Core Values and Leadership - UniFirst Corporation celebrated its 24th annual Founder's Day with a focus on its founding Core Values: Customer Focus, Commitment to Quality, and Respect for Others, which are central to its people-first strategy [1][3] - The event featured a leadership panel discussion moderated by Catalina Dongo, Senior Vice President of Human Resources, with top executives discussing the importance of these Core Values in the company's success and growth [3] Recognition and Awards - The inaugural Cynthia Croatti Leadership Award was introduced to honor leaders who exemplify vision, passion, and purpose, with Cynthia Croatti being the first recipient for her significant contributions over the past 40 years [4][5] - Founder's Day also included the annual Employee of the Year (EOY) recognition, celebrating outstanding Team Partners who demonstrate commitment to the company's values, with recipients receiving plaques, gifts, and a bonus paid day off [5][6] Educational Support - UniFirst announced the recipients of its higher-education scholarships, including the Aldo Croatti Scholarship for children of Team Partners and the Ronald D. Croatti Scholarship for full-time Team Partners pursuing further education, reflecting the company's commitment to investing in its workforce [6] Company Overview - UniFirst Corporation, headquartered in Wilmington, Massachusetts, is a leader in providing uniform and workwear programs, facility service products, and first aid and safety services across North America, with over 270 service locations and more than 16,000 employees [8]

Core Insights - UniFirst Corporation has been recognized for 22 consecutive years on Selling Power's list of the "60 Best Companies to Sell For in 2025," highlighting its strong sales culture and commitment to customer service [1][4]. Company Overview - UniFirst is a North American leader in providing customized business uniform programs, facility service products, and first aid and safety services [1][6]. - The company serves over two million uniform wearers across North America, including more than half of the Fortune 500 companies [4]. Sales Culture - The company's sales culture is built on its Founding Core Values: Customer Focus, Commitment to Quality, and Respect for Others [3]. - UniFirst empowers its sales teams to understand customers' businesses deeply, enabling them to develop innovative strategies that address unique challenges [3][4]. Recognition and Evaluation - Selling Power evaluates companies based on their supportive and collaborative sales culture, with a focus on professionalism, trust, and empowerment [4]. - The recognition reflects UniFirst's long-term success in sales and customer engagement [4]. Recruitment and Growth - UniFirst is actively recruiting talented individuals to join its award-winning sales team, indicating ongoing growth and expansion [5].

Part I – Financial Information [Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements%20(unaudited)) The unaudited financial statements present the company's performance for the thirteen and thirty-nine weeks ended May 31, 2025, highlighting revenue and net income growth, increased total assets and shareholders' equity, and strong operating cash flow [Consolidated Statements of Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income) For the third quarter of fiscal 2025, revenues increased by 1.2% to $610.8 million, while net income grew by 4.3% to $39.7 million compared to the same period last year, with year-to-date revenues rising 1.7% to $1.82 billion and net income increasing by 6.4% to $107.2 million Financial Performance Summary | Financial Metric | Thirteen Weeks Ended May 31, 2025 | Thirteen Weeks Ended May 25, 2024 | Thirty-Nine Weeks Ended May 31, 2025 | Thirty-Nine Weeks Ended May 25, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $610.8M | $603.3M | $1,817.9M | $1,787.6M | | **Operating Income** | $48.2M | $48.5M | $134.9M | $129.5M | | **Net Income** | $39.7M | $38.1M | $107.2M | $100.8M | | **Diluted EPS (Common Stock)** | $2.13 | $2.03 | $5.76 | $5.38 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of May 31, 2025, total assets increased to $2.76 billion from $2.70 billion at August 31, 2024, driven by a rise in cash and cash equivalents, while total liabilities remained stable and shareholders' equity grew to $2.17 billion Consolidated Balance Sheet Highlights | Balance Sheet Item | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $937.9M | $915.7M | | **Total Assets** | $2,760.0M | $2,696.4M | | **Total Current Liabilities** | $266.9M | $281.4M | | **Total Liabilities** | $585.2M | $587.9M | | **Total Shareholders' Equity** | $2,174.8M | $2,108.5M | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the thirty-nine weeks ended May 31, 2025, the company generated $196.5 million in cash from operating activities, with cash used in investing activities primarily for capital expenditures and financing activities mainly for share repurchases and dividends, resulting in a net cash increase of $50.3 million Consolidated Cash Flow Summary | Cash Flow Activity (Thirty-Nine Weeks Ended) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $196.5M | $193.0M | | **Net cash used in investing activities** | ($98.5M) | ($124.3M) | | **Net cash used in financing activities** | ($48.3M) | ($36.1M) | | **Net increase in cash and cash equivalents** | $50.3M | $32.8M | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail revenue disaggregation, commitments, debt facilities, and segment performance, highlighting Core Laundry Operations as the largest revenue source, a significant but not probable tax assessment in Mexico, and the company's credit facility and share repurchase program - Core Laundry Operations constituted **87.8% of total revenues** for the thirty-nine weeks ended May 31, 2025, followed by Specialty Garments (**7.6%**) and First Aid (**4.6%**)[35](index=35&type=chunk) - The company is challenging a tax assessment from Mexican authorities totaling over **$84.7 million**, though management believes a loss is neither probable nor remote[93](index=93&type=chunk) - As of May 31, 2025, the company had **no outstanding borrowings** under its credit facility and **$168.3 million available** for borrowing[103](index=103&type=chunk) - A new share repurchase program of up to **$100.0 million** was authorized on April 8, 2025, with **$86.4 million remained available** for repurchases as of May 31, 2025[116](index=116&type=chunk)[117](index=117&type=chunk) [Management's Discussion and Analysis (MD&A)](index=24&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 1.2% quarterly revenue growth primarily to organic growth in Core Laundry Operations, noting a slight decrease in operating margin due to higher healthcare claims and advisory costs, while liquidity remains strong, funding capital expenditures, share repurchases, and dividends [Results of Operations](index=26&type=section&id=Results%20of%20Operations) For Q3 2025, consolidated revenue grew 1.2% to $610.8 million, driven by increases in Core Laundry Operations and First Aid, with operating income nearly flat, while the 39-week period saw revenue growth of 1.7% to $1.82 billion and operating income increase of 4.2% to $134.9 million Quarterly Revenue by Segment | Revenue by Segment (Q3) | May 31, 2025 | May 25, 2024 | % Change | | :--- | :--- | :--- | :--- | | Core Laundry Operations | $533.2M | $528.5M | 0.9% | | Specialty Garments | $47.8M | $47.6M | 0.5% | | First Aid | $29.8M | $27.3M | 9.1% | | **Total** | **$610.8M** | **$603.3M** | **1.2%** | - Cost of revenues as a percentage of revenue decreased from **64.8% to 63.1%** in Q3 2025, primarily due to lower merchandise and production payroll costs[144](index=144&type=chunk) - Selling and administrative expenses increased by **10.5%** in Q3 2025, driven by higher healthcare claims and approximately **$5.7 million** in advisory and legal costs for strategic and employee matters[145](index=145&type=chunk) Year-to-Date Operating Income by Segment | Operating Income by Segment (YTD) | May 31, 2025 | May 25, 2024 | % Change | | :--- | :--- | :--- | :--- | | Core Laundry Operations | $104.0M | $98.1M | 6.1% | | Specialty Garments | $30.5M | $33.4M | (8.6)% | | First Aid | $0.4M | ($1.9M) | 119.7% | | **Total** | **$134.9M** | **$129.5M** | **4.2%** | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity remains strong, with cash and equivalents increasing by $50.3 million to $211.9 million during the first thirty-nine weeks of fiscal 2025, driven by $196.5 million in operating cash flow, while major uses of cash included capital expenditures, share repurchases, and dividends Cash Flow Summary (Thirty-Nine Weeks Ended) | Cash Flow Summary (Thirty-Nine Weeks Ended) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $196.5M | $193.0M | | Net cash used in investing activities | ($98.5M) | ($124.3M) | | Net cash used in financing activities | ($48.3M) | ($36.1M) | - The increase in operating cash flow was primarily due to improved profitability and positive working capital changes, including better management of inventories and receivables[166](index=166&type=chunk)[167](index=167&type=chunk) - The increase in cash used for financing activities was driven by a **$9.6 million increase** in share repurchases compared to the prior year period[171](index=171&type=chunk) [Market Risk Disclosures](index=34&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to foreign currency exchange risk and interest rate risk, with approximately 7.1% of Q3 2025 revenues denominated in foreign currencies, and mitigates some currency risk using forward contracts while interest rate risk exists through potential borrowings under its variable-rate credit facility - Revenues denominated in foreign currencies represented approximately **7.1% of total consolidated revenues** for the thirteen weeks ended May 31, 2025[186](index=186&type=chunk) - The company has forward contracts to sell approximately **14.1 million CAD** through fiscal 2026 to manage exposure from a subsidiary's CAD-denominated sales, with **2.3 million CAD** notional value outstanding as of May 31, 2025[187](index=187&type=chunk)[188](index=188&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of May 31, 2025, solely due to previously identified material weaknesses in IT general controls, with ongoing remediation efforts including redesigning IT processes, enhancing oversight, strengthening policies, and implementing a new Identity and Access Management system - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of the end of the period, solely due to material weaknesses in IT general controls identified in the fiscal 2024 Annual Report[192](index=192&type=chunk) - Ongoing remediation actions include: - Reassessing and redesigning IT 'manage change' and 'manage access' processes - Enhanced oversight from the new Business Processes, Risk and Controls group - Implementing an Identity and Access Management (IAM) system - Oversight from the new Chief Information and Technology Officer hired in Q1 2025[196](index=196&type=chunk) Part II – Other Information [Risk Factors](index=36&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) The company highlights a risk related to U.S. and foreign trade policies, where new or increased tariffs on imported goods could materially and adversely impact the business if these costs cannot be mitigated - A key risk is that new or increased tariffs on imported goods by the U.S. and other countries could materially and adversely impact the business if the company is unable to mitigate the increased costs of raw materials or products[202](index=202&type=chunk) [Share Repurchases](index=36&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of fiscal 2025, the company repurchased 75,973 shares of its Common Stock for approximately $13.6 million, and on April 8, 2025, the Board authorized a new $100.0 million share repurchase program, with $86.4 million remaining available as of May 31, 2025 Common Stock Repurchases | Period (2025) | Total Shares Purchased | Average Price Paid per Share | Approx. Value Remaining under Program | | :--- | :--- | :--- | :--- | | Mar 2 - Mar 29 | 0 | $— | $63.7M | | Mar 30 - Apr 26 | 24,000 | $173.65 | $95.8M | | Apr 27 - May 31 | 51,973 | $182.10 | $86.4M | | **Total for Q3** | **75,973** | **N/A** | **$86.4M** | - On April 8, 2025, the Board of Directors authorized a new share repurchase program for up to **$100.0 million** of its outstanding Common Stock, inclusive of amounts remaining under the prior program[116](index=116&type=chunk)[203](index=203&type=chunk)

Group 1 - UniFirst Corporation's shares experienced a significant decline of 10.2% following the announcement of its third-quarter financial results for 2025 [1] - The company is part of a broader investment service and community focused on cash flow generation in the oil and natural gas sector [1][2] Group 2 - The investment service offers subscribers access to a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2]. Group 1 - There is no stock, option, or similar derivative position held by the analyst in any mentioned companies, nor plans to initiate such positions in the next 72 hours [1]. - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2]. - Seeking Alpha clarifies that past performance is not indicative of future results and does not provide specific investment recommendations [2].

UniFirst (UNF) came out with quarterly earnings of $2.17 per share, beating the Zacks Consensus Estimate of $2.12 per share. This compares to earnings of $2.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +2.36%. A quarter ago, it was expected that this uniform provider would post earnings of $1.31 per share when it actually produced earnings of $1.4, delivering a surprise of +6.87%.Over the last four quarters, the company ...

U.S. stocks traded mixed this morning, with the Nasdaq Composite gaining around 50 points on Wednesday.Following the market opening Wednesday, the Dow traded down 0.22% to 44,398.83 while the NASDAQ gained 0.25% to 20,252.83. The S&P 500 also fell, dropping, 0.02% to 6,196.53.Check This Out: How To Earn $500 A Month From Microsoft StockLeading and Lagging SectorsMaterials shares jumped by 0.5% on Wednesday.In trading on Wednesday, health care stocks fell by 0.6%.Top HeadlineShares of UniFirst Corporation UN ...

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 fiscal 2025 were $610.8 million, an increase of 1.2% from $603.3 million in the same quarter of fiscal 2024 [6][12] - Consolidated operating income decreased to $48.2 million from $48.5 million, a decline of 0.6% [12] - Net income increased to $39.7 million or $2.13 per diluted share, up from $38.1 million or $2.03 per diluted share [12] - Consolidated adjusted EBITDA increased to $85.8 million from $84.8 million, reflecting a 1.2% increase [12] - Effective tax rate increased to 25.7% compared to 22.9% in the prior year [12] Business Line Data and Key Metrics Changes - Core Laundry operations revenues were $533.2 million, an increase of 0.9% from the previous year [13] - Core Laundry organic growth was 1.1%, adjusting for acquisitions and currency fluctuations [14] - Specialty Garments segment revenues increased to $47.8 million, a 0.5% rise from the prior year [16] - First Aid segment revenues increased to $29.8 million, a 9% increase driven by growth in van operations [17] Market Data and Key Metrics Changes - Customer retention improved compared to Q3 fiscal 2024, but there was softness in customer wearer levels [9] - Direct sales revenues were lower compared to the same quarter last year, impacting overall growth [10][62] Company Strategy and Development Direction - The company is focused on investing in people, technology, and infrastructure to enhance growth and profitability [6][10] - The strategy includes improving operational execution, strategic pricing, procurement sourcing, and inventory management [11] - The company is implementing a new ERP system to enable better operational efficiencies [11][41] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious mood among existing customers regarding investments and employment levels, particularly in manufacturing sectors [21] - The pricing environment remains challenging, with potential impacts from tariffs and vendor cost increases [24][25] - The company maintains its annual revenue guidance between $2.422 billion and $2.432 billion, while increasing diluted earnings per share guidance to $7.60 to $8.00 [18] Other Important Information - The company incurred approximately $5.7 million in advisory and legal costs during the quarter, with some related to prior strategic discussions [15][56] - Cash, cash equivalents, and short-term investments totaled $211.9 million, with no long-term debt [17] Q&A Session Summary Question: Can you unpack organic growth further? - Management noted improvements in new business and customer retention but highlighted softness in wearer levels impacting overall growth [20][21] Question: What insights can you provide on pricing dynamics? - Management indicated a fluid situation with pricing, impacted by inflation recovery and potential tariff effects [24][25] Question: How is the environment for new sales? - Management observed incremental positive momentum in new sales compared to six months ago, but not dramatically different [30] Question: What is the status of key initiatives and cost reductions? - Key initiative costs are primarily related to the ongoing ERP implementation, with costs currently being capitalized [38][41] Question: How are labor costs trending? - Labor costs are stable, with improvements in execution and efficiency noted [52][53] Question: What is the impact of strategic advisory and legal expenses? - The costs were related to prior strategic discussions and ongoing legal matters, with an accrual built for the latter [56]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were $610.8 million, an increase of 1.2% from $603.3 million in Q3 2024 [6][12] - Consolidated operating income decreased to $48.2 million from $48.5 million, a decline of 0.6% [12] - Net income increased to $39.7 million or $2.13 per diluted share, up from $38.1 million or $2.03 per diluted share [12] - Consolidated adjusted EBITDA increased to $85.8 million from $84.8 million, reflecting a 1.2% growth [12] - Effective tax rate increased to 25.7% compared to 22.9% in the prior year [12] Business Line Data and Key Metrics Changes - Core Laundry operations revenues were $533.2 million, an increase of 0.9% from the previous year [13] - Core Laundry organic growth was 1.1%, adjusting for acquisitions and currency fluctuations [14] - Specialty Garments segment revenues increased to $47.8 million from $47.6 million, a growth of 0.5% [15] - First Aid segment revenues increased to $29.8 million from $27.3 million, reflecting a 9% growth [17] Market Data and Key Metrics Changes - Customer retention improved compared to Q3 2024, although there was some softness in customer wearer levels [8] - Direct sales revenues were lower compared to the same quarter last year, impacting overall growth [9][66] Company Strategy and Development Direction - The company is focused on enhancing customer experience and operational execution through investments in people, technology, and infrastructure [5][10] - The ongoing ERP project is expected to drive long-term benefits, with current costs being capitalized rather than expensed [41][42] - The company aims to improve strategic pricing, procurement sourcing, and inventory management [10] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious mood among existing customers regarding investments, particularly in manufacturing sectors [21] - The pricing environment remains challenging, with potential future impacts from tariffs on vendor costs [24][45] - The company maintains its annual revenue guidance between $2.422 billion and $2.432 billion, while increasing diluted earnings per share guidance to $7.6 to $8 [18] Other Important Information - The company incurred approximately $5.7 million in advisory and legal costs during the quarter, with some related to prior strategic discussions [17][58] - Cash, cash equivalents, and short-term investments totaled $211.9 million, with no long-term debt [17] Q&A Session Summary Question: Can you unpack organic growth further? - Management characterized the existing customer base as cautious, with some targeted reductions in employment levels impacting growth [21][22] Question: Can you provide insight into pricing dynamics? - Management noted a fluid situation regarding pricing, with companies recovering from high inflation and potential tariff impacts [24][25] Question: How is the new sales environment today? - Management indicated that new sales have shown incremental positive momentum compared to six months ago, but not dramatically different [31] Question: What is the status of key initiatives and cost reductions? - Key initiative costs are primarily related to the ongoing ERP implementation, which is progressing well [40][41] Question: What impact are tariffs expected to have on costs? - Management explained that tariffs could impact garment sourcing costs, but the situation remains fluid [45][47] Question: How are labor costs currently? - Labor costs are stable, with improvements in execution and efficiency noted [55] Question: Can you clarify the strategic advisory and legal expenses? - The costs were related to prior strategic discussions and an ongoing legal matter, with an increased reserve built for the latter [58]

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Q3 2025 Financial Highlights](index=1&type=section&id=Q3%202025%20Financial%20Highlights) UniFirst's Q3 2025 results showed a 1.2% revenue increase and 4.9% diluted EPS growth, supported by a property sale gain and reduced Key Initiative costs | Financial Metric | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | **Consolidated Revenues** | $610.8M | $603.3M | +1.2% | | **Operating Income** | $48.2M | $48.5M | -0.6% | | **Net Income** | $39.7M | $38.1M | +4.3% | | **Diluted EPS** | $2.13 | $2.03 | +4.9% | | **Adjusted EBITDA** | $85.8M | $84.8M | +1.2% | - Net income and diluted EPS for Q3 2025 were positively affected by a **$2.8 million** gain on the sale of a non-operating property[1](index=1&type=chunk) - Costs directly attributable to the company's CRM and ERP projects (Key Initiatives) were **$1.0 million** in Q3 2025, a significant reduction from **$3.9 million** in Q3 2024[1](index=1&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) UniFirst's Core Laundry Operations grew 0.9%, First Aid led with 9.1% revenue growth, and Specialty Garments increased 0.5%, with Key Initiative costs impacting only Core Laundry margins [Core Laundry Operations](index=1&type=section&id=Core%20Laundry%20Operations) Core Laundry Operations revenue grew 0.9% with 1.1% organic growth, while operating margin slightly declined to 6.9% due to higher costs, though Adjusted EBITDA margin remained stable at 13.5% | Metric | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | **Revenues** | $533.2M | $528.5M | | **Revenue Growth** | 0.9% | - | | **Organic Growth** | 1.1% | - | | **Operating Margin** | 6.9% | 7.0% | | **Adjusted EBITDA Margin** | 13.5% | 13.5% | - Margins were negatively impacted by approximately **$5.7 million** in advisory and legal costs during the quarter[4](index=4&type=chunk)[6](index=6&type=chunk) - Costs related to Key Initiatives reduced the segment's operating and Adjusted EBITDA margins by **0.2%** in Q3 2025, compared to a **0.7%** reduction in Q3 2024[3](index=3&type=chunk)[16](index=16&type=chunk) [Specialty Garments & First Aid](index=7&type=section&id=Specialty%20Garments%20%26%20First%20Aid) Specialty Garments revenue grew 0.5% to $47.8 million with a margin decline, while First Aid revenue surged 9.1% to $29.8 million, significantly improving its operating margin to 1.8% | Segment | Metric | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | :--- | | **Specialty Garments** | Revenue | $47.8M | $47.6M | | | Revenue Growth | 0.5% | - | | | Operating Margin | 22.8% | 23.9% | | **First Aid** | Revenue | $29.8M | $27.3M | | | Revenue Growth | 9.1% | - | | | Operating Margin | 1.8% | 0.5% | [Balance Sheet and Capital Allocation](index=2&type=section&id=Balance%20Sheet%20and%20Capital%20Allocation) As of May 31, 2025, UniFirst maintained strong liquidity with $211.9 million in cash, generated $196.5 million in operating cash flow, and repurchased $13.6 million in stock - Cash, cash equivalents, and short-term investments totaled **$211.9 million** as of May 31, 2025[11](index=11&type=chunk) - For the first nine months of fiscal 2025, cash flows from operating activities were **$196.5 million**[11](index=11&type=chunk)[19](index=19&type=chunk) - The company repurchased **$13.6 million** of its Common Stock in Q3 2025, with **$86.4 million** remaining under the current share repurchase authorization[11](index=11&type=chunk) [Fiscal 2025 Outlook](index=2&type=section&id=Financial%20Outlook) UniFirst reaffirmed its FY2025 revenue guidance while raising diluted EPS forecast, primarily due to a revised, lower estimate for Key Initiative costs | Guidance Metric | FY 2025 Range/Estimate | Previous Estimate | | :--- | :--- | :--- | | **Annual Revenue** | $2.422B - $2.432B | Maintained | | **Diluted EPS** | $7.60 - $8.00 | Raised | | **Key Initiative Costs** | ~$7.5M | Not specified (revised down) | - The fiscal year 2025 guidance reflects one less week of operations compared to fiscal year 2024[7](index=7&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) UniFirst's Q3 2025 revenue reached $610.8 million with $39.7 million net income, while nine-month revenues hit $1.82 billion, yielding $107.2 million net income Thirteen Weeks Ended (Q3) | (In thousands) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | **Revenues** | $610,778 | $603,328 | | **Operating Income** | $48,177 | $48,450 | | **Net Income** | $39,680 | $38,057 | | **Diluted EPS (Common)** | $2.13 | $2.03 | Thirty-Nine Weeks Ended (YTD) | (In thousands) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | **Revenues** | $1,817,905 | $1,787,564 | | **Operating Income** | $134,922 | $129,530 | | **Net Income** | $107,244 | $100,839 | | **Diluted EPS (Common)** | $5.76 | $5.38 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of May 31, 2025, total assets increased to $2.76 billion, total liabilities decreased to $585.2 million, and shareholders' equity grew to $2.17 billion | (In thousands) | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $937,874 | $915,676 | | **Total Assets** | $2,760,027 | $2,696,413 | | **Total Current Liabilities** | $266,949 | $281,437 | | **Total Liabilities** | $585,236 | $587,902 | | **Total Shareholders' Equity** | $2,174,791 | $2,108,511 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended May 31, 2025, operating cash flow was $196.5 million, with $98.5 million used in investing and $48.3 million in financing, resulting in a $50.3 million net cash increase Nine Months Ended | (In thousands) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $196,481 | $193,012 | | **Net cash used in investing activities** | ($98,460) | ($124,293) | | **Net cash used in financing activities** | ($48,348) | ($36,126) | | **Net increase in cash and cash equivalents** | $50,339 | $32,803 | | **Cash and cash equivalents at end of period** | $211,910 | $112,246 | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company's Q3 2025 consolidated Adjusted EBITDA was $85.8 million with a 14.1% margin, while the nine-month Adjusted EBITDA increased to $248.7 million with a 13.7% margin - The company defines Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, further adjusted for share-based compensation and other items to improve comparability[20](index=20&type=chunk) Adjusted EBITDA Reconciliation - Q3 | (In thousands) | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | **Net Income** | $39,680 | $38,057 | | **Adjustments** | $46,146 | $46,734 | | **Adjusted EBITDA** | $85,826 | $84,791 | | **Adjusted EBITDA Margin** | 14.1% | 14.1% | Adjusted EBITDA Reconciliation - YTD | (In thousands) | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | **Net Income** | $107,244 | $100,839 | | **Adjustments** | $141,460 | $137,476 | | **Adjusted EBITDA** | $248,704 | $238,315 | | **Adjusted EBITDA Margin** | 13.7% | 13.3% |