $ / $	9 Months Ended
	May 31, 2026	May 31, 2025
Foreign Currency Translation and Transactions
Foreign currency exchange rate, translation	0.72	0.73
Foreign currency exchange rate, translation, average	0.72	0.71

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Segment Reporting - Organization (Details)	May 31, 2026 facility
Product Information
Distribution centers	7
The United States of America and Canada
Product Information
Sales offices	51
Mexico
Product Information
Sales offices	1
Philippines
Product Information
Sales offices	1

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Segment Reporting - General Information (Details) - segment	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Segment Reporting, Disclosure of Entity's Reportable Segments
Segment Reporting, CODM, Individual Title and Position or Group Name	srt:PresidentMember	srt:PresidentMember	srt:PresidentMember	srt:PresidentMember
Number of operating segments	1	1	1	1
Number of reportable segments	1	1	1	1

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Concentrations (Details) - Geographic Concentration Risk	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Revenue from Contract with Customer Benchmark | CANADA
Concentrations
Concentration risk, percentage (as a percent)	26.00%	23.00%	27.70%	25.00%
Revenue from Contract with Customer Benchmark | Asia
Concentrations
Concentration risk, percentage (as a percent)	36.80%	41.00%	39.10%	41.00%
Revenue from Contract with Customer Benchmark | Non-US
Concentrations
Concentration risk, percentage (as a percent)	13.40%	11.00%	13.30%	11.00%
Revenue from Contract with Customer Benchmark | Other
Concentrations
Concentration risk, percentage (as a percent)	37.20%	36.00%	33.10%	33.00%
Accounts Receivable | Non-US
Concentrations
Concentration risk, percentage (as a percent)	12.80%	10.00%	12.80%	10.00%

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Significant Accounting Policies and Significant Recent Accounting Pronouncements - Significant Recent Accounting Pronouncements (Details)	May 31, 2026
Accounting Standards Update 2024-03
Significant Recent Accounting Pronouncements
Change in Accounting Principle, Accounting Standards Update, Adopted	false
Accounting Standards Update 2023-09
Significant Recent Accounting Pronouncements
Change in Accounting Principle, Accounting Standards Update, Adopted	false

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Accrued Liabilities (Details) - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Accrued expenses and other current liabilities:
Accrued accounts payable	$ 10,508	$ 11,011
Accrued compensation and payroll	8,678	10,938
Accrued taxes	10,700	7,813
Total Accrued expenses and other current liabilities	$ 29,886	$ 29,762

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Debt - General Information (Details) - USD ($) $ in Thousands			9 Months Ended
	Feb. 15, 2026	Jul. 12, 2019	May 31, 2026	Aug. 31, 2025	May 10, 2024	Jul. 15, 2020	Jul. 12, 2016
Debt
Long-term debt			$ 4,113
Line of Credit
Debt
Line of credit facility, maximum borrowing capacity					$ 20,000
Debt Instrument, maturity date	Feb. 15, 2028
Long-term debt			$ 0	$ 0
Line of Credit | Minimum
Debt
Debt instrument, interest rate, stated percentage (as a percent)	4.00%
Construction Loans
Debt
Debt instrument, issuance date		Jul. 12, 2019
Debt Instrument, maturity date			May 15, 2027
Debt instrument, interest rate, stated percentage (as a percent)			4.35%	4.35%
Long-term debt			$ 4,113	$ 4,214
Debt instrument, face amount		$ 5,000	$ 5,000			$ 4,807
Debt instrument, interest rate, stated percentage, before rate discount (as a percent)						4.60%
Debt instrument, interest rate, stated percentage, rate discount (as a percent)						0.25%
Notes Payable to Banks
Debt
Debt instrument, face amount							$ 100
Letter of Credit
Debt
Debt instrument, face amount							$ 100

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Debt - Maturity Schedule (Details) $ in Thousands	May 31, 2026 USD ($)
Long-Term Debt, Fiscal Year Maturity
2026	$ 34
2027	4,079
Total	$ 4,113

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Leases - General Information (Details) $ in Thousands	May 31, 2026 USD ($) facility
Lessee, Operating Lease, Description
Distribution centers | facility	7
Minimum
Lessee, Operating Lease, Description
Lessee, operating lease, base rent, amount, monthly | $	$ 1
Maximum
Lessee, Operating Lease, Description
Lessee, operating lease, base rent, amount, monthly | $	$ 46
Glendale Lease
Lessee, Operating Lease, Description
Distribution centers | facility	1

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Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Operating lease assets:
Right-of-use assets	$ 9,029	$ 6,814
Operating lease liabilities:
Current lease liabilities	3,502	2,843
Long-term lease liabilities	6,017	4,305
Operating lease liability	$ 9,519	$ 7,148

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Leases - Other Information (Details)	May 31, 2026	Aug. 31, 2025
Lessee Disclosure
Weighted average remaining lease terms	3 years 3 months 18 days	2 years 9 months 18 days
Weighted average discount rate (as a percent)	7.30%	7.20%

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Leases - Minimum Future Rental Payments (Details) $ in Thousands	May 31, 2026 USD ($)
Minimum Future Rental Payments
2026 (remaining three months)	$ 1,070
2027	3,906
2028	2,681
2029	1,822
2030	910
2031	368
Thereafter	184
Future minimum lease payments	$ 10,941

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Leases - Gross Difference (Details) - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Lessee, Operating Lease, Liability, to be Paid, Gross Difference
Future minimum lease payments	$ 10,941
Less interest	(1,422)
Present value of minimum lease payments	$ 9,519	$ 7,148

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Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Lease, Cost
Operating lease cost	$ 1,055	$ 857	$ 3,085	$ 2,508

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Leases - Cash Paid (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Cash Flow, Operating Activities, Lessee
Operating lease, payments	$ 1,049	$ 1,056	$ 2,926	$ 2,494

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Related Party Transactions (Details) - Chief Executive Officer - Glendale Lease - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025	Nov. 21, 2017
Lessee, Operating Lease, Description
Lessee, operating lease, term of contract					10 years
Lessee, operating lease, base rent, amount, monthly					$ 22,600
Lessee, operating lease, rent increase, percentage, annual (as a percent)					2.50%
Income and Expenses, Lessee
Operating lease, expense	$ 83,000	$ 80,000	$ 248,000	$ 241,000

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Income Taxes - General Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount
Provision for income taxes	$ 4,640	$ 3,162	$ 11,196	$ 7,835
Provision for income taxes, increase (decrease)	$ 1,478		$ 3,361
Effective Income Tax Rate Reconciliation, Percent
Effective tax rate (as a percent)	25.50%	24.90%	25.50%	25.30%

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Income Taxes - Statutory Rate (Details)	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Effective Income Tax Rate Reconciliation, Percent
Statutory rate (as a percent)	21.00%	21.00%	21.00%	21.00%

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Income Taxes - Uncertainties (Details) - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Income Tax Uncertainties
Unrecognized tax benefits	$ 0	$ 0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued
Unrecognized tax benefits, income tax penalties and interest accrued	$ 0	$ 0

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Commitments and Contingencies (Details) - Class Action Lawsuit, Former and Current Employees - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2025	Aug. 31, 2024	Aug. 31, 2023	May 31, 2025	Apr. 30, 2024
Loss Contingency, Estimate
Loss contingency, estimate of possible loss				$ 7,795	$ 7,500
Loss contingency, loss in period	$ 120	$ 7,390	$ 285