Market Overview - Volatility in the U.S. stock market is expected to continue due to uncertainty regarding interest rate cuts, new tariffs, and geopolitical tensions, complicating portfolio management for individual investors [1] Investment Strategy - Selecting inappropriate stocks can negatively affect returns, undermining investment goals; adhering to broker advice is suggested as brokers possess extensive knowledge of stocks and the broader economy [2] Recommended Stocks - Broker-friendly stocks identified for potential healthy returns include BrightSpring Health Services (BTSG), GXO Logistics (GXO), BrightView Holdings (BV), Bloomin' Brands (BLMN), and Archer Daniels Midland Company (ADM) [3][9] Screening Methodology - A screening strategy was developed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks, incorporating the price/sales ratio as a valuation metric [4] Screening Criteria - The screening criteria include: - Top 75 companies with net upgrades in broker ratings over the last four weeks [5] - Top 10 stocks with positive earnings estimate revisions for the upcoming quarter [5] - Bottom 10% of stocks based on price/sales ratio [5] - Stocks priced above $5 to attract investor interest [5] - Average daily volume exceeding 100,000 shares over the last 20 trading days [6] - Top 3000 stocks by market capitalization [6] Company Highlights - **BrightSpring Health Services (BTSG)**: Expected earnings growth rate of 55.4% for 2025, with a projected revenue increase of 9.1% over 2024; currently holds a Zacks Rank 2 (Buy) [7][9] - **GXO Logistics (GXO)**: Benefits from increased e-commerce and cost-cutting efforts; projected revenue growth of 9.9% for 2025; currently holds a Zacks Rank 3 (Hold) [10][11] - **BrightView Holdings (BV)**: Largest commercial landscaper in the U.S., with expected earnings growth of 10.5% for 2025; currently holds a Zacks Rank 3 [12][13] - **Bloomin' Brands (BLMN)**: Performance driven by off-premise channels and technology upgrades; Zacks Consensus Estimate for 2025 earnings revised upward by 1.7% [14][15] - **Archer Daniels Midland Company (ADM)**: Focus on flexitarian diets and sustainable materials; currently holds a Zacks Rank 3 [16][17]

Financial Highlights and Guidance [Second Quarter Fiscal 2025 Summary](index=1&type=section&id=SECOND%20QUARTER%20FISCAL%202025%20SUMMARY) The company reported lower Q2 revenue but achieved record Adjusted EBITDA and announced a new share repurchase program Q2 FY2025 Key Financial Metrics (YoY) | Metric | Q2 FY2025 | Change (YoY) | Note | | :--- | :--- | :--- | :--- | | Net Service Revenues | $662.6 million | -1.5% | - | | Net Income | $6.4 million | -$27.3 million | Decrease driven by a $43.9M gain on divestiture in prior year | | Adjusted EBITDA | $73.5 million | +13.4% | Record high | | Adjusted EBITDA Margin | 11.1% | +150 bps | - | YTD FY2025 Key Financial Metrics | Metric | YTD FY2025 | Change (YoY) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $151.7 million | +$42.2 million | | Adjusted Free Cash Flow | $67.0 million | -$22.5 million | - The company announced a new **$100 million share repurchase program**[5](index=5&type=chunk) [Fiscal Year 2025 Guidance Update](index=1&type=section&id=COMPANY%20UPDATES%20FISCAL%20YEAR%202025%20GUIDANCE) BrightView raised its full-year Adjusted EBITDA and Adjusted Free Cash Flow guidance, citing strategic success Updated Fiscal Year 2025 Guidance | Metric | Prior Guidance | Updated Guidance | | :--- | :--- | :--- | | Total Revenue | $2.750 - $2.840 billion | $2.750 - $2.840 billion (Unchanged) | | Adjusted EBITDA | $335 - $355 million | $345 - $365 million (Raised) | | Adjusted Free Cash Flow | $40 - $60 million | $50 - $70 million (Raised) | - The guidance increase is attributed to the 'One BrightView' strategy, which has improved employee turnover and customer retention, contributing to **record Adjusted EBITDA** and a fortified balance sheet[4](index=4&type=chunk) Financial Performance [Total BrightView Operating Highlights](index=2&type=section&id=Fiscal%202025%20Results%20%E2%80%93%20Total%20BrightView) Total revenue declined due to strategic divestitures, while Adjusted EBITDA and margins grew from cost management Total BrightView Financial Summary (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | Change | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $662.6 | $672.9 | (1.5%) | $1,261.8 | $1,299.6 | (2.9%) | | Net Income (Loss) | $6.4 | $33.7 | (81.0%) | $(4.0) | $17.3 | (123.1%) | | Adjusted EBITDA | $73.5 | $64.8 | 13.4% | $125.6 | $111.5 | 12.6% | | Adjusted EBITDA Margin | 11.1% | 9.6% | +150 bps | 10.0% | 8.6% | +140 bps | | Adjusted EPS | $0.14 | $0.11 | 27.3% | $0.18 | $0.13 | 38.5% | - The Q2 revenue decrease was driven by a **$17.1 million reduction** in the commercial landscaping business, partially offset by a $7.5 million increase in development services[6](index=6&type=chunk) - The six-month revenue decrease was driven by a **$42.8 million reduction** in commercial landscaping and a $7.9 million decrease in snow removal, both primarily due to strategic reductions of non-core businesses[7](index=7&type=chunk) [Segment Performance](index=3&type=section&id=Fiscal%202025%20Results%20%E2%80%93%20Segments) Maintenance Services revenue fell while profitability rose; Development Services saw growth in both revenue and profit [Maintenance Services](index=3&type=section&id=Maintenance%20Services%20-%20Operating%20Highlights) Maintenance revenue declined from strategic exits, but cost controls boosted Adjusted EBITDA and expanded margins Maintenance Services Financials (in millions) | Metric | Q2 2025 | Q2 2024 | Change | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $492.8 | $510.5 | (3.5%) | $902.1 | $952.8 | (5.3%) | | Adjusted EBITDA | $56.3 | $55.1 | 2.2% | $91.0 | $86.5 | 5.2% | | Adjusted EBITDA Margin | 11.4% | 10.8% | +60 bps | 10.1% | 9.1% | +100 bps | - The decrease in revenue was primarily driven by **strategic reductions of non-core businesses**, with Commercial Landscaping services decreasing by $17.1 million (5.1%) in Q2[9](index=9&type=chunk) - The increase in Adjusted EBITDA Margin was primarily driven by **lower overhead from cost management initiatives**, which was partially offset by increased landscape maintenance labor costs[10](index=10&type=chunk)[12](index=12&type=chunk) [Development Services](index=4&type=section&id=Development%20Services%20-%20Operating%20Highlights) Development Services revenue and Adjusted EBITDA grew significantly, driven by higher project volumes and mix Development Services Financials (in millions) | Metric | Q2 2025 | Q2 2024 | Change | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $171.9 | $164.4 | 4.6% | $363.7 | $349.7 | 4.0% | | Adjusted EBITDA | $17.2 | $9.7 | 77.3% | $34.6 | $25.0 | 38.4% | | Adjusted EBITDA Margin | 10.0% | 5.9% | +410 bps | 9.5% | 7.1% | +240 bps | - The increase in revenue for both the quarter and six-month period was driven by an **increase in Development Services project volumes**[14](index=14&type=chunk)[16](index=16&type=chunk) - The significant increases in Adjusted EBITDA and its margin were primarily driven by the **revenue growth and a shift in the timing and mix of projects**[15](index=15&type=chunk)[17](index=17&type=chunk) [Cash Flow and Balance Sheet](index=4&type=section&id=Cash%20Flow%20and%20Balance%20Sheet) Operating cash flow increased, but higher capital spending reduced free cash flow while the balance sheet strengthened [Cash Flow Metrics](index=4&type=section&id=Total%20BrightView%20Cash%20Flow%20Metrics) Net cash from operations grew, but a surge in capital expenditures led to a decrease in Adjusted Free Cash Flow Cash Flow Summary (Six Months Ended March 31, in millions) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $151.7 | $109.5 | 38.5% | | Capital Expenditures | $92.3 | $22.7 | 306.6% | | Adjusted Free Cash Flow | $67.0 | $89.4 | (25.1%) | - The decrease in Adjusted Free Cash Flow was due to a **significant increase in cash used for capital expenditures**, which was only partially offset by the increase in net cash from operations[19](index=19&type=chunk) [Balance Sheet Metrics](index=5&type=section&id=Total%20BrightView%20Balance%20Sheet%20Metrics) The company reduced its Total Net Financial Debt and improved its net debt to Adjusted EBITDA leverage ratio Key Balance Sheet Ratios | Metric (in millions, except ratio) | Mar 31, 2025 | Sep 30, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Total Financial Debt | $859.9 | $877.3 | $931.2 | | Total Net Financial Debt | $718.6 | $736.9 | $753.9 | | Total Net Financial Debt to Adjusted EBITDA ratio | 2.1x | 2.3x | 2.4x | - **Total Net Financial Debt decreased by $18.3 million** from September 30, 2024, to March 31, 2025[22](index=22&type=chunk) Financial Statements [Consolidated Balance Sheets](index=10&type=section&id=BrightView%20Holdings%2C%20Inc.%20Consolidated%20Balance%20Sheets) Total assets and liabilities decreased slightly, with stable stockholders' equity at $1.26 billion Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $141.3 | $140.4 | | Total current assets | $715.5 | $780.1 | | Total assets | $3,324.8 | $3,391.8 | | **Liabilities & Equity** | | | | Total current liabilities | $504.8 | $543.3 | | Long-term debt, net | $798.9 | $802.5 | | Total liabilities | $1,556.4 | $1,609.4 | | Total stockholders' equity | $1,261.3 | $1,275.3 | [Consolidated Statements of Operations](index=11&type=section&id=BrightView%20Holdings%2C%20Inc.%20Consolidated%20Statements%20of%20Operations) Q2 net income fell sharply to $6.4 million due to a prior-year gain on divestiture Consolidated Statement of Operations (in millions) | Line Item | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net service revenues | $662.6 | $672.9 | $1,261.8 | $1,299.6 | | Gross profit | $147.5 | $152.0 | $274.3 | $285.9 | | Income from operations | $22.3 | $62.2 | $21.7 | $56.0 | | Gain on divestiture | - | $(43.9) | - | $(43.9) | | Net income (loss) | $6.4 | $33.7 | $(4.0) | $17.3 | [Consolidated Statements of Cash Flows](index=12&type=section&id=BrightView%20Holdings%2C%20Inc.%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow rose, but higher investing outflows significantly reduced the net increase in cash Consolidated Statement of Cash Flows (Six Months Ended March 31, in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $151.7 | $109.5 | | Net cash (used) provided by investing activities | $(83.4) | $32.3 | | Net cash (used) by financing activities | $(67.4) | $(31.5) | | **Net change in cash and cash equivalents** | **$0.9** | **$110.3** | Supplemental Information [Reconciliation of GAAP to Non-GAAP Financial Measures](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section details adjustments from GAAP Net Income to non-GAAP metrics like Adjusted EBITDA and Adjusted EPS Reconciliation of Net Income to Adjusted EBITDA (Q2 2025, in millions) | Description | Amount | | :--- | :--- | | Net income | $6.4 | | Income tax expense | $2.3 | | Interest expense, net | $12.8 | | Depreciation expense | $31.8 | | Amortization expense | $7.1 | | Business transformation costs | $7.8 | | Equity-based compensation | $4.6 | | Debt extinguishment | $0.7 | | **Adjusted EBITDA** | **$73.5** | Reconciliation of Cash Flow to Adjusted Free Cash Flow (Six Months 2025, in millions) | Description | Amount | | :--- | :--- | | Cash flows provided by operating activities | $151.7 | | Minus: Capital expenditures | $(92.3) | | Plus: Proceeds from sale of property and equipment | $7.6 | | **Adjusted Free Cash Flow** | **$67.0** | [Non-GAAP Financial Measures Definitions](index=8&type=section&id=Non-GAAP%20Financial%20Measures) The company defines non-GAAP metrics used to evaluate core operating performance, excluding certain items - **Adjusted EBITDA:** Net income before interest, taxes, depreciation, and amortization, further adjusted for non-cash, non-recurring, and other items[32](index=32&type=chunk) - **Adjusted Net Income:** Net income excluding amortization and other items used to calculate Adjusted EBITDA, adjusted for the tax effect of these exclusions[33](index=33&type=chunk) - **Adjusted Free Cash Flow:** Cash flows from operating activities minus capital expenditures, net of proceeds from the sale of property and equipment[35](index=35&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward%20Looking%20Statements) This release contains forward-looking statements subject to risks like competition, weather, and economic conditions - Statements are based on current expectations and are **not guarantees of future performance**[27](index=27&type=chunk) - Key risks include: **competitive pressures, customer relationships, weather conditions, supply chain issues, labor retention, and economic conditions**[27](index=27&type=chunk)[28](index=28&type=chunk) - Additional risk factors are detailed in the company's **Form 10-K** for the fiscal year ended September 30, 2024[29](index=29&type=chunk) [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) A conference call to discuss Q2 results is scheduled for May 8, 2025, with webcast and replay details provided - A conference call is scheduled for **May 8, 2025, at 8:30 a.m. EST**[23](index=23&type=chunk) - A live audio webcast and presentation materials will be accessible on the investor website: https://investor.brightview.com[23](index=23&type=chunk) - A replay will be available until May 22, 2025, by dialing (800) 839-3735 with access code 27525[24](index=24&type=chunk)

Core Insights - The market for bacterial vaginosis (BV) treatments in the U.S. is projected to reach $1.0 billion by 2033, driven by increasing incidence, public health awareness, and improved diagnostics [3][4]. Company Overview - Evofem Biosciences, Inc. is focused on women's sexual and reproductive health, with two FDA-approved products generating revenue [8]. - The company relaunched SOLOSEC in November 2024 and is promoting it alongside PHEXXI to OB/GYNs in the U.S. [9]. - Evofem is entering global markets through strategic partnerships, including a license agreement for launching products in the UAE in 2026 [9]. Product Development - SOLOSEC (secnidazole) is being studied for its efficacy in managing recurrent BV, with a recent study showing that once-weekly dosing may match or exceed the effectiveness of current CDC-recommended treatments [2][3]. - The study involved 24 women and indicated that the once-weekly dosing could improve adherence compared to more complex treatment regimens [3][5]. - SOLOSEC is currently approved for treating BV in women aged 12 and older, but its use for recurrent BV is still investigational [5][7]. Market Dynamics - BV affects approximately 21 million women in the U.S., with up to 50% experiencing recurrence within six months of treatment [4][6]. - The high recurrence rate of BV presents a significant burden on patients and the healthcare system, highlighting the need for more effective treatment options [4][6]. Strategic Initiatives - Evofem has entered into a definitive agreement to be acquired by Aditxt, Inc., aiming to enhance its focus on women's health innovations [10].

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $663 million, an increase of approximately 3% when adjusting for the unwinding of BES and the sale of U.S. Loans in the prior year [13][14] - Adjusted EBITDA for the second quarter reached a record $73.5 million, an increase of $8.6 million or 13% compared to the prior year [18] - Adjusted EBITDA margins expanded by 150 basis points to 11.1%, marking consecutive quarters of year-over-year margin expansion [18][19] - Net leverage at the end of the second quarter was 2.1 times, down from 2.4 times in the prior year, driven by lower debt levels and improved profitability [21] Business Line Data and Key Metrics Changes - Core snow revenue increased by $22 million or 15%, primarily due to increased snowfall in East Coast markets [15] - Development business revenue increased by 5% due to ongoing conversion of a high-quality backlog [16] - Adjusted EBITDA for the Development segment was $17.1 million, representing a record Q2 for this segment [18] Market Data and Key Metrics Changes - Approximately 60% of revenue is derived from recurring contract revenue, providing a resilient and predictable revenue base [16] - Customer retention rates improved by 170 basis points on a trailing twelve-month basis, indicating positive momentum [12][62] Company Strategy and Development Direction - The company is focused on transforming its business model and has raised its full-year guidance on adjusted EBITDA, margins, and free cash flow [5][25] - Initiatives include prioritizing employee satisfaction, enhancing service quality, and leveraging size and scale as the leading player in the commercial landscape industry [8][9] - The company is committed to a fleet refresh strategy and has ordered over 1,000 core production vehicles [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience against macroeconomic uncertainties, citing a diversified customer base and a strong backlog [9][10] - The company anticipates continued healthy cash flow generation and has raised its adjusted EBITDA guidance to $355 million, up from $345 million [25] - Management acknowledged potential impacts from tariffs and trade but emphasized minimal current effects on the business [84] Other Important Information - The company launched a $100 million share repurchase program, reflecting confidence in its valuation and commitment to returning capital to shareholders [22][23] - The company is actively managing its M&A pipeline and is well-positioned to execute against its strategy when opportunities arise [24] Q&A Session Summary Question: Impact of snow on revenue and core land - Management confirmed that increased snow revenue positively impacted results but noted it limited core land revenue by approximately $6 million [34][37] Question: Stock buyback strategy versus M&A - Management indicated a willingness to be aggressive in stock repurchases if the stock remains undervalued while also being open to M&A opportunities [38][40] Question: Labor availability and costs - Management reported improved employee turnover and a stable labor cost environment, with annual increases normalizing to 2% to 3% [51][57] Question: Customer retention differences among branches - Management highlighted that customer retention improvements are driven by strong branch leadership and engagement with customers [61][62] Question: Guidance increase and drivers - Management clarified that the increase in EBITDA guidance was primarily due to overall margin expansion rather than snow revenue [72][76] Question: Inflationary pressures and mitigation efforts - Management noted that labor cost increases are currently at or below historical ranges and that commodity prices have shown some deflation [96][97] Question: Confidence in achieving growth targets - Management expressed confidence in achieving mid-single-digit organic growth despite macro uncertainties, emphasizing a focus on long-term strategies [101][104]

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $663 million, an increase of approximately 3% when adjusting for the unwinding of BES and the sale of U.S. Loans in the prior year [11] - Adjusted EBITDA for the second quarter reached a record $73.5 million, an increase of $8.6 million or 13% compared to the prior year [16] - Adjusted EBITDA margins expanded by 150 basis points to 11.1%, marking another consecutive quarter of year-over-year margin expansion [16] Business Line Data and Key Metrics Changes - Core snow revenue increased by $22 million or 15%, primarily driven by increased snowfall in East Coast markets [12] - Development business revenue increased by 5% due to ongoing conversion of a high-quality backlog [12] - Adjusted EBITDA for the Development segment was $17.1 million, representing a record Q2 for this segment [16] Market Data and Key Metrics Changes - Approximately 60% of revenue is underpinned by recurring contract revenue, providing resilience against macroeconomic uncertainties [14] - Customer retention rates increased by 170 basis points on a trailing twelve-month basis [10] Company Strategy and Development Direction - The company is focused on transforming its business model and has raised its full-year guidance on adjusted EBITDA, margins, and free cash flow [4] - Initiatives include prioritizing employee satisfaction, reducing turnover, and enhancing customer retention [5][9] - The company is strategically deploying capital to support long-term profitable growth and differentiate itself from competitors [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience against macroeconomic dynamics, including inflation and labor costs [8] - The company is well-positioned to deliver results within guidance ranges despite uncertainties in the macro environment [15] - Management highlighted the importance of employee engagement and retention as key drivers for customer satisfaction and business growth [49][50] Other Important Information - The company launched a $100 million share repurchase program, reflecting confidence in its valuation and commitment to returning capital to shareholders [20][21] - Net leverage at the end of the second quarter was 2.1 times, down from 2.4 times in the prior year, indicating improved financial flexibility [19] Q&A Session Summary Question: Did the positive impact from snow take away expected revenue from Core Land? - Management confirmed that while snow positively impacted revenue, it limited the ability to put land in, resulting in about a 2% impact on the land business for the quarter [31][35] Question: How aggressive will the company be with the stock buyback versus M&A? - Management indicated they would continue to buy back shares opportunistically while also being open to M&A if the right deal arises, supported by a strong balance sheet [36][39] Question: What is the impact of labor availability and costs in the current political environment? - Management reported improved employee turnover and a strong position regarding labor costs, with increases at or below historical ranges [46][53] Question: What drives the expected improvement in core land performance in the second half? - Management attributed the expected improvement to increased customer retention and engagement, which would lead to more spending on ancillary work [99][100]

Core Insights - BrightView Holdings (BV) reported revenue of $662.6 million for the quarter ended March 2025, reflecting a year-over-year decline of 1.5% but exceeding the Zacks Consensus Estimate by 2.68% [1] - The company achieved an EPS of $0.14, which is an increase from $0.11 a year ago, representing a surprise of 16.67% over the consensus estimate of $0.12 [1] Revenue Breakdown - Maintenance Services revenue was $492.80 million, surpassing the estimated $475.15 million, but showing a year-over-year decline of 3.5% [4] - Development Services revenue reached $171.90 million, slightly above the estimated $171.87 million, with a year-over-year increase of 4.6% [4] - Snow Removal Services under Maintenance generated $172.50 million, exceeding the estimated $144.67 million, but reflecting a minor decline of 0.4% year-over-year [4] - Landscape Maintenance Services revenue was $320.30 million, below the estimated $330.48 million, indicating a year-over-year decrease of 5.1% [4] - Revenue eliminations were reported at -$2.10 million, slightly worse than the average estimate of -$2.03 million, but showing a year-over-year improvement of 5% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Development Services was reported at $17.20 million, significantly higher than the average estimate of $11.08 million [4] - Adjusted EBITDA for Maintenance Services was $56.30 million, also exceeding the estimated $54.96 million [4] Stock Performance - BrightView's shares have returned +17.7% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - BrightView Holdings (BV) reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing an increase from $0.11 per share a year ago, resulting in an earnings surprise of 16.67% [1] - The company generated revenues of $662.6 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.68%, although this represents a decline from $672.9 million in the same quarter last year [2] - BrightView shares have declined approximately 10.2% year-to-date, compared to a 4.7% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.33, with expected revenues of $761.53 million, and for the current fiscal year, the consensus EPS estimate is $0.82 on revenues of $2.77 billion [7] - The estimate revisions trend for BrightView is mixed, leading to a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Business - Services industry, to which BrightView belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Everi Holdings (EVRI), is expected to report quarterly earnings of $0.11 per share, reflecting a year-over-year increase of 120%, although its revenue is projected to decline by 4.3% from the previous year [9]

Financial Performance - BrightView reported a ~3% increase in total revenue excluding non-core business[27] - The company's total revenue was $662.6 million compared to $672.9 million in the same quarter last year[27] - Adjusted EBITDA increased by ~13% to $73.5 million, with a margin expansion of +150bps[30] - Development Services revenue increased by ~4.6% driven by backlog conversion[27] Guidance and Outlook - BrightView raised its FY25 Adjusted EBITDA guidance to $345 million to $365 million[44] - The company also raised its Adjusted EBITDA margin guidance to +80bps to +110bps[44] - Adjusted Free Cash Flow guidance was raised to $50 million to $70 million[44] - Snow Revenue is expected to be ~$205 million[44] Strategic Initiatives - BrightView is focused on strategic capital allocation, including a $100 million share repurchase program[42] - The company is accelerating its fleet strategy with increased capital investment[36, 42] - BrightView is prioritizing investments in its workforce and customer service[33]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) For the six months ended March 31, 2025, the company reported a net loss of $4.0 million, a significant decrease from the $17.3 million net income in the prior year period, primarily due to a $43.9 million gain on divestiture in 2024 that did not recur. Total assets decreased slightly to $3.32 billion. Net cash from operations increased to $151.7 million, while net cash used in investing activities was $83.4 million, a reversal from the prior year's cash provided, driven by higher capital expenditures and the absence of divestiture proceeds Consolidated Balance Sheet Summary | (In millions) | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total current assets | $715.5 | $780.1 | | Total assets | $3,324.8 | $3,391.8 | | Total current liabilities | $504.8 | $543.3 | | Total liabilities | $1,556.4 | $1,609.4 | | Total stockholders' equity | $1,261.3 | $1,275.3 | Consolidated Statement of Operations Summary | (In millions, except per share data) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net service revenues | $1,261.8 | $1,299.6 | | Gross profit | $274.3 | $285.9 | | Income from operations | $21.7 | $56.0 | | Net (loss) income | $(4.0) | $17.3 | | Basic and diluted (loss) earnings per share | $(0.23) | $(0.01) | Consolidated Statement of Cash Flows Summary | (In millions) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $151.7 | $109.5 | | Net cash (used) provided by investing activities | $(83.4) | $32.3 | | Net cash (used) by financing activities | $(67.4) | $(31.5) | [Notes to Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail the company's business segments, revenue recognition policies, and key financial data. A significant event was the January 2024 divestiture of U.S. Lawns for $51.0 million, resulting in a $43.6 million gain. The company utilizes interest rate and fuel hedging derivatives to manage market risk. As of March 31, 2025, total long-term debt stood at $798.9 million. The company also initiated a share repurchase program in March 2025 and entered into new fuel swap agreements in April 2025 - The company operates in two reportable segments: **Maintenance Services** and **Development Services**[27](index=27&type=chunk) - On January 12, 2024, the company sold its subsidiary, **U.S. Lawns**, for **$51.0 million** in cash, recognizing a gain of **$43.6 million**[54](index=54&type=chunk) - As of March 31, 2025, total long-term debt, net of financing costs, was **$798.9 million**, primarily consisting of the **Series B term loan**[55](index=55&type=chunk) - The company uses **interest rate swaps and collars** to manage interest rate risk on its variable-rate debt and entered into **fuel swap agreements** to hedge against fuel price volatility[71](index=71&type=chunk)[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue for Q2 FY2025 decreased 1.5% YoY to $662.6 million, driven by strategic reductions in non-core Maintenance businesses, partially offset by growth in Development Services. Despite lower revenue, Adjusted EBITDA increased 13.4% to $73.5 million, and the margin expanded from 9.6% to 11.1%, reflecting successful cost management under the 'One BrightView' initiative. The company highlights a potential risk related to its Maintenance segment's goodwill, where the fair value exceeded its carrying value by only 9.6% in the last annual test. Liquidity remains sufficient, supported by cash from operations and credit facilities - The **'One BrightView' initiative**, launched in fiscal 2024, aims to streamline operations and focus on profitable core businesses, resulting in improved customer/employee retention and profitability[120](index=120&type=chunk) - A key risk identified is that the fair value of the **Maintenance reporting unit** exceeded its carrying value by only **9.6%** as of the July 1, 2024, impairment test, indicating a risk of future impairment if conditions worsen. The goodwill for this unit was **$1,797.6 million** as of March 31, 2025[130](index=130&type=chunk) Key Financial Metrics Comparison (Three Months Ended March 31) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net service revenues | $662.6 | $672.9 | | Net income (loss) | $6.4 | $33.7 | | Adjusted EBITDA | $73.5 | $64.8 | | Adjusted Net Income | $21.5 | $16.9 | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) For the three months ended March 31, 2025, net service revenues fell 1.5% to $662.6 million. Gross profit decreased by 3.0% to $147.5 million. However, a 5.5% reduction in SG&A to $118.1 million, driven by cost management, helped improve operational efficiency. Net income dropped to $6.4 million from $33.7 million, largely because the prior-year period included a $43.9 million gain from the U.S. Lawns divestiture. For the six-month period, revenues decreased 2.9% to $1,261.8 million, resulting in a net loss of $4.0 million compared to a $17.3 million net income in the prior year - Three-month revenue decreased by **$10.3 million (1.5%) YoY**, driven by a **$17.7 million** decline in Maintenance Services, partially offset by a **$7.5 million** increase in Development Services[136](index=136&type=chunk) - SG&A expense for the three months decreased by **$6.9 million (5.5%) YoY**, primarily due to lower compensation-related costs from cost management initiatives[138](index=138&type=chunk) - The significant drop in Q2 net income compared to the prior year is mainly due to the non-recurring **$43.9 million gain** on the divestiture of **U.S. Lawns** in Q2 2024[139](index=139&type=chunk)[144](index=144&type=chunk) - For the six months ended March 31, 2025, net service revenues decreased by **$37.8 million (2.9%) YoY**, leading to a net loss of **$4.0 million**[148](index=148&type=chunk)[156](index=156&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures such as Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Adjusted Free Cash Flow to evaluate operating results and liquidity. For Q2 2025, Adjusted EBITDA increased to $73.5 million from $64.8 million in Q2 2024. Adjusted Net Income rose to $21.5 million from $16.9 million. However, Adjusted Free Cash Flow for the six-month period decreased to $67.0 million from $89.4 million, primarily due to higher capital expenditures - The company believes non-GAAP measures like **Adjusted EBITDA** and **Adjusted Net Income** are helpful for investors as they exclude items whose fluctuations may not correspond to core business operations[160](index=160&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Three Months Ended March 31) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net income (loss) | $6.4 | $33.7 | | Adjustments (Taxes, Interest, D&A, etc.) | $59.3 | $(12.8) | | Business transformation and integration costs | $7.8 | $6.1 | | Equity-based compensation | $4.6 | $4.8 | | Gain on divestiture | — | $(43.9) | | **Adjusted EBITDA** | **$73.5** | **$64.8** | [Segment Results](index=37&type=section&id=Segment%20Results) For Q2 2025, the Maintenance Services segment saw a 3.5% revenue decline to $492.8 million due to strategic reductions, but its Adjusted EBITDA margin improved by 60 bps to 11.4% due to cost controls. The Development Services segment showed strong performance, with revenue increasing 4.6% to $171.9 million and its Adjusted EBITDA margin expanding significantly by 410 bps to 10.0%, driven by higher project volumes and favorable project mix Maintenance Services Segment Results (Three Months Ended March 31) | (in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Service Revenues | $492.8 | $510.5 | (3.5)% | | Segment Adjusted EBITDA | $56.3 | $55.1 | 2.2% | | Segment Adjusted EBITDA Margin | 11.4% | 10.8% | +60 bps | Development Services Segment Results (Three Months Ended March 31) | (in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Service Revenues | $171.9 | $164.4 | 4.6% | | Segment Adjusted EBITDA | $17.2 | $9.7 | 77.3% | | Segment Adjusted EBITDA Margin | 10.0% | 5.9% | +410 bps | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash on hand ($141.3 million), cash from operations, and borrowings under its credit facilities. For the six months ended March 31, 2025, cash from operations increased to $151.7 million from $109.5 million in the prior year. However, net working capital decreased to $210.7 million from $236.8 million at fiscal year-end 2024. The company believes it has sufficient liquidity for the next twelve months to fund operations, debt service, and capital spending - Principal sources of liquidity are **cash**, **cash from operations**, and borrowings under the **Credit Agreement** and **Receivables Financing Agreement**[185](index=185&type=chunk) Cash Flow Summary (Six Months Ended March 31) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Operating activities | $151.7 | $109.5 | | Investing activities | $(83.4) | $32.3 | | Financing activities | $(67.4) | $(31.5) | - Net working capital decreased by **$26.1 million** from September 30, 2024, to March 31, 2025, primarily due to decreases in unbilled revenue and accounts receivable, and an increase in deferred revenue[198](index=198&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The report indicates no material changes to the company's market risk disclosures from those presented in its Annual Report on Form 10-K for the fiscal year ended September 30, 2024 - The company refers to **'Item 7A. Quantitative and Qualitative Disclosure of Market Risk'** in its Annual Report on Form 10-K for the fiscal year ended September 30, 2024, for disclosures about market risk[204](index=204&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025. There were no material changes in the company's internal control over financial reporting during the quarter - The **CEO and CFO** concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[206](index=206&type=chunk) - **No changes** occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[207](index=207&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings and claims in the ordinary course of business. Information regarding these matters is incorporated by reference from Note 11 of the financial statements, which states that no pending litigation is expected to have a material effect on the company's financial condition - Information on legal proceedings is incorporated by reference from **Note 11, 'Commitments and Contingencies'**[210](index=210&type=chunk) - The company is not aware of any legal matter that it believes will have, individually or in the aggregate, a **material effect** on its financial condition, results of operations, or cash flows[90](index=90&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024 - **No material changes** to risk factors have occurred since the filing of the Annual Report on Form 10-K for the fiscal year ended September 30, 2024[211](index=211&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On March 13, 2025, the company announced a share repurchase program authorizing the repurchase of up to $100 million of its common stock. During the quarter ended March 31, 2025, the company repurchased 136,352 shares for approximately $1.8 million, leaving approximately $98.2 million available under the program - A share repurchase program of up to **$100 million** was announced on March 13, 2025, with no time limit[212](index=212&type=chunk) Share Repurchase Activity (March 1 - March 31, 2025) | Period | Total shares purchased | Average price paid per share | Approximate dollar value of shares that may yet be purchased | | :--- | :--- | :--- | :--- | | March 1 - 31, 2025 | 136,352 | $13.11 | $98,211,813 | [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) The report includes several exhibits, most notably the CEO and CFO certifications under the Sarbanes-Oxley Act and the Inline XBRL documents for financial reporting - Key exhibits filed include **CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2)** and **Inline XBRL data files**[217](index=217&type=chunk)

Financial Performance - BrightView reported a ~4% decrease in total revenue, primarily driven by non-core business segments[23] - Total revenue was $5992 million in 1Q25, compared to $6267 million in 1Q24[23] - Adjusted EBITDA increased by ~12%, with a margin expansion of +120 bps[30] - Total Adjusted EBITDA reached $521 million in 1Q25, up from $467 million in 1Q24[30] - Net Financial Debt decreased from $8596 million in 1Q24 to $7661 million in 1Q25[32] Segment Performance - Development Services revenue increased by ~35%, driven by backlog conversion[23] - Development Services revenue was $1918 million in 1Q25, compared to $1854 million in 1Q24[23] - Maintenance Services experienced margin expansion of +140 bps[30] - Development Services saw margin expansion of +80 bps[30] Strategic Initiatives and Outlook - The company is reiterating FY25 guidance for total revenue between $2750 billion and $2840 billion, and adjusted EBITDA between $335 million and $355 million[8, 38] - Maintenance Land Revenue is expected to grow by +1% to +3% excluding Non-Core[39] - The company anticipates net capital expenditures of $140 million to $160 million[40]