Financial Performance - BrightView generated net service revenues of $2,672.8 million for the year ended September 30, 2025, with a net income of $56.0 million and an Adjusted EBITDA of $352.3 million, resulting in a net income margin of 2.1% and an Adjusted EBITDA margin of 13.2%[27]. - BrightView's Maintenance Services segment generated net service revenues of $1,891.3 million, including $210.8 million from snow removal services, with a Segment Adjusted EBITDA of $245.5 million and a Segment Adjusted EBITDA Margin of 13.0% for the year ended September 30, 2025[38]. - In the Development Services segment, BrightView achieved net service revenues of $789.1 million and a Segment Adjusted EBITDA of $106.8 million, with a Segment Adjusted EBITDA Margin of 13.5% for the same fiscal year[43]. - As of September 30, 2025, the net carrying value of goodwill and other intangible assets was $2,082.2 million, representing 61% of total assets[124]. - The fair value of the Maintenance reporting unit exceeded the carrying value by 15.4%, indicating potential risk for future impairment[124]. - For the year ended September 30, 2025, the company's interest expense was $53.7 million, compared to $62.4 million for the year ended September 30, 2024[149]. - As of September 30, 2025, the company had total indebtedness of $790.2 million, with availability under the Revolving Credit Facility and the Receivables Financing Agreement of $300.0 million and $143.8 million, respectively[146]. Market Position and Opportunities - The company operates in a $124 billion commercial landscape maintenance and snow removal market, with a projected growth rate of 2.9% CAGR from 2021 through 2028[26][48]. - BrightView holds only a 1.5% market share in the combined landscape maintenance and snow removal market, indicating significant opportunities for future consolidation[52]. - The company serves approximately 7,400 office parks and corporate campuses, 6,100 residential communities, and 500 educational institutions, with its top ten customers accounting for about 17% of fiscal 2025 revenues[26]. Operational Efficiency and Workforce - BrightView's business model is characterized by stable, recurring revenues and low working capital requirements, generating significant Adjusted Free Cash Flow[27]. - The company has a fleet of approximately 15,000 trucks and trailers, believed to be the largest in the commercial landscape maintenance industry[85]. - The company employed approximately 1,500 seasonal workers through the H-2B visa program in 2025, compared to 2,000 in 2024[60]. - The landscape services industry is labor-intensive, and the company experiences high turnover rates, which could impact service delivery and operational efficiency[116]. - The company launched a program in fiscal 2025 providing paid time off for all frontline workers[63]. Strategic Initiatives - The company launched the One BrightView initiative in November 2023 to enhance customer-centric operations and streamline its organizational structure for sustained profitable growth[46]. - The company has invested in technology to enhance operational efficiencies, including a proprietary application for service requests and a mobile quality site assessment application[77][80]. - The company has a decentralized sales approach with over 275 business developers focused on local customer acquisition[83]. Regulatory and Compliance Risks - The company is subject to various federal, state, and local regulations, which can increase operating costs and impact service delivery[72][73]. - The company is subject to audits by U.S. Immigration and Customs Enforcement (ICE) for compliance with work authentication requirements, which could result in fines or penalties if non-compliance is found[120]. - The company may face significant compliance costs and potential fines due to new and emerging data privacy laws[143]. - The company faces potential liabilities and costs related to environmental, health, and safety regulations, which could adversely impact its financial position and reputation[127]. Financial Risks and Challenges - The company’s financial performance may be adversely affected by increased labor costs due to competition for talent and regulatory changes[117]. - The company may incur significant additional indebtedness in the future, which could exacerbate existing financial risks[159]. - The company's ability to generate sufficient cash flow to satisfy debt service obligations is critical, and failure to do so could adversely affect its financial condition[155]. - The company may need to refinance its indebtedness on less favorable terms if it cannot generate sufficient cash flow, which could further restrict its operations[158]. Customer and Market Dynamics - The company competes primarily on high service levels and strong customer relationships, rather than price, which may lead to customer attrition if competitors offer lower-cost services[93]. - A significant portion of the company's contracts are subject to competitive bidding, and inaccurate cost estimates may lead to lower profits or contract losses[110]. - The company’s revenues from snow removal services are highly dependent on snowfall levels, with regions serviced averaging 1,866 inches of snowfall in 2024, down from 1,968 inches in 2022[113]. - Seasonal demand fluctuations significantly impact the company’s revenues, with higher activity levels typically in spring and summer[104]. Corporate Governance and Shareholder Matters - As of September 30, 2025, Affiliated Investors hold approximately 21,533,123 shares of common stock and 500,000 shares of Series A Preferred Stock, representing about 50.8% of the outstanding shares[161]. - The Series A Preferred Stock has a dividend rate of 7.0% per annum, compounding quarterly, which may adversely affect the financial position of the company[172]. - The company did not declare or pay dividends to common stockholders in the fiscal year ended September 30, 2025[215]. - The stock price has been subject to volatility, influenced by market conditions and analysts' expectations[186]. Cybersecurity and Risk Management - The company has established a cyber crisis and data breach response plan to manage cybersecurity risks, including audits and threat assessments[198]. - The Audit Committee oversees cybersecurity risk management and receives updates from the cyber risk management team[202]. - The company has implemented a cybersecurity training program for all employees with access to its networks[205].

Core Insights - BrightView Holdings, Inc. reported a year-over-year increase in fourth quarter net income by 8.2% to $27.7 million, with a net income margin expansion of 40 basis points [1] - The company achieved a record fourth quarter Adjusted EBITDA of $113.5 million, reflecting a 7.9% year-over-year increase [1]

Core Viewpoint - Wall Street analysts anticipate BrightView Holdings (BV) will report quarterly earnings of $0.32 per share, reflecting a year-over-year increase of 6.7%, while revenues are expected to decline by 1% to $721.69 million [1] Earnings Projections - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [2] Analyst Forecasts - Analysts project 'Revenue- Maintenance Services' to reach $491.25 million, indicating a 1% increase from the previous year [4] - 'Revenue- Development Services' is expected to be $232.41 million, reflecting a decrease of 4.8% year-over-year [4] - 'Revenue- Maintenance Services- Landscape Maintenance Services' is forecasted at $491.91 million, suggesting a 1% year-over-year change [4] Adjusted EBITDA Estimates - The consensus estimate for 'Adjusted EBITDA- Development Services' is $34.62 million, down from $41.20 million reported in the same quarter last year [5] - 'Adjusted EBITDA- Maintenance Services' is expected to be $78.21 million, compared to $81.80 million reported in the same quarter last year [5] Stock Performance - Over the past month, BrightView shares have decreased by 7.7%, contrasting with a 1.4% increase in the Zacks S&P 500 composite [5] - BrightView currently holds a Zacks Rank 3 (Hold), indicating its performance may align with the overall market in the near future [5]

Core Message - BrightView is promoting breast cancer awareness by uniting its 19,000 team members nationwide to wear specially designed pink hats throughout October, emphasizing the importance of breast health awareness [2][3][4]. Company Initiative - The initiative is in its second year and aims to deepen BrightView's commitment to spreading awareness, encouraging conversations, and supporting the fight against breast cancer [3][4]. - BrightView will also make a charitable donation to Susan G. Komen, reinforcing its ongoing support for breast cancer research, education, and advocacy [4]. Community Engagement - The effort reflects BrightView's broader commitment to community and care, including safety initiatives, wellness programs, and local volunteer efforts [5]. - By wearing the pink hats, BrightView employees serve as a visible reminder of the importance of awareness and action in the fight against breast cancer [3][4]. Company Overview - BrightView is the nation's leading commercial landscaping company, providing services across various sectors, including business parks, healthcare facilities, and sports venues [6]. - The company emphasizes sustainable solutions and best practices while engaging with clients and communities [6].

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]

Core Viewpoint - BrightView Holdings reported quarterly earnings of $0.3 per share, missing the Zacks Consensus Estimate of $0.33 per share, representing an earnings surprise of -9.09% [1] - The company posted revenues of $708.3 million for the quarter, missing the Zacks Consensus Estimate by 2.1% and down from $738.8 million a year ago [2] Financial Performance - Over the last four quarters, BrightView has surpassed consensus EPS estimates only once [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $717.4 million, and for the current fiscal year, it is $0.84 on revenues of $2.7 billion [7] Stock Performance - BrightView shares have increased by approximately 0.8% since the beginning of the year, compared to the S&P 500's gain of 7.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Outlook - The Business - Services industry, to which BrightView belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact BrightView's stock performance [5]

[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)

Core Viewpoint - The market anticipates BrightView Holdings (BV) to report a year-over-year increase in earnings despite lower revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for BrightView is $0.33 per share, reflecting a year-over-year increase of +3.1%, while revenues are projected to be $723.5 million, a decrease of 2.1% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 5.22% higher, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for BrightView is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.75%, suggesting a bearish outlook from analysts [12]. Historical Performance - In the last reported quarter, BrightView exceeded the expected earnings of $0.12 per share by delivering $0.14, resulting in a surprise of +16.67%. Over the past four quarters, the company has beaten consensus EPS estimates two times [13][14]. Investment Considerations - Despite the potential for an earnings beat, BrightView does not appear to be a compelling candidate for such an outcome, and investors should consider other factors before making investment decisions [17].