Core Insights - BrightView Holdings reported a mixed quarterly earnings performance, with revenue exceeding expectations but a significant net loss that disappointed investors [2][3]. Financial Performance - For the first quarter of fiscal 2026, BrightView generated revenue of $614.7 million, marking a nearly 3% year-over-year improvement [2]. - The company's net loss deepened by 46% to $15.2 million, equating to a loss of $0.01 per share, contrasting with analyst expectations of a profit of $0.02 per share [2][3]. Strategic Initiatives - BrightView is in the process of implementing its "One BrightView" strategy, aimed at streamlining operations and modernizing its vehicle fleet, with CEO Dale Asplund noting sustained momentum in key performance indicators [4]. - The company reaffirmed its full fiscal year revenue guidance of $2.67 billion to $2.73 billion, which at the upper end represents a 2% annual growth [4]. Market Sentiment - The stock experienced a 7% decline following the earnings report, indicating market dissatisfaction with the results [1]. - Analysts expressed skepticism regarding the effectiveness of the transformation plan, citing the anticipated tepid revenue growth for the full year as uninspiring [5].

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $615 million, representing a 3% increase compared to the previous year, driven by heightened snowfall and improvements in underlying land metrics [17] - Adjusted EBITDA growth was achieved, indicating continued transformation and profitability improvements within the company [18] - Employee turnover improved by approximately 30% over the past two years, contributing to better customer retention [6][30] Business Line Data and Key Metrics Changes - Maintenance land revenue experienced a slight decline of over 2% in Q1 2026, but the company maintains a growth guidance of 1%-2% for the full year [44] - The development segment saw a revenue decrease of 7%, attributed to timing and project mix rather than long-term losses [18] - The land contract book grew by approximately 2%, indicating positive trends in customer retention and new sales [11][54] Market Data and Key Metrics Changes - Snow revenue increased by 110% year-over-year due to higher-than-average snowfall in key regions, significantly impacting Q1 results [17] - Customer retention improved by approximately 450 basis points since 2023, now standing at 83.5% [7][35] Company Strategy and Development Direction - The company is focused on accelerating investments in its sales force, with plans to add 500 new sellers by 2030, which is critical for capturing market share [9][14] - Continued emphasis on employee investment and customer service is seen as a pathway to sustainable, profitable growth [4][23] - The company is positioned to leverage its size and scale to unlock efficiencies and improve profitability [4][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 guidance, which includes a return to land growth and record adjusted EBITDA for the third consecutive year [4][21] - The company remains optimistic about the potential for growth despite weather-related challenges, emphasizing the importance of customer service and retention [44][72] - Management acknowledged potential downside risks, including adverse weather conditions impacting land maintenance services [98] Other Important Information - The company increased its share repurchase authorization from $100 million to $150 million, reflecting confidence in its valuation [20] - Investments in technology, including HR and field management systems, are expected to enhance operational efficiency and employee management [87][90] Q&A Session Summary Question: Sales force investment and its impact - Management confirmed that they will continue to invest in the sales force, having added 80 new employees in Q1 2026, and are not planning to slow down [27][29] Question: Maintenance land growth expectations - Management explained that the maintenance land business was impacted by weather but remains confident in achieving 1%-2% growth for the year [44][46] Question: Customer acquisition through snow services - Management indicated that the increased snow services have led to new customer acquisition opportunities, which could translate into land maintenance contracts [63][66] Question: Confidence in guidance and potential risks - Management discussed the potential risks associated with weather but remains optimistic about achieving growth targets despite these challenges [98]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $615 million, representing a 3% increase compared to the previous year, driven by heightened snowfall and improvements in underlying land metrics [16] - Adjusted EBITDA growth was achieved, indicating continued transformation and profitability improvements [17] - Employee turnover improved by approximately 30% over the past two years, contributing to better operational efficiency [5][15] Business Line Data and Key Metrics Changes - The development segment experienced a revenue decrease of 7%, attributed to timing and project mix, but this is not expected to result in long-term revenue loss [17] - Maintenance land revenue was impacted by weather-related factors, including a year-over-year comparison with two hurricanes from the previous year [16] - The land contract book showed a growth of approximately 2%, indicating positive trends in customer retention and new sales [11][29] Market Data and Key Metrics Changes - Snow revenue increased by 110% year-over-year due to higher-than-average snowfall in key regions, significantly benefiting Q1 results [16] - Customer retention improved by approximately 450 basis points, reaching 83.5%, reflecting the effectiveness of service consistency and employee investment [6][27] Company Strategy and Development Direction - The company is focused on accelerating investments in its sales force, with plans to add 500 new sellers by 2030, which is expected to drive future growth [9][13] - Continued emphasis on becoming the employer of choice is aimed at reducing turnover and enhancing service quality, which is seen as critical for long-term growth [5][21] - The strategic capital allocation includes fleet refreshment and share repurchases, with an increase in share repurchase authorization from $100 million to $150 million [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 guidance, which includes a return to land revenue growth and record adjusted EBITDA for the third consecutive year [4][20] - The company remains optimistic about the potential for growth in the back half of 2026, supported by improvements in customer retention and net new sales [12][35] - Management acknowledged potential risks from weather impacts but emphasized the long-term opportunities arising from increased customer engagement and service needs [60][61] Other Important Information - The company has made significant strides in leveraging its size and scale to unlock efficiencies and improve profitability over the past two years [4][18] - Investments in technology, including HR and field management systems, are expected to enhance operational efficiency and service delivery [54][58] Q&A Session Summary Question: Regarding the sales force investment and its impact on P&L - Management confirmed that they will continue to invest in the sales force, as the addition of 80 new employees in the quarter is expected to support growth and enhance the contract book [22][23] Question: What are the remaining steps to build the core foundation for growth? - Management highlighted the importance of improving customer retention, which has significantly increased, and emphasized the need to maintain service quality to support growth [26][27] Question: How does the company expect to achieve maintenance land growth despite recent declines? - Management explained that the decline was primarily due to weather impacts and expressed confidence in achieving the full-year growth guidance of 1%-2% based on contract book growth and customer retention [30][31] Question: What are the potential risks to the guidance? - Management acknowledged that continued high snowfall could delay land maintenance services but emphasized that long-term opportunities from ancillary services and customer retention outweigh these risks [59][61]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $615 million, representing a 3% increase compared to the previous year, driven by heightened snowfall and improvements in underlying land metrics [15][16] - Adjusted EBITDA growth was achieved, indicating continued transformation and profitability improvements [16][19] - Employee turnover improved by approximately 30% over the past two years, contributing to better service delivery and customer retention [5][14] Business Line Data and Key Metrics Changes - The development segment experienced a revenue decrease of 7%, attributed to timing and project mix, but this is not expected to result in long-term lost revenue [16] - Maintenance land revenue was impacted by weather-related factors, including the effects of two named hurricanes from the previous year and increased snowfall limiting core maintenance activities [15][16] Market Data and Key Metrics Changes - Customer retention improved by approximately 450 basis points since 2023, now standing at 83.5%, reflecting the effectiveness of service consistency and employee investment [6][26] - The company added 80 new sellers in Q1 2026, contributing to a total increase of approximately 20% in the sales force since the beginning of 2025 [8][10] Company Strategy and Development Direction - The company is focused on accelerating investments in its sales force to capture a greater market share and drive sustainable, profitable top-line growth [4][12] - Strategic capital allocations are aimed at enhancing shareholder value, with a strong balance sheet and no long-term debt maturities until 2029 [18][19] - The company plans to continue its fleet refresh strategy, which has improved operational efficiency and employee morale [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 guidance, which includes a return to land revenue growth and record adjusted EBITDA for the third consecutive year [4][19] - The company remains optimistic about the potential for growth in the back half of 2026, supported by improvements in customer retention and net new sales [11][19] Other Important Information - The company has increased its share repurchase authorization from $100 million to $150 million, reflecting confidence in its valuation and earnings potential [18] - The implementation of advanced pay for employees aims to enhance financial stability and reduce turnover [5] Q&A Session Summary Question: Regarding the sales force investment and future hiring plans - Management confirmed they will continue to add resources to support growth, with plans to exceed the initial target of 100 new hires for the year [21][22] Question: Clarification on maintenance land growth expectations - Management explained that despite a slight decline in maintenance land revenue, they maintain a growth forecast of 1%-2% for the full year, expecting stronger performance in the latter half [29][30] Question: Impact of weather on business operations - Management acknowledged that while heavy snowfall could delay maintenance services, it also presents opportunities for new customer acquisition and ancillary services [38][42] Question: Confidence in guidance and potential downside risks - Management expressed confidence in their guidance, noting that while weather could create timing challenges, they see more opportunities for growth in ancillary services due to winter damage [58][60]

February 4, 2026 NYSE: BV First Quarter 2026 Earnings Call Introductory Information Forward Looking Statements This presentation contains "forward-looking statements" within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the "safe harbor" created by those sections. Al ...

Core Viewpoint - BrightView Holdings, Inc. reported a significant earnings miss for the quarter ending December 2025, with an EPS of -$0.01, falling short of the estimated EPS of $0.013, reflecting a substantial deviation from expectations [2][6] Financial Performance - The company's revenue for the quarter was $614.7 million, exceeding the Zacks Consensus Estimate by 4.57% and indicating a 2.6% year-over-year growth from $599.2 million [3][6] - Despite the revenue growth, BrightView experienced a net loss of $15.2 million, which is an increase of $4.8 million compared to the previous year, resulting in a net loss margin of 2.5% [3] Valuation Metrics - BrightView's price-to-sales ratio and enterprise value to sales ratio both stand at 0.48, indicating a relatively low valuation compared to its sales [4] - The enterprise value to operating cash flow ratio is 4.44, suggesting how many times the operating cash flow can cover the enterprise value [4] Financial Health - The company maintains a low debt-to-equity ratio of 0.06, indicating a conservative capital structure [5] - BrightView has a current ratio of 1.30, suggesting a good level of liquidity to cover its short-term liabilities [5] - Despite recent challenges, the company has reaffirmed its guidance for 2026, indicating confidence in its strategic direction [5]

Core Viewpoint - BrightView Holdings reported a revenue of $614.7 million for the quarter ended December 2025, marking a year-over-year increase of 2.6% and exceeding the Zacks Consensus Estimate of $587.85 million by 4.57% [1] Financial Performance - The company reported an EPS of -$0.01, a decline from $0.04 a year ago, resulting in an EPS surprise of -300% compared to the consensus estimate of $0.01 [1] - BrightView's shares have returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change, and currently holds a Zacks Rank 2 (Buy) [3] Revenue Breakdown - Maintenance Services revenue was $436.4 million, exceeding the average estimate of $406.36 million by three analysts, representing a year-over-year increase of +6.6% [4] - Development Services revenue was $179.2 million, below the estimated $183.47 million, reflecting a year-over-year decrease of -6.6% [4] - Snow Removal Services under Maintenance Services generated $68.4 million, significantly surpassing the average estimate of $32.65 million, with a year-over-year increase of +111.1% [4] - Landscape Maintenance Services revenue was $368 million, slightly below the estimated $373.72 million, showing a year-over-year decline of -2.4% [4] - Revenue eliminations were reported at -$0.9 million, better than the estimated -$1.98 million, indicating a year-over-year change of -52.6% [4] Adjusted EBITDA - Adjusted EBITDA for Development Services was $18.1 million, slightly above the average estimate of $17.54 million [4] - Adjusted EBITDA for Maintenance Services was $35.4 million, below the average estimate of $37.71 million [4]

Core Insights - BrightView Holdings reported a quarterly loss of $0.01 per share, matching the Zacks Consensus Estimate, but down from earnings of $0.04 per share a year ago, indicating a significant earnings surprise of -300.00% [1] - The company achieved revenues of $614.7 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 4.57% and showing an increase from $599.2 million year-over-year [2] - BrightView's stock has increased by approximately 8.9% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The future performance of BrightView's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, which includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.11 on revenues of $654.84 million, and for the current fiscal year, it is $0.73 on revenues of $2.69 billion [7] Industry Context - The Agriculture - Products industry, to which BrightView belongs, is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Performance - Total revenue for Q1 fiscal 2026 increased by 2.6% year-over-year to $614.7 million, driven by a $36 million increase in snow removal revenue[6] - Net loss for Q1 fiscal 2026 expanded to $15.2 million, a 46.2% increase year-over-year, resulting in a net loss margin of 2.5%[5] - Adjusted EBITDA for Q1 fiscal 2026 increased by 2.7% to $53.5 million, maintaining an adjusted EBITDA margin of 8.7%[5] - Maintenance Services revenue increased by 6.6% to $436.4 million, primarily due to a 111.1% increase in snow removal revenue[8] - Development Services revenue decreased by 6.6% to $179.2 million, attributed to the timing and mix of projects[10] - Net service revenues for the three months ended December 31, 2025, were $614.7 million, an increase of 2.9% from $599.2 million in the same period of 2024[35] - Adjusted EBITDA for the three months ended December 31, 2025, was $53.5 million, slightly up from $52.1 million in the same period of 2024[39] Cash Flow and Debt - Net cash provided by operating activities decreased by 40.3% to $36.1 million compared to the prior year[13] - Adjusted Free Cash Flow for Q1 fiscal 2026 was an outflow of $15.4 million, a decrease of $19.8 million from the prior year[14] - Total financial debt as of December 31, 2025, was $881.2 million, with total net financial debt increasing to $844.2 million[16] - Total net financial debt increased to $844.2 million as of December 31, 2025, compared to $766.1 million a year earlier, reflecting a 10.2% rise[50] - The total net financial debt to adjusted EBITDA ratio was 2.4x for Q4 2025, up from 2.3x in the previous quarter[50] Assets and Liabilities - Total assets decreased from $3,392.0 million on September 30, 2025, to $3,316.3 million on December 31, 2025[33] - Cash and cash equivalents dropped from $74.5 million to $37.0 million during the same period[33] - Accounts receivable decreased from $393.1 million to $367.7 million[33] - Total liabilities decreased from $1,591.9 million to $1,554.9 million[33] - Long-term debt increased from $790.2 million to $801.1 million[33] Guidance and Projections - The company reaffirmed its fiscal year 2026 guidance, projecting total revenue between $2.670 billion and $2.730 billion[4] Stock and Earnings - The Series A Preferred Stock has a liquidation preference of $512.0 million as of December 31, 2025[33] - The company reported a basic and diluted loss per share of $0.26 for Q4 2025, compared to a loss of $0.20 per share in Q4 2024[35] - Adjusted net loss income for Q4 2025 was $(2.2) million, a significant decrease from $5.6 million in Q4 2024[44] - The net loss attributable to common stockholders for Q4 2025 was $24.2 million, compared to a net loss of $19.4 million in Q4 2024, representing a 24.5% increase in losses[37] Definitions - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, adjusted for non-cash and non-recurring items[25] - Adjusted Free Cash Flow is calculated as cash flows from operating activities less capital expenditures, net of proceeds from the sale of property and equipment[28] - Total Net Financial Debt to Adjusted EBITDA ratio is a key measure for evaluating financial performance[29]

Financial Performance - Net service revenues for Q4 2025 increased to $614.7 million, up from $599.2 million in Q4 2024, representing a growth of 0.9% year-over-year[17] - Gross profit decreased to $114.3 million in Q4 2025, down from $126.8 million in Q4 2024, reflecting a decline of 9.8%[17] - The net loss for Q4 2025 was $15.2 million, compared to a net loss of $10.4 million in Q4 2024, indicating a worsening of 46.2%[17] - Basic and diluted loss per share for Q4 2025 was $0.26, compared to $0.20 in Q4 2024, an increase of 30%[17] - The company reported a comprehensive loss of $15.8 million for Q4 2025, compared to a comprehensive loss of $2.2 million in Q4 2024[20] - For the three months ended December 31, 2025, net service revenues increased to $614.7 million, up from $599.2 million in the same period of 2024, representing a growth of 2.3%[40] - The Company reported a net loss of $15.2 million for the three months ended December 31, 2025, compared to a net loss of $10.4 million in the same period of 2024[40] - Adjusted Net (Loss) Income decreased by $7.8 million to $(2.2) million for the three months ended December 31, 2025, compared to $5.6 million in the prior year[145] Assets and Liabilities - Total current assets decreased to $598.8 million as of December 31, 2025, down from $666.3 million as of September 30, 2025, a decline of 10.2%[15] - Total liabilities decreased to $1,554.9 million as of December 31, 2025, compared to $1,591.9 million as of September 30, 2025, a reduction of 2.3%[15] - Stockholders' equity decreased to $1,254.3 million as of December 31, 2025, down from $1,293.0 million as of September 30, 2025, a decline of 3%[15] - Cash and cash equivalents decreased to $37.0 million as of December 31, 2025, down from $74.5 million as of September 30, 2025, a decline of 50.3%[15] - Accounts receivable as of December 31, 2025, totaled $367.7 million, net of an allowance for doubtful accounts of $10.9 million[48] - As of December 31, 2025, net property and equipment totaled $534.4 million, a decrease from $541.6 million as of September 30, 2025[49] - Intangible assets, net, amounted to $689.3 million as of December 31, 2025, down from $715.9 million as of September 30, 2025, with accumulated amortization of $629.0 million[51] - Long-term debt, net, increased to $801.1 million as of December 31, 2025, compared to $790.2 million as of September 30, 2025[53] Revenue Segments - Landscape Maintenance revenues were $368.0 million, a decrease of 2.4% from $376.9 million in the prior year, while Snow Removal revenues increased significantly to $68.4 million from $32.4 million, reflecting a growth of 111.1%[40] - The Maintenance Services segment generated $436.4 million in net service revenues for Q4 2025, up from $409.3 million in Q4 2024, indicating a growth of approximately 6.5%[94] - The Development Services segment reported net service revenues of $179.2 million in Q4 2025, down from $191.8 million in Q4 2024, a decline of about 6.5%[94] - Maintenance Services net service revenues increased by $27.1 million, or 6.6%, to $436.4 million in Q4 2025, driven by a $36 million increase in snow removal services revenue[162] - Development Services net service revenues decreased by $12.6 million, or 6.6%, to $179.2 million in Q4 2025, attributed to the timing and mix of projects[165] Cash Flow and Expenditures - Net cash provided by operating activities for the three months ended December 31, 2025, was $36.1 million, down from $60.5 million in the prior year[40] - Capital expenditures for Q4 2025 totaled $54.7 million, a decrease from $58.7 million in Q4 2024, indicating a reduction of approximately 6.8%[94] - Net cash used by investing activities decreased by $3.5 million to $51.8 million for the three months ended December 31, 2025, from $55.3 million in the 2024 period, primarily due to a $4.0 million decrease in capital expenditures[177] - Adjusted Free Cash Flow decreased by $19.8 million to an outflow of $15.4 million for the three months ended December 31, 2025, from an inflow of $4.4 million in the 2024 period[179] Shareholder Actions - The company declared a cash dividend of $9.0 million on Series A Preferred Stock in December 2025, which was paid in January 2026[97] - The company repurchased a total of 1,067,705 shares during the three months ended December 31, 2025, at an average price of $12.64 per share[194] - The company announced an increase in its share repurchase program to authorize up to $150 million of common stock[194] Operational Initiatives - The One BrightView initiative launched in fiscal year 2024 aims to streamline operations and improve profitability through cultural changes and a focus on core service lines[118] - The company plans to pursue selective acquisitions to enhance market density and expand service offerings in strategic markets[122] - Weather conditions and seasonality significantly impact the company's landscape maintenance services, affecting revenue and operational performance throughout the year[116] Risk and Compliance - As of December 31, 2025, the company was in compliance with all debt covenants, with no events of default occurring[181] - There were no material changes to the company's market risk during the three months ended December 31, 2025[186] - There have been no material changes to the risk factors included in the Annual Report for the fiscal year ended September 30, 2025[193]