Core Insights - WillScot's Q3 2025 financial results were mixed, with strong cash flow but revenue falling short of market expectations [1][2] - The company reported a non-GAAP profit of $0.30 per share, exceeding analysts' consensus estimates by 3.9% [2] - Revenue guidance for Q4 2025 is $545 million, which is 6.6% below analysts' estimates [2] Financial Performance - Free Cash Flow increased to $122.2 million from -$3.81 million year-on-year [1] - Operating Margin improved to 21%, up from -5.9% in the same quarter last year [1] - EBITDA guidance for the full year is $970 million, below analyst estimates of $995.3 million [1] Revenue Analysis - Q3 2025 revenue was $566.8 million, a 5.8% decline year-on-year [2][7] - Leasing revenue, which constitutes 76.6% of total revenue, remained flat over the last two years, while Delivery and Installation revenue saw an average decline of 5.8% year-on-year [6][7] - Analysts expect a 1.3% revenue growth over the next 12 months, indicating potential for improved performance from newer products and services [8] Profitability Metrics - WillScot's operating margin has shown significant improvement, rising by 5.2 percentage points over the last five years [10] - The company achieved an operating margin of 21% this quarter, up 26.8 percentage points year-on-year, attributed to cost control measures [11] - EPS grew at a compounded annual growth rate of 17.4% over the last five years, indicating improved profitability on a per-share basis [12][13] Market Reaction - Following the earnings report, WillScot's stock price fell by 6.6% to $18.29, reflecting market disappointment with revenue guidance [16]