Why Matrix Service (MTRX) Shares Are Trading Lower Today

Core Insights - Matrix Service reported mixed results for Q3 2025, with revenue increasing by 28% year-over-year to $211.9 million, surpassing analyst expectations, but posted an adjusted loss of $0.01 per share, missing the consensus forecast of a profit of $0.02 [1] - Adjusted EBITDA fell 45.3% short of estimates, and free cash flow turned significantly negative at -$27.91 million compared to a positive $9.97 million in the same quarter last year [1] - Despite reaffirming full-year revenue guidance, the earnings miss and disappointing profitability metrics overshadowed the strong sales growth, leading to an 8.5% decline in stock price [1] Financial Performance - Q3 2025 revenue was $211.9 million, a 28% increase year-over-year [1] - Adjusted loss per share was $0.01, missing the expected profit of $0.02 [1] - Adjusted EBITDA fell significantly short of estimates, and free cash flow was -$27.91 million compared to $9.97 million in Q3 2024 [1] Market Reaction - The stock experienced an 8.5% drop following the earnings report, indicating that the market views this news as significant but not fundamentally altering its perception of the business [3] - Over the past year, Matrix Service's shares have shown volatility with 17 moves greater than 5% [3] Historical Context - In Q2 2025, the company reported revenue of $216.4 million, missing analyst estimates of $232.2 million, and posted an adjusted loss of $0.28 per share, which was a significant miss compared to expectations of a $0.02 profit [4] - The company guided for full-year revenue between $875 million and $925 million, with the midpoint falling below analysts' forecasts [4] Stock Performance - Year-to-date, Matrix Service shares are up 10%, but currently trading at $13.24 per share, which is 16.3% below its 52-week high of $15.82 [5] - An investment of $1,000 in Matrix Service shares five years ago would now be worth $1,613 [5]