Financial Data and Key Metrics Changes - Revenue for the quarter was $674 million, down $24 million or 3.5% year over year compared to 2024, primarily due to an $18 million decrease in rental revenue and $6 million lower direct sales [14][15] - Cost of services was $492 million, with a gross margin of 27%, down approximately 200 basis points year over year [16] - Adjusted EBITDA for the third quarter was $64 million, representing an adjusted margin of 90.5% [18] Business Line Data and Key Metrics Changes - Rental revenue saw a decline, with growth from new business contributing approximately $45 million or 6.7% year over year, while churn resulted in a revenue impact of approximately $60 million [14][15] - Direct sales revenue decreased by $6 million or 14% year over year, primarily due to the loss of a large national account in 2024 [16] Market Data and Key Metrics Changes - Business retention as measured in revenue dollars was 91.9% at the end of Q3, a slight decrease compared to the previous quarter [15] - The company observed an increase in sales from both field and national account sales organizations, which collectively installed 20% more recurring revenue year over year [14] Company Strategy and Development Direction - The company aims to focus on commercial processes, operational discipline, and a clear strategy to unlock operating leverage through value-based pricing, favorable product mix, and efficient cost of service [6][11] - There is a shift in sales approach to prioritize profitability over volume, with a focus on margin-accretive growth [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing revenue pressure as churn outpaces conversion but expressed confidence that improvement initiatives will yield positive results [12][20] - The expectation for near-term performance is to remain similar to the last quarter, with a commitment to improving in 2026 [13][20] Other Important Information - The company generated $23 million of operating cash flow and $8 million of free cash flow during the quarter, reflecting positive improvement [18] - As of the end of the third quarter, debt was $1.32 billion, with a strong liquidity position and no debt maturities until 2027 [19] Q&A Session Summary Question: Initial assessment of strengths and weaknesses - Management highlighted the importance of creating operating leverage and emphasized the need for reliable plants and strong service to customers [26][28] Question: Shift from volume growth to profitability - Management confirmed a focus on creating value for customers to drive penetration growth and improve churn [31][32] Question: Hiring behavior among customer base - Management characterized the hiring behavior as neutral, indicating a focus on managing headwinds and tailwinds effectively [36] Question: Sales environment in end markets - Management noted that the sales environment remains stable across key sectors such as hospitality, healthcare, and retail, with a positive outlook on non-programmer growth [44][46] Question: Updates on strategic advisors and potential transactions - Management clarified that the focus is on optimizing the core business rather than pursuing transactions at this stage [48][49]