Q2 FY2026
Filed Jul 29, 2026Endeavour Silver Announces Q2 2026 Financial Results
Revenue from operations increased 149% to $212.1 million, silver-equivalent production increased 36% to 3,437,794 ounces, and net earnings reached $66.5 million versus a $20.5 million loss in Q2 2025. Higher realized metal prices, higher sales volumes, Terronera production and a full quarter of Kolpa operations drove the improvement, while cash costs and AISC also rose sharply.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Silver ounces producedother | 1,943,955 | – | 31% |
| Gold ounces producedother | 10,474 | – | 35% |
| Lead tonnes producedother | 6,207 | – | 77% |
| Zinc tonnes producedother | 3,989 | – | 72% |
| Silver equivalent ounces producedother | 3,437,794 | – | 36% |
| Processed tonnesother | 509,576 | – | 68% |
| Revenue from operationsGAAP | $212.1 million | – | 149% |
| Silver ounces soldother | 2,054,108 | – | 41% |
| Gold ounces soldother | 10,823 | – | 40% |
| Realized silver price per ouncenon-GAAP | $70.16 | – | 113% |
| Realized gold price per ouncenon-GAAP | $4,305 | – | 30% |
| Cost of salesGAAP | $138.1 million | – | – |
| Mine operating earningsGAAP | $74.0 million | – | 855% |
| Mine operating cash flow before taxesnon-GAAP | $99.9 million | – | 336% |
| Operating earningsGAAP | $64.7 million | – | – |
| Net earningsGAAP | $66.5 million | – | 425% |
| Adjusted net earningsnon-GAAP | $44.8 million | – | 589% |
| Earnings per share – basicGAAP | $0.22 | – | 414% |
| Adjusted earnings per share – basicnon-GAAP | $0.15 | – | 600% |
| EBITDAnon-GAAP | $110.9 million | – | 7807% |
| Adjusted EBITDAnon-GAAP | $90.0 million | – | 736% |
| Cash from operating activitiesGAAP | $39.8 million | – | – |
| Operating cash flow before working capital changesnon-GAAP | $44.9 million | – | – |
| Operating cash flow before working capital changesnon-GAAP | $45.0 million | – | 213% |
| Cash costs per silver ouncenon-GAAP | $23.52 | – | 53% |
| Total production costs per ouncenon-GAAP | $36.69 | – | 45% |
| All-in sustaining costs per ouncenon-GAAP | $36.89 | in line with Q1 2026 | 47% |
| Direct operating costs per tonnenon-GAAP | $161.73 | 13% lower | 14% |
| Direct costs per tonnenon-GAAP | $219.62 | – | 9% |
| Capital expenditures sustainingnon-GAAP | $18.9 million | – | – |
| Growth capital expendituresnon-GAAP | $8.9 million | – | – |
| Property, plant and equipment expenditures per Consolidated Statement of Cash FlowsGAAP | $27.8 million | – | – |
| Exploration, evaluation and development expenseGAAP | $6.4 million | – | – |
What drove it
- Revenue from operations was driven by higher metal prices and higher volumes of silver and gold ounces sold.
- The addition of Terronera and a full quarter of Kolpa operations supported higher sales volumes and mine operating earnings.
- A significant portion of the Kolpa plant expansion was commissioned at the end of Q1 2026, resulting in a 36% increase in throughput during Q2 2026 compared to Q1 2026.
- The Terronera LNG plant began commissioning in June and is now in operation.
- The $21.7 million gain on derivative contract revaluations contributed to Q2 2026 earnings before taxes of $79.5 million.
Concerns
- Cash costs per silver ounce increased 53% to $23.52, mainly due to higher metal prices causing higher royalties and third-party material costs.
- AISC per silver ounce increased 47% to $36.89, predominantly due to higher cash costs and higher sustaining capital expenditures, particularly at Terronera.
- Direct operating costs per tonne increased 14% to $161.73, driven by Terronera, higher costs at Guanaceví and Kolpa, and a Mexican peso that was 12% stronger on average than in Q2 2025.
- Finance costs increased to $5.7 million from $1.1 million, primarily due to a $5.1 million finance charge related to senior convertible notes issued in December 2025.
- Investment and other losses were $2.6 million, compared with income of $0.7 million in Q2 2025, largely due to revaluation of Guanajuato Silver shares received in the Bolañitos sale.
What to watch
- Terronera mine complex ramp-up through Q3 2026.
- Operational impact from the Kolpa plant expansion after the reported 36% Q2 throughput increase versus Q1 2026.
- Cash-cost and AISC progression amid higher royalties, third-party material costs, sustaining capital expenditures and Mexican peso effects.
- Development spending on Pitarrilla and exploration work at Kolpa.
- The reported $236.6 million cash position and $214.4 million working capital.
Balance sheet and cash flow
- Cash: $236.6 million as at June 30, 2026.
- Working capital: $214.4 million as at June 30, 2026.
- Current assets: $435.4 million as at June 30, 2026.
- Current liabilities: $221.0 million as at June 30, 2026.
- Cash from operating activities: $39.8 million for the three months ended June 30, 2026.
- Property, plant and equipment expenditures per Consolidated Statement of Cash Flows: $27.8 million for the three months ended June 30, 2026.
Analysis
Endeavour reported a substantial year-over-year improvement in Q2 2026. Revenue from operations rose 149% to $212.1 million as silver-equivalent production increased 36% to 3,437,794 ounces. Silver production rose 31% to 1,943,955 ounces and gold production rose 35% to 10,474 ounces. Silver ounces sold increased 41% to 2,054,108 and gold ounces sold increased 40% to 10,823, while realized silver and gold prices rose to $70.16 per ounce and $4,305 per ounce, respectively.
The higher sales and price environment translated into mine operating earnings of $74.0 million, compared with $7.7 million in Q2 2025, and net earnings of $66.5 million, compared with a net loss of $20.5 million. Adjusted net earnings were $44.8 million and adjusted EBITDA was $90.0 million. The release attributes the operating improvement to higher metal prices, higher volumes sold, Terronera's addition and a full quarter of Kolpa operations. A $21.7 million gain on derivative contract revaluations also supported earnings.
Costs increased materially against the prior-year comparison. Cash costs per silver ounce rose 53% to $23.52 and AISC rose 47% to $36.89. Management cited higher royalties and third-party material costs as key cash-cost drivers, while higher sustaining capital expenditures, particularly at Terronera, also raised AISC. Direct operating costs per tonne increased 14% to $161.73, although management stated that Q2 2026 costs per tonne were 13% lower than Q1 2026.
Operating capacity expanded during the quarter. The commissioning of a significant portion of the Kolpa plant expansion at the end of Q1 2026 resulted in a 36% throughput increase during Q2 2026 compared to Q1 2026. Terronera's LNG plant began commissioning in June and is now operating, with mine-complex ramp-up planned through Q3 2026. Exploration expense increased to $6.4 million as the Company advanced Pitarrilla and conducted exploration work at Kolpa.
The balance sheet showed $236.6 million in cash and $214.4 million in working capital at June 30, 2026. Cash from operating activities was $39.8 million, and property, plant and equipment expenditures were $27.8 million. The release did not provide quantitative forward production, cost, revenue or financial guidance, so the principal near-term operating focus is execution of the Terronera ramp-up, continued Kolpa throughput performance, and the development of costs amid higher royalties, material costs and currency effects.
Management, verbatim
Endeavour delivered strong second quarter results, supported by higher production, record ounces sold and improved mine operating cash flow.
Dan Dickson, Chief Executive Officer
The successful increase in throughput at Kolpa and our strong cash position provide a solid foundation as we continue to advance our growth initiatives in the second half of the year, while delivering long-term value for our shareholders.
Dan Dickson, Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative forward guidance for production, costs, revenue, margins, operating expenses, tax rate or capital expenditures was not provided.
- Prior-period outlook was not provided.
- Gross profit and gross margin were not reported.
- Debt balances were not reported.
- Free cash flow was not reported.
- Share repurchases, dividends and other capital-return amounts were not reported.
- Segment revenue was not reported.
- Diluted earnings per share was not reported.
- A tax rate was not reported.
- Prior-quarter values were not reported for most financial and operating metrics.
- The filing presents two different reported Q2 operating cash flow before working capital changes figures: $45.0 million in the Financial Overview and $44.9 million in the reconciliation.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.