Margins Expanded. Revenue Collapsed. Guess Which One Mattered.

On Friday, Enero Group reported FY26 results. The coverage headline: “margins expand despite revenue pressure.”

Translation from spin to arithmetic: revenue fell 7%, from $138.7 million to $129.5 million. EBITDA margin climbed from 10.2% to 11.8% — not because the business grew, but because costs got cut hard enough to make the percentage look better. CEO’s framing on the call: the result came from “disciplined focus on execution and cost management.”

📊 The market did the math too. It came out different.

Stock: -22%, straight to a fresh 52-week low — $0.295 down to $0.23. Investors weren’t grading on margin percentage. They were grading on the number that actually pays the bills — revenue — and revenue went the wrong direction.

💸 Cutting costs to protect a shrinking pie is not growth. It’s portion control. The slide deck called it expansion. The stock chart called it what it was.

Management expected credit for the discipline. The market priced in the decline instead.

Womp womp. 📊