Financial Data and Key Metrics Changes - The company reported a trailing twelve-month adjusted EBITDA of $344 million, reflecting a $45 million or 15% improvement over the past seven quarters [3][14]. - Total revenue for the third quarter was $788 million, a decrease of 4% due to macro-related dynamics affecting maintenance discretionary spending and development projects [14][15]. - Adjusted EBITDA for the third quarter was $113 million, an increase of $5 million or 5% compared to the prior year, with adjusted EBITDA margins reaching a record 16%, expanding by 140 basis points year-over-year [16][17]. Business Line Data and Key Metrics Changes - The company has seen improvements in customer retention, now approximately 82%, which is an increase of 190 basis points on a trailing twelve-month basis [7][8]. - The maintenance and development teams have improved conversions of development work into recurring maintenance contracts, with expectations of achieving approximately 70% conversions, representing a $50 million annual recurring maintenance opportunity [9][10]. Market Data and Key Metrics Changes - The development backlog grew by $14 million during the quarter, offsetting the revenue timing impact seen in Q3 [11]. - The company plans to open 10 new development branches over the next 24 months, which will increase market share and provide a runway for future growth [12]. Company Strategy and Development Direction - The company is focused on achieving consistent top-line profitable growth by prioritizing employees and customers, which has solidified the foundation for growth [4][5]. - The strategy includes leveraging size and scale, centralizing procurement, and investing in fleet management to drive operational efficiencies [18][19]. - The company aims to rebalance SG&A from approximately 80% to 65% of total SG&A, reinvesting savings into the sales force to drive future growth [20][21]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating that the worst of the headwinds is behind them and that they are starting to see improvements in discretionary spending [36][38]. - The company reaffirmed its full-year guidance, expecting another year of record EBITDA and margins, driven by improved operating performance and cash flow generation [22][23]. Other Important Information - The company has reduced hiring needs by over 40% in the past 21 months, leading to significant savings in hiring, onboarding, and training costs [7][6]. - Adjusted free cash flow is expected to grow approximately 27% year-over-year, with a conversion rate of approximately 34% at the midpoint of guidance [21]. Q&A Session Summary Question: Can you talk about the contract business in more detail? - Management indicated that the decline in the land maintenance business was primarily driven by a reduction in discretionary spending, with some customers opting to stretch out service levels to save costs [28][31]. Question: Where do you stand in the sales force development and growth? - The company has grown its sales force by approximately 6%, adding around 60 new frontline employees, and expects these investments to fuel growth into 2026 and beyond [45][46]. Question: What are the trends in labor availability and costs? - Labor costs, which account for 40% of service costs, have seen a reduction in turnover from nearly 100% to 40%, saving the company between $10 million and $12 million annually in G&A costs [100][101].

Third Quarter Fiscal 2025 | Earnings Call August 7, 2025 NYSE: BV 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 secti ...

Core Insights - BrightView Holdings (BV) reported revenue of $708.3 million for the quarter ended June 2025, reflecting a year-over-year decline of 4.1% and an EPS of $0.30, down from $0.32 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $723.5 million, resulting in a surprise of -2.1%, while the EPS also missed the consensus estimate of $0.33 by -9.09% [1] Revenue Breakdown - Maintenance Services revenue was $508.8 million, below the average estimate of $522.31 million, marking a year-over-year decline of 3% [4] - Development Services revenue reached $201.3 million, compared to the average estimate of $214.69 million, representing a year-over-year decrease of 6.4% [4] - Snow Removal Services under Maintenance Services generated $5.9 million, exceeding the average estimate of $4.93 million, but showing a significant year-over-year decline of 30.6% [4] - Landscape Maintenance Services revenue was $502.9 million, below the estimated $517.38 million, reflecting a year-over-year decrease of 2.6% [4] - Revenue Eliminations were reported at -$1.8 million, slightly worse than the average estimate of -$1.45 million, but showing a year-over-year change of +100% [4] Adjusted EBITDA - Adjusted EBITDA for Development Services was $31.5 million, surpassing the average estimate of $28.24 million [4] - Adjusted EBITDA for Maintenance Services was $81.7 million, falling short of the average estimate of $85.26 million [4] Stock Performance - BrightView's shares have returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

BrightView Holdings (BV) came out with quarterly earnings of $0.3 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -9.09%. A quarter ago, it was expected that this investment company would post earnings of $0.12 per share when it actually produced earnings of $0.14, delivering a surprise of +16.67%. Over the last four quarter ...

[PART I. FINANCIAL INFORMATION](index=8&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents the company's unaudited financial statements, management's discussion, market risk, and internal controls [Item 1. Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, along with detailed notes explaining business operations, accounting policies, revenue recognition, debt, equity, and segment performance [Consolidated Balance Sheets](index=8&type=page&id=Consolidated%20Balance%20Sheets) Presents the company's financial position, including assets, liabilities, and equity | Metric | June 30, 2025 (millions) | September 30, 2024 (millions) | Change (millions) | | :----------------------- | :----------------------- | :-------------------------- | :---------------- | | Total Assets | $3,357.2 | $3,391.8 | $(34.6) | | Total Liabilities | $1,570.5 | $1,609.4 | $(38.9) | | Total Stockholders' Equity | $1,279.6 | $1,275.3 | $4.3 | | Cash and Cash Equivalents | $79.1 | $140.4 | $(61.3) | | Accounts Receivable, net | $396.2 | $415.2 | $(19.0) | | Total Current Assets | $665.3 | $780.1 | $(114.8) | | Total Current Liabilities | $509.3 | $543.3 | $(34.0) | [Consolidated Statements of Operations](index=9&type=page&id=Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net income over specific periods | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (%) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | YoY Change (%) | | :------------------------ | :--------------------------- | :--------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Net Service Revenues | $708.3 | $738.8 | (4.1)% | $1,970.0 | $2,038.4 | (3.4)% | | Gross Profit | $170.9 | $177.6 | (3.8)% | $445.2 | $463.4 | (3.9)% | | Income from Operations | $57.6 | $49.0 | 17.6% | $79.4 | $105.0 | (24.4)% | | Net Income | $32.3 | $23.5 | 37.4% | $28.3 | $40.8 | (30.6)% | | Basic EPS | $0.16 | $0.10 | 60.0% | $0.01 | $0.09 | (88.9)% | | Diluted EPS | $0.15 | $0.10 | 50.0% | $0.01 | $0.09 | (88.9)% | [Consolidated Statements of Comprehensive Income](index=10&type=page&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Reports net income and other comprehensive income components, reflecting total comprehensive earnings | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income | $32.3 | $23.5 | $28.3 | $40.8 | | Other comprehensive (loss) income | $(2.9) | $0.4 | $0.9 | $(6.4) | | Comprehensive Income | $29.4 | $23.9 | $29.2 | $34.4 | [Consolidated Statements of Stockholders' Equity and Mezzanine Equity](index=11&type=page&id=Consolidated%20Statements%20of%20Stockholders'%20Equity%20and%20Mezzanine%20Equity) Outlines changes in stockholders' equity and mezzanine equity, including net income and repurchases - Total stockholders' equity **increased** from **$1,275.3 million** at September 30, 2024, to **$1,279.6 million** at June 30, 2025[16](index=16&type=chunk)[24](index=24&type=chunk) - Key changes for the nine months ended June 30, 2025, include **$28.3 million** in net income, **$13.6 million** in equity-based compensation, and **$14.6 million** in common stock repurchases and distributions[24](index=24&type=chunk) [Consolidated Statements of Cash Flows](index=12&type=page&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities | Metric (millions) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | YoY Change (millions) | | :------------------------------ | :--------------------------- | :--------------------------- | :-------------------- | | Net cash provided by operating activities | $207.4 | $152.1 | $55.3 | | Net cash (used) provided by investing activities | $(179.2) | $22.9 | $(202.1) | | Net cash (used) by financing activities | $(89.5) | $(126.1) | $36.6 | | Net change in cash and cash equivalents | $(61.3) | $48.9 | $(110.2) | | Cash and cash equivalents, end of period | $79.1 | $115.9 | $(36.8) | - The **increase** in cash used by investing activities was driven by a **$149.8 million** increase in capital expenditures and a **$51.6 million** decrease in proceeds from divestiture[200](index=200&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=13&type=page&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the unaudited consolidated financial statements [Note 1. Business](index=13&type=page&id=Note%201.%20Business) Outlines the company's primary business activities and operational segments - The Company provides landscape maintenance and enhancements, landscape development, snow removal, and other landscape-related services for commercial customers across the United States[29](index=29&type=chunk) - BrightView operates through two reportable segments: Maintenance Services and Development Services[29](index=29&type=chunk) [Note 2. Recent Accounting Pronouncements](index=13&type=page&id=Note%202.%20Recent%20Accounting%20Pronouncements) Details recently issued accounting pronouncements and their anticipated effects on financial reporting - The company will adopt ASU No **2023-07**, Segment Reporting, retrospectively in its Form 10-K for the year ended September 30, 2025[35](index=35&type=chunk)[36](index=36&type=chunk) - The company is evaluating the impact of ASU No **2023-09**, Income Taxes, **effective** for annual periods beginning after December 15, 2024[37](index=37&type=chunk) - The company is evaluating the impact of ASU No **2024-03**, Income Statement (Subtopic **220-40**): Expense Disaggregation Disclosures, **effective** for annual periods beginning after December 15, 2026[38](index=38&type=chunk) [Note 3. Revenue](index=15&type=page&id=Note%203.%20Revenue) Presents disaggregated revenue data by service type and details future performance obligations - Revenue is disaggregated into Landscape Maintenance, Snow Removal (under Maintenance Services), and Development Services[42](index=42&type=chunk)[43](index=43&type=chunk) | Revenue Type (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :---------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Landscape Maintenance | $502.9 | $516.2 | $1,200.2 | $1,256.3 | | Snow Removal | $5.9 | $8.5 | $210.7 | $221.2 | | Maintenance Services | $508.8 | $524.7 | $1,410.9 | $1,477.5 | | Development Services | $201.3 | $215.0 | $565.0 | $564.8 | | Net Service Revenues | $708.3 | $738.8 | $1,970.0 | $2,038.4 | - As of June 30, 2025, estimated future revenues for remaining performance obligations greater than one year were approximately **$488.6 million**, with **59%** expected to be recognized in the next **12** months[45](index=45&type=chunk) [Note 4. Accounts Receivable, net](index=18&type=page&id=Note%204.%20Accounts%20Receivable,%20net) Provides a breakdown of accounts receivable, including allowances and retention | Metric (millions) | June 30, 2025 | September 30, 2024 | | :---------------- | :------------ | :----------------- | | Accounts receivable, net | $396.2 | $415.2 | | Allowance for doubtful accounts | $11.0 | $10.0 | | Retention on incomplete projects | $58.3 | $65.7 | [Note 5. Property and Equipment, net](index=18&type=page&id=Note%205.%20Property%20and%20Equipment,%20net) Presents the composition of property and equipment and associated depreciation expenses | Metric (millions) | June 30, 2025 | September 30, 2024 | | :------------------------ | :------------ | :----------------- | | Property and equipment, net | $493.1 | $391.9 | | Operating equipment | $426.3 | $388.3 | | Transportation vehicles | $477.2 | $403.1 | | Accumulated depreciation | $563.8 | $542.6 | - Depreciation expense for property and equipment was **$101.2 million** for the nine months ended June 30, 2025, up from **$79.8 million** in the prior year[52](index=52&type=chunk) [Note 6. Intangible Assets, Goodwill, Acquisitions, and Divestitures](index=18&type=page&id=Note%206.%20Intangible%20Assets,%20Goodwill,%20Acquisitions,%20and%20Divestitures) Details intangible assets, goodwill, and significant acquisition and divestiture activities | Metric (millions) | June 30, 2025 | September 30, 2024 | | :------------------------ | :------------ | :----------------- | | Intangible assets, net | $73.5 | $95.8 | | Goodwill | $2,015.7 | $2,015.7 | - Amortization expense for intangible assets was **$22.3 million** for the nine months ended June 30, 2025, down from **$27.4 million** in the prior year[53](index=53&type=chunk) - On January 12, 2024, the Company divested U.S. Lawns for **$51.0 million** cash, recognizing a **$44.0 million** gain[56](index=56&type=chunk) [Note 7. Long-term Debt](index=20&type=page&id=Note%207.%20Long-term%20Debt) Outlines the company's long-term debt, including term loans and financing agreements | Metric (millions) | June 30, 2025 | September 30, 2024 | | :---------------- | :------------ | :----------------- | | Total debt, net | $790.7 | $802.5 | | Series B term loan | $733.7 | $732.8 | | Receivables financing agreement | $62.8 | $76.2 | - The Series B Term Loan matures on April 22, 2029, and its interest rate was amended on January 29, 2025, to Term SOFR plus **2.00%** or ABR plus **1.00%**[58](index=58&type=chunk)[60](index=60&type=chunk) - The Revolving Credit Facility matures on April 22, 2027, and the Receivables Financing Agreement's borrowing capacity was **increased** to **$325.0 million** and extended through June 27, 2027[61](index=61&type=chunk)[63](index=63&type=chunk) [Note 8. Fair Value Measurements and Derivative Instruments](index=21&type=page&id=Note%208.%20Fair%20Value%20Measurements%20and%20Derivative%20Instruments) Explains fair value measurements and the company's use of derivative financial instruments - The company's derivative financial instruments are measured at fair value, with significant inputs classified within Level **2** of the fair value hierarchy[70](index=70&type=chunk) - Interest rate contracts with a notional amount of **$600.0 million** are in place to convert variable-rate debt to fixed-rate debt[74](index=74&type=chunk)[75](index=75&type=chunk) - Fuel swap agreements with a combined notional volume of **8.0 million** gallons were entered into in March and April 2025 to reduce exposure to fuel price volatility[77](index=77&type=chunk) [Note 9. Income Taxes](index=26&type=page&id=Note%209.%20Income%20Taxes) Presents income tax expense, effective tax rates, and factors influencing tax variations | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Income before income taxes | $44.9 | $33.4 | $39.0 | $58.3 | | Income tax expense | $12.6 | $9.9 | $10.7 | $17.5 | | Effective income tax rate | 28.1% | 29.6% | 27.4% | 30.0% | - The **decrease** in the effective tax rate for the nine months ended June 30, 2025, was primarily due to equity-based compensation shifting to a windfall position and the non-recurring gain on the U.S. Lawns divestiture in the prior fiscal year[81](index=81&type=chunk) [Note 10. Equity-Based Compensation](index=26&type=page&id=Note%2010.%20Equity-Based%20Compensation) Describes equity-based compensation plans, grants, and associated expenses - The **2018** Omnibus Incentive Plan has **24,650,000** shares of common stock available for issuance, and the **2023** Employment Inducement Incentive Award Plan has **1,750,000** shares reserved[82](index=82&type=chunk)[83](index=83&type=chunk) - For the nine months ended June 30, 2025, **747,000** restricted stock units (RSUs) were granted, and **281,000** performance stock units (PSUs) were issued, with PSUs vesting based on three-year average Adjusted EBITDA margin and land organic revenue growth[86](index=86&type=chunk)[89](index=89&type=chunk) | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Equity-based compensation expense | $4.6 | $5.1 | $13.6 | $15.1 | [Note 11. Commitments and Contingencies](index=29&type=page&id=Note%2011.%20Commitments%20and%20Contingencies) Details self-insurance reserves and potential legal commitments and contingencies - The company's self-insurance reserves for unpaid and incurred but not reported claims were **$181.9 million** as of June 30, 2025, an **increase** from **$165.6 million** at September 30, 2024[93](index=93&type=chunk) - The company is not aware of any legal proceedings or claims that it believes will have a material effect on its financial condition or results of operations[94](index=94&type=chunk) [Note 12. Segments](index=30&type=page&id=Note%2012.%20Segments) Presents financial performance and key metrics for the Maintenance and Development Services segments - **Effective** October 1, 2024, corporate expenses (executive compensation, finance, legal, IT) are allocated to segments based on revenue, with prior periods recast for consistency[97](index=97&type=chunk)[175](index=175&type=chunk) | Segment Performance (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :----------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Maintenance Services Net Service Revenues | $508.8 | $524.7 | $1,410.9 | $1,477.5 | | Development Services Net Service Revenues | $201.3 | $215.0 | $565.0 | $564.8 | | Maintenance Services Segment Adjusted EBITDA | $81.7 | $80.4 | $172.7 | $166.9 | | Development Services Segment Adjusted EBITDA | $31.5 | $27.5 | $66.1 | $52.6 | | Total Capital Expenditures | $103.5 | $23.2 | $195.8 | $46.0 | [Note 13. Mezzanine Equity](index=31&type=page&id=Note%2013.%20Mezzanine%20Equity) Details the Series A Convertible Preferred Stock, including issuance and dividend terms - **500,000** shares of Series A Convertible Preferred Stock were issued for **$500.0 million** on August 28, 2023[100](index=100&type=chunk) - The Series A Preferred Stock is entitled to **7.0%** cumulative dividends per annum, compounding quarterly, payable in cash or in kind[100](index=100&type=chunk)[196](index=196&type=chunk) [Note 14. Earnings Per Share of Common Stock](index=32&type=page&id=Note%2014.%20Earnings%20Per%20Share%20of%20Common%20Stock) Provides the calculation of basic and diluted earnings per share for common stock | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :---------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income available to common shareholders | $14.9 | $9.3 | $1.0 | $9.0 | | Basic earnings per share | $0.16 | $0.10 | $0.01 | $0.09 | | Diluted earnings per share | $0.15 | $0.10 | $0.01 | $0.09 | - The calculation uses the two-class method, allocating earnings to common shares and Series A Convertible Preferred Stock based on dividend and participation rights[103](index=103&type=chunk) [Note 15. Subsequent events](index=33&type=page&id=Note%2015.%20Subsequent%20events) Highlights significant events occurring after the reporting period, such as new legislation - The OBBBA legislation, signed July 4, 2025, reinstates **100% bonus depreciation** for qualified property[105](index=105&type=chunk)[138](index=138&type=chunk) - The company anticipates a **favorable impact** on near-term cash flows due to accelerated expensing of capital investments[105](index=105&type=chunk)[138](index=138&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results, detailing business segments, revenue and expense components, key trends, operational performance, non-GAAP measures, liquidity, and capital resources. It highlights the impact of cost management initiatives and external factors on financial outcomes [Overview](index=34&type=page&id=Overview) Provides an overview of the company's market position and service offerings - BrightView is the **largest provider** of commercial landscaping services in the United States, with revenues approximately **5 times its next largest competitor**[108](index=108&type=chunk) - The company operates through a national service model with over **280** branches, providing services ranging from landscape maintenance and enhancements to tree care and landscape development[108](index=108&type=chunk) - Services are considered **essential and non-discretionary** by its diverse commercial customer base[108](index=108&type=chunk) [Components of Our Revenues and Expenses](index=36&type=page&id=Components%20of%20Our%20Revenues%20and%20Expenses) Details the primary components of the company's revenues and expenses - Maintenance Services revenues are primarily from recurring landscape maintenance and snow removal, often under annual contracts[113](index=113&type=chunk) - Development Services revenues are recognized over time using the cost-to-cost input method for landscape architecture and development projects[114](index=114&type=chunk) - Cost of services provided includes employee costs, subcontractor costs, purchased materials, and operating equipment/vehicle costs, with a large variable component[115](index=115&type=chunk) - Selling, general and administrative expense covers management, sales, administrative personnel, equity-based compensation, facility costs, and professional fees[116](index=116&type=chunk) [Trends and Other Factors Affecting Our Business](index=38&type=page&id=Trends%20and%20Other%20Factors%20Affecting%20Our%20Business) Identifies key trends, seasonality, and external factors impacting business operations - The business experiences seasonality, with higher revenues in spring/summer (fiscal Q3/Q4) and decreased landscape maintenance demand in winter, partially offset by snow removal services[122](index=122&type=chunk)[123](index=123&type=chunk) - The "One BrightView" initiative aims for long-term profitable growth by streamlining operations, leveraging scale, and improving customer/employee retention[124](index=124&type=chunk) - Weather conditions, including snow events, hurricanes, and rainfall, can significantly impact revenues and costs[125](index=125&type=chunk) - The company plans to continue selective, accretive acquisitions to **increase** market density and expand service lines[128](index=128&type=chunk) - Goodwill is tested annually for impairment; as of July 1, 2024, the Maintenance reporting unit's fair value exceeded its carrying value by **9.6%**, indicating potential future impairment risk if conditions trend unfavorably[134](index=134&type=chunk) - Economic conditions, including rising inflation, fuel prices, interest rates, and labor market fluctuations, impact costs and expenses[137](index=137&type=chunk) [Results of Operations](index=42&type=page&id=Results%20of%20Operations) Analyzes the company's financial performance, including revenue, profit, and expenses | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (%) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | YoY Change (%) | | :------------------------ | :--------------------------- | :--------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Net Service Revenues | $708.3 | $738.8 | (4.1)% | $1,970.0 | $2,038.4 | (3.4)% | | Gross Profit | $170.9 | $177.6 | (3.8)% | $445.2 | $463.4 | (3.9)% | | Selling, General and Administrative Expense | $106.2 | $120.1 | (11.6)% | $343.5 | $375.0 | (8.4)% | | Income from Operations | $57.6 | $49.0 | 17.6% | $79.4 | $105.0 | (24.4)% | | Net Income | $32.3 | $23.5 | 37.4% | $28.3 | $40.8 | (30.6)% | - Selling, general and administrative expense **decreased** by **11.6%** for the three months and **8.4%** for the nine months, primarily due to cost management initiatives and reduced business transformation costs[143](index=143&type=chunk)[153](index=153&type=chunk) - The nine-month net income **decrease** was significantly impacted by a **$44.0 million** gain on divestiture in the prior year that did not recur[154](index=154&type=chunk) [Non-GAAP Financial Measures](index=45&type=page&id=Non-GAAP%20Financial%20Measures) Explains and reconciles non-GAAP financial measures used for performance evaluation - Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS are used to evaluate operating results by excluding non-cash, non-recurring, and other adjustment items[163](index=163&type=chunk) - Adjusted Free Cash Flow, calculated as cash flows from operating activities less capital expenditures plus proceeds from asset sales, is used to assess liquidity and ability to fund investments and service debt[164](index=164&type=chunk) | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Adjusted EBITDA | $113.2 | $107.9 | $238.8 | $219.5 | | Adjusted Net Income | $45.5 | $48.3 | $72.6 | $68.1 | | Adjusted Free Cash Flow | $(41.3) | $31.0 | $25.8 | $120.2 | [Segment Results](index=49&type=page&id=Segment%20Results) Presents detailed financial results and performance metrics for each operating segment Maintenance Services Segment Performance | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (%) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | YoY Change (%) | | :----------------------------- | :--------------------------- | :--------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Net Service Revenues | $508.8 | $524.7 | (3.0)% | $1,410.9 | $1,477.5 | (4.5)% | | Segment Adjusted EBITDA | $81.7 | $80.4 | 1.6% | $172.7 | $166.9 | 3.5% | | Segment Adjusted EBITDA Margin | 16.1% | 15.3% | 80 bps | 12.2% | 11.3% | 90 bps | Development Services Segment Performance | Metric (millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (%) | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | YoY Change (%) | | :----------------------------- | :--------------------------- | :--------------------------- | :------------- | :--------------------------- | :--------------------------- | :------------- | | Net Service Revenues | $201.3 | $215.0 | (6.4)% | $565.0 | $564.8 | 0.0% | | Segment Adjusted EBITDA | $31.5 | $27.5 | 14.5% | $66.1 | $52.6 | 25.7% | | Segment Adjusted EBITDA Margin | 15.6% | 12.8% | 280 bps | 11.7% | 9.3% | 240 bps | - Maintenance Services revenue **decrease** was driven by strategic reductions of non-core businesses and a decline in core commercial landscaping[185](index=185&type=chunk) - Development Services revenue was flat for the nine months, with **increased** project volumes in the first half offset by third-quarter delays[188](index=188&type=chunk) [Liquidity and Capital Resources](index=53&type=page&id=Liquidity%20and%20Capital%20Resources) Details the company's liquidity sources, cash flow, and capital resource management - Principal liquidity sources are existing cash, cash from operations, and borrowings under the Credit Agreement and Receivables Financing Agreement[191](index=191&type=chunk) - Net cash provided by operating activities **increased** by **$55.3 million** to **$207.4 million** for the nine months ended June 30, 2025[199](index=199&type=chunk) - Net cash used by investing activities **increased** by **$202.1 million** to **$179.2 million**, primarily due to a **$149.8 million** **increase** in capital expenditures and a **$51.6 million** **decrease** in divestiture proceeds[200](index=200&type=chunk) | Metric (millions) | June 30, 2025 | September 30, 2024 | | :---------------- | :------------ | :----------------- | | Cash and cash equivalents | $79.1 | $140.4 | | Long-term debt | $790.7 | $802.5 | [Working Capital](index=55&type=page&id=Working%20Capital) Analyzes the components and changes in the company's working capital | Metric (millions) | June 30, 2025 | September 30, 2024 | | :---------------- | :------------ | :----------------- | | Current assets | $665.3 | $780.1 | | Current liabilities | $509.3 | $543.3 | | Net working capital | $156.0 | $236.8 | - The **decrease** in net working capital was driven by a **$61.3 million** **decrease** in cash and cash equivalents, a **$28.9 million** **decrease** in unbilled revenue, and a **$19.0 million** **decrease** in accounts receivable[203](index=203&type=chunk) [Description of Indebtedness](index=57&type=page&id=Description%20of%20Indebtedness) Outlines the company's indebtedness and compliance with debt covenants - The company was in **compliance with all debt covenants** as of June 30, 2025, with **no event of default**[205](index=205&type=chunk) [Contractual Obligations and Commercial Commitments](index=57&type=page&id=Contractual%20Obligations%20and%20Commercial%20Commitments) Summarizes the company's contractual obligations and commercial commitments - **No material changes** to contractual obligations and commercial commitments since September 30, 2024[206](index=206&type=chunk) [Critical Accounting Policies and Estimates](index=57&type=page&id=Critical%20Accounting%20Policies%20and%20Estimates) Highlights the company's critical accounting policies and estimates - **No material changes** to critical accounting policies and estimates compared to the Annual Report on Form 10-K for FY2024[207](index=207&type=chunk) [Recently Issued Accounting Policies](index=57&type=page&id=Recently%20Issued%20Accounting%20Policies) Refers to details on recently issued accounting pronouncements - Refer to Note **2** for details on recently issued accounting pronouncements[208](index=208&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material changes to its market risk during the nine months ended June 30, 2025, referring to its Annual Report on Form 10-K for detailed disclosures - **No material changes** to market risk disclosures during the nine months ended June 30, 2025[210](index=210&type=chunk) [Item 4. Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, at a reasonable assurance level, with no material changes to internal control over financial reporting during the quarter - Disclosure controls and procedures were **effective** as of June 30, 2025, at a reasonable assurance level[212](index=212&type=chunk) - **No material changes** in internal control over financial reporting occurred during the fiscal quarter[213](index=213&type=chunk) [PART II. OTHER INFORMATION](index=59&type=section&id=PART%20II.%20OTHER%20INFORMATION) Details legal proceedings, risk factors, equity transactions, and other required disclosures [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11 of the financial statements for details on legal proceedings and commitments - Refer to Note **11** for details on legal proceedings[216](index=216&type=chunk) [Item 1A. Risk Factors](index=59&type=page&id=Item%201A.%20Risk%20Factors) The company reported no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended September 30, 2024 - **No material changes** to risk factors since the Annual Report on Form 10-K for FY2024[217](index=217&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third fiscal quarter of 2025, the company repurchased 487,480 shares of common stock for approximately $6.88 million under its $100 million share repurchase program announced in March 2025 Issuer Purchases of Equity Securities (Q3 FY2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value Remaining (millions) | | :------------------------- | :--------------------- | :--------------------------- | :-------------------------------------------- | | April 1, 2025 - April 30, 2025 | 272,615 | $12.84 | $94.7 | | May 1, 2025 - May 31, 2025 | 127,740 | $15.66 | $92.7 | | June 1, 2025 - June 30, 2025 | 87,125 | $15.88 | $91.3 | | Total | 487,480 | $14.12 | $91.3 | - The company announced a **$100 million** share repurchase program on March 13, 2025, with no time limit[218](index=218&type=chunk) [Item 3. Defaults Upon Senior Securities](index=59&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - **No defaults** upon senior securities[219](index=219&type=chunk) [Item 4. Mine Safety Disclosures](index=59&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - **Not applicable**[220](index=220&type=chunk) [Item 5. Other Information](index=59&type=section&id=Item%205.%20Other%20Information) No other information was reported under this item - **No other information reported**[221](index=221&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or furnished as part of the report, including corporate organizational documents, preferred stock designations, and certifications by the CEO and CFO - The report includes exhibits such as the Third Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, and Certificate of Designations of Series A Convertible Preferred Stock[224](index=224&type=chunk) - Certifications by the CEO and CFO under the Sarbanes-Oxley Act of **2002** are filed as exhibits[224](index=224&type=chunk) [Signatures](index=61&type=section&id=Signatures) The report was officially signed on behalf of BrightView Holdings, Inc. by Brian Jackson, Chief Accounting Officer, on August 6, 2025 - The report was signed by Brian Jackson, Chief Accounting Officer, on August 6, 2025[228](index=228&type=chunk)

The market expects BrightView Holdings (BV) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be rele ...

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]