Financial Performance - Fiscal Year 2025 revenue was $27348 million, a decrease of 25% compared to $28058 million in Fiscal Year 2024[12] - Fiscal Year 2025 Adjusted EBITDA was $2574 million, down 271% from $3529 million in Fiscal Year 2024[12] - Q4 2025 revenue increased by 41% to $712 million compared to $6843 million in Q4 2024[12] - Q4 2025 Adjusted EBITDA decreased by 197% to $647 million compared to $805 million in Q4 2024[12] - Free cash flow for Fiscal Year 2025 was $58 million, a significant decrease of 964% compared to $1599 million in Fiscal Year 2024[12] - The company's net leverage ratio was 472x[6,30] Strategic Initiatives - The company is launching a multi-year strategic business transformation plan expected to generate annual cost savings of $75 million by the end of fiscal year 2026[6,37] - The transformation plan focuses on three pillars: Commercial Excellence, Operational Excellence, and Asset & Network Optimization[6,36] Fiscal Year 2026 Outlook - The company anticipates revenue of $27 billion[6] - The company anticipates Adjusted EBITDA in the range of $285 million to $315 million[6] - The company anticipates free cash flow in the range of $50 million to $60 million[6]

Financial Performance - In fiscal year 2025, the company generated revenue of approximately $2.7 billion, with operating income of $64.4 million (2.4% of revenue) and a net loss of $40.2 million (-1.5% of revenue) [27] - Revenue from the recurring rental business comprised 95% of total revenue, indicating a strong reliance on predictable income streams [27] - 91% of fiscal year 2025 revenue was generated from sales in the United States, while 9% came from Canada, highlighting the company's geographic focus [27] - Approximately 9% of consolidated revenues are generated from foreign denominated revenues [285] Customer Base and Relationships - The company serves over 300,000 customer accounts across the United States and Canada, with a diverse customer base spanning various industries including manufacturing, hospitality, and healthcare [23][34] - The company’s top 10 customers account for less than 10% of total revenue, demonstrating a diversified revenue stream [34] - The company serves over 300,000 customer accounts, maintaining long-term relationships due to quality services and on-time delivery [49] - Approximately 30% to 40% of current customers utilize the full range of services and products, indicating significant cross-selling opportunities [55] Operations and Facilities - The company operates a network of over 325 facilities, including laundry plants and distribution centers, supporting over 3,300 pick-up and delivery routes [43] - Approximately 60% of uniforms and linens are manufactured in Mexico, utilizing a total manufacturing capacity of approximately 189,000 square feet [43] - The company focuses on operational excellence by identifying key areas to reduce operating costs and expand margins, including workforce management and merchandise inventory management [57][59] - The company aims to enhance route density through targeted sales strategies and analytical tools, which will lower overall costs per route [62] Sustainability and ESG Efforts - The company emphasizes sustainability by minimizing fuel usage and energy consumption in its operations, as well as repairing and reusing garments to support the circular economy [44] - The company is committed to environmental, social, and governance (ESG) efforts, including compliance with safe manufacturing practices and efficient use of resources [76] Competitive Landscape - The competitive landscape is characterized by local, fragmented competition, with primary competitors including Cintas Corporation and UniFirst Corporation [31][32] - The company is the second largest provider in its industry in the U.S. and Canada, leveraging its size for competitive advantages in purchasing power and operational efficiencies [48] Business Transformation and Strategy - The company initiated a multi-year business transformation and restructuring plan in Q1 of fiscal 2026 to improve profitability and cash flow generation [51] - The company emphasizes customer retention and modernization of the customer experience through investments in technology and service processes [54] Workforce - The workforce consists of approximately 18,150 teammates, with about 10,750 represented by labor unions, highlighting the importance of maintaining productive relationships [64] Financial Instruments and Risks - Each 1% increase in interest rates on the Term Loan Facilities would increase annual interest expense by approximately $11.4 million [287] - As of October 3, 2025, $1,143 million aggregate principal amount was outstanding under the Term Loan Facilities [287] - The company currently does not enter into financial instruments to manage foreign currency translation risk [285] - As of October 3, 2025, the company had no outstanding derivative arrangements for commodity price risk [288] Operational Enhancements - The company has made enhancements to its wash chemistry, resulting in utility resource reductions, including shorter washing machine run times and reduced water temperatures [76]

Core Insights - Vestis (VSTS) reported quarterly earnings of $0.03 per share, matching the Zacks Consensus Estimate, but down from $0.11 per share a year ago [1] - The company posted revenues of $712.01 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 1.22% and up from $684.28 million year-over-year [2] - Vestis shares have declined approximately 57.5% year-to-date, contrasting with the S&P 500's gain of 16.5% [3] Earnings Outlook - The future performance of Vestis stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $681.66 million, and for the current fiscal year, it is $0.16 on revenues of $2.72 billion [7] Industry Context - The Uniform and Related industry, to which Vestis belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating potential challenges ahead [8]

Vestis Corp. (NYSE:VSTS) shares fell after the company released a mixed fourth-quarter earnings report after Monday's closing bell. The company also announced a “strategic business transformation” plan. Here's a look at the details in the report. VSTS stock is moving. Watch the price action here.The Details: Vestis reported earnings of three cents per share, which missed the analyst estimate of six cents.Quarterly revenue came in at $712.01 million, which beat the consensus estimate of $678.3 million.Read N ...

Financial Performance - Fourth quarter 2025 revenue totaled $712 million, an increase of $27.7 million or 4.1% year over year, primarily due to an additional week of operations[9] - Operating income for the fourth quarter was $17.6 million, down from $29.8 million in the same quarter of 2024, a decrease of $12.2 million[10] - The company reported a net loss of $13 million, or $(0.10) per diluted share, while adjusted net income was $4 million, or $0.03 per diluted share[7] - Revenue for the three months ended October 3, 2025, was $712,011 thousand, an increase from $684,281 thousand for the same period in 2024, representing a growth of approximately 3.3%[31] - Operating income decreased to $17,641 thousand for the three months ended October 3, 2025, compared to $29,776 thousand for the same period in 2024, a decline of about 40.7%[31] - Net loss for the three months ended October 3, 2025, was $12,549 thousand, compared to a net loss of $2,298 thousand for the same period in 2024, indicating a significant increase in losses[31] - Adjusted EBITDA for the fiscal year ended October 3, 2025, was $257,425 thousand, down from $352,900 thousand in the previous year, representing a decrease of approximately 27%[37] - Free Cash Flow for the three months ended October 3, 2025, was $15,569 thousand, significantly lower than $267,470 thousand for the same period in 2024[40] - Adjusted Net Income for the fiscal year ended October 3, 2025, was $32,484 thousand, down from $82,266 thousand in the previous year[39] Cash Flow and Liquidity - Cash flows provided by operating activities for the fourth quarter were $31 million, with free cash flow of $16 million[7] - Total cash and excess availability under the revolving credit facility was $298 million as of October 3, 2025, down from $326 million a year earlier[15] - Cash and cash equivalents at the end of the period were $29,748 thousand, a decrease from $31,010 thousand at the end of the previous fiscal year[35] - The company reported a net cash provided by operating activities of $30,927 thousand for the three months ended October 3, 2025, compared to $295,588 thousand for the same period in 2024, a decrease of approximately 89.6%[35] - Free cash flow for fiscal 2026 is anticipated to be in the range of $50 million to $60 million[16] Strategic Initiatives - The strategic business transformation plan aims to generate annual operating cost savings of at least $75 million by the end of fiscal 2026[5] - The strategic plan focuses on three pillars: Commercial Excellence, Operational Excellence, and Asset & Network Optimization[6] Debt and Liabilities - Total current assets as of October 3, 2025, were $850,031 thousand, up from $813,269 thousand as of September 27, 2024, reflecting an increase of approximately 4.5%[33] - Total liabilities increased to $2,041,256 thousand as of October 3, 2025, compared to $2,029,336 thousand as of September 27, 2024, showing a rise of about 0.6%[33] - Total principal debt outstanding as of October 3, 2025, was $1,168,500 thousand, slightly up from $1,162,500 thousand as of September 27, 2024[40] - The Net Leverage Ratio as of October 3, 2025, increased to 4.72 from 3.64 in the previous year, indicating a higher level of debt relative to EBITDA[40] Expenses and Charges - Interest expense for the three months ended October 3, 2025, was $24,343 thousand, down from $29,848 thousand for the same period in 2024, a reduction of about 18.5%[31] - The company incurred $6,309 thousand in severance and other related charges for the three months ended October 3, 2025, compared to $3,741 thousand in the same period of 2024[39] - Share-based compensation expenses for the fiscal year ended October 3, 2025, totaled $11,565 thousand, down from $16,336 thousand in the previous year[39] Forward-Looking Statements - Fiscal 2026 revenue is expected to be flat to down 2% compared to normalized fiscal 2025 revenue, with adjusted EBITDA projected between $285 million and $315 million[16] - The company expects to provide forward-looking non-GAAP financial information, including expected Adjusted EBITDA and Free Cash Flow for 2026, but cannot provide a quantitative reconciliation to GAAP measures without unreasonable efforts[28]

Core Insights - Vestis Corporation reported its fiscal fourth quarter and full-year results, highlighting an additional week of operations compared to the previous year [1] Financial Performance - Fourth Quarter 2025 Revenue reached $712 million [1] - Operating Income for the fourth quarter was $18 million [1] - The company experienced a Net Loss of $13 million, equating to $(0.10) per diluted share [1] - Adjusted Net Income stood at $4 million, or $0.03 per diluted share [1]

Earnings Expectations - MongoDB Inc. (NASDAQ:MDB) is expected to report quarterly earnings of 80 cents per share on revenue of $591.52 million [2] - Vestis Corp. (NYSE:VSTS) is projected to post quarterly earnings of 6 cents per share on revenue of $678.30 million [2] - Hafnia Ltd. (NYSE:HAFN) is anticipated to report quarterly earnings of 18 cents per share on revenue of $252.60 million [2] - Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is expected to report quarterly earnings of 49 cents per share on revenue of $234.92 million [2] Stock Performance - MongoDB shares rose 1.9% to close at $332.37 on Friday [2] - Vestis shares increased by 0.6% to close at $6.48 on Friday [2] - Globus Maritime Ltd. (NASDAQ:GLBS) posted earnings of 4 cents per share, beating market estimates, and shares gained 2.3% to close at $1.37 [2] - Hafnia shares rose 0.5% to close at $5.99 on Friday [2] - Credo Technology shares jumped 8.3% to close at $177.60 on Friday [2]

Vestis Corporation (NYSE:VSTS) will release earnings results for the fourth quarter, after the closing bell on Monday, Dec. 1.Analysts expect the Roswell, Georgia-based company to report quarterly earnings of 6 cents per share on revenue of $678.30 million.On Aug. 5, Vestis posted better-than-expected results for the third quarter.Shares of Vestis gained 1.6% to close at $6.44 on Wednesday.Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock tic ...

Core Viewpoint - Vestis (NYSE: VSTS) is set to release its fiscal fourth quarter and full year 2025 results on December 1, 2025, after market close, indicating a significant upcoming financial disclosure [1] Financial Results Announcement - The company will hold a conference call on December 2, 2025, at 8:30 a.m. ET to discuss the financial results and engage in a question-and-answer session [1] - A webcast of the conference call along with presentation materials will be available, enhancing accessibility for stakeholders [1]

Core Viewpoint - Shamis & Gentile, P.A. is investigating potential breaches of fiduciary duties by directors and officers of Vestis Corporation following significant stock price declines and allegations of misleading investors [1][4]. Group 1: Company Background - Vestis Corporation was spun off from Aramark's Uniform Services business on October 2, 2023, and began trading on the New York Stock Exchange [3]. - The company reported second-quarter results on May 2, 2024, that fell below market expectations, leading to a withdrawal of its full-year guidance and a weaker outlook [3]. Group 2: Stock Performance - Following the disappointing financial disclosures, Vestis' stock price declined by approximately 45% [3]. Group 3: Legal Actions - A securities class action was filed against Vestis, alleging that the company misled investors regarding its operational readiness and overstated growth prospects [4]. - The lawsuit claims that Vestis failed to disclose issues such as inherited underinvestment, internal-control weaknesses, and service challenges that negatively impacted performance [4]. Group 4: Investigation Details - Shamis & Gentile, P.A. is assessing whether Vestis' board of directors and officers maintained adequate oversight and internal controls related to the alleged misconduct [5]. - Potential governance failures may have exposed the company to significant harm, and long-term shareholders may seek corporate governance reforms and financial restitution [5].