Elemental Royalty (NASDAQ: ELE) revenue triples but EPS holds flat at $0.06

Posted by Hanz Christensen on Nov 11th, 2026

What happened

Elemental Royalty Corporation (NASDAQ: ELE) lifted third-quarter revenue to $20.8 million from $6.9 million a year earlier. The unaudited statements, approved by the board Nov. 9, also detail two acquisitions and a larger credit line.

Diluted earnings per share were $0.06 in both quarters. The weighted average basic share count rose 167.2% to 65.7 million from 24.6 million. The company issued 31,500,450 shares for EMX Royalty Corp. in November 2025 and 8,105,440 more for Vizsla Royalties Corp. in September.

Key numbers

Metric	Latest	Change	Source
Q3 revenue	$20.8 million	from $6.9 million, +203.3%	Calculated from SEC 6-K
Nine-month revenue	$68.9 million	from $27.6 million, +149.8%	Calculated from SEC 6-K
Q3 net income	$3.75 million	from $1.37 million, +173.3%	Calculated from SEC 6-K
Q3 diluted EPS	$0.06	from $0.06	SEC 6-K
Q3 weighted average basic shares	65.7 million	from 24.6 million, +167.2%	Calculated from SEC 6-K
Committed credit facility (Oct. 26, 2026 vs. prior)	$250.0 million	from $150.0 million, +66.7%	Calculated from SEC 6-K

What the quarter shows

By OptimistFi's calculation, third-quarter revenue grew 203.3%. Nine-month revenue grew 149.8%, to $68.9 million from $27.6 million. Gross margin after depletion was 68.1%, up from 64.3% a year earlier. Gross profit was $14.2 million against $4.4 million.

Earnings moved less than sales. Net income was $3.75 million against $1.37 million in the quarter, and $8.43 million against $4.98 million over nine months. Nine-month diluted EPS fell to $0.13 from $0.20.

Operating cash flow was $13.2 million in the quarter against $4.0 million a year earlier. Profit from operations of $8.3 million includes $2.8 million of other income. The company also booked a $2.2 million loss on revaluation of financial instruments.

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What the two deals added

Vizsla closed Sept. 14 through a court-approved plan of arrangement. Elemental paid C$82.0 million in cash and issued shares for 100% of the company. Vizsla holds net smelter return royalties of 2.0% to 3.5% on the Panuco silver-gold project in Mexico.

The Panuco royalties last for the life of the mine, with no caps, buyback rights or step-down provisions. They cover existing mineral resources. The filing treats the deal as an asset acquisition at a purchase consideration of $199.5 million, with $204.2 million assigned to royalty interests.

That makes Panuco the largest line in the royalty table, ahead of Timok at $190.9 million carrying amount. The table shows no depletion charge on Panuco yet, so it has not started turning production into receipts.

On July 15, Elemental completed a $25.0 million investment in Quilla Resources Inc. and its subsidiary Minera Pampa de Cobre S.A.C., operator of the Chapi copper project in Peru. Of that, $5.0 million bought an added 1.0% royalty, lifting its stake over the Pampa Negra and Candelaria concessions from 2.0% to 3.0%. The other $20.0 million bought about 9% of Quilla's equity.

The financing figures

Cash fell to $23.0 million at Sept. 30 from $53.1 million at Dec. 31, 2025. Borrowings stood at $28.1 million after a $30.0 million drawdown in the quarter. There were none at year-end.

The filing also says the company increased its revolving credit facility for an acquisition and then drew $180.0 million to help fund the cash price. That sits beside the Sept. 30 balance.

Note 10 ties the Oct. 26 upsizing to the closing of the Orion royalty and stream portfolio acquisition. Committed capacity rose to $250.0 million from $150.0 million. A $50.0 million accordion could take it to $300.0 million, subject to conditions. Interest is SOFR plus 2.25% to 3.50%.

Covenants require interest coverage above 3.00 to 1 and net leverage below 3.50 to 1. The company was in compliance at Sept. 30.

Why it matters

OptimistFi has argued that Elemental works only if its larger portfolio keeps turning third-party mine output into high-cash-margin receipts without overpaying for growth. The margin gain and the jump in operating cash flow support the first half of that view. The second half is untested, so the filing leaves the case mixed.

Three items qualify the quarter. Other income lifted operating profit. Nine-month EPS is lower than last year's. The share count has grown faster than most per-share gains. Buying Panuco on resources rather than production also adds assets that are not yet depleting.

Leverage is the other limit. The warrant liability of $9.4 million and the larger credit line add obligations just as acquisition spending rises.

What's next

The company expects to finalize the fair values for the EMX acquisition by Nov. 13, 2026 at the latest. Further adjustments would change how the filing carries those royalty interests.

The next quarterly report is the first to cover the period after the Oct. 26 Orion closing and the upsized facility. Rising revenue and operating cash flow with covenant headroom would strengthen the case. Weaker margins or a higher net leverage ratio would weaken it.