AWXHIGH SIGNALFINANCIAL10-K

Avalon Holdings experienced a dramatic 75.6% decline in net income despite growing revenues, driven by nearly doubled debt levels and significantly higher interest expenses.

The company's profitability has been severely impacted by its debt strategy, with total debt nearly doubling to $23.5M while interest expense jumped 43% to $2.1M. The emergence of a single customer representing 10% of consolidated revenues (18% of waste management segment) introduces new concentration risk that didn't exist in the prior year when no customer exceeded 10% of total revenues.

Comparing 2026-03-19 vs 2025-03-20View on EDGAR →
FINANCIAL ANALYSIS

Avalon's financial performance deteriorated significantly with net income plummeting 75.6% to just $321K and operating income declining 34% despite modest revenue growth indicated by higher receivables and current assets. The company nearly doubled its debt to $23.5M, resulting in 43% higher interest expenses that crushed profitability, though operating cash flow remained resilient at $3.8M with reduced capital expenditures. The combination of dramatically higher leverage, compressed margins, and maintained cash generation suggests a company in transition that has prioritized growth or acquisition financing over near-term profitability.

FINANCIAL STATEMENT CHANGES
Total Debt
Balance Sheet
+99.3%
$11.8M→$23.5M

Debt increased 99.3% — substantial leverage increase; assess whether deployed for growth or covering losses.

Net Income
P&L
-75.6%
$1.3M→$321K

Net income declined 75.6% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
+46.8%
$2.8M→$4.1M

Cash position surged 46.8% — strong cash generation or capital raise providing significant financial cushion.

Interest Expense
P&L
+43.3%
$1.5M→$2.1M

Interest expense surged 43.3% — significant debt increase or rising rates materially impacting earnings.

Operating Income
P&L
-34.1%
$3.1M→$2.0M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Capital Expenditure
Cash Flow
-23.3%
$2.3M→$1.7M

Capex reduced 23.3% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Current Assets
Balance Sheet
+16.5%
$14.6M→$17.0M

Current assets grew 16.5% — improving short-term liquidity or inventory/receivables build.

Accounts Receivable
Balance Sheet
+14.2%
$8.6M→$9.8M

Receivables grew 14.2% — monitor days sales outstanding for collection efficiency.

Operating Cash Flow
Cash Flow
+12.2%
$3.4M→$3.8M

Operating cash flow grew 12.2% — strong conversion of earnings to cash, healthy business fundamentals.

LANGUAGE CHANGES
NEW — 2026-03-19
PRIOR — 2025-03-20
ADDED
awx20251231e_10k.htm FY 2025 --12-31 false 0001061069 0001061069 us-gaap:CommonClassBMember 2026-03-09 0001061069 us-gaap:CommonClassAMember 2026-03-09 0001061069 2026-03-09 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
Assuming that the market value of Avalon Holdings Corporation s Class B Common Stock was the same as its Class A Common Stock by reason of its one-to-one conversion rights, the market value of Class B Common Stock held by non-affiliates of the registrant on March 9, 2026 was approximately $1,422.
The registrant had 3,287,647 shares of its Class A Common Stock and 611,784 shares of its Class B Common Stock outstanding as of March 9, 2026.
In 2025, one customer accounted for 10% of the consolidated net operating revenues and 18% of the waste management services segment s net operating revenues to external customers.
In 2024, no one customer accounted for more than 10% of the consolidated net operating revenues.
+7 more — sign up free →
REMOVED
awx20241231c_10k.htm FY 2024 --12-31 false 0001061069 false false false false true true true false true 0001061069 us-gaap:CommonClassBMember 2025-03-10 0001061069 us-gaap:CommonClassAMember 2025-03-10 0001061069 2025-03-10 2024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
Assuming that the market value of Avalon Holdings Corporation s Class B Common Stock was the same as its Class A Common Stock by reason of its one-to-one conversion rights, the market value of Class B Common Stock held by non-affiliates of the registrant on March 10, 2025 was approximately $1,714.
The registrant had 3,287,647 shares of its Class A Common Stock and 611,784 shares of its Class B Common Stock outstanding as of March 10, 2025.
In 2024, one customer of the waste management services segment accounted for 10% of the waste management services segment s net operating revenues to external customers and 6% of Avalon s consolidated net operating revenues.
In 2023, one customer of the waste management services segment accounted for 12% of the waste management services segment s net operating revenues to external customers and 6% of Avalon s consolidated net operating revenues.
+7 more — sign up free →
MORE FINANCIAL SIGNALS
PNRGHIGHPNRG achieved exceptional profitability improvement with net income surging 2,21...
2026-04-16
BNAIHIGHBNAI underwent a dramatic reverse stock split that reduced share count by 86% wh...
2026-04-16
LAKEHIGHLAKE's financial performance deteriorated significantly with operating losses wo...
2026-04-16
NXXTHIGHNextNRG experienced massive financial deterioration with operating losses explod...
2026-04-16
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →